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Energy can be either North Sterling storage water or water generated by recharge activities. To facilitate the agreement the Point of Rocks Water Company, LLC (PORWC) was created. Membership in the PORWC was completely volurrtary and only landowners wit{ing to use a portion of their water for Xcel's benefit joined the water company. The lease agreement allows Xcel to request up to 3,000 acre feet of fully consumable water annually during the months November through March. Landowners representing eighty four percent or 34,403.16 of the District's 40,916.94 acres joined the PORWC. The PORWC receives a base payment in November of each year whether or not Xcel requests water, however, if Xcel does request water, the PORWC additionally receives a delivery payment. The 2008 base payment was $166,030, which is based on 3,000 acre feet at $~5.34/acre foot. If water had been delivered to Xcel Energy in November 2008 through March of 2009 the PORWC would have received a de{ivery payment equal to the amount of water requested times $470.42/acre foot. The base payment and delivery payment both increase annually with the consumer price index. The NSID receives one third of the base payment from PORWC and the remainder is distributed to the members of the PORWC. The lease between the PORWC and Xcel Energy is for 25 years and is presented in Appendix B. Hydrotogy and Water Righ~s The North Sterling Reservoir is an off stream reservoir, which diverts water from the South Platte River, approximately 8 miles upstream of the Morgan/Washington County line. The North Sterling receives water under Priority 53A for storage of 69,446 acre feet of water at a rate of 300 cfs with an appropriation date of June 15, 1908, Priority 79A for storage of an additional 11,954 acre feet of water at a rate of 711 cfs with an appropriation date of August 1, 1915, and a May 27, 1914 direct flow right with a diversion rate of 460 cfs measured at the outlet canal. The North Sterling also has two recharge rights the first is May 8, 1996 recharge right with an absolute diversion rate of 294 cfs and a conditional rate of 306 cfis, the second is December 31, 2002 with a conditional diversion rate of 600 cfs. A summary of NSID's water rights atong with spec~cations of the reservoir is presented in Appendix C. Project Description and Alternatives The purpose of this project is to enlarge the currerrt spillway to provide urtrestricted overffow to pass flows resulting from 75% of the Probable Maximum Precipitation (PMP). The spi!lway project has been ongoing since 1982 with the construction of a 530 foot spillway that was designed to pass approximately 50% of the flows resulting from the PMP. The project was revived approximately 10 years ago when the North Sterling received a letter from the State Engineer with the requirement that the spillway must pass 75% of the flows from the PMP. The hydrologica! study was updated by W.W. Wheeler and Associates, lnc. and has be.~n approved by the State Engineer OfFce (SEO). During the spillway investigation, it was determined that the crest of the dam needed to be leveled and a seepage area on the downstream side of the dam required the installation of a drain. It is the desire of the management and board of NS1D to correct all the dam issues during the spillway enlargement. During the investigation to address the dam issues, the Board and management considered four a~ernatives prior to reaching the current spillway design. The four altematives considered are: 1. The naaction alternative. 2. Enlargement of the current spillway only North Sterling Irrigation District Page 8 of 13 Dam Crest and Spillway Improvement Feasibility Study March 1, 2009