C150298 Approval Letter - Laserfiche WebLink

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Fort Morgan Reservoir and Irrigation Company September 9, 2009 (UPDATED September 16, 2009) Page 2 of 6 Agenda [tem 7a Staff also recommends that the following documents be submitted to the CWCB prior to disbursement of funds: 1) an executed copy of the operating agreement between Ft. Morgan Reservoir and Irrigation Company and Groves Farms; 2) documentation that all necessary easements from neighboring landowners along the pipeline route have been obtained. Background The Company, located in Morgan County, runs an irrigation ditch system that serves surface water to approximately 15,000 acres of irrigated land, and operates a recharge and augmentation plan that provides augmentation water for approximately 90 wells for agricultural irrigation. Both irrigation and augmentation water are diverted from the South Platte River. Water deliveries are made through the Fort Morgan Canal to recharge sites and irrigation of lands lying south of the South Platte River between Weldona and Brush, Colorado. In addition, the Company is finalizing an operational agreement for its recharge and augmentation project with Groves Fanns, LLC, which is a family farming corporation also located in Morgan County. Groves Farms owns 9 wells and irrigates approximately 1,000 acres of land. Since 2003, Groves Fanns has been developing its own augmentation plan to cover these wells and keep them pumping. The Company, with Groves Farms' cooperation, has designed this Project to both re-divert and re-time augmentation credits from the Company's more senior recharge projects at certain times when they are not needed for direct augmentation use, and to divert water under junior water rights when available for recharge and augmentation use. This Project will directly help sustain approximately 16,000 acres of irrigated agriculture in Morgan County, an area that has been hit hard by augmentation shortages. It will provide wildlife habitat benefits through water access at the recharge ponds while they contain water. The ponds will be located between Riverside Reservoir, Empire Reservoir, and Jackson Lake, which is a well-known area of importance for waterfowl and related wildlife. Loan Feasibility Study The Loan Feasibility Study, "Feasibility Report for Pipeline Project" dated July 2009, was prepared by Cindy Vassios, Office Manager of the Company with technical assistance from Leroy Tobler, P.E. with the Civil Design Group and Tom Dea, P.E., TZA Water Engineers, Inc. The study was prepared in accordance with the CWCB guidelines and includes an alternative analysis, engineering design and cost estimates. Fort Morgan Reservoir and Irrigation Company The Company is a mutual non-profit ditch company organized in 1882 and registered in the State of Colorado. There are approximately 128 shareholders and 2,844 shares. In addition to many farmers, shareholders include the City of Fort Morgan, the City of Brush, Western Sugar Cooperative and Public Service Company (XCEL Energy).