C150304 feas study - Laserfiche WebLink

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Current annual payments associated with LLRC's existing CWCB loan with CWCB under Contract No. C 150253 and C 150264 are $92,149 and $30,983, respectively, or $123,132 combined. Combining the currently requested Phase III loan with the LLRC's two existing CWCB loans results in a cumulative annual payment of $309,528, excluding reserve payments. The LLRC has historically operated without debt, or assessment income. Revenue generated from oil and gas royalties have greatly exceeded operating expenses for many years. LLRC proposes to utilize the LLRC oil and gas royalties to repay the CWCB loan. Currently, LLRC draws royalty income from approximately 70 oil and gas wells. Appendix E includes copies of the financial statements and budgets for the LLRC for the past three years, verifying the income needed to repay the subject CWCB loan and balances remaining on the above described bridge loans. 13.0 COLATERAL The LLRC can offer the following collateral for the requested CWCB loan. 1. The project water rights; 5.0 shares of LLDC. 2. The project recharge facilities including ancillary delivery and measurement stiuctures and devices. The revenue from assessments as allowed by the Augmentation Agreement and Covenant, Company By-Law, and Articles of Incorporation. 14.Q ECONOMIC ANALYSIS The selected alternative is technically and financially feasible. The economic benefit of the project is considerable because the continued operation of the irrigation wells will significantly increase the value of the properties within the Lower Latham service area. 15.0 SOCIAL AND PHYSICAL IMPACTS The project will have no significant social impacts, since it will assure the continued operation of 84 irrigation wells within the service area, resulting in the continuation of historical agricultural operations. The project will have minor physical impacts as approximately 240 acres of historically -20-