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1.0 INTRODUCTION <br />The Lower Latham Reservoir Company (LLRC) operates jointly with the Lower Latham Ditch <br />Company (LLDC) to service approximately 11,000 acres of irrigated lands within Weld County. A <br />number of irrigation wells are utilized within the irrigation service area to provide supplemental <br />irrigation water supplies to farms owned by stockholders of LLRC and LLDC. Prior to 2003, the <br />irrigation wells were generally enrolled with the Groundwater Appropriators of the South Platte <br />(GASP) or the Groundwater Management Sub-District of Central Colorado Water Conservancy <br />District (GMSCCWCD). In 2003, LLRC elected to pursue an independent plan for augmentation <br />that includes a majority of the wells within the LLRC and LLDC service area and filed an application <br />in Case No. 2003CW047 in District Court, Water Division 1 for a change of water rights and <br />approval of plan for augmentation to ensure a means of continued legal operation of the wells. The <br />wells have operated under annual State Engineer approved substitute water supply plans (SWSPs) <br />prepared by LLRC since 2003. During this period, the LLRC has diligently pursued additional water <br />rights acquisitions to support the plan for augmentation. <br />During 2007, the LLRC pursued Colorado Water Conservation Board (CWCB) financing for the <br />acquisition of 6.0 shares of LLDC and the implementation of ineasurement structures and <br />instrumentation to measure and record flow at various locations on the system. This first phase of <br />this project is referred to as the "Lower Latham Reservoir Company Well Augmentation Project, <br />Phase I". The CWCB approved the requested financing during their July 12, 2007 meeting (Contract <br />No. C 150253). Following this first phase, in January 2008, LLRC purchased an additiona12.0 shares <br />of LLDC for purposes of supplementing the replacement water supplies in the Lower Latham plan <br />for augmentation and pursued CWCB financing for the purchase. This project is referred to as the <br />"Lower Latham Reservoir Company Well Augmentation Project, Phase II". On March 19, the <br />CWCB approved the loan request for this phase of the project. <br />LLRC has recently entered into a contract to purchase an additiona15.0 shares of LLDC along with <br />the associated property historically irrigated by the shares. This proposed project is referred to as the <br />"Lower Latham Reservoir Company Well Augmentation Project, Phase III", and includes the <br />purchase of an additiona15.0 shares of LLDC plus the construction of groundwater recharge facilities <br />to facilitate to the proposed augmentation uses of the subject 5.0 shares and the shares acquired in <br />Phases I and II of the project. <br />-1- <br />