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2.0 PROJECT SPONSOR <br />The sponsor for this augmentation project is LLRC. The LLRC is a mutual irrigation company and a <br />non-profit corporation registered in the State of Colorado. There are currently 47 shareholders that <br />collectively own 156 shares of stock in the LLRC. The LLRC has the power to set annual <br />assessments to be paid by the shareholders; the power to curtail water deliveries to shareholders that <br />fail to pay their assessments; and the power to offer stock for sale to pay back assessments. The <br />LLRC articles of incorporation and by-laws are included in Appendices A and B, respectively. <br />In addition to the LLRC, two other Lower Latham Companies, the LLDC and the Lower Latham <br />Asset Management Company (LLAMC), are integral to the operation of the plan for augmentation. <br />The LLDC provides a means for delivering the LLRC water supplies to the various shareholders <br />under the Latham irrigation system. In addition, the use of the Lower Latham Ditch, which is owned <br />by LLDC, is necessary for the operation of the plan for augmentation for making physical water <br />deliveries. Requirements for eligibility in the LLRC plan for augmentation include the need for the <br />well owner to own either LLRC or LLDC stock. The LLAMC was established in January 2004 for <br />purposes of managing and administering the Lower Latham Plan for Augmentation. <br />3.0 PROJECT SERVICE AREA <br />LLRC and LLDC jointly provide irrigation water to a service area of approximately 11,000 acres in <br />Weld County. The Lower Latham Reservoir is filled through the Union Ditch under a carriage <br />agreement with the Union Ditch Company. The Lower Latham Ditch headgate is located on the <br />South Platte River in Section 31, Township 5 North, Range 65 West of the 6 th P.M. The ditch <br />conveys direct flow water from the river and storage water from Lower Latham Reservoir. Figure 1 <br />shows the general service area of the Lower Latham Ditch, the diversions structures, ditches and <br />other improvements owned and operated by the LLRC and LLDC. <br />-2- <br />