C150156 FS

• Contract/PO #: C150156
• Contractor Name: Arkansas Groundwater Users Association
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Loan Projects - Doc Type: Feasibility Study

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Blatchley Associates, "Update Of The Estimated Fair Market Value of Stock In The Excelsior Ditch
Company" to analyze the financial feasibility of the purchase of 785 Excelsior Ditch shares. This
feasibility study further provides an updated evaluation of the Excelsior Ditch water rights, addresses the
requirements of HB95-1155, provides a funding analysis including a 30-year proposed schedule of
revenue and expenditures and presents the means for AGUA to repay the requested CWCB loan.
Purchase of an additiona1785 Excelsior Ditch share would give AGUA ownership of 1,792 shares of the
total 3,333 outstanding shares in the ditch, or a 53.77 percent interest.
Also included in AGUA's loan request is funding for the proposed enlargement of approximately four
miles of the Excelsior Ditch and the construction of a 15-acre recharge pond. In March of 2003, AGUA
constructed two recharge ponds (4.2 acres and 2.1 acres) as shown on Figure 2 for a total of 6.3 acres of
surface area. Because AGUA receives excess replacement water during some months of the year that
cannot be utilized by AGUA, the recharge ponds were constructed to allow the excess water to be
recharged to the groundwater and lagged back to the Arkansas River in a uniform monthly pattern. The
lagged replacement credits accrue to the stream in a very similar manner to the stream depletions caused
by AGUA's well pumping and during all months of the year. The ability to recharge AGUA's Excelsior
Ditch augmentation water (and other types of replacement water) increases the usable amount and
therefore the value of the supply. During April, June and July of 2003, AGUA had excess replacement
water that could have been utilized if they had additional recharge capacity available. Without the ability
to recharge the water, it must either be sold (if a buyer can be found) or it is left in the river and unused.
, 3.0 DESRIPTION OF ARKANSAS GROUNDWATER USERS ASSOCIATION
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AGUA is a nonprofit perpetual corporation formed to, among other reasons, "Develop, obtain,
adjudicate, and deliver to and otherwise provide protection for its members by augmentation or other
water supplies... " as stated in the Articles of Incorporation. A copy of AGUA's Articles of
Incorporation, adopted January 12, 1995 and amended November 21, 1998, are included in Appendix A.
AGUA's By-Laws, adopted March 17, 1994 are included in Appendix B. The members of AGUA are
well owners who have joined together for the purpose of including their well pumping in an Arkansas
River Replacement Plan in order to replace the depletions to the alluvial and surficial aquifers in the
Arkansas River Basin resulting from the use of their wells in the area from Leadville to John Martin
Reservoir including the Fountain Creek basin and other tributary basins. AGUA's current membership
AGUA — 2003 Feasibility Study - 5- August 15, 2003