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Lowline Ditch Company, Inc. <br />C/O Fetzer & Company This dacument is incorporated <br />P.O. Box 1111 into the contract by reference. <br />Sterling, CO 80751 : . <br />(970) 522-1015 <br />Jixne 22, 2005 <br />Mr. Mike Serlet, PE <br />Colorado Water Conservation Board <br />1580 Logan Street, Suite 750 <br />Denver, CO 80203 <br />REF: AC'�RTCULTURAL EMERGENCY DROUGHT GRANT APPLICATION <br />Dear Mike: <br />This �etter and the enclosed information is in support of the Lowline Ditch Company Inc. <br />(Lowline) request for funding for years 2003 and 2004 through Colorado's Agricultural <br />Emergency Drought Response Grant. Lowline Ditch Company was formed on August 14, 1884 as <br />a Mutual Ditch Company to deliver direct flow water to shareholders and then in 2003 the Lowline <br />applied far a Augmentation plan and recharge water right to replace depletions from shareholder <br />wells to allow its membeYS to continue to use fheir weils(1 �i wells kotaT—f 4 irrigatien, 1 dedicated <br />augmentation, and 1 feedlotl by complying with Colorado state laws and regulations. Lowline is <br />incorporated �znder the �Colorado Revised Nonprofit Corporation Act as evidenced by receipt from <br />the Colorad� Secretary of State. Lowline has filed Form 1024 with the U.S. Internal Revenue <br />Service fc�r recognition of tax exemption under Section SO1(a) as a�Ol(c)(12) Mutual Ditch <br />Company and has been excepted by the IRS. <br />The specific purpose of Lowlines' water court filing is the developmerit, adjudication and <br />continued operation of a plan of augmentation for its member wells. Member wells are monitored, <br />depletions to the river are computed and assessments levied. These assessments are utilized to <br />lease replacement water supplies and pay the attorney and engineering costs associated with <br />obtaining Substitute Water Supply Plans from the State Engineer and the final Water Court <br />approved Augrnentation Plan. Lowline's Augmentation Plan Case No. 03-CW-09� is set for trial <br />in Water Division 1 District Water Court beginning January 2007. <br />A three person Board of Directors governs Lowline. The current Board Members are as follows: <br />Donald Schell, President <br />Adrian Kaiser, Vice President <br />Steve Kaiser, Secretary <br />For years 2003 and 2004, Lowline has operated under a Colorado State Engineer approved <br />Substitute Water Supply Plan. Lowline fully augmented the out-of-priority depletions to the river <br />as required by the State and Division Engineer. The replacement supplies consisted of leasing <br />