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Grand River Ditch Company <br />July 9, 2010 (Updated July 30, 2010) <br />Page 2 of 5 <br />Background <br />Agenda Item 8b <br />The Company annually collects, diverts and delivers 50 cfs or about 14,500 AF of water from direct <br />flow rights in the Colorado River (River). The Ditch distributes water to Company shareholders in <br />an area between New Castle and Rifle. <br />The Ditch is located north of the River and within the I-70 and Colorado River corridor in central <br />Garfield County. During the spring of 2009, a portion of the Ditch was severally damaged during high <br />River flows. The Company desires to install a pipeline to permanently fix this section of the Ditch. <br />During the spring of 2010, approximately 60 feet of a retaining wall that protects the Ditch from the <br />River collapsed due to an extended high-water season. This particular section of the Ditch has about <br />'/4 mile of various types of riprap material that was installed nearly 100 years old. The River will <br />likely continue to encroach on the Ditch and cause it to fail again. The pipeline will also prevent <br />ditch seepage and saturation of the bank between the Ditch and the River. <br />Loan Feasibility Study <br />The Loan Feasibility Study, titled "Feasibility of Piping a Section of the Grand River Ditch" dated <br />May 2010, was prepared by Dennis Davidson, Bookcliff Conservation District. The study includes <br />preliminary engineering design and construction cost estimates prepared by Mike Kishimoto. The <br />study was prepared in accordance with the CWCB guidelines. <br />Borrower - Grand River Ditch Company <br />The Grand River Ditch Company is a non-profit Colorado mutual ditch company, founded in 1917 <br />and has 270 shares and 148 shaxeholders. The Company has an elected Board of Directors that <br />manage the day-to-day business and operation of the Ditch. The Company is made up of 29% <br />agricultural, 13% commercial and 58% middle income municipal type shareholders. <br />The Company's bylaws indicate the Board of Directors may enter into a loan contract with CWCB <br />and has the power to sell stock for non-payment of annual assessments. The Company's annual <br />meeting is held in the January. <br />Water Rights <br />Grand River Ditch is also known as the Cactus Valley Ditch or Lower Cactus Valley Ditch. Water <br />for the Ditch is supplied by a direct diversion from the Colorado River delivered through an open <br />ditch. The Company's water rights are dated 1889 for 50 cfs, Ditch Number 82-A Priority No. 142- <br />B in Water District 39. The Ditch is approximately 14 miles long. It starts about 3 miles west of <br />New Castle, Colorado, on the north side of the Colorado River and ends about a mile east of Rifle, <br />Colorado. The Ditch typically runs between May l and October l The water is primarily used for <br />pasture irrigation and outside watering of 5 to 10 acre residences. A small portion of the rights are <br />used for augmentation. <br />