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STATE �F COL�RADC�
<br />Coiorado Water Conservation Board
<br />Departm�nt af Natural Resources
<br />t313 Sherman Street, Ka>m 721
<br />I)enver, CoEi�racio 80203
<br />Phonc: (303j 86G-344]
<br />I'ax: (3U3) R66-447�
<br />W WRV.C�YCb.SiB[C.CO. dS
<br />Revised
<br />Septe�nbe� 21, 2Q.11
<br />"I'O: Colorado Water Conservation B ard Members
<br />✓
<br />FROM: "I'im Feehan, Y.�;., C'hie �
<br />I; inance Seeti�n , �f
<br />t
<br />DATL: July 1, 2011
<br />Ciill Rittcr,lr.
<br />Governor
<br />Mike K.ing
<br />DNR Gxecutive pirecfor
<br />Jennifer I_. Ciimhei
<br />r.wct� ����ecc�x
<br />Si1BJF�:CT': Agenda Item 27, Jc�ly 12-13, 2011 Board Meeting
<br />Finance Section — Revision to �:xisting Loans
<br />Orphan Wells of Wiggins — Construction Interest Forgiveness
<br />lntroc�uction
<br />At tlze November 2003 I3oard Meeting, the F3oard approvcd Orphan Wells of Wi�ins, LLC
<br />(OWV�) a]oan for $i,048,077, to construct a groundwater recharg�: augmentation Project,
<br />consisting of one recharge well, one augmentation well, pipeline, and various recharge poi�ds. At
<br />tlle May 2006 Board Meeting, the Board appro�,�ed an increase of $202,OOU io OWW's original
<br />authorization. i-Iowevcr, due to pending water court issues at the tirne, C)W W's contract was not
<br />amended to reflect the approved increase.
<br />'I'o date the Colorado Water Conservation �ioard (CWC�3) has disbwrsed $942,494.44 ta OWW
<br />towaxds the completiori of the above descxibed Project. The Proj�Lt, however, is eurrently on hald
<br />indefinitely, �;iven UWt�'s inability tc� obtain ai� ap}�raved au�,mientatio� plan in water courl. Gi.ven
<br />th� lon�; term uncertainty of the Project, CWCf3 is viewing the Froject as complete and has
<br />provided OWW with a Project Substantial Campletion le.tter, dated April 29, 201 l, identifying the
<br />annual payraer�t amount, du�; date, and inter�st durin�; con.s�-uction {II7C) due vf $152,61 I..72.
<br />t)V��W is in agreement �uith the terms af contract, as outlined in the substantial c<�mpletion letter,
<br />bui is farmally re;c�uestin� thai the I.DC be caTculatcd anly from March 29, 2003 tc� Uciober 1., 2008
<br />thereby re,�ucii2g it�5 l�C obli�;al:ion hy $56,872.44. �ttacheci herc:to, is the farmal request to
<br />reduce ii)C, by Steve Bruntz, President af' OWW. it is OW W's i.nten.ti.on to liold onto the project,
<br />m.ake ann.ual payments, and submit a n4w application in water caurt under a revised set af
<br />parameters a�nd canditions.
<br />lnterstatc & Fedcrai •�4'atersh�d 8r F`lood 1'rutectioo • Stream & t,ake Protection • Financt
<br />V:`Atfr lnfor�tl�fion' �YkC2f CODSCIYB(1011 Si UYQtigllt PI&Iill�tl�, • WAICC �UpPiy PIAIIpIR�,
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