C150159 Amended Approval Letter - Laserfiche WebLink

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Orphan W�IIs of Wiggins LI..,C •- LIX' Forgivencss luly l, 20! I Page 2 of 4 Staff Recommendation Agencla ltcm 27 Staff r�:cc�mn�ends that the Board approve a reduction in I:DC for Orphan WeI1s of Wiggin's I.,LC, frozn $iS2,611.72 to $95,739.28. $95,205.56 of the lUC due will be rolled into OWW's loan, bringing its fi.nal loan balance to $1,048,077.00, which includes a 1% loan service fee, at an interest rate af 2.S°1o, amortized over 3U years. UWW will pay the remaini.n.g [llC balance of $533.73 directly to CWCB. Additionally, OWW agrees to amend its loari contract with CWCB to include ten shares of Riverside Pri.vate Reservair Rights and one sh.are �f Tackson. Lake Private Resecv�ir Rights, as collateral and ta provide copies af all executed easements associated with the project. Background In lvroven�ber of 20U3 OWV1j was comprised of 31 scparate agricultural operators, �5 wells and 4,500 aeres of irri�;ated farmland. "I'lzese lands received irrigation water only iroin jun.ior welIs, and wcre n.ot within the servic�: area of an existi.ng agricultural ditch system. Depictians from the 45 weils must be replaced during times when there is a call on the river by senior do��•nstream water righis. The Groundwater Appropriators of the South Platte (GASP) used to cover these depletians, i�ut has since d.issolved, therefore requiring the 31 operators to fnd alternate means to cc�ver their well depletions. In 2003, the vaxious operators formed an Limited Liability Company (LI.C), registered in the State of Colorado, under the name of arphan VVells of Vi�iggiias, LLC. The company developed a rechar�e/well augmentation plan to generate credits to offset the depletions f�roin the 45 wel ls. The plan involved tlie construction �f c�i�e recharge well, one augn�entation well, five miles of pipeline, and various rechaxge sites, at an estimated total cost of $].,153,�p0. The plan was reviewed and apprc�ved for a construction loan by CWCB at its Naveznbe;r. 2003 I3oard Meeting. The following is a brief summary of the events that have taken place since loan approval: • 17�rin�; 240� UWW comptetes pipeline and the installation �f two wells, one at the river and the c�ther at the �nd of the pipeline. • I7urin�; 2045 thru 20(�6 (JWW attempts to address abjections to its au�nentation plan and to purchasE: and/c�r lease additional senior water. • In early 2007 4W�V4' decides to reduce its number of inembers froan 3] to l.8 and ta r�duce its irrigated farmland by 50%, therefore placing itself in a better positi�n to h.ave its augmentatic�n plan approved in water cc�urt. O\W�V v�•ater caurt applicatian was am�;nded in. 20�7 ta re;flect this change. • In Maxch of'2U07, Judge Kline ruled that OWW �vas not liable for past depletions of members removed from the amended applicati.on. • March 2d47 to October 200$, flW W spends an additianal $140,000 in engineerin� a,nd legal fees to prepaFe for triai, scheduled f�r (�cta�cr of 2008. •()n Octot�;r l, 2008, Judge I�I.ine rever�s I�is r3.eei:sion a.nd requires C1'V�W to cover past depletions of inembers that had drop�ed under the am�;nded application. 'I'h.is re-ru.lin� collapses (7VJW's ability to mec;t its depl.eti�ns with. the water available un.der its proposed au�n.entatic�n plan.