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STATE UF CQLORADO
<br />Co�orado Water Conservatian Board
<br />�epartment af Natural Resources
<br />t 313 Sherman Street, Rcx�n 721
<br />€7enver, Coloracto 80203
<br />Phone: (303) 8GG-3441
<br />[�ax: (303) 866-�74
<br />www.cwcb.state.co. es
<br />Revised
<br />September 21, 20.11
<br />"I'U: Colorado Water Conservation B ard Members
<br />FRONf: 'I'im Feehaa�, P.E., Ch're �
<br />t�inance Sc�ction �J
<br />v
<br />D�TI;: July 1, 2011
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<br />C3ili Ititter,lr.
<br />Goverm�r
<br />Mike K.ing
<br />DNR Eixecutive Director
<br />.lennifer I.,. Gimbel
<br />C`WC.�3 i:)irecior
<br />StJBJFC`I': Agenda Item 27, July 1.2-13, 2011 Board Meeting
<br />Finance Section — Revision to Existing Loans
<br />Orphan Wells of VViggins -- Construetion Tnterest Forgiveness
<br />Introductian
<br />At the November 2003 I3oard Meeting, the �3oard approved Orphan Wells of VI%iggins, LLC.
<br />(OWW) a loan for $1,048,�77, ta construct a groundwater recharge auganentation Project,
<br />consisting of one recharge well, one augmentation weii, pipeline, and various recha�ge po��cis. �t
<br />t11e May 200G Baard Meetin�;, the Board approved an increase of $202,OOU to OW W's original
<br />authorization. Ho�wever, due to pendin�; water court issues at the time, OW W's contract was not
<br />arnended to reflect the approved ir�crease.
<br />'I'o date the Colorado Water Conservation Board (CWCI3) ha�5 disbursed $942,444.44 to OWW
<br />towards th.e completiori of ihe above described Project. The Project, however, is eurrently <�n hold
<br />inde�niteiy, �;iven OW'Vi�'s inability to obtain an apprc�ved augmentatian plan in water court. Ciiven
<br />the lnng term uncertainty of the Pr.oject, CW'C�3 is vie�wir�g the Project as cornplete and has
<br />provided OWW witl� a I'roj�ct Substantial Gompletion letier, dated April 29, ZOl i, identifyin� the
<br />annual payment amourtt, du�; date, and interest during construction (TDC) du�; c�f $152,61. I..72.
<br />()�VijW is in agrc�ment ��ith the terms of contract, as outlined in th.e substantiai completion letter,
<br />but is farmaily requesting ihat the 1DC bc� calculated ar�iy from March 29, 2003 tn Uctober l, 2008
<br />thereby rcducing it�� IDC� abli�ation by $56,872.44. t�ttached heret�, is the formal request to
<br />reduce lI)C, by Steve Bruntz, President aflOWW. It is UWW°s in.tention to h�Id onto the project,
<br />make an.nual payments, and submit a new a�plicatian in water court under a re��ised set af
<br />paramet�rs and con.ditions.
<br />i.nter!it�te & Nedcrai •�Yatershed dtc %'Eo�f�i 1'rufection • 5trcam dtc t.,ake Protection • Pinence
<br />Water lnformation • Wxter Consenati�n & f)rought I'tanning • Wxter Suhply PianainQ
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