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Feasibility Study <br />Lake Meredith Outlet Channel Reconstruction <br />INTRODUCTION <br />The Lake Meredith Reservoir Company, located in Crowley County, Colorado, <br />provides water storage to its shareholders for municipal, agricultural, or any beneficial <br />use. The reservoir has a total capacity of 41,000 acre -feet. The lake is a natural <br />depression from which an outlet channel was excavated to allow operation of the <br />reservoir for water storage. The outlet channel is approximately five miles long from the <br />dead pool to the outlet gate structure. Over time sediment has washed into Lake <br />Meredith from the feeder canal (Colorado Canal) and from the natural runoff of Bob <br />Creek. The finer fractions of sediment seek the lowest areas of the reservoir basin, <br />where the outlet channel is located. Those sediments have filled in the channel and <br />have created a chronic and costly maintenance problem. The sediment obstructs <br />releases from the reservoir whenever the storage is lower than 17,000 to 18,000 acre - <br />feet. The purpose of the channel reconstruction project is to replace the existing <br />channel with a new channel that is designed to avoid sedimentation and to facilitate <br />more efficient use of the reservoir. <br />PROJECT SPONSOR <br />The Lake Meredith Reservoir Company (the Company) is a Colorado <br />Corporation founded in 1907 for the purpose of diverting, storing, conveying, and <br />releasing water stored in Lake Meredith for the benefit of its stockholders. There are 85 <br />shareholders owning 40,621.385 shares of stock in the company, of which 88 percent <br />are for municipal use, 11.3 percent agricultural use and the remaining 0.5 percent <br />domestic use and well augmentation. Reservoir releases once irrigated about 40,000 <br />acres of agricultural land. There are currently only about 3,500 acres under irrigation. <br />The Company has the power to set annual assessments, the power to terminate water <br />deliveries to shareholders that are in default, and the power to offer stock for sale to pay <br />Lake Meredith Res. Co. 3/7/03 <br />Feasibility of Outlet Channel Page 2 <br />