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Loan Feasibility Study for Raw Water Acquisition and Utilization Page 17 Purchase of a potion of the Grisenti property along the Lester and Attebery Ditch would be required for Alternative 2. The Grisenti property, not including associated water rights, has been offered to the District for $3,000,000. The Lester and Attebery Ditch water rights and land are currently encumbered by a 15 year lease with Castle Concrete. The lined, 600 of storage facility would be constructed with an inflow structure from the Lester and Attebery Ditch and an outflow structure to the Arkansas River. The wet well, adjacent to the storage facility, equipped with a 60 hp pump would pump water from the storage facility, through a pipeline, to the WTP. The total project cost for Alternative 2 is approximately $17,000,000 which is comprised of $2,784,109 for the Pleasant Valley Ditch water right purchase, $8,600,000 for purchase of the Grisenti property, improvements to the Lester and Attebery Ditch, and development of storage under the Lester and Attebery Ditch, $2,800,000 for construction of a pipeline from the storage facility to the WTP, a 20 percent contingency. In comparison to the other alternatives evaluated, this alternative could have the most significant impact on the existing water treatment system due to the water quality of the Arkansas River direct supply being different from that of the Beaver Creek supply. Incorporation of the Arkansas River supply may require changes to the treatment processes used at the WTP. Of particular concern would be the relatively high dissolved and suspended solids loads in the Arkansas River supply. Storage of the Arkansas River supply would allow for some settling of solids. As such, the water treatment processes utilized at the WTP could need to be modified. It should be noted that water quality information along the Arkansas River in the vicinity of the proposed diversion point were not reviewed for this level of investigation. Alternative 2 would likely have several environmental impacts, and would require certain environmental permits as discussed below. Construction of a new water storage facility in the Arkansas River floodplain may require approval from the Federal Emergency Management Agency (FEMA) [e.g. Conditional Letter of Map Revision / Letter of Map Revision (CLOMR/LOMR)], and would also need to comply with the Fremont County Flood Damage Prevention Regulations. A Section 404 permit would likely be required by the U.S. Army Corps of Engineers for construction of the new storage facility and possibly for pipeline crossing(s) of Brush Hollow Creek and any other jurisdictional waters along its route. 404 permits for pipeline crossings may potentially be avoided if the pipe is routed along roads and if the pipe can be suspended from a bridge. Four threatened (T) or endangered (E) and one candidate species (C) are known to reside in Fremont County (black- footed ferret [E], bald eagle [T], Canada lynx [T], Mexican spotted owl [T]), and Arkansas darter [C]. A natural resources assessment should be completed to determine whether any of these species reside in the project impact area. If species are located in the proposed project area, sections 7 and/or 9 and 10 of the Endangered Species Act may be triggered. (A Section 7 consultation will only be triggered if there is another federal "nexus ", such as a federal permit (i.e., section 404 permit) or federal funding. Sections 9 and 10 may be triggered if a listed animal species is found in the project area.) There may be water quality impacts (eutrophication) in the new reservoir, depending on detention time and other factors. Other water quality permits and approvals may also be needed for construction of various project components, including a Colorado Discharge Permit System (CDPS) Construction Dewatering Permit, a CDPS Stormwater Quality Permit, and possibly a Section 401 Water Quality Certification from the Colorado Department of Public Health Leonard Rice Engineers, Inc. August 2006 — 1018PEN05 GMS, Inc.