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Loan Feasibility Study for Raw Water Acquisition and Utilization Page 18 and Environment (CDPHE). Approval of the reservoir design and construction from the State Engineer Office (SEO) will also be required. Other anticipated impacts include socioeconomic impacts from increased growth in the area (in part made possible by the new water supply) and positive economic impacts from construction of the project. A limited amount of cooperation with other entities would be required for utilization of the Lester and Attebery Ditch. Currently, the Bureau of Land Management (BLM) uses the ditch to convey water to its Great Blue Heron gravel pit and diversions are taken through the Lester and Attebery for irrigation of the Grisenti property. The expandability of this alternative is currently limited by the carrying capacity of the Lester and Attebery Ditch. However, through design modification this project could allow for eventual expansion of the District system. While this project meets the District's needs, in comparison to Alternative 3, this alternative is not as cost effective. A comparison of Alternative 2 to the other water utilization projects is presented in Table 4. Alternative 3 Alternative 3 consists of the installation of seven (7) ground water wells along the Arkansas River to divert the historical consumptive use component of the Pleasant Valley Ditch water right. A pipeline will be constructed to convey water up to an enlarged Brush Hollow Reservoir. The enlargement of Brush Hollow Reservoir will include an increase in the height of Brush Hollow Dam by four (4) feet. Once in Brush Hollow Reservoir, the water will be incorporated into the BPW (and therefore the District's) existing system. To increase flexibility and utilization of the project, a augmentation plan will be filed in Water Court. A schematic of Alternative 3 is presented on Figure 6. This project satisfies a portion of the District's need by supplying a base municipal demand, providing a reliable water supply, and diversity of water sources. As a result of the initial filtration of the Arkansas River supply resulting from the diversion of the Pleasant Valley Ditch water through ground water wells and the mixing with Beaver Creek supply prior to utilization in the District system, the impact of Alternative 3 on the existing water treatment and distribution system may be reduced. It should be noted that water quality information for wells in the vicinity of the District proposed well field was not reviewed for this analysis. Water quality will be considered in the final design of the project. Leonard Rice Engineers, Inc. August 2006 — 1018PEN05 GMS, Inc.