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Loan Feasibility Study for Raw Water Acquisition and Utilization Page 20 The environmental impacts for Alternative 3 are discussed in detail in Section 6.6 of this report, and are listed below. Environmental permitting requirements are discussed here as well. Identified potential impacts included minor or insignificant impacts to the floodplain, farmland, recreation, wetlands, and water quality. A natural resources assessment should be completed to determine whether any of the four listed and/or one candidate species are found in the project impact area. Positive socioeconomic impacts are anticipated. Environmental permitting requirements could include the following: compliance with the Fremont County Flood Damage Prevention Regulations for the well field, if the County determines it lies within a Flood Hazard Zone; possible Section 404 permit for any unavoidable pipeline crossing(s) of jurisdictional waters or impact to waters of the United States (including jurisdictional wetlands) as a result of reservoir enlargement; CDPS Construction Dewatering Permit; CDPS Stormwater Quality Permit; possible Section 401 Water Quality Certification from the CDPHE; and potential compliance with sections 7 and/or 9 and 10 of the Endangered Species Act if listed species arc present and impacts cannot be avoided. (We believe that 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.) A permit will be required from BLM for construction and operation of the well field on BLM property and SEO approval will be required for dam modifications. Coordination and cooperation from BPW is required for the use of Brush Hollow Reservoir. These discussions are currently underway. The District and BPW are in the process of finalizing a letter of intent for the purpose of working together to determine how Brush Hollow Reservoir can be utilized by both parties. Once finalized, this letter of intent will be provided to CWCB for inclusion in this loan feasibility study. Once in place, Alternative 3 can be used to convey other Arkansas River water to the District, if and when it becomes available. A comparison of Alternative 3 to the other water utilization projects is presented in Table 4. Leonard Rice Engineers, Inc. August 2006 — 1018PEN05 GMS, Inc.