ALP 4

Initially, the District will appropriate $25,000 in 2013 to pay OM &R expenses for all 2,500 AF of
ALP Water subject to this proposal, if such expenses are payable at any time during that calendar year.
Such payment could be made by reimbursement to CWCB or by direct payment to the entity responsible
for collecting OM &R expenses.
By December 31, 2013, the District agrees to acquire 100 acre -feet of ALP Water @ $3,545 per
acre -foot (or the final amount, if different), for a total of $354,500. These funds would be appropriated in
the District's 2013 Budget upon preliminary or final approval of this Proposal.
The District would also be granted annual rights to purchase up to 2,400 acre -feet of ALP Water
by December 31, 2060. Such purchases could commence in 2014 and continue in each calendar year
thereafter during the term of the Agreement. The District agrees to purchase ALP Water in increments of
not less than 50 acre -feet per year @ $3,545 per acre -foot, or $177,250 per year. The District may
acquire more than 50 acre -feet of ALP Water without limitation in any year, or from time to time, if
additional funds become available to the District for purchase and are so appropriated.
If all purchase rights to be granted to the District by CWCB are exercised, the District will
acquire 2,500 acre -feet of ALP Water at a total acquisition cost of $8,862,500 (excluding any OM &R
expenses paid by the District) without using any of its debt authorization, thus preserving that debt
authorization for construction of water treatment and water distribution facilities.
We are available to discuss this Proposal at any time. Please contact Ed Tolen, General Manager,
at 970.563.0320 or 970.442.1303 to set up a telephone conference with Ed and me and the District's
Engineering Consultant, Steve Harris, and its legal counsel, Eric Jorgenson (303.218.7203). I look
forward to working with you and your staff and the Colorado Water Conservation Board in reaching a
mutually acceptable agreement for addressing the District's future water supply needs for rural La Plata
County. Thank you for your consideration.
Sincerely yours,
Richard D. Lunceford, Chairman
La Plata Archuleta Water District
cc: Board of Directors
Steve Harris
Eric C. Jorgenson, Esq.