ALP 16

Project: Cucharas Reservoir and Dam Rehabilitation Project
Borrower: Huerfano Cucharas Irrigation Company
Project:
Construct a new dam at Cucharas Reservoir bringing back 35,395 AF of storage to ag users in the
Arkansas Valley. SEO restriction has been in place since 1988 and a breach order could be imposed by
Oct. 1, 2010 if repairs are not made.
Project Costs:
Dam Repair $19,460,000
CWCB Loan $9,900,000 $99,000 $9,999,000
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Additional Funds needed for dam $9,560,000
Total Project* $30,739,000
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Additional funds needed for TOTAL project $20,839,000
*Includes: admin fees, permitting, land purchased for farming, equipment (i.e. center pivots)
Borrower:
Huerfano Cucharas Irrigation Company (Irrigation Company)
Irrigation Company = HCIC, LLC (74 %) ** + original shareholders (26 %)
* *HCIC, LLC has contracts to buy up to 79% of the original shares and expects to own 95% ultimately
HCIC, LLC = Two Rivers Water Company (50 %) + Two Rivers Basin Company (50 %)
Two Rivers Water Company is the parent company to:
• Two Rivers Basin Company
• Two Rivers Farming
• Two Rivers Energy
• Northsight (development company being liquidated)
Two Rivers Water Company has contributed $3,670,000 to date to Irrigation Company towards the
project. Water Company plans on reintroducing ag production to the area serviced by the Irrigation
Company. It will do this through Two Rivers Farming.
Two Rivers Farming will lease water from HCIC, LLC. Two Rivers Farming is planning to prepare 500 AC
for planting in the 2010 growing season.
Former shareholders in the Irrigation Company that want to keep farming can lease the water back from
HCIC, LLC at $10 /AF through long term leases.