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Lone Cabin Ditch & Reservoir Company Agenda Item 29c <br />September 13, 2013 (UPDATED September 26, 2013) <br />Page 2 of 7 <br />Background <br />The Lone Cabin Dam is a 53 foot tall earthfill jurisdictional dam constructed in 1905 and enlarged a <br />couple times. It is located in Delta County and impounds 163 acre -feet (AF) of irrigation water. The <br />Reservoir is located approximately five miles southeast of the town of Paonia at 7,380 foot <br />elevation. The Division of Water Resources (DWR) inspected the dam on August 9, 2011 and <br />restricted the storage by 20 feet (restricted storage capacity of 18AF) due to the safety threat of <br />failure related to a slump found on the downstream slope of the dam embankment. The dam has <br />been operating under this restriction since August 2011. <br />In August of 2011, Buckhorn Geotech was retained to evaluate the cause of failure and provide <br />repair options. The results of this evaluation are provided in the Buckhorn Geotech draft report <br />Geotechnical and Design Report Lone Cabin Dam Rehabilitation, Division 4 Water District 40, <br />Dam ID: 400404, Delta County, Colorado, Revised June, 2012. <br />The main point of diversion for the Company's system is from the Lake Fork of Minnesota Creek at <br />elevation 7,700 feet. The canal feeds into the Lone Cabin Reservoir. The Company's service area is <br />located southeast of Paonia, in Delta County. The irrigation system is tributary to the North Fork of <br />the Gunnison River and is located on the north facing slopes of Mount Lamborn extending down to <br />the north and west to irrigated lands along low mesas south of the North Fork of the Gunnison <br />River. There are approximately 17 miles of mostly open and unlined ditches and serves to irrigate <br />alfalfa hay, grass hay, pasture, organic produce, commercial flowers and some silage corn. <br />Loan Feasibility Study <br />The Loan Feasibility Study, titled Geotechnical and Design Report - Lone Cabin Dam <br />Rehabilitation, dated May 16, 2013, was prepared by James Briscoe. The study includes <br />preliminary engineering design and construction cost estimates prepared by Norman J. <br />Aufderheide, P.E., Buckhorn Geotech, Inc. The study was prepared in accordance with the CWCB <br />guidelines. <br />Borrower — Lone Cabin Ditch & Reservoir Company <br />The Company was established as a non - profit mutual ditch company in 1935 and is in good <br />standing with the Colorado Secretary of State. It has 18 shareholders who own varying amounts of <br />stock and varying sized agricultural land. The 8,628 shares of stock in the Company provides <br />irrigation water for approximately 500 acres of irrigated agricultural owned by shareholders of the <br />Lone Cabin Ditch and Reservoir Company. <br />Water Rights <br />The Company has direct flow water rights: <br />Court Case <br />Adjudication Date <br />Decreed Amount <br />CA0617 <br />06/24/1914 <br />15 cfs <br />CA0617 <br />06/24/1914 <br />10 cfs <br />The storage decrees for the Lone Cabin Reservoir are as follows: <br />CA0617 <br />06/23/1914 <br />90AF <br />CA2563 <br />05/28/1937 <br />235.9AF <br />