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CWCB Loan Narrative Overview 1 <br />TABLE OF CONTENTS Introduction ............................................................................................................................................................................... 2 Project Sponsor ........................................................................................................................................................................ 3 Coal Mining & Produced Water ..................................................................................................................................... 3 1987 Flood & Cucharas REservoir Storage Restriction ...................................................................................... 4 HCIC System Decay & 2008 SEO Suspense Letter ................................................................................................. 4 Change of Ownership & Change of Management ................................................................................................... 4 Project Background & Need ................................................................................................................................................ 5 Study Area Description .................................................................................................................................................... 5 Project Lands ........................................................................................................................................................................ 5 New Produced Water ........................................................................................................................................................ 6 Surface Water ....................................................................................................................................................................... 7 Water Quality Issues.......................................................................................................................................................... 7 New Water & Renewed Farming Activity ................................................................................................................. 7 Field Investigations ............................................................................................................................................................ 8 Project Alternatives .............................................................................................................................................................. 10 Selected Alternative .............................................................................................................................................................. 10 Design Criteria ................................................................................................................................................................... 12 Right-of-Way ....................................................................................................................................................................... 13 Cost Estimate ...................................................................................................................................................................... 13 Permitting ............................................................................................................................................................................ 13 Impacts .................................................................................................................................................................................. 13 Project Schedule ................................................................................................................................................................ 14 Financial Overview ............................................................................................................................................................... 15 Previous CWCB Loan ....................................................................................................................................................... 15 New CWCB Loan Application ....................................................................................................................................... 15 Table of Project Funding and Repayment Sources ............................................................................................. 15 Tabor Impacts .................................................................................................................................................................... 16 Borrower Financial Condition and Need ................................................................................................................ 16 Appendices ............................................................................................................................................................................... 17