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CWCB Loan Narrative Overview 2 <br />INTRODUCTION The Huerfano–Cucharas Irrigation Company (HCIC) is organized as a not-for-profit mutual irrigation company with corporate offices located in Pueblo, Colorado and operations in Huerfano and Pueblo Counties. The Cucharas Valley No. 5 Dam and Reservoir (Cucharas Reservoir) is an on-stream structure built at the mouth of Cucharas Canyon for the purpose of impounding stream flow from the Cucharas River in Huerfano County for use downstream as irrigation on farms in Pueblo County. In the first week of May 1987, the Cucharas Dam spillway overflowed and extensive seepage appeared along the toe abutments of the dam. It was later discovered that a portion of the upstream concrete facing on the rock fill dam had failed, which allowed large quantities of seepage to flow through the rock filled embankment. As a result of the seepage, the State Engineer’s Office, Dam Safety Branch, (SEO) restricted storage to a gauge height of 100 feet or approximately 10,000 acre-feet of storage. The storage restriction remains in effect today. On July 1, 2008, The SEO issued a suspense letter requesting submission of designs, plans and specifications for rehabilitation of the Cucharas Dam for review and approval by October 1, 2010 or a zero, no storage, restriction would be issued. In February 2010, Two River Water Company (Two Rivers) purchased a controlling interest in HCIC and changed the makeup of the five member HCIC board and developed a plan for repairing and restoring the Cucharas Dam. HCIC respectfully submits this document in support of a request for a loan from the Colorado Water Conservation Board (CWCB). The Cucharas Reservoir is located in northern Huerfano County approximately 10 miles northeast of the City of Walsenburg, Colorado. <br />