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<br />Emergency Loan Application and Feasibility Study [LEFT HAND DITCH COMPANY] Page | 4
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<br />Project Background
<br />During the unprecedented flood of September 2013 in the tributaries to the South Platte River, a
<br />significant number of diversion structures and dams along the river corridor were damaged. The
<br />Project repair/rehabilitation proposed in this Feasibility Study received significant damage as a
<br />result of the flood.
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<br />The Left Hand Ditch Company (Company) was formed on February 27, 1866 when the all of the
<br />owners of water rights on Left Hand Creek formed a mutual ditch company for the purpose of
<br />making a diversion from South St Vrain Creek to the Left Hand Creek basin. The individual
<br />water rights of the various persons forming the company were transferred to the Company for
<br />distribution under a mutual ditch company system. The company was incorporated on July 16,
<br />1890. The Company is made up of approximately 360 shareholders owning 16,647 shares of stock
<br />issued with 16,800 shares authorized.
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<br />The Left Hand Ditch Company is a mutual irrigating ditch company formed under C.R.S. §742
<br />101 to 118 is a perpetual corporation formed “to own and operate an irrigation and water system in
<br />the Niwot region of Boulder County, Colorado, and in connection therewith own, control,
<br />maintain and operate ditches, laterals, reservoirs, headgates, flumes, weirs, water rights and
<br />decrees, and other property of a complete irrigation and water system; to employ such secretaries,
<br />clerks, auditors, attorneys, water superintendents, ditch riders and laborers as may be needed; to
<br />divert, store, measure and distribute water under the water rights, priorities, and decrees owned or
<br />controlled by the Left Hand Ditch Company; to provide water to its stockholders for irrigation,
<br />agricultural, stock water, domestic, industrial, commercial and all other beneficial uses or
<br />purposes; and, in general, to carry on the business of providing such water to the stockholders of
<br />the Corporation.”. (Article III, Amended and Restated Bylaws/Articles of Incorporation).
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<br />The original Articles of Incorporation are nearly illegible therefore Appendix A includes a copy of
<br />the current Amended and Restated Bylaws/Articles of Incorporation adopted by the Shareholders
<br />of the Company on February 6, 2010. The powers and authorities of the Company as exercised by
<br />the Board of Directors are listed in Appendix A under Article VIII, Duties of Directors.
<br />Section 8 directs that All notes, leases, deeds, contracts, and other documents including new
<br />certificates of stock, shall be approved by the Board of Directors, signed by the President or Vice
<br />President, and attested to by the Secretary or Assistant Secretary with seal affixed.”
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<br />The Board of Directors consists of five persons who are stockholders or representatives of
<br />stockholders in the Company. The officers of the Company consisting of a President, Vice
<br />President Secretary, and Treasurer are members of the Board of Directors and are chose
<br />annually by the Board. The duties of Board of Directors are listed in Article VII of the
<br />Bylaws/Articles of Incorporation.
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<br />The Left Hand Ditch Company operates as an integrated ditch system to deliver water to its
<br />shareholders. The Left Hand Ditch Company owns five reservoirs containing about 4,800 acre–
<br />feet of water. Two reservoirs, Lake Isabelle and Left Hand Park are located just below the
<br />Continental Divide. Gold Lake is located north east of the Town of Ward. The final two, Allens’
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