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AGENCY NAME: Colorado Water Conservation Board
<br />AGENCY NUMBER: PDA
<br />ROUTING NUMBER: �U � (
<br />�, $90,000
<br />LOAN CONTRACT
<br />THIS CONTRACT, made this �`� __' day of ,� f f��, ,� �� 1998, by
<br />and between the State of Colorado for the use and benefit of the Department of Naturai
<br />Resources, Colorado Water Conservation Board (CWCB), hereinafter referred to as the
<br />STATE, and Rodney J. Preisser, 90 South Cascade Avenue., Suite 950, Colorado Springs,
<br />CO 80903, hereinafter referred to as the BoRROwER and/or CorvTRacTOR.
<br />FACTUAL RECITALS
<br />1. Authority exists in the law, and funds have been budgeted, appropriated and otherwise made
<br />available and a sufficient unencumbered balance thereof remains available for payment in
<br />Fund Number 424, Organization YYYY, Appropriation SPL, GBL P824, Program WTRC,
<br />Object Code 5120, Reporting Category 3824 Contract Encumbrance Number C153824.
<br />2. Required approval, clearance, and coordination have been accomplished from and with
<br />appropriate agencies.
<br />3. Pursuant to the provisions of §§ 37-60-119 and 37-60-120, C.R.S. (1997), the STATE IS
<br />authorized to loan money for water projects for the benefit of the people of the STATE,
<br />provided that the borrower assures repayment of that money.
<br />4. Section 37-60-122.7, C.R.S. (1997) authorizes the STaTE to make loans of up to $100,000
<br />from the Small Project Loan Account of the Construction Fund without prior approval from the
<br />General Assembly if the STaTE determines that delay would result in undue hardship on the
<br />borrower.
<br />5. Th2 BORROWER, who owns wells in the Horse Creek basin, applied to the STaTE for a loan in
<br />the amount of $90,000 to be used to partially finance the purchase of certain water rights from
<br />the Box Springs Canal and Reservoir Company and individual shareholders of the Box
<br />Springs Canal and Reservoir Company ("Box Springs Water Rights"), and as partial
<br />compensation to Reid Cattle Co. ("Reid") for 550 acre-feet of consumptive use, said purchase
<br />and compensation hereinafter referred to as the PRO�ECT. The BoRROwER obtained an
<br />augmentation plan decree using the Box Springs Water Rights as the source of augmentation
<br />water, in Case No. 97CW106, decree entered May 19, 1998. The BoRROwER also has entered
<br />into a settlement agreement which settles issues raised in the declaratory judgment action
<br />brought by the BoRROwER (Case No. 97CW010), and broader water use issues in the Horse
<br />Creek Basin, which settlement agreement requires, inter alia, compensation to Reid. The
<br />parties in Case No. 97CW010 (the BORROWER, the Colorado State Engineer, Box Springs
<br />Canal and Reservoir Company ("Box Springs"), Smith Cattle, Inc., and Reid Cattle Co.), along
<br />with the Horse Creek Water Users Association ("HCWUA"), entered into said settlement
<br />Rodney J. Preisser Page 1 of 9 Loan Contract
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