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Grant Application - CWCB Construction Fund <br /> Form Revised December 16,1999 <br /> previous study by primarily addressing geotechnical issues of dam enlargement. The <br /> economic feasibility will also be studied, with emphasis on whether selling stored water <br /> for domestic use is an essential component of the enlargement's feasibility. Enlargement <br /> of this reservoir will help provide a more adequate supply of water to existing irrigated <br /> acreage and may provide the domestic water supply for a rural water system that is <br /> needed in the area. <br /> The primary service area, or area that will benefit includes the whole La Plata River basin <br /> and some areas of New Mexico. However, benefits would accrue to the State of <br /> Colorado as a whole due to improved administration of the interstate compact that divides <br /> the waters of the La Plata River between Colorado and New Mexico. Improved <br /> administration will allow more of Colorado's water to be used within the state, will serve <br /> to protect the water interests of the state, and can be expected to limit the potential for <br /> litigation between Colorado and New Mexico. <br /> ALSO SEE STUDY PLAN TO BE PROVIDED UNDER SEPARATE COVER. <br /> 5. Please explain why you are requesting a grant, instead of a loan. (The Construction Fund <br /> exists primarily to provide low interest loans for the construction or rehabilitation of Raw <br /> Water Projects. Grants are approved only when the project or study is of State interest <br /> and benefits a wide range of people and organizations, and/or a large geographical area. <br /> The applicant(s) must also show that they are financially unable to repay a loan): <br /> LPWCD is requesting a grant because the project will improve the administration of an <br /> interstate compact in a manner that is of statewide sinificance. The improved <br /> administration will lessen the potential for expensive litigation with New Mexico and will <br /> allow more of Colorado's water to be used in Colorado. It should also be noted that <br /> substantial funds have been already been expended by local and federal entities (see <br /> summary in the Study Plan). <br /> 4 <br />