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Table 3 also includes a preliminary estimate of annual costs in the event that this project <br /> is financed. It is recommended that the Union Ditch apply for a low-interest agricultural <br /> project loan from the Colorado Water Conservation Board. These loans are available at <br /> interest rates of 2.75% over a 30 year loan repayment period. Annual loan repayment for <br /> the project is expected to be between $8,000 and $15,000, including costs for annual <br /> operation and reporting of the plan for augmentation purposes. Based on these <br /> estimates, on a per well basis (40 wells in the plan), the project may cost between $200 <br /> and $400 per year. The amount of recharge water that the project will produce in any <br /> given year will depend on ability of the Company to divert water under their new junior <br /> right. <br /> Recharge Project Administration <br /> It is suggested that the Union Ditch project be administered independent of the <br /> Company's irrigation activities. However, management decisions should be made <br /> between the two administrations regarding the physical operation of the ditch system. <br /> The typical operation of the project, which will require that water be conveyed through <br /> the Union Ditch to recharge structures, should occur during the non-irrigation season. In <br /> the event that recharge water is in priority when there is still irrigation occuring in the <br /> system, the project should not injure other water rights or alter historical use and return <br /> flow patterns, by claiming recharge through the canal. Recharge water may be conveyed <br /> through the ditch when it is being used for irrigation; however, recharge via the canal <br /> should not be claimed. <br /> Recharge Project Management <br /> The success of the project will require standardized operational procedures, <br /> measurement and control infrastructure, and accounting procedures. The following <br /> sections recommend how the Union Ditch Company should manage recharge project <br /> operations. <br /> Measurement and Control <br /> Recharge water diverted from the South Platte River should be measured at the Union <br /> Ditch flume, which is located near the Union Ditch headgate and is administered by the <br /> State Engineer's Office. The recharge project should develop Company administered <br /> measurement structures at each individual recharge pond inlet. Inflows to recharge <br /> ponds should be measured daily during recharge operations. Measurement structures <br /> are not necessary for purposes of determining recharge through canal segments. Staff <br /> gages should be installed and measurements should be made monthly for purposes of <br /> determining the surface area, storage volume and change in storage of the ponds. <br /> In addition to flow measurement, Union Ditch should also develop the infrastructure <br /> necessary for controlling the distribution of water from the main canal to the recharge <br /> ponds. This may be achieved by a direct surface diversion from the canal through a <br /> headgate or by pumping directly into the pond from the ditch. In the event that a direct <br /> surface diversion is to be used, an existing headgate can be used or a new structure can <br /> be installed. There are a variety of headgates that can be used; some of which only <br /> control water and others which can control and measure water simultaneously. <br /> Aqua Engineering, Inc. Recharge Project Potential <br /> February 17, 2004 - 10- <br />