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maintenance practices are ineffective, expensive, and cause problems to the riparian areas and main stem of the Conejos River. This project would help to eliminate those problems, providing distinct benefits to water quality and fishery, streambank stability, riparian habitat, and the safety of downstream recreational activities. An important benefit of this project is to significantly reduce the dependence of Sanford Canal irrigators on the use of ell y extending the District's Whole-River strategy — installing upgraded diversion structures and control systems; equipping Y q pping this small Company with telemetry; and integrating modern water management practices — irrigators will significantly reduce the high utility costs of pumping and help meet the Rio Grande Basin's objective of sustainably balancing the use of surface and ground water. This project adds approximately 3,000 acres to the Conejos River strategy of SWSI-inspired and forward-looking water management efficiency. As technology and communication are brought in, Sanford irrigators will finally gain some ground on the painful effects of mistaken stream flow forecasts and excessive curtailments. With this system, Colorado benefits by keeping as much water as possible in the State, sending only what is required to our downstream Rio Grandee current and long-standing over-delivery to the Rio Grande Compact, caused in part by not knowing where our water is at all times, will be greatly reduced and perhaps brought to a halt. COST/BENEFIT CONSIDERATIONS The high value of this project becomes evident by calculating the cost of the inefficiency in the Sanford system. Year after year, Sanford has been losing approximately 40% of the water that they should be diverting out of the Conejos River, and this loss is direct y attri.utable to the deteriorated condition of its core and diversion structures. If they only get 60% of 107.5 cfs on Priority No. 104, and 60% of 38.8 cfs on Priority No 172, that means that a total of 58.52 cfs of Sanford's water is remaining in the river, potentially overpaying the Rio Grande Compact by that amount. At the conventional price of water per cfs ($135.00), this means Sanford is therefore losing approximately $7,900.00 to the river. Restoring full efficiency to the Sanford diversion represents an excellent return on investment. COLLATERAL The Sanford Canal Company can offer the following collateral for the CWCB loan. 1. The revenue from assessments as allowed by the Company Bylaws and Articles of Incorporation. 2. A certificate of deposit account in the amount of one annual payment to be held by the State Treasurer 3. The project itself, and other Company facilities 18 I Prepared by the Conejos Water Conservancy District, P.O. Box 550, Manassa, CO 81141 Per Contract:Nicole V.Langley,Transforma Research&Design(www.transformagrants.com)