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Lowline Ditch Company, Inc. <br /> • C/O Fetzer & Company This document is incorporated <br /> P.O. Box 1111 into the contract by reference. <br /> Sterling, CO 80751 <br /> (970) 522-1015 <br /> June 22, 2005 <br /> Mr. Mike Serlet, PE <br /> Colorado Water Conservation Board <br /> 1580 Logan Street, Suite 750 <br /> Denver, CO 80203 <br /> REF: AGRICULTURAL EMERGENCY DROUGHT GRANT APPLICATION <br /> Dear Mike: <br /> This letter and the enclosed information is in support of the Lowline Ditch Company Inc. <br /> (Lowline) request for funding for years 2003 and 2004 through Colorado's Agricultural <br /> Emergency Drought Response Grant. Lowline Ditch Company was formed on August 14, 1884 as <br /> a Mutual Ditch Company to deliver direct flow water to shareholders and then in 2003 the Lowline <br /> applied for a Augmentation plan and recharge water right to replace depletions from shareholder <br /> wells to allow its members to continue to use their wells(16 wells total--I4 irrigation, 1 dedicated <br /> augmentation, and 1 feedlot) by complying with Colorado state laws and regulations. Lowline is <br /> incorporated under the Colorado Revised Nonprofit Corporation Act as evidenced by receipt from <br /> the Colorado Secretary of State. Lowline has filed Form 1024 with the U.S. Internal Revenue <br /> Service for recognition of tax exemption under Section 501(a) as a 501(c)(12)Mutual Ditch <br /> Company and has been excepted by the IRS. <br /> The specific purpose of Lowlines' water court filing is the development, adjudication and <br /> continued operation of a plan of augmentation for its member wells. Member wells are monitored, <br /> depletions to the river are computed and assessments levied. These assessments are utilized to <br /> lease replacement water supplies and pay the attorney and engineering costs associated with <br /> obtaining Substitute Water Supply Plans from the State Engineer and the final Water Court <br /> approved Augmentation Plan. Lowline's Augmentation Plan Case No. 03-CW-094 is set for trial <br /> in Water Division 1 District Water Court beginning January 2007. <br /> A three person Board of Directors governs Lowline. The current Board Members are as follows: <br /> Donald Schell, President <br /> Adrian Kaiser, Vice President <br /> Steve Kaiser, Secretary <br /> For years 2003 and 2004, Lowline has operated under a Colorado State Engineer approved <br /> Substitute Water Supply Plan. Lowline fully augmented the out-of-priority depletions to the river <br /> • as required by the State and Division Engineer. The replacement supplies consisted of leasing <br />