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Upper Platte a Beaver Canal Company Agenda Item 23a <br /> July 2, 2014 <br /> Page 2 of 6 <br /> Background <br /> The Company, located in Morgan County, provides irrigation water to a 9,500-acre service area <br /> composed of irrigated alluvial land situated between the South Platte River and Beaver Creek, <br /> extending from its Platte River diversion headgate just west of the City of Fort Morgan to <br /> approximately 4 miles east of the Town of Brush. <br /> Along with supplying irrigation water to shareholders, the Company operates a recharge plan that <br /> generates recharge credits to replace out-of-priority depletions attributable to well pumping. This <br /> enables pumping of wells for irrigation by the Company's shareholders. The Company has a decreed <br /> recharge plan involving recharge ponds, reaches, and augmentation wells. Currently, the operation of <br /> the recharge plan results in restrictions on well pumping due to the lack of recharge credits and <br /> requires the use of augmentation wells. The Company needs an additional recharge pond and especially <br /> needs a pond at a greater distance to the South Platte River. The three existing recharge sites that <br /> account for more than 85% of the water that the Company recharges (Kemble Reach, Clark Pond and <br /> Kroskob Pond) are all located within one mile of the South Platte River. This proximity results in 62% of <br /> the accretions reaching the river within 5 months and consequently the recharge water is not <br /> sufficiently retimed. <br /> Construction of an additional recharge pond at a greater distance from the river is important for <br /> generating recharge credits of a sufficient volume and proper timing to allow well pumping to provide <br /> a full water supply. <br /> Loan Feasibility Study <br /> John C. Faux, P.E., of TZA Water Engineers in Lakewood, Colorado prepared the Loan Feasibility Study, <br /> titled "Loan Feasibility Study for the Upper Platte and Beaver Canal Company- Hospital Road <br /> Recharge Facility," dated June 2014. The Study was prepared in accordance with CWCB guidelines and <br /> includes preliminary engineering and an engineer's estimate of probable costs used in determination of <br /> total project costs. <br /> Upper Platte and Beaver Canal Company <br /> The Company is a non-profit ditch company incorporated in 1979. There are 96 shareholders and 1187 <br /> shares of stock. The Company is managed by a five-member board of directors. The board has the <br /> authority to set annual assessments to be paid by the shareholders, to take on debt, and the power to <br /> offer shareholders' stock for sale to pay assessments that remain delinquent. <br /> Water Rights <br /> Direct Flow Rights: The Company has direct flow water rights decreed for irrigation use as shown <br /> below. The source of water is the South Platte River. <br /> Priority Appropriation Adjudication Amount <br /> No. Date Date (CFS) <br /> 1 April 20, 1868 November 21, 1895 15.0 <br /> 16 May 15, 1869 April 28, 1883 5.17 <br /> 20 June 20, 1882 November 21, 1895 50.0 <br /> 38 April 15, 1888 November 21, 1895 164.0 <br /> Additionally, the Company owns Storage Rights shares in three reservoirs: Jackson Lake, Riverside <br /> Reservoir, and Prewitt Reservoir. <br />