Nov 2010 Deauthorizations

• Loan Projects - Doc Type: Default Information

STATE OF COLORADO
• Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street,Room 721 \.�
Denver,Colorado 80203 H _ C .9 C`
Phone:[phone]
Fax:[phone]
x
www.cwcb.state.co.us . 1876
Bill Ritter,Jr.
Governor
TO: Colorado Water Conservation Board Members
Mike King
DNR Executive Director
FROM: Anna Mauss, P.E.
'
Tim Feehan, P.E., Chief Jennifer L.Gimbel
�
CWCB Director
Finance Section
DATE: November 5, 2010
SUBJECT: Consent Agenda Item 2a,November 15-17,2010 Board Meeting
Finance Section—Loan De-Authorization
Huerfano-Cucharas Irrigation Company — Cucharas Reservoir Rehabilitation
Project
•
Recommendation
Staff recommends the Board approve the de-authorization of the CWCB loan to the Huerfano-Cucharas
Irrigation Company for the Cucharas Reservoir Rehabilitation Project approved at the May 2009 Board
meeting.
Background
The CWCB approved a Severance Tax Trust Fund Perpetual Base Account loan of$1,622,060 in May 2009 for
the Cucharas Reservoir Rehabilitation Project.The Cucharas Reservoir has been restricted by the Office of the
State Engineer(SEO)since 1987.The Huerfano-Cucharas Irrigation Company(Company)planned on restoring
the reservoir to a reduced level of storage(7,500 AF)to avoid a pending breach order from the SEO.
Since the time of the loan approval,the ownership of the Company has changed substantially with 91%of the
shares being sold to one entity.The new owners of the Company have a new vision for the reservoir and intend
to restore it to its full capacity(35,404 AF).
The new owners have applied for a new loan with the CWCB to be heard by the Board at the November 2010
Board meeting. As part of the Loan Feasibility Study and application,the Company requested de-authorization
of the CWCB loan(see attached excerpt from the Loan Feasibility Study).
Since this project is a Small Project Loan(less than$10 million)and it does not require legislative approval,the
Board also has the authority to de-authorize the loan.
Interstate&Federal•Watershed&Flood Protection•Stream&Lake Protection•Finance
Water Information•Water Conservation&Drought Planning•Water Supply Planning