CT2015-165 Collateral Change Approval

• Contract/PO #: CT2015-165
• Contract/PO #: C150240
• Contractor Name: Bull Creek Reservoir, Canal, and Power Company
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

Bull Creek Reservoir, Canal Et Power Company Agenda Item 24a
September 15-17,2015 Board Meeting(Updated September 18, 2015)
Page 3 of 4
Water Rights
The Bull Creek Reservoirs hold the senior storage rights on Bull Creek and tributaries to Bull Creek.
Many of the senior rights on the Creek are also owned and used by shareholders of the Company. Other
senior water rights of significance are irrigation rights owned by the Grand Valley Irrigation Company
on the Colorado River near Palisade. However, these senior rights seldom need to place a call during
winter and spring snowmelt when the reservoirs fill. The table below shows a summary of existing
reservoir capacities and water rights owned by the Company.
Table 1: Reservoir Storage Water Rights Summary
Name Amount Appropriation Adjudication Water Court
(AF) Date Date Case No.
Bull Creek No. 1 92.06 6/18/1895 8/16/1920 CA 3681
Bull Creek No. 2 75.6 6/18/1895 8/16/1920 CA 3681
Bull Creek No. 3 57.94 6/18/1895 8/16/1920 CA 3681
Bull Creek No. 4 156.26 11/18/1901 8/16/1920 CA 3681
156.43 10/1/1930 7/21/1959 CA 8303
112.31 8/22/2006 9/20/2008 14CW1303
Bull Creek No. 5 92.3 11/18/1901 8/16/1920 CA3681
124.42 8/15/1938 7/21/1959 CA 8303
25.42 7/22/1959 10/21/2008 06CW262
Total Volume 892.74
Original Project Description
The Company had a storage restriction placed on Reservoir#4 in 1984 by the State Engineer's Office,
Dam Safety Branch. This Project removed the restriction and enlarged the reservoir from 313AF to
425AF. Reservoir#4 is located at 10,000 feet elevation on US Forest Service property, which required a
Special Use Permit for an access roadway and dam construction. The Project took three construction
seasons and the original contractor was replaced after the second construction season. The Project was
completed in the fall of 2010 and had its first official full fill in the spring of 2011.
Financial Analysis
The Company's loan terms are an interest rate of 2.5% per annum and a repayment period of 30 years.
TABLE 2: Financial Summary
Contracted Total Loan Amount $1,801,360
Annual Loan Payment $94,081.68
Annual Loan Obligation (Years 2016-2040) $103,489.85
Current Reserves Fund Balance $36,700
Number of Shares 500
Annual Loan Obligation per Share $207
2015 Assessment per Share $250/share