C150159 Change Approval Letter

• Contract/PO #: C150159
• Contract/PO #: CT2017-1209
• Contractor Name: Orphan Wells of Wiggins
• Contract Type: Loan
• Loan Projects - Doc Type: Approval Letter

DNR COLORADO 1313 Sherman Street John Hickenlooper, Governor
Denver, CO 80203
CO Colorado Water Mike King, DNR Executive Director
Conservation Board P [phone]
Department of Natural Resources F(303) 866-4474 James Eklund, CWCB Director
TO: Colorado Water Conservation Board Members
FROM: Kirk Russell, P.E., Finance Section Chief v�
DATE: January 25-26, 2016 Board Meeting (Updated January 27, 2016)
AGENDA ITEM: 19b. Change to Existing Loans
Orphan Wells of Wiggins - Collateral Change
Introduction
Orphan Wells of Wiggins, LLC (Company) was originally approved for a loan in November 2003 (Loan
Contract C150159) to construct a groundwater recharge augmentation system, consisting of one recharge
well, one augmentation well, five miles of pipeline, and various recharge ponds (Project). The Project was
substantially completed on March 1, 2011 and the Company made their first annual payment on March 1,
2012.
At the July 2011 CWCB Board meeting, the Board approved a reduction in the interest charges incurred by
the Company by $56,872.44. At that time, the Company agreed to use five shares of Riverside Reservoir
stock and one share of Jackson Lake Reservoir Share as collateral. Prior to CWCB amending the loan
contract, the Company sold the remaining shares and is now requesting the Board change its original
collateral requirement and allow the Company to use the cash from the sate to fund water court efforts
and the installation of additional pipe and augmentation ponds. Staff has requested that the Project
components, including approximately five miles of pipe, pumps and wells, as security for the loan. This is
collateral is consistent with most CWCB loans of this type. The Pledge of Assessment Revenues backed by
an assessment covenant will remain in place.
Staff Recommendation (Board approved Staff Recommendation on January 26, 2016)
Staff recommends that the Board approve an amendment to the Orphan Wells of Wiggin's LLC 's Loan
Contract C150159 changing the collateral from five shares of Riverside Reservoir stock and one share of
Jackson Lake Reservoir to the Project components including the pipeline, pumps, and wells constructed
with the CWCB funds. The amended contract amount will be established as the loan balance at the time of
the contract amendment (approximately $615,220.28) and an annual payment of $36,961.30.
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