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Lake Durango Water Authority PO Box 657 Durango, CO 81302 May 24, 2017 Peg Mason Colorado Water Conservation Board Contracts Manager, Water Project Loan Section 1313 Sherman St., Room 721 Denver, CO 80203 Re: Loan Contract C150317 Request for Extension. Dear Ms. Mason, Please consider this request to extend CWCB Loan Contract C150317 until January 31, 2019. To date$200,500.24 of loan funds and $41,066.31 of grant funds have been utilized for the purchase of Animas La Plata Project water and to provide the infrastructure to deliver raw water from Lake Nighthorse to Lake Durango Reservoir. There are several factors which have contributed to delays in completion of the project. Preliminary project design was not completed until October 2015 due to design considerations required by project partners La Plata West Water Authority,Southern Ute and Ute Mountain Ute Indian Tribes. Responses to the initial bid requests were substantially above the project budget requiring project redesign which was completed in May 2016.The contract for pipeline construction was awarded to Canyon Construction in August 2016 however construction could not begin until September when the Licensing Agreement with the Bureau of Reclamation (BOR) was finalized.There were additional delays due to disparities between survey and prescriptive easement locations.The ground did not freeze due to the wet and warm winter of 2016/2017 further delaying construction progress and nesting bald eagles near the pipeline route put a portion of the project on hold this spring. Finally the BOR required a second section 106 consultation with related Indian Tribes before approving a blasting plan for rock removal along the pipeline route. To date the project has been designed and Environmental Assessment completed.The road to Lake Nighthorse has been completed to grade, over 1000'of 30" pipe have installed, the bore and installation of 16" pipe under County Road 210 has been completed, and a portion of 8" pipe has been installed at Lake Durango. Additionally 50 acre-feet depletion of ALP Project water was purchased from the Animas La Plata Water Conservancy District.