BOARD00235

• Board Meeting Date: 7/23/2002
• Description: CF Section - Changes in Existing Loans Arkansas Groundwater Users Association - Loan Payment Deferral Request
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

Bill Owens
Governor

MEMORANDUM

Greg E. Walcher
Executive Director

TO:

Colorado Water Conservation Board Members

Mike Serlet, P.E., Chief ptj
Water Supply Planning and Finance Section

Rod Kuharich
CWCB Director

FROM:

Dan McAuliffe
Deputy Director

DATE:

July 12, 2002

SUBJECT:

Agenda Item 17a - July 23-24, 2002, Board Meeting
Water Supply Planning and Finance - Changes in Existing Loans
Arkansas Groundwater Users Association - Loan Payment Deferral Request

Introduction

By letter dated June 4, 2002 (attached), the Board of Directors of the Arkansas Groundwater
Users Association (AGUA) has requested a deferment of their CWCB Construction Fund loan
payment. AGUA's $25,550.33 loan payment for Contract #C-153808 is due April I of each year.
The purpose for this request is to help offset the District's financial difficulty due to this year's
drought conditions and approximately $100,000 to $150,000 in legal and engineering expenses to be
incurred related to the State Engineer's tributary groundwater rules and regulations of the Arkansas
River basin.

Background

In 1995, the General Assembly passed HB 95-1155 that established the Arkansas River
Augmentation Loan Account in the Construction Fund. The purpose of the account is to make loans
. to organizations, or entities, for the purchase of augmentation water, or the rights to such water, to
replace out of priority surface water right depletions and to prevent material depletions of usable
state-line flows in violation of the Arkansas River compact.

The Board has authorized two loans from the Arkansas River Augmentation Loan Account to
AGUA for the purposes outlined in the enabling legislation. As part of the State Engineer's Rules,

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning