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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ARKANSAS GROUNDWATER USERS ASSOCIATION
Office 719-462-5140 101 North Park - Box 7 - Manzanola CO 81058 Fax [phone]

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.une 4, 2002

Colorado Water
Conservation Board
1313 Sherman Street, Room 721
Denver, CO 80203

RECEIVED
JUL 1 1 2002

Subject: Loan Contract No. C153808

CoI/,l1'lldo WalGf
('(jnS6rvation Board

The Arkansas Groundwater Users Association has acquired a loan with the CWCB for purchase of 1007 shares
in the Excelsior Irrigating Company in March of 1998. According to the Amended Rules and Regulations
governing the diversion and use of tributary ground water in the Arkansas River Basin in Colorado, Rule 6
states the following:

A water right, other than imported waters or other fully consumable water, which has not been decreed for
augmentation use may be used as augmentation water in a plan approved by the state and division engineers
pursuant to these Rules; however, as a condition to approval of a plan, the state and division engineers may
require the well user or plan proponent to file an application for change of water right and obtain a decree
approving the use of the water right for augmentation use within a reasonable period of time. In no case,
however, shall a water right, other than imported waters or other fully consumable waters, which has not been
decreed for augmentation use be used as a permanent source of augmentation water for more than 10 years in
a plan approved by the state and division engineers pursuant to these Rules.

A:v e started using credits toward augmentation in our 1996 augmentation plan. We must then go to water court
~thin the ten years allowed in order to change the shares of our decree of the Excelsior Irrigating Company to
augmentation. Estimates of engineering and attorney fees will cost approximately $100,000 to $150,000,
depending on circumstances.

High engineering costs this year have put a burden on the AGUA due to the drought. We have had to re work
our plan for augmentation several times due to high pumping and not enough water in the system. Members
have been cut back twice already this year. Now we are amending our plan for the last time. We have had
unexpected expenSes due to the costs of AGUA's president, C. R. (Dick) Evans and engineer, Mark McLean, to
go to Pasadena California for depositions in the Colorado V Kansas case in July. The AGUA Board of
Directors is asking that the CWCB defer our payments for our Excelsior water right of$25,550.33 for the next
four years in order for us to work on changing our decree in water court. We will then add those years to the
end of the note, thus extending the note to another four years.

This would greatly help our goal in changing the water right for our augmentation plan and serve our members
better. Please call me anytime at 719-462-5140.

Sincerely,

?~~g;;-tfy~

Jeanette Bryan
.anager