BOARD00245

• Board Meeting Date: 9/19/1991
• Description: Agenda or Table of Contents, Minutes, Memos
• Board Meetings - Doc Type: Meeting

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COLORADO WATER CONSERVATION BOARD
Department of Natural Resources
721 State Centennial Building
1313 Sherman Street
Denver, Colorado 80203
Phone: [phone]

STATE OF COLOMDC
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Roy Romer
Governor
David w. Walker
Olre<:lor

May 13, 1991

Mr. Arthur Newman, General Partner
Lloyd Ranch Limited Partnership
3216 E. Spruce St.
Seattle, WA 98122

Subject: Rehabilitation Project on Rapid Creek Reservoir
Nos. 1 & 2

Dear Mr.Newman:

Please be advised that your April 15, 1991 letter to me did
not properly respond to question no. 4 in my April 1, 1991 letter
to you on the subject matter. Specifically, you did not explain by
what authority you could collect additional funds from the Limited
Partnership (LP) in the event that the operating expenses exceeded
the revenues in a given year. This matter has a great bearing on
our approval of a loan to the LP.

In addition, we are concerned about the "cloud" on your water
rights for this project. I refer specifically to paragraph III A
of the Disclosure Certificate in Case No. 88CW303, District Court,
Water Di vision 5, Colorado which states as a disputed issue
"Whether the Applicant has put in place and used the water. rights
and if these water rights are where applicant has indicated in the
applications". It appears to us that if you received an adverse
ruling in this case that it could affect your required storage
capacity in Rapid Creek Reservoirs Nos. 1 & 2.

In conjunction with the proposed project we have been told by
the State Engineer's Office (SEO) that the plans and specifications
for Reservoir No. 1 have been submitted for review, but as of this
date they have not been approved. The SEO further informs us that
nothing has been submitted for review on Reservoir No.~ at this
time. Under these circumstances I might suggest that the LP
proceed on the rehabilitation of Reservoir No. 1 without benefit of

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