BOARD00360

• Board Meeting Date: 11/16/2004
• Description: CF Section - New Loans - Buffalo Farms Water Development, LLC - Groundwater Recharge Project
• Board Meetings - Doc Type: Memo

.--:
,

.

.

.

STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: (303) 866-M41
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

TO:

Colorado Water Conservation Board Members

Bruce Johnson, P.E. ~'~.
Mike Serlet, P.E., Chief
Water Supply Planning and Fi ance Section

Dan McAuliffe
Deputy Director

Russell George
Executive Director

FROM:

Rod Kuharich
eweB Director

DATE:

November 5, 2004

SUBJECT: Agenda Item 14b, November 16-17, 2004 Board Meeting
Water Supply Planning and Finance Section - New Loans
Buffalo Farms Water Development, LLC - Groundwater Recharge
Project

Introduction

Buffalo Farms Water Development, LLC (Company) is applyin9 for a $193,500 loan from the
Severance Tax Trust Fund Perpetual Base Account, to enhance and expand an existing groundwater
recharge project for well augmentation. The estimated total cost of the project is $215,000. Please
see the attached Project Data Sheet.

Backaround

The Company is a recently formed entity consisting of neighboring farmers who own and operate a
contiguous group of farms in northeastern Colorado. They are located in Logan County,
approximately 1 1/2 miles southwest of Merino. Even though the proposed project construction lies
on the north side of the South Platte River, the, irrigated acres to be covered by the project are
located on both sides. The Company is a consortium of three ownership groups, each owning a 1/3
interest in the new Company and the proposed recharge project. A 1/3 interest in the project will
be held by D. Kevin Vollmer, and a 1/3 interest held by Michael Goss. The remaining 1/3 interest
will be held by 5 separate entities known collectively as the Merino Properties Group, represented
by Mark A. Kross.

Overall. the farm ground to be covered by the recharge project consists of approximately 1000
acres of sprinkler and flood irrigated land. Some of the ground is irrigated with direct flow water and
some has reservoir water. All of the ground is irrigated with 11 tributary groundwater wells, with
some of the land relying solely on the wells. The water is typically used to irrigate corn, alfalfa,
beans, and wheat.

The 11 wells are currently augmented under the Logan Well Users (LWU) plan of operation, and
produce approximately 800 acre-feet of depletions per year, with approximately 560 acre-feet of
summer time depletions and approximately 240 acre-feet of winter time depletions. The Company

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