BOARD00373

• Board Meeting Date: 11/23/1998
• Description: CF Section - New Loans - Sterling Irrigation Company
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
Department of Natural Resources
721 Centennial Building
, 313 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLOMDO

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MEMORANDUM

Roy Romer
Covemor
James S. Lochhead
Executive Director, ONR
Oaries C. lile, RE.
Director, CWeB
Peter H. Evans
Acting Director, eweB

TO:

Colorado Water Conservation Board Members

FROM:

Bill Stanton and John Van Sciver

DATE:

.November 18,1998

SUBJECT:

Agenda Item 24b, November 23-24,1998 Board Meeting
Sterling Irrigation Company

Introduction
The Sterling Irrigation Company (SIC) is applying to the Board for a loan of $318,583 to rehabilitate the
Company's diversion structnre and headgate on the South Plalle River. The estimated cost of the project is
$353,981. Please see the attached project summary and map,

Backl!:round
The SIC, located in Logan County, operates the Sterling No. I ditch for the benefit of the shareholders by
providing irrigation water through an existing diversion and ditch system. The diversion and headgate are in
poor condition and could fail completely during a flood. If this were to occur, the SIC would be unable to
deliver water to its shareholders (average annual diversions are 23,562 acre-feet.) The SIC wants to
rehabilitate the diversion and headgate structnre.

Feasibility Studies
The SIC retained Jack Odor P,E., of GAS.P., to conduct a feasibility study, The study was completed
November 1998 and includes an assessment of alternatives available for rehabilitation of the river diversion.
Half of the cost of the study was paid by a $1,400 grant from the CWCB.

The Sterlinl!: Irril!:ation ComDanv
The SIC is a mutual ditch company and a non-profit corporation registered in the State of Colorado. There
are 88 shareholders and 1,290 shares of stock. The SIC has the power to set annual assessments to be paid.
by the shareholders, the power to cut off water deliveries to shareholders that fail to pay their assessments,
and the power to offer stock for sale to pay back assessments. The SIC delivers water to a 7,400 acre
service area located in the vicinity of the Town of Sterling.

Water Ril!:hts
The Company's water rights consist of an 1894 decree for 113.9 cubic feet per second from the South
Plalle River under the name Sterling Irrigation Company Ditch I, Records of the State Engineer's Office
indicate that the average annual diversion was 23,563 acre-feet for the years 1950 to 1997,