BOARD00487

• Board Meeting Date: 5/24/1999
• Description: CF Section - Changes in Existing Loans - Lower Arkansas Water Management Association - Amended Water Rights Purchases
• Board Meetings - Doc Type: Memo

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Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street
Denver, Colorado 80203
Phone, [phone]
FAX, 1303) 866-4474

STATE OF COLORADO

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MEMORANDUM

Bill Owens
Governor

Greg E. Waidler
Executive Director, DNR

Peter H. Evans
Director, C'vVCB

TO:

Colorado Water Conservation Board Members

Mike Serlet, P.E., Chief, Project Planning and Construction oJ 3
Bill Green, P.E., Manager of Planning 15Y 1'/

May 7, 1999

FROM:

DATE:

SUBJECT:

Agenda Item 15 a., May 24-25,1999 Board Meeting - Water Project
Construction Loan Program - Changes in Existing Loans - Lower
Arkansas Water Management Association - Amended Water Rights
Purchases

Introduction

The Lower Arkansas Water Management Association (LA WMA) is requesting a revision to one
of their existing loan contracts with the Board (Contract No. C 153768) to allow LAWMA to
purchase shares in the Las Animas Consolidated Canal Company. The historic consumptive use
associated with these shares will be used as part of LA WMA's program to offset members' well
pumping depletions in the Lower Arkansas Basin. Please see the attached letter from the
applicant's attorney and the attached schematic diagram showing the relative locations of the
various facilities.

Back!!:round

In May of 1997, the Board approved a loan to LA WMA for the purchase of shares in the
Highland Irrigation Company and in the Fort Bent Ditch Company. In July of 1998, the Board
approved a request by LA WMA to allow the loan proceeds to be used for the purchase of shares
in the Amity Mutual Irrigation Company as well as the Highland and Fort Bent (July 13-14,
1998 Board Meeting, Agenda Item 16a.).

Funds for these acquisitions originated from: (1) a new loan from the Arkansas River
Augmentation Loan Account of up to $2.3 million and (2) the release of moneys in an escrow
account established from the sale of X- Y Ranch lands (about $1.0 million). The loan term is 40
years with an effective rate of return of3.0 percent.

To date, LA WMA has purchased 3,382 Highland shares and is intending to purchase a total of
3,569 shares which will provide LA WMA with additional water and allow the removal of the