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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lower 7.5 miles of the ditch thus saving considerable operating and maintenance expense. None ..
of the Amity or Fort Bent shares have yet been acquired. The amount remaining under the ..
contract is $424,416.

Table 1 surnntarizes the LA WMA water rights acquisitions financed or proposed to be financed
by CWCB loans. Some values in the table are estimates.

Table 1. Water Rights Financed or Proposed to be Financed with CWCB Loans

Purchase Cost Avg. Annual Cost per Ac-Ft
Cons. Use of Cons. Use
(Ac-Ft per
Year)
X-YCanal $1,937,440 4,000 $484
Manvel Canal and Irrig. Co. $651,394 1,372 $475
Highland Irrig. Co. $3,134,268 4,640 $675
Las Animas Conso!. Canal $103,950 154 $675
Amity Mutual Irrig. Co. $78,000 122 $640
Fort Bent Ditch Co. $50,000 74 $675
Total/Average $5,955,052 10,362 $604

Discussion of Las Animas Canal Shares Acauisition

As mentioned above, LA WMA will continue in its efforts to acquire most of the shares in the
Highland Irrigation Company. Two of the remaining shareholders in the ditch are willing to sell
a total of 187 shares. One of these individuals owns 167 Highland shares and eight shares in the
Las Animas Consolidated Canal Company (LACC), all of which he would like to dispose of as a
condition of sale to LA WMA. The second individual is willing to trade 20 shares in the Highland
for one share in the LACC.

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LA WMA would like to acquire the eight LACC shares to trade one LACC share for 20 Highland
shares and to use the other seven shares in their replacement program. As estimated by
LA WMA's engineering consultant, Helton & Williamsen, the average annual yield per share for
the LACC is 22 acre-feet. Details of the proposed additional water rights purchases are
summarized in Tables 2 and 3.

Table 2. Proposed LA WMA Water Rights Acquisitions, Costs

Item No. of Shares Cost
Highland Irrigation Co. 167 $141,950
Highland Irrigation Co. 20 Trade
Las Animas Conso!. Canal Co. 8 $118,800
Amity Mutual Irrig. Co. 98 $78,000
Fort Bent Ditch Co. 100 $50,000
Total N/A $388,700

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