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<br />" . '20 <br /> <br />CWPDA charges all members an assessment of $250 per well per year plus a charge for <br />depletions ranging from $2.70 to $9.20 per acre,foot per year. The costs of the proposal . <br />outlined in this memo, however, will be repaid by the owners of the 16 wells through <br />assessments amounting to $395 per well and $105 per acre-foot of depletion. The cost per <br />acre-foot of water pumped for the 16 wells will be about $109 per year. <br /> <br />Staff believes that the financial feasibility of this proposal depends upon the willingness <br />of the owners of the 16 wells to enter into long-term agreements to repay the loan and to <br />pay the associated costs summarized in Table 1.:Most of the well owners are commercial <br />or institutional water users. <br /> <br />Recommendation <br /> <br />Staff recommends a loan from the Perpetual BaSe Account of the Severance Tax Trust <br />Fund in the amount of $205,000 to the Colorado Water Protective and Development <br />Association to refinance the purchase of the 87.35 shares in the Bessemer Irrigating Ditch <br />Company. The lending rate will be 5,33 percent and the term of the loan will be for 30 <br />years, As collateral for the loan, CWPDA will pledge revenues from assessments and <br />depletion charges as well as the 87.35 shares in ~he Bessemer Ditch. <br /> <br />Staff further recommends the following conditi~ns for loan approval: <br /> <br />I. CWPDA will obtain agreements from each of its members to abide by the Rules and <br />Regulations of the State Engineer's Office for groundwater use in the Arkansas Basin . <br />as well as an agreement to cease pumping in the event of failure to pay membership <br />dues. . <br /> <br />2. CWPDA will obtain additional agreements from the owners of the ]6 wells who will <br />benefit from this loan to guarantee that they will pay the additional assessments and <br />water costs associated with the purchase of the Bessemer shares. <br /> <br />Attachments <br /> <br />Cc: Dale Baker, CWPDA <br />Steve Witte, Division 2 <br />Ivan Walter, W.W, Wheeler <br />Linda Bassi, AGO <br /> <br />. <br /> <br />4 ' <br />