BOARD00936

• Board Meeting Date: 1/25/2005
• Description: CWCB Director's Report
• Board Meetings - Doc Type: Memo

reliability of the Company's system, and for providing additional storage to meet future demands. The project will .
involve the construction of3 separate reservoirs near the Town of Bamesville, Colorado, totaling 4,500 acre-feet of
storage. Additionally, 8,200 linear feet of pipeline will be installed in construction with the reservoirs. Smith
Geotechnical, Fort Collins, Colorado is the project designer. The Bamesville Reservoir project was awarded to
Barker Construction, Fort Collins, Colorado and is anticipated to be complete by May of 2005. The pump station
to Bamesville .Reservoir is currently out to bid.

15. Arkansas Groundwater Users Association - Water Rights/Augmentation/Canal Work
Authorization: Construction Fund County: Pueblo
Water Source: Arkansas River Project Yield: 703 Acre-feet
Terms of Loan: $970,448 @2.50% for 30-years Project Type: Water Rights/Canal

This project involves the purchase of 785 shares of Excelsior Ditch for replacement water to offset out-of-priority
depletions from well pumping. The project also involves the construction of a 15-acre recharge pond and enlarging
the Excelsior Ditch for approximately 4 miles. The ditch work has been completed and the construction of the
recharge ponds is approximately 95% complete. The entire project is anticipated to be operational by March of
2004.

16. Orphan Wells of Wiggins - Augmentation Project
Authorization: Construction Fund County: Morgan
Water Source: South Platte Basin Project Yield: 6,000 acre-feet
Terms of Loan: $1,037,700 @ 2,5% for 30-years Project Type: Well Augmentation

The Orphan Wells of Wiggins is a new company comprised of31 separate agricultural operators that own 45 wells
which irrigated approximately 4500 acres of farmland. This project involves the construction of 1 recharge well, 1
augmentation well, various pipeline, and 23 recharge ponds. The project will generate augmentation credits to cover
the depletions for the 45 existing wells. The project is currently under construction and is anticipated to be complete
by February of2005.

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17. Johnson and Edwards Ditch Company - Augmentation Project
Authorization: Construction Fund County: Morgan/Washington
Water Source: South Platte Basin Project Yield: 8,900 acre-feet
Terms of Loan: $132,500@2.5% for 30-years Project Type: Well Augmentation

The Johnson and Edwards Ditch Company operate the Johnson and Edwards Ditch to delivery irrigation water to a
3,000-acre service area. This project involves the construction of 1 recharge well, pipeline installation, 2 recharge
ponds, and the purchase of reservoir water. This project will generate sufficient augmentation credits to cover the
Company's depletions from the 12 wells they are currently operating. The project is currently under construction and
is anticipated to be complete by May of2005.

18. Central Colorado Water Conservancy District - Water Rights Purchase and Gravel Pit Canst.
Authorization: Construction Fund County: Adams, Weld, Morgan
Water Source: South Platte Project Yield: 22,260 acre-feet
Terms of Loan: $40,000,000 @2.75% for 30-years Project Type: Water Supply/Augmentation

The CCWCD, located in Adams, Weld, and Morgan Counties has a service area of 300 square miles. The
Subdistrict has 650 members with 966 junior wells and has operated an augmentation plan for these member since
1973. On December 17, 2001, the Colorado Supreme Court issued a judgment that changed the manner of
operation for substitute supply plans in Colorado, The ruling stated that the State Engineer did not have the legal .
authority to approve substitute supply plans. The Court also stated that substitute supply plans, such as the one
operated by CCWCD would either have to file for a decree in Water Court or follow new Rules and Regulations to
be issued by the State Engineer. This ruling has required CCWCD to acquire more senior water rights as well as