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<br />Guenzi Farms <br />May 24-27, 2004 <br /> <br />,. <br />Agenda Item 21a .. <br /> <br />approximately 1510 acre-feet of summer-time depletions and approximately 960 acre-feet of winter- . <br />time depletions, for a total of 2470 acre-feet per year. <br /> <br />The Guenzis would like to control and develop a recharge system that will generate augmentation <br />water to be used to offset the depletions. By controlling and generating their own augmentation the <br />Guenzis can strengthen their own coverage and help strengthen the LWU. The Guenzis recently <br />purchased the 450-acre Hettinger Farm, about 1'h miles east of the Town of Merino for $775,000. <br />The farm includes an existing hillside recharge site (three 120-day ponds) that has historically been <br />fed by the Pawnee Ditch, and in 2003 recharged 1136 acre-feet. The existing project will be <br />enhanced by the installation of a pump and pipeline from the South Platte River, rather than rely <br />solely on ditch diversions. The CWCB loan will cover only that portion of the farm purchase <br />occupied by the existing recharge pondS (100 acres of pasture with the 3 pond areas) with a value <br />of $112,000, with the remainder of the farm purchase handled by a loan from Premier Farm Credit <br />in Sterling. <br /> <br />Feasibilitv Studies <br /> <br />Brent M. Nation, P,E. of Fort Morgan has completed the feasibility study in accordance with CWCB <br />guidelines. The study includes an assessment of alternatives to generate augmentation water for <br />Guenzi Farms. <br /> <br />Guenzi Farms <br /> <br />Ken, Dave and John Guenzi are applyinq for the CWCB loan as individuals, ami wOlJld hA jointly <br />and severally liable for the loan repayment. The Guenzi family has been farming in the area since <br />1943. All of their land is held in joint or individual ownership, with their farming operations <br />conducted by Guenzi Farms, Inc" a Colorado corporation formed in 1991. <br /> <br />. <br /> <br />Water Riahts <br /> <br />The Guenzis currently have decrees on the 31 wells used for irrigating their farms. These wells are <br />augmented through LWU. The Guenzi's also own the following water rights: <br /> <br />- 11.5 shares Pawnee Ditch Company <br />- 21.0 shares Sterling Irrigation Company <br />- 192.9 Acre-Feet Prewitt Reservoir - Logan District <br /> <br />The proposed 2 recharge wells will require a new water right which has been obtained. This new <br />water right will be for a maximum of 12 cfs with an average annual yield of 2000 acre feet. <br /> <br />Proiect DescriDtion <br /> <br />A range of alternalives were considered on how to generate an augmentation supply for the <br />Guenzis including: <br /> <br />1. The no-build alternative, continue to rely on LWU for augmentation. <br />2. Purchase a senior water right for augmentation. <br />3. Purchase a farm with existing recharge ponds and expand their recharge capacity. <br /> <br />Alternative 1, No-build alternative, continue to rely on LWU for augmentation - If a project . <br />were not pursued, the Guenzis would continue to solely rely upon LWU for augmentation. As the <br />current drought continues, LWU is in the process of developing a curtailment policy based partly on <br /> <br />Page 2 of 6 <br />