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"hj Lower Platte and Beaver Canal Company January 27-28,2004 Agenda Item 14a. Water Riahts . The LPBCC has an 1882 priority for 38 cfs, an 1888 priority for 284 cfs, and a 1972 recharge/augmentation priority for 322 cfs. In addition, the LPBCC has 127 rights of Riverside Reservoir and Land Company and 33 shares of Jackson Lake water. The Company has also applied for a 2003 recharge/augmentation right for 322 cfs. Annual ditch diversions have averaged 36,980 acre-feet. The 101 wells under the ditch divert approximately 15,000 acre-feet annually. Proiect DescriDtion Three alternatives were analyzed in the feasibility study: 1. The no-action alternative 2. Purchase a senior water right and use it for augmentation ($1 million) 3. Construct a well augmentation and ground water recharge project. ($345,000) Alternative 2, Purchase a senior water right and use it for augmentation ($1 million), was ruled out due to cost. Alternative 3, Construct a well augmentation and ground water recharge project ($345,000), was the preferred alternative, since it was the least overall cost to provide the augmentation water needed to offset well depletions. The no-act/on alternative was considered unacceptable since it does not provide a firm source of augmentation water for all 101 irrigation wells, and could result in curtailment of well pumping, and major loss of crops under the LPBCC system. Selected Alternative 3 involves the following: . One recharge well (3000 GPM) will be constructed within 100 feet of the South Platte River. Water will be pumped into a recharge pond (Snyder Site). . . Buried pipeline will be used to connect the recharge well and the Snyder recharge pond. There will be 4500 feet of 21" pipe and 2000 feet of 18" pipe. . Two parcels of land will be purchased for the construction of recharge ponds. One site will be 7 acres (Snyder Site) and the other site will be 25 acres. · Three existing recharge ponds will have concrete ditch turnouts and measuring weirs constructed. . 24 recharge ponds will have pre-manufactured parshall flumes installed for measuring water. 24 recorders will also be installed at these sites. . New well permits will be obtained on 24 different agricultural wells so that the wells may also be used for augmentation purposes. The implementation schedule calls for completion of financing arrangements and final engineering design in Winter 2003-2004. Construction is underway and will be completed in Spring 2004. Financial Analvsis The total estimated cost of the project is $345,000, and the shareholders use the water primarily for agricultural purposes. The Company has requested a 2.5%, 30-year Small Project loan in amount of $310,500 (90% of estimated project cost.) (NOTE: agricultural interests own . 2