BOARD01811

• Board Meeting Date: 5/11/1998
• Description: Rio Grande Basin Issues - Closed Basin Project Issues
• Board Meetings - Doc Type: Memo

2.2

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The State and Box Spnngs shall not oppose, but rather shall support and reasonably

cooperate with HCWUA in seeking approval of, funding by the CWCB for HCWUA, including but

not limited to approval thereof by the Colorado General Assembly and Governor, in an amount no
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less than $825,000, payable at an initial annual interest rate of no greater than 2% and an effective

annual interest rate of no greater than 3% over the life of the loan, payable over a term of no less than

i 40 years.
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2,3 , Cooperation by Box Springs under paragraph 2.2 hereof shall include testimony by

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Box Springs representatives and the preparation of a feasibility study, at Box Springs' expense, to

support the application for funds and to demonstrate that there is sufficient collateral for the CWCB

loan, Otherwise, in providing cooperation, Box Springs shall not be obligated to provide financial

assistance or to expend money for legal or engineering services, , unless Box Springs chooses to do

so,

3.0 PURCHASE OF SENIOR WATER RIGHTS

3,1 Upon satisfaction of all contingencies in paragraph 6,1 and subject to adjustment of

the amount pursuant to Section 7,0 hereof, HCWUA shall purchase, and the Shareholders shall

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convey to HCWUA, 40 c.f.s. out of the water right decreed to Box Springs Canal No, 1, for'60 cubic

feet of water per second of time, with an appropriation date of October 24, 1899, and an adjudication

date of August 30, 1922, as adjudicated in the District Court 'for the County of Bent and the State

of Colorado, for $520,000, If the State advises HCWUA that a greater portion of such water right

is required to permit the pumping of the HCWUA Wells without curtailment under the Arkansas

Rules, or if the Water Court ultimately so rules, then the Shareholders shall convey so much of the

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