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<br />Union Ditch Company
<br />March 16,17, 2004
<br />
<br />Agenda Item 251
<br />
<br />UDC develop 50 AF of developed storage capacity for replacement water, Three alternatives to
<br />providing for well augmentation water were considered:
<br />
<br />1, The no-action alternative,
<br />2, Purchase, acquire, and/or make use of existing water rights or irrigated land dry-up options,
<br />3, Develop a recharge project including the acquisition of a new junior water right.
<br />
<br />Alternative 1, No-action alterative - was not selected because UDC chooses to develop their own
<br />augmentation plan to provide replacement water to shareholders that make use of tributary wells, If
<br />UDC were not to develop an augmentation plan, well owners would have to: (1) discontinue well
<br />usage, (2) join other existing augmentation plans, or (3) develop individual augmentation plans,
<br />
<br />Alternative 2, Purchase, acquire, and/or make use of existing water rights or irrigated land
<br />dry-up options - was not exclusively selected because the cost of acquiring or purchasing
<br />alternative water sources is particularly high in the South Platte River basin, UDC has decided to
<br />make use of water rights that they currently own (5,75 shares of Union Reservoir), has leased some
<br />water in the short-term (for the substitute water supply plan), and has applied for a change in use of
<br />the Union Ditch shares with the option to temporarily dry-up irrigated land,
<br />
<br />Alternative 3, Develop a recharge project including the acquisition of a new junior water right
<br />- was selected, since it is considered to be the least costly approach to developing augmentation
<br />water, This alternative was also viewed as an added value to the Company, which benefits the
<br />shareholders in general, and the well users in particular.
<br />
<br />Selected Alternative 3, Develop a recharge project including the acquisition of a new junior
<br />water right involves the development of several recharge structures in the Union Ditch service
<br />area, Of the ten potential recharge locations, three have been identified as priority sites and are
<br />listed as follows with the top priority site listed first:
<br />
<br />1, Mecure #1 Site
<br />2, R. Alles Site
<br />3, J, Alles Site
<br />
<br />UDC plans to initially develop the Mecure #1 site in 2004 to provide 20 AF of the required 50 AF of
<br />storage, With the operational experience gained from the site, the final site selections for the other
<br />two recharge structures will be made, including possible enlargement of the Mecure #1 Site, These
<br />would be completed in 2005 providing the additional 30 AF of storage, UDC feels that a project of
<br />this type requires some flexibility to respond to experience gained through initial operations, The
<br />ponds will be filled by water that is diverted from the Union Ditch, either directly through new or
<br />existing headgates by gravity flow; or water may be pumped directly from the ditch. Construction
<br />will include pond excavation, flow measurement structures (flumes on feeder canals or meters for
<br />pumps), headgate structures for feeder canals, and monitoring and reporting measurement
<br />equipment (SCADA), The ponds will be relatively shallow in depth (< 10 feet).
<br />
<br />The Total Project cost is as follows:
<br />1, Mecure #1 Site - Construction
<br />2, R. Alles Site - Construction
<br />3, J, Alles Site - Construction
<br />4, Construction Contingency (7,5%)
<br />5, Engineering Fees
<br />
<br />$ 81,000
<br />111,000
<br />111,000
<br />23,000
<br />18,000
<br />$ 344,000
<br />
<br />TOTAL
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<br />Page 3 of 6
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