Laserfiche WebLink
<br />r <br /> <br />", <br />. <br />... . .:~ <br />... <br /> <br /> <br />,~. SALAZAR <br />'''lcomey General <br />BARBARA MCDONNELL . <br />Chief Del'UtY Attorney General <br /> <br />M1CHAEL E. McLACflLAN <br />SolicifOr General <br /> <br />STA~ OF COLORADO <br />· . DEPARTMENT OF LAW' <br />.OmCE OF T.BE 41TORNEYGiNERAL <br /> <br />STATlfSERVICU BUILDING <br />1525 Sherman Street.- 5th Floor <br />Qm'Ver CoIOTldo. 80203- <br />Phone '(3031866-4S00 . <br />FAX (303) 866-SCSgl . <br /> <br />August 24, 1999 <br /> <br />Greg Walcher. Executive Dire~or <br />CQlorado Departme~t of'Natural Resources <br />1313 Sherman St., 7th Floor <br />Denver, CO 80203 <br /> <br />RE: Colorado Water Conservation Board Construction Fund Loan PrOgnim _ <br /> <br />Dear Greg: <br /> <br />. Over the laSt sc'Veral weeks, concerns have been raisecfthat the Colorado Water Conservation Boar-dllas - <br />made loans from the CoristrUc~ion Fund that violated the statute that. governs ~e. CWCB. These concerns have been <br />based upon certain findings in the Report oftbe State Auditor on ~bc CWCB Construction. Fund Loan Program dated <br />Septemb~r 1998 ("Audit''). The Audit, in palt questioned whetheT Article 60 ofTitJe 37, c.R.S. authorizes loans that <br />fInance the purchase of water rightsoi existing wells. Based upon a review o~the appliC!~ble law.! have concluded <br />that the. CWCB acted l&w:fully in making ~OSC lo~. This conclusion does not address the ratioilalcfor the loans <br />but. rather eWCB's legal aUthority to grant them.' - . <br /> <br />. . The CleDeJaI Assembly ~.tedtheCWCB to aid In the pr<>tcct!on tmd de\>e~ of the waton of the State <br />of Colorado. One of the CWCB'sprimary duties is to secure thc'mwmumutiHzation of waters of the State, <br />including Colorado's compact entitlerrie1\ts. ~ 37-60;'106(1), C.R.S...<199B). SeCtion 37..60-119(1). C.R.S. (1998) _ <br />authorizes the CWCB to loan money to enable the construction, rehabilitatior:a. en largemc:nt or improvement of water <br />supply facIUtiesthat, in~e CWCB's opinion,will conseT'\1e, effect more efficient use of, develop; or prote~ the <br />water resources an4 supplies of the State of Colorado. The stated. pUl'pose' of sQ.Ch loans is "to promotp the general <br />welfare and safetyofthe'citizens of this state' and to protect the allocation of interstate waters to the state. . ~." ~ 37- <br />60-119(1). C.R..S. (1998). This. section ~so authorizes loanS for fl09d control and hydroclectric~gy.facilities. . <br /> <br />.~ <br /> <br />. . ." . <br />TheCWCB rec~mmendslow to.theGeneraI Assembly each year in the ConstlUction FUnd 'Blll; which. <br />ideIitities Proposed borrowers and briefly 'describes the proje~ts that. the propl)sed lOW1$ will f'mance. The General <br />: Assembly and the 'Governor have approved ewcs loansOfor the purchase ofwcIls and water rights by enacting <br />Constmctlon Fund Bil l~ 'tbat specificall) and expressly 8"thorized sLlch loans. The four loans questioned in the <br />Audit ate as follows: .. <br /> <br />AriStocrat Ranchettes Water Project, Tnc. --- Purchase Water Shares (S.B. 96- ~ 53), Cfhis loan to a non~pront <br />c~rparationtinaoced the purchase. of approximately 50 acJe-foot units of ColOrado-lUg Thompson Proje~ water <br />. to provide wa.ter.to a prefabricated home development. the Aristocrat RanChette Subdivision located iri Weld <br />County, solving Aristocrat's problem ofa dwindling water supply from Laramie-Fox Hills wells.) <br /> <br />Morg8!l County Quality Water District - NCWCDPipeline project changed to refllUUlCe the purchase oftbe Hay. <br />Gulch Wells (S.B. 96;'153, ame,iu:lingH.B. 95-1155). . (This loan to a ~tc'r district located in Morgan and . <br /> <br />:. <br />