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<br />e <br /> <br />Agenda Item 22, <br />March 10, 1998 <br /> <br />Page 3 <br /> <br />expense, to defend Colorado's interest concerning the South Platte River Compact, This has <br />resulted in significant savings of State funds and personnel resources, <br /> <br />. GASP has an ongoing program of acquisition of water rights, As of October 31, 1997 GASP <br />held $1.3 million in water rights (valued at cost.) Total assets amount to $1.86 million, while <br />liabilities were less than $30K. As a result, GASP can offer excellent collateral for a CWCB <br />loan; collateral valued in excess of the loan amount, This loan will be less risky for the <br />CWCB, possibly justifying a lower interest rate, <br /> <br />. The South Platte River Compact is a matter of State interest and responsibility, In spite of <br />this, GASP and its membership is willing to take sole responsibility for repayment of a loan <br />for a project intended solely to help meet Colorado's obligations under the compact, <br /> <br />If the CWCB approved a 4O-year loan with a rate of 1.5% for the first 10 years, and 3% for <br />the remaining 30 years, the cost per acre-foot per year would be $32.42 for the first 10 years <br />and between $38 and $48 for the remaining 30 years. These loan tenns would improve the <br />rmancial feasibility of the project to acceptable level, wbiIe resulting in a return to the <br />CWCB roughly equivalent to a 4O-year loan at 2.65%. <br /> <br />e GASP has 1440 members and a total of 3050 wells. The annual cost of debt service, per well, <br />would be in the range of $23 to $35, <br /> <br />Colorado's compact with Nebraska calls for 120 cfs to be delivered across the State line at <br />Julesburg during the irrigation season, A 2200 acre-foot reservoir would have satisfied the <br />compact for an average of an additional 24 days per year, based on the past 30 years of actual <br />record ' <br /> <br />Colorado's average annual compact shortfall is about 10,000 acre-feet, and the maximum <br />shortfall is about 30,000 acre-feet. <br /> <br />COLLATERAL <br /> <br />GASP receives assessments from its members, The CWCB will take a security interest in this <br />stream of income, <br /> <br />GASP owns water rights conservatively valued at $1.3 million, and other assets valued at about <br />$350K, These assets can be generally classified as having moderate liquidity, and could provide <br />additional security for the loan. <br /> <br />- <br /> <br />GASP will own the Sedgwick Reservoir project at a cost of $1.7 million, The project (and the <br />junior water rights associated with it) would be classified as having low liquidity, but would <br />provide additional security for the loan, <br />