BOARD02084

• Board Meeting Date: 9/13/2004
• Description: CF Section - New Loans - Lower Bauer West Lateral, Inc. - Lower Bauer Reservoir Outlet Pipeline Extensions Project
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Owens
Governor

TO:

Russell George
Executive Director

Colorado Water Conservation Board Members
~IL
Kirk Russell, P.E. ~
MikeSerlet, P.E., Chief 'if
Water Supply Planning an Finance Section

FROM:

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE:

September 7, 2004

SUBJECT: Agenda Item 4b, September 14-15,2004 Board Meeting
Water Supply Planning and Finance Section - New Loans
Lower Bauer West Lateral, Inc.
Lower Bauer Reservoir Outlet Pipeline Extensions Project

Introduction

The Lower Bauer West Lateral, Inc. (Company) is applying for an initial loan in the amount of $195,000
from CWCB to install approximately 2.9 miles of new pipeline in the existing ditch corridor for the Lower
Bauer Reservoir Outlet Pipeline Extensions Project (Project), The Project will increase ditch efficiency and
reduce salinity impacts in the Colorado River. The total Project cost, including engineering and
construction, is estimated at $253,500. The Company will receive in-kind engineering services and a grant
from NRCS for 75 percent of the final construction cost. NRCS funds will be disbursed to the Company
upon completion of the project. The remaining 25 percent of the construction cost will become a 30-year
CWCB loan, not to exceed $48,750. See attached Project Data Sheet.

Backaround

The Company is located in Montezuma County near the Town of Mancos, approximately 30 miles west
of Durango. The Company owns, maintains and manages the two irrigations laterals (Laterals) located
west of the Lower Bauer Reservoir, also known as Bauer Reservoir No.2, (Reservoir) for the benefit of
all sixteen (16) members as an association of owners with water rights and lands served by the
Laterals. The western most lateral carries a total flow of 4.9 cis, and the southerly lateral carries a total
flow of 3.4 cis and delivers irrigation water to the members from the Reservoir. The Reservoir is owned
and operated by the Bauer Lakes Water Company (BLWC). All members of the Company are
shareholders of the BLWC.

The Mancos Valley was added to the USDAlNRCS Colorado River Basin (CRB) Salinity Control
Program. NRCS is administering the Program and providing construction cost sharing and technical
assistance using the USDA's Environmental Quality Incentives Program (EQIP). Timothy Ouellette of

Flood Protection. Water Supply Plarming and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning