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to be filled from the Upper Platte and Beaver Canal under the Company's 1972 augmentation decree. Brent Nation, Nation Engineering Services, Fort Morgan, Colorado, is the project engineer. The project commenced construction in the fall of 2003 and is 95 % complete. Project completion is scheduled for September of 2005. 4. Stromberger Land and Cattle Company LLC - Augmentation Recharge Authorization: $414,000 Water Source: South Platte Basin Terms of Loan: $414,000 @2.50% for 20-years County: Logan Project Yield: 5,000 acre-feet Project Type: Well Augmentation The Stromberger Land and Cattle Company operates a family ranch located 15 miles south of Sterling, Colorado. The ranch currently operates 12 wells that are augmented under the Groundwater Appropriators of the South Platte (GASP). GASP operates on a year -to-year basis with no guarantee of continued coverage. The current drought conditions have brought to the foreground the difficulty of providing augmentation for well users. The Stromberger's project will provide its own augmentation water to protect itself against possible curtailment by GASP. Construction activities include drilling 6 wells to pump water to a series of constructed recharge ponds have been completed. The Stromberger's were approved for a $59,000 loan increase at the May, 2005 Board Meeting. Project substantial completion is awaiting amendment of the loan contract, which is anticipated to be completed by September of 2005. 5. Grand Mesa Reservoir Company - Rehabilitation of Reservoir No.1 and No.9 Authorization: Construction Fund Water Source: Gunnison Terms of Loan: $200,000@ 2.4% for 20-years County: Mesa Project Yield: 1,000 Acre-Feet Project Type: Reservoir Rehabilitation The Grand Mesa Reservoir Company operates 6 reservoirs on the Grand Mesa to supply water to 16 shareholders for the irrigation of 500 acres. This project involves the replacement of the outlet structures at each reservoir and also addresses seepage problems at each facility. The project was designed by the City of Grand Junction, one of the major shareholders, and is currently being constructed by the City of Grand Junction. The outlet structures have been installed and the seepage problem corrected at both reservoir locations. The City of Grand Junction is draining the two reservoirs to install the new outlet gates. Project is anticipated to be complete after the winter snows melt in June/July of 2005, with substantial completion scheduled for October of 2005 6. Guenzi Farms. Inc. - Well Augmentation Proiect Authorization: Severance Tax Fund Water Source: South Platte River Terms of Loan: $331,425 @ 2.5% for 30-years 54 County: Logan Project Yield: 2,000 acre-feet Project Type: Well Augmentation