BOARD02639

• Board Meeting Date: 1/25/2005
• Description: CF Section - Design and Construction Status Report
• Board Meetings - Doc Type: Memo

Water Project Construction Loan Program-Project Data

~~. Borrower: Lower Bauer West lateral, Inc.
Project Name: Lower Bauer Res. Outlet Pipeline

County: Montezuma

Drainage Basin: Mancos River

Project Type: Ditch Piping for Salinity Control
Water Source: Chicken Creek (Trib. Mancos R)

Total Project Cost: $253,500

Funding Sources: NRCS, CWCS
Adjudicated Delivery: 951 acre-feet

Type of Borrower: Agricultural

Loan Amount: $48,750 (Initial loan $195,000) Interest Rate: 2.5%

Term: 30 years

The Lower Bauer West Lateral, Inc. (Company) is a non-profit corporation registered in the State of
Colorado in 2004. The Company owns and operates the west outlet lateral from Reservoir NO.2.
The Company is proposing to use NRCS assistance to install 15,500 feet of pipe to reduce water
loss and produce working pressure for irrigation uses. Members of the Company own shares of
water in the Bauer Lakes Water Company (BLWC). BLWC owns Res. No.2, which delivers water to
the Company at the measuring device near the outlet. This project will place new pipe In the
existing ditch, which carries approximately 951 acre-feet of water to the 1200-acre service area.
NRCS will provide design and fund 75 percent of the construction cost of the Project as part of the
NRCS Salinity Control Project in the Mancos Valley. Funding for the Project consists of an initial
loan from CWCS for $195,000 that will be reduced to $48,750 after construction is complete and
NRCS provides a $146,250 grant

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LOCATION MAP