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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />COLLATERAL <br /> <br />The Leroux Creek Water Users Association can offer the following collateral for the CWCB loan, <br /> <br />1. The revenue from assessments as allowed by the Company By-Laws <br />and Articles of Incorporation. <br />2. The physical structure and land that comprise the site of the <br />reservoir. <br />3. The water rights for Carl Smith Reservoir. <br /> <br />IMPLEMENTATION SCHEDULE <br /> <br />The following schedule is proposed for implementation of the project: <br /> <br />Task <br /> <br />Target Completion Date <br /> <br />1. <br />2. <br />3. <br />4, <br />5, <br />6. <br />7. <br /> <br />Feasibility Study <br />Design <br />SEO Design Review <br />Bid <br />Award Bid <br />Start Construction <br />Project Complete <br /> <br />lfllf99 <br />4/lf99 <br />5fl5/99 <br />4/ lf99 <br />5/lf99 <br />5fl5/99 <br />8fl5/99 <br /> <br />PERMITTING <br /> <br />We do not anticipate any 404 perrruttmg required to rehabilitate the dam to its current <br />configuration. If the dam were to be enIarged, a 404 permit may be required. We will be <br />contacting Terry McKee of the Corp of Engineers in Colorado Springs to determine the need for <br />any 404 permits. <br /> <br />There is U.S. Forrest Service land adjacent to the reservoir and any rebuilding or work adjacent <br />to or on Forrest Service land will require interaction with the Forrest Service. AnyenIargement <br />of the reservoir would require a Special Use Permit from the Forrest Service and will require an <br />Environmental Assessment (EA) be conducted, <br /> <br />For the option chosen, we do not anticipate the need for an "Environmental Assessment" or any <br />"Special Use"permits, <br /> <br />Carl Smith Dam Feasibility <br /> <br />Page 34 <br />