PROJ00079

• Contract/PO #: FS0012X
• Contractor Name: New Castle, Town of
• Contract Type: Loan
• Water District: 0
• County: Garfield
• Loan Projects - Doc Type: Feasibility Study

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JUL 28 1995

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Mr. Steve Ripply, Mayor
Town of New Castle
450 West Main
New Castle CO 81647

July 25, 1995

RE: Castle Valley Ranch - Water Rights/Water Resources

Dear Mayor Rippy:

At the request of Mr. Eric Williams, Resource Engineering, Inc. (RESOURCE) conducted
a study of the water rights and water resources which have been dedicated to serve
the Castle Valley Ranch. The purpose of our investigation was to determine if recent
commitments by the Town of New Castle would negatively impact the Town's ability
to fulfill its commitment to provide water service to Castle Valley Ranch.

Two issues of concern are; 1) legal supply and 2) physical supply.

LEGAL SUPPLY

In Case No. 87CW373 the Town and Mr. Eric Williams jointly filed a water rights
application and plan for augmentation in Division 5 Water Court. The case was
decreed in 1991 (copy attached). The joint application was filed pursuant to the
Annexation Agreement for Castle Valley Ranch dated July 11, 1993. The plan calls
for Castle Valley Ranch to obtain its water supply from the Town's water system under
the Town's existing water rights. The New Castle Water Works System and Pipeline
diverts out of East Elk Cr~ek and carries two municipal water rights which are as
follows: 1) 2.67 cfs adjudicated in Civil Action 1058 on May 29, 1904 with an
appropriation date of September 6, 1889 and 2) 10.00 cfs adjudicated in Case No.
81 CW477 on October 18, 1982 with ari appropriation date of December 23, 1981
(paragraphs 4a. and 4b, page 2 of the decree).

In exchange for a water supply for Castle Valley Ranch, Eric Williams promised to
dedicate water rights and dry-up credit under the Coryell Ditch and Red Rock Ditch
associated with the historic irrigation of 333 acres of the Ranch (paragraphs 5a.
through 5e., pages 3,4 and 5 of the decree).

The augmentation plan provides for the development of up to 3300 EOR.- An EOR is
described as a single family dwelling unit with 2,500 square feet of irrigated lawn and
garden. The first 1,400 EOR will be augmented using the Coryell Ditch water rights
which includes the senior water right on East Elk Creek. The remaining development
will be augmented using the Red Rock Ditch water rights and will require the
implementation of the New Castle Augmentation Station, a conditional water right out
of the Colorado River obtained in 87CW373. The purpose of the New Castle
Augmentation Station is' to pump water from the Colorado River to the Ware and Hinds
Ditch to satisfy a call by the Ware and Hinds against the Red Rock Ditch water rights.

I Consulting Engineers and Hydrologist-s
909 Colorado Avenue. Glenwood Springs. CO 81601 . [phone] . Fax [phone]