PROJ00091

• Contract/PO #: C153706
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Feasibility Study

.

-~

..

CI5~) 706
STA~F COLORADO

Colorado Water Conservation Board
Department of Natural Resources

721 State Centennial Building
1313 Sherman Street
Denver. Colorado 80203
Phone [phone]
FAX [phone]

o

Roy Romer
Governor

Augus1 18, 1995

James S. Lochhead
Executive Director, DNR

Daties C Ule. P.E.
Director. CWCB

Mr. Donald F. Higbee, Manager
Lower Arkansas Water Management Association
18525 U.S. HWY 50
Lamar, Colorado 81052

Re: Application for Construction Fund Loan

Dear Mr. Higbee:

I am pleased to inform you that at its July 25, 1995 meeting, the Colorado Water
Conservation Board (CWCB)authorized the CWCB staff to enter into contract negotiations
with the Lower Arkansas Water Management Association (LA WMA) for a loan not to exceed
$750,000 for the purpose of securing option agreements on the following:

(I) the X-Y Ranch with 66.0 cubic feet per second (cfs) of surface water rights, 15
alluvial wells and approximately 3,000 acres of presently irrigated land,

(2) An additional 3.0 cfs of X- Y surface rights, and

(3) 4,380 shares of the Manvel Canal and Irrigation Company.

The Board's approval of the loan is subject to the following conditions:

(a) This loan shall in no way commit the Board to provide any further financing for
the proposed project,

(b) Before monies are released by the State from an escrow account established for the
option payments, LA WMA will fully meet all requirements of the authorizing
legislation for the Arkansas River Augmentation Loan Account as specified in C.R.S.
37-60-130.

(c) Before requesting long-term financing, LA WMA will provide the CWCB staff with
sufficient documentation and analyses in order that the Board can make a final
determination of feasibility.