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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 />Due to the deteriorating conditions, the <br />owner is concerned with the possibility of future <br />restrictions and the possibility of having to <br />breach the dam in the future. Based on the <br />present condition of the dam and its rate of <br />deterioration, we believe the dam has useful life <br />of less than 5 years unless major repairs are <br />undertaken. We also believe that over the next <br />few years the state Engineer will continue to <br />restrict the storage height. Further restrictions <br />will greatly hinder North poudre's ability to <br />provide water to their shareholders east of the <br />reservoir. At the current restrictions, <br />irrigation of certain sections is difficul t at <br />best. <br />Without repair of this reservoir, the North <br />Poudre Irrigation. Company is faced with loss of <br />water rights associated with the reservoir; is <br />faced with the potential for failure of the <br />reservoir; and mllY be in a situation where they <br />can no 10nger serve the 68 shareholders downstream <br />of Clark Lake. Tnese are the main reasons for the <br />need to rehabilitate Clark Lake, not the need to <br />increase their storage of water in this part of <br />their system. <br /> <br />V-3 <br />