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<br />I <br />I <br />I <br />I <br />I <br /> <br />Loan Collateral. . <br />There are several possible sources of collateral for the project loan. These <br />include the Company's ownership in the dam embankment structure (i.e., the project <br />itself), the pledge of a stream of assessment revenue, or an assignment of Company <br />shares owned by the shareholders. <br /> <br />I <br /> <br />Ability to ReDav the Loan <br /> <br />I <br />I <br /> <br />There are several methods for evaluating the ability of the Jackson Lake and <br />Reservoir Irrigation Company to repay the CWCB loan. One method is to evaluate the <br />project cost with respect to the reservoir yield. Based on the fifty two years of <br />reservoir storage shown in Figure 2, the average maximum reservoir storage is 34,700 <br />acre-feet, and the average minimum level is 11,300 acre-feet, indicating an average <br />reservoir release of 23.400 acre-feet, including evaporation and seepage losses during <br />the irrigation season. This equates to a long-term average yield of 15.1 acre-feet per <br />share, The net share allocation released from the reservoir to shareholders has <br />historically been 16,0 acre-feet per share. In many years, not all shareholders call for <br />their full allocation of water, which accounts for the long-term average yield being less <br />than the historic per share allocation. The annual loan repayment cost is $57,830, <br />equating to approximately $2.33 per yeat per acre-foot' of water allocated to <br />shareholders. This rate is significantly less than the $25.00 per acre-foot considered by <br />the CWCB staff to be the maximum acceptable cost per acre-foot <br /> <br />I <br />I <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />A second method of evaluating the new financial impact of the project is to <br />compare the potential agricultural productivity and income potential of the land with <br />irrigation water (resurface the dam) and without irrigation water (do nothing and loose <br />the reservoir storage). Without reservoir storage, it is assumed in this evaluation that <br />the land would be cultivated with dry land farming practices. Assume that the full <br />reservoir share allocation of 24,800 acre-feet (16 ac-ft per share X 1,550 shares) is <br />used as the sole irrigation supply for a parcel of land, evaporation and seepage losses <br />are 10 percent of the released water, that water is used with an irrigation efficiency of <br />50 percent, and the crops would require an average consumptive use of irrigation water <br />of about 2.4 acre-feet per acre. Approximately 4,650 acres of land could be fully <br /> <br />42 <br />