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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 />SECTIDNONE <br /> <br />IntroducUon <br /> <br />The Colorado State Engineer's Office (Division 2) placed a zero storage restriction on Black <br />Hills Reservoir (Dam ill 190114) on October 26, 1998 after seepage and piping were observed <br />in the area ofthe outlet works. URS Greiner Woodward Clyde (URSGWC) was contracted by <br />Model Land and Irrigation Company (Company) to develop rehabilitation concepts for the repair <br />of Black Hills Reservoir Dam, also known as Model Dam. The scope of work included <br />investigation of the dam in the vicinity of the outlet works, repair alternatives for the outlet <br />works, rehabilitation of the upstream facing concrete, general recommendations for dam <br />modifications and rehabilitation, and a construction cost estimate for the repair and rehabilitation <br />work. <br /> <br />In May 1999, a flood overtopped a temporary diversion berm causing significant damage at the <br />dam site and some damage to land owners and structures downstream. The scope of work was <br />later broadened to include the development of a Colorado Water Conservation Board (CWCB) <br />feasibility report to assist the Company in obtaining partial funding for the emergency repair of <br />the Black Hills Reservoir Dam. <br /> <br />The Company's operations are materially and adversely impacted by its current inability to store <br />water in the reservoir. Subsequent to the flooding in May 1999 and the resulting damage to the <br />dam, it is important to the Company to restore their ability to store water in the Black Hills <br />Reservoir. The reservoir serves the following purposes for the Company and its shareholders: <br /> <br />1. The reservoir is operated as an equalizing reservoir for management of water diverted from <br />the Purgatoire River. Diverted water takes almost three days to flow from the Purgatoire <br />River to the end ofthe Model Ditch. The reservoir allows for more efficient and accurate <br />adjustments of water deliveries than is possible without the reservoir. For example, the <br />reservoir allows the Company to regulate (reduce or increase) deliveries of water for <br />irrigation without making changes of the amount of water actually diverted from the <br />Purgatoire River. <br /> <br />2. The reservoir attenuates storm runoff that would othelWise flow into the Model Ditch and <br />cause operational problems. The reservoir also protects the Model Ditch from being <br />overtopped at times when runoff from precipitation exceeds the capacity of the ditch. <br /> <br />3. The reservoir stores water diverted from the Purgatoire River under the April 14, 1965, <br />conditional priority to provide additional water supplies to the irrigated lands. <br /> <br />Without the use of the reservoir, the Company and its shareholders will be forced to reduce the <br />amount of land irrigated under the Company system because of lost storage and reduced <br />efficiency in water management. In addition, the yield of some crops will also be reduced or <br />irrigation water wasted, without the ability to regulate releases from Black Hills Reservoir Dam. <br />For example, in 1999 the shareholders reduced the amount of irrigated acreage by about 4,118 <br />acres, or approximately 67 percent of all lands serviced by the Company's system, because water <br />could not be stored in the reservoir. <br /> <br />URS Breiner Woodward Clyde <br /> <br />6800044333.OOIR2.doc 1131100(3:18 PM)/PROJECTS 1-1 <br />