PROJ00495

• Contract/PO #: C153678
• 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

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New members shauld be taken inta LAWMA in such a way that daes nat dilute this equity far
present members.

As mentianed, LAWMA has signed an aptian agreement far the purchase .of the histaric
x-V Ranch and assaciated water rights. The tatal purchase price far the land and the
mentianed water rights is appraximately $3.08 millian. LAWMA must pay a $500,000 dawn
payment within 10 days .of Octaber 15, 1995. The remainder .of the purchase price is due
at clasing, which is an .or befare Octaber 15, 1996. If, far any reasan, LAWMA daes nat
clase, the $500,000 dawn payment is refundable.

LAWMA is in the pracess .of securing similar aptian cantracts with the .owners .of the
ather 3 cfs .of the 69 cfs .originally decreed ta the x-V Ditch. LAWMA believes that it can
acquire the additianal x-V water far abaut $51,600, .or $17,200 far each cfs. The timing .of
the payments due under these prapased cantracts will be identical ta that .outlined abave far
the purchase .of the X-V Ranch and water rights. Ta secure aptians ta purchase the remaining
3 cfs, LAWMA will need ta pay a nan-refundable aptian price within the next few weeks.
LAWMA will then be required ta pay, by Octaber 15 .of this year, a dawn payment .of abaut
.one-third afthe tatal cast afthe 3 cfs, .or $17,200. The prapased cantracts require LAWMA
ta pay the remaining amaunt .of the purchase price at c1asing, which is an .or befare Octaber
15, 1996. If LAWMA daes nat clase an the purchase .of this water, the $17,200 dawn
payment maney wauld be fully refunded ta LAWMA.

LA WMA is alsa in the pracess .of negatiating aptian cantracts far the purchase .of the
4,380 .outstanding shares .of the Manvel Canal and Irrigatian Campany that LAWMA daes nat
already awn. LAWMA believes that it can acquire these shares far appraximately $149 a
share, far a tatal purchase price .of appraximately $652,620. Again, the timing .of the
payments due under the cantracts that LAWMA is prapasing far the purchase .of the Manvel
water is identical ta that far the purchases outlined abave. LAWMA will be required to pay
a naminal aptian price within the next few weeks. A refundable dawn payment of a little less
than .one-third .of the total purchase price, .or $45 per share, wauld be due in Octaber of this
year. The remaining amount, .or $104 per share, wauld be due an .or befare the closing date
which is to be on .or befare Octaber 15, 1996.

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