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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 />to the commercial hog producer. A more detailed description of the project is attached to this <br /> <br />report in the settlement agreement and the CWCB loan application. <br /> <br />A plan for augmentation has been decreed by the Division 2 Water Court. <br /> <br />Water Rights and Water Availability <br /> <br />As discussed above, the rights to be purchased for augmentation purposes under this project are <br /> <br /> <br />decreed to Box Springs Canal No.1. Other senior water rights to be compensated are those of the <br /> <br />Reid Cattle Company, Smith Cattle, Inc., and the HCWUA. <br /> <br />Established Value of the Water Right <br /> <br />The 2 cfs portion of a 60 cfs water right decreed to Box Springs Canal No. I, to be purchased by <br />Preisser using the CWCB loan funds, is the senior right in the Horse Creek basin. The CWCB <br />loan funds are to be used for augmentation of specific wells and water rights and specified lands <br />of Preisser's, as described in the settlement agreement (copy attached). <br /> <br />A different portion of the same Box Springs senior water right, a 40 cfs portion purchased in <br />1997 by the Horse Creek Water Users Association, is being used for augmentation of HCWUA <br />members' junior wells scattered throughout the basin. The value of the HCWUA portion of the <br />Box Springs water right was discussed in an engineering report by Wheeler & Associates (1997). <br /> <br />The 2 cfs portion of the Box Springs water right to be used for augmentation by Preisser will <br /> <br /> <br />allow him to consumptively use up to 550 ac-ftIyr for any of the uses for which the specified <br /> <br /> <br />wells are currently decreed, as stated in the settlement agreement. Therefore, the value of the <br /> <br /> <br />Box Springs water right is equal to the value of 550 ac-ftlyr for any of Preisser's decreed uses, as <br /> <br /> <br />compared to the value of the subject lands, wells and water rights assuming that the agreement <br /> <br />HRS WATER CONSULTANTS, INC. <br /> <br />page 9 <br />