PROJC00871

• Contract/PO #: C153800
• Contractor Name: Arkansas Groundwater Users Association
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Bill Number: ARA
• Loan Projects - Doc Type: Contract Documents

ROCKY MOUNTAIN CONSULTANTS. INC.

RECEIVED
MAR 0 7 1997

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ColoradO water
COnse.....tian Board

Premiere Building
825 Delowore Ave.. Suite 500
Langmant. CO 8050 t
(303) 7i2.5282
Metro [phone]
FAX [phone]
E~moil [e-mail]

March 6, 1997

Mr. William E. Green, P.E.
Colorado Water Conservation Board
1313 Sheiman Street, Room 72 r
Denver, Colorado 80203

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Re: Proposal for AGUA Feasibility Study for the Purchase of Water Rights

Dear Bill:

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This letter presents a revised proposal (attached) from the Arkansas Groundwater Users Association
(AGUA) to conduct an investigation into the feasibility of purchasing water rights for use as
permanent augmentation water in AGUA's ArkanSllS River replacement plan. During the 1996 plan
year (April 1996 through March 1997) AGUA relied upon leased water from the City of Aurora, the
Board of Water Works of Pueblo, and the Southeastern Colorado Water Conservation District.
AGUA desires to own a portfolio of water rights which can be used for augmentation and is seeking
a loan from the Arkansas River i!:.ugmentation Loan Account to help finance the purchase.

To date AGUA has been approached by three individuals with water rights to sell. Mr. Dick Evans
(President of AGUA) is interested in selling a portion of his ownership of Excelsior Ditch shares,
Mr. Robert Norris (an AGUA member) owns the Robinson Ditch on Fountain Creek that he is
interested in selling, and Mr. Bruce Kroeker (with Ted Zorich and Associates) represents an
individual who is interested in selling shares of the Fountain Mutual Ditch and possibly part of the
Liston and Love Ditch and Lock Ditch. As these have been offered, AGUA proposes to perform an
evaluation of the feasibility of purchasing these rights, but at this time does not propose to actively
search for other rights to purchase. I believe that we agreed earlier this month that AGUA's
approach to the feasibility study and subsequent CWCB loan would be as follows:

I) AGUA will evaluate the specific water rights which have already been offered for purchase,
and would request a specific loan amount from the CWCB for the purchase of all or part of
those rights according to the results of the feasibility investigation.

2) In the feasibility study AGUA will describe its total future augmentation needs and how
much of that need will be provided by the rights identified as feasible for purchase.

3) At such future time as additional sources are identified for purchase, AGUA will return to
the CWCB with additional feasibility work on those sources and request additional funding
for their purchase.

Appendix A to Loan Contract C-153800

CIVIL AND ENVIRONMENTAL ENGINEERING . PLANNING