PROJC01190

• 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: Contract Documents

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Colorado Water Conservation Board

Department of Natural Resources
721 Centennial Building <-I
1313 Sherman Street /_
Denver, Colorado 80203 <J'\-_
Phone: [phone] r..LA:.Jt-t-
fAX: [phone]

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STATE ct COLORADO

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TO:

Colorado Water Conservation Board Members

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Bill Green, P.E.
Project Planning and Construction

Roy Romer
CovernOI
Jtlmes S. lochhenu
Executive Director, DNR
D<lries CUle, P.E.
Dirpctor, CWeB

FROM:

DATE: March 18, 1997

SUBJECT: Agenda Item 12.a., March 20-21,1997 Board Meeting - Water Project
Construction Loan Program - Arklll!sas River Augmentation Loan Account -
LA WMA - Request for Funding - Additional Water Rights Acquisition

INTRODUCTION

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The Lower Arkansas Water Management Association (LA WMA) is requesting release of funds
from the escrow account established from the sale of the X-Y Ranch lands (about $1.1 million)
and approximately $2.23 million in new lending for the purchase of shares in two Arkansas
Valley ditch companies for use in LA WMA's augmentation program on the Arkansas River.

BACKGROUND

LA WMA currently has access to or ownership of sufficient water rights, including the X- Y and
Manvel rights, to offset an average of about 11,800 acre-feet per year of depletions. Feasibility
studies done in 1995 and 1996 indicated that this would result in an estimated average shortfall
in LA WMA's replacement requirement of only about 1,500 acre-feet per year.

Recent discussions with the State Engineer, however, have indicated that LA WMA's replacement
requirements will be more stringent in the future. Helton & Williamsen, LA WMA's engineering
consultant, now estimate that the total replacement requirement may average 18,000 acre.feet per
year.

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In January 1996, the Board approved up to $3,750,000 in Construction Fund financing to
LA WMA for the purchase of the X- Y Ranch and X - Y water rights and for shares in the Manvel
Canal and Irrigation Company. The loan contract with LA WMA is currently in the amount of
$3,714,866 of which about $25,000 was not paid out since it was not required for the
acquisitions. The X- Y Ranch lands were sold by LA WMA for somewhat less than $1.1 million
all of which has been placed in an escrow account (the actual balance of the escrow account is
$1,099,556) as substitute collateral for the loan.