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<br />~lll~rIa. jIlittb. anlJ l\e~erb.r Q[ompanp <br />1321 2900 Road Hotchkiss, CO 81419 <br />phone I Fax (970) 872 - 3586 <br /> <br />..; <br /> <br />RECEIVED <br />SEP 25 1996. <br /> <br />September 13, 1996 <br /> <br />Colorado Wet'" <br />Conserva~on Board <br /> <br />Colorado Water Conservation Board <br />Daries C, Ule, Director <br />1313 Sherman Street <br />Denver, CO 80203 <br /> <br />Dear Board Members: <br /> <br />As you know, the Overland Ditch and Reservoir Company asked for, and <br />received a deferment of payment (contract #C153307) in 1994, The reason the <br />Company asked for that deferment was to off-set losses suffered by the shareholders <br />due to a dry year and the release of a bypass flow to the U.S. Forest Service. As we <br />stated then, while the bypass flow is always damaging to the Company, it is <br />devastating in dry years. It hurts us in two ways on dry years. First, the water that is <br />bypassed during the winter causes our re~rvoir to fill very late. We are then forced to <br />operate the ditch below capacity for ten to twenty days while we are waiting for it to fill. <br />Of course, the r~lease during the draw-down also lessens the amount of water we <br />have available, lowering the flows and shortening the season. The shareholders of <br />the Overland have suffered the same losses in 1996 as they incurred in 1994. Again it . <br />has been the Combined effect of the dry conditions and the bypass. Adding to the <br />problems are tRe record low cattle prices and freeze losses to the orchard owners. <br />Also, the Company is attempting to rectify the bypass flow issue, and has filed suit <br />against the U.S. Forest Service. This action has created a huge litigation expense. All <br />of the above conditions have created a greater economic strain on the Overland <br />Shareholders than they were under in 1994. Therefore, at the September 4th, 1996 <br />meeting, the Overland Board of Directors voted unanimously to ask the CWCB for a <br />deferment of its December 1996 loan payment. This letter constitutes the Overland's <br />respectful request to the CWCB for this d$ferment. <br />Additionally, the Overland Board, i$ asking the CWeB for assistance in our <br />lawsuit against the Forest Service. The litigation is moving more quickly than <br />anticipated, which we feel is to our advantage. However, this is also causing our legal <br />expenses to mount more quickly. Any financial assistance the CWCB could provide <br />would be greatly appreciated. <br />We are enclosing information regarding the suit. If you have questions or need <br />more information about the deferment request or the lawsuit, please feel free to <br />contact us. <br /> <br />Sif)cerely, <br />~~ /4. - <br />Peter Kasper, President <br /> <br />. <br /> <br />c.c. Eric Kuhn, Ray Werner, Bill Stanton <br />