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<br />AGENCY NAME: Water Conservation Board
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<br />AGENCY NUMBER: PDA
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<br />ROUTING NUMBER:
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<br />$ 590,590
<br />LOAN CONTRACT
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<br />THIS CONTRACT, made this 24 ~ day of February 1998, by and between the State of
<br />Colorado for the use and benefit of the Department of Natural Resources, Colorado Water Conservation
<br />Board (CWCB), hereinafter referred to as the STATE, and the Arkansas Groundwater Users
<br />Association (AGUA), 100 West 1'" Manzanola, co 81058, hereinafter referred to as the BORROWER
<br />and/or CONTRACTOR.
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<br />FACTUAL RECITALS
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<br />1. Authority exists in the law, and funds have been budgeted, appropriated and otherwise made
<br />available and a sufficient unencumbered balance thereof remains available for payment in Fund
<br />Number 424, Organization VYYY, Appropriation ARA, GBL A808, Program WTRC, Object Code
<br />5120, Reporting Category: 3808, Contract Encurnbrance Number C153808.
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<br />2. Required approval, clearance, and coordination have been accomplished from and with appropriate
<br />agencies.
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<br />3. Pursuant to the provisions of.S 37-60-130, C.R.S, (1997), the STATE is authorized to expend up to
<br />$3,500,000 from the Arkansas River Augmentation Loan Account for the purpose of making loans to
<br />organizations for the purchase of augmentation water to replace out-of-priority depletions to surface
<br />water rights and to prevent material depletions of usable stateline flows in violation of the Arkansas
<br />River Compact, provided that the borrower me~ts certain criteria set forth at 9 37-60-130(3), C.R.S.
<br />(1997).
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<br />4. The BORROWER is a duly constituted Colorado non-profit corporation located in Otero County and
<br />formed under and govemed by Articles 20 to 29 of Title 7, C.R.S. (1997) for the purpose of protecting
<br />and developing the surface and underground Waters of the State of Colorado in the Arkansas River
<br />Basin.
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<br />5. The BORROWER has applied to the STATE for a loan to be used for the purchase of 1,007 shares of
<br />stock of the Excelsior Irrigating Company ("Shares") at a cost of up to $650,000, hereinafter referred
<br />to as PROJECT, to be used as part of the BORROWER'S augmentation plan to offset a portion of the
<br />depletions resulting from well pumping by members of AGUA.
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<br />6, The STATE has reviewed a feasibility report provided by Rocky Mountain Consultants, Inc., of
<br />Longmont, dated August 8, 1997, and, based upon this report, the STATE determined the PROJECT to
<br />be technically and financially feasible,
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<br />7, At its September 22,1997 meeting, the CWCS approved a loan to the BORROWER in an amount not
<br />to exceed $650,000, at an interest rate of 3% per annum, and for a term of 40 years, to finance the
<br />PROJECT, on the condition that the BORROWER'S members ratify the purchase of the Shares by a
<br />majority vo.e,
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<br />Arkansas Groundwater Users Association
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<br />Loan Contract
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