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<br />) <br /> <br />3212 <br /> <br />APPENDIX 2.1 <br /> <br />Colorado Water Supply Offer Details <br /> <br />The apparent purchase price was $2228 per share (Master Contract, 1991, Section 3) with closing <br />within 90 days (Section 28) of the completion of certain conditions (Section 26). The conditions <br />and requirements included: <br /> <br />a. yield of 1.1 acre feet per share of deliverable water. Deliverable water was defined <br />as the minimum annual volume available for delivery and consumption on a <br />constant daily basis assuming the hydrological conditions that existed during the <br />years 1952 through 1957 (a dry period in the Arkansas basin), and is further <br />reduced by water lost to seepage and evaporation in the ditches and reservoirs, <br />water required for wetland maintenance, and losses in water treatment (Section 17) <br /> <br />b, good title supporting ownership of the water right <br />c. a final water court decree granting every request for relief stated in the application <br />including the right to use the water outside the Arkansas basin and no terms that <br />would "materially delay or increase the cost of the project" to CWS; <br />d. receipt of all necessary government permits and authorizations, <br />e. no state or local legislation or court decision that would materially impair CWS use <br />of the water, <br />f. completion of 90% of any required revegetation. <br /> <br />(') <br /> <br />The offer was initially an option to buy until sufficient shares were under contract, with payments <br />to be made as follows: $10 per seller (not per share) paid on signing of the contract; $200,000 to <br />be divided among all sellers after all documents of all sellers are in order (a minimum of 120 days) <br />(Section 4). When enough shares were accumulated, the options would be exercised and the <br />purchase contract take effect. <br /> <br />The purchase price escalated $44 per share per year beginning two years after CWS determined <br />it had enough shares to proceed until final decree, but was not payable during times court appeals <br />were pending (Section 3). Payment of the purchase price was to be: $184.50 per share on <br />beginning revegetation, $100 per share after one year of revegetation, and the remainder at closing <br />(Section 19). The option payments previously paid reduced the payment at closing. The purchase <br />price was also reduced by $275 per acre of irrigated land for revegetation costs (Section 17). <br />Interest was to be paid from the beginning of revegetation until closing (Section 19). <br /> <br />Buyer could terminate the contract for a variety of reasons including: <br />a. violation of the conditions listed above, <br />b, CWS' good faith estimations that revegetation costs would exceed $275 per acre on <br />average, and <br />c. failure to successfully complete revegetation within 2 years (Section 18). <br /> <br /> <br />. ~,:,.' __ '~_'_~_'_~<U"_ <br /> <br /> <br />Sellers did not have rights to terminate the contract. Sellers were required to give up control of <br />their shares during the term of the contract by execution of proxies to CWS. Sellers were also <br />expected to support certain Ft, Lyon Canal Company bylaw changes. <br /> <br />( I <br /> <br />A2-2 <br />