BOARD00103 ‎(2)‎

• Board Meeting Date: 1/23/2007
• Description: CF Section - New Loans - Bull Creek Reservoir, Canal and Power Co. - Reservoir No. 4 Rehabilitation and Enlargement
• Board Meetings - Doc Type: Memo

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STATE OF COLORADO

Colorado Water Conservation Board

Department of Natural Resources
1313 Sherman Street, Room 721
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]
www.cwcb.state.co.us

MEMORANDUM

Bill Ritter, Jr.
Governor

TO:

Colorado Water Conservation Board Members

Kirk Russell, P.E. 'V--6~ A~
Mike Serlet, P.E., Chief
Water Supply Planning an Finance Section

Harris D. Sherman
Executive Director

FROM:

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE: January 16, 2007

SUBJECT: Agenda Item 9b, January 23-24,2007 Board Meeting
Water Supply Planning and Finance Section - New Loans
Bull Creek Reservoir, Canal & Power Company
Reservoir No.4 Rehabilitation & Enlargement

Introductionl

The Bull Creek Reservoir, Canal & Power Company (Company) is applying for a loan in the amount
of $1,200,000 from the CWCB to rehabilitate and enlarge Reservoir No.4. The Company is located
in Mesa Colorado (near Grand Junction) and has a system of canals and reservoir on the north side
of the Grand Mesa. The project is called the Bull Creek Reservoir NO.4 Rehabilitation and
Enlargement Project (Project) and will include the planning, permitting, engineering, and
construction. The total Project cost is estimated at $1,333,000. The Project is necessary to comply
with the requirements of a Stipulation and Agreement with the State Engineers Office (SEa). The
Stipulation, in part, requires the Company to repair Reservoir NO.4 dam to avoid abandonment of
229 acre-feet of restricted storage rights. See attached Project Data Sheet.

The Company received approval of a CWCB loan in September of 2004 for a project which included
the repair of Reservoir No.4 and the enlargement of Reservoirs NO.1 and NO.2. As the project
proceeded, it became apparent that enlarging reservoirs 1 and 2 was not cost effective. In 2006, the
Company decided to change the scope of the project and request a new loan for the repair and
enlargement of Reservoir NO.4 only. This new approach will return the Company's reservoir system
yield to its historic level.

Backaroum!

The Company has operated five reservoirs (Bull Creek Reservoirs 1 through 5) for nearly 100 years.
The water is used for late season irrigation. In 2001 the Division of Water Resources, Division 5 filed
a decennial abandonment list with the water court claiming the abandonment of a portion of the
storage right in Reservoir No.4. The water right listed for abandonment was a result of a SEa filling
restriction placed on the reservoir due to dam safety concerns in 1984. The abandonment list also

Flood Protection. Water Supply Planning and Finance. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning