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STATE OF COLORADO <br />.���- <br />�_.� <br />�, <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />1313 Sherman Street, Room 721 <br />Denver, Colorado 80203 <br />Phone: (303) 866-3�341 <br />Fax: (303) 866-4474 <br />www.c wcb.state.co. us <br />TO: Colorado Water Conservation Board Members <br />FROM: Anna Mauss, P.E. �n <br />Tim Feehan, P.E., Chief <br />Finance Section <br />DATE: November 5, 2010 <br />Bill Ritter, Jr. <br />Govemor <br />Mike King <br />DNR Executive Director <br />Jennifer L Gimbel <br />CWCB Director <br />SUBJECT: Consent Agenda Item 2a, November 15-17, 2010 Board Meeting <br />Finance Section — Loan De-Authorization <br />Huerfano-Cucharas Irrigation Corapany — Cucharas Reservoir Rehabititation <br />Project <br />RecommendaHon <br />Staff recommends the Board approve the de-authorization of the CWCB loan to the Huerfano-Cucharas <br />Irrigation Company for the Cucharas Reservoir Rehabilitation Project approved at the May 2009 Board <br />meeting. <br />Background <br />The CWCB approved a Severance Tax Trust Fund Perpetual Base Account loan of $1,622,060 in May 2009 for <br />the Cucharas Reservoir Rehabilitarion Project. The Cucharas Reservoir has been resMeted by the Office of the <br />State Engineer (SEO) since 1987. The Huerfano-Cucharas Irrigation Company (Company) planned on restoring <br />the reservoir to a reduced level of storage (7,500 AF) to avoid a pending breach order from the SEO. <br />Since the time of the loan approval, the ownership of the Company has changed substantially with 91 % of the <br />shares being sold to one entity. The new owners of the Company have a new vision for the reservoir and intend <br />to restore it to its full capacity (35,404 AF). <br />The new ownc.�rs have applied for a new loan with the CWCB to be heard by the Board at the November 2010 <br />Board meeting. As part of the Loan Feasibility Study and application, the Company requested de-authorization <br />of the CWCB loan (see attached excerpt from the Loan Feasibility Study). <br />Since this project is a Small Project Loan (less than $10 million) and it does not reyuire legislative appruval, the <br />Board also has the authonty to de-auth�rize th� loan. <br />Interrtate & Federal • Waterxhed & Flood PrMection • Strcam &(,yke Protrction • Finance <br />Water Information • Water ('unrervation & Droughl Planning • W'ater Supply Planniag <br />