BOARD01870

• Board Meeting Date: 5/23/2005
• Description: CF Section - New Project Loans Sheek Ditch Company - Pipeline Construction Project
• Board Meetings - Doc Type: Memo

,

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 Owens
Govemor

TO:

FROM:

Colorado Water Conservation Board Members

./1,1'--
Kirk Russell, P.E. \'-"'"" ~'
Mike Serlet, P.E., Chief '--tt~
Water Supply Planning an Finance Section

Russell George
Executive Director

Rod Kuharich
CWCB Director

Dan McAuliffe
Deputy Director

DATE: May 16, 2005

SUBJECT: Agenda Item 15b, May 24-25,2005 Board Meeting
Water Supply Planning and Finance Section - New Project Loans
Sheek Ditch Company - Pipeline Construction Project

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Introduction

The Sheek Ditch Company (Company) is applying for an initial loan in the amount of $427,200 from
CWCB to install approximately 3.8 miles of new pipeline in the existing ditch corridor for the Sheek Ditch
Pipeline Project (Project). The Project will increase ditch efficiency and reduce salinity impacts in the
Colorado River. The total Project cost, including engineering and construction, is estimated at $427,200.
The Company is eligible to receive in-kind engineering services and a grant from NRCS for 75 percent of
the final construction cost (construction cost estimate is $356,000), to be disbursed to the Company upon
completion of the Project. The remaining project cost will become a 3D-year CWCB loan, not to exceed
$160,200. See attached Project Data Sheet.

Backaround

The Company is located in Montezuma County near the To~n of Mancos, approximate!y',~Ol1li!e~ W!,!st.~ ' ..,.
of Durango. The Company niariagesthe'SheeHjitch (DitCh) for the benefit of all seventeen (17) ,
members as an association of owners with water rights and lands served by the Ditch. The 19,000-foot
Ditch is a carriage ditch with a total flow of 9.3 cfs, and delivers irrigation water from the Mancos River
to the 520-acre service area via diversion structure #565. The Project will provide an improved water
delivery system to all members. The water is primarily used for cattle ranching and to grow hay.

The Mancos Valley was added to the USDAlNRCS Colorado River Basin (CRB) Salinity Control
Program. NRCS is administering the Program and providing construction cost sharing and technical
assistance using the USDA's Environmental Quality Incentives Program (EQIP). Timothy Ouellette of
the NRCS, Cortez Service Center is managing the planning, design, and field engineering services for
this Project. In addition, the Mancos Conservation District has provided local assistance by providing
informational brochures, funding coordination, project management and legal counsel for this project
and several others in the Mancos Valley. Qualifying agriculture producers that install more "efficient
irrigation systems, which reduce salt loadings" may be eligible for funding by the EQIP.

Flood Protection. Water Supply Pl.a.nning and FinanCe. Stream and Lake Protection
Water Supply Protection. Conservation and Drought Planning