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s~ <br /> <br />AGENCY NAME: Water Conservation Board <br />AGENCY NUMBER: PDA <br />ROUTING NUMBER: <br />$750,000 <br />LOAN CONTRACT AND PROMISSORY NOTE <br />THIS CONTRACT is made this ~ day of October, 1995, by and between the State of Colorado <br />for the use and benefit of the Department of Natural Resources (Colorado Water Conservation Board), <br />hereinafter referred to as the State, and The Lower Arkansas Water Management Association (LAWMAI, <br />P.O. Box 1161, Lamar, CO 81052, hereinafter referred to as the Borrower/Contractor. <br />FACTUAL RECITALS <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 No. 424, <br />Organization YYYY, Appropriation ARA, Program WTRC, Object Code 5120, Contract Encumbrance <br />Number C153706. <br />2. Required approval, clearance and coordination have been accomplished from and with <br />appropriate agencies. <br />3. Pursuant to the provisions of § 37-60-130, Colorado Revised Statutes, the State is authorized <br />to loan money for the purchase of augmentation water or the rights to such water to replace out of priority <br />depletions to surface water rights and to prevent material depletions of useable stateline flows in violation <br />of the Arkansas River Compact. <br />4. The Borrower is a duly constituted non-profit corporation formed under § 31-24-1 et. seq., <br />Colorado Revised Statutes (1967 Supp.), in the State of Colorado, for the primary purpose of providing <br />replacement water to its members. <br />5. The Borrower has completed a feasibility study conducted by Helton and Williamsen, P.C., <br />entitled "Augmentation Program for the Lower Arkansas Water Management Association" and completed <br />in Juty 1995. The feasibility study formulates a replacement program that would allow the Borrower's <br />members to continue to use wells that draw water from aquifers tributary to the Arkansas River. Said <br />replacement program is referred to herein as the Project. <br />6. The Borrower has made application to the State for a loan to secure option agreements for the <br />purchase of replacement water as contemplated in the feasibility study. <br />7. The Borrower has entered into an option contract and purchase agreement for the purchase <br />of the X-Y Ranch and associated water rights; such option agreement is hereinafter referred to as the "X-Y <br />Ranch Option Agreement." <br />Page 1 of 8 LOWER ARKANSAS WATER MANAGEMENT ASSOC. LOAN CONTRACT <br />