TURV.BB - Two Rivers Water Company has purchased the majority interest in the Huerfano-Cucharas Irrigation Company
Monday, January 18, 2010
Author: Two Rivers Water Company
Corporate name: Two Rivers Water Company
Public or Private: Public
Web Site: http://www.2riverswater.com
Contact info: firstname.lastname@example.org
Address: 2000 S Colorado Blvd, Suite 200, Denver, CO 80222
Key Executives: John McKowen, John Stroh
- Publicly traded American company in the business of acquiring, developing and distributing water in the state of Colorado.
- Two Rivers Water Company ("the Company"), (OTC Bulletin Board symbol:TURV) has purchased the majority interest in the Huerfano-Cucharas Irrigation Company ("HCIC". HCIC owns one of Colorado?s largest privately held on stream reservoirs, the Cucharas Reservoir, approximately 55,000 acre feet storage capacity, with associated direct flow and mutual ditch distribution system that has easements that connect to the Arkansas River.
- The Company will re-build the Cucharas dam ditch system back to their full capacity. The existing dam was damaged by flood in 1987, restricting capacity to 10,600 acre-feet and the maintenance on the ditch system has been deferred for decades. All permits are \"grandfathered\" and not subject to the normal permitting time and expense required of new projects.
- The Huerfano-Cucharas river basin is a 1,400 sq mile natural drainage basin that produces on a mean average basis approximately 100,000 acre feet of water each year from the nearby Sangre de Cristo mountain range. The HCIC water rights and most other basin water rights are considered separate and non-callable by Arkansas River water users. HCIC, through its ditch system and easement rights, provides delivery to the Arkansas River upstream of nearly all major Colorado Front Range municipality access points.
- The asset value of the storage rights, direct flow water rights and agricultural farm land on a market comparable basis, once fully restored and developed, is projected to be in excess of $700 million.
- Dam reconstruction and ditch restoration is anticipated to be within 16 months, in time for the late spring snow melt in spring 2011.
- Once the system is fully restored, additional direct flow water rights can be acquired to fill the excess capacity at the Cucharas Reservoir and other HCIC reservoirs. The market rate for purchasing agricultural water rights in the Huerfano-Cucharas basin is approximately $1,000 per acre foot. The Company expects there will be approximately 50,000 acre feet of excess water storage in the system above the requirements for agriculture. Excess water could be sold for as much as $10,000+ per acre foot as \"raw water\" when purchased by a municipal user. The excess water can be leased or sold to municipal or other users by obtaining a \"change of use\" with a buyer in water court.
Product/Service Summary: Key Points:
Water is very scarce and valuable in Colorado. Shortages of up to 250,000 acre feet costing as much as $10 billion are predicted by the State of Colorado over the next decades. Two Rivers Water Company is purchasing a controlling interest in HCIC which holds significant water rights. Those water rights can be purchased for a small fraction of the restored value. HCIC?s Water rights are located at a strategically desirable location near the Arkansas River. HCIC could provide as much as 50,000 acre feet of "new water" to offset the water shortage in Colorado. John Stroh has extensive experience in the water business including the development, purchase and sale of water in Colorado. He holds board level positions in several relevant water related organizations. John McKowen has a successful track record in taking development stage businesses public and delivering significant returns on investment to early stage investors. The Company has hired one of the best engineering firms to design and rebuild the dam and ditch system.
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