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Mayer: <br /> <br />In reading the agreement with <br />Broomfield on grooming up their <br />yield for the $13 million, what <br />affect would that have on other <br />Windy Gap participants? <br /> <br />Carl Dreher, Head of Engineering for the Northern Colorado Water <br />Conservancy District, 1250 North Wilson Avenue, Loveland, CO, <br />stated that the basis for the $13 million payment in Broomfield's <br />contract was an attempt on Broomfield's part to make the extreme <br />dry year yield of the Windy Gap Water equal to what they felt their <br />dry yield of the Great Western water was. The severest drought on <br />record for the Great Wester water supply was the 1950's drought. <br />Broomfield and their consultants believe that that represented a <br />100 year drought in the Clear Creek Basin. He explained that the <br />1950's drought for Windy Gap was not a 100 year drought. Windy Gap <br />derives its water supplies from the upper Colorado River Basin. <br />The hydrology in the river basins is different during different <br />years. The 1950's drought in the upper Colorado Basin generally is <br />believed to be about a one (1) in 25 year drought. Broomfield is <br />replacing their Great Western supply solely with Windy Gap. <br />Louisville is proposing a mixture of Windy Gap and CBT. He stated <br />that the finding of "no significant impact" is expected to be <br />issued by the end of February. <br /> <br />Mayer: <br /> <br />Under construction bids, are these <br />going to be firm contracts or is <br />there room for escalation in costs? <br /> <br />Dreher: <br /> <br />There would be no room for <br />escalation in costs. The only <br />provision would be any changed <br />conditions that the contractor would <br />encounter. <br /> <br />Mayer: <br /> <br />What happens in the case that DOE <br />doesn't come forward? <br /> <br />Dreher: <br /> <br />We intend to spend as much of <br />Broomfield's money up stream of <br />Broomfield as we can. Broomfield <br />has already paid us $9.3 million. <br />If for some reason there is a delay <br />in the final payment from DOE, we do <br />have the flexibility, under the <br />agreement with Broomfield, to spend <br />part of the money that was allocated <br />for berming to complete the <br />pipeline. <br /> <br />5 <br /> <br /> <br />