99-1-506]. (Laws 1995, ch. 201, § 6.)

99-1-506]. (Laws 1995, ch. 201, § 6.)

ARTICLE 6 - LAKE DESMET RESERVOIR

99-1-601. Definitions.  (a) As used in this article:

(i) "Commission" means the Wyoming water development commission;

(ii) "Select water committee" means the select water committee created by W.S. 28-11-101;

(iii) "Office" means the Wyoming water development office created by W.S 9-2-2014;

(iv) "Water development account I" means the account created by W.S. 41-2-124(a)(i).

Source Notes for subsection (a): (Laws 2018, Ch. 115, § 1.)

99-1-602. Lake DeSmet Reservoir project.

(a) Authorization is granted for the Lake DeSmet Reservoir project as provided in this section.

Source Notes for subsection (a): (Laws 2018, Ch. 115, § 1.)

(b) Project – Lake DeSmet Reservoir:

(i) Project sponsor: State of Wyoming;

(ii) Project purpose: Agriculture, municipal, rural domestic and industrial water supply;

(iii) Project description: The purchase of:

(A) Water storage capacity in Lake DeSmet;

(B) Approximately four hundred forty-five (445) acres of land containing Healy Reservoir, the Clear Creek diversion structure and pumping facilities;

(C) Transmission pipeline related to the project;

(D) Funding for the Lake DeSmet Reservoir account as provided in subparagraph (vi)(D) of this subsection; and  (E) Associated water rights, easements and appurtenances necessary to make the project function in the manner intended. The project may also include closing costs as provided in subparagraph (vi)(C) of this subsection.

(iv) Total project budget: Four million five hundred thousand dollars ($4,500,000.00);

(v) Appropriation: There is appropriated from water development account I to the commission four million five hundred thousand dollars ($4,500,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 2021;

(vi) Special conditions:

(A) The office is hereby authorized to negotiate a purchase agreement with the owner of the project. The purchase agreement shall be submitted to the commission and governor for approval;

(B) Upon approval of a purchase agreement by the commission and governor, the commission is authorized to expend up to two million five hundred thousand dollars ($2,500,000.00) to purchase project components described in the approved purchase agreement;

(C) In addition to the authorized purchase price in the approved agreement, the office may use appropriated funds to pay fifty percent (50%) of the closing costs;

(D) Upon approval by the commission, any remaining funds from the appropriation under this section up to two million dollars ($2,000,000.00) shall be deposited in the Lake DeSmet Reservoir account created by W.S. 99-99-1001(a)(ix);

(E) Upon completion of the purchase of the project the office, with oversight from the commission, shall manage the project for the benefit of water users in this state.

Source Notes for subsection (b): (Laws 2018, Ch. 115, § 1.)

CHAPTER 2 - WATER DEVELOPMENT PROJECTS 1991 THROUGH 1997

ARTICLE 1 - 1991 CONSTRUCTION PROJECTS  99-2-101. Definitions.

(a) As used in this act [§ 99-2-101 through 99-2-104]:

(i) "Commission" means the Wyoming water development commission;

(ii) "Sponsor" means the municipality, irrigation district, water district, improvement and service district, water and sewer district or joint powers board that will receive funding for one of the projects identified in section 3 or 4 of this act [§ 99-2-103 or 99-2-104];

(iii) "Water development account I" means the account created by W.S. 41-2-124(a)(i);

(iv) "Water development account II" means the account created by W.S. 41-2-124(a)(ii). (Laws 1991, ch. 231, § 1.)

99-2-102. General authorization.

(a) The commission shall contract with each sponsor identified in this act [§ 99-2-101 through 99-2-104] for the design, construction and operation of the project in a manner consistent with this act [§ 99-2-101 through 99-2-104] and to administer the contract on behalf of the state of Wyoming.

(b) Upon execution of the contract outlined in subsection (a) of this section, the sponsor may design, construct and operate the project in a manner consistent with the terms and conditions outlined in the contract. (Laws 1991, ch. 231, § 2.)

99-2-103. Level III construction projects new development.

(a) Except as otherwise specifically provided, each Level III new development construction project identified in this section shall be subject to the following general conditions:

(i) Each sponsor shall offer security for the project loan as deemed adequate and acceptable to the attorney general;

(ii) The commission shall establish repayment schedules for project loans in accordance with the conditions prescribed in this section;  (iii) Each sponsor shall establish a sinking fund for repair and maintenance of the project as deemed appropriate by the commission;

(iv) Each sponsor shall supervise design and construction of the project and submit all requests for payment to the commission for approval;

(v) Sponsors shall not make construction funding commitments until after the commission has reviewed and approved construction budgets and construction plans;

(vi) The commission shall make payments directly to the sponsors;

(vii) The sponsor shall be responsible for operation and maintenance of the project;

(viii) The sponsor is responsible for all project expenditures in excess of the total project budget;

(ix) If the commission determines that any sponsor has, without good cause, abandoned completion of the project, that sponsor, in addition to being required to repay the loan, shall be obligated to immediately repay the full amount of all grant funds actually expended plus interest as established by the state auditor in an amount equal to the interest that would have accrued on the expended grant funds in the water development account from the date of expenditure;

(x) Principal and interest payments made in repayment of loans shall be deposited in water development account I;

(xi) There shall be no lease, sale, assignment or transfer of ownership of water from the project for purposes other than the designated project purpose without prior written approval of the commission and the state engineer or board of control. If such a transaction is approved, the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project shall be utilized to retire principal on the project loan. After that loan is paid in full, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project grant;

(xii) There shall be no lease, sale, assignment or transfer of ownership of any project until the project loan is paid in full, and until prior written approval is obtained from the commission. If these conditions are met, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project grant. Before the sponsor may lease, sell, assign or transfer ownership of the project, the state of Wyoming shall be given a one (1) year first right of refusal option to purchase the sponsor's interest in the project for an amount equal to the principal, interest, maintenance and replacement costs incurred by the sponsor at the date the option is exercised;

(xiii) After the project loan is paid in full, the sponsor may purchase the position of the state of Wyoming, as described in paragraphs (xi) and (xii) of this subsection, for the amount of the project grant plus the interest that would have accrued on the grant amount in the water development account from the date the project was substantially completed as defined by the commission. The interest that would have accrued on the grant amount shall be established by the state auditor;

(xiv) Any revenues generated by the state from the lease, sale, assignment or transfer of ownership of any project or project water shall be deposited in water development account I.

Source notes for subsection (a): (Laws 1991, ch. 231, § 3a.)

(b) Project - Airport Bench Water Supply:

(i) Project sponsor: Airport Bench Water and Sewer District;

(ii) Project purpose: Domestic water supply;

(iii) Project description: Transmission pipeline, storage facility, booster station, valves and appurtenances necessary to make the project complete and function in the manner intended;  (iv) Total project budget: Four hundred fifty thousand dollars ($450,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed eighteen thousand dollars ($18,000.00) or four percent (4%) of the actual development costs, whichever is less, for a term of thirty-five (35) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two hundred seven thousand dollars ($207,000.00) or forty-six percent (46%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account I to the commission two hundred twenty-five thousand dollars ($225,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 1995;

(viii) Special conditions: The sponsor is responsible for acquiring fifty percent (50%) of the total project budget from other sources.

Source notes for subsection (b): (Laws 1991, ch. 231, § 3b.)

(c) Project-Big Horn Rural Water Supply:

(i) Project sponsor: Northwest Rural Water District:

(ii) Project purpose: Rural domestic water supply;

(iii) Project description: Transmission pipelines, connections to the Shoshone municipal pipeline, pump stations, storage facilities, valves and appurtenances necessary to make the project complete and function in the manner intended;  (iv) Total project budget: Eleven million four hundred ten thousand dollars ($11,410,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed three million seven hundred sixty-five thousand three hundred dollars ($3,765,300.00) or thirty-three percent (33%) of the actual development costs, whichever is less, for a term of forty (40) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed seven million six hundred forty- four thousand seven hundred dollars ($7,644,700.00) or sixty- seven percent (67%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account I to the commission eleven million four hundred ten thousand dollars ($11,410,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 1999.

Source notes for subsection (c): (Laws 1991, ch. 231, § 3c; 1995, ch. 206, § 6; 1996, ch. 59, § 7; 1997, ch. 45, § 6.)

(d) Project - Bridger Valley Pipeline:

(i) Project sponsor: Bridger Valley Joint Powers Board;

(ii) Project purpose: Municipal and rural domestic water supply;

(iii) Project description: Transmission pipeline, intake structure, outlet structure, valves and appurtenances necessary to make the project complete and function in the manner intended;  (iv) Total project budget: Six hundred twenty-five thousand dollars ($625,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two hundred six thousand two hundred fifty dollars ($206,250.00) or thirty-three percent (33%) of the actual development costs, whichever is less, for a term of twenty-five (25) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed four hundred eighteen thousand seven hundred fifty dollars ($418,750.00) or sixty-seven percent (67%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account I to the commission six hundred twenty-five thousand dollars ($625,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 1994.

Source notes for subsection (d): (Laws 1991, ch. 231, § 3d.)

(e) [Project - Glendo Water Supply]

Source notes for subsection (e): (Laws 1991, ch. 231, § 3e; Repealed by Laws 1992, ch. 28, § 7b.)

(f) Project - Hulett Water Supply:

(i) Project sponsor: Town of Hulett;

(ii) Project purpose: Municipal water supply;

(iii) Project description: Pump station, transmission pipeline, connection to the existing system, valves and appurtenances necessary to make the project complete and function in the manner intended;  (iv) Total project budget: Two hundred fifty thousand dollars ($250,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed eighty-two thousand five hundred dollars ($82,500.00) or thirty-three percent (33%) of the actual development costs, whichever is less, for a term of twenty (20) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one hundred sixty-seven thousand five hundred dollars ($167,500.00) or sixty-seven percent (67%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account I to the commission two hundred fifty thousand dollars ($250,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 1995;

(viii) Special conditions:

(A) An amount not to exceed fifty thousand dollars ($50,000.00) or thirty-three percent (33%) of the actual construction costs of the groundwater well completed during the Level II study, whichever is less, shall be added to the loan amount provided in paragraph (v) of this subsection;

(B) Payment of interest and principal and accrual of interest on the loan shall be deferred until one (1) year after the term of the loan commences as determined by the commission. The loan shall be amortized over the remaining nineteen (19) years of the term.

Source notes for subsection (f): (Laws 1991, ch. 231, § 3f.)

(g) Project - Pinedale Water Supply:  (i) Project sponsor: Town of Pinedale;

(ii) Project purpose: Municipal and rural domestic water supply;

(iii) Project description: A transmission pipeline, connections to the existing system, valves and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: Three hundred twenty thousand dollars ($320,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one hundred five thousand six hundred dollars ($105,600.00) or thirty-three percent (33%) of the actual development costs, whichever is less, for a term of twenty (20) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two hundred fourteen thousand four hundred dollars ($214,400.00) or sixty-seven percent (67%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account I to the commission three hundred twenty thousand dollars ($320,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 1994.

Source notes for subsection (g): (Laws 1991, ch. 231, § 3g.)

(h) Project-Upton Water Supply:

(i) Project sponsor: Town of Upton;

(ii) Project purpose: Municipal water supply;  (iii) Project description: Improvements to the sponsor's water supply system as approved by the commission;

(iv) Total project budget: Three hundred sixty-five thousand dollars ($365,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one hundred twenty thousand four hundred fifty dollars ($120,450.00) or thirty-three percent (33%) of the actual development costs, whichever is less, for a term of ten (10) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two hundred forty-four thousand five hundred fifty dollars ($244,550.00) or sixty-seven percent (67%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account I to the commission three hundred sixty-five thousand dollars ($365,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 1996.

(viii) Repealed by 1992 Wyoming Session Laws, Chapter 28, Section 5.

Source notes for subsection (h): (Laws 1991, ch. 231, § 3h; 1992, ch. 28, § 5; 1994, ch. 28, § 12.)

99-2-104. Level III construction projects-rehabilitation.

(a) Except as otherwise specifically provided, each Level III rehabilitation construction project identified in this section shall be subject to the following general conditions:

(i) Each sponsor shall offer security for the project loan as deemed adequate and acceptable to the attorney general;  (ii) The commission shall establish repayment schedules for project loans in accordance with the conditions prescribed in this section;

(iii) Each sponsor shall establish a sinking fund for repair and maintenance of the project as deemed appropriate by the commission;

(iv) Each sponsor shall supervise design and construction of the project and submit all requests for payment to the commission for approval;

(v) Sponsors shall not make construction funding commitments until after the commission has reviewed and approved construction budgets and construction plans;

(vi) The commission shall make payments directly to the sponsors;

(vii) The sponsor shall be responsible for operation and maintenance of the project;

(viii) The sponsor is responsible for all project expenditures in excess of the total project budget;

(ix) If the commission determines that any sponsor has, without good cause, abandoned completion of the project, that sponsor, in addition to being required to repay the loan, shall be obligated to immediately repay the full amount of all grant funds actually expended plus interest as established by the state auditor in an amount equal to the interest that would have accrued on the expended grant funds in the water development account from the date of expenditure;

(x) Principal and interest payments made in repayment of loans shall be deposited in water development account II.

Source notes for subsection (a): (Laws 1991, ch. 231, § 4a.)

(b) Project - Afton Water Supply:

(i) Project sponsor: Town of Afton;

(ii) Project purpose: Municipal water supply;

(iii) Project description: Spring renovation, transmission pipeline replacement, storage tank, pump station, pipeline connection to the existing system, a groundwater well, valves and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: Two million six hundred thousand dollars ($2,600,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million three hundred thousand dollars ($1,300,000.00) or fifty percent (50%) of the actual development costs, whichever is less, for a term of thirty (30) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million three hundred thousand dollars ($1,300,000.00) or fifty percent (50%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account II to the commission two million six hundred thousand dollars ($2,600,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 1995;

(viii) Special conditions: If the town installs a hydroelectric generation facility into the project, the profits derived from the power generation, after debt service and operation, maintenance and replacement costs, shall be utilized to reduce the principal of the loan provided in paragraph (v) of this subsection. After the principal on the loan has been retired, the profits from the power generation shall belong to the town.

Source notes for subsection (b): (Laws 1991, ch. 231, § 4b.)

(c) Project - Chamberlain Reservoir:

(i) Project sponsor: LaPrele Irrigation District;  (ii) Project purpose: Agricultural water supply;

(iii) Project description: Improvements to the existing embankment, outlet works, principal, north, and emergency spillways, and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: One hundred fifty thousand dollars ($150,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed seventy-five thousand dollars ($75,000.00) or fifty percent (50%) of the actual development costs, whichever is less, for a term of twenty-five (25) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed seventy-five thousand dollars ($75,000.00) or fifty percent (50%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account II to the commission one hundred fifty thousand dollars ($150,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 1994;

(viii) Special conditions: Upon completion of the project contract the commission shall reamortize the balance of the principal, as of January 1, 1991, of the existing loan provided in the 1984 Wyoming Session Laws, Chapter 25, Section 1(b) on the basis of an interest rate of four percent (4%) and twenty-four (24) annual payments.

Source notes for subsection (c): (Laws 1991, ch. 231, § 4c.)

(d) Project - Cheyenne North Crow Reservoir:  (i) Project sponsor: City of Cheyenne;

(ii) Project purpose: Municipal water supply;

(iii) Project description: Improvements to the existing North Crow dam, spillway and outlet works and to the existing diversion dam and outlet works and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: Three million five hundred thousand dollars ($3,500,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million seven hundred fifty thousand dollars ($1,750,000.00) or fifty percent (50%) of the actual development costs, whichever is less, for a term of thirty (30) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million seven hundred fifty thousand dollars ($1,750,000.00) or fifty percent (50%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account II to the commission three million five hundred thousand dollars ($3,500,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 1995.

Source notes for subsection (d): (Laws 1991, ch. 231, § 4d.)

(e) Project-Douglas Water Supply:

(i) Project sponsor: City of Douglas;

(ii) Project purpose: Municipal water supply;  (iii) Project description: Improvements to the existing intake structure on the North Platte River and to existing facilities at the Little Box Elder Springs and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: Four hundred thousand dollars ($400,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two hundred thousand dollars ($200,000.00) or fifty percent (50%) of the actual development costs, whichever is less, for a term of forty (40) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed two hundred thousand dollars ($200,000.00) or fifty percent (50%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account II to the commission four hundred thousand dollars ($400,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 1994;

(viii) Repealed by Laws 1992, ch. 28, § 6.

Source notes for subsection (e): (Laws 1991, ch. 231, § 4e; 1992, ch. 28, § 6.)

(f) Project - Etna Diversion Dam:

(i) Project sponsor: Etna Irrigation District;

(ii) Project purpose: Agricultural water supply;  (iii) Project description: Replacement of the existing diversion dam and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: Two hundred thousand dollars ($200,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one hundred thousand dollars ($100,000.00) or fifty percent (50%) of the actual development costs, whichever is less, for a term of fifteen (15) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one hundred thousand dollars ($100,000.00) or fifty percent (50%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account II to the commission two hundred thousand dollars ($200,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 1995.

Source notes for subsection (f): (Laws 1991, ch. 231, § 4f.)

(g) Project - Shoshoni Water Supply:

(i) Project sponsor: Town of Shoshoni;

(ii) Project purpose: Municipal water supply;

(iii) Project description: Improvements to the existing well field, storage tank, transmission and water supply pipeline; installation of a telemetry system; and appurtenances necessary to make the project complete and function in the manner intended;  (iv) Total project budget: Seven hundred forty thousand dollars ($740,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed three hundred seventy thousand dollars ($370,000.00) or fifty percent (50%) of the actual development costs, whichever is less, for a term of thirty (30) years from the date the commission determines benefits accrue to the district, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed three hundred seventy thousand dollars ($370,000.00) or fifty percent (50%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account II to the commission seven hundred forty thousand dollars ($740,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 1994.

Source notes for subsection (g): (Laws 1991, ch. 231, § 4g.)

(h) Project - Smiths Fork Water Supply:

(i) Project sponsor: Smiths Fork Irrigation District;

(ii) Project purpose: Agricultural water supply;

(iii) Project description: Improvements to an existing diversion dam, headgate, and siphon; installation of measuring devises; and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: Three hundred forty thousand dollars ($340,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one hundred seventy thousand dollars ($170,000.00) or fifty percent (50%) of the actual development costs, whichever is less, for a term of thirty-five (35) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one hundred seventy thousand dollars ($170,000.00) or fifty percent (50%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account II to the commission three hundred forty thousand dollars ($340,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 1995.

Source notes for subsection (h): (Laws 1991, ch. 231, § 4h.)

(j) Project - Upper Hanover Water Supply:

(i) Project sponsor: Hanover Irrigation District;

(ii) Project purpose: Agricultural water supply;

(iii) Project description: Improvements to existing wasteways, flumes, siphons, underpasses, check structures, canals, pipelines and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: One million two hundred thousand dollars ($1,200,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed six hundred thousand dollars ($600,000.00) or fifty percent (50%) of the actual development costs, whichever is less, for a term of thirty-five (35) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account II through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed six hundred thousand dollars ($600,000.00) or fifty percent (50%) of the actual development costs, whichever is less;

(vii) Appropriation: There is appropriated from water development account II to the commission one million two hundred thousand dollars ($1,200,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account II on July 1, 1996;

(viii) Special conditions: The sponsor shall develop a written agreement with the Bluff, Upper Bluff and Highland Hanover irrigation districts identifying the project responsibilities of the parties.

Source notes for subsection (j): (Laws 1991, ch. 231, § 4j.)

ARTICLE 2 - 1992 CONSTRUCTION PROJECTS

99-2-201. Definitions.

(a) As used in this act [§§ 99-2-201 through 99-2-204]:

(i) "Commission" means the Wyoming water development commission;

(ii) "Sponsor" means the municipality, conservancy district, irrigation district, water district, improvement and service district, water and sewer district, watershed improvement district or joint powers board that will receive funding for one of the projects identified in section 3 or 4 of this act [§ 99-2-203 or 99-2-204];

(iii) "Water development account I" means the account created by W.S. 41-2-124(a)(i);

(iv) "Water development account II" means the account created by W.S. 41-2-124(a)(ii). (Laws 1992, ch. 28, § 1.)  99-2-202. General authorization.

(a) The commission shall contract with each sponsor identified in this act [§§ 99-2-201 through 99-2-204] for the design, construction and operation of the project in a manner consistent with this act [§§ 99-2-201 through 99-2-204] and to administer the contract on behalf of the state of Wyoming.

(b) Upon execution of the contract outlined in subsection (a) of this section, the sponsor may design, construct and operate the project in a manner consistent with the terms and conditions outlined in the contract. (Laws 1992, ch. 28, § 2.)

99-2-203. Level III construction projects new development.

(a) Except as otherwise specifically provided, each Level III new development construction project identified in this section shall be subject to the following general conditions:

(i) Each sponsor shall offer security for the project loan as deemed adequate and acceptable to the attorney general;

(ii) The commission shall establish repayment schedules for project loans in accordance with the conditions prescribed in this section;

(iii) Each sponsor shall establish a sinking fund for repair and maintenance of the project as deemed appropriate by the commission;

(iv) Each sponsor shall supervise design and construction of the project and submit all requests for payment to the commission for approval;

(v) Sponsors shall not make construction funding commitments until after the commission has reviewed and approved construction budgets and construction plans;

(vi) The commission shall make payments directly to the sponsors;

(vii) The sponsor shall be responsible for operation and maintenance of the project;

(viii) The sponsor is responsible for all project expenditures in excess of the total project budget;  (ix) If the commission determines that any sponsor has, without good cause, abandoned completion of the project, that sponsor, in addition to being required to repay the loan, shall be obligated to immediately repay the full amount of all grant funds actually expended plus interest as established by the state auditor in an amount equal to the interest that would have accrued on the expended grant funds in the water development account from the date of expenditure;

(x) Principal and interest payments made in repayment of loans shall be deposited in water development account I;

(xi) There shall be no lease, sale, assignment or transfer of ownership of water from the project for purposes other than the designated project purpose without prior written approval of the commission and the state engineer or board of control. If such a transaction is approved, the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project shall be utilized to retire principal on the project loan. After that loan is paid in full, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of water from the project equal to the percentage of the project grant;

(xii) There shall be no lease, sale, assignment or transfer of ownership of any project until the project loan is paid in full, and until prior written approval is obtained from the commission. If these conditions are met, the sponsor shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project loan and the state of Wyoming shall receive a proportionate share of the revenues generated by the lease, sale, assignment or transfer of ownership of the project equal to the percentage of the project grant. Before the sponsor may lease, sell, assign or transfer ownership of the project, the state of Wyoming shall be given a one (1) year first right of refusal option to purchase the sponsor's interest in the project for an amount equal to the principal, interest, maintenance and replacement costs incurred by the sponsor at the date the option is exercised;

(xiii) After the project loan is paid in full, the sponsor may purchase the position of the state of Wyoming, as described in paragraphs (xi) and (xii) of this subsection, for the amount of the project grant plus the interest that would have accrued on the grant amount in the water development account from the date the project was substantially completed as defined by the commission. The interest that would have accrued on the grant amount shall be established by the state auditor;

(xiv) Any revenues generated by the state from the lease, sale, assignment or transfer of ownership of any project or project water shall be deposited in water development account I.

Source notes for subsection (a): (Laws 1992, ch. 28, § 3a.)

(b) Project-Buffalo Municipal Reservoir:

(i) Project sponsor: City of Buffalo;

(ii) Project purpose: Municipal and domestic water supply, recreation, hydropower production;

(iii) Project description: Dam on Clear Creek and the appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: Thirteen million six hundred thousand dollars ($13,600,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed four million four hundred eighty-eight thousand dollars ($4,488,000.00) or thirty-three percent (33%) of the actual development costs, whichever is less, for a term of fifty (50) years from the date the commission determines project benefits accrue to the sponsor, at an annual interest rate of four percent (4%);

(vi) Project grant: The state of Wyoming shall grant to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed nine million one hundred twelve thousand dollars ($9,112,000.00) or sixty-seven percent (67%) of the actual development costs, whichever is less;  (vii) Appropriation: There is appropriated from water development account I to the commission thirteen million six hundred thousand dollars ($13,600,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 1999;

(viii) Special conditions:

(A) Payment of interest and principal and accrual of interest on the loan shall be deferred until five (5) years after the term of the loan commences as determined by the commission. The loan shall be amortized over the remaining forty-five (45) years of the term;

(B) The project is expressly contingent on funding and construction of the Buffalo Hydropower Project described in subsection (c) of this section.

Source notes for subsection (b): (Laws 1992, ch. 28, § 3b; 1996, ch. 59, § 8; 1997, ch. 45, § 7.)

(c) Project-Buffalo Hydropower Project:

(i) Project sponsor: City of Buffalo;

(ii) Project purpose: Hydropower generation;

(iii) Project description: Hydropower generation facilities and appurtenances necessary to make the project complete and function in the manner intended;

(iv) Total project budget: One million seventy-five thousand dollars ($1,075,000.00);

(v) Project loan: The state of Wyoming shall loan to the sponsor from water development account I through the commission for the design, permit procurement, project land procurement, construction engineering and construction of the project an amount not to exceed one million seventy-five thousand dollars ($1,075,000.00) or one hundred percent (100%) of the actual development costs, whichever is less, for a term of five (5) years from the date the commission determines project benefits accrue to the sponsor from the project and the Buffalo Municipal Reservoir, at an annual interest rate of four percent (4%);  (vi) Appropriation: There is appropriated from water development account I to the commission one million seventy-five thousand dollars ($1,075,000.00) or as much thereof as is necessary to carry out the purpose of this subsection. Unexpended funds appropriated under this subsection shall revert to water development account I on July 1, 1999;

(vii) Special conditions:

(A) Payment of the principal on the loan shall be deferred until five (5) years after the term of the loan commences as determined by the commission. The total principal on the loan will be due at the end of the deferral