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FOR IMMEDIATE RELEASE

CONTACT: Anna Miller, Financial Advisor
Conservation and Resource Division
(406) 444-6689

May 8, 2008

Lockwood upgrading water system with $1.1M loan from DNRC

LOCKWOOD, Mont. – The Lockwood Water and Sewer District is ready to upgrade its water system after closing April 17 on a low-interest loan worth $1.1 million, according to the Montana Department of Natural Resources and Conservation (DNRC).

Anna Miller, Financial Advisor for DNRC's Conservation and Resource Development Division, said the loan will finance three major projects: construction of a new booster station, construction of a new water treatment plant intake on the Yellowstone River, and a backup generator capable of running the entire water treatment facility in the event of a power outage.

Miller explained these projects were identified as priorities after the District commissioned a Water System Master Plan Study in 2006. A large power outage the year before shut down Lockwood's pumping station for more than two days, leaving many area residents without potable water during that time. The study also found the District's booster station could not supply adequate water flows during a fire.

"The new booster station will house four pumps, including a fire flow pump," Miller said. "The new backup generator will be installed outside the water treatment plant in a weather-proof enclosure."

The need for an improved water intake arose after a new bridge was constructed across the Yellowstone River and caused changes in the river's flow patterns. During periods of heavy runoff, the District's water intake becomes blocked with sediment and large debris. To solve that problem, the District will construct a new water intake in the Lockwood Irrigation District outlet channel, for use during high-water events.

Richard Koehn, Lockwood Water and Sewer District Manager, said excavation work has already begun on the new booster station. "We're hoping to have all of the projects near completion by the end of July," he said.

Koehn praised the State Revolving Fund (SRF) loan program administered by DNRC, which helps local entities keep pace with critical improvements to infrastructure at the lowest possible cost.

"Without some outside help, some of these improvements wouldn't be getting done," Koehn said. "The whole process through DNRC has been really smooth."

The 20-year loan for the Lockwood Water and Sewer District will be administered by the DNRC, and will draw a low interest rate of 2.75% on the first $500,000, with the balance at 3.75%. Loan payments return to the SRF fund to finance similar water-improvement projects for communities across Montana.

For more information on the State Revolving Fund program, contact Anna Miller of DNRC at (406) 444-6689, or visit the Montana DNRC Web site at http://dnrc.mt.gov/.

###DNRC###

John Grassy
Public Information Officer
Department of Natural Resources and Conservation
(406) 444-0465

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