-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Nmcn/ltLdwdS5wIes3Fw8NXrnFaaq4o1NhOVlp/U1/icwDyERnZn7XbPXFsM3fXj
 Zd5ZTkgnbGUFtn1UBSWghw==

<SEC-DOCUMENT>0001104659-07-051754.txt : 20080211
<SEC-HEADER>0001104659-07-051754.hdr.sgml : 20080211
<ACCEPTANCE-DATETIME>20070702163542
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-07-051754
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20070702

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PURE CYCLE CORP
		CENTRAL INDEX KEY:			0000276720
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				840705083
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		8451 DELAWARE STREET
		CITY:			THORNTON
		STATE:			CO
		ZIP:			80260
		BUSINESS PHONE:		3032923456

	MAIL ADDRESS:	
		STREET 1:		8451 DELAWARE STREET
		CITY:			THORNTON
		STATE:			CO
		ZIP:			80260
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>

<head>







</head>

<body lang="EN-US">

<div>


<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July 2, 2007</font></p>

<p style="line-height:11.0pt;margin:0pt 0pt 11.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Via EDGAR </font></u></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Mr.
H. Christopher Owings</font><br>
</font>Securities and Exchange
Commission<br> Division of Corporate Finance<br> 100 F Street, N.E.<br> Washington, D.C.&#160; 20549</p>

<p style="font-family:Times New Roman;margin:12.0pt 5.65pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Pure Cycle
Corporation<br>
Form 10-K for Fiscal Year Ended August 31, 2006<br>
Form 10-Q for the fiscal quarter ended February 28, 2007<br>
File No. 0-08814</font></p>

<p style="line-height:normal;margin:11.0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Mr. Owings:</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Set
forth below are the responses of Pure Cycle Corporation (the &#147;Company&#148;) to the
comments of the Staff of the Division of Corporate Finance, which were
delivered in your letter dated June 29, 2007, regarding the Company&#146;s Form 10-K
for the fiscal year ended August 31, 2006 filed November 21, 2006, amended on
April 16, 2007, and the Company&#146;s Form 10-Q for the fiscal quarter ended
February 28, 2007 filed on April 16, 2007.</font></p>

<p style="color:black;margin:0pt 0pt 12.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">The Company
respectfully requests that this response letter be reviewed expeditiously as
the Company&#146;s Form 10-Q for the quarterly period ended May 31, 2007 is due on
July 10, 2007. If you could please confirm that the Staff of the Commission has
completed its review, and the proposed amendements, as noted in the Company&#146;s
response letters dated May 30, 2007 and June 19, 2007, are acceptable to the
Staff of the Commission, the Company will file an amended Form S-3 and amended
Form 10-K for the fiscal year ended August 31, 2006, as soon as practical.</font></p>

<p style="color:black;margin:0pt 0pt 12.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">We
acknowledge that (i) the Company is responsible for the adequacy and accuracy
of the disclosure in the filing; (ii) staff comments or changes to disclosure
in response to staff comments do not foreclose the Commission from taking any
action with respect to the filing; and (iii) the Company may not assert staff
comments as a defense in any proceeding initiated by the Commission or any
person under the federal securities laws of the United States.</font></p>

<p style="color:black;margin:0pt 0pt 12.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">For your
convenience, the Staff&#146;s comments are indicated in bold below, followed by
responses on behalf of the Company.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form
10-K for the fiscal year ended August 31, 2006</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 7
&#151; Stockholders&#146; Equity, page 60</font></u></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 27.0pt;text-indent:-27.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b>We have reviewed your
response to prior comment 4 in our letter dated June 14, 2007, noting that you
intend to provide the requested SFAS 123(R) disclosures in your next Form 10-K.
Please confirm you will provide the requested disclosures in your Form 10-Q for
the quarterly period ending May 31, 2007.</b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company confirms that it will provide the requested disclosures in its Form
10-Q for the quarterly period ending May 31, 2007.</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\fc\18314913997_D10695_2232567\17978-1-ma.htm',USER='jmsproofassembler',CD='Jul  2 14:09 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 10
&#151; Information Concerning Business Segments, page 63</font></u></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 27.0pt;text-indent:-27.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b>We have reviewed your
response to prior comment 5 in our letter dated June 14, 2007, noting that your
construction operating segment does not meet the quantitative thresholds of
paragraph 18 of SFAS 131. Please note that aggregation of quantitative
immaterial operating segments with reportable segments is only permitted if all
aggregation criteria listed in paragraph 17 of SFAS 131 are satisfied. An
operating segment that does not meet the quantitative thresholds and does not
satisfy all of the aggregation criteria of SFAS 131 should be disclosed under
and &#147;all other&#148; category. Accordingly, if your construction segment does not
meet the quantitative thresholds of paragraph 18 in future reporting periods,
please confirm that you will include information on that segment in future
filings in an &#147;all other&#148; category.</b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Starting
with the Form 10-Q for the quarterly period ending May 31, 2007, the Company
confirms that if management determines the Company has reportable segments, its
reportable segments will be properly and fully disclosed in accordance with the
requirements of SFAS 131.</font></p>

<p style="color:black;margin:0pt 0pt 12.0pt;"><b><u><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">Form 10-Q
for the Fiscal Quarter Ended February 28, 2007</font></u></b></p>

<p style="color:black;font-family:Times New Roman;margin:0pt 0pt 12.0pt 27.0pt;text-indent:-18.0pt;"><b><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" color="black" style="color:windowtext;font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" color="black" style="color:windowtext;font-size:10.0pt;font-weight:bold;">We have reviewed your response to prior
comment 8 in our letter dated June 14, 2007, however, we are not in a position
to agree with your proposal to recognize a gain on the sale of the LAWMA shares
during the quarterly period ended February 28, 2007. Considering that the
increase to your LAWMA assets account was the result of your inability to
ascribe value to the shares at the acquisition date and your subsequent
discovery of additional information about the fair value of those shares, we
believe your proposed treatment would result in an inaccurate financial
statement presentation. Accordingly, we believe that your historical treatment,
resulting in no statement of operations impact, appears adequate.</font></b></p>

<p style="color:black;margin:0pt 0pt 12.0pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">The Company
confirms that its acccounting treatment for the LAWMA shares as disclosed in
its originally filed Form 10-Q for the quarterly period ended February 28, 2007
will not be amended.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If
you have any comments or questions regarding this letter, please call the
undersigned at 303-292-3456.</font></p>

<p style="margin:0pt 0pt 12.0pt 252.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very
truly yours,</font></p>

<p style="font-family:Times New Roman;font-size:12.0pt;margin:0pt 0pt 12.0pt 252.0pt;page-break-after:avoid;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/
Mark W. Harding</font></u><br>
<font size="2" style="font-size:10.0pt;">Mark W.
Harding</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 35.0pt;text-indent:-35.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">cc:</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Wanda J. Abel, Davis, Graham &amp; Stubbs,
LLP<br> Michael F. Filkoski, GHP Horwath P.C.</p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='2',FILE='C:\fc\18314913997_D10695_2232567\17978-1-ma.htm',USER='jmsproofassembler',CD='Jul  2 14:09 2007' -->


</body>

</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
