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<SEC-DOCUMENT>0001362310-09-004555.txt : 20090720
<SEC-HEADER>0001362310-09-004555.hdr.sgml : 20090719
<ACCEPTANCE-DATETIME>20090330192134
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001362310-09-004555
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090330

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>
<TITLE>Correspondence</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">&#091;DGS Letterhead&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">March&nbsp;30, 2009
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><u><B>Via EDGAR and FedEx</B></u>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Mr.&nbsp;H. Christopher Owings, Assistant Director<BR>
Securities and Exchange Commission<BR>
Division of Corporate Finance<BR>
100 F Street, N.E., Mail Stop 3561<BR>
Washington, D.C. 20549

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="79%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Re:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pure Cycle Corporation</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form&nbsp;10-K for Fiscal Year Ended August&nbsp;31, 2008</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filed November&nbsp;14, 2008</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form&nbsp;10-Q for the Quarterly Period Ended November&nbsp;30, 2008</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filed January&nbsp;9, 2009</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitive Proxy Statement on Schedule&nbsp;14A</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Filed December&nbsp;12, 2008</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">File No.&nbsp;0-08814</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Dear Mr.&nbsp;Owings:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Set forth below is additional information concerning 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 March&nbsp;13, 2009, regarding the Company&#146;s Form 10-K for the fiscal year ended
August&nbsp;31, 2008 filed November&nbsp;14, 2008, the Company&#146;s Form 10-Q for the quarterly period ended
November&nbsp;30, 2008 filed on January&nbsp;9, 2009 and the Company&#146;s definitive Proxy Statement on Schedule
14A filed on December&nbsp;12, 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has acknowledged that (i)&nbsp;it is responsible for the adequacy and accuracy of the
disclosure in the filing; (ii)&nbsp;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)&nbsp;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.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is providing additional information to Staff&#146;s comment No.&nbsp;4 which is set forth in bold
below, followed by the response on behalf of the Company.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Based on your current disclosures, and given your history of operating losses and cash used
by operating activities, it is unclear to us how you determined that your investments in water
and water systems assets were not impaired at August&nbsp;31, 2008. To assist us in understanding
this matter, please respond to the following comments, separately addressing each water asset
group seen in Note 3 to your financial statements in your response:</B></DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Please tell us when you last performed an impairment test under SFAS 144. If you did
not perform an impairment test in either fiscal 2008 or thus far in fiscal 2009, please
provide us with a detailed explanation of how you determined such testing was not required
based on the guidance in paragraph 8 of SFAS 144. In this regard, we assume that your history of
operating and cash flow losses, along with recent negative developments such as the Sky
Ranch developer&#146;s bankruptcy filing and the withdrawal of the Lowry Range developer, would
indicate that regular impairment testing was needed to support any assumption of
recoverability of your water assets.</B></DIV></TD>
</TR>

</TABLE>
</DIV><P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">March&nbsp;30, 2009<br>
Page 2
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Please provide us with copies of your fiscal 2008 and 2009 impairment tests for your
water assets. Your response should include a narrative explanation of the significant
assumptions used in your analysis and why you believe your assumptions are reasonable,
including any assumptions of additional development of land or creation of new customers
beyond what currently exists and the expected timing of these future events. In this
regard, we read in Note 3 that that Arkansas River water, Paradise water supply and Sky
Ranch water supply assets have not yet been placed into service. You should also
specifically address the impact of the Sky Ranch developer&#146;s bankruptcy filing and the
withdrawal of the Lowry Range developer, if any, on your analysis.</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Please explain to us whether and how you have changed the assumptions used in your
impairment tests during the periods covered by your </B><B>Form 10-K</B><B> and thus far in fiscal 2009.</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Please ensure that you address the recoverability of your water assets in your critical
accounting policies, including explaining the significant assumptions underlying your
expectation of recoverability and the sensitivity of such assumptions to change. Given that
your water assets comprised 94% of your total assets at August&nbsp;31, 2008, we believe it is
vital that you clearly explain to your investors the uncertainties and assumptions
associated with the recoverability of these assets.</B></DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Company&#146;s additional response:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s latest impairment analysis was performed as of August&nbsp;31, 2008, and has been provided
to the Staff supplementally under separate cover subject to a Freedom of Information Confidential
Treatment Request pursuant to Commission Rule&nbsp;200.83.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">If you have any comments or questions regarding this letter, please call the undersigned at
303-892-7314.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>/s/ Wanda J. Abel</I>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Wanda J. Abel<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for<br>
<FONT style="font-variant: SMALL-CAPS">Davis Graham &#038; Stubbs LLP</FONT>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Mark W. Harding, Pure Cycle Corporation<br>
Michael F. Filkoski, GHP Horwath P.C.</DIV></TD>
</TR>
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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