IN THE DISTRICT COURT IN AND FOR WATER DIVISION NO



IN THE DISTRICT COURT IN AND FOR WATER DIVISION NO. 4

STATE OF COLORADO

TO: ALL PERSONS INTERESTED IN WATER APPLICATIONS IN SAID WATER DIVISION NO. 4

Pursuant to C.R.S. 37-92-302, as amended, you are notified that the following is a resume of all applications filed in the Water Court during the month of September 2009.

The names, address of applicant, source of water, description of water right or conditional water right involved, and description of the ruling sought are as follows:

CASE NO. 2009CW114. Applicant: Franklin Zantell Sr. P. O. Box 418, Gunnison, CO 81230. Franklin Zantell, Jr., 2144 Kerr Gulch Road, Evergreen, CO 80439. Application for Surface Water Right: Radiator Spring – SW ¼ NE ¼ of Section 32, T51N, R2E, NMPM. 1,065 feet from the north line and 1,100 feet from the east section line. Source: Gunnison River. Appropriation Date: 06/01/1996. Amount Claimed: .025 cfs absolute for fire suppression, wildlife and stockwater. GUNNISON COUNTY.

CASE NO. 2009CW115. Applicant: Don Dahlstein and Helen Dahlstein, 6085 County Road 23, Ridgway, CO 81432. Application for Water Storage Right: Don’s Pond – SW ¼ NW ¼ of Section 21, T45N, R8W, NMPM. 1,459 feet from the north line and 1,471 feet from the west section line. Source: Cuddigan Gulch and the Uncompahgre River. Appropriation Date: 07/28/1993. Amount Claimed: 4.19 acre-feet absolute for irrigation of 2 acres, piscatorial, wildlife and fire protection, and 0.43 cfs absolute for filling the reservoir. OURAY COUNTY.

CASE NO. 2009CW116. Applicant: James Green and Aleene Green, P. O. Box 470, Pettus, TX 78146. Application for Surface Water Right: Green Cabin Spring – SE ¼ SW ¼ SW ¼ of Section 28, T51N, R4E, NMPM. 342 feet from the south line and 1,059 feet from the west section line. Source: Armstrong Gulch, Quartz Creek, Tomichi Creek and the Gunnison River. Appropriation Date: 06/01/2009. Amount Claimed: 4 gpm conditional for domestic use. GUNNISON COUNTY.

CASE NO. 2009CW117. Applicant: James and Renee Cain, 5155 County Road 76, Parlin, CO 81239. Application for Surface Water Right: Cain Spring – NW ¼ SE ¼ NE ¼ of Section 5, T49N, R3E, NMPM. 1,535.18 feet from the north line and 1,180 .83 feet from the east section line. Source: Gunnison River: Appropriation Date: 07/15/1998. Amount Claimed: 60 gpm absolute for irrigation of 20 acres and wildlife. Cain Pump – SE ¼ SW ¼ NW ¼ of Section 4, T49N, R3E, NMPM. 2,249.06 feet from the north line and 1,066.47 feet from the west section line. Source: Quartz Creek, Gunnison River: Appropriation Date: 08/15/2009. Amount Claimed: 15 gpm absolute for irrigation of 5 acres. GUNNISON COUNTY.

CASE NO. 2009CW118. Applicant: Bruce Saunders and Noreen Horwitz, 43281 Ponderosa Trail, Gunnison, CO 81230. Application for Surface Water Right: GBHCR No 1 – NW ¼ SE ¼ SW ¼ of Section 27, T48N, R1E, NMPM. 1,125.21 feet from the south line and 1,578.27 feet from the west section line. Source: Tomichi Creek, Gunnison River. Appropriation Date: 09/06/2005. Amount Claimed: .011 cfs absolute for wildlife habitat and supplemental water supply for fire suppression. GBHCR No 2 – NW ¼ SE ¼ SW ¼ of Section 27, T48N, R1E, NMPM. 2,295.18 feet from the south line and 1,396.94 feet from the west section line. Source: Tomichi Creek, Gunnison River. Appropriation Date: 09/06/2005. Amount Claimed: .013 cfs conditional for wildlife habitat and supplemental water supply for fire suppression. SAGUACHE COUNTY.

CASE NO. 2009CW119 (REF NO. 03CW20). OURAY COUNTY - Uncompahgre River; Elk Meadows Homeowners Association c/o John R. Pierce, Dufford, Waldeck, Milburn & Krohn, L.L.P., 744 Horizon Court, Suite 300, Grand Junction, CO 81506; APPLICATION TO MAKE ABSOLUTE AND FOR CORRECTION OF LOCATION; 1. Name, Address, Telephone Number of Applicant: Elk Meadows Homeowners Association, 1000 Aspen Drive, Ridgway, CO 81432, 970-626-5889; with copies of all pleadings to: John R. Pierce, 744 Horizon Court, Suite 300, Grand Junction, CO 81506, (970) 241-5500; 2. Summary: By this Application, Applicant seeks to make its conditional water right in the Elk Meadows Well absolute. Additionally, Applicant recently became aware that the decreed location for the Elk Meadows Well is incorrect. For that reason, Applicant seeks to correct the decreed location for the Elk Meadows Well to reflect the as-built location. Finally, in Case No. 06CW220 the Court granted Applicant a conditional groundwater right in the Elk Meadows No. 2. That well has been constructed and the water right has been placed to beneficial use. As such, Applicant requests that the conditional water right for the Elk Meadows Well No. 2 be made absolute; I. REQUEST TO MAKE CONDITIONAL RIGHT ABSOLUTE (Elk Meadows Well): 3. Description of Conditional Right: A. Name of Structure: Elk Meadows Well, Well Permit No. 247979; B. Location of Well: The proposed location of the Elk Meadows Well was 1300 ft south of the north section line and 1500 ft west of the east section line, SE(NW(NE( of Section 5, T44N, R8W, N.M.P.M. The as-built location is in the NW/4 NE/4 of Section 5, T44N, R8W, N.M.P.M. at a point which is 820 feet from the north section line and 2354 feet from the east section line. Because the as-built location deviates more than 200 feet from the original decreed location, Applicant requests a correction of location below; C. Source: Groundwater tributary to the Uncompahgre River; D. Depth: Maximum projected depth for the well was 250 feet. The well was constructed to a depth of 198 feet; E. Appropriation Date: November 1, 2002; Amount: 15 g.p.m., conditional; F. Use: Domestic purposes, including outside watering for landscape trees; 4. Detailed outline of what has been done to complete appropriation and application of water to beneficial use: The Elk Meadows Well was constructed on April 28, 2003 and placed to beneficial use within the Elk Meadows Subdivision. The meter on the well indicates that over 1,500,000 gallons of water have been diverted. In the event that the Court declines to make some or all of the conditional right in the Elk Meadows Well absolute, Applicant requests that the Court enter a finding of diligence with regard to such conditional right; 5. If claim to make absolute: A. Date water applied to beneficial use: May 1, 2003; Amount: 15 g.p.m.; B. Use: Domestic purposes, including outside watering for landscape trees; 6. Name and Address of Owner of Land Upon Which Well is Located: The well is located on property owned by the Applicant; II. REQUEST TO MAKE CONDITIONAL RIGHT ABSOLUTE (Elk Meadows Well No. 2): 7. Description of Conditional Right: A. Name of Structure: Elk Meadows Well No. 2, Well Permit No. 68219-F (formerly under Permit No. 278634); B. Case No: The Elk Meadows Well No. 2 was decreed conditionally in Case No. 06CW220. In Case No. 08CW123 the location of the Elk Meadows Well No. 2 was changed; C. Location of Well: The Elk Meadows Well No. 2 is located in the NW/4 NW/4 NE/4 of Section 5, T44N, R8W, N.M.P.M. at a point which is 485 feet from the north section line and 2010 feet from the east section line; D. Source: Groundwater tributary to Kettle Gulch, tributary to the Uncompahgre River; E. Depth: 220 feet; F. Appropriation Date: October 23, 2003; Amount: 0.033 cfs (15 g.p.m., annual appropriation of 42.37 acre-feet); G. Use: domestic, including irrigation of landscape trees; 8. If claim to make absolute: The Elk Meadows Well No. 2 has been constructed the full decreed rate of flow has been diverted and placed to beneficial use. The meter for the Well indicates that over 100,000 gallons has been diverted at the time of this Application; A. Date water applied to beneficial use: October 1, 2008; Amount: 0.033 c.f.s.; B. Use: domestic use, including irrigation of landscaping, within the Elk Meadows Subdivision; 9. Name and Address of Owner of Land Upon Which Well is Located: The well is located on property owned by the Applicant; III. CORRECTION OF LOCATION (Elk Meadows Well): 10. Decreed water right for which change is sought: Elk Meadows Well; 11. Description of proposed change: The decreed location for the Elk Meadows Well was 1300 ft south of the north section line and 1500 ft west of the east section line, SE(NW(NE( of Section 5, T44N, R8W, N.M.P.M. The as-built location is in the same section and quarter, but is at a point which is 820 feet from the north section line and 2354 feet from the east section line. Because the as-built location deviates more than 200 feet from the original decreed location, Applicant seeks to correct the decreed location; 12. Name and Address of Owner of Land Upon Which Well is Located: The well is located on property owned by the Applicant. (5 pages.) OURAY COUNTY.

CASE NO. 2009CW120 DELTA COUNTY 1. Overland Ditch and Reservoir Company, 26083 Moss Rock Road, Hotchkiss CO 81419, Tom Howe, President 872-7373, by Aaron R. Clay, P.O. Box 38, Delta CO 81416, 970-874-9777. APPLICATION FOR SURFACE WATER RIGHT 2. Name of Structure: Overland Ditch, Roatcap Diversion. 3. Legal Description: at the intersection of Roatcap Creek and the Overland Ditch, in the SW1/4NE1/4 of Section 5, Township 13 South, Range 92 West, 6th P.M., approximately 1354 feet south of the north section line and 1354 feet east of the west section line (at Latitude 38.9478 North, Longitude 107.696 West, UTM Easting 266358.93, Northing 4314440.75 Zone 13.) 4. Date of Appropriation: June 9, 2009, by action of the Board of Directors of Applicant. 5. Amount: 50.0 c.f.s., absolute 6. Use: the irrigation of 7,000 acres 8. Source of Water: Roatcap Creek, tributary to the North Fork of the Gunnison River. 9. Statement of Claim: For many years, water in Roatcap Creek has been captured in the Overland Ditch and transported to lands of farmers served by Applicant. This Application is to recognize and give priority to that historic practice. DELTA COUNTY.

CASE NO. 2009CW121 (REF NO. 02CW45). Applicant: Michael Martin, 38258 Linman Road, Crawford, CO 81415. Application for Finding of Reasonable Diligence: Don’s Pond – SE ¼ NW ¼ of Section 26, T15S, R92W, 6th PM. 2,400 north of the south line and 1,250 feet east of the west section line. Source: North Fork of the Gunnison River. Appropriation Date: 03/03/2003. Amount Claimed: .50 cfs conditional for storage and 3.9 acre-feet conditional for irrigation of 17 acres, stockwater and wildlife. The Application on file with the Water Court contains a detailed outline of the work performed during the diligence period. DELTA COUNTY.

CASE NO. 2009CW122. OURAY COUNTY 1. Applicant Tri-County Water Conservancy District, P.O. Box 347, Montrose CO 81402, 970-249-3369, a political subdivision of the State of Colorado, by Aaron R. Clay, P.O. Box 38, Delta CO 81416, 970-874-9777. APPLICATION FOR STORAGE WATER RIGHT 2. Name of Structures: Ridgway Reservoir Tri Ct, Third Fill. 3. Legal Description of decreed point of diversion: Ridgway Reservoir is located at a point whence the South quarter corner of Section 16, Township 46 North, Range 8 West, N.M.P.M. bears South 37°11’22.8” East 2680.38 feet; the west abutment of the crest of the dam is located whence the said South quarter corner bears South 69°52’37.2” East 4252.33 feet; and the centerline of the dam between these abutments bears South 74°10’42.2” West 2466.00 feet. 4. Date of Appropriation: November 1, 2005 5. Amount: 39,228 acre-feet, absolute 6. Uses: fish culture, recreation, and flood control. 7. Source of Water: Uncompahgre River. 8. Date water applied to beneficial use: May 16, 2006 9. Remarks: In the water year November 1, 2005 through October 31, 2006, 123,830 acre-feet of water were stored under the priority awarded to the second fill. As the decreed second fill amount is 84,602 acre-feet, the excess, 39,228 acre-feet, is claimed as a new right for the uses of fish culture, recreation, and flood control only. OURAY COUNTY.

CASE NO. 2009CW123 (REF NO. 03CW19, 92CW184). DELTA COUNTY. NORTH FORK GUNNISION RIVER. Patricia M. & Cecil B. Farnsworth, c/o Patrick, Miller & Kropf, P.C., Kevin L. Patrick, Esq. and William M. Stenzel, Esq., 730 E. Durant Ave., Suite 200, Aspen, CO 81611, (970) 920-1028. APPLICATION FOR FINDING OF REASONABLE DILIGENCE. Name of structures: Farnsworth Pond No. 1. Type: Reservoir. Farnsworth Pond No. 3. Type: Reservoir. Describe conditional water rights giving the following from the Referee’s Ruling and Judgment and Decree: Date of original decree: March 16, 1995. Case No.: 92CW184. Court: District Court, Water Division No. 4. Legal description: Farnsworth Pond No. 1: Delta County, SW ¼ of the NE ¼ of the SE ¼, Section 1, Township 14 South, Range 92 West, of the Sixth Prime Meridian. The southern axis of the dam is located approximately 670 feet west of the East Section line of Section 1 and 3,625 feet south of the North Section line of Section 1 from whence it runs in a northwesterly direction for approximately twenty feet. Farnsworth Pond No. 3: Delta County, NE ¼ of the NE ¼ of the SE ¼ of Section 1, Township 14 South, Range 92 West of the Sixth Prime Meridian. The southern axis of the dam is located approximately 550 feet west of the East Section line of Section 1 and 2,740 feet south of the North Section line of Section 1 from whence it runs in northeasterly direction for approximately ninety feet. Source: Farnsworth Pond No. 1: There are three sources of water for the Farnsworth Pond No. 1: Water produced from Farnsworth Springs S-1 and S-2 and collected by the Farnsworth Collection Ditch; Applicants’ 0.05 cfs ownership in and to the Wade and Hightower Ditch, and Applicants’ 0.07 cfs ownership in the Paonia Ditch. Farnsworth Pond No. 3: There are two sources of water for the Farnsworth Pond No. 3. Applicants’ 0.05 cfs ownership in and to the Wade and Hightower Ditch, and Applicants’ 0.07 cfs ownership in the Paonia Ditch. Appropriation date: Farnsworth Pond No. 1: September 1, 1984. Farnsworth Pond No. 3: June 1, 1989. Amount and uses: Farnsworth Pond No. 1: Originally decreed for 3.932 acre feet, absolute, for aesthetic and piscatorial purposes, with the right to fill and refill when water is physically and legally available, and conditional right for the same 3.932 acre feet, conditional for domestic, irrigation, industrial, augmentation and exchange purposes. Case No. 03CW19 decreed 3.932 acre feet, absolute, for irrigation and industrial uses. The remaining conditional amount of 3.932 acre feet for domestic, augmentation and exchange uses is the subject of this application. Farnsworth Pond No. 3: Originally decreed for 1.80 acre feet, conditional, for irrigation, piscatorial, aesthetic, augmentation and exchange with a right to fill and refill when water is physically and legally available. Case No. 03CW19 decreed 1.80, acre feet, absolute for irrigation and industrial, leaving 1.80 acre feet, conditional, for piscatorial, aesthetic, augmentation and exchange. The remaining conditional amount of 1.80 acre feet for piscatorial, aesthetic, augmentation and exchange is the subject of this application. Provide a detailed outline of what has been done toward completion or for completion of the appropriation and application of water to a beneficial use as conditionally decreed, including expenditures: During the last diligence period, Applicants have commenced the process of planning, design, and permitting home sites on the subject property, including attending meetings to determine proper procedure for development of the property and to place this water to use. Applicants commenced work on the Specific Development Application required by Delta County. Applicants have hired a Professional Engineer to establish the placement of the lots and have initiated the removal of brush and topsoil in preparation for the construction. Applicants have also engaged West Water Associates to discuss the development of the water system (potable and non-potable) for the homes. Applicants have also installed a valve in Farnsworth Pond No. 1. The total cost of these diligence activities is approximately $18,500.00. Applicants have also engaged the services Patrick, Miller & Kropf, P.C. to monitor water rights applications, which could impact the subject water rights. The name and address of owner or reputed owners of the land upon which any new diversion or storage structure, or modification to any existing or diversion or storage structure is or will be constructed or upon which water is or will be or stored, including any modification to the existing pool: Applicants. Remarks or any other pertinent information: These water rights were originally decreed under the name of River Bottom Land Corporation, Inc. The Summary of Consultation for the original cases, 92CW180, 181, 182, 183, 184, & 185 combined all of the water rights under the ownership of River Bottom Land Corporation (aka Cecil and Patricia Farnsworth) even though the ownership of the two properties involved were owned by River Bottom Land Corporation, Inc. and Cecil and Patricia Farnsworth separately. In subsequent diligence proceedings, the Applicant has continued to be River Bottom Land Corporation. However, River Bottom Land Corporation, Inc. does not, and has never, owned the property on which these water rights are located. River Bottom Land Corporation no longer owns any property in Delta County as the other property involved in the original cases was recently conveyed to Cecil and Patricia Farnsworth. Applicants filed a Notice of Transfer of Conditional Water Rights concurrently to clarify the ownership for the Court’s records. Since the third quarter of 2007, the nation has been in a declared recession of a magnitude not experienced for at least 70 years. The current economic conditions are outside of the control of the Applicant and are impeding Applicants continuous and purposeful intention and acts to develop the conditional water right(s). Municipal Subdistrict, Northern Colorado Water Conservancy District v. Chevron, 986 P. 2d 918 (Colo. 1999). These economic conditions are to be considered by the Court when it considers the facts and circumstances of diligence activities during the diligence period. Dallas Creek Water Co. v. Huey, 933 P. 2d 27 (Colo. 1997). DELTA COUNTY.

CASE NO. 2009CW124 (03CW18, 92CW183). DELTA COUNTY. NORTH FORK GUNNISON RIVER. Patricia M. & Cecil B. Farnsworth, c/o Patrick, Miller & Kropf, P.C., 730 E. Durant Ave., Suite 200, Aspen, CO 81611, (970) 920-1028. APPLICATION FOR FINDING OF REASONABLE DILIGENCE. Name of structures: Farnsworth Spring S-1. Type: Spring. Farnsworth Collection Ditch. Type: Ditch. Describe conditional water rights giving the following from the Referee’s Ruling and Judgment and Decree: Date of original decree: March 16, 1995. Case No.: 92CW183. Court: District Court, Water Division No. 4. Legal description: Farnsworth Spring S-1: Delta County, SE ¼ of the NE ¼ of the SE ¼, Section 1, Township 14 South, Range 92 West, of the Sixth P.M. approximately 3,495 feet south of the North Section Line and 470 feet west of the East Section Line of said Section 1. Farnsworth Collection Ditch: Delta County, NW ¼ of the NW ¼ of the SW ¼ of Section 6, Township 14 South, Range 91 West of the Sixth Prime Meridian, the beginning point of the ditch being approximately 3,065 feet south of the North Section Line and 85 feet east of the West Section Line of said Section 6. Source: Farnsworth Spring S-1: Naturally arising spring water tributary to the North Fork Gunnison River. Farnsworth Collection Ditch: There are two sources of supply for the Farnsworth Collection, which include: Naturally arising spring water from the Farnsworth Springs S-1; and All water accreting to the collection ditch along its alignment, including, but not limited to, flows accreting from springs above the collection ditch. Appropriation date for both structures: September 1, 1984. Amount and uses: Farnsworth Spring S-1: Originally decreed for 0.134 cfs for piscatorial, aesthetic, commercial, and industrial uses. Case No. 03CW18 decreed 0.067 cfs absolute for all uses, leaving 0.067 cfs, conditional, for all uses. The remaining conditional amount, and uses, is the subject of this application. Farnsworth Collection Ditch: Originally decreed for 0.555 cfs for piscatorial, aesthetic, commercial, and industrial uses. Case No. 03CW18 decreed 0.067 cfs absolute for all uses, leaving 0.488 cfs, conditional, for all uses. The remaining conditional amount, and uses, is the subject of this application. Provide a detailed outline of what has been done toward completion or for completion of the appropriation and application of water to a beneficial use as conditionally decreed, including expenditures: During the last diligence period, Applicants have commenced the process of development of and subdividing the property into homes sites for subsequent use of these water rights. Applicants have attended meetings to determine proper procedure for the development of the property, and have commenced work on a Specific Development Application as required by Delta County. Applicants have also begun site work to prepare the property for the future home sites by clearing the property of brush and topsoil. Applicants have also engaged West Water Associates to discuss the development of potable and non-potable systems to use the water rights. Applicants have cleaned the Farnsworth Collection Ditch every other year to increase the flow of the Farnsworth Spring S-1 to Farnsworth Pond No. 1. Applicants are also conducting an engineering study to determine the feasibility study to determine cost effectiveness of piping the Farnsworth Collection Ditch. These diligence activities total approximately $16,500. Applicants have also engaged the services Patrick, Miller & Kropf, P.C. to monitor water rights applications, which could impact the subject water rights. The name and address of owner or reputed owners of the land upon which any new diversion or storage structure, or modification to any existing or diversion or storage structure is or will be constructed or upon which water is or will be or stored, including any modification to the existing pool: Applicants. Remarks or any other pertinent information: These water rights were originally decreed under the name of River Bottom Land Corporation, Inc. The Summary of Consultation for the original cases, 92CW180, 181, 182, 183, 184, & 185 combined all of the water rights under the ownership of River Bottom Land Corporation (aka Cecil and Patricia Farnsworth) even though the ownership of the two properties involved were owned by River Bottom Land Corporation, Inc. and Cecil and Patricia Farnsworth separately. In subsequent diligence proceedings, the Applicant has continued to be River Bottom Land Corporation. However, River Bottom Land Corporation, Inc. does not, and has never, owned the property on which these water rights are located. River Bottom Land Corporation no longer owns any property in Delta County as the other property involved in the original cases was recently conveyed to Cecil and Patricia Farnsworth. Applicants filed a Notice of Transfer of Conditional Water Rights concurrently to clarify the ownership for the Court’s records. Since the third quarter of 2007, the nation has been in a declared recession of a magnitude not experienced for at least 70 years. The current economic conditions are outside of the control of the Applicant and are impeding Applicants continuous and purposeful intention and acts to develop the conditional water right(s). Municipal Subdistrict, Northern Colorado Water Conservancy District v. Chevron,  986 P. 2d 918 (Colo. 1999). These economic conditions are to be considered by the Court when it considers the facts and circumstances of diligence activities during the diligence period. Dallas Creek Water Co. v. Huey, 933 P. 2d 27 (Colo. 1997). DELTA COUNTY.

CASE NO. 2009CW125. Applicant: Jeff and Suzanne Franz, 66580 Otter Road, Montrose, CO 81401. Application for Surface Water Right: Jeff’s Pond – SE ¼ SW ¼ of Section 3, T48N, R9W, NMPM. 841 feet from the south line and 2,363 feet from the west section line. Source: Dry Creek, Uncompahgre River: Appropriation Date: 07/08/2002. Amount Claimed: .05 cfs absolute for irrigation of 2 acres of lawn and garden and to fill and refill Franz Pond for subsequent supplemental irrigation, wildlife and recreation. MONTROSE COUNTY.

CORRECTED/AMENDED

CASE NO. 2006CW123. SECOND AMENDED APPLICATION FOR UNDERGROUND WATER RIGHTS, STORAGE RIGHTS, SURFACE RIGHTS, CHANGE OF WATER RIGHTS AND FOR APPROVAL OF PLAN FOR AUGMENTATION. Name, address, telephone number of applicant: Gunnison Valley Partners, LLC, 2 North Cascade Avenue, Suite 1280, Colorado Springs, CO 80403; Telephone (719) 633-4500 (Send all pleadings to John R. Hill, Jr., Bratton Hill Wilderson & Lock, LLC, 525 North Main, Gunnison, CO 81230 (970) 641-1903). DESCRIPTION OF PROJECT. This application is for the water supply for Gunnison Rising, a mixed land use development project in the Tomichi Valley ((the Project(). The water supply will consist of ditches and two wells. This amended application proposes a plan for augmentation in order to augment out-of-priority depletions resulting from calls from Tomichi Creek and from the Gunnison River downstream of Blue Mesa Reservoir. The Project will include residential housing, commercial/mixed use development, business park, conference center, federal/state office complex, RV resort village, business and research complex, equestrian center, parks, ponds and open space. The property is generally located in the N1/2 of Section 5, N1/2, of Section 6, Township 49 North, Range 1 East, N.M.P.M.; NE1/4NE1/4, S1/2NE1/4 Section 1, Township 49 North, Range 1 West, N.M.P.M.; SE1/4SW1/4 Section 30; all of Section 31 less the Gunnison Cemetery which is located in the SE1/4SE1/4 and the NE1/4NE1/4 of Section 31 Township 50 North, Range 1 East, N.M.P.M. ((Project Land() comprising approximately 871 acres. The property to be developed includes approximately 871 acres of which approximately 565 acres is currently irrigated meadow and pasture and the remainder is non-irrigated sage brush and rocky areas. Irrigation ultimately will be ceased on approximately 174.6 acres to accommodate streets, driveways, and buildings. Lands that are not dried up for the purposes described above will be converted to domestic lawn, landscape and garden uses, several ponds or will continue to be irrigated under existing water rights. Overall, the Project is expected to involve 900 residential units (630 single-family and 270 multi-family), 895,300 square feet of commercial area, a recreational resort involving up to 350 recreational vehicles, a western pavilion/equestrian center with up to 50 horses, and an elementary school for up to 300 pupils. Except for an estimated 29.8 acres to be supplied through the potable water system, the yard and landscape areas in the development will be irrigated by the existing ditches. Four ponds involving a total of 14 acres will be maintained in the development through the existing ditches. Return flows from all in-house use will be piped to the Gunnison waste water treatment plant, the outfall of which is located in the SW1/4SE1/4 Section 8, Township 49 North, Range 1 West, N.M.PM. and will return to the Gunnison River. The depletions due to in-house uses to Tomichi Creek and the Gunnison River between the reach of the Project and the outflow of the Gunnison wastewater treatment plat will be 100% of the amount diverted by the wells. The depletions to the Gunnison River downstream of the outflow of the treatment plant due to in-house uses will be equal to the consumptive use which is 5% of the amount diverted by the wells. In-house depletions will occur uniformly throughout the year. CLAIM NO. 1 APPLICATION FOR UNDERGROUND WATER RIGHT Name of well and permit, registration, or denial number: GARFIELD WELL NO. 1, Permit No. 236850 (exploratory). Permit not attached because well must be repermitted. Legal description of well: At a point in the NW1/4NE1/4 Section 6, Township 49 North, Range 1 East, N.M.P.M., in Gunnison County, approximately 650 feet from the north line and 1120 feet from the east line of said Section 6. Source: Tomichi Creek Alluvium. Depth: 120 feet. Date of appropriation: June 19, 2002. Initiation of appropriation: Appropriation was initiated on June 19, 2002 by construction of exploratory well. Amount claimed: 500 gpm conditional out of the Tomichi Creek alluvium. Proposed use: Municipal (including domestic and lawn and landscape irrigation), commercial, industrial, stock watering, piscatorial, wildlife and recreation. CLAIM NO. 2 APPLICATION FOR UNDERGROUND WATER RIGHT Name of well and permit, registration, or denial number. GARFIELD WELL NO. 2, Permit No. 236851 (exploratory). Permit not attached because well must be repermitted. Legal description of well: At a point in the NW1/4NW1/4 Section 5, Township 49 North, Range 1 East, N.M.P.M., in Gunnison County, approximately 1000 feet from the north line and 870 feet from the west line of said Section 5. Source: Tomichi Creek Alluvium. Depth: 93 feet. Date of appropriation: July 2, 2002. Initiation of appropriation: Appropriation was initiated on July 2, 2002 by construction of exploratory well. Amount claimed: 500 gpm conditional out of the Tomichi Creek alluvium. Proposed use: Municipal (including domestic and lawn and landscape irrigation), commercial, industrial, stock watering, piscatorial, wildlife and recreation. CLAIM NO. 3 APPLICATION FOR CONDITIONAL STORAGE RIGHT Name of reservoir: Gateway Pond North Description: Gateway Pond North will be located within the NE1/4SW1/4 of Section 31, Township 50 North, Range 1 East, N.M.P.M. approximately 2200 feet from the south line and 2300 feet of west line of said Section 31. Gateway Pond North will be an off-channel below grade reservoir. Source: Gunnison River. Name and capacity of ditch or ditches used to fill reservoir and legal description of each point of diversion: During the months of April through October reservoir will be filled and refilled by the water out of the Gunnison and Tomichi Valley Ditch Association Ditch, Ditch No. 17 First Enlargement at the rate of 2.5 cfs. Physical capacity of the ditch is estimated by Water Division 4 to be 60 cfs. During the months of November through March the reservoir will be filled and refilled by Adams Ranch Well, decreed for 0.1 cfs in Case No. 97CW144. Facts relating to appropriation: Date of Appropriation: May 11, 2006. Appropriation was initiated by formation of intent to appropriate and site reconnaissance. This application is for a conditional water right, the water has not yet been applied to beneficial use. Amount claimed: 25 acre-feet, conditional. Proposed Uses: Recreation, piscatorial, wildlife and aesthetic purposes. Surface area of high water line: 2.0 acres. Total capacity of reservoir: 25 acre-feet all of which is dead storage. CLAIM NO. 4 APPLICATION FOR CONDITIONAL STORAGE RIGHT Name of reservoir: Gateway Pond South. Description: Gateway Pond South will be located within the SE1/4SW1/4 of Section 31, Township 50 North, Range 1 East, N.M.P.M., approximately 250 feet from the south line and 1800 feet from the west line of said Section 31. Gateway Pond North will be an off-channel below grade reservoir. Source: Gunnison River. Name and capacity of ditch or ditches used to fill reservoir and legal description of each point of diversion: During the months of April through October reservoir will be filled and refilled by the water out of the Gunnison and Tomichi Valley Ditch Association Ditch, Ditch No. 17 First Enlargement at the rate of 2.5 cfs. Physical capacity of the ditch is estimated by Water Division 4 to be 60 cfs. During the months of November through March the reservoir will be filled and refilled by Adams Ranch Well, decreed for 0.1 cfs in Case No. 97CW144. Facts relating to appropriation: Date of Appropriation: May 11, 2006. Appropriation was initiated by formation of intent to appropriate and site reconnaissance. This application is for a conditional water right, the water has not yet been applied to beneficial use. Amount claimed: 25 acre-feet, conditional. Proposed Uses: Recreation, piscatorial, wildlife and aesthetic purposes. Surface area of high water line: 2.0 acres. Total capacity of reservoir: 25 acre-feet all of which is dead storage. CLAIM NO. 5 APPLICATION FOR CONDITIONAL STORAGE RIGHT Name of Reservoir: Peaceful Pond East Description: In the NW1/4NE1/4 and SW1/4NE1/4 of Section 4, Township 50 North, Range 1 East, N.M.P.M., approximately 1200 feet from the north line and 2400 feet from the east line of said Section 4. Peaceful Pond East will be an off-channel below grade reservoir. Source: Gunnison River. Name and capacity of ditch or ditches used to fill reservoir and legal description of each point of diversion: Biebel Ditches Nos. 1 and 2 First Enlargement. The reservoir will be filled at the rate of 7 cfs. The decreed location of the headgate of Ditch No. 1 is at a point on the north bank of Tomichi Creek from which the quarter corner between Sections 3 and 4, Township 49 North, Range 1 East, N.M.P.M. bears 73( West a distance of 930 feet. See Claim No. 8 for PLSS description. Estimated capacity is 60 cfs. Facts relating to appropriation: Date of Appropriation: May 11, 2006. Appropriation was initiated by formation of intent to appropriate and site reconnaissance. This application is for a conditional water right, the water has not yet been applied to beneficial use. Amount claimed: 70 acre-feet, conditional. Proposed Uses: Recreation, piscatorial, wildlife and aesthetic purposes. Surface area of high water line: 7.0 acres. Total capacity of reservoir: 70 acre-feet all of which is dead storage. CLAIM NO. 6 APPLICATION FOR CONDITIONAL STORAGE RIGHT Name of Reservoir: Peaceful Pond West Description: In the NW1/4NW1/4 Section 5, Township 50 North, Range 1 East, N.M.P.M. approximately 800 feet from the north line and 750 feet from the west line of said Section 5. Peaceful Pond East will be an off-channel below grade reservoir. Source: Tomichi Creek, a tributary of the Gunnison River. Name and capacity of ditch or ditches used to fill reservoir and legal description of each point of diversion: Biebel Ditches Nos. 1 and 2 First Enlargement. The reservoir will be filled at the rate of 3.0 cfs. The decreed location of the headgate of Ditch No. 1 is at a point on the north bank of Tomichi Creek from which the quarter corner between Sections 3 and 4, Township 49 North, Range 1 East, N.M.P.M. bears 73( West a distance of 930 feet. See Claim No. 8 for PLSS description. Estimated capacity is 60 cfs. Facts relating to appropriation: Date of initiation of appropriation: May 11, 2006. Appropriation was initiated by formation of intent to appropriate and site reconnaissance. This application is for a conditional water right, the water has not yet been applied to beneficial use. Amount claimed: 30 acre-feet, conditional. Proposed Uses: Recreation, piscatorial, wildlife and aesthetic purposes. Surface area of high water line: 3.0 acres. Total capacity of reservoir: 30 acre-feet all of which is dead storage. CLAIM NO. 7 APPLICATION FOR CONDITIONAL SURFACE RIGHT Name of Structure: Gunnison and Tomichi Valley Ditch Association Ditch, Ditch No. 17 First Enlargement Legal description of point of diversion: The decreed location of the headgate is at a point on the southeast bank of the Gunnison River whence the east quarter corner of Section 8, Township 50 North, Range 1 East, N.M.P.M. bears South 70(30( East a distance of 1,085 feet. The PLSS location determined by the Division Engineer is at a point in the SE1/4NE1/4 Section 8, Township 50 North, Range 1 East, N.M.P.M. at a point approximately 1977 from the north line and 729 from the east line of said Section 8. Source: Gunnison River Facts of appropriation: Date of initiation of appropriation: May 11, 2006. Appropriation was initiated by formation of intent to appropriate and site reconnaissance. Date water applied to beneficial use: Not applicable to conditional water right. Amount claimed in cubic feet per second: 2.5 cfs. Use or proposed use: Fill Gateway Pond North and Gateway Pond South for recreation, piscatorial, wildlife and aesthetic purposes. CLAIM NO. 8 APPLICATION FOR CONDITIONAL SURFACE RIGHT Name of Structure: Biebel Ditches Nos. 1 and 2 First Enlargement. Legal description of point of diversion: The decreed location of the headgate of Ditch No. 1 is at a point on the north bank of Tomichi Creek from which the quarter corner between Sections 3 and 4, Township 49 North, Range 1 East, N.M.P.M. bears 73( West a distance of 930 feet. The PLSS location determined by the Division Engineer is at a point in the NW1/4SW1/4 Section 3, Township 49 North, Range 1 East, N.M.P.M. at a point approximately 2119 feet from the south line and 1088 feet from the west line of said Section 3. Source: Tomichi Creek. Facts of appropriation: Date of initiation of appropriation: May 11, 2006.Appropriation was initiated by formation of intent to appropriate and site reconnaissance. Date water applied to beneficial use: Not applicable to conditional water right. Amount claimed in cubic feet per second: 7.0 cfs Use or proposed use: Fill Peaceful Pond East and Peaceful Pond West for recreation, piscatorial, wildlife and aesthetic purposes. CLAIM NO. 9 APPLICATION FOR CHANGE OF WATER RIGHT Decreed water right for which change is sought: Name of structure: Adams Ranch Well Date of original and all subsequent decrees including case number and court: District Court, Water Division No. 4 conditional on December 31, 1981 and absolute in Case No. 89CW4 on December 31, 1989. Legal description of structure: At a point in Section 31, Township 50 North, Range 1 East, N.M.P.M. approximately 1900 feet from the west line and 2300 feet from the north line of said Section 31. Decreed source of water: Tomichi Creek Appropriation date and total amount decreed to structure: February 5, 1981 for 0.10 cfs. Decreed use or uses: irrigation, stockwater and domestic use (domestic use was cancelled). Amount of water that Applicant seeks to change: 0.10 cfs Detailed description of proposed change: Applicant proposes to change the type of use and place of use of the entire 0.10 cfs to fill and refill Gateway Ponds and Peaceful Ponds located as described herein for recreation, piscatorial, wildlife and aesthetic purposes. CLAIM NO. 10 APPLICATION FOR CHANGE OF WATER RIGHTS Decreed water right for which change is sought: Name of structure: Biebel Ditches Nos. 1 and 2 Date of original and all subsequent decrees including case number and court: May 1, 1884 in Civil Action No. 946 and April 19, 1943 in Civil Action No. 2070 in the Gunnison County District Court. Legal description of structure: The decreed location of the headgate of Ditch No. 1 is at a point on the north bank of Tomichi Creek from which the quarter corner between Sections 3 and 4, Township 49 North, Range 1 East, N.M.P.M. bears 73( West a distance of 930 feet. The PLSS location determined by the Division Engineer is at a point in the NW1/4SW1/4 Section 3, Township 49 North, Range 1 East, N.M.P.M. at a point approximately 2119 feet from the south line and 1088 feet from the west line of said Section 3. Decreed source of water: Tomichi Creek Appropriation date and total amount decreed to structure: Multiple dates, see below for appropriation dates of amounts to be changed. Total amount decreed is 45.99 cfs. Decreed use or uses: Irrigation Amount of water that Applicant seeks to change: 4.56 cfs of Priority No. 1 appropriation date September 30, 1876 and 18.86 cfs of Priority No. 199 appropriation date September 30, 1876 Detailed description of proposed change: The beneficial use of the amounts stated above to municipal (including domestic and lawn and landscape irrigation), commercial, industrial, stock watering, piscatorial wildlife and recreation by using the historic consumptive use of said water rights as the replacement supply for the plan for augmentation outlined below. The place of use to all facilities served by Garfield Well No. 1 and Garfield Well No. 2, Gateway Pond North, Gateway Pond South, Peaceful Pond East and Peaceful Pond West. The point of diversion to the respective PLSS description above. Any additional amount that the Court may determine is necessary as replacement water to prevent injury to any vested water right or decreed conditional right. See attached engineering report for map of approximate location of historic use. CLAIM NO. 11 APPLICATION FOR CHANGE OF WATER RIGHTS Decreed water right for which change is sought: Name of structure: Gunnison and Tomichi Valley Ditch Association Ditch Date of original and all subsequent decrees including case number and court: September 14, 1906 in Civil Action No. 1325, October 25, 1921 in Civil Action No. 1635, April 29, 1941 in Civil Action No. 2021 all in Gunnison County District Court. Legal description of structure: The decreed location of the headgate is at a point on the southeast bank of the Gunnison River whence the east quarter corner of Section 8, Township 50 North, Range 1 East, N.M.P.M. bears South 70(30( East a distance of 1,085 feet. The PLSS location determined by the Division Engineer is at a point in the SE1/4NE1/4 Section 8, Township 50 North, Range 1 East, N.M.P.M. at a point approximately 1977 from the north line and 729 from the east line of said Section 8. Decreed source of water: Gunnison River Appropriation date and total amount decreed to structure: Multiple dates, see below for appropriation dates of amounts to be changed. Total amount decreed is 60.525 cfs. Decreed use or uses: irrigation. Amount of water that Applicant seeks to change: 2.06 cfs of Priority No. 11 decreed in Civil Action No. 1325; 1.37 cfs of Priority No. 76 decreed in Civil Action No. 1325; 1.08 cfs of Priority No. 94 decreed in Civil Action No. 1325; and 14.33 cfs of Priority No. 283 decreed in Civil Action No. 2021 Detailed description of proposed change: The beneficial use of the amounts stated above to municipal (including domestic and lawn and landscape irrigation), commercial, industrial, stock watering, piscatorial wildlife and recreation by using the historic consumptive use of said water rights as the replacement supply for the plan for augmentation outlined below. The place of use to all facilities served by Garfield Well No. 1 and Garfield Well No. 2, Gateway Pond North, Gateway Pond South, Peaceful Pond East and Peaceful Pond West. The point of diversion to the respective PLSS description above. Any additional amount that the Court may determine is necessary as replacement water to prevent injury to any vested water right or decreed conditional right. See attached engineering report for map of approximate location of historic use. CLAIM NO. 12 APPLICATION FOR CHANGE OF WATER RIGHTS Decreed water right for which change is sought: Name of structure: Gullet-Tomichi Irrigating Ditch Date of original and all subsequent decrees including case number and court: Civil Action No. 946 on May 1, 1884 and Civil Action No. 2079 on April 19, 1943 in Gunnison County District Court. Legal description of structure: On the north bank of Tomichi Creek at a point from whence the NE corner of Section 5, Township 49 North, Range 1 East, N.M.P.M. bears North 27( East a distance of 1915 feet. The PLSS location determined by the Division Engineer is at a point in the SE1/4NE1/4 Section 5, Township 49 North, Range 1 East, N.M.P.M. at a point approximately 1611 from the north line and 980 from the east line of said Section 5. Decreed source of water: Tomichi Creek. Appropriation date and total amount decreed to structure: Multiple dates, see below for appropriation dates of amounts to be changed. Total amount decreed is 39.0 cfs. Decreed use or uses: irrigation Amount of water that Applicant seeks to change: 4.08 cfs of Priority No. 19 in Civil Action No. 946; and 15.05 cfs of Priority No. 226 decreed in Civil Action No. 2079 on April 19, 1943. Detailed description of proposed change: The beneficial use of the amounts stated above to municipal (including domestic and lawn and landscape irrigation), commercial, industrial, stock watering, piscatorial wildlife and recreation by using the historic consumptive use of said water rights as the replacement supply for the plan for augmentation outlined below. The place of use to all facilities served by Garfield Well No. 1 and Garfield Well No. 2, Gateway Pond North, Gateway Pond South, Peaceful Pond East and Peaceful Pond West. The point of diversion of to the respective PLSS descriptions above. Any additional amount from any of the foregoing water rights that the Court may determine is necessary as replacement water to prevent injury to any vested water right or decreed conditional right. See attached engineering report for map of approximate location of historic use. CLAIM NO. 13 APPLICATION FOR APPROVAL OF PLAN FOR AUGMENTATION Names of structures to be augmented: Garfield Well No. 1, Garfield Well No. 2, Gateway Pond North, Gateway Pond South, Peaceful Pond East and Peaceful Pond West. None of the structures are decreed. Legal descriptions of structures: The descriptions are stated in Claims Nos. 1 through 6 respectively. Water rights to be used for augmentation: The water rights sought to be changed in Claims Nos. 10 through 12. See those claims for legal descriptions, sources, appropriation dates amounts and current uses. Applicant proposes to replace up to 50 acre-feet depletions occurring during the period October through April by exchange upstream from Blue Mesa Reservoir pursuant to Upper Gunnison River Water Conservancy District’s plan for augmentation for which approval is pending in Case No. 03CW49. Applicant will enter into a contract with Upper Gunnison River Water Conservancy District to participate in that plan. Complete statement of plan for augmentation. Generally, this plan for augmentation will operate by removal of land from irrigation as the Gunnison Rising development occurs and as necessary to generate consumptive use credits which will be applied against depletions resulting from development on the land after it is annexed and becomes a part of the City of Gunnison. The engineering report submitted herewith describes the methods for determining the consumptive use credits and the depletions. Table 15 of that report serves as the accounting form and provides the tool for the Division Engineer to use to insure that depletions are being replaced in time and amount. As noted above, Applicant or its successor will determine the acreage removed from irrigation under the three ditches at the beginning of each irrigation season. Applicant or its successor will continue to operate the three ditches and to divert water under the water rights. During periods when the ditches are running and water rights senior to the priority of the Garfield Wells are calling, water corresponding to the (effective deliveries to the fields( under the Biebel, Gullet-Tomichi, and Gunnison and Tomichi Valley Ditches for the acreages removed from irrigation will be carried to discharge locations at or near the end of the respective ditches, measured, and released to Tomichi Creek. The engineering report prescribes monthly factors to determine the amounts of the water to be returned to Tomichi Creek. Applicant or its successors will determine the consumptive use credits in acre-feet that will be available during May through September by application of factors contained in the engineering report. The Project will probably take several decades to complete. It is still in the early stages of formation and Applicant reserves the right to reallocate the consumptive uses to various types of development within the Project in an amount not exceeding the historic consumptive use of the ditches named in the Application and the water contract purchasing water out of the Wayne N. Aspinall Unit Name(s) and address(es) of owner(s) or reputed owners of the land upon which any new diversion or storage structure, or modification to any existing diversion or storage structure is or will be constructed or upon which water is or will be stored, including any modification to the existing pool: No modifications to any of the ditches contained in this application will be made. New structures will be constructed on land owned by Applicant, same address shown above. GUNNISON COUNTY.

CASE NO. 2009CW29. SAN MIGUEL COUNTY-SURFACE WATER TRIBUTARY TO the SAN MIGUEL River. Tim Erdman, c/o Tom Kinney, Esq., Hill, Kinney & Wood, LLC, 201 Main Street, Suite 301, Carbondale, Colorado 81623, (970) 963-3900. Amended Application for Surface Water Right. Applicant requests entry of a Decree awarding a conditional surface water right as follows: Big Cat Springs, Erdman Diversion, 0.111 cfs, conditional, for diversion of overflow from the Big Cat Springs and other surface water tributary to the San Miguel River at a diversion point located within an unsurveyed portion of unincorporated San Miguel County protracted as being within the NE¼NW¼ of Section 32, Township 43 North, Range 9 West of the New Mexico Principal Meridian at a point approximately 715 feet distant from the north section line and 2,800 feet distant from the east section line of said Section 32, which diversion point is also described by the following coordinate locations: UTM Zone 13 North (NAD 83), 4,204,223.83 meters North, 246,479.75 meters East, for irrigation of two (2) acres of land and fire protection purposes on Lots A and B according to the one-time exemption for Tract in Mineral Survey 260, Section 32, Township 43 North, Range 9 West, New Mexico Principal Meridian, recorded in San Miguel County in Plat Book 1 at Page 2615 on September 21, 1899, formerly known as that portion of the Extension of the Keystone Placer Claim Mineral Survey 260 U.S.M.D. in said Section 32, and which parcel of land is now known as Lots A & B of the Vela Replat and also as 11 Nimbus Drive, Telluride, Colorado 81435, with an appropriation date of March 11, 2009. Current owner of parcel of land upon which diversion point is located is Applicant’s Erdman Energy Enterprise, LLC, a Wisconsin limited liability company, according to the records of the San Miguel County Assessor. (5 pages with attached Exhibit A (map)). SAN MIGUEL COUNTY.

YOU ARE FURTHER NOTIFIED THAT you have until the last day of November, 2009 to file with the Water Clerk, in duplicate, a Verified Statement of Opposition setting forth facts as to why a certain application should not be granted or why it should be granted only in part or on certain conditions. A copy of such a Statement of Opposition must also be served upon the applicant or the applicant’s attorney and an affidavit of certificate of such service shall be filed with the Water Clerk, as prescribed by C.R.C.P. Rule 5. (Filing fee: $158.00; Forms may be obtained from the Water Clerk’s Office or on our website at courts.state.co.us). DARLEEN CAPPANNOKEEP, Water Clerk, Water Division 4, 1200 N. Grand Ave., Bin A, Montrose, CO 81401

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