District Court, Water Division 6, Colorado

DISTRICT COURT, WATER DIV. 6, COLORADO TO ALL PERSONS INTERESTED IN WATER APPLICATIONS IN WATER DIV. 6

Pursuant to C.R.S. 37-92-302, you are hereby notified that the following pages comprise a resume of Applications and Amended Applications filed in the office of Water DIV. 6, during the month of August, 2008.

1. 08CW3 (00CW60, 81CW200) JACKSON COUNTY Amended Application for Finding of Diligence and to Make Absolute. Walden Reservoir Co., c/o Stanley W. Cazier or John D. Walker, P.O. Box 500, Granby, CO 80446 970-887-3376. Name of structure: Walden Reservoir (Old S.C. Ditch Enlargement and Extension). Describe conditional water right (as to each structure) giving the following from the Referee’s Ruling and Judgment and Decree: Date of Original Decree: October 14, 1982. Case No: 81CW200 Court: Water Division No. 6. Location and legal description for the structures are: Walden Reservoir: The outlet is located 50 feet West of the East Section line and 2150 feet North of the South Section line of Section 19, T9N, R79W of the 6th P.M. Old S.C. Ditch: Headgate is located at a point on the West Bank of the Michigan River whence the 1/4 Corner between Sections 17 & 18, T8N, R78W of the 6th P.M., bears North 72 degrees, 05 minutes West a distance of 3483 feet. Point of diversion from Old S.C. Ditch to Illinois River Basin: Point of diversion bears South 88 degrees, 43 minutes West, 4283 feet from the East 1/4 Corner of Section 34, T9N, R79W, of the 6th P.M. Source of Water: Michigan River via the Old S.C. Ditch Enlargement and Extension to the Illinois River, all tributary to the North Platte River. Appropriation/Priority Date: April 1, 1981. Amount of Water: 20 cfs conditional, 20 cfs has previously been made absolute. Use of Water: Irrigation, storage and supplemental supply water for storage and/or subsequent release for irrigation in and from Walden Reservoir under and pursuant to all irrigation/storage decrees and refill decrees adjudicated and owned by Walden Reservoir Company. 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: Since the time of the last due diligence finding, the applicant has incurred expenses and labor costs for necessary equipment to clean and enlarge the Old S.C. Ditch. Due to the length of the ditch, which spans approximately four (4) miles, such work has been done as financial resources were available, but additional work remains to be done in order to expand the carrying capacity of the ditch for its entire length. At the present time, restrictions, such as willows and ditch width and depth, exist which limit the overall carrying capacity, however, an additional 2.7 cfs has been diverted and should be decreed absolute. If claim to make absolute: Water applied to beneficial use: Date: October 3, 2007 Amount: 2.7 Use: Irrigation. Description of place of use where water is applied to beneficial use: Walden Reservoir and released for irrigation to shareholders. Names(s) and address(es) of owner(s) of the land on which any structure is or will be located, upon which water is or will be stored, or upon which water is or will be placed to beneficial use. The ditch headgate location is owned by Owl Creek Ranch, Donald Culver,41881 Hwy 14, Walden, CO. The reservoir is owned by Walden Reservoir Company, c/o Carl Trick, PO Box 15, Cowdrey, CO, 80434. The water is used on property owned by Walden Reservoir shareholders who are: North Park Angus Ranch, Inc., PO Box 15, Cowdrey, CO 80434; Carl & Marion Trick, PO Box 15, Cowdrey, CO 80434; Robert K. Willford, 41344 Hwy 125, Cowdrey, CO 80434; Silver Spur Ranches, c/o Newell Geer, PO Box 1060, Walden, CO 80480; Hackleman, Loban LLC, c/o Tom Hackleman, PO Box 35, Cowdrey, CO 80434; Walden Ventures, LLC, c/o Wayne Morgan, 5775 29th St. #804, Greeley, CO 80634; Town of Walden, PO Box 489, Walden, CO 80480; Colorado Division of Wildlife, 6060 Broadway, Denver, CO 80216.

2. 08CW41 (01CW56, 95CW2) ROUTT COUNTY Amended Application for Finding of Diligence. John W. Soileau, 3229 Highway 17 North, Greencove Springs, FL 30243 904-284- 4021. Name of structure: Dennis & Blewitt Ditch 3rd Enlargement. Type: Ditch. Describe conditional water right: Date of Original Decree: July 12, 1995. Case No. 95CW02. Court: Water Division No. 6. Legal description: Routt County, NE4, NW4, Sec 16, T6N, R86W, 6th PM., a point 200 ft from N and 1700 ft from W Sec Line. Source: Yampa River. Appropriation date: January 9, 1995. Amount: 2.0 cfs, conditional. Use: Irrigation of 60 acres in the NW4, Sec 16 and the NE4, Sec 17. Provide a detailed description of what has been done: The ditch has been cleaned out and enlarged to allow the free flow of the water, the installation of a metal headgate with mechanical slide gate ($1,400), the installation of two 48” culverts ($2,200) to allow for diverging water into parallel ditches to improve methods of irrigating. The purchase of several truck loads of large boulders ($4,000) to be installed upstream to improve the diversion into the headgate of the primary ditch. Landowner: Applicant.

3. 08CW49 (80CW255, 85CW44, 89CW39, 95CW34, 01CW92) ROUTT COUNTY Application for Finding of Reasonable Diligence. The City of Steamboat Springs (“Steamboat Springs”), Attn: Public Works Director, P.O. Box 775088, Steamboat Springs, CO 80477-5088, Telephone: 970 879-2060. Please send all pleadings to: Douglas M. Sinor, Esq., Trout, Raley, Montaño, Witwer & Freeman, P.C., 1120 Lincoln Street, Suite 1600, Denver, CO 80203. Name of structure: Fish Creek Reservoir. This application involves the conditional water storage right decreed for 2,000 acre-feet in Case No. 80CW255, District Court, Water Division 6, April 30, 1981. The subject water right shall be referred to hereafter as the “Fish Creek Reservoir 2,000 Acre-Foot Enlargement.” For clarification, a water storage right in the amount of 1,175.4 acre- feet was previously decreed to fill Fish Creek Reservoir in Civil Action No. 2475, Routt County District Court, June 19, 1958. A water storage right in the amount of 666.6 acre-feet was previously decreed for the Fish Creek Reservoir Enlargement in Civil Action No. 3538, Routt County District Court, March 30, 1964. Also, a water storage right in the amount of 200 acre- feet was decreed to the Fish Creek Reservoir, Second Enlargement in Case No. 99CW22, District Court, Water Division 6, April 9, 2001. Description of conditional right from original decree: Date of original decree: April 30, 1981. Case No.: 80CW255. Court: District Court, Water Division No. 6. Legal description: The location of Fish Creek Reservoir 2,000 Acre-Foot Enlargement is: Initial point of the survey (at North end of main dam) is located at a point whence the SE corner of Section 32, T7N, R84W of the 6th P.M., bears North 77 Degrees 53 Minutes West 33,368 feet. Source of Water: The application in Case No. 80CW255 claimed the Middle Fork of Fish Creek, tributary to the Yampa River as the source. Fish Creek Reservoir dam is located on the Middle Fork of Fish Creek channel. The Reservoir inundates the confluence of Granite Creek and the Middle Fork of Fish Creek. The decree entered on July 8, 2002, in Case No. 01CW92, confirmed that Steamboat Springs may store inflows from the Middle Fork of Fish Creek and Granite Creek in Fish Creek Reservoir pursuant to the subject conditional water right. Appropriation Date: December 16, 1980. Amount: 2,000 acre-feet, conditional. Use: The decree in Case No. 80CW255 did not specify the uses associated with the subject conditional water storage right. The decree entered on July 8, 2002, in Case No.

PAGE 2 01CW92 confirmed that water stored pursuant to the subject conditional right may be used for all municipal purposes including but not limited to domestic, irrigation, watering of lawns, parks and grounds, industrial, manufacturing, commercial, power generation, fire protection, evaporation, recreation, and fish and wildlife propagation. Diligence decrees: Following entry of the original decree, findings of reasonable diligence with respect to the Fish Creek Reservoir 2,000 Acre-Foot Enlargement were made in the District Court, Water Division 6, in Case Nos. 85CW44, 89CW39, 95CW34, and 01CW92. Detailed outline of what has been done toward completion of the appropriation: The Fish Creek Reservoir 2,000 Acre-Foot Enlargement is one feature of Steamboat Springs’ municipal water system, which is an integrated system consisting of water rights on the Yampa River and its tributaries, a water treatment and delivery system, and wastewater treatment plant. Work and expenditures on any feature of the municipal water system benefit the whole system and its individual parts such that any such work or expenditures should be considered in finding that reasonable diligence has been shown in the development of water rights for all features of the Steamboat Springs municipal water system. Fish Creek Reservoir is owned by Steamboat Springs and operated by Mount Werner Water and Sanitation District (“Mount Werner”). Regular Maintenance and Operation of Fish Creek Reservoir : Steamboat Springs and Mount Werner have regularly maintained and operated Fish Creek Reservoir every year during the diligence period. Steamboat Springs spent approximately $10,000 on operation and maintenance of the Fish Creek Reservoir and dams from 2002 through 2007. In 2007, Steamboat Springs staff spent approximately 30 hours inspecting the Fish Creek Reservoir dams, identifying and providing collection and measuring areas to quantify all damp or wet areas located below both dams on the reservoir. Watershed protection ordinance: During the diligence period, Steamboat Springs developed and adopt a watershed protection ordinance to protect Steamboat Springs’ water rights, including the subject water rights stored in Fish Creek Reservoir. The ordinance was adopted on May 15, 2007. Steamboat Springs expended approximately $24,000 in legal fees in connection with adopting the ordinance. Wastewater Treatment Plant Expansion: During the diligence period, Steamboat Springs and Routt County worked to control and identify areas for urban development within the Steamboat Springs area. In support of the potential development within the West of Steamboat Springs area, Steamboat Springs pursued the acquisition of additional storage capacity. Steamboat Springs also negotiated an agreement with Mount Werner concerning operation and maintenance of the water treatment plant and associated water supply lines. Steamboat Springs also completed an expansion of the Steamboat Springs Wastewater Treatment Facility in the fall of 2002 at a consultant cost of $943,678. West Steamboat Water Tank: Steamboat Springs also entered into an agreement to share in the capacity and cost of a one million gallon water tank with the Steamboat II Water and Sanitation District. This tank will stabilize and support the water supply to the west side of the water system and the future West of Steamboat Springs area. During the diligence period, Steamboat Springs expended approximately $306,000 toward completion of this water tank project. SCADA System: During the diligence period, Steamboat Springs participated with Mount Werner in the installation of a “SCADA” system to connect all the outlying water facilities to the water treatment plant in order to improve the operation of the water system. Steamboat Springs’ share of the cost of this installation was $144,500. In 2006, Mount Werner updated the SCADA system for the Fish Creek water treatment plant. Skyline Water Tank: During the diligence period, Steamboat Springs designed and constructed a one million gallon water tank referred to as the Skyline Tank, formerly the East High Zone, at a cost

PAGE 3 of $ 652,745. Flow Line Upgrade: During the diligence period, Steamboat Springs spent $23,710 in order to upsize the flow line from the water treatment plant. Water Rights Inventory: In 2002, Steamboat Springs’ consultants completed a water rights inventory study designed to facilitate protection and better use of Steamboat Springs’ water rights, including the subject water rights. The total cost for this study was $3,290. Raw Water Master Plan: During the diligence period Steamboat Springs began the development of a raw water master plan and an engineering study to determine the firm yield of Steamboat Springs’ water rights, including Fish Creek Reservoir water rights. To date, Steamboat Springs has expended approximately $60,000 on consulting fees for this work. Litigation: During the diligence period, Steamboat Springs’ counsel reviewed the monthly water court resume and filed statements of opposition to protect the subject conditional water right from injury, and expended at least $5,700 in legal fees in connection with the statements of opposition. Fire mitigation: Steamboat Springs is currently working with the United States Forest Service on a fire mitigation plan in connection with the pine beetle infestation problem on lands around the Fish Creek Reservoir. Name and address of owner of 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 storage pool: United States Forest Service, 925 Weiss Drive, Steamboat Springs, CO 80487. WHEREFORE, the Applicant respectfully requests that the Court enter an order finding that the Applicant has exercised reasonable diligence toward completion of appropriation of the conditional water storage right decreed to the 2,000 acre-feet enlargement of Fish Creek Reservoir in Case No. 80CW255 and continuing said conditional water storage right in full force and effect for another six year period.

4. 08CW52 MOFFAT COUNTY Application for Water Rights to Preserve the Natural Environment to a Reasonable Degree. Colorado Water Conservation Board, c/o John W. Suthers Attorney General, Devin Odell, Assistant Attorney General, 1525 Sherman Street, 5th Floor, Denver, CO 80203 303-866-5017. Name of natural stream: Little Cottonwood Creek. Location: Legal description of the stream segment through which an instream flow is claimed: The natural stream channel from the headwaters in the vicinity of latitude 40º 46’ 35.77”N and longitude 107º 24’ 11.2”W as the upstream terminus and extending to the inlet of Freeman Reservoir at latitude 40º 45’ 54.52”N and longitude 107º 25’ 20.93”W as the downstream terminus, being a distance of approx 1.45 miles. This segment can be located on the Freeman Reservoir U.S.G.S. quadrangle. For administrative purposes only: Upper Terminus = NE SW S32 T10N R89W 6th PM, 1467’ North of the South Section Line, 2221’ East of the West Section Line UTM North: 4516736.8 UTM East: 297204.9. Lower Terminus = NE SW S6 T9N R89W 6th PM 2447’ North of the South Section Line, 1675’ East of the West Section Line UTM North: 4515509.6 UTM East: 295535.1. Date of initiation of appropriation: January 28, 2008. Date water applied to beneficial use: Water was first applied to beneficial use on January 28, 2008. How appropriation was initiated: At its regular meeting on January 28, 2008, the Colorado Water Conservation Board appropriated this water right pursuant to the Rules Concerning the Colorado Instream Flow and Natural Lake Program, 2 CCR 408-2. Amount of water claimed (ABSOLUTE): Instream flow of 0.7 cfs (April 1 – June 30). Remarks: This appropriation is made pursuant to the provisions of Sections 37-92-102(3) and (4) and 37-92-103(3), (4) and (10), C.R.S. (2007). The purpose of this appropriation by the State of Colorado is to preserve the natural environment to a reasonable degree. At its regular meeting on May 20, 2008, the Board determined that the natural environment will be preserved to a reasonable degree by the water PAGE 4 available for the appropriation to be made; that there is a natural environment that can be preserved to a reasonable degree with the Board’s water right herein, if granted; and that such environment can exist without material injury to water rights. This Application is for an instream flow water right, exclusive to the CWCB pursuant to section 37-92-102(3) C.R.S., and as such there are no proposed diversion structures or storage involved, nor does it effect ground water described in section 37-90-137(4), C.R.S.. See City of Thornton By and Through Utilities Bd. v. City of Fort Collins, 830 P.2d 915, 931 (Colo., 1992) (“A minimum stream flow does not require removal or control of water by some structure or device. A minimum stream flow between two points on a stream or river usually signifies the complete absence of a structure of device.”). Therefore, the notice provision contained in section 37-92-302(2)(b) C.R.S. is not applicable.

5. 08CW55 (01CW101, 95CW72) ROUTT COUNTY Amended Application to Make Conditional Water Right Absolute. Seneca Coal Company, c/o Joseph Adams Cope, 4750 Table Mesa Drive, Boulder, CO 80305-5575 (303)494-3000. Name of structure: Seneca Yoast Mine Pond 010. Describe the conditional water right: Date of original decree: January 31, 1996. Case No. 95CW72, Water Division No. 6. Diligence Decree: July 17, 2002. Case No. 01CW101, Water Division No. 6. Location: The center of the dam embankment is located in the NW ¼, NE ¼ of Section 8, Township 5 North, Range 87 West of the 6th P.M., 1100 feet from the north section line and 1600 feet from the east section line of said Section. Source: Unnamed tributary of Scotchman’s Gulch, tributary to Grassy Creek and the Yampa River. Appropriation date: August 5, 1994. Amount: 34.63 acre feet, together with the right to fill and refill. Use: Augmentation and non-potable uses at the Seneca Yoast Mine, including dust suppression, equipment washing, reclamation and flood control. Detailed outline of what has been done toward completion of the appropriation and application of water to a beneficial use: Mining of coal at the Seneca Yoast Mine Pond 010 has been terminated, and the mine is now exclusively in the reclamation phase. Seneca Yoast Mine Pond 010 is an element of the Colorado Division of Reclamation, Mining and Safety approved reclamation plan for the mine. In accordance with the plan, the water stored in Pond 010 is being used for reclamation purposes, specifically sediment control, and wildlife and livestock watering. If claim to make absolute: Water applied to beneficial use: Date: February 28, 2006. Amount and Units: 5.3 ac-ft. Use: Reclamation purposes, specifically sediment control, and wildlife and livestock watering. Description of place of use: Seneca Yoast Mine Pond 010. Landowner: Applicant.

6. 08CW56 MOFFAT COUNTY Application for Conditional Underground Water Right. Wexpro Company, P.O. Box 458, Rock Springs, WY 82902 c/o Anne J. Castle, William H. Caile, Holland & Hart, LLP, 555 17th Street, Ste. 3200, P.O. Box 8749, Denver, CO 80201- 8749. Telephone: 303-295-8000, Fax: 303-295-8261. Email: [email protected], [email protected]. Name of Well and Permit Number: Powder Wash Unit Well No. 1 Deep Water Well, Permit No. 28953-F. A copy of the well permit is in court file. Legal Description: The Powder Wash No. 1 is located in the SE1/4 of the NW1/4 of Section 29, Township 12 North, Range 97 West of the 6th P.M. at a distance of 2243 feet from the North Section Line and 2262 feet from the West Section Line, Moffat County, Colorado. An area map depicting the approximate location of the subject well is in the court file. Source and Depth Source: Ground water from the Wasatch Formation, in the drainage of Powder Wash. Total

PAGE 5 depth of well: Approximately 830 feet. Appropriation: Date of Appropriation: August 6, 2008. How appropriation was initiated: By formation of requisite intent to appropriate coupled with actions manifesting an intent sufficient to put third parties on notice, including, but not limited to site investigations and the filing of this Application together with the filing of an Application for a Water Well Permit with the Colorado State Engineer’s Office. Date water applied to beneficial use: N/A. Amount Claimed: 45 gallons per minute, with an annual withdrawal not to exceed 71 acre feet, CONDITIONAL. Proposed Uses: Industrial including road construction and maintenance, dust suppression and abatement, and uses associated with oil and gas drilling, completion, work-over, reclamation and revegetation, and production operations. Names and Addresses of Owners or Reputed Owners of the Land Upon Which Structures are Located: United States Department of Interior, Bureau of Land Management, 455 Emerson Street, Craig, Colorado 81625. Remarks: The Powder Wash No. 1 was originally issued a well permit for use as a drilling water supply for the construction of a natural gas well. The original permit provided that the Powder Wash No. 1 was to be plugged and abandoned after completion of the gas well drilling operations, and no further use of ground water from the well could occur without an appropriate well permit from the Division of Water Resources (“Division”). The well was capped after completion of the original use. Concurrently with this Application, Wexpro is filing with the Division a General Purpose Water Well Permit Application for use of an existing well to allow ground water from the Powder Wash No. 1 to be used in connection with Wexpro’s operations in the Powder Wash oil field and specifically in the Powder Wash, Jacks Draw, and Ace units. A map depicting the area of use is in the court file. No designated ground water: The ground water claimed in this application is not located within the boundaries of any existing designated ground water basin. No injury: There is unappropriated water available in the Powder Wash Basin such that the water rights claimed herein will not cause injury to vested water rights. Therefore, a plan for augmentation is not required and no such plan is sought herein. Conditional Water Right: Pursuant to C.R.S. § 37-92-305(9)(b), the conditional water right sought herein can and will be diverted, stored, or otherwise captured, possessed, and controlled and will be beneficially used and the project can and will be completed with diligence and within a reasonable time. Notice to Landowner: Applicant has provided all notices required by law prior to or concurrent with the filing of this application.

7. 08CW57 (02CW69) MOFFAT COUNTY Application to Make Absolute. Paul D. Brennan, P.O. Box 272, Walsenburg, CO 81089 970-301-2453 Cell, 719-738-6550 Home. Name of structure: Brennan Diversion. Type: Ditch. Describe conditional water right: Date of Original Decree: February 26, 2003. Case No. 02CW69. Court: Water Div. #6. Legal description: Moffat County, SW4, NE4, Sec 34, T11N, R89W, 6th PM, 2640 ft from N and 2150 ft from W sec line. Street address: 389 Routt Forest Loop Drive. Subdivision: Wilderness Ranch. Lot 882. Block: Filing #15. Source: Runoff, tributary to Beaver Creek, tributary to Slater Creek, tributary to Little Snake River. Appropriation date: August 26, 2002. Amount: 0.033 cfs. Use: Domestic and Livestock. Provide a detailed outline of what has been done toward completion: Rented trencher ($100) and buried a total 375’ of pipe ($300) from diversion point, along county road right-of-way to property corner, then on property to Cabin area. Set removable pump ($250) at diversion point, installed a stock tank ($100), and the necessary valves for seasonal drain-down of system ($50). Above ground hoses ($50) are used to distribute water in immediate cabin area when system is active. If claim to make absolute:

PAGE 6 Date water applied to beneficial use: September 22, 2007. Amount: 0.033 cfs. Use: Domestic and livestock. Description of place of use: Single family seasonal cabin consisting of 1,792 square feet with a log exterior and metal roof, a stock watering tank, and a small seasonal pond immediately behind cabin for wildlife and fire fighting purposes. Landowner: Moffat County, Colorado, 221 W. Victory Way, Craig, CO 81625.

8. 08CW58 ROUTT COUNTY Application for Water Rights (Surface). Timber’s Village Homeowners Association, Judith Ryan, President, P.O. Box 881007, Steamboat Springs, CO 80477 879-6927. Map in court file. Name of structure: Timber Spring No. 1. Legal description: Routt County. NW4, SE4, Sec 22, T5N, R84W, 6th PM, 2390 ft from S and 1570 ft from E sec line. Optional additional description: Were points averaged? Yes. Northing 4471026m Easting 347739m Zone 13. Source: Spring tributary to Yampa River. Date of initiation of appropriation: 08/01/2008. How appropriation was initiated: By measuring spring and developing plan to use water. Date water applied to beneficial use: NA. Amount claimed: .022 cfs Conditional. Use: Irrigation and firefighting. If irrigation, number of acres historically irrigated: 0.0. Proposed to be irrigated: 1.0. If non-irrigation, describe purpose fully: Water will be piped to a storage area with a dry hydrant for firefighting purposes. Landowner: Applicant. Remarks: This is the same spring as decreed in 80CW75. The water from the spring was never put to beneficial use by the original applicants in 80CW75 or successors.

The following are amended applications previously published:

9. 06CW57 ROUTT COUNTY 2nd Amended Application for Surface Water Rights, Water Storage Rights and Underground Water Rights. Eagle 4031 LLC, a Colorado limited liability company, c/o Scot Sellers, 9200 E. Panorama Circle #400, Englewood, CO 80112, (303) 708- 5959. Direct Pleadings To: Margaret O’Donnell, Margaret O’Donnell, P.C., P.O. Box 773572, 602 Oak Street, Steamboat Springs, CO 80477. Name of structure: Price Ditch-Sellers Enlargement. Legal description of point of diversion: A. Price Ditch Decreed Point of Diversion: The Price Ditch Sellers Enlargement decreed point of diversion is located on the right or West bank of the Elk River at a point distant South 70 degrees East-35 chains from the 1/4 corner on the West side of Section 6, Township 6 North, Range 85 West of the 6th P.M. in Routt County. Map in court file. B. Price Ditch Quarter/ Quarter Legal Description: The Price Ditch point of diversion is located in the NE1/4 NW1/4 of Section 7, Township 6 North, Range 85 West at a distance of 694 feet from the North and 1519 feet from the West section liner, Township 6 North, Range 85 West of the 6th P.M. in Routt County. Source: The Elk River. Date of initiation of appropriation: 7/18/2006. How appropriation was initiated: by the demonstrated conjunction of intent to appropriate and overt actions, including but not limited to, the purchase of the property and the hiring of engineering and legal professionals to advise concerning the construction and adjudication of the Price Ditch Sellers Enlargement to fill and refill the Eagle Pond for beneficial uses on Applicant’s property. Amount claimed: 2.27 cfs, absolute. Use or proposed use: The water in the Price Ditch- Sellers Enlargement will be diverted for storage in the Eagle Pond for the end uses of recreation, aesthetics, piscatorial, stock watering, and wildlife watering and will be located on Applicant’s property in the E1/2 SE1/4, Section 12 and in the N1/2 SW1/4, Section 7, Township 6 North, Range 85 West, 6th P.M., Routt County, CO (Subject Property”). Ownership of land on which diversion structure is

PAGE 7 located: Connell, LLC, c/o Tony Connell, P.O. Box 882590, Steamboat Springs, CO 80488; Connell, LLC 4305 East Harmony Road, Fort Collins, CO 80528. APPLICATION FOR UNDERGROUND WATER RIGHT. Name of structure: Eagle Well/Pond. Applicant is submitting a well permit application concurrently with this application. Legal description of Well: The Eagle Pond is located in the NW1/4 SW1/4, Section 7, at a point 817 feet East of the West Section line and 2218 feet North of the South Section line, Township 6 North, Range 85 West of the 6th P.M., Routt County, Colorado. Source: groundwater, tributary to the Elk River, tributary to the Yampa River. Depth: 12 feet. Appropriation: Date of appropriation: July 18, 2006. How appropriation was initiated: by formation of requisite intent to appropriate coupled with overt actions manifesting such an intent sufficient to put third parties on notice, including but not limited to, the purchase of the property and the hiring of engineering and legal professionals to advise concerning the construction and adjudication of Eagle Pond for beneficial use on Applicant’s property, and the excavation of the Eagle Pond. Amount claimed: 1.0 cfs, 2.26 acre feet, absolute. Uses: recreation, aesthetics, piscatorial, stock watering, and wildlife watering beneficial uses. APPLICATION FOR WATER STORAGE RIGHTS. Name of reservoir(s): Eagle Pond. Legal description of location of dam: The Eagle Pond is located in the NW1/4 SW1/4, Section 7, at a point 817 feet East of the West Section line and 2218 feet North of the South Section line, Township 6 North, Range 85 West of the 6th P.M., Routt County, Colorado. Source: Elk River, tributary of Yampa River. Appropriation: Date of appropriation: July 18, 2006. How appropriation initiated: by formation of requisite intent to appropriate coupled with overt actions manifesting such an intent sufficient to put third parties on notice, including but not limited to, the purchase of the property and the hiring of engineering and legal professionals to advise concerning the construction and adjudication of Eagle Pond for beneficial use on Applicant’s property. Amount claimed: 4.5 acre feet, absolute. Eagle Pond is an off- channel reservoir and may be filled and refilled by the Price Ditch Sellers Enlargement and groundwater as applied for herein when said water rights are in priority, at a rate of flow of 2.27 cfs. Proposed use: If irrigation, complete the following: N/A. If non-irrigation: water stored in Eagle Pond will be used for recreation, aesthetics, piscatorial, stock watering, and wildlife watering beneficial uses. Surface area, area of high water line, maximum height of dam in feet, length of dam in feet, total capacity of reservoir in acre feet, active capacity, dead storage: Structure Surface Maximum Length of Total Active Dead area of height of dam in feet capacity of storage in storage in high water dam in feet reservoir in acre feet acre feet line acre feet Eagle Pond 1 acre 9.5 feet 100 feet 4.5 acre 4.5 acre 0 feet feet Name and address of owner or reputed owner 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 storage pool. Applicant. Remarks: Applicant has intercepted groundwater during the excavating of Eagle Pond and is amending its application to obtain a decree for an underground water right in addition to the surface water right and storage water right previously applied for. The underground water right will supplement the direct flow right to keep the water stored therein at a suitable temperature for piscatorial purposes, among others, and as a supplemental source of PAGE 8 water should the capacity in Price Ditch be insufficient to physically accommodate Applicant’s junior direct flow right during times other senior water rights are diverting through the Price Ditch. Applicant requests a decree confirming that all notice and jurisdictional requirements have been satisfied under C.R.S Section 37-92-302 and 37-90-137, approval of the applied for appropriation date, and establishing the amount and uses requested herein for the Price Ditch- Sellers Enlargement surface water right, a storage right for the Eagle Pond, and underground water right, and grants to Applicant such other relief as the Court deems just and proper.

You are hereby notified that you will have until the last day of October 2008, to file with the Water Court 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 Statement of Opposition must be served on the Applicant or the Applicant's Attorney, with an affidavit or certificate of such service being filed with the Water Court, as prescribed by Rule 5, C.R.C.P. The filing fee for the Statement of Opposition is $158.00, and should be sent to the Clerk of the Water Court, DIV. 6, P.O. Box 773117, Steamboat Springs, CO 80477.

ROUTT COUNTY COMBINED COURT WATER DIV. 6 By: /s/ Connie Strasheim Court Judicial Assistant

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