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 January 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. 2009CW1 (REF NO. 02CW94). Applicant: Last Hope, Inc., C./O Dennis Larratt, President, 10990 N. Sunshine Drive., Littleton, CO 80125-9432. Application For Finding of Diligence: Star Mill and Sawmill Pipeline – point of diversion at Cirque I intake in unsurveyed area of Gunnison County, described as SW ¼ SW ¼ of Section 35, T12S, R84W, 6th PM, at a point whence United States Mineral Monument 5944 bears N 81°25’48” East 2597 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 0.18 cfs conditional for mining, milling, domestic, industrial and power generation. Mill and Camp Water Line – point of diversion at Cirque I intake in unsurveyed area of Gunnison County, described as SW ¼ SW ¼ of Section 35, T12S, R84W, 6th PM, at a point whence United States Mineral Monument 5944 bears N 81°25’48” East 2597 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 2.96 cfs conditional for mining, milling, domestic, industrial, power generation and mill slurry Conveyance. Star Low Dam Feeder – point of diversion at Cirque I intake in unsurveyed area of Gunnison County, described as SW ¼ SW ¼ of Section 35, T12S, R84W, 6th PM, at a point whence United States Mineral Monument 5944 bears N 81°25’48” East 2597 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 17.04 cfs conditional for storage in Star Low Dam Reservoir, direct flow feed to Falls Reservoir Pipeline for uses proposed for Falls Reservoir Pipeline, direct flow feed to Mill and Camp Water Line for uses proposed for Mill and Camp Water Line. Star Low Dam Feeder II – point of diversion at Cirque II intake in unsurveyed area of Gunnison County, described as W ½ SW ¼ of Section 35, T12S, R84W, 6th PM, at a point whence United States Mineral Monument 5944 bears S 71°26’33” East 2805.89 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 5.0 cfs conditional for storage in Star Low Dam Reservoir, direct flow feed to Falls Reservoir Pipeline for uses proposed for Falls Reservoir Pipeline, direct flow feed to Mill and Camp Water Line for uses proposed for Mill and Camp Water Line. Mine Adit Ditch and Pipeline – point of diversion located in an unsurveyed area of Gunnison County, described as NW ¼ SW ¼ of Section 35, T12S, R84W, 6th PM, at a point whence United States Mineral Monument 5944 bears S 60°03’ East 2355.56 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 1.08 cfs conditional for storage in Falls Low Dam Reservoir, direct flow feed to Falls Reservoir Pipeline for uses proposed for Falls Reservoir Pipeline. Unnamed Spring Ditch and Pipeline – point of diversion located in an unsurveyed area of Gunnison County, described as NE ¼ SW ¼ of Section 35, T12S, R84W, 6th PM, at a point whence United States Mineral Monument 5944 bears S 49°05’58” East 1869.42 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 0.03 cfs conditional for storage in Falls Low Dam Reservoir, direct flow feed to Falls Reservoir Pipeline for uses proposed for Falls Reservoir Pipeline. Falls Reservoir Pipeline – diverts from Falls Low Dam Reservoir and Italian Creek in an unsurveyed area of Gunnison County described as NE ¼ SW ¼ of Section 35, T12S, R84W, 6th PM, at a point whence United States Mineral Monument 5944 bears S 42°21’10” East 1648.59 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 62.00 cfs conditional for mining, milling, domestic, industrial, power generation and mill slurry Conveyance. Falls Reservoir Feed Stream – point of diversion located in and unsurveyed area of Gunnison County, described as NW ¼ SW ¼ of Section 35, T12S, R84W, 6th PM, at a point whence United States Mineral Monument 5944 bears S 45°48’16” East 2086.26 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 1.50 cfs conditional for storage in Falls Low Dam Reservoir, direct flow feed to Falls Reservoir Pipeline for uses proposed for Falls Reservoir Pipeline. Star Low Dam Reservoir – located in an unsurveyed area of Gunnison County, Colorado. The projection of an existing U.S.G.S. survey would place the Star Low Dam in the SW ¼ SW ¼ of Section 35, T12S, R84W, 6th PM. The Star Low Dam Reservoir is located in the S ½ SW ¼ of Section 35, T12S, R84W, and the N ½ NW ¼, Section 2, T13S, R84W, 6th PM. The Spillway of the Star Low Dam is located at a point whence United States Mineral Monument 5944 bears S 88°10’35” East 2451.24 feet. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 57.54 acre-feet (with right to fill and refill) conditional for mining, milling, domestic, industrial, power generation and mill slurry Conveyance. Falls Low Dam Reservoir – located in an unsurveyed area of Gunnison County, Colorado. The projection of an existing U.S.G.S. survey would place the Falls Low Dam in the NE ¼ SW ¼ of Section 35, T12S, R84W, 6th PM. The Falls Low Dam Reservoir is located in the NE ¼ SW ¼ of Section 35, T12S, R84W, 6th PM. The Spillway of the Falls Low Dam is located at a point whence United States Mineral Monument 5944 bears S 42°21’10” East 1648.59 feet. The Falls Low Dam Reservoir may also be fed by an unnamed spring located at a point whence United States Mineral Monument 5944 bears S 49°05’58” East 1869.42 feet. The Falls Low Dam Reservoir may also be fed by flow from a mine adit located at a point whence United States Mineral Monument 5944 bears S 60°03’ East 2355.6 feet, which may be partially tributary to Italian Creek. The Falls Low Dam Reservoir may also be fed by the Falls Low Dam Reservoir Feed Stream, located at a point whence United States Mineral Monument 5944 bears S 45°48’16” East 2086.26 feet, a tributary to Italian Creek. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 26.21 acre-feet (with right to fill and refill) conditional for mining, milling, domestic, industrial, power generation and mill slurry Conveyance. Star Mirror Pond – located in an unsurveyed area of Gunnison County, Colorado. The projection of an existing U.S.G.S. survey would place the Star Mirror Pond in the SE ¼ SW ¼ of Section 35, T12S, R84W, 6th PM. The Star Mirror Pond is an existing pond which will be tapped by pipeline at a point whence United States Mineral Monument 5944 bears S 81°30’East 1468.75 feet a point on the natural embankment retaining said Star Mirror Pond. Source: Taylor River, Gunnison River. Appropriation Date: 07/01/1976. Amount Claimed: 8.00 acre-feet (with right to fill and refill) conditional for mining, milling, domestic, industrial, power generation and mill slurry Conveyance. The Application on file with the Water Court contains a detailed outline of the work performed during the diligence period. GUNNISON COUNTY.

CASE NO. 2009CW2 (REF NO. 05CW38). Applicant: Ward Creek, LLC, P. O. Box 160, Cedaredge, CO 81413 C/O Austin Keiser Member/Manager, 947 NW 9th St., Cedaredge, CO 81413. Application to Make Absolute: Myers Homestead Well No. 1 – NE ¼ NE ¼ of Section 11, T13S, R95W, 6th PM. 734 feet from the south section line and 753 feet from the west section line. Source: Ward Creek, Tongue Creek and the Gunnison River. Appropriation Date: 07/12/2004. Amount Claimed: 22.5 gpm for domestic and to irrigate 0.2 acres of lawn and garden per household. Myers Homestead Well No. 2 – NW ¼ NW ¼ of Section 12, T13S, R95W, 6th PM. 600 feet from the south section line and 250 feet from the east section line. Source: Ward Creek, Tongue Creek and the Gunnison River. Appropriation Date: 03/01/2005. Amount Claimed: 15 gpm for domestic and to irrigate 0.2 acres of lawn and garden per household. The Application on file with the Water Court contains a detailed outline of the work performed during the diligence period. DELTA COUNTY.

CASE NO. 2009CW3. DELTA COUNTY 1. Larry Mautz and Connie M. Beard, 28891 Hwy 92, Hotchkiss CO 81419 970-872-3142, by Aaron R. Clay, P.O. Box 38, Delta CO 81416, 970-874-9777. APPLICATION FOR CHANGE OF WATER RIGHT 2. Name of Structure: Fleming Ditch, Priority B-5 3. Date of Original Decree: August 28, 1920 Case No: Civil Action 1424; as revised in case W-3014 on July 19, 1979. Court: Delta County Water District 40, Water Division No. 4. 4. Legal Description of decreed point of diversion:: on the west bank of Big Gulch at a point which bears South 67°50’ East 887.80 feet from the North ¼ Corner of Section 29, Township 14 South, Range 93 West, 6th P.M., in the NE1/4NW1/4NE1/4, said Section 29. 5. Date of Appropriation: February 27, 1918. 6. Amount: 0.50 c.f.s. of the decreed 2.0 c.f.s. 7. Use: Irrigation of 30 acres 8. Source of Water: Big Gulch, tributary to the North Fork of the Gunnison River. 9. Applicants have historically used their interest in the Fleming Ditch to irrigate 10 acres, taking the water in a common ditch with other users. Applicants wish to have as an alternate point of diversion the Frank Allen Ditch, which is located at the same location as the Fleming Ditch, and takes water westerly to Applicants’ lands. This will eliminate Applicants’ need to share a portion of the Fleming Ditch.

DELTA COUNTY.

CASE NO. 2009CW4 (REF NO. 01CW228). Applicant: Dennis and Jill Smits, 8370 Stacy Drive., Denver, CO 80221. Burke and Gail Brewster, 3624 W. Girard Ave., Denver, CO 80236. Brewster Smits local mailing address, 17413 Ward Creek Road, Box 1265, Cedaredge, CO 81413. Application for Finding of Diligence: Bluenose Spring and Bluenose Seeps 1 and 3 – located in Section 24, T13S, R95W, 6th PM. As follows: Bluenose Spring and Bluenose Seep 1 are the same structure in the SW ¼ SW ¼ NW ¼, 550 feet east of the west section line and 2650 feet north of the south section line. Bluenose Seep 3 is in the NW ¼ NW ¼ SW ¼, 500 feet east of the west section line and 2300 feet north of the south section line. Source: Ward Creek and the Gunnison River. Appropriation Date: 10/07/1998 for each structure. Amount Claimed: 0.01 cfs conditional for domestic stockwater, domestic use in two residences, fire protection and irrigation of 2 acres. The Application on file with the Water Court contains a detailed outline of the work performed during the diligence period. DELTA COUNTY.

CASE NO. 2009CW5 (REF NO. 02CW130). Applicant: Nancy Pitt Cockroft, 35789 Back River Road, Hotchkiss, CO 81419. Application for Finding of Diligence: Cockroft Wastewater Ditch – NE ¼ SE ¼ of Section 29, T14S, R92W, 6th PM. 1875 feet from the south section line and 52 feet from the east section line. Source: Cottonwood Creek and the North Fork of the Gunnison River. Appropriation Date: 07/26/2002. Amount Claimed: 1.0 cfs conditional for supplemental irrigation of 53 acres. The Application on file with the Water Court contains a detailed outline of the work performed during the diligence period. DELTA COUNTY.

CASE NO. 2009CW6 (REF NO. 02CW36, 95CW94, 89CW12, 85CW32, 80CW329,

W-614 AND W-78). SAN MIGUEL and MONTROSE COUNTIES; WATER DIVISION NO. 4: 1) Applicant: San Miguel Water Conservancy District ("District"); 2) Attorney: Janice C. Sheftel, Maynes, Bradford, Shipps & Sheftel, LLP, P.O. Box 2717, Durango, CO 81302; 3) Application for Finding of Reasonable Diligence; 4) San Miguel Project Structures: Saltado, Naturita, and Radium Reservoirs, Norwood Canal and Lateral, Basin Canal and Laterals, Paradox Diversion Dam and Paradox Canal, Boy Canyon Pipeline, all decreed in Case 9042, District Court, Montrose County (Prior due diligence decrees: 02CW36, 95CW94, 89CW12, 85CW32, 80CW329, W-614, W-78; 5) Sources: Saltado Reservoir ("Saltado") , Reservoir Structure ("RS") No. 80, San Miguel River ("SMR") and its tributaries; Naturita Reservoir ("Naturita"), RS No. 81, Mud Springs Draw and the SMR and its tributaries; Radium Reservoir ("Radium") - RS No. 82, SMR, East Fork of Dry Creek, a tributary of the West Fork of Dry Creek, and their tributaries; Norwood Canal and Lateral ("Norwood") - Direct Flow Diversion Structure ("DFDS") No. 319, SMR and its tributaries; Basin Canal and Laterals ("Basin") - DFDS No. 320, SMR and its tributaries, and Mud Springs Draw; Paradox Diversion Dam and Paradox Canal ("Paradox") - DFDS No. 321, SMR and its tributaries, East and West Forks of Dry Creek; Box Canyon Pipeline ("Box Canyon") - DFDS No. 337, SMR and its tributaries, together with the return flows and seepage from SM Project; 6) Locations: Saltado, formed by the Saltado Dam, located in Sections 26, 28, 29, 30, 31, 32, 33, 34 and 35, T44N, R11W; and in Sections 2, 3 and 11, T34N, R11W; N.M.P.M.; Naturita, formed by the Naturita Dam, located in Section 33, T45N, R14W; and in Sections 4 and 9, T44N, R14W; N.M.P.M.; Radium, located in Sections 31 and 32, T45N, R16W; and in Sections 3, 5, 6, 7, 8, 9, 10, 15 and 16, T44N, R16W; and in the NE corner of the unsurveyed township of T44N, R17W; N.M.P.M.; Norwood, Canal will head at Saltado Reservoir, and utilizing a series of tunnels and siphons, run in a general Northwesterly direction, a distance of approximately 11.4 miles to a point of diversion ("POD") immediately East of the Town of Norwood, from which POD the main segment of the Canal will run in a general Southwesterly direction approximately 10.1 miles to the proposed Naturita Reservoir. At the POD, (a) a lateral, known as the Mailbox Park Canal, will run Westerly approximately 12.4 miles, and (b) releases from the San Miguel Project water will be made to the existing Gurley Canal; Basin, The POD is the outlet works of Naturita Dam from whence the Northeast corner of Section 21, T45N, R14W, N.M.P.M.; bears N. 6°03' E., a distance of 12,640 feet; Paradox, Dam located on the West Fork of Dry Creek, about 2.5 miles downstream from Radium Dam at a point where the NE corner of Section 19, T45N, R16W, N.M.P.M.; bears N. 78°48' W., a distance of 9,200 feet. Canal diverts from the West bank of the West Fork of Dry Creek at the Dam; Box Canyon, on the East bank of the SMR, at a point where Monument Hoyt (U. S. Land Monument) bears S. 0°04' E., a distance of 1,092 feet, and will run in a generally Northwesterly direction in a straight line a distance of approximately 9,800 feet; 7) Uses for All Structures: Irrigation, municipal, industrial, flood control, recreation and fish and wildlife purposes; 8)Quantities, Priorities and Appropriation Dates: Saltado: 72,000 acre-feet ("AF"), Conditional ("C"), with an additional 71,200 AF, C, for annual use from storage if capacity in said Reservoir is available for refilling; Primary ("Pri") Priority No. 483 – December 9, 1946; Secondary ("Sec") Priority No. 536 – September 8, 1965; Naturita: 9,200 AF, C, with an additional 8,300 AF, refill C; Pri Priority No. 484 – December 9, 1946; Sec Priority No. 537 – September 8, 1965; Radium: 25,600 AF, C, with an additional 24,000 AF, refill C; Pri Priority No. 485 – December 9, 1946; Sec Priority No. 538 – September 8, 1965; Norwood: 380 c.f.s., C; December 9, 1946; Basin: 400 c.f.s., C; December 9, 1946; Paradox: 135 c.f.s., C; December 9, 1946; Box Canyon: 40 c.f.s., C; September 2, 1965 9) Reasonable Diligence: Between December 2002 and December 2008, the following activities took place toward completion of the appropriation for the water rights described in this matter, as more fully described in the Application: Participating projects authorized for construction in the 1968 Colorado River Basin Project Act but not yet under construction, including the San Miguel Project, are unlikely to receive Congressional appropriations. Therefore, the San Miguel Water Conservancy District (the "District") has been exploring alternative methods of financing and reconfiguring the San Miguel Project. The District contracted with John Porter, via San Miguel County, to study prior San Miguel Project documents and to meet with area water entities to develop a Project, using the water rights in this matter, which combines and improves existing systems to increase the water availability within the District at a cost of $4,000, half to be paid by the District. John met on numerous occasions with (a) the District Board, the Board of the Farmers Water Development Company (“Farmers”), which owns Gurley Reservoir, and (3) with the Board of the Lone Cone Ditch and Reservoir Company, which owns Lone Cone Reservoir. The idea is to develop water system improvements on streams tributary to the SM River, which would not interfere with the water delivery to the two water companies. The District also met with the San Miguel Board of County Commissioners to discuss water development improvements in the area.