In the District Court in and for Water Division No s1

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 February 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. 2009CW14. DELTA COUNTY-Gunnison River; United Companies of Mesa County, c/o John R. Pierce, Dufford, Waldeck, Milburn & Krohn, L.L.C., 744 Horizon Court, Suite 300, Grand Junction, CO 81506; APPLICATION FOR UNDERGROUND WATER RIGHT, CHANGE OF WATER RIGHTS, AND PLAN FOR AUGMENTATION; 1. Name, address, and telephone number of applicant: Oldcastle SW Group, Inc., d/b/a United Companies of Mesa County, 2273 River Road, Grand Junction, CO 81503, (970) 243-4900; I. APPLICATION FOR UNDERGROUND WATER RIGHT, (Anderson Pit Well); 2. Name of well and permit number: Anderson Pit Well, Permit # 65973; 3. Legal description of well: The Anderson Pit is located in the SE/4 NW/4 of Section 8, T15S, R95W of the 6th P.M., at a point which is 2640 feet from the east section line and 2260 feet from the north section line. A map of the Anderson Pit Well is attached to the Application as Exhibit 1; 4. Source: Groundwater tributary to the Gunnison River; Depth: The Anderson Pit Well will be excavated to a depth of 42 feet; 5. Date of appropriation: December 1, 2004; A. How appropriation initiated: By inspection of property and development of mining plan; 6. Amount claimed: 1.49 c.f.s., 526 a.f., annually, conditional; 7. Proposed use: During mining operations, water from the Anderson Pit will be used for industrial uses such as dust suppression and material washing. After mining operations have ceased, the pit will be used for recreational, piscatorial, wildlife watering (directly from pit) and fire control; 8. Name of owner of land on which pit will be located: Applicant; II. APPLICATION FOR CHANGE OF WATER RIGHT; 9. Decreed name of structure for which change is sought: Bona Fide Ditch; 10. From previous decree: A. Date entered: February 25, 1903, Case No.: CA374; B. Decreed point of diversion: The point of diversion for the Bona Fide Ditch was decreed as follows: The headgate is situated on the left bank of the Gunnison River at a point whence the corner of Sections 1, 6, 7, and 12, in T15S, R95W, 6th P.M., bears South 55º40’ E. 46.46 chains distant. In Case No. 99CW128, the decree corrected that location as follows: The actual point of diversion is located in the SE/4 NW/4 SE/4 of Section 1, T15S, R95W, 6th P.M., at a point approximately 3,500 feet from the west section line and 1,700 feet from the south section line; A. Source: Gunnison River; B. Appropriation Date: November 30, 1881 Amount: 65 c.f.s. (the change requested in this case only pertains to 43 of Applicant’s shares, which equates to 5.59 c.f.s.); C. Historic use: The 5.59 c.f.s. of the Bona Fide Ditch that is the subject of this claim has been used to irrigate up to 224 acres of land; 11. Proposed change: Applicant requests to add augmentation use to 5.59 c.f.s. of the Bona Fide Ditch, which is the amount represented by 42 of its shares. Applicant wishes to use dry-up credits associated with those shares to support its augmentation plan for the Anderson Pit Well, requested below; 12. Name and address of owner of land on which changed water right has or will be used: Applicant; III. REQUEST FOR APPROVAL OF PLAN FOR AUGMENTATION; 13. Name of structures to be augmented: Anderson Pit Well; 14. Previous decree for water rights to be used for augmentation: See paragraph 11, above; 15. Statement of plan for augmentation: After mining activity has been completed, the Anderson Pit Well will have a surface area of 182.5 acres. Evaporative depletions from the Well will equal 526 acre-feet, annually. A table outlining evaporative depletions is attached as Exhibit 2. Of that amount, 459.04 acre-feet of depletions will occur during the irrigation season and will be offset by dry-up credits from 42 shares of water in the Bona Fide Ditch. In association with that dry-up, up to 224 acres of historically irrigated land will be removed from irrigation. Out-of-priority depletions during the non-irrigation season will equal 66.96 a.f. and will be offset through a water supply contract from Blue Mesa Reservoir for 72.72 a.f. (including transit losses). (5 pages.) DELTA COUNTY.

CASE NO. 2009CW15 (REF NO. 02CW49). Applicant: Dennis Eitle, 5453 US 224 W. Willard, Oh 44890. Application for Finding of Diligence: Cattail Springs 1 – 5 – all located in the NW ¼ SW ¼ SW ¼ of Section 24, T51N, R7W, NMPM. As follows: Cattail No. 1 located 498.41 feet from the west section line and 1,286.7 feet from the south section line. Cattail No. 2 located 270.3 feet from the west section line and 1,176.3 feet from the south section line. Cattail No. 3 located 163.2 feet from the west section line and 1,103.8 feet from the south section line. Cattail No. 4 located 48.1 feet from the west section line and 1,005.6 feet from the south section line. Cattail No. 5 located 10.1 feet from the west section line and 913.8 feet from the south section line. Source: Iron Creek and the Gunnison River for Cattail Springs 1 – 5. Appropriation date: 04/23/2002 for Cattail Springs 1- 5. Amount Claimed: .033 cfs conditional for Cattail Spring No. 1, .022 cfs conditional for Cattail Spring No. 2, .022 cfs conditional for Cattail Spring No. 3, .022 cfs conditional for Cattail Spring No. 4 and .044 cfs conditional for Cattail Spring No. 5. For irrigation of 10 acres, domestic use in one single-family dwelling, stockwater and wildlife use for Cattail Springs 1- 5. The application on file contains a detailed outline of the work performed during the diligence period. MONTROSE COUNTY.

CASE NO. 2009CW16. Applicant: S.G. Interests I, LTD. Mailing address - P. O. Box 26, Montrose, CO 81402, 100 Waugh, Suite 400, Houston, TX. 77007, 713-951-0100 (Local Montrose contact) 970-252-0696 1.1 Intent and purpose. Applicant is seeking a new storage water right and plan for augmentation to protect the industrial and commercial uses required in the process of drilling gas wells, and related activities involved in the drilling process. Applicant is not seeking specific pumping rights in the following application. 2. Background. SG Interests I, Ltd., herein known as applicant, is an oil and gas exploration and development company based in Houston, Texas, with a local office in Montrose, Colorado with a local address of P.O. Box 26, Montrose, CO. 81402. SG Interests I, Ltd. is currently operating in an area known as the “Bull Mountain Unit”, consisting of approximately 31 sections of land, approximately 20,000 acres, lying 21 miles northeast of Paonia, Colorado, situated in portions of Township 11 S., Ranges, 89 and 90 W., and portions of Township 12 S., Ranges 89 and 90 W., 6th P.M., Gunnison County, Colorado. SG Interests I, Ltd. is in the process of drilling approximately 55 total gas wells, and involved in the operation and maintenance of a 20-inch pipeline system to transport natural gas from the production operations in the Bull Mountain Unit to a pipeline system for delivery into interstate natural gas pipeline systems. The project of drilling the gas wells within the Bull Mountain Unit is anticipated to be ongoing for the next ten years, allowing for one well per every 320-acre parcel. Applicant is seeking an interim Substitute Water Supply Plan leasing existing stored water for their operation during the operational months of 2009. Applicant will be applying for storage water rights and a plan for augmentation for the remaining years of operation. The reservoir storage rights applicant will be requesting in the plan for augmentation lies on property owned by Rock Creek Ranch I, Ltd. Rock Creek Ranch is owned by the same entity that owns SG Interests I, Ltd. Applicant proposes to pump water from waterways, streams, and creeks in close proximity of each well drilled, utilizing approved technology and filtering systems. The pumping locations will be in various tributaries that provide for the most convenient and centrally located areas in relation to the drill sites. The construction of pad sites, the drilling process, and occasional dust abatement requires various amounts of water for each process provided for in the following: APPLICATION FOR A STORAGE WATER RIGHT FOR THE BAINARD RESERVOIR #1 3. Name of Reservoir. Bainard Reservoir #1 (E. 283634 N. 4334775) 3.1 Location of Point of Diversion The Bainard Reservoir #1 will be located in the NW1/4NE1/4 of Section 1, Township 11 South, Range 91 West, 6th P.M., Delta County, Colorado, with distances of 1647 feet from the North Section line, and 2542 feet from the East Section Line. 3.2 Source. The Bainard Reservoir #1 will be filled in priority by South Bainard Creek, tributary to the North Fork of the Gunnison River. 3.3 Appropriation Information. The appropriation of the Bainard Reservoir #1 was initiated on January 24, 2009, by submitting subject application to the water court. 3.4. Uses Applicant seeks a conditional decree for storage rights in Bainard Reservoir #1 for the uses of augmentation, fish habitat, irrigation, stock, commercial, industrial, and fire protection with an appropriation date of January 24, 2009. Applicant acknowledges that he will be required to construct the outlet with an adjustable overflow so that the level can be maintained and release of water during time of call is possible. Applicant will add gauge rod and supply a surveyed capacity table. A parshall flume will be installed below the reservoir to measure releases. 3.5 Amount claimed. The Bainard Reservoir #1 is an on-channel, non-jurisdictional reservoir, with a proposed surface area of 18.5 acres, dam height not to exceed ten feet, an average depth of five feet, with a total storage capacity of 92.5 acre-feet. APPLICATION FOR APPROVAL OF PLAN OF AUGMENTATION. 4. Name of Water Rights to be Augmented. This plan of augmentation will augment for all otherwise out-of-priority depletions from the evaporative loss from the Bainard Reservoir #1, surface pumping for the uses of pad site construction, drilling, dust suppression, and transit losses. 5. Plan Assumptions and Soure Data. Applicant has made the following assumptions in the development of his plan for augmentation, which are based upon a report, attached hereto and made a part of this application. All following uses are considered to be 100% consumptive. 5.1 Applicant proposes to construct up to 8 gas wells per year during the months of April through November due to inaccessibility in the winter months. The demand for water during the drilling process is calculated to be 550,000 gal. (1.69 acre-feet per well, or 13.52 acre-feet for 8 wells). 5.2 The water demands for the pad site construction is estimated to be 250,000 gallons (0.77 acre-feet per site or 6.16 acre-feet for 8 sites). 5.3 Total water depletions from evaporative loss from the Bainard Reservoir #1 is determined to be 33.066 acre-feet based on an 18.5 surface area at an elevation of 8240 feet. 5.4 Applicant will be maintaining approximately 15 miles of road. Gunnison County applies Mag Chloride on portions of the public roads where SG Interests I, Ltd. share in the costs. Applicant, on occasion, will apply water for dust suppression for up to 15 miles of roads. The water needs per mile of road are 500,000 gallons of water that calculates to 23 acre-feet for the 15 miles of roads. 5.5 The distance calculated from the outlet of Bainard Reservoir #1 to the point at which depletions will be replaced is 18.66 miles at the confluence of Muddy Creek and West Muddy Creek. Based on a 1% per mile depletion factor the total depletions for the above uses of 75.75 acre-feet, and the transit loss is calculated to be 14.13 acre-feet. These uses result in a total annual depletion of 89.9acre-feet. 5.6 It is a conservative estimate that 60% of applicant’s water requirements will occur during times when there are no senior calls on the river system. 6. Potential Call. Applicant realizes that calls upon Applicant’s diversions might arise on any stream reaches downstream of Applicant’s diversions. 7. Statement of Plan for Augmentation. Augmentation for the Bainard Reservoir #1, uses necessary for drilling purposes and dust abatement will be provided for by releases from Bainard Reservoir #1, an on-channel reservoir, available on a year round basis as needed for any senior calls downstream. The Bainard Reservoir #1 will be filled in priority by South Bainard Creek. All of the above uses are considered to be 100% consumptive, therefore, the total consumptive use for the reservoir evaporation, dust abatement, drilling and pad site construction, and transit loss has been calculated to be 89.9 acre-feet for their total annual depletions. The Applicant acknowledges that the augmentation water will be used solely for Applicants’ use. 8. Applicant seeks non-decreed points of diversion for uses defined in paragraph 5 as follows pumped at the following locations: A) All tributaries to the East Muddy Creek below Ditch #3 Ditch. (E. 290478 N. 4333558) B) Lee Creek below the Grouse Creek Extension Ditch. (E. 295928 N. 4329718), C) The Muddy Creek from its confluence with Lee Creek down to the confluence of the West Muddy. D) The West Muddy and any tributaries below the Snooks #2 Ditch. (E. 288517 N. 4324870) E) Drift Creek below the Drift Creek Ditch. (E. 294202 N. 4332271.) The stretches of streams and tributaries for proposed pumping sites referenced in paragraph 8, allow for the pumping of water where there is no injury. The Bainard #1 Reservoir will protect the pumping requirements of SG Interests I, Ltd. from senior down stream calls. 9. During times of call, applicant must notify water commissioner in advance of pumping, relaying the time, location, and quantity of water for their proposed pumping to the water commissioner in order for him to make releases in time and quantity from the Bainard Reservoir #1 to protect the senior downstream call. Additionally, Applicant must keep a log of water quantities pumped and provide such logs to water commissioner on a weekly basis. 10. The following chart sets forth a summary of the augmentation plan: Summary of Augmentation Plan