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<br />I r <br /> <br />Ken Carter and Donald Johns <br />Horse Creek Mediation <br />Page 2 <br /> <br />4. All parties agreed to authorize their respective attorneys to begin the drafting of <br />any documents necessary to fully complete any and all transactions. <br /> <br />5. Engineers for both parties (Bruce Lytle and Gary Thompson) will work together to <br />agree on a "cap" number for diversions by the HCWUA wells in the basin. This number <br />will also include room for other users (preisser, Lazy T and others) under the cap. The <br />parties agreed that the number would be on total diversions as opposed to some <br />consumptive use figure. <br /> <br />6. All parties agreed that an April 1, 1997 deadline would be imposed upon other <br />well users in joining the association. Notification of the deadline to other users will be <br />through a letter from the association and hopefully, a separate letter from the State <br />Engineer. Mr. Grantham will discuss this date and the letter with the State Engineer. <br /> <br />7. Box Springs expressed that at this time it would prefer a cash payment in <br />consideration for their water right. However, all parties agreed to keep other options <br />open, such as the purchase of property or a combination of property and dollars as <br />consideration. <br /> <br />8. The parties requested that Mr. Grantham discuss with the State Engineer the <br />possible effects of Denver Basin well pumping on the Horse Creek basin and the inclusion <br />oflanguage in any agreement developed that would have the State Engineer examine the <br />situation. <br /> <br />9. The parties agreed to continue the negotiations beginning at 11:30 a.m. on January <br />16, 1997, in the Pueblo Division Engineer's office. <br /> <br />10. The parties also requested that Mr. Grantham call Duane Helton's office to notify <br />him of the meeting on the January 16th at 11:30 a.moo At this time, the parties request Mr. <br />Helton to hold this date open on his calendar for possible attendance at the meeting. The <br />parties would like to review the report being prepared by Mr. Helton's firm prior to <br />making a formal invitation requesting his presence. <br /> <br />11. The parties requested that Mr. Grantham discuss the terms of the agreement as set <br />forth herein with Messrs. Steve Sims ofthe Attorney General's Office and Mr. Hal <br />Simpson, State Engineer. <br /> <br />I have had a-chance to discuss the terms of this agreement with Mr. Simpson. In <br />