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MEMORANDUM OF UNDERSTANDING <br />THIS MEMORANDUM OF UNDERSTANDING (MOU) is entered into this cal <br />day of March, 1999, by and among the UPPER GUNNISON RIVER WATER <br />CONSERVANCY DISTRICT (UGRWCD) and VIRGIL AND LEE SPANN RANCHES, INC <br />CRAIG BRYANT, GERALD E. BULLOCK AND CARL L. LONG as follows: <br />1 RECITALS. The following recitals apply to this MOU: <br />1.1 UGRWCD has filed an application for change of water rights, Case No. <br />98CW240, District Court, Water Division No. 4 (Application) which includes a change of <br />water rights conditionally decreed to the Taylor River Canal and Stubbs Gulch Canal to <br />other locations including the West Branch point of diversion as described in paragraph <br />4.K.6. and 4.C.5. of the Application. <br />1.2 Owners of decreed and undecreed water rights having their source of <br />supply as the West Branch of the Gunnison River and others interested in the West Branch <br />have expressed concerns over possible injury to their water rights and other interests if the <br />amounts conditionally decreed to the Stubbs Gulch Canal and Taylor River Canal are <br />changed to the West Branch point of diversion. <br />1.3 A total of 74.25 cfs decreed to the Kelmel Owens No. 1 Ditch having <br />the West Branch as its source of supply is used for irrigation by VIRGIL AND LEE SPANN <br />RANCHES, INC and others (IRRIGATORS). <br />1.4 The decreed and undecreed water rights owned by the WEST <br />BRANCH WATER USERS include: <br />1.4.1 A total of 0.06 cfs decreed to the Island Ditch No. 36. <br />1.4.2 Individual wells serving residences along the West Branch. <br />1.4.3 An unknown number of present and future beneficial uses of <br />water from the West Branch which are not decreed. <br />1.5 Certain other owners of property on the West Branch have expressed <br />concern that flows in the West Branch may be reduced as a result of the change while <br />others have expressed concern that flows may be increased to the point of flooding. <br />2 APPLICABILITY. This MOU is applicable if UGRWCD constructs a <br />diversion structure (Upstream Structure) at the mouth of the West Branch in order to divert <br />water into the West Branch pursuant to the Application, otherwise it shall be of no force or <br />effect. <br />3 POINTS OF UNDERSTANDING. The parties have reached the following <br />