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� <br />� Mr. Alan Wickert <br />Mr. Gregory Timm <br />December 3, 2009 <br />Page 4 <br />� No. 6 and that portian of the 10 acre-feet of Vidler rights and the associated augmentation <br />plan in Case No. 84CW716 nesded to suppiy water for 371 RV park units and associated <br />� uses. The lease also references existing improvements, inciuding the well, pump station <br />and the existing water tank {which is separately valued in this repan). The term of the <br />lease is 50 years and there daes not appear to be any renewal provisions. <br />Tiger Run Sublease <br />� A second sublease agreement, also dated March 1 I, 1997 between Swan's Nest and Tiger <br />Run In�estments, Inc. {Tiger Run} leases the same first use of the water rights and <br />associated improvements as covered in the Master Lease to Tiger Run. The lease is for <br />� 50 years, with a one-time payment of $104, and no further lease payments or water <br />service fees for the remaintfer of the lease period. During the Iease period, Ti�er Run is <br />respansible for the costs of operations and maintenance of the facilities. At the end of the <br />� 50-year lease period, Ti�er Run retains an absalute right ta continue the use of the water <br />rights and facilities, subject ta Swan's Nest chargin� far water service at rates determined <br />from the Town of Breckenridge water service charges. <br />� There are about 37 years remaining an the sublease, for which the first use of the water <br />rights associated with the augmentation plan in Case No. 84CW715, Welt No. 6 and the <br />storage tank are obligated to supply water uses at Tiger Run. At the end of the lease <br />� period, it appears that this obligation will continue, aithou�h Swan's Nest may receive <br />water service fees beginning at that time. �or the purposes of this water rights valuation, <br />a first use commitment of 37 years, cambined with a continuing obligation to provide <br />� water services beyond the lease period, can� be considered as a permanent obligation on <br />the subject water rights and plan for augmentation. <br />Existing Water Uses <br />As part of our evaluation, we have reviewed the 2008 and 2009 water year accounting <br />� provided by Swan's Nest Metro District, as weli as diversion records going back to 1998 <br />available from the DWR. These records are important in dernonstrating that diversions <br /> I 'I are being made and augmented under the plan using the Vidler augmentation water, and <br /> i, � in estimating the amount of water which is apportioned to Tiger Run. <br /> '� � Water uses include damestic, carnmercial and imgarion. The records include pumping <br />from Well Nos. 1, 2 and 6_ Welt No. 6 is used exclusively for the Tiger Run RV Park and <br />inctudes doznestic and commercial uses, but no irrigation. The brea.kdown of water uses <br />is important in determining augmentation reyuirements because of differences in <br />� cansumptive use cates, and the season of use. During the inigation season gez�iod of May <br />15 through September 15, depletians can be augmented directly using the Vidler Rights. <br /> I� Augmentation ret�uirements far the remainder of the year need to be affset through <br />storage of 1.4 times the depletion amaunt in Dillan Reservair to account for storage <br />charges. <br />� <br /> I�� <br />