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� <br /> ,� <br />� <br />Mr. Alan Wickert <br />Mr. {'rregory Timm <br />December 3, 2009 <br />Page 6 <br />Comnarable Sales Information for the Vidler Ri�hts <br />Our research identified no recent sates and only one proposed sale of comparable senior <br />� water rights in Summit County above Dillon Reservoir in recent years. We also identified <br />two sourees of water values for nearby mountain areas. We found no recent transactions <br />involving Vidler water rights, with the exception of very small amvunts marketed under <br />� an umbrella augmentation plan by the Vidler Cornpa�y. There axe aisa small amounts of <br />augmentation water made available through an umbrella plan by Summit County. <br />Proposed Blue Danube Sale/Lease <br />This transaction was based upon a propased, but as yet unsigned, agreement between <br />Farmers Korner, Inc. and Tiger Run Owners Associatian for both lease and sale of <br />portions of the senior Blue Danube Ditch No. 2. A copy of the proposed lease and <br />purchase agreement was pravided by Attorney Gene Riordan. <br />We could not confirm that the salellease agreement had been signed as of the date of this <br />report, however, based upon discussions with various individuals familiar with the <br />transaction, this agreement is considered ta represent a valid market price for the Blue <br />Danube No. 2 Ditch rights. Tiger Run is in the market for water ta directly supply or <br />augment diversions for irrigation uses. In addition to the Blue Danube Na. 2 Ditch water <br />available fram Farmers Korner, Tiger Run has also expressed interes� in purchasing a <br />portion af the rights currently owned by the Summit County School District {originalIy <br />purchased from Farmers Korner). Based upon discussions with Mr. Steve Jeffers, <br />attorney for the Schoo[ District, the District would consider seliing an excess portion of <br />the School District's Blue Danube No. 2 rights at the same price as included in the <br />proposed Farmers Karner/Tiger Run ageement. Based apon this infarmation, we <br />cansider that the sales price and provisians included in the proposed agreement constitute <br />a valid market price for the Blue Danube No. 2 Ditch rights. These rights have <br />previausty been decreed and used for augcnentation in other decrees. <br />Under the Proposed Btue Danube No. 2 Ditch Sales Agreetnent, the purchase involves <br />7.11 acre-feet out of a total 40 acre-feet of consumptive use water, with the option to <br />purchase an additiana12.44 acre-feet. The purchase price is set at $35,OOd per acre-foot <br />of consvmptive use. The final purchase es subject to Water Court approval. <br />Based upon discussions with persons familiar with administration in Summit County, the <br />Blue Danube Ditch No. 2 is considered to be a reliable right for augmentation purposes. <br />The priority of the right is slightly junior to the Vidler rights. <br />Vidler Cam,�any Plan Sales <br />The Vidler Company currently offers sznal[ amounts of water under an umbrella <br />augmentation plan_ Augmentation amounts are for individual homes, cammercial <br />properties, and small irrigated lawn areas. The amounts are typicatly in increments of 0.1 <br />