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� <br />' <br />' <br />Mr. AIan Wickert <br />Mr. Gregory Timm <br />Decemt�r 3, 2009 <br />Page 9 <br />�onclusion: O�inion of'Value <br />Based upon the proposed sale af the Blue Danube Ditch No. 2 ri�ht, the comparable <br />value of a senior ditch right in Summit County is at least $3S,U00 per acre-foot of <br />historical consumptive use. This is for a senior right for which an historic consumptive <br />use histary has been established, but which would need to be incorporated into an <br />augrnentation plan, with the buyer bearing the costs of a plan. Estemated costs to file artd <br />adjudicate a relatively uncontested plan far augmentation in Summit County are prabably <br />in the range of $50,000 ta $I OO,OOQ based on our knowled�e of current and recent pfans <br />of similar type. Therefore a comparable r�ght with an adjudicated plan for augmentation <br />is estimated ta have a value in the range of $5,4�4 to $10,000 per acre-foot for 10 acre- <br />feet of augtnentation water. <br />For the subject Vidler rights, the market value depends somewhat on the tocation of a <br />potential purchaser, Qn the open market, certain pravisions of the existing plan for <br />au�mezatatian, including the agreement for 6 acre-feei of storage in Dillan Reservoir, may <br />not be likely to transfer to a new location successfully, and the buyer would sti11 need to <br />file an applica.tion in the Water Court. In the case of a nearby user, or the existing <br />District, the water rights would be mare valuable. <br />Based upon these factars, azid on the seniority ofthe Vidler rights, it is our opinion that <br />, on the open market, the market value of the 10 acre-feet af consumptive use water <br />associated with theVidler rights is $40,044 per acre-foot, or a total of $400,000. <br />Hawever, because the rights are encumbered by the Tiger Run lease agreements, and <br />' based upon the maximum au�mentation requirement estimated for Tiger Run operations, <br />the total yield �uvould need to be reduced by up to 2.5 acre-feet or 25 percent. Therefore, <br />with this first use obligation, the readily marketable yield would only be 7.5 acre-feet, <br />' with a corresponding market vatue of $300,000. Therefore, it is our apinivn #ha.t the <br />adjusted current market value o£the subject Vidler Rights $300,40Q. <br />The junior well rights associated with the decree in Case No. 04CW719 have a value of <br />$IO,OUO corresponding to avoided costs for filing new water rights. <br />We have assigned no value to the right associated with Swans Nest Reservoir No. 1. <br />Based upon the attached McLaughlin Engineers Ltd. report, the value of the existing <br />133,000 gallon storage tank is $150,000. <br />Based upon the sum of the individual valuations described above, it is our opinion that <br />the total value ofthe subject water ri�hts and existing storage tank is $4b0,000. <br />