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E. United States of America c/o U.S.D.A. Forest Service, dated September 21, 2009 F. DeQuine Family, LLC, Flying Diamond Resources, Kim Singleton, and James A. Larson withdrew their statements of opposition on May 22, 2009. G. The Robert and Elaine Gay Limited Partnership withdrew its statement of opposition on October 1, 2009. 6. District's Uses and Service Area. A. The District provides raw water for domestic, municipal, irrigation, commercial, industrial and other uses to its constituents and contractees within its service area. The District's service area covers nearly all of Routt County and a portion of Moffat County. It extends from the headwaters of the Yampa River and its tributaries downstream to an area just south and west of the City of Craig. B. The District has existing contracts for delivery of water from Stagecoach Reservoir in the annual amount of 13,192 acre-feet for such uses. The District's contractees use and will use their contracted water supplies either by direct delivery and diversion for beneficial use or by augmentation under judicially approved plans that they have secured. The District also has adjudicated an area-wide augmentation plan, approved by this Court in Case No. 06CW49, to provide for additional contracts in the amount of up to 2,000 acre feet of annual releases for augmentation to additional District contractees. The District also operates a hydropower operation at Stagecoach Reservoir. C. Water demand for domestic, irrigation, industrial, commercial and municipal uses in the upper Yampa Basin within Applicant's service area will increase in the future. The District has an identified planning period of 50 years. During that period, the demands for water under the District's existing contracts and anticipated future contracts are expected to increase because of changes in water rights administration requiring contractees to use more water directly or by exchange and growth within the individual service areas. D. Applicant has an identified non-speculative use for the Pleasant Valley Project Rights as changed herein. 7. Existing District Supplies and Need for Additional Supplies. The District has existing water rights associated with Stagecoach Reservoir. The evidence demonstrates that the yield of Stagecoach Reservoir may not be adequate to provide for the full delivery of existing and anticipated contracts during a drought period. Therefore, in order to have a reliable supply, the District needs additional supplies, developed either by an enlargement of Stagecoach Reservoir and/or by the delivery of water from a basin such as Morrison Creek basin that is not tributary to Stagecoach Reservoir. CASE NO. 07CW61 FINDINGS OF FACT, CONCLUSIONS OF LAW, AND JUDGMENT AND DECREE PAGE 3