Case No. 02CW038 Prehearing Statement nad Agreement June 2000

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EXHIBIT B AGREEMENT This Agreement is made effective the 18th day of October 2000, by and between the Colorado River Water Conservation District ( "Colorado District ") and the Upper Gunnison River Water Conservancy District ( "Upper Gunnison District "). Recitals A. The Colorado District and the Upper Gunnison District are parties, together with the Colorado State Engineer and the United States of America, to an agreement which is titled "Agreement Among the United States of America, the Colorado State Engineer, the Colorado Water Conservation District, and the Upper Gunnison River Water Conservancy District," which is dated June 1, 2000. That Agreement is referred to herein as the "Subordination Agreement," and a copy thereof is attached hereto as Exhibit A. B. The Subordination Agreement provides that the Colorado District and the Upper Gunnison District will undertake certain obligations, which are identified in the Subordination Agreement, related to water uses in different portions of the Gunnison River basin lying upstream from the dam which forms the crystal Reservoir component of the Aspinall Unit of the Colorado River Storage Project. 1. The portion of the geographical area to which the Upper Gunnison District's Subordination Agreement obligations relate is all included within the Upper Gunnison District's boundaries as established by the Decree of the Gunnison County District Court in Civil Action No. 5618, dated October 8, 1991. 2. The entire geographical area addressed by the Subordination Agreement lies within the boundaries of the Colorado District as established in § 37 -46 -103, (C.R.S. 1999). 3. The geographical area to which the Colorado District's Subordination Agreement obligations relate extends into the western portion of the Upper Gunnison District's territory. C. The Parties are each separately authorized and empowered to act as necessary to fulfill their obligations under the Subordination Agreement.