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Exhibit C to linding of fact, conclusions of <br />law and decree of the Court, Case No. <br />U4CW 129, Water Division No. 2 <br />MEMORANDUM OF UNDERSTANDING <br />F'or Settlement of Case No.. 04CW129, Water€80§6WT1t11e1` <br />C# t't }c€ io county € i tract ( ourt truth: €d) <br />(Chaffee County Recreational In- Channel-IP'� SPA#) 0a 2"0 2006 .4: €PVtit alt, t <br />Filing €1): 1249369' <br />Revim (Aerk: Marded€ Didmil -mien <br />This MEM1 OIL4NDUM OF UNDERSTANDING ( "MOU ") is entered into by and among <br />Chaffee County; Southeastern Colorado Water Conservancy District ("Southeastern'); the <br />Colorado Department of Natural Resources ( "CDNR" ); Colorado Division. of Wildlife <br />( "CDOW "); Colorado Division of Parks and Outdoor Recreation ( "DPOR "); Upper Arkansas <br />Water Conservancy District ( "Upper Arkansas "); City of Salida ( "Salida "); Arkansas River <br />Outfitters Association ( "AROA. "); City of Colorado Springs, acting through Colorado Springs <br />Utilities ( "CS -U'); the Board of Water Works of Pueblo, Colorado ( "BWWP "j; and Pueblo West <br />Metropolitan District ( "Pueblo West ") (together referred to as the "Parties "), effective this aq <br />day of July, 2006. <br />L�xnlarrul=Recitals <br />A. Chaffee County filed an application for recreational in- channel diversion water <br />rights ( "RICD ") for boating parks located in the City of Salida and Town of Buena Vista <br />(`Boating Parks "), Case No. 04CW129, Water Division 2, in December 2004 (The "RICD <br />Case' ). Southeastern, CDNR, CDOW, DPOR, Upper Arkansas, Salida, AROA, CS -U, BW WP, <br />and Pueblo West (the "Objectors "), among others, filed statements of opposition in the RICD <br />Case. <br />B. The Colorado Water Conservation Board ( "CWCB ") held a hearing on May 23, <br />2005 on the RICD Case (the "CWCB Hearing"). In setting this hearing, the CWCB declined a <br />request of Chaffee County, supported by Southeastern and other Parties, to postpone the CWCB <br />Hearing. On May 24, 2005, the CWCB postponed making findings on the RICD until <br />September, 2005, and invited the Parties to submit any settlement agreement for the C WCB's <br />consideration. by. September 2, 2005. Thereafter, the CWCB.requested and was.granted by the <br />Water Court additional extensions of time in which to submit its findings in order to allow the <br />Parties time to reach a settlement. The last extension of time gave the CWCB until April 14, <br />2006 to submit its findings to the Water Court. <br />C. The Parties acknowledge that the CWCB and the Division of Water Resources <br />( "DWR ") are not parties to this Agreement and that CDNR's participation in this Agreement <br />does not bind the CWCB or the DWR in any respect. <br />D. For each of the past fifteen years, CDNR (on behalf of CROW and DPOR) and <br />Southeastern have agreed annually, together with the United States Department of Interior, <br />.Bureau of Reclamatior ( "Reclamation "), to operation of a voluntary flaw management program <br />whercby Reclamation operates 'T'win Lakes and Turquoise Reservoirs so as to manage bows in <br />the Arkansas River above Pueblo Reservoir for recreational and fishery purposes, while frilly <br />satisfying the primary purposes of the Fryingppan- Arkansas Project and other existing contractual <br />obligations, pursuant to its concurrence with recommendations made by the CDNR in <br />consultation with Southeastern (the "Upper Arkansas Voluntary Flow Management Program" or <br />582341 <br />