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IMain File No 11-22061 Paae#81
<br /> Assumptions, Limiting Conditions &Scope of Work FileNo.: 11-2206
<br /> Property Address: 39327 Harbour Rd City:Avondale State:CO Zip Code:81022
<br /> Client: Two Rivers Water Company Address: 2000 S Colorado Blvd,Annex Bldg Suite 200,Denver,CO 80222
<br /> Appraiser: John M.Andersen Address: Andersen Appraisals,40 S Villa Del Sol Ct,Pueblo West,CO 81007
<br /> STATEMENT OF ASSUMPTIONS&LIMITING CONDITIONS
<br /> —The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the tale to it.The appraiser
<br /> assumes that the title is good and marketable and,therefore,will not render any opinions about the tale.The property is appraised on the basis
<br /> of it being under responsible ownership.
<br /> —The appraiser may have provided a plat and/or parcel map in the appraisal report to assist the reader in visualizing the lot size,shape,and/or
<br /> orientation.The appraiser has not made a survey of the subject property.
<br /> —If so indicated,the appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency(or
<br /> other data sources)and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area.Because
<br /> the appraiser is not a surveyor,he or she makes no guarantees,express or implied,regarding this determination.
<br /> —The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question,unless specific
<br /> arrangements to do so have been made beforehand.
<br /> —The appraiser has noted in the appraisal report any adverse conditions(including,but not limited to,the presence of hazardous wastes,toxic
<br /> substances,etc.)observed during the inspection of the subject property,or that he or she became aware of during the normal research involved
<br /> in performing the appraisal.Unless otherwise stated in the appraisal report,the appraiser has no knowledge of any hidden or unapparent
<br /> conditions of the property,or adverse environmental conditions(including,but not limited to,the presence of hazardous wastes,toxic substances,
<br /> etc.)that would make the property more or less valuable,and has assumed that there are no such conditions and makes no guarantees or
<br /> warranties,express or implied,regarding the condition of the property.The appraiser will not be responsible for any such conditions that do exist
<br /> or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the
<br /> field of environmental hazards,the appraisal report must not be considered as an environmental assessment of the property.
<br /> —The appraiser obtained the information,estimates,and opinions that were expressed in the appraisal report from sources that he or she
<br /> considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items
<br /> that were furnished by other parties.
<br /> —The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal
<br /> Practice,and any applicable federal,state or local laws.
<br /> —An appraiser's client is the party(or parties)who engage an appraiser in a specific assignment.Any other party acquiring this report from the
<br /> client does not become a party to the appraiser-client relationship.Any persons receiving this appraisal report because of disclosure requirements
<br /> applicable to the appraiser's client do not become intended users of this report unless specifically identified by the client at the time of the
<br /> assignment.
<br /> —The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public,through
<br /> advertising,public relations,news,sales,or by means of any other media,or by its inclusion in a private or public database.Possession of this
<br /> report or any copy thereof does not carry with it the right of publication.
<br /> —Forecasts of effective demand for the highest and best use or the best fitting and most appropriate use were based on the best available data
<br /> concerning the market and are subject to conditions of economic uncertainty about the future.
<br /> The Scope of Work is the type and extent of research and analyses performed in an appraisal assignment that is required to produce credible
<br /> assignment results,given the nature of the appraisal problem,the specific requirements of the intended user(s)and the intended use of the
<br /> appraisal report.Reliance upon this report,regardless of how acquired,by any party or for any use,other than those specified in this report by
<br /> the Appraiser,is prohibited.The Opinion of Value that is the conclusion of this report is credible only within the context of the Scope of Work,
<br /> Effective Date,the Date of Report,the Intended User(s),the Intended Use,the stated Assumptions and Limiting Conditions,any Hypothetical
<br /> Conditions and/or Extraordinary Assumptions,and the Type of Value,as defined herein.The appraiser,appraisal firm,and related parties
<br /> assume no obligation,liability,or accountability,and will not be responsible for any unauthorized use of this report or its conclusions.
<br /> Additional Comments(Scope of Work,Extraordinary Assumptions,Hypothetical Conditions,etc.):
<br /> Scope of Work: The scope of work includes a physical inspection of the subject property and comparable sales and/or listings. A review of court
<br /> house data pertaining to the subject property and comparable sales and/or listings. A review of any pending listings or prior sales of the subject
<br /> property and comparable sales. I have also collected sales and listing data from the multiple listing service,Realtors,property managers,
<br /> developers,peer appraisers,and other sources of information. The sources of information are considered to be reliable sources,and I have not
<br /> knowingly omitted any pertinent information from this appraisal report. After the appropriate data are collected,the data are verified,analyzed and
<br /> reconciled. However,it is imperative to understand that the water rights and/or irrigation rights have not been valued separately. The irrigated
<br /> aspect of the subject property is similar to that of the comparable sales analyzed in this report. Thus,no adjustment consideration nor value
<br /> conclusions have been developed pertaining to individual water and/or irrigation rights. Moreover,the irrigated water delivery rights are typically
<br /> necessary for the operation of a hobby ranch(hobby farm),and are assumed to be attached to the subject acreage as discussed below. Due to
<br /> the availability of similar irrigated acreage comparable sales,and as agreed upon in advance by myself and the client,neither the Income Approach
<br /> nor the Cost Approach have been developed in this Summary Appraisal Report. Additional information is retained in the appraisal work file.
<br /> Hypothetical Conditions/Extraordinary Assumptions: None.
<br /> The subject property includes the availability of irrigating water by the owner,Two Rivers Water Company,through the Huerfano-Cucharas Irrigation
<br /> Company(HCIC Ditch system-refer to the article addendum). No irrigating ditch shares and/or water rights are included in the valuation. I
<br /> reserve the right to revise this report if additional data are provided that contradicts the reasonable assumption of continued irrigation water delivery
<br /> to the property. Perpetual irrigation water delivery to the subject acreage is a reasonable assumption,and the irrigation aspect of the subject
<br /> property has a positive impact on site value.
<br /> GP .AND Copyright®2007 by a la mode,etc.This form may be reproduced unmodified without written permission,however,a la mode,inc.must be acknowledged and credited.
<br /> Form GPLNDAD—"WinTOTAL"appraisal software by a la mode,inc.—1-800-ALAMODE 3/2007
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