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IMain File No 11-22061 Page#6I <br /> Zoning Description & Water Article FileNo.11-2206 <br /> Borrower Two Rivers Water Company <br /> Property Address 39327 Harbour Rd <br /> City Avondale County Pueblo State CO Zip Code 81022 <br /> Client Two Rivers Water Company <br /> ZONING USES A-1(Agricultural District) <br /> A use by right is any of the following uses,which are permitted upon issuance of a zoning permit by the County Zoning <br /> Administrator. <br /> Agricultural custom contractor;Christmas tree sales(temp.);Church and religious buildings;Drilling company <br /> equipment yard;Equestrian arena,personal;Farming or ranching;Fruit and vegetable processing,wholesale and <br /> retail;Greenhouse and nursery;Guest house;Hay,grain,feed,seed and fertilizer-retail,storage and/or wholesale; <br /> Home,receiving(must possess a minimum of 5.0 acres of land,or a Special Use Permit is required)Housing,tenant; <br /> Mobile home;Ranch,guest;Recreation camps;Residence,1-family;Residence,2-family;Riding academy,stables; <br /> Roadside sale stand(retail agricultural products);Sawmill;Water distillation and bottling. <br /> A use by review is any of the following uses,other than those uses which come within the purview of S17.140.010(F), <br /> which are permitted only upon issuance of a Special Use Permit by the Pueblo County Planning Commission. <br /> Advertising device,off-premise(See Chapter 17.116);Agricultural implements,retail,wholesale,rental and service; <br /> Airplane beacon,marker or tower;Airport,private heliport,glider port;Asphalt(recycled),sale and storage; <br /> Associations,clubs and lodges;Athletic field,golf range,golf course;Atomic reactor and/or other scientific installation; <br /> Aviary;Bed and breakfast;Boat and RV storage;Broadcasting station,transmitter or tower;Carnival(temp.); <br /> Cemetery,crematory and/or mausoleum;Child care centers;Child care home(large);Cold storage lockers; <br /> Composting facility;Concrete(batch)plant;Contractor's yard;Emergency facility;Equestrian arena,commercial/club; <br /> Explosives,manufacture and wholesale;Farm products,processing,manufacture,storage and wholesale;Feed and <br /> fertilizer manufacture and processing;Game preserve,developed;Hide and tallow processing;Home for blind, <br /> disabled,elderly,elderly foster,maternity,nursing,religious;Hot mix(road)plant;Kennel,dog breeding and boarding; <br /> Livestock sales and auction;Lots,feed;Natural deposits,extraction and processing;Outdoor theater;Paintball field; <br /> Private school;Propane and butane,wholesale and retail service;Race track;Recreational vehicle park;Rental and <br /> service of construction equipment,retail and wholesale;Runway;Saddle and tack shop;Shooting range,outdoor; <br /> Solid waste disposal site and facility;Specialized group facilities;Utilities as outlined in Section 17.120.130;Veterinary <br /> • <br /> hospital(use by right until TA 60,4/17/84);Wholesale vending machine products;Wind turbine for residential uses. <br /> Newswire Article: <br /> Two Rivers Water Company Acquires Majority Interest in Huerfano-Cucharas Irrigation Company <br /> DENVER,Feb.3/PRNewswire-FirstCall/—Two Rivers Water Company(OTC Bulletin Board:TURV),through its 50% <br /> owned joint venture HCIC Holdings LLC,has completed the purchase of 55%of the outstanding shares of the <br /> Huerfano-Cucharas Irrigation Company("HCIC")in Southern Colorado.Additionally,Two Rivers has entered into <br /> separate agreements to purchase an additional 35%interest to bring its total ownership of HCIC to 90%by April 2010. <br /> "Acquisition of a majority interest in the Huerfano-Cucharas Irrigation Company gives Two Rivers the opportunity to <br /> now move forward in the repair of the Cucharas Dam and Reservoir,one of Colorado's largest on stream reservoirs," <br /> commented John McKowen,Chairman and CEO of Two Rivers. The Cucharas Reservoir,when restored,has 55,000 <br /> acre feet of storage capacity,which can be rebuilt for less than$375 an acre foot,compared to a current cost of <br /> construction of over$3,000 an acre foot for other large capacity reservoirs." <br /> Two Rivers has begun engineering plans and commenced discussions with the Colorado State Engineers Office <br /> necessary to hopefully complete the restoration of the dam by spring of 2011,in time for the late spring snow melt.By <br /> restoring the Cucharas Reservoir,Two Rivers can supply the farmers and communities of Huerfano and Pueblo <br /> Counties with a new large,dependable source of water supply and storage. <br /> Two Rivers has also purchased approximately 1,000 acres and entered into agreements to purchase 3,500 additional <br /> acres of farmland.Two Rivers expects to purchase as much as 15,000 acres of farmland and reintroduce water on the <br /> land and restore the HCIC ditches to what was once a thriving high yield farming community.Two Rivers agreed to <br /> provide the current farmers on the HCIC ditch with long term water contracts to enable them to continue and expand <br /> their farming operations.Additional surplus of storage capacity exists once the Cucharas Reservoir is restored beyond <br /> the expanded farming needs projected by Two Rivers. <br /> Two Rivers has begun discussions with various water agencies to explore possibilities whereby the excess capacity of <br /> the HCIC system can be developed and assist in covering the projected shortfalls in Colorado's water needs. <br /> Formed in December 2002,Two Rivers is focused on acquiring and developing water resources in Colorado. <br /> Source: Newswire Article @ www.redorbit.com <br /> Form TADD—"WinTOTAL'appraisal software by a la mode,inc.—1-800-ALAMODE <br />