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<br />, <br /> <br />\..' <br /> <br />e <br /> <br />Since our purchase of the property, one of our <br />objectives has been to "clean up" the water rights. The case <br />you have mentioned is a part of this process. At no point <br />have we sought to file on new water rights or to change what <br />has been the historical practices on the ranch. To <br />characterize our water rights as being under a "cloud" is <br />penalizing us for taking the proper actions to protect these <br />valuable rights. <br /> <br />As I am sure you are aware, Statements of Opposition <br />have been filed by the City of Pallisade and the Ute Water <br />Conservancy District to the above mentioned case. Neither of <br />these entities is disputing our historical use(s) of the <br />reservoir water but are merely "throwing their hat in the <br />ring" to make sure the court confirms what has been the <br />historical practice and does not in any way injure their <br />water rights on Rapid Creek. There is nothing unusual or <br />"clouded" about any of this. <br /> <br />e <br /> <br />The last issue mentioned in your letter has to do with <br />our submission of plans to the SEO for the repair of the <br />outlet works on the number one reservoir. I don't see how <br />this has any bearing on our application. You have been aware <br />that the dams were under restrictions by the SEO since the <br />time we first applied for the loan. As a point of fact, the <br />plans have been approved by the Glenwood office and are <br />awaiting final approval in Denver. I have no idea why you <br />are attempting to make this an issue at this late date. <br /> <br />If I am reading your letter correctly, you are now <br />suggesting that. we incur all expenses for the repairs of <br />reservoir #1, and then "if and when" certain issues are <br />resolved the CWCB will "assist" us with the repair of <br />reservoir #2. This suggestion is unacceptable. <br /> <br />e <br /> <br />To repeat again, you and your staff have been fully <br />aware of the situation effecting these reservoirs from the <br />time we first applied for the loan. We were in fact <br />initially contacted by your staff because the reservoirs <br />were on the SEO's list as reservoirs under restriction. From <br />the outset we have informed your staff of the measures we <br />have been taking to keep us in compliance with the SEO. Part <br />of this process has been to submit engineering drawings so <br />that the headgate on dam #1 could be repaired and the water <br />rights could be administered. We have been told more then <br />once that any costs we incurred as a part of the overall <br />