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. .Xhibit A STIPULATION AND AGREEMENT The Conejos Water Conservancy District ("Conejos District") and the Colorado Water Conservation Board (the "Conservation Board") enter into the following Stipulation and Agreement in recognition of the need to integrate two goals of the State of Colorado: I. To provide flexibility in order to maximize the benefi- cial use that Colorado can make of the waters of the Conej os River under the Rio Grande Compact, and II. The establishment and exercise of water rights obtained for the purpose of preserving the natural environment to a reasonable degree. IT IS AGREED BY AND BETWEEN THE CONEJOS DISTRICT AND THE CONSERVATION BOARD AS FOLLOWS: 1. This stipulation and Agreement shall apply only to the water rights (hereinafter "Conservation Board water rights") on the Conejos River listed on Appendix A. 2. The Conservation Board agrees to subordinate the Conservation Board water rights listed on Appendix A to certain practices of the Conejos District for the purpose of maximizing the beneficial use of the water available for use in Colorado under the Rio Grande Compact. Subordination shall mean that the Conservation Board's water rights shall be treated as junior to the practices specified hereunder and shall not be used by the Board to callout or otherwise object in any administrative or judicial proceeding to the following: a. All present uses and. exchanges with regard to Platoro Reservoir established as of October 7, 1982, and future exchanges of presently decreed direct flow water rights owned by the constituents of the Conejos District, and future exchanges of the Conejos District's Closed Basin allocation, provided that the following conditions are met: i) storage of the direct flow water rights shall occur only when the water is lawfully in priority and physically available at their direct flow points of diversion;