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.. . CWCB ANTHONY W, WILLIAMS BERNDT C. HOLMES J.D. SNODGRASS WILLIAM D. PRAKKEN DONALD E. JORDAN DAVID J. TURNER MARK A HERMUNOSTAD SUSAN M. CORLE JOHN P. GORMLEY THOMAS C. VOLKMANN GEOFFREY R. NIMS WILLIAMS, TURNER & HOLMES, P.C. ATTORNEYS AT LAW COURTHOUSE PLACE ElUILDING . 200 N. 6th STREET MAILING ADD~ESS - P.O, BOX 338 GRANO JUNCTION, COLORADO 81502 FAX: (3D3) 241-3026 TELEPHONE: (303) 242-6262 JUL 2 4 1991SILMON SMITH (1886.19641 CHARLES HOLMES (1897-1967) OF COUNSEL WARREN L TURNER BERNARD A. BUESCHER July 22, 1991 David W. Walker, Director Colorado Water Conservation Board 1313 Sherman Street Denver, CO 80203 Re: Amended Contracts between CWCB and City of Fruita, Contract Nos. C-153396 and C-153382 Dear David: As you are aware, we represent ute Water Conservancy District. As you are also aware, ute Water has raised some concerns about the above referenced Amended Contracts. As an introduction to my remarks, allow me to set forth a bit of the relevant history in this matter. ute Water and the City of Fruita entered into an Agreement dated December 27, 1983, concerning the merger of Fruita's in-city domestic water system into the system of ute Water. Pursuant to that Agreement, the Fruita water system was to be transferred to Ute Water, and Ute Water would then provide domestic water service to Fruita residents. ute Water has in fact been serving domestic water to Fruita residents since the merger of the two systems, but the water system was never formally transferred by Fruita to Ute Water. In April of 1990, Ute Water and Fruita entered into an Addendum to their 1983 Agreement, in order to resolve several disputes which had arisen under the 1983 Agreement. As you are aware, Fruita's contracts with CWCB were secured by certain portions of Fruita's domestic water system. One of the provisions of the Addendum to the 1983 Agreement between Ute Water and Fruita was that Fruita would use its best efforts to obtain a release from CWCB of its water system as security for the CWCB Contracts. After CWCB released its interest in the Fruita water system, Fruita would then convey that water system to Ute Water, pursuant to the Addendum. Fruita's efforts to obtain a release from CWCB of its water system commenced prior to the time that the 1990 Addendum to the Ute Water-Fruita Agreement was signed. You are familiar with the negotiations between Fruita and CWCB, so I do not need to summarize those negotiations here.