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CiAELSON, HAKNOND & PADDOC F, L.L.C. ATTORNEYS AT LAW 1900 GRANT STREET, SUITE 1200 MARY MEAD HAMMOND DENVER. COLORADO 60203 WILLIAM A. PADDOCK LEE H. JOHNSON TELEPHONE (303) BSJ-9000 KARL D. OHLSEN MASON H. BROWN TELECOPIER (303) 661-9026 Sender's Email: MBrown @CHP- Law.com February 25, 2013 Ka U.S. Mail Colorado Water Conservation Board Department of Natural Resources Attn: Peg Mason 1580 Logan St. Suite 600 Denver, CO 80203 JOHN UNDEM CARLSON (1940-1992) e -mail: chp@chp- iaw.00m webelte: www.chp - law.com Re: The Sanchez Ditch and Reservoir Company Loan Contract No. C 150342 Dear Ms. Mason: Pursuant to paragraph A.7 of the above referenced contract, please be advised as follows: 1. I am the attorney for the Sanchez Ditch and Reservoir Company, a Colorado nonprofit corporation. 2. The loan contract regarding the above referenced contract number has been duly executed by the officers of the Sanchez Ditch and Reservoir Company. The officers who have executed the loan contract have been duly appointed, and are authorized to execute the contract and to bind the Sanchez Ditch and Reservoir Company. 3. The resolution of the Sanchez Ditch and Reservoir Company authorizing the delivery of the above mentioned contract was duly adopted by the Sanchez Ditch and Reservoir Company's board of directors and stockholders. 4. There are no provisions in the Sanchez Ditch and Reservoir Company's articles of incorporation or bylaws, nor any state or local statute which would prevent the provisions of the above referenced contract from binding the Sanchez Ditch and Reservoir Company. 5. The above referenced contract shall be valid and binding against the Sanchez Ditch and Reservoir Company if entered into by the Colorado Water Conservation Board. Please feel free to contact me if you have any questions about the content of this opinion letter, or if you need additional information.