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<br />\. <br /> <br />1131 <br /> <br />. <br /> <br />WHERE CAN THIS WATER BE USED? <br />Generally it is easier to get the courts to let water be utilized <br />DOW~STREAM rather UPSTREAM, because fewer users are left to file <br />objections. If water is available, trades sometimes can be made to take <br />it upstream. Pipelines can carry water from it's rOINT OF DIVERSION, <br />generally, without changing it's point of diversion. <br /> <br />WHAT SYSTEM IS COLORADO WATER DIRECTED UNDER? <br />The Priority System. That is to say that when a downstream user with <br />senior priority for an amount of water calls for this water, an upstream <br />user with junior priority is shut down. <br /> <br />OF WHAT SIGNIFICANCE IS THE AMITY SYSTEM? <br />It involves the largest PRIVATELY held storage in Colorado as well as the <br />largest PUBLICLY held storage (John Martin Reservoir) in the state of <br />Colorado. John Martin has a capacity of 655,000 acre feet, of which <br />350,000 acre feet is the conservation pool with the balance being flood <br />storage. Amity's 50,000 a.ft. of storage is ABOVE the conservation pool. <br />The conservation pool belongs 60% to Colorado and 40% to Kansas. <br /> <br />LOCATION? <br />AMITY HEADGATE is located near Prowers, Colorado, and is ten miles below <br />.JOhn Martin Dam. This system extends east into Kansas, ending at . <br />CHEYENNE CREEK, just inside the Kansas Border. The reservoir storage . <br />headgate (KICKING BIRD) is located west of La Junta and delivers into the <br />AMITY CANAL at BIG SANDY CREEK. This lends some flexibility of delivery <br />of water for a potential buyer, as it could be delivered in the Amity <br />system just INSIDE KANSAS without any application for export of water or <br />change of point of diversion. It could be delivered by pipeline from the <br />KICKING BIRD into LAKE MEREDITH (distance 12 miles) where COLORADO <br />SPRINGS takes the COLORADO CANAL and CO~SOLIDATED DITCH water into the <br />Colorado Springs System, thereby making it available for trade or <br />possible delivery anywhere on the Front Range. <br /> <br />John, I hope this helps to make the offering of the Amity water a little <br />more understandable. It is very complex but that should not take away <br />from it being an outstanding opportunity for someone to own a very rare <br />asset that will appreciate substantially in the future. <br /> <br />Give me a call if you have any more questions. <br /> <br />Yors truly, <br /> <br />lJ-:ud- <br /> <br />W.R. Davis <br /> <br />. <br />