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7 � <br /> 961079 04/24/2018 0832 AM <br /> Page 4 of 18 <br /> 11.1.1. West Slope Decrees: The Fryingpan-Arkansas project diverts <br /> surface water from the headwaters of Hunter Creek and the Fryingpan River and their tributaries <br /> in Pitkin County. The principal water rights were adjudicated by the decrees in Civil Action No. <br /> 4613 (District Court, Garfield county) dated June 20, 1958, and August 3, 1959; and were <br /> modified by the Decree in Case No. W-829-76 (District Court, Water Division 5) dated <br /> November 27, 1979; and were supplemented by the Decree in Case No. 83CW352 (District <br /> Court, Water division No. 5) dated May 31, 1985. These water rights have an appropriation date <br /> of July 29, 1957. Water diverted under these decrees travels under the Continental Divide <br /> through Boustead Tunnel, which empties into Turquoise Reservoir. This water may be stored in <br /> Turquoise Reservoir, Twin Lakes Reservoir and elsewhere, and applied to beneficial use within <br /> Southeastern's District boundaries Because the water is imported from another river basin, it is <br /> fully consumable in Water Division 2. <br /> 11.1.2. East Slope Decrees: The Fryingpan-Arkansas Project also diverts <br /> and stores surface water from the Arkansas River and its tributaries in Lake, Chaffee, Fremont <br /> and Pueblo Counties. The principal water rights were adjudicated by the decrees in Civil Action <br /> No. 5141 (District Court, Chaffee County) dated July 9, 1969; and Civil Action No. B-42135 <br /> (District Court, Pueblo County) dated June 25, 1962; and were modified and supplemented by the <br /> Decree in Case No. 80CW6 (District Court, Water Division 2), dated October 23, 1980. These <br /> water rights include storage in Turquoise Reservoir, Twin Lakes Reservoir, Pueblo Reservoir and <br /> elsewhere, with an appropriation date of February 10, 1939, and are expressly decreed for <br /> exchange, reuse, and successive use to extinction for beneficial use within Southeastern's District <br /> boundaries. Under these decrees, Turquoise Reservoir and Twin Lakes Reservoir may store <br /> native water or imported water, directly or by exchange with each other or with Pueblo Reservoir. <br /> 11.1.3. Project Water Allocation: The Southeastern Colorado Water <br /> Conservancy District ("Southeastern") allocates Project Water annually based on its principles, <br /> policies, rules, and regulations. Any and all use of Project Water therefrom will be pursuant to <br /> and subject to the above-referenced decrees for the Fryingpan-Arkansas Project, and to all lawful <br /> rules, regulations, policies, and contract obligations of the Southeastern District. This Decree <br /> does not give South Forty any rights to use Fryingpan-Arkansas Project structures, or any rights <br /> of ownership or rights to purchase or receive allocations of Project Water therefrom. <br /> 11.2. UAWCD Leased Augmentation Water. South Forty has also entered into a <br /> February 10. 2017 Water Lease Agreement with UAWCD for a term of five years. UAWCD has <br /> agreed to provide up to 5 annual acre feet of fully consumable water for South Forty to use as a <br /> replacement supply hereunder. The water provided under the Water Lease Agreement with <br /> UAWCD will be supplied from UAWCD's sources of water rights in the Arkansas River Basin, <br /> including the following. <br /> 11.2.1. Twin Lake Shares. The Twin Lakes Share represents a pro rota <br /> interest in native Arkansas River diversions and the Independence Pass trans-mountain diversion <br /> system, which diverts water from the headwaters of the Roaring Fork River and its tributaries in <br /> Lindner/Aug Plan Appl/Pleadmgs/Mtn for Entry of ROR/Final ROR Decree 2-7-2018 Clean.doc 4 <br />