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.lul 21 03 08:23a Hill Bailey 970-625-5605 p.4 <br />Bili Bailey <br />July 18, 2003 <br />Page 2 <br />Once a quiet title decree is obtained for the consumptive use credits associated with the Last <br />Chance Ditch, Colorado Rivers Edge also needs to complete its purchase ofthese credits from Scott <br />Balcomb's group. I spoke today with Allen Thulson, the attorney with Mr. Balcomb's firm who is <br />handling the quiet title proceedings, and he indicated that the State of Colorado filed a Disclaimer <br />of Interest with the Court yesterday. He will now file the publication notice ofthe summons, which <br />will give unknown third parties the opportunity to file an answer in the proceedings for a period of <br />approximatelytwomonths. Asswningnoanswersorotherresponsivepleadingsarefiledinrespwtse <br />to the published summons, afinal decree should be issued relatively soon after the publication period <br />expires. I wiil keep you updated un any new informatiat that I obtain aboui the proceedings and let <br />you know when a final decree is obtained. In tun-, I ask that you let us know if you wish us to <br />be involved in reviewing and closing the purchase once a final decree is obtained. <br />Once the appropriation of the conditional water rights has been completed (i.e., a well perntit <br />leas been obtained and mining of the pits has been completed), you will need to file another <br />application with the water court, seeking to have the water rights made absolute, If the appropriation <br />is not completed within six years, you will need to file a diligence application, in the month of Iuly, <br />2009, seeking to continue the conditional water rights for another six years. The Court will notify <br />you several months before that diligence application is due. Ifyou change your address, you should <br />notify the Court of your new address, so that the notice will be sent to the proper address. <br />It was a pleasure representing you in this matter. <br />Very truly yours, <br />WILLIAMS, TURNER & HOLMES, P.C. <br />Thomas K. Snodgrass <br />TKS/ben <br />Enclosure <br />cc: Rebecca Nichols <br />