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(` ~'~, <br />Ruling of Referee and Decree of the Water Court <br />Case No. 04CW34, Water Division 1 <br />Page 2 of 4 <br />4. Description of Conditional Water Riaht. By the Application, Cemex and <br />Longmont request that a finding of reasonable diligence be decreed for the following described <br />water right: <br />A. Name: St.'Vrain-PortlandNo. 1 Reservoir. <br />B. Decree: A decree was entered on June 27, 1991 by the District Court, <br />Water Division No. 1, in Case No. 84CW177. <br />C. Legal Descripfion of Structure: The St. Vrain -Portland No. 1 <br />Reservoir is located in Section 28, Township 3 North, Range 70 West of the 6th P.M., <br />Boulder County, Colorado. <br />D. Source: St. Vrain Creek via Swede Ditch, Boulder Feeder Canal, Foothills <br />Reservoir Feeder' Canal, and Smead Ditch <br />E. Amount: 9,000 acre-feet, conditional. <br />F. Use: Irrigation, municipal, industrial, flood control, water quality control, <br />recreation, fishery enhancement, minimum stream flows, exchange and replacement. <br />G. Portion Made Absolute: A portion of the conditional water right was <br />made absolute for 1607 acre-feet for irrigation, industrial, flood control, recreation, fishery <br />enhancement, attd exchange and replacement purposes in a decree entered in Case No. <br />97CW189, District Court, Water Division No. 1 on February 9, 1998. <br />S. Prior Dilgence FindinQS. A finding of reasonable diligence for the remaining 5t. <br />Vrain - Portland No. l Reservoir conditional water right was also made in the decree entered in <br />Case No. 97CW189, District Court, Water Division No. 1 on February 9, 1998. The remaining <br />portion of the conditional water right was continued for all other decreed uses and amounts. <br />6. Transfer of the Interest in A-Pit 5toraee Rieht to Longmont. Cemex originally <br />worked with the St. Vrain and Left Hand Water Consezvancy District (the "District") to develop <br />water storage opportunities in these mine pits for the benefit of Cemex and for water users within <br />the District including Longmont. Cemex and the District were co-applicants in the application <br />filed in 1984 to adjudicate the conditional water right and the application filed in 1997 for a <br />finding of reasonable diligence. These parties entered into an agreement dated April 15, 1991 <br />("1991 Agreement"), to formalize their cooperative association. This agreement was <br />supplemented by the letter ofunderstanding dated June 23, 1997, from the District to <br />Southdown. During the Diligence period, the District transferred its interest in the corditiona] <br />water right to Longmont, in accordance with an earlier agreement dated June 26, 1990, between <br />Longmont and the District, and as provided by the 1991 Agreement. On February 11, 2004, <br />Longmont acquired the District's interest in the conditional water right by Bargain acid Sale <br />Deed. Prior to this transfer, Longmont had participated in the activities associated with the St. <br />Vrain -Portland No. 1 Reservoir and development of the conditional water right in accordance <br />with an agreement dated Tune 26, 1990 between the District and Longmont. <br />