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R~eiv~ AUK 2 g 20p2 AGREEMENT t~~~J~~.rdllgp ~'~e~ oltigina ~~ Ory/~e THIS AGREEMENT is made and entered into this 21st day of May, 6 Gao%y 2002, effective May 1, 2002, by and between Montezuma Valley Irrigation Company, hereinafter referred to as "MVIC", Four States Aggregates, LLC, hereinafter referred to as "Four States" and Duvall Truelson, hereinafter referred to as "Truelson". This Agreement acknowledges that MVIC is the owner of Groundhog Reservoir. Truelson is the owner of Home Ditch, which is priority D-3 on the Dolores River above McPhee Reservoir. Truelson proposes to dry-up up to 23+ acres of those lands historically irrigated under Home Ditch. Four States proposes to use those irrigation consumptive use credits against depletions caused by operation of the gravel mining operation operated by Four States known as Line Camp Gravel Pit, on Truelson's irrigated land. The gravel mining operation is located in Sections 22 and 27, T38N, R14W, N.M.P.M., Montezuma County, Colorado, approximately 9 miles upstream from the Town of Dolores on the Dolores River. This plan is valid through April 30, 2003, unless otherwise revoked or modified. This substitute water supply plan may be revoked or modified at any time should it be determined that injury to MVIC or any other water rights has or will occur as a result of this plan. MVIC agrees to exchange those consumptive use credits up to Groundhog Reservoir and release those credits, as required by the Division Engineer, to replace depletions from the mining operation that impact the Dolores River when the Home Ditch water right is out of priority or not in its historical season of use. Truelson agrees to sell/provide those excess .consumptive use credits that are exchanged up to Groundhog Reservoir that are not required for immediate release and a reasonable reserve.