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<br />THE LAKE CANAL COMPANY <br />THE LAKE CANAL RESERVOIR COMPANY <br /> <br />May 8, 2008 <br />The Applegate Group, Inc. <br />Attn: Mr. Richard Raines <br />1499 West 120" Ave., Suite 200 <br />Denver, CO 80234-2728 <br />Subject: Lafarge Middle Poudre Combined SWSP WY 2008 <br />Dear Richard: <br />(970) 352-0222 <br />In Table No. 7, provided by The Applegate Group, Inc., the water year 2008 water balance <br />indicates 174.85 acre-feet of augmentation water is needed for the Lafarge Middle Poudre <br />Combined SWSP. The Lake Canal Reservoir Company has coordinated with the Poudre River <br />Water Commissioner, Mr. George Varra, to release the augmentation water, including return <br />flows, from the Gray Lakes. <br />The lease will be for the months shown in your Table No. 7 and it is your responsibility to <br />provide any additional accounting the Water Commissioner may request. <br />At the earliest convenience, please remit payment to the name and address found on the <br />enclosed invoice. <br />Please accept my apology for the lateness of this lease letter. If you require additional <br />information do not hesitate to contact the Lake Canal Reservoir Company at (970)-352-0222 <br />Sincerely, 4el(K <br />Shawn Hoff' <br />Lake Canal Reservoir Company <br />Cc: Mr. Dale Trowbridge, LCRC <br />33040 Railroad Avenue • P.O. Box 104 • Lucerne, Colorado 80646