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PETROS & WHITELLC <br />ATTORNEYS AT LAW <br />1999 BROADWAY, SUITE 3200 <br />DENVER, COLORADO 80202 <br />TELEPHONE (303) 825-1980 <br />1983 <br />FACSIMILE (303) 825- <br />Via e-mail and U.S. Mail <br />Mr. Dave Nettles <br />Assistant Division Engineer, Division 1 <br />Ms. Shera Somerford <br />Water Commissioner, District 5 <br />810 9th Street <br />Greeley CO, 80631 <br />June 10, 2009 <br />Re: Dowe Flats Surface Water Substitution or Exchange <br />Dear Mr. Nettles and Ms. Somerford: <br />Thank you for your prompt response, by letter dated May 28, 2009, to the proposal made <br />on behalf of our client, Cemex, Inc., to operate a surface water substitution or exchange at the <br />Dowe Flats quarry site. We understand and accept your suggested modification and propose the <br />following to allow for real-time substitution of C-BT water for surface water captured and stored <br />in the Dowe Flats quarry pits when Cemex's Dowe Flats Storage Right is not in priority between <br />April 1 and October 31 of each year. <br />As you suggested, Cemex will place C-BT units corresponding to 13 acre-feet of water at <br />the Water Commissioner's disposal on or before April 30 of each year rather than June 15 as <br />suggested in our initial proposal. The Water Commissioner may release this water, as necessary, <br />in substitution of water captured in the Dowe Flats quarry pits when the Dowe Flats Storage <br />Right is not in priority during the summer months (April 1 to October 31). When and if, at any <br />time, additional substitute water is necessary as demonstrated by the monthly accounting reports, <br />Cemex shall at the Water Commissioner's request, direct the Northern Colorado Water <br />Conservancy District ("Northern") to deliver the requisite units of C-BT water to the St. Vrain. <br />As described in our initial proposal, Cemex shall provide replacement C-BT water for <br />surface water stored out of priority from October 31 to April 1, should the Dowe Flats Storage <br />Right not come into priority during the spring runoff. Such releases shall be made by the Water <br />Commissioner from C-BT units turned over to the Water Commissioner for this purpose by <br />Cemex on or before June 15 of each year. <br />The remainder of our proposal remains unmodified, including Cemex's intent to provide, <br />on or before June 15, 2009, any of the 25 acre-feet of replacement water necessary for <br />substitution of water already stored in the Dowe Flats quarry pits which has not been supplied by <br />the exercise of Cemex's Dowe Flats Storage Right as of that date. It is our understanding,