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THE LAKE CANAL COMPANY <br />THE LAKE CANAL RESERVOIR COMPANY <br />(970) 352-0222 <br />ti's 1 I <br />I <br />May 30, 2009 <br />The Applegate Group, Inc. <br />Attn: Ms. Sira Sartori <br />1499 West 120th Ave., Suite 200 <br />Denver, CO 80234-2728 <br />Subject: Lafarge Middle Poudre SWSP WY 2009 <br />Dear Sira: <br />The Lake Canal Reservoir Company has reserved 6.52 acre-feet of augmentation water <br />for the Middle Poudre Substitute Water Supply Plan for Lafarge. The source of the <br />augmentation water will be from a system of reservoirs owned by the Lake Canal <br />Reservoir Company. Some of the reservoirs are known as the Gray Lakes and they are <br />senior reservoirs filled from the Box Elder Creek, a tributary to the Cache La Poudre <br />River. <br />The lease will be for the months and acre-foot amounts found in your e-mail from May <br />27, 2009 and also shown in the table below: <br />Apr-09 1.14 <br />May-09 1.58 <br />Jun-09 0.35 <br />Aug-09 1.49 <br />Sep-09 1.96 <br />Total 6.52 <br />It is your responsibility to coordinate the Middle Poudre SWSP including the required <br />releases with the water commissioner, Mr. George Varra, (970) 484-1628, and <br />subsequently provide any accounting he may request. <br />If you are in agreement, please forward the enclosed invoice to your client for payment. <br />When payment is received the augmentation water will be made available. <br />Please do not hesitate to contact the Lake Canal Reservoir Company at (970) 352-0222 <br />or Mr. Shawn Hoff at (970) 686-6568, if you need additional information. <br />33040 Railroad Avenue 9 P.O. Box 104 + Lucerne, Colorado 80646