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B. Describe conditional water right giving the following from the Referee's Ruling <br />and Judgment and Decree: <br />1. Date of Original Decree: December 15, 1981, Case No. 80CW456, <br />District Court in and for Water Division No. 4. <br />2. Subsequent Decrees awarding findings of diligence: 85CW278; 89CW215; <br />96CW38; 03CW48; all in the District Court in and for Water Division No. 4. <br />3. Legal Description: <br />(a) Decreed location: the initial point of survey of Fresh Water Pond <br />No. 2 is on the dam axis in the East half of Section 9, Township 13 South, Range 90 West, 6th <br />P.M., from whence the Southeast corner of said Section 9 bears South 59° 3d 52" East 2,443.43 <br />feet. <br />(b) See attached map, Exhibit A-1. <br />4. Source of Water: Water tributary to North Fork Gunnison River, including <br />water intercepted and collected by works on the West Elk Coal Mine site. <br />5. Appropriation Date: September 9, 1979 <br />Amount: 9.98 acre-feet. <br />6. Use: Mine land reclamation, sedimentation, and pollution control, mining, <br />industrial, commercial, manufacturing, domestic and municipal purposes, and irrigation (pursuant <br />to land reclamation) of 108 acres. See attached map, Exhibit A-2. <br />7. Depth (if well): N/A. <br />The conditional water right herein is part of an integrated water system comprising all <br />water rights decreed and used for development and operation of the West Elk Mine. Reasonable <br />diligence in the development of one component of the system comprises reasonable diligence in <br />the development of all components. <br />C. Provide a detailed outline of what has been done toward completion or for <br />completion of the appropriation and application of water to a beneficial use as conditionally <br />decreed, including expenditures: <br />1. Background: Applicant owns and operates the West Elk Mine (the <br />"Mine"), located south of the North Fork Gunnison River near Somerset, Colorado. The <br />-2-