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diligence with regard to the subject conditional water right. Legal fees incurred in connection <br />with this case exceeded $3,200. <br />C. In July, 2006, the Applicant filed Cases No. 06CW131 and 132 <br />seeking a finding of reasonable diligence in the development of a conditional decree for the Mt. <br />Gunnison Pipeline and seeking to make certain conditional rights absolute in part. In December, <br />2006, a ruling and decree were entered finding reasonable diligence in the development of the Mt. <br />Gunnison Pipeline water right, making the conditional right absolute in part, and approving a <br />change to correct a point of diversion. Since the subject conditional water right is part of a unified <br />and integrated water supply system, of which the Mt. Gunnison Pipeline water right forms a part, <br />the Applicant's efforts to develop that water right constitute diligence with regard to the subject <br />conditional water right. Legal fees incurred in connection with this case exceeded $2,600. <br />d. In early 2008, the Applicant commissioned a conceptual feasibility <br />study from Wright Water Engineers for sizing and filling Snowshoe Reservoir. The study was <br />carried out and completed in February and March of 2008. It examined the physical water supply <br />available, evaluating streamflow data from available gauge records and taking account of <br />administration to satisfy instream flow water rights of the Colorado Water Conservation Board, <br />and existing topography at the decreed location, creating a stage-capacity curve for the proposed <br />reservoir, to assess the feasibility of the proposed reservoir. Engineering fees incurred in <br />connection with this study exceeded $5,500. <br />e. In April, 2008, the Applicant filed Case No. 08CW44 seeking a <br />finding of reasonable diligence in the development of the conditional decrees for the Snowshoe <br />Dam and Reservoir and Snowshoe Pipeline. In July, 2009, a Decree was entered finding <br />reasonable diligence in the development of the conditional water rights in that case. Since the <br />subject conditional water right is part of a unified and integrated water supply system, of which <br />the Snowshoe Dam and Reservoir and Snowshoe Pipeline water rights form a part, the <br />Applicant's efforts to develop those water rights constitute diligence with regard to the subject <br />conditional water right. Legal fees incurred in connection with this case exceeded $9,800.00. <br />f. Applicant is currently reconfiguring various storage ponds located on <br />the minesite, including Fresh Water Pond No. 2, the subject of this diligence application. To that <br />end, Applicant has filed an application with the Colorado Division of Reclamation, Mining and <br />Safety to expand a small existing sedimentation pond to be called Sedimentation Pond MB-5E, <br />near the decreed location of Fresh Water Pond No. 2, and is filing concurrently herewith an <br />Application for Changes of Water Right to relocate certain absolutely decreed water rights, as <br />well as the conditional water right herein, to reflect the proposed new configuration of <br />sedimentation and fresh water storage facilities on the minesite. <br />-4-