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THE LAKE CANAL COMPANY <br />THE LAKE CANAL RESERVOIR COMPANY <br /> <br />The Applegate Group, Inc. <br />Attn: Mr. Jared Dains <br />1499 West 120'h Ave., Suite 200 <br />Denver, CO 80234-2728 <br />December 9, 2010 <br />Subject: Lafarge Upper Poudre SWSP WY 2011 <br />Dear Jared: <br />(970) 352-0222 <br />The Lake Canal Reservoir Company (LCRC) has reserved 69.5 acre-feet of augmentation <br />water for the Upper Poudre Substitute Water Supply Plan. The source of the augmentation <br />water will be from a system of reservoirs owned by LCRC known as the Gray Lakes. The <br />LCRC change case 06CW276 lists augmentation as a changed use. <br />The lease will be for the months and amounts as found in your e-mail dated November 30, <br />2010. The table found below is expanded to include the accompanying return flow <br />releases and transit losses to satisfy the required 69.5 acre-feet of augmentation water. <br />Cu RF Transit Loss Total <br />45%0 55% 4.1% Release <br />Month Acre-Feet Acre-Feet Acre-Feet Acre-Feet <br />Jul 2011 2.6 3.2 0.2 6.0 <br />August 2011 36.8 45.0 3.5 85.3 <br />September 2011 27.0 33.0 2.6 62.6 <br />October 2011 3.1 3.8 0.3 7.2 <br />69.5 84.9 6.6 161.0 <br />It is my understanding you contacted the District 3 Water Commissioner, Mr. George <br />Varra, and he has accepted the use of this water in the Lafarge Upper Poudre SWSP. <br />Please coordinate the required releases with the water commissioner and subsequently <br />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 or <br />Mr. Shawn Hoff at (970) 686-6568, if you need additional information. <br />33040 Railroad Avenue • P.O. Box 104 a Lucerne, Colorado 80646