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COLORADO COOPERATIVE COMPANY DITCH RELOCATION AGREEMENT
<br />THIS AGREEMENT is made on the I day of D,,,-„, ET 2011 between
<br />COLORADO COOPERATIVE COMPANY, a Colorado mutual ditch company ( "CCC "), P.O.
<br />Box 231, Nucla, Colorado, 81424 and WESTERN FUELS - COLORADO, LLC, a limited
<br />liability company ( "WFC "), P.O. Box 33424, Denver, Colorado 80233 .
<br />A. CCC operates that certain irrigation canal known as the "Second Park Lateral
<br />Ditch" which diverts from the CCC's main Highline Canal in the NWI /4 of
<br />Section 30, and runs from that diversion generally in a west - southwesterly
<br />direction. For purposes of this Agreement, that portion of the Second Park
<br />Lateral Ditch that traverses seven parcels of real property commonly known as the
<br />"Wagler, Carver, Nylund, K. Nygren, D. Nygren, Meehan and Garvey" properties
<br />(each of which is legally described in Exhibit A attached to the Agreement and
<br />incorporated herein by this reference) located within the Win Section 30, T47N,
<br />R15W, N.M.P.M and Section 25, T47N, R16W, N.M.P.M. shall be referred to as
<br />the "Ditch ".
<br />B. WFC currently plans to conduct in the future surface coal mining operations in
<br />the area of the Ditch, and desires to place in closed pipe and relocate, first to a
<br />temporary location and then to a permanent location, approximately 7,900 linear
<br />feet of the Ditch in order to facilitate its mining operations in the area of the
<br />Ditch.
<br />C. Specifically, WFC desires to relocate the Ditch within the Meehan & Garvey
<br />properties in order for WFC to conduct coal mining operations on such properties.
<br />WFC desires to construct an intake structure approximately S39 °40' E 300 feet
<br />from the Northeast corner of Section 25, Township 47 North Range 16 West of
<br />the New Mexico Principal Meridian, on the Nylund property. The Ditch will then
<br />be piped from this structure across Nylund, K. Nygren, D. Nygren, Wagler,
<br />Carver, Meehan and Garvey properties to an outlet structure located on the west
<br />side of Montrose County's 2600 Road on the Garvey Property. The permanent
<br />pipeline will follow the existing ditch location. If the Nygren and Carver
<br />properties are mined, the temporary pipeline will depart from the existing ditch
<br />location in the middle of the Carver Property, cross the D. Nygren property to
<br />2650 Road then continue to the south to AA Road and around the south and west
<br />sides of the Garvey property and then back to the north to the existing ditch. Once
<br />mining has been completed in the area of the existing ditch as it crosses the
<br />Meehan and Garvey properties and, if mined, the Carver and Nygren properties,
<br />the permanent pipeline will be repositioned to follow the Ditch alignment
<br />according to the Construction Design Plans. The Construction Design Plan,
<br />prepared subsequent to mining, may vary from the current Ditch alignment.
<br />C. CCC desires to consent to the above - described relocation of the Ditch, subject to
<br />the approval of a majority of the outstanding shares of CCC and all terms and
<br />conditions of this Agreement.
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