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II. CONCLUSIONS OF LAW <br />Case No. 2005CW118 (98CW437( (87CW011) <br />Water Division One <br />that it did not wish to continue mining of sand and gravel from the Applicants' gravel pit. <br />Accordingly, during the diligence period Applicants negotiated with their lessee <br />concerning the transfer of the pit reclamation obligation back to Applicants, negotiated <br />with another potential lessee, successfully applied to transfer ownership of the gravel <br />mine permit back to Applicants, and posted the necessary financial warranty to allow <br />continuation of mining operations under the transferred permit. Annual mine permit fees <br />were also paid during every year of the diligence period. <br />Due to issues surrounding the gravel mining lease and the transfer of the mine permit to <br />Applicants, they were not able to put additional amounts of the conditional portion of <br />their water right to beneficial use during the diligence period, but have maintained the <br />legal right to do so in the future. <br />A. The foregoing Findings of Fact are hereby incorporated herein to the extent they <br />constitute Conclusions of Law. <br />B. Timely and adequate notice of the Application was given in the manner provided <br />by law, and this Court has jurisdiction over the subject matter of these <br />proceedings and over all persons and property affected thereby, whether they have <br />chosen to appear or not. C.R.S. §§ 37 -92 -203, 37 -92 -302. <br />C. Applicants have exercised reasonable diligence with respect to the completion of <br />the appropriation of the conditional water right, and have otherwise fully <br />complied with applicable law. C.R.S. §§ 37- 92- 301(4)(a), 37- 92- 305(9)(b). <br />III. RULING <br />A. This Ruling hereby incorporates the preceding Findings of Fact and Conclusions <br />of Law as if fully set forth herein. <br />B. Applicants have exercised reasonable diligence in the development of the <br />conditional portion of the water right decreed for the beneficial use of the <br />extraction of sand and gravel (13.9 acre - feet). <br />C. The remaining conditional portion of the water decreed to the Erker Gravel Pit for <br />the extraction of sand and gravel (13.9 acre -feet) is hereby continued in full force <br />and effect until the last day of , 2011. If Applicants desire to maintain <br />the conditional portion of this water right, they must file with the Water Clerk an <br />application for a finding_of reasonable diligence or to make such conditional uses <br />absolute by the end of Lam/ , 2011. <br />3 <br />