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founded in contract. Decker v. Browning-Ferris Indus. of Colorado. Inc., 931 P.2d 436, 443 <br /> (Colo. 1997). The Liquidation Plan contains no language setting forth a duty of good faith and <br /> fair dealing, so the MCR's claim may not be founded in contract. Here, any breach of the <br /> implied covenant of good faith and fair dealing is a tort for which sovereign immunity has not <br /> been waived. CGIA § 106. As a tort claim for which immunity stands, dismissal for lack of <br /> subject matter jurisdiction is appropriate. Fogg at 276. <br /> 4. This Court is without jurisdiction to hear MCR's sixth claim <br /> for relief because MCR has failed to exhaust administrative <br /> remedies concerning its rights, status, or potential liability under <br /> its Colorado Discharge Permit for cleaning the 001 Ponds. <br /> MCR alleges in its sixth claim for relief that this Court should issue a declaratory <br /> judgment regarding MCR's rights, responsibilities and liabilities with respect to the 001 Ponds <br /> under its water discharge permit. The water discharge permit was issued by the Colorado <br /> Department of Public Health and Environment("Health Department"). MCR has filed an <br /> application for permit renewal with the Health Department. Exhibit 1. MCR's application <br /> raises with the Health Department the very issues that MCR wants this Court to address. This <br /> Court should decline MCR's request for a declaratory judgment. <br /> First,the Court should defer to contemporaneous agency proceedings where the agency is <br /> empowered to handle the issues and entrusted with enforcement of the relevant laws. See Navajo <br /> Freight Lines. Inc.; Litvak Meat Co.; Heron. Second, given its pending application for permit <br /> renewal, MCR has failed to exhaust its administrative remedies as to its water discharge permit. <br /> If a party fails to satisfy the exhaustion requirement, the district court is without jurisdiction to <br /> hear the action. State of Colorado v Golden's Concrete Company, 1998 WL 251638 (Colo.). <br /> 15 <br />