2012-06-20_PERMIT FILE - C2010089 (58)

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COLORADO COOPERATIVE COMPANY DITCH RELOCATION AGREEMENT THIS AGREEMENT is made on the 5r `day of 1)ArrhrW04EW 2011 between COLORADO COOPERATIVE COMPANY, a Colorado mutual ditch company ( "CCC "), P.O. Box 231, Nucla, Colorado, 81424 and WESTERN FUELS- COLORADO, LLC, a limited liability company ( "WFC "), P.O. Box 33424, Denver, Colorado 80233. A. CCC operates that certain irrigation canal known as the "Second Park Lateral Ditch" which diverts from the CCC's main Highline Canal in the NW1 /4 of Section 30, and nins from that diversion generally in a west - southwesterly direction. For purposes of this Agreement, that portion of the Second Park Lateral Ditch that traverses seven parcels of real property commonly known as the "Wagler, Carver, Nylund, K. Nygren, D. Nygren, Meehan and Garvey" properties (each of which is legally described in Exhibit A attached to the Agreement and incorporated herein by this reference) located within the Wvz Section 30, T47N, R15W, N.M.P.M and Section 25, T47N, R16W, N.M.P.M. shall be referred to as the "Ditch". B. WFC currently plans to conduct in the future surface coal mining operations in the area of the Ditch, and desires to place in closed pipe and relocate, first to a temporary location and then to a pennanent location, approximately 7,900 linear feet of the Ditch in order to facilitate its mining operations in the area of the Ditch. C. Specifically, WFC desires to relocate the Ditch within the Meehan & Garvey properties in order for WFC to conduct coal mining operations on such properties. WFC desires to construct an intake structure approximately S39 °40' E 300 feet from the Northeast corner of Section 25, Township 47 North Range 16 West of the New Mexico Principal Meridian, on the Nylund property. The Ditch will then be piped from this stricture across Nylund, K. Nygren, D. Nygren, Wagler, Carver, Meehan and Garvey properties to an outlet stricture located on the west side of Montrose County's 2600 Road on the Garvey Property. The permanent pipeline will follow the existing ditch location. If the Nygren and Carver properties are mined, the temporary pipeline will depart from the existing ditch location in the middle of the Carver Property, cross the D. Nygren property to 2650 Road then continue to the south to AA Road and around the south and west sides of the Garvey property and then back to the north to the existing ditch. Once mining has been completed in the area of the existing ditch as it crosses the Meehan and Garvey properties and, if mined, the Carver and Nygren properties, the permanent pipeline will be repositioned to follow the Ditch alignment according to the Construction Design Plans. The Constnuction Design Plan, prepared subsequent to mining, may vary from the current Ditch alignment. C. CCC desires to consent to the above - described relocation of the Ditch, subject to the approval of a majority of the outstanding shares of CCC and all terns and conditions of this Agreement.