TO: ALL PERSONS INTERESTED IN WATER APPLICATIONS IN SAID WATER DIVISION NO. 7

DISTRICT COURT, WATER DIVISION 7, COLORADO WATER RESUME TO: ALL PERSONS INTERESTED IN WATER APPLICATIONS IN SAID WATER DIVISION NO. 7 Pursuant to C.R.S. 37-92-302, you are notified that the following is a resume of all water right applications filed in the Office of the Water Clerk during the month of January, 2003, for each County affected. 02CW11 (La Plata County, Spring Creek, Reid Ditch, Animas River, Water District 30) 1. Richard L. Emmett, Patricia J. Emmett, 177 Cutler Dr., Durango, CO 81301, (970) 247-8225 2. Richard L. Emmett #10904, P.O. Box 458, Durango, CO 81302, (970) 247-2573 3. Emmett Diversion and Emmett Reservoir 4. Direct flow and storage of waste water 5. Spring Creek, and Reid Ditch, tributary of Animas River 6. Location: Diversion: A point of diversion located in the NW1/4NW1/4 of Section 15, T 35 N, R 9 W of the N.M.P.M., in La Plata County, Colorado, on the North line of Lot 4, Section 15, T 35N R 9 W of the N.M.P.M., as shown on the plat of the dependant Re-survey of T35 N, R 9 Wof the N.M.P.M., prepared by Edward S. Snell, U.S. Deputy Surveyor in 1891, said Lot being a portion of the C.L. McGrew land patent from whence the NW corner of said Section bears S. 88 38 53 W. 580.0 feet. Reservoir: Lot 26, Valley Acres(NW1/4NW1/4 Section 15, Township 35 N, Range 9W., N.M.P.M. 7. Irrigation, stock water, and aquaculture 8. Concrete head gate to be constructed in existing ditch, and existing excavated reservoir, with pumped sprinklers 9. Head gate on unnamed lateral at SW corner of property owned by John Wessman on property line with Lot 26 Valley Acres (approximately 10 feet east of SW Quarter corner of SW1/4SW1/4 Section 10, Township 35 N, Range 9W, N. M. P. M. (2 pages) 03CW01 Jeff Wise, P. O. Box 2916, Durango, CO 81302; Attorney for Applicant, Bruce M. Kirkpatrick, P. O. Box 2747, Durango, CO 81302: Application for change of water right from Culhane Hills Subdivision under Case No. W1286-74 to 101 Sawmill Road, Durango. The consumptive use of the water is.3975 acre feet per year and remains unchanged from the original decree. (6 pages) 03CW2 Christopher J. Kloster, 41263 Road G, Mancos, CO 81328: Ditch; SW1/4SW1/4, Section 4, T35N, R13W, N.M.P.M., 397 feet from S and 1224 feet from W; Unnamed return flow ditch-weber ditch- Mancos River; Montezuma County; Irrigation, livestock; 0.5 cfs Conditional; Application for Water Rights (Surface) (4 pages) 03CW3; ARCHULETA COUNTY, WATER DISTRICT NO. 78: 1) Applicant: Alan and Barbara Sackman, 13211 West Highway 160, Pagosa Springs, Colorado 81147, (970) 731-5657, FAX (516) 883-1694; 2) Attorney: Janice C. Sheftel, Esq., Maynes, Bradford, Shipps & Sheftel, LLP, P.O. Box 2717, Durango, CO 81302; 3) New Groundwater Rights: a. Sackman Well #1; (i) Legal Description of POD: SE1/4SW1/4 Sec 5, T35N, R3W, NMPM, 500 feet from South and 2700 feet from East from Section lines; (ii) Source: ground water, tributary to the Piedra River; (iii) Appropriation Date: May 30, 1985; (iv) Amount: 0.33 c.f.s. (15 gpm), Absolute; (v) Use: domestic, swimming pool, lawn, garden, landscaping, livestock. b. Welch Cabin Well; (i) Legal Description of POD: SE¼NW1/4 Sec 3, T35N,

R3W, NMPM, 3200 feet from South and 3500 feet from East Section lines; (ii) Source: ground water tributary to Stollsteimer Creek; (iii) Appropriation Date: June, 2001; (iv) Amount: 0.679 c.f.s. (300 gpm), Conditional; (v) Use: stockwater, fish and wildlife, filling of Welch Cabin Pond, domestic, commercial, irrigation of 40 acres in SE¼ of Sec 3 and NE1/4 of Sec 10, T35N,R3W, N.M.P.M; (vi) Well Permit applied for on June 10, 2002, and denied August 16, 2002 (AD 014573) and will be reapplied for once the well site is outside the water critical area. 4) Storage Rights: a. Keyah Grande Pond #1; (i) Legal Description of Dam/Pond: SW1/4SW1/4, Sec 9, T35N, R3W, NMPM, 800 feet from South and 1200 feet from West Section line; (ii) Source: runoff tributary to Stollsteimer Creek and Piedra River and non-tributary water from Sackman Well #2; (iii) Appropriation Date: January, 1990; (iv) Use: stockwater, fish and wildlife, irrigation of 20 acres in SW ½ of Sec 9, T35N,R3W; (v) Amount: 1.7 acrefeet ( AF ), Absolute. b. Jackson Pond; (i) Legal Description of Pond: NE¼NW¼, Sec 7, T35N, R3W, NMPM, 400 feet from North and 3650 feet from East Section lines; (ii) Source: Jackson Spring and runoff, tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater and wildlife; (v) Amount: 2.3 AF, Absolute. c. Upper Jackson Pond: (i) Legal Description of dam: NW¼NE¼ Sec 7, T35N, R3W, NMPM, 600 feet from North and 1700 feet from East Section lines; (ii) Source: Upper Jackson Spring and runoff, tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater and wildlife; (v) Amount: 0.8 AF, Absolute. d. Mid-Jackson Pond: (i) Legal Description of dam: NW¼NE¼ Sec 7, T35N, R3W, NMPM, 950 feet from North and 1750 feet from East section lines; (ii) Source: Mid-Jackson Spring and runoff, tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater and wildlife; (v) Amount: 0.2 AF, Absolute. e. Lower Jackson Pond: (i) Legal Description of Dam/Pond: NW¼NE¼ Sec 7, T35N, R3W, NMPM, 1250 feet from North and 1750 feet from East Section lines; (ii) Source: Upper Jackson Spring and runoff, tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater and wildlife; (v) Amount: 0.5 AF, Absolute. f. Elk Spring Pond: (i) Legal Description of Dam/Pond: NE¼NE¼ Sec 7, T35N, R3W, NMPM, 1100 feet from North and 200 feet from East Section lines; (ii) Source: Elk Spring and runoff, tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater and wildlife; (v) Amount: 0.15 AF, Absolute. g. Elk Park Lake: (i) Legal Description of Dam/Pond: SE¼NE¼ Sec 7, T35N, R3W, NMPM, 1800 feet from North and 1000 feet from East Section lines; (ii) Source: Runoff and Iron Springs Seep Area, tributary to Devil Creek and the Piedra River ; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater, wildlife, and fishery; (v) Amount: 9.0 AF, Absolute. h. Lower Elk Spring Pond: (i) Legal Description: NW¼NW¼ Sec 8, T35N, R3W, NMPM, 900 feet from North and 300 feet from West Section lines; (ii) Source: Lower Elk Spring and runoff tributary to Devil Creek and the Piedra River; Appropriation Date: October, 1984; (iv) Use: stockwater and wildlife; (v) Amount: 0.3 AF, Absolute. i. Barbo Meadow Pond: (i) Legal Description: NW¼NE¼ Sec 5, T35N, R3W, NMPM, 4000 feet from South and 2800 feet from West Section lines; (ii) Source: Barbo Meadow Spring and runoff tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater and wildlife; (vi) Amount: 0.1 AF, Absolute. j. Alan s Lake: (i) Legal Description: SE¼NE¼ Sec 7, T35N, R3W, NMPM, 1900 feet from North and 100 feet from East Section lines; (ii) Source: Runoff tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater, fishery, recreation, wildlife; (v) Amount: 12.0 AF, Absolute. k. Welch Cabin Pond: (i) Legal Description of Dam/Pond: NW¼SE¼ Sec 3, T35N, R3W, NMPM, 2300 feet from South and 2000 feet from East section lines; (ii) Source: Welch Cabin Well and runoff, tributary to Stollsteimer Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater, wildlife, irrigation of 40 acres in SE¼ of Sec 3 and NE1/4 of Sec 10, T35N, R3W, N.M.P.M; (v) Amount: 2.3 AF, Absolute. 5) New Surface Water Rights: a. Six Point Spring: (i) Legal Description: NE¼SW¼ Sec 6, T35N, R3W, NMPM, 1800 feet from South and 3100 feet from East Section lines; (ii) Source: Spring tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: stockwater and wildlife; (v) Amount: 0.06 c.f.s. (25 gpm), Absolute. b. Bear Spring: (i) Legal Description: SW¼SW¼ Sec 6, T35N, R3W, NMPM, 1200 feet from South and 4100 2

feet from East Section lines; (ii) Source: tributary to Devil Creek and the Piedra River; (iii) Appropriation Date: October, 1984; (iv) Use: Livestock and wildlife watering; (v) Amount: 0.06 c.f.s. (25 gpm), Absolute. c. Jackson Spring: (i) Legal Description: NE¼NW¼ Sec 7, T35N, R3W, NMPM, 400 feet from North and 3650 feet from East section lines; (ii) Source: tributary to Devil Creek and the Piedra River; (iii) Amount: 0.06 c.f.s. (25 gpm), Absolute; (iv) Appropriation Date: October, 1984; (v) Use: Livestock and wildlife watering, and filling Jackson Pond for same. d. Upper Jackson Spring: (i) Legal Description: NW¼NE¼ Sec 7, T35N, R3W, NMPM, 600 feet from North and 1700 feet from East Section lines; (ii) Source: tributary to Devil Creek and the Piedra River; (iii) Amount: 0.6 c.f.s. (250 gpm), Absolute; (iv) Appropriation Date: October, 1984; (v) Use: Livestock and wildlife watering and filling of Upper Jackson Pond for same. e. Mid-Jackson Spring: (i) Legal Description: NW¼NE¼ Sec 7, T35N, R3W, NMPM, 950 feet from North and 1750 feet from East Section lines; (ii) Source: tributary to Devil Creek and the Piedra River; (iii) Amount: 0.6 c.f.s. (250 gpm), Absolute; (iv) Appropriation Date: October, 2001; (v) Use: stock and wildlife watering and filling Mid-Jackson Pond for same. f. Lower Jackson Spring: (i) Legal Description: NW¼NE¼ Sec 7, T35N, R3W, NMPM, 1250 feet from North and 1750 feet from East Section lines; (ii) Source: tributary to the Piedra and San Juan Rivers; (iii) Amount: 250 gpm, 0.6 c.f.s. Absolute; (iv) Appropriation Date: October, 1984; (v) Use: stockwater, wildlife and filling Lower Jackson Pond for same. g. Iron Springs Seep Area: (i) Legal Description: SE¼NE¼ Sec 7, T35N, R3W, NMPM, 1300 feet from North and 1200 feet from East Section lines. The Iron Springs Seep Area is two acres in size; (ii) Source: tributary to the Piedra and San Juan Rivers; (iii) Amount: 0.06 c.f.s. (25 gpm), Absolute ; (iv) Appropriation Date: October, 1984; (v) Use: Livestock and wildlife watering and filling of Elk Park Lake for same. h. Elk Spring: (i) Legal Description: NE¼NE¼ Sec 7, T35N, R3W, NMPM, 1100 feet from North and 200 feet from East Section lines; (ii) Source: tributary to the Piedra and San Juan Rivers; (iii) Amount: 0.06 c.f.s. (25 gpm), Absolute; (iv) Appropriation Date: October, 1984; (v) Use: Livestock and wildlife watering and filling Elk Spring Pond for same. i. Lower Elk Spring: (i) Legal Description: NW¼NW¼ Sec 8, T35N, R3W, NMPM, 900 feet from North and 300 feet from West Section lines; (ii) Source: tributary to the Piedra and San Juan Rivers; (iii) Amount: 0.06 c.f.s. (25 gpm), Absolute; (iv) Appropriation Date: October, 1984; (v) Use: Livestock and wildlife watering and filling Lower Elk Spring Pond. j. Barbo Meadow Spring: (i) Legal Description: NW¼NE¼ Sec 5, T35N, R3W, NMPM, 4000 feet from South and 2800 feet from West Section lines; (ii) Source: tributary to the Piedra and San Juan Rivers; (iii) Amount: 0.06 c.f.s. (25 gpm), Absolute; (iv) Appropriation Date: October, 1984; (v) Use: stockwater, wildlife and filling Barbo Meadow Pond for same. (15 pages) 03CW4 J. W. Frazier, 13209 C. R. 25, Cortez, CO 81321: J. W. Frazier Ditch; At a point whence the East quarter corner of Section 3, T36N, R16W, N.M.P.M. bears South 51 57 East 1938 feet 1638 feet; Unnamed tributary of Hartman Draw a tributary of McElmo Creek; Montezuma County; Date of original decree, August 14, 1962; Case No. 1077 62-91; Appropriation date, June 1, 1950; Proposed change, New point of diversion will be located in Section 3, T36N, R16W, N.M.P.M., bearing North 27 0 West a distance of 1400 feet from the Southeast corner of said section, distances from section line from East, 650, from South, 1250, NE1/4SE1/4SE1/4;.20 cfs; Application for Change of Water Right (9 pages) 03CW5; MONTEZUMA COUNTY, WATER DISTRICT NO. 34: 1) Applicant: Dave Sipe and Nancy Segel, 7763 Road, Mancos, CO 81301, (970) 564-2280; 2) Attorney: Janice C. Sheftel, Esq., Maynes, Bradford, Shipps & Sheftel, LLP, P.O. Box 2717, Durango, CO 81302. 3) Type of Application: Surface water Rights; 4) Name of Structure: Sheek Ditch; 5) Legal description of point of diversion ( POD ): SW1/4NW1/4NW1/4 of Section 32, T36N, R13W, N.M.P.M., at a point on the West bank of the Mancos River from which it derives its supply of water, whence the Northwest corner of Section 32, Township 36 North, Range 13 West, N.M.P.M., bears North 42 50 West 957.7 feet, from which headgate the course of said ditch is westerly; 6) Source: Mancos River; 7) Appropriation Date: May 2001; 8) Amount claimed: 0.5 c.f.s. Absolute; 9) Use: 3

Irrigation of three (3) acres located in the NW1/4 of Sec 1 and the NE1/4 of Sec 2, T35N, R14W, N.M.P.M. (4 pages) APPLICATION FOR CHANGE OF WATER RIGHT (03CW6) 1. Name, address, telephone number(s) (residence and business) of applicant(s) MIKE BRADFORD AND SANDRA BRADFORD 7668 CR. 501 P.O. Box 525 Bayfield, CO. 81122 Dirk W. Nelson, #12444 (Attorney) P.O. Box 496 Bayfield, CO. 81122 (970)884-9561 2. Decreed name of structure for which change is sought: (indicate whether ditch, well, springs, reservoir, etc.) 1) Myers and Asher Ditch 1) Coronado Ditch 2) Coronado Diversion and Pump 3. From previous Decree: A. Date Entered: 1. Myers and Asher Ditch 2-15-1881 Case No. Court: La Plata County 2) Coronado Ditch 11-30-83 Case No. W-82 CW 69 Court: Division 7 Coronado Diversion and Pump 02-14-80 Case No. W-79 CW 17 Court: Division 7 B. Decreed point of diversion: 1) Myers and Asher Ditch: headgate is located on the right bank of Pine River, from which stream said ditch diverts its supply of water, at a point which bears N82 15' W, 1080 ft. from the Southeast corner of Section 27, T36N, R7W, N.M.P.M. ; from which headgate said ditch runs in a general Southerly direction. Coronado Ditch: at a point on the East bank of the Pine River in the NE1/4 NW1/4 of Section 3, T35N, R7W, N.M.P.M., 1,150.0 ft. from the North section line & 1,800.0 ft. from the West section line of Section 3. Coronado Diversion and Pump: headgate is located on the West bank of Pine River at a point whence the NW corner of Section 3, T35N, R7W, N.M.P.M. bears N29 00' W, 2,450.0 ft. Diversion Pump is located at a point whence the NW corner of Section 3, T35N, R7W, N.M.P.M. bears N26 00 W 2,850.0 ft. C. Source: Pine River D. Appropriation Date: 1). Myers and Asher Ditch 2-15-81, 3.33cfs 9. Coronado Ditch: 1-1-82, 2.0cfs 10. Coronado Diversion and Pump: 1-1-79, 2.0cfs E. Historic use: (Include a description of all water rights to be changed, a map showing the approximate location of historic use of the rights and records or summaries of records of actual diversions of each right the applicant intends to rely on to the extend such records exist.) The Applicant is the owner of one-half c.f.s. in the Myers and Asher Ditch, 2.0 c.f.s in the Coronado Ditch and 2.0 c.f.s in the Coronado Diversion and Pump. The described water rights 4

have been used for fish propagation and for irrigation of 54 acres, as provided in the original decrees for the described water rights. The lands owned by the Applicant are described in the Deed recorded at Reception No. 728702, La Plata County, located in the NW1/4 of Section 3, T35N, R7W, N.M.P.M., as generally shown on the map attached hereto as Attachment A. 4. Proposed change: (a) describe change requested: alternate point of diversion/replacement/change of use; (if well, please list pertinent information from well permit) (b) location; (c) use; (d) amount; (e) give proposed plan for operation (if (b) thru (e) applicable, please give full descriptions.) The Applicant requests a change in point of diversion from the original points of diversion as described herein to a point located 1200 feet East of the West line and 2100 feet South of the North line of Section 3, Township 35 North, Range 7 West, N.M.P.M. where it will be diverted from the river and pumped by a pump located at a point1075 feet East of the West line and 2200 feet South of the North line of the said Section 3. The uses for fish propagation and for irrigation of the historic lands owned by the Applicant under the original decrees will not change. 5. Name(s) and address(es) of owner(s) of land on which structure(s) is (are) located: The new point of diversion and place of use of the water are owned by the Applicant. (4 pages) APPLICATION FOR FINDING OF REASONABLE DILIGENCE AND TO MAKE A PORTION OF THE WATER RIGHTS ABSOLUTE, Case Number: 03CW7, (96CW59) DISTRICT COURT, WATER DIVISION NO. 7, STATE OF COLORADO, 1060 2 nd Avenue, P.O. Box 3340, Durango, CO 81302. CONCERNING THE APPLICATION FOR WATER RIGHTS OF: DSC - PURGATORY, LLC, IN LA PLATA COUNTY, COLORADO. 1. Name, address and telephone number of applicant: DSC - Purgatory, LLC, (Successor in interest to Durango Ski Corporation), #1 Skier Place, Durango, Colorado 81301, (303) 247-9000. Copies of all pleadings to: Steven J. Bushong, P. Fritz Holleman, Porzak Browning & Bushong LLP, 929 Pearl Street, Suite 300, Boulder, CO 80302, (303) 443-6800. 2. Name of Structures: Purgatory Ponds A and C. 3. Description of conditional water right: A. Decreed in Case No. 81CW150 on May 7, 1982, District Court, Water Division 7. B. Locations: Pond A: Located in the S1/2 NW1/4 of Section 25, T39N, R9W of the N.M.P.M., at a point 1368.85 feet from the West line and 3038.46 feet from the South line of said Section 25. Pond C: Located in the SE1/4 NW1/4 of Section 25, T39N, R9W of the N.M.P.M., at a point 1786.34 feet from the West line and 3783.72 feet from the South line of said Section 25. C. Source: Surface runoff and percolation tributary to Little Cascade Creek, Animas River Watershed. D. Appropriation Date: December 14, 1981. E. Amounts: Pond A: 10 acrefeet (conditional). Pond C: 3 acre-feet (conditional). F. Use: Municipal purposes including domestic, commercial, irrigation, industrial, recreation, artificial snowmaking, fish and storage. 4. Request to make water right absolute. Purgatory Ponds A and C. During the diligence period, the Ponds have been filled to their decreed capacity of 10 acre-feet (Pond A) and 3 acre-feet (Pond C) and put to beneficial use for fish, storage and recreation. At this time, the other decreed beneficial uses (domestic, commercial, irrigation, industrial and artificial snowmaking) remain conditional. 5. Outline of work done to complete project and apply water to beneficial use with respect to the beneficial uses for the Purgatory Ponds A and C determined not to be absolute: During this diligence period, in continuing the development of its conditional water rights, Applicant or its related entities were engaged in the legal defense and protection of said water rights, and was diligent in the continued use and development of its conditional water rights. Those activities include but are not limited to the following: A. Completion and County approvals of Infrastructure Master Plans, including those involving water, waste water, drainage, snow removal, recreation and other matters as steps in developing Applicant s conditional water rights. B. Completion and County approvals of a detailed Durango Mountain Resort Plan including plans for development of residential and commercial space, subdivision preliminary plats, and plans for improvements necessary for the development. All such planning and approvals are steps taken in developing Applicant s conditional water rights. C. Planning, design and/or construction was completed for various water main extensions, 5

fire protection hydrants, service taps, water treatment facilities, well fields and other water infrastructure. The estimated cost of completing all such currently planned improvements exceeds $6 million. This does not include related waste water and other improvements. D. Work on an environmental impact statement for expansion and upgrades within the ski boundaries, including water supply and snow making issues. E. Pumping tests, yield quantification and water quality testing of various wells, permitting for wells, and construction of some wells, were all either initiated or completed during the diligence period. F. The conditional water rights at issue in this application are part of an integrated water supply system that will serve the ski resort and related development. 6. The name and address of the owner of the land on which the structures are located, and upon which water will be placed to beneficial use: All structures are located on land owned by Applicants or its related entities. (5 pages) APPLICATION FOR FINDING OF REASONABLE DILIGENCE, Case Number: 03CW8, (96CW60). DISTRICT COURT, WATER DIVISION NO. 7, STATE OF COLORADO, 1060 2 nd Avenue, P.O. Box 3340, Durango, CO 81302, CONCERNING THE APPLICATION FOR WATER RIGHTS OF: DURANGO MOUNTAIN LAND COMPANY LLC, IN LA PLATA COUNTY, COLORADO. 1. Name, address and telephone number of applicant: Durango Mountain Land Company LLC, (Successor in interest to T-H Land Company), c/o #1 Skier Place, Durango, Colorado 81301, (303) 247-9000. Copies of all pleadings to: Steven J. Bushong, P. Fritz Holleman, Porzak Browning & Bushong LLP, 929 Pearl Street, Suite 300, Boulder, CO 80302, (303) 443-6800. 2. Name of structures: Hermosa Park Reservoir. 3. Description of conditional water right: A. Decreed in Case No. W-434 on April 13, 1972, District Court, Water Division 7. B. Location: At the high water line, the left abutment of the dam is located at a point from whence the East quarter corner of Section 21, T39N, R9W of the N.M.P.M., bears approximately N 83 degrees 00 E, a distance of 1010 feet. C. Source: East Fork of Hermosa Creek, tributary to the Animas River. D. Appropriation Date: June 10, 1971. E. Amount: 300 acre-feet (conditional). F. Use: Domestic, municipal, recreational and fire protection. 4. Outline of work done to complete project and apply water to beneficial use with respect to the Hermosa Park Reservoir: During this diligence period, in continuing the development of its conditional water rights, Applicant or its related entities were engaged in the legal defense and protection of said water rights, and was diligent in the continued use and development of its conditional water rights. Those activities include but are not limited to the following: A. Completion and County approvals of Infrastructure Master Plans, including those involving water, waste water, drainage, snow removal, recreation and other matters as steps in developing Applicant s conditional water rights. B. Completion and County approvals of a detailed Durango Mountain Resort Plan including plans for development of residential and commercial space, subdivision preliminary plats, and plans for improvements necessary for the development. All such planning and approvals are steps taken in developing Applicant s conditional water rights. C. Planning, design and/or construction was completed for various water main extensions, fire protection hydrants, service taps, water treatment facilities, well fields and other water infrastructure. The estimated cost of completing all such currently planned improvements exceeds $6 million. This does not include related waste water and other improvements. D. Work on an environmental impact statement for expansion and upgrades within the ski boundaries, including water supply and snow making issues. E. Pumping tests, yield quantification and water quality testing of various wells, permitting for wells, and construction of some wells, were all either initiated or completed during the diligence period. F. The conditional water rights at issue in this application are part of an integrated water supply system that will serve the ski resort and related development. 5. The name and address of the owner of the land on which the dam is located, upon which the water is stored, and upon which water will be placed to beneficial use. The structure may be located and the water put to beneficial use at least partially on public land of the United States Forest Service (San Juan National Forest). (4 pages) APPLICATION FOR FINDING OF REASONABLE DILIGENCE, Case Number: 03CW9, (96CW61). DISTRICT COURT, WATER DIVISION NO. 7, STATE OF COLORADO, 1060 2 nd Avenue, 6

P.O. Box 3340, Durango, CO 81302. CONCERNING THE APPLICATION FOR WATER RIGHTS OF: DURANGO MOUNTAIN LAND COMPANY LLC, IN LA PLATA COUNTY, COLORADO. 1. Name, address and telephone number of applicant: Durango Mountain Land Company LLC, (Successor in interest to T-H Land Company), c/o #1 Skier Place, Durango, Colorado 81301, (303) 247-9000. Copies of all pleadings to: Steven J. Bushong, P. Fritz Holleman, Porzak Browning & Bushong LLP, 929 Pearl Street, Suite 300, Boulder, CO 80302, (303) 443-6800. 2. Name of structures: Hermosa Park Reservoir Enlargement. 3. Description of conditional water right: A. Decreed in Case No. 81CW144 on October 5, 1982, District Court, Water Division 7. B. Location: The south abutment of the proposed dam will intersect the valley wall at an elevation of approximately 9350 feet and at a point from whence the East quarter corner of Section 21, T39N, R9W of the N.M.P.M., bears approximately N 83 degrees 00 ' E, a distance of 1010 feet. C. Source: East Fork of Hermosa Creek, tributary to the Animas River. D. Appropriation Date: December 14, 1981 E. Amount: 500 acre-feet (conditional) F. Use: Municipal purposes including domestic, commercial, irrigation, industrial, recreation, artificial snowmaking, piscatorial, sewage treatment and maintenance of adequate storage reserves. 4. Outline of work done to complete project and apply water to beneficial use with respect to the Hermosa Park Reservoir Enlargement: During this diligence period, in continuing the development of its conditional water rights, Applicant or its related entities were engaged in the legal defense and protection of said water rights, and was diligent in the continued use and development of its conditional water rights. Those activities include but are not limited to the following: A. Completion and County approvals of Infrastructure Master Plans, including those involving water, waste water, drainage, snow removal, recreation and other matters as steps in developing Applicant s conditional water rights. B. Completion and County approvals of a detailed Durango Mountain Resort Plan including plans for development of residential and commercial space, subdivision preliminary plats, and plans for improvements necessary for the development. All such planning and approvals are steps taken in developing Applicant s conditional water rights. C. Planning, design and/or construction was completed for various water main extensions, fire protection hydrants, service taps, water treatment facilities, well fields and other water infrastructure. The estimated cost of completing all such currently planned improvements exceeds $6 million. This does not include related waste water and other improvements. D. Work on an environmental impact statement for expansion and upgrades within the ski boundaries, including water supply and snow making issues. E. Pumping tests, yield quantification and water quality testing of various wells, permitting for wells, and construction of some wells, were all either initiated or completed during the diligence period. F. The conditional water rights at issue in this application are part of an integrated water supply system that will serve the ski resort and related development. 5. The name and address of the owner of the land on which the dam is located, upon which the water is stored, and upon which water will be placed to beneficial use: The structure may be located and the water put to beneficial use at least partially on public land of the United States Forest Service (San Juan National Forest). (4 pages) APPLICATION FOR FINDING OF REASONABLE DILIGENCE AND TO MAKE A PORTION OF THE WATER RIGHTS ABSOLUTE, Case Number: 03CW10, (96CW62) DISTRICT COURT, WATER DIVISION NO. 7, STATE OF COLORADO, 1060 2 nd Avenue, P.O. Box 3340, Durango, CO 81302, CONCERNING THE APPLICATION FOR WATER RIGHTS OF: DURANGO MOUNTAIN LAND COMPANY LLC, IN LA PLATA COUNTY, COLORADO 1. Name, address and telephone number of applicant: Durango Mountain Land Company LLC, (Successor in interest to T-H Land Company), c/o #1 Skier Place, Durango, Colorado 81301, (303) 247-9000. Copies of all pleadings to: Steven J. Bushong, P. Fritz Holleman, Porzak Browning & Bushong LLP, 929 Pearl Street, Suite 300, Boulder, CO 80302, (303) 443-6800. 2. Name of Structures: Hermosa Park Pump & Pipeline and Mountain Restaurant Well. 3. Description of conditional water right: A. The Hermosa Park Pump & Pipeline was originally decreed in Case No W-435 on April 13, 1972, District Court, Water Division 7. Mountain Restaurant Well (a/k/a Dante s Well), was designated as an alternate point of diversion for 15 gpm 7

of the Hermosa Park Pump & Pipeline as decreed in Case No. 81CW148 on May 7, 1982, District Court, Water Division 7. B. Locations: Hermosa Park Pump & Pipeline: Located on the right bank of the East Fork of Hermosa Creek at a point whence the East quarter corner of Section 21, T39N, R9W, N.M.P.M., bears S 78 degrees 30' E, a distance of 1340 feet. Mountain Restaurant Well: Located in the SE1/4 NW1/4 of Section 27, T39N, R9W of the N.M.P.M., at a point approximately 3,700 feet from the South section line and 2,900 feet from the East section line. C. Source: East Fork of Hermosa Creek and groundwater from the Hermosa formation, tributary to the Animas River. D. Appropriation Date: June 10, 1971. Amounts: 3 cfs (conditional) for the Hermosa Park Pump & Pipeline and 15 gpm (5 gpm absolute and 10 gpm conditional) for the Mountain Restaurant Well. E. Use: Domestic, recreational, municipal, fire protection, and commercial for a restaurant and ski lodge. 4. Request to make Water Right Absolute. Mountain Restaurant Well: The Mountain Restaurant Well was previously determined to have 5 gpm absolute and 10 gpm condition. Applicant drilled a supplemental well within 100 feet of the existing well to increase the pumping capacity. The supplemental well is located in the SE1/4 NW1/4 of Section 27, T39N, R9W of the N.M.P.M., at a point approximately 3,600 feet from the South section line and 2,900 feet from the East section line. The wells have since operated at a combined capacity not to exceed 15 gpm, consistent with well permit no. 054798. Accordingly, Applicant requests a finding that the Mountain Restaurant Well water right is now absolute for the full decreed amount of 15 gpm. 5. Outline of work done to complete project and apply water to beneficial use with respect to the Hermosa Park Pump & Pipeline and any portion of the Mountain Restaurant Well determined not to be absolute: During this diligence period, in continuing the development of its conditional water rights, Applicant or its related entities were engaged in the legal defense and protection of said water rights, and was diligent in the continued use and development of its conditional water rights. Those activities include but are not limited to the following: A. The completion of a supplemental well for the Mountain Restaurant Well water rights. B. Completion and County approvals of Infrastructure Master Plans, including those involving water, waste water, drainage, snow removal, recreation and other matters as steps in developing Applicant s conditional water rights. C. Completion and County approvals of a detailed Durango Mountain Resort Plan including plans for development of residential and commercial space, subdivision preliminary plats, and plans for improvements necessary for the development. All such planning and approvals are steps taken in developing Applicant s conditional water rights. D. Planning, design and/or construction was completed for various water main extensions, fire protection hydrants, service taps, water treatment facilities, well fields and other water infrastructure. The estimated cost of completing all such currently planned improvements exceeds $6 million. This does not include related waste water and other improvements. E. Work on an environmental impact statement for expansion and upgrades within the ski boundaries, including water supply and snow making issues. F. Pumping tests, yield quantification and water quality testing of various wells, permitting for wells, and construction of some wells, were all either initiated or completed during the diligence period. G. The conditional water rights at issue in this application are part of an integrated water supply system that will serve the ski resort and related development. 6. The name and address of the owner of the land on which the structures are located, and upon which water will be placed to beneficial use. The structures may be located and the water put to beneficial use at least partially on public land of the United States Forest Service (San Juan National Forest). (5 pages) 8

YOU ARE HEREBY NOTIFIED THAT YOU HAVE until the last day of March, 2003, to file with the Water Clerk, in quadruplicate, a verified Statement of Opposition, setting forth facts as to why a certain application should not be granted or why it should be granted only in part or on certain conditions. A copy of such Statement of Opposition must also be served upon the applicant or the applicant s attorney and an affidavit or certificate of such service shall be filed with the Water Clerk, as prescribed by Rule 5, CRCP. (Filing fee: $45.00; Forms are available through the Office of the Water Clerk) Paula K. Petersen, Clerk of the Water Court, P. O. Box 3340, Durango, CO 81302-3340. Published: before February 28, 2003 Water Clerk 9