DATE FILED: May 3, 2010 5:01 PM CASE NUMBER: 2009CW145 STATE OF COLORADO 109 Eighth Street, Suite 104 Glenwood Springs, CO 81601?3303 DISTRICT COURT, WATER DIVISION NO. 5, IN THE MATTER OF THE APPLICATION FOR WATER RIGHTS of the CITY OF ASPEN, COLORADO, TN PITKIN COUNTY A COURT USE ONLY A F. Covell, Esq., #10169 Andrea L. Benson, Esq., #33176 Alperstein Covell, P.C. 1600 Broadway, Suite 2350 Denver, CO 80202-4923 Phone: (303) 894-8191 Fax: (303) 861-0420 Email: cfc@aloersteineovell.com alb@alpersteincovelLoon-1 Nicole D. Garrimone, it 32088 Gar?eld I?Iecht P.C. 420 Seventh Street, Suite 100 Glenwood Springs, CO 81601 Phone: (970) 947-1936 Fax: (970) 947?193 7 Email: Case Number: 09CW145 (CA5884, W391, W-791-77, 810WO63, 85CW045, 89CW030, 95CW187, 02CWI9) Water Division No. 5 ST IPULATION BETWEEN THE CITY OF ASPEN AND OPPOSERS MARK AND KAREN HEDSTROM Applicant, the City of Aspen (?Aspen?), and Opposers, Mark and Karen Hedstrom by their respective undersigned counsel, hereby stipulate and agree as follows: 1. By its Application in this case, Aspen seeks a ?nding that it has exercised reasonable diligence in putting to bene?cial use the Castle Creek Reservoir and Maroon Creek Reservoir water rights conditionally decreed in CA5884 and to continue the conditional decree for a period of another six years. 2. The decreed location for the Castle Creek Reservoir is described as follows: The Castle Creek Reservoir is located in Sections 18 and 19, Township 11 South, Range 84 West of the P.M., Pitkin County, Colorado. The initial point of survey of the high water line of the reservoir on the east side of the dam is located such that the angle from the axis of the dam measured clockwise is 66?25' to Highland Peak and 340?5 1' to Hayden Peak. (Ties to mountain peaks were used since the reservoir lies within an area not surveyed by local, state or federal agencies.) 3. The I-ledstroms own a parcel of property, consisting of approximately 21 acres located along Castle Creek, with a physical address of 9555 Castle Creek Road, Aspen, CO 8161 1, described as follows: Lot 1, Part of Subdivision H.E.S. 305, according to the Plat thereof recorded January 22, 1.980 in Plat Book 8 at Page 77, County of Pitkin, State of Colorado (hereafter ?l-ledstrom Property?). A plat of the I-Iedstrom Property is attached hereto as Exhibit A. 4. Based on the legal description of the Castle Creek Reservoir contained in the CA5884 decree, a portion of the Castle Creek Reservoir could potentially be located on a portion of the Hedstrom Property. I?Iowever, Aspen believes that it can construct the Castle Creek Reservoir, as contemplated in the CA5884 decree, on surrounding property, and it will not be necessary to construct or locate the reservoir on the Hedstrom Property in order to store and utilize the conditional water right decreed for the Castle Creek Reservoir to meet present or reasonably anticipated future water needs of Aspen. 5. For purposes of settlement of this matter, Aspen agrees to amend the legal description of the location of the Castle Creek Reservoir to read as follows: The Castle Creek Reservoir is located in Sections 18 and 19, Township 11 South, Range 84 West of the 6lh P.M., Pitkin County, Colorado, but excluding that certain parcel of land described as Lot 1, Part of Subdivision H.E.S. 305, according to the Plat thereof recorded January 22, 1980 in Plat Book 8 at Page 77, County oi?Pitkin, State of Colorado. The initial point of survey of the high water line of the reservoir on the east side of the dam is located such that the angle from the axis of the darn measured clockwise is 66?25' to Highland Peak and 340?5 to I-layden Peak. (Ties to mountain peaks were used since the reservoir lies within an area not surveyed by local, state or federal agencies.) 6 A5pen agrees that the diligence decree entered in this case, and subsequent decrees for the Castle Creek Reservoir, shall describe the location of the Castle Creek Reservoir as set forth in paragraph 5 above. The Hedstroms agree that they will not oppose any uture diligence applications related to the Castle Creek Reservoir, so long as the location of the Castle Creek Reservoir is described in accordance with that paragraph. 7. ASan further acknowledges and agrees that, in addition to all other requirements provided by law, ASpen shall not construct or locate the Castle Creek Reservoir, or any part thereof, on the Hedstrorn Property without ?rst applying for and obtaining approval of the Water Court, Water Division No. 5, State of Colorado, for a change or revision to the decreed location of the Castle Creek Reservoir storage right provided in Paragraph 5 above. Aspen shall mail actual notice of any such water court application to l-Iedstrom or the then-current owner of the Hedstrom Property at its address as shown in the records of the Pitkin County Assessor. Notice provided pursuant to Section C.R.S. (2008), shall satisfy the notice requirement hereunder. 8. Aspen?s counsel shall provide Hedstrom?s counsel with a copy of any proposed ruling or decree submitted to the Water Referee or Water Court, and of any ruling entered by the Water Referee or decree entered by the Water Court. 9. Subject to the foregoing, l-ledstrotn does not and will not object to Aspen?s application in this case, or the reliel'sought therein, or any decree entered on the application, and will restrict its further participation in this case to con?rming that any decree entered on the application is consistent with this Stipulation. 10. Each party hereto shall bear its own costs and attorneys? fees. 1 1. This Stipulation shall bind and bene?t the parties hereto and their successors and assigns. This Stipulation shall be enforceable as an agreement between the parties or, upon Court approval, as an order ofthe Court. Aspen shall file a motion with the Water Court for approval and entry ofthis Stipulation in this case. so STIPULATED this 5 day ofMay, 2010. ALPERSTEIN COVEIJL, P.C. ,Qwa?ww F. Covell, Reg. No. 10169 Andrea L. Benson, Reg. No. 33176 1600 Broadway, Suite 2350 Denver, CO 80202 ATTORNEYS FOR CITY OF ASPEN GARFIELD 8: HECHT P.C. By Ufco? O?m?wm Nicole D. Garrimone, Reg. 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