Attachment J DISTRICT COURT, WATER DIVISION NO. 5, STATE OF COLORADO 109 Eighth Street, Suite 104 Glenwood Springs, CO 81601-3303 IN THE MATTER OF THE APPLICATION FOR WATER RIGHTS of the CITY OF ASPEN, COLORADO, IN PITKIN COUNTY Attorneys for Applicant Cynthia F. Covell, Esq., Reg. No. 10169 Andrea L. Benson, Esq., Reg. No. 33176 Alperstein & Covell, P.C. 1600 Broadway, Suite 1070 Denver, CO 80202 Phone: (303) 894-8191 Fax: (303) 861-0420 cfc@alpersteincovell.com; alb@alpersteincovell.com ▲ COURT USE ONLY ▲ Case Number: 2016CW3128 (CA5884, W-791, W-791-77, 81CW063, 85CW045, 89CW030, 95CW187, 02CW19, 09CW145) Water Division No. 5 Counsel for Opposer Pitkin County John M. Ely, Pitkin County Attorney Laura C. Makar, Assistant Pitkin County Attorney Richard Y. Neiley, Assistant Pitkin County Attorney 123 Emma Road, Suite 204 Basalt, Colorado 81621 970-920-5190 970-920-5198 (FAX) John.Ely@pitkincounty.com Laura.Makar@pitkincounty.com Atty. Reg. #14067 Atty. Reg. #41385 Atty. Reg. #45848 STIPULATION AND AGREEMENT BETWEEN APPLICANT CITY OF ASPEN AND OPPOSER BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY Applicant, the City of Aspen (“Aspen”) and Opposer Board of County Commissioners of Pitkin County (“Pitkin County”) by and through their undersigned attorneys, hereby stipulate and agree as follows. 1. The water right for which diligence is sought in this case is the Maroon Creek Reservoir conditional storage right decreed in Case No. CA5884 on November 5, 1971, by the District Court, Garfield County, Colorado (“Maroon Creek Reservoir Storage Right”). Pitkin Pitkin Stipulation and Agreement Case No. 2016CW3128 Page 2 County hereby consents to the entry of a Decree regarding the Maroon Creek Reservoir Storage Right that is no less restrictive on Aspen than the proposed Findings of Fact, Conclusions of Law, and Decree of the Court dated March 15, 2018, attached hereto as Exhibit A (“Proposed Decree”). Pitkin County shall not protest, appeal or otherwise challenge any ruling or decree ultimately entered by the Water Court in this matter, so long as its terms and conditions are no less restrictive on Aspen than those contained in the Proposed Decree. The decree ultimately entered by the Water Court in this matter is referred to herein as the “Final Decree.” 2. In consideration for this stipulation, Aspen agrees that after entry of the Final Decree, it will not seek to retain any portion of the Maroon Creek Reservoir Storage Right at its original decreed location, which location is described in paragraph 8 of the Proposed Decree (“Original Decreed Location”). Prior to expiration of the diligence period that commences with entry of the Final Decree, Aspen will file a water court application with the Water Court, Water Division No. 5 (“Change Application”), to change the location of the Maroon Creek Reservoir Storage Right (as to which diligence is continued by the Final Decree), to one or more new location(s) of storage, described generally as the Woody Creek Parcel, the Aspen Golf Course, Cozy Point Ranch, City property known as Zoline Open Space, Vagneur Gravel Quarry, and/or any other location or locations the parties have agreed to in writing (“New Reservoir Sites”). The general location of each of the New Reservoir Sites described above is depicted on the attached Exhibit B. The Change Application will not include other locations without the prior written agreement of all Opposers in this case and in Case No. 2016CW3129 (regarding Castle Creek Reservoir). Should Aspen plan to divert the Maroon Creek Reservoir Storage Right for storage in any of the New Reservoir Sites at a diversion point located on the mainstem of the Roaring Fork River, any such point of diversion on the mainstem of the Roaring Fork River shall be located downstream of the confluence of Maroon Creek and the Roaring Fork River. This does not preclude Aspen from making diversions under the Maroon Creek Reservoir Storage Right for storage in any of the New Reservoir Sites from Maroon Creek or Castle Creek. 3. Aspen will provide the Change Application to Pitkin County for review no later than sixty (60) days before it is filed in the Water Court, in order to allow Pitkin County to confirm that it is consistent with this Stipulation and with the Final Decree. If no objection is made by Pitkin County or any other Opposer in this case within thirty (30) days of the date on which the Change Application is provided (“Notice Period”), Aspen will file the Change Application in substantially the form provided to Pitkin County. If Pitkin County does not believe that the Change Application is consistent with this Stipulation and with the Final Decree, Pitkin County shall provide notice to Aspen within the Notice Period, identifying the specific provisions it believes to be inconsistent with this Stipulation or the Final Decree. Aspen and Pitkin County shall cooperate in good faith to resolve their disagreement. 2 Pitkin Stipulation and Agreement Case No. 2016CW3128 Page 3 4. Pitkin County, its agents, assigns or successors in interest will not oppose the Change Application, directly or indirectly, and will take no position regarding the allegations therein. In addition, for a period of twenty (20) years from the date of entry of the Final Decree, Pitkin County, its agents, assigns, or successors in interest will not oppose, directly or indirectly, and will take no position regarding the allegations contained in future diligence applications or applications to make absolute some or all of the Maroon Creek Reservoir Storage Right that has been decreed for storage at one or more of the New Reservoir Sites. Pitkin County reserves the right to participate in any land use proceedings or other approval processes required for construction of a reservoir(s) at any of the New Reservoir Sites. 5. After the Change Application has been filed, Aspen will diligently pursue the Change Application to completion, provided, however, that Aspen may, at its discretion, withdraw the Change Application with prejudice in whole or in part, or amend the Change Application without Pitkin County’s approval so long as (1) the amount of storage sought pursuant to the Change Application does not exceed 4,567 acre-feet pursuant to the Maroon Creek Reservoir Storage Right, (2) the total amount that can be stored annually pursuant the Maroon Creek Reservoir Storage Right, the Castle Creek Reservoir Storage right (also decreed in Case No. CA 5884), or any combination of such storage rights, does not exceed 8,500 acre-feet, and (3) the locations of such storage do not include locations other than the New Reservoir Sites. In addition, Aspen may, but need not, appeal a decree or other water court ruling on the Change Application without Pitkin County’s approval. 6. Aspen may not divert the Maroon Creek Reservoir Storage Right through the Salvation Ditch system to fill any of the New Reservoir Sites without prior written consent from the Salvation Ditch Company or pursuant to other legal authority. 7. If and to the extent the Change Application does not result in a final decree changing the location of storage of all of the Maroon Creek Reservoir Storage Right as decreed by the Final Decree, Aspen will, within 120 days after entry of a final decree upon the Change Application, or other final order denying or dismissing the Change Application, in whole or in part, file appropriate pleadings to cancel the portion of the Maroon Creek Reservoir Storage Right that is not decreed for storage at one or more of the New Reservoir Sites. (If an appeal is made, said final decree or other order will be the decree or order following the outcome of the appeal.) The intent of this paragraph is that Aspen will relinquish any portion of the Maroon Creek Reservoir Storage Right that is not transferred to one or more of the New Reservoir Sites pursuant to the Change Application, and Aspen will forego the right to store water pursuant to the Maroon Creek Reservoir Storage Right at the Original Decreed Location. 8. If Aspen does not file a Change Application prior to expiration of the diligence period that commences with entry of the Final Decree, Aspen will not seek a finding of reasonable diligence or to make absolute the Maroon Creek Reservoir Storage Right. 9. Aspen and Pitkin County agree that this Stipulation is effective only upon execution of the same or a substantially similar Stipulation (including approval of the same or a 3 Pitkin Stipulation and Agreement Case No. 2016CW3128 Page 4 substantially similar form of the Proposed Decree) by all parties to this case. Once all parties to this case have entered into the same or a substantially similar Stipulation, Aspen will re-refer the above-captioned case to the Water Judge, Water Division No. 5. Following the Order of Re-referral, Aspen will file the fully-executed Stipulations of the parties to this case, together with unopposed motions to the Court for approval the fully-executed Stipulations and for entry of a Final Decree that is substantially similar to and no less restrictive on Aspen than the Proposed Decree. 10. The parties hereto shall bear their own costs and attorney fees. 11. This Stipulation shall benefit and be binding upon the heirs, successors and assigns of the undersigned parties. 12. This Stipulation supersedes and controls all prior written and oral agreements and representations of the parties regarding the subject matter hereof. All prior and contemporaneous conversations, negotiations, possible alleged agreements, representations, covenants and warranties concerning the subject matter hereof are merged herein. This Stipulation may not be modified except in a writing signed by both parties. 13. This Stipulation may be executed using counterpart signature pages with the same force and effect as if both parties had signed on the same signature page. Electronically generated copies of this Stipulation signed by the parties shall be treated as originals. 14. Copies of the Change Application, Pitkin County’s comments thereon and the final decree on the Change Application shall be provided to the party to whom directed at the address set forth below or at such other address as may be provided by a party by notice pursuant to this paragraph unless some other form of notice is expressly agreed to in writing by both parties. FOR ASPEN: City Attorney City of Aspen 130 S. Galena Street Aspen CO 81611 With copy to Cynthia Covell and Andrea Benson Alperstein & Covell P.C. 1600 Broadway, Suite 1070 Denver CO 80202 4 Pitkin Stipulation and Agreement Case No. 2016CW3128 Page 5 FOR OPPOSER PITKIN COUNTY: Pitkin County Attomey?s Of?ce 530 E. Main St., Ste. 301 Aspen, Co 81611 with a copy sent electronically to: attomey@pitkincounty.com 15. Pitkin County will remain a party to this case for the purpose of ensuring that any Final Decree entered herein is consistent with this Stipulation. 16. The parties acknowledge and represent to one another that all procedures necessary to validly contract and execute this Stipulation have been performed, and that the persons signing for each party are duly authorized to do so. The parties desire that this Stipulation be approved by and entered as an Order of the Court. Dated: My, 0271 2018. ALPERSTEIN COVELL, P.C. PITKIN COUNTY OFFICE 33" - F. Covell, #10169 LauraMakar, #41385 ATTORNEYS FOR ATTORNEYS FOR BOARD OF COUNTY CITY OF ASPEN COMMISSIONERS OF PITKIN COUNTY EXHIBIT A TO STIPULATION DRAFT 20180315 - SETTLEMENT COMMUNICATION PROTECTED BY CRE 408 DISTRICT COURT, WATER DIVISION NO. 5, COLORADO Garfield County Courthouse 109 8th Street, Suite 104 Glenwood Springs, CO 81601 970/945-5075 COURT USE ONLY CONCERNING THE APPLICATION FOR FINDING OF REASONABLE DILIGENCE OF THE CITY OF ASPEN Case Number: 2017CW3128 (CA5884, W-791, W-791-77, 81CW063, 85CW045, 89CW030, 95CW187, 02CW19, 09CW145) in PITKIN COUNTY, COLORADO Water Division No. 5 FINDINGS OF FACT, CONCLUSIONS OF LAW, JUDGMENT AND DECREE OF THE WATER COURT (Maroon Creek Reservoir) This matter comes before the Water Court upon the application of the City of Aspen, Colorado (“Applicant” or “Aspen”) for a finding of reasonable diligence. The Court, having reviewed the pleadings of the parties, the comments of the Division Engineer and response thereto and having become fully advised with respect to the subject matter of the Application hereby makes the following Findings of Fact, Conclusions of Law, Judgment and Decree of the Water Court (“Decree”). FINDINGS OF FACT 1. Applicant. The applicant is the City of Aspen, Colorado, c/o David Hornbacher, Utilities Director, 130 South Galena Street, Aspen, CO 81611, telephone, (970) 920-5110. Copies of all pleadings in this matter are to be delivered to Cynthia F. Covell and Andrea Benson, Alperstein & Covell P.C., 1600 Broadway, Suite 1070, Denver, CO 80202. 2. Application. The Application in this matter was filed by Aspen on October 31, 2016, and referred to the Water Referee for Water Division No. 5, State of Colorado by the Water Judge of said Court in accordance with Article 92, Chapter 37, of the Colorado Revised Statutes known as the Water Right Determination and Administration Act of 1969. The matter was re-referred to the Water Court on _________________________. 1 EXHIBIT A TO STIPULATION DRAFT 20180315 - SETTLEMENT COMMUNICATION PROTECTED BY CRE 408 3. Notice and Jurisdiction. Timely and adequate notice of the pendency of these proceedings in rem was given in the manner provided by law. The Application was published in the Water Resume for Water Division 5 for October, 2016, and in the Grand Junction Daily Sentinel on November 20, 2016, the Aspen Times Weekly on November 24, 2016 and the Rifle Citizen Telegraph on November 24, 2016. The Court has jurisdiction over the subject matter of this proceeding and over all persons and property affected hereby, irrespective of whether those persons or property owners have appeared. None of the lands or water rights involved in this case is within the boundaries of any designated groundwater basin. 4. Statements of Opposition and Stipulation. Timely statements of opposition were filed by Wilderness Workshop, Western Resource Advocates, Roaring Fork Land & Cattle Company, American Rivers, Pitkin County, Colorado Trout Unlimited, Larsen Family LP, and the United States of America. The time for filing Statements of Opposition has now expired. Aspen has entered into stipulations with all Opposers, and the Court has approved such stipulations as follows: a. Stipulations dated _______ with Wilderness Workshop and Western Resource Advocates, approved by Order of the Court Dated _________. b. Stipulation dated _______ with Roaring Fork Land & Cattle Company, American Rivers and Colorado Trout Unlimited, approved by Order of the Court Dated _________. c. Stipulation dated _______ with Pitkin County, approved by Order of the Court Dated _________. d. Stipulation dated _______ with Larsen Family LP, approved by Order of the Court Dated _________. e. Stipulation dated _______ with the United States of America, approved by Order of the Court Dated _________. 5. Name of structure: Maroon Creek Reservoir. 6. Original Decree for Conditional Water Right: The water right was originally decreed on November 5, 1971 in Case No. CA 5884, District Court, Garfield County, Colorado. 7. Subsequent Decrees Awarding Diligence. Diligence was awarded in Case No. W791 (March 15, 1973); W-791-77 (November 7, 1977); 81CW063 (October 29, 1982); 85CW045 2 EXHIBIT A TO STIPULATION DRAFT 20180315 - SETTLEMENT COMMUNICATION PROTECTED BY CRE 408 (July 17, 1985); 89CW030 (August 29, 1989), 95CW187 (January 4, 1996), 02CW19 (September 3, 2003), and 09CW145 (October 11, 2010). 8. Location of Conditional Water Right: The decreed location of the Maroon Creek Reservoir conditional storage right is as follows: The decreed location of the Maroon Creek Reservoir is “Sections 7 and 8, Township 11 South, Range 85 West of the 6th P.M., (Pitkin County, Colorado).” The initial point of survey of the high water line of the reservoir on the west side of the dam is located such that the angle from the axis of the dam measured clockwise is 86° 57' to Pyramid Peak and 105° 56' to North Maroon Peak. (Ties to mountain peaks were used since the reservoir lies within an area not surveyed by local, state or federal agencies.) A map showing the decreed location of the Maroon Creek Reservoir is attached as Exhibit A. 9. Source. The decreed source of supply for the Maroon Creek Reservoir is East Maroon Creek and West Maroon Creek, tributary to Maroon Creek, tributary to the Roaring Fork River. 10. Appropriation Date and Amount. The appropriation date is July 19, 1965. The amount appropriated for the Maroon Creek Reservoir is 4,567 acre-feet. 11. Decreed Uses. As stated in the decree in CA5884, water stored in Maroon Creek Reservoir is decreed for industrial, irrigation, domestic, municipal, and other beneficial uses, both consumptive and non-consumptive, and for the use and benefit of the parties lawfully entitled thereto, sufficient water to fill said reservoir to its capacity of 4,567 acre-feet and to keep said reservoir reasonably well filled. 12. Integrated Water Supply System. The Maroon Creek Reservoir is part of Aspen’s integrated water supply system which currently includes surface water rights decreed for diversion from Maroon Creek, Castle Creek, Hunter Creek and the Roaring Fork River, and decreed wells, as well as water mains, lines and distribution systems for both raw and treated water, pump systems and related infrastructure, a hydroelectric plant and related infrastructure, all of which allow Aspen to provide water for municipal uses, including hydropower, within the city, and extraterritorially by agreement. The Maroon Creek Reservoir storage right is part of Aspen’s integrated water supply system. 3 EXHIBIT A TO STIPULATION DRAFT 20180315 - SETTLEMENT COMMUNICATION PROTECTED BY CRE 408 13. Finding of Reasonable Diligence. The Application requests a finding that the Applicant has exercised reasonable diligence in the development of the conditional water right awarded to the Maroon Creek Reservoir. The Court has reviewed the Application and has considered the Report of the Division Engineer Summary of Consultation and response thereto and finds that the work and expenditures described in the Application and the response to the Summary of Consultation constitute reasonable diligence in the development of the conditional water right, that the Application should be granted and the conditional decree for the Maroon Creek Reservoir water right in the amount of 4,567 acre-feet shall be continued in full force and effect. CONCLUSIONS OF LAW 14. The foregoing Findings of Fact are incorporated herein to the extent they constitute conclusions of law. 15. Timely and adequate notice of the Application was given in the manner provided by law, and the Application filed herein is complete, covering all applicable matters required under C.R.S. Section 37-92-302. 16. All notice required by law has been given, and no further notice need be given. C.R.S. Sections 37-92-101, et. seq. 17. The Court has jurisdiction over the subject matter of this proceeding and over all persons and property affected by this Application, regardless of whether such persons or property owners have appeared. C.R.S. Sections 37-92-301(2) and 303(1). 18. The Court concludes that Aspen has established that it has a non-speculative need for the water, that water can and will be stored under the Maroon Creek Reservoir conditional storage right and will be beneficially used, and that the appropriation can and will be completed with diligence and within a reasonable time. 19. Aspen has complied with all requirements and met all standards and burdens of proof including but not limited to those set forth in §§ 37-92-302(1), 37-92-103(3), and 37-92305(9) to adjudicate its claim for finding of reasonable diligence and is therefore entitled to a conditional decree confirming and approving its conditional water storage right as described in the Findings of Fact. Aspen has satisfied all other statutory and legal requirements to support a finding of reasonable diligence with regard to the Maroon Creek Reservoir storage right. 20. The Application is in accordance with Colorado law and should be granted. 4 EXHIBIT A TO STIPULATION DRAFT 20180315 - SETTLEMENT COMMUNICATION PROTECTED BY CRE 408 RULING, JUDGMENT AND DECREE 21. The Findings of Fact and Conclusions of Law, as set forth above, are incorporated herein by reference and are hereby modified as necessary to constitute part of the Ruling, Judgment and Decree. 22. The Application for finding of reasonable diligence is granted in the amount of 4,567 acre-feet conditional to the Maroon Creek Reservoir for storage for industrial, irrigation, domestic, municipal, and other beneficial uses, both consumptive and non-consumptive, and for the use and benefit of the parties lawfully entitled thereto, sufficient water to fill said reservoir to its capacity of 4,567 acre-feet and to keep said reservoir reasonably well filled, with an appropriation date of July 19, 1965. 23. It is hereby ordered that the conditional decree for the Maroon Creek Reservoir water right herein described is continued in full force and effect until_______________, 20__ , and if Aspen desires to maintain said water right, an application for finding of reasonable diligence shall be filed on or before that date or a showing shall be made on or before that date that the conditional water right has become absolute by reason of completion of the appropriation. 24. Pursuant to Rule 9 of the Uniform Local Rules for All State Water Court Divisions, upon the sale or transfer or any conditional rights decreed herein, the transferee shall file with the water court a notice of transfer which shall state or provide the following information: a. The title and case number of the case in which the conditional decree was issued; b. The description of the conditional water right transferred; c. The name of the transferor; d. The name and mailing address of the transferee; and e. A copy of the recorded deed. The owner of any conditional water right shall notify the clerk of the water court of any change in mailing address. The clerk shall also place any notice of transfer or change of address in the case file for Case No. CA5884 and in the case file for this case. 5 EXHIBIT A TO STIPULATION DRAFT 20180315 - SETTLEMENT COMMUNICATION PROTECTED BY CRE 408 25. It is further ordered that a copy of this Decree shall be filed with the Division Engineer, Water Division No. 5, and with the State Engineer. Dated___________________ ______________________________ James B. Boyd, Water Judge Water Division No. 5 State of Colorado 6 Maroon Creek Reservoir Legend ^ _ Maroon Creek Reservoir Roads ^ _ 4 1 inch = 2,500 feet 0 When printed at 8.5"x11" 1,000 2,000 4,000 Feet Date: 10/27/2016 City of Aspen WATER Geographic Information Systems This map/drawing/image is a graphical representation of the features depicted and is not a legal representation. The accuracy may change depending on the enlargement or reduction. Copyright 2016 City of Aspen GIS g Ri ve r rin Sp Colorado Index Map k Fo r Bu sh k in g re e Cre Cozy Point Ranch Vagneur Gravel Pit ek Aspen Pitkin County, Colorado ek Ro ar Cr 8500 Wi llo w k Pin eC Brush Cre ee ek re Cr ee k C oo n 10000 Ma r Buttermilk Mountain 0 750 Woody Creek Aspen Highlands 82 ¬ « 00 80 80 00 d oo W r yC k ee Qu ee 80 00 00 100 Aspen Mountain ASPEN a Ro r Fo k re Legend ek Red Mountain CITY OF ASPEN 3,000 9000 Potential New Reservoir Sites Map 6,000 Feet Topography from USGS DEM, C.I. =95100 00 feet Aerial Image from NAIP (2015) JOB NO. 0687.002.00 DATE: Ca sa da yC EXHIBIT re ek 5/23/2018 SCALE: 0 50 10 0 10000 State Highway 82 Potential Reservoir Sites 85 00 Smuggler Mountain Rivers and Streams 9500 Hu nt er C 9500 00 105 g rin 100 00 0 00 11 r ve Ri ¥ U:\0687 City of Aspen\0687.002 In-Situ Screening Study\GIS\Stipulation Exhibit B.mxd Wednesday, May 23, 2018 05:10 PM Aspen Golf Course reek ek tle C 8000 re Cas sC llin Co ns G ulc h Zoline Open Space B 1 inch=3,000 feet