DISTRICT COURT, WATER DIVISION NO. 5, STATE OF COLORADO DATE FILED: March 13, 2020 3:19 PM FILING ID: 3B56F640F330C CASE NUMBER: 2019CW3130 109 8th Street, Suite 104 Glenwood Springs, Colorado 81601 IN THE MATTER OF THE APPLICATION FOR WATER RIGHTS OF CRYSTAL RIVER RANCH CO., LLC, ▲ COURT USE ONLY ▲ Case Number: 19CW3130 (06CW249) IN GARFIELD COUNTY, COLORADO Division No. 5 RULING OF THE REFEREE AND DECREE OF THE WATER COURT The above entitled application was filed on November 30, 2019, and was referred to the undersigned as Water Referee for Water Division No. 5, State of Colorado, by the Water Judge of said Court in accordance with Article 92 of Chapter 37, C.R.S. 1973, known as the Water Right Determination and Administration Act of 1969. The undersigned Referee having made such investigations as are necessary to determine whether or not the statements in the Application are true, and having become fully advised with respect to the subject matter of the Application, does hereby make the following determination and Ruling as the Referee: FINDINGS OF FACT 1. Application. This matter involves the Application for a Finding of Reasonable Diligence (the “Application”) filed by the Crystal River Ranch Co. LLC, c/o Attn: Sue Anschutz-Rodgers, 555 17th Street, Suite 2400, Denver, CO 80202. 2. Jurisdiction. All notices required by law have been duly given and the Water Court has jurisdiction over the Application and all parties affected thereby, whether or not they have chosen to appear. 3. Objectors. No objections to this Application were filed and the time for filing statements of opposition has expired. 4. Description of the Conditional Water Rights (“Subject Water Rights”). The Subject Water Rights were decreed by the District Court in and for Water Division No. 5, State of Colorado (the “Water Court”) on November 7, 2013, in Case No. 06CW249, and are described as follows: (a) 112494 Name of structures: Sue’s Four Mile Reservoir No. 1 and Sue’s Four Mile Reservoir No. 2. Findings of Fact, Conclusions of Law, Ruling of the Referee, and Decree of the Water Court Case No. 19CW3130 Page 2 of 5 (b) Legal description of the points of diversion: i. Sue’s Four Mile Reservoir No. 1: The point of diversion from Four Mile Creek is located at the headgate of the McKown Ditch, located at a point on the South bank of Four Mile Creek at a point whence the South ¼ corner, Section 27, T. 7 S. R. 89 W., 6th P.M. bears North 6°30’ East 1,570 feet. The Reservoir will also intercept springs and seeps in the Freeman Creek drainage tributary to the east end of the dam, which is located at a point 2400 feet west of the east section line and 2700 feet south of the north section line of Section 26, T. 7 S., R. 89 W., 6th P.M. ii. Sue’s Four Mile Reservoir No. 2: The point of diversion from Four Mile Creek is located at the headgate of the McKown Ditch, located at a point on the South bank of Four Mile Creek at a point whence the South ¼ corner, Section 27, T. 7 S., R. 89 W., 6th P.M. bears North 6°30’ East 1,570 feet. The Reservoir will also intercept springs and seeps tributary to the northeast end of the dam, which is located at a point 1500 feet east of the west section line and 700 feet north of the south section line of Section 24, T. 7 S., R. 89 W., 6th P.M. (c) Source: Four Mile Creek, a tributary of the Roaring Fork River, tributary to the Colorado River. (d) Appropriation date: December 1, 2006. (e) Amount claimed: i. Sue’s Four Mile Reservoir No. 1: 500 acre-feet, conditional. ii. Sue’s Four Mile Reservoir No. 2: 500 acre-feet, conditional. The maximum fill rate for either or both reservoirs is 35 cfs. (f) Uses: Stock watering, piscatorial, wildlife, and irrigation. The land to be irrigated is located in Sections 14, 23, 24, 25, and 26, T. 7 S., R. 89 W., 6th P.M. Augmentation and exchange uses of the subject storage rights will require prior Water Court approval of a plan for augmentation and/or exchange. (g) Dam measurements: i. 112494 Sue’s Four Mile Reservoir No. 1: 55 feet high and 950 feet long. The surface area when full is 22 acres. Findings of Fact, Conclusions of Law, Ruling of the Referee, and Decree of the Water Court Case No. 19CW3130 Page 3 of 5 ii. Sue’s Four Mile Reservoir No. 2: 55 feet high and 800 feet long. The surface area when full is 30 acres. A map depicting the locations of the Subject Water Rights and irrigated lands is attached as Exhibit A. 5. Report of the Division Engineer. The Referee and the Water Court have given due consideration to the Division Engineer’s Summary of Consultation dated February 27, 2020, and the verified Application which details the diligence activities during the subject diligence period. 6. Findings of Reasonable Diligence for the Subject Water Rights. The Application requests a finding that the Applicant has exercised reasonable diligence in the development of the Subject Water Rights. The Application contains a detailed description of activities performed by the Applicant during the diligence period toward development of the Subject Water Rights. The Referee finds that the work and expenditures described in the Application constitute reasonable diligence in the development of the remaining conditional portions of the Subject Water Rights and the Application should be granted. C.R.S. § 37-92-301(4). CONCLUSIONS OF LAW 7. To the extent they constitute legal conclusions, the foregoing Findings of Fact are incorporated herein. 8. All notices required by law have been properly made, including as required under C.R.S. § 37-92-302(3). 9. The Application is complete, covering all applicable matters required pursuant to the Water Right Determination and Administration Act of 1969. C.R.S. §§ 37-92-101– 602. 10. The Water Court has jurisdiction over this matter and all persons or entities affected hereby, whether they have appeared or not in this proceeding. C.R.S. §§ 37-92-203(1) and -301(2). 11. The Water Court has authority to grant the finding of reasonable diligence requested in the Application. C.R.S. §§ 37-92-301(2), -302 and -303(1). 12. The measure of diligence is the steady application of effort to complete the appropriation in a reasonably expedient and efficient manner under all of the facts and circumstances. C.R.S. § 37-92-301(4)(b). 13. The Water Court may consider all relevant factors in determining whether the holder of a conditional water right has exercised reasonable diligence in the development of the 112494 Findings of Fact, Conclusions of Law, Ruling of the Referee, and Decree of the Water Court Case No. 19CW3130 Page 4 of 5 appropriation. See Trans County Water, Inc. v. Central Colo. Water Conservancy Dist., 727 P.2d 60 (Colo. 1986). 14. The Application is in accordance with Colorado law and should be granted as set forth herein. RULING OF THE REFEREE 15. The Findings of Fact and Conclusions of Law as set forth above are incorporated herein by reference and constitute part of this Ruling. 16. The Applicant has complied with all applicable requirements and met all applicable standards and burdens of proof and is entitled to the relief requested in the Application as set forth herein. 17. The Referee GRANTS the Application and determines that Applicant has demonstrated reasonable diligence in the development of the Subject Water Rights and continues the conditional portions in full force and effect. 18. Pursuant to Rule 9 of the Uniform Local Rules for All State Water Court Divisions, upon the sale or other transfer of the conditional water rights decreed herein, the transferee shall file with the Water Court a notice of transfer which shall state: a) The title and case number of this Case No. 19CW3130; 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 said conditional water rights shall also notify the Clerk of the Water Court of any change in mailing address. The Clerk shall place any notice of transfer or change of address in the case file of this Case No. 19CW3130. 20. An application for Sextennial Finding of Reasonable Diligence shall be filed on or before the last day of the same month six years from the date of the Water Judge’s order as set forth below, if the Applicant wishes to maintain the Subject Water Rights, or a showing made on or before said date that the Subject Water Rights have been made absolute by completion of the appropriation. Accordingly, it is ORDERED that this Ruling shall be filed with the Water Clerk subject to judicial review. 112494 Findings of Fact, Conclusions of Law, Ruling of the Referee, and Decree of the Water Court Case No. 19CW3130 Page 5 of 5 It is further ORDERED that a copy of this Ruling shall be filed with the appropriate Division Engineer and State Engineer. Dated this ____ day of _____________, 2020. BY THE REFEREE: _____________________________ Susan M. Ryan, Water Referee Water Division No. 5 DECREE OF THE WATER COURT No protest was filed in this matter. The foregoing Ruling is confirmed and approved and is made the Judgment and Decree of this Court. Dated this ____ day of _____________, 2020 BY THE COURT: ___________________________ James Boyd, Water Judge Water Division No. 5 112494