Free Settlement Agreement - District Court of Colorado - Colorado

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Civil Action No. 02-cv-01841-MSK-MJW UNITED STATES OF AMERICA, Plaintiff, v. 117.54 ACRES OF LAND, MORE OR LESS, SITUATED IN LA PLATA, COUNTY, COLORADO; and STATE OF COLORADO; LA PLATA COUNTY TREASURER, LA PLATA, COLORADO; COLORADO TELEPHONE COMPANY; MESA GRANDE GAS COMPANY; COLORADO-UTE ELECTRIC ASSOCIATION, INC.; BOARD OF COUNTY COMMISSIONERS, LA PLATA COUNTY, COLORADO; PEOPLES NATURAL GAS COMPANY; NORTHWEST PIPELINE CORPORATION; ENTERPRISE PRODUCTS PARTNERS L.P.; ATMOS ENERGY CORPORATION; and LA PLATA ELECTRIC ASSOCIATION, INC.; UNKNOWN OWNERS, Defendants.

STIPULATED SETTLEMENT AGREEMENT BY AND BETWEEN PLAINTIFF UNITED STATES AND DEFENDANT STATE OF COLORADO

COME NOW Plaintiff United States of America, by and through the United States Attorney for the District of Colorado, and Defendant State of Colorado, by and through the Colorado State Attorney General, and stipulate and agree to the following: WHEREAS, the Animas-La Plata Project is located in southwest Colorado and northwest New Mexico.

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WHEREAS, the Animas-La Plata Project fulfills the federal government's trust responsibility to address the Colorado Ute Indians' water rights; respects existing water rights of non-Indians in the San Juan River Basin; furnishes, via a pipeline, the Navajo Nation with water in the Shiprock, New Mexico, area; allows for municipal and industrial water for non-Indian communities in the Four Corners area; and provides increased certainty for water managers in the San Juan River Basin. WHEREAS, in furtherance of the Animas-La Plata Project, on September 25, 2002, Plaintiff United States filed a Complaint in Condemnation in this civil action in reference to 115.38 acres, more or less, for perpetual easements and temporary easements on, over, under or across certain real property located in La Plata County, Colorado, as more particularly described in Schedule B and delineated in the maps in Schedule C attached to the Complaint in Condemnation. WHEREAS, on October 4, 2002, Plaintiff United States deposited the sum of Two Hundred Thirty-Four Thousand Dollars ($234,000) into the Registry of the Court as the amount of estimated just compensation for the perpetual easements and temporary easements on, over, under or across the property described in the Complaint in Condemnation. WHEREAS, on October 8, 2002, Plaintiff United States filed an Amended Complaint in Condemnation and a Declaration of Taking in reference to the perpetual easements and temporary easements on, over, under or across the property, as more

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particularly described in Schedule B and delineated in the maps in Schedule C attached to the Declaration of Taking ("Easement Property"). WHEREAS, the Easement Property consisted of 115.38 acres, more or less, in perpetual easements and temporary easements on, over, under or across the Easement Property. WHEREAS, Defendant State of Colorado, Division of Wildlife, claims that it was the rightful owner of the Easement Property at the time of the filing of the Declaration of Taking. WHEREAS, on September 23, 2005, the parties filed a Stipulated Consent to File Second Amended Complaint in Condemnation and a Second Amended Declaration of Taking.1 WHEREAS, on September 23, 2005, Plaintiff United States filed a Second Amended Complaint in Condemnation and a Second Amended Declaration of Taking. WHEREAS, pursuant to the Second Amended Complaint in Condemnation and a Second Amended Declaration of Taking, the Easement Property was increased to 117.24 acres, more or less, as more particularly described in the Amended Schedule B and delineated in the maps in the Amended Schedule C attached to the Second Amended Declaration of Taking ("Second Amended Easement Property"2).

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Plaintiff United States did not file an Amended Declaration of Taking.

There is no "Amended Easement Property" defined in this Stipulated Settlement Agreement by and between Plaintiff United States and Defendant State of Colorado. 3

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WHEREAS, pursuant to the Stipulated Consent to File Second Amended Complaint in Condemnation, no additional funds were deposited in reference to the taking of the Second Amended Easement Property. WHEREAS, Defendant State of Colorado, Division of Wildlife, claims that it was the rightful owner of the Second Amended Easement Property at the time of the filing of the Second Amended Declaration of Taking. WHEREAS, on February 2, 2006, the Court entered a Protective Order to protect certain information relating to the location, placement, and operation of certain gas pipelines, other pipelines, and facilities. WHEREAS, on May 1, 2006, the parties filed a Stipulated Consent to File Third Amended Complaint in Condemnation and a Third Amended Declaration of Taking. WHEREAS, on May 1, 2006, Plaintiff United States filed a Third Amended Complaint in Condemnation and a Third Amended Declaration of Taking. WHEREAS, pursuant to the Third Amended Complaint in Condemnation and the Third Amended Declaration of Taking, the Second Amended Easement Property was increased to 117.54 acres, more or less, as more particularly described in the Third Amended Schedule B and delineated in the maps in the Third Amended Schedule C attached to the Third Amended Declaration of Taking ("Third Amended Easement Property").

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WHEREAS, pursuant to the Stipulated Consent to File Third Amended Complaint in Condemnation, no additional funds were deposited in reference to the taking of the Third Amended Easement Property. WHEREAS, the Third Amended Easement Property is taken for the purposes of: A. Relocating certain easements, previously owned by The Williams Companies, Inc. (Northwest Pipeline Corporation and Mid-America Pipeline Company) that were required to be relocated in order to construct the Animas-La Plata Project; B. Constructing, reconstructing, operating, inspecting, repairing, protecting, and maintaining a pipeline or pipelines owned by Northwest Pipeline Corporation; C. Constructing, reconstructing, operating, inspecting, repairing, protecting, and maintaining a pipeline or pipelines owned by Mid-America Pipeline Company, LLC; and D. Constructing, reconstructing, operating, inspecting, repairing, protecting, and maintaining the Inlet Conduit for Ridges Basin Dam and Reservoir, Animas-La Plata Project, and its associated facilities and operations, including but not limited to, power line(s) and communication facilities. WHEREAS, Defendant State of Colorado, Division of Wildlife, claims that it was the rightful owner of the Third Amended Easement Property at the time of the filing of the Third Amended Declaration of Taking. WHEREAS, on November 3, 2006, Plaintiff United States filed a Fourth Amended Complaint in Condemnation for the sole and exclusive purpose of adding La Plata Electric Association, Inc., as a named defendant.

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WHEREAS, on November 15, 2006, Defendant La Plata County Treasurer filed a Disclaimer of Interest in the just compensation to be awarded in this civil condemnation action. WHEREAS, on December 7, 2006, Defendant Board of County Commissioners, La Plata County, Colorado, filed a Disclaimer of Interest in the just compensation to be awarded in this civil condemnation action. WHEREAS, on December 12, 2006, Qwest Corporation, as successor-in-interest in certain easements granted to Qwest Corporation from Defendant Colorado Telephone Company, filed a Stipulation and Dismissal of Defendant Qwest Corporation in which, among other things, Qwest Corporation disclaims any right, title, or interest in and to the Third Amended Easement Property and to any award of just compensation or settlement related to this civil condemnation action. WHEREAS, on January 3, 2007, Tri-State Generation and Transmission Association, Inc., as successor-in-interest to Defendant Colorado-Ute Electric Association filed a Disclaimer of Interest in the just compensation to be awarded in this civil condemnation action. THEREFORE, before the taking of any testimony upon the pleadings, without further adjudication of any issue of fact or law, and upon the consent of Plaintiff United State and Defendant State of Colorado, by their authorized representatives, it is hereby stipulated and agreed as follows:

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I. DEFINED TERMS 1. The parties stipulate and agree for the purposes of this Stipulated Settlement Agreement that the following terms are defined as set forth below: A. The term "Easement Property" means the property that is the subject of the Amended Complaint in Condemnation and the Declaration of Taking filed on October 8, 2002, in this civil action in reference to certain real property located in La Plata County, Colorado, as more particularly described in the Schedule B and delineated in the maps in Schedule C attached to the Declaration of Taking. B. The term "Amended Easement Property" is not defined herein. C. The term "Second Amended Easement Property" means the property that is the subject of the Second Amended Complaint in Condemnation and the Second Amended Declaration of Taking3 filed on September 23, 2005, in this civil action in reference to certain real property located in La Plata County, Colorado, as more particularly described in the Amended Schedule B and delineated in the maps in the Amended Schedule C attached to the Second Amended Declaration of Taking. D. The term "Third Amended Easement Property" means the property that is the subject of the Third Amended Complaint in Condemnation and the Third Amended Declaration of Taking filed on May 1, 2006, in this civil action in

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Plaintiff United States did not file an Amended Declaration of Taking. 7

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reference to certain real property located in La Plata County, Colorado, as more particularly described in the Third Amended Schedule B and delineated in the maps in the Third Amended Schedule C attached to the Third Amended Declaration of Taking. E. The term "Animas-La Plata Project" means the federal project located in southwest Colorado and northwest New Mexico that fulfills the federal government's trust responsibility to address the Colorado Ute Indians' water rights; respects existing water rights of non-Indians in the San Juan River Basin; furnishes, via a pipeline, the Navajo Nation with water in the Shiprock, New Mexico, area; allows for municipal and industrial water for non-Indian communities in the Four Corners area; and provides increased certainty for water managers in the San Juan River Basin. F. The term "As-Built-Drawings" means engineering drawings depicting facilities after completion of the construction of the facilities. G. The term "Bureau of Reclamation" means the Bureau of Reclamation, United States Department of the Interior. H . The term "CDOW Condemnation" means the civil action entitled United States v. 117.54 Acres, et al., Civil Action No. 02-cv-01841-MSK-MJW, United States District Court for the District of Colorado.

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I. The term "Defendant Colorado" means the State of Colorado, its agencies, divisions, various subparts, employees, agents, contractors, successors, and/or assigns. J. The term "Drop Structure 4 Basin Creek Crossing" means the crossing structure that the Bureau of Reclamation has constructed, as a feature of the Animas-La Plata Project, located in Parcel RBR-4A(Fee) that traverses Basin Creek and that is or will be part of Ridges Basin Dam Access Road. K. The term "Exchange Parcel" means that certain parcel of land owned by Plaintiff United States described generally as E1/2, NE1/4, NE1/4, Section 7, T 34 N, R 9 W, N.M.P.N., North of the Ute Line consisting of 17.26 acres, more or less. L. The term "Existing Northern Easement" means an undefined easement for ingress and egress from La Plata County Road 211 on the north and then southerly through Ridges Basin crossing Sections 1 and 12, T34N, R10W, and Sections 6 and 7, T34N, R9W, NMPM, North of the Ute Line. The Existing Northern Easement provided Defendant Colorado access to their remaining land holdings south of Carbon Mountain and specifically to their communication tower site on Carbon Mountain. The access will no longer be available because of the construction of Ridges Basin Dam, Animas-La Plata Project.

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M. The term "Final Ridges Basin Inlet Conduit Easement" means the perpetual easement consisting of 47.61 acres, more or less, and more particularly described as Parcel RBR-12C(P) in the Third Amended Schedule B and delineated in the maps in the Third Amended Schedule C attached to the Third Amended Declaration of Taking. N. The term "First Ridges Basin Inlet Conduit Easement" means the perpetual easement consisting of 45.45 acres, more or less, and more particularly described as Parcel RBR-12C(P) in Schedule B and delineated in the maps in Schedule C attached to the Declaration of Taking. O. The term "Gas Pipelines" means the pipeline owned by Northwest Pipeline Corporation and the two (2) pipelines owned by Mid-America Pipeline Company, LLC, that have been relocated from the Previous Gas Pipeline Easements to the Gas Pipeline Easements. P. The term "Gas Pipeline Easements" means the perpetual easements consisting of 59.75 acres, more or less, and more particularly described as Parcel RBR-12A(P), Parcel RBR-12A-1(P), Parcel RBR-12A-2(P), Parcel RBR-12A-3(P), Parcel RBR-12A-4(P), Parcel RBR-12A-5(P), Parcel RBR12B(P), and Parcel RBR-12B-4(P) in the Third Amended Schedule B and delineated in the maps in the Third Amended Schedule C attached to the Third Amended Declaration of Taking.

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Q. The term "Gas Pipeline Easements Crossing Protocols" means the protocols that establish the process and procedures to be followed when traversing the Gas Pipeline Easements with Light Trucks and/or Heavy Equipment. The Gas Pipeline Easements Crossing Protocols are attached hereto as Attachment 2. R. The term "Heavy Equipment" means vehicles, trucks and/or equipment heavier than a Light Truck as defined herein. S. The term "Improved Basin Creek Crossing" means the crossing structure that will be constructed by the Bureau of Reclamation, as a feature of the AnimasLa Plata Project, located in Parcel RBR-4B(Fee) that will traverse Basin Creek for the Isgar/Wheeler Road. T. The term "Isgar Condemnation" means the civil action entitled United States v. 74.33 Acres of Land, et al., Civil Action No. 03-cv-01095-JLK-GJR, United States District Court for the District of Colorado. U. The term "Isgar Property" means that certain property owned by Shirley Isgar and Charles Isgar generally described as: All that part of the SW1/4SW1/4 of Section 7U and Lots 1 and 2 (W1/2NW1/4) and the NE1/4NW1/4 of Section 18, Township 34 North Range 9 West, N.M.P.M, and all that part of the SE1/4SE1/4 of Section 12U and the E1/2NE1/4 of Section 13U, Township 34 North, Range 10 West, N.M.P.M., La Plata County, Colorado, lying and being Westerly of County Road 213.

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LESS AND EXCEPT tracts described in Warranty Deed from Arthur Isgar and Anne Isgar to Animas Air Park, Inc., A Colorado Corporation, recorded December 7, 1977 as Reception No. 415401. V. The term "Isgar/Wheeler Road" means the currently existing gravel road that traverses from County Road 213 east to west across the southern part of the Isgar Property and continues to traverse Parcel RBR-4H(Fee) and Parcel RBR-4B(Fee). W. The term "Isgar/Wheeler Road Corridor" means a corridor of land that will encompass that part of the Isgar/Wheeler Road traversing the southern part of the Isgar Property from County Road 213 to Parcel RBR-4H(Fee), defined as Pracel RBR-5E(Fee). X. The term "Isolated Parcel" means that certain parcel of land owned by Defendant Colorado described generally as W1/2, NW1/4, Section 8, T 34, R 9 W, N.M.P.M., North of the Ute Line that was isolated from certain other land owned by Defendant Colorado as a result of a previous acquisition of land owned by Defendant Colorado by Plaintiff United States for purposes of the Animas-La Plata Project. Y. The term "Lafarge Condemnation" means the civil action entitled United States v. 101.47 Acres of Land, et al., Civil Action No. 03-cv-01281-JLK-GJR, United States District Court for the District of Colorado.

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Z. The term "Light Truck" means a vehicle with a live load of less than 4,000 pounds per axle. The definition of a "Light Truck" includes most 3/4 ton and 1 ton pickup trucks field equipped. AA. The term "Parcel RBR-1(Fee)" means that parcel of land that is described as Parcel No. RBR-1(Fee) in Schedule B and delineated in the maps in Schedule C attached to the Declaration of Taking filed November 5, 1991 in United States v. 3,955.5 Acres of Land, et al., Civil Action No., 91-F-1933, United States District Court for the District of Colorado. BB. The term "Parcel RBR-3A(Fee)" means that parcel of land that is described as Parcel No. RBR-3A(Fee) in the Quit Claim Deed as filed on July 1, 1996, at Reception No. 709560 with the La Plata County Clerk and Recorder. CC. The terms "Parcel RBR-4(Fee)," "Parcel RBR-4A(Fee)," "Parcel RBR-4B(Fee)," and "Parcel RBR-4H(Fee)" mean those certain parcels of land that are described as Parcel RBR-4(Fee), Parcel RBR-4A(Fee), Parcel RBR-4B(Fee), and Parcel RBR-4H(Fee) in the Second Amended Schedule B and delineated in the maps in the Second Amended Schedule C attached to the Second Amended Declaration of Taking filed in the Wheeler Condemnation. DD. The terms "Parcel RBR-5A(Fee)" and "Parcel RBR-5D(Fee)" mean those certain parcels of land that are described as Parcel RBR-5A(Fee) and Parcel RBR-5D(Fee) in the Amended Schedule B and delineated in

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the maps in the Amended Schedule C attached to the Amended Declaration of Taking filed in the Isgar Condemnation. EE. The term "Parcel RBR-11(Fee)" means that certain parcel of land that is described as Parcel RBR-11(Fee) in the Third Amended Schedule B and delineated in the map in the Third Amended Schedule C attached to the Third Amended Declaration of Taking filed in the Lafarge Condemnation. FF. The term "Perpetual Easements" means the perpetual easements condemned in this civil action as described in more detail in the Third Amended Schedule B and delineated in the maps in the Third Amended Schedule C attached to the Third Amended Declaration of Taking. GG. The term "Previous Gas Pipeline Easements" means the pipeline easements owned by Northwest Pipeline Corporation, and its predecessorin-interest, and by Mid-America Pipeline Company, LLC, that were required to be relocated in order to accommodate the construction of the Animas-La Plata Project. HH. The term "Protective Order" means the Protective Order that was entered by the Court on February 2, 2006, in this civil action to protect certain information relating to the location, placement, and operation of certain gas pipelines, other pipelines, and facilities. II. The term "Relocated Easement" means a non-exclusive easement for Defendant Colorado's ingress and egress enabling access from La Plata

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County Road 213 to Defendant Colorado's remaining land holdings south of Carbon Mountain. The Relocated Easement traverses lands acquired or to be acquired by the United States for the construction, operation, and maintenance of the Animas-La Plata Project. For the most part, the Relocated Easement is and shall be on the current and future alignment of Ridges Basin Dam Access Road; however, a part of the Relocated Easement will veer north a short distance below Ridges Basin Dam onto the existing 2-track road ascending Carbon Mountain. The Relocated Easement includes the Improved Basin Creek Crossing and Drop Structure 4 Basin Creek Crossing. The Relocated Easement consists of six (6) separate easement sections defined as: Section 1 ­ An easement located on the Isgar/Wheeler Road within the Isgar/Wheeler Corridor; Section 2 ­ An easement through Parcel RBR-4H(Fee) and Parcel RBR-4B(Fee) on the Isgar/Wheeler Road; Section 3 ­ An easement through Parcel RBR-4B(Fee), Parcel RBR-5A(Fee), Parcel RBR-5D(Fee), and Parcel RBR-4A(Fee); Section 4 ­ An easement through Parcel RBR-4A(Fee) and Parcel RBR-11(Fee); Section 5 ­ An easement through Parcel RBR-4(Fee), Parcel RBR-3A(Fee) and Parcel RBR-1(Fee); and Section 6 ­ An easement through Parcel RBR-1(Fee) and Parcel RBR-3A(Fee).

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JJ. The term "Relocated Easement Document" means the document that grants the Relocated Easement from Plaintiff United States, as grantor, to Defendant Colorado, as grantee. KK. The term "Ridges Basin Dam Access Road" means the road that will be used to operate, maintain, service, and inspect Ridges Basin Dam. Ridges Basin Dam Access Road when completed will generally follow a course from County Road 213 east to west along the Isgar/Wheeler Road, through Parcel RBR-4H(Fee), then in a generally northerly direction through Parcel RBR-4B(Fee), Parcel RBR-5A(Fee), Parcel RBR-5D(Fee), Parcel RBR-4A(Fee), Parcel RBR-11(Fee), Parcel RBR-4(Fee), Parcel RBR-3A(Fee), and Parcel RBR-1(Fee) continuing to Ridges Basin Dam. LL. The term "Ridges Basin Inlet Conduit" means the pipeline and associated facilities and operations, including the above-ground power line(s), as defined in the CDOW Condemnation, also known as the Inlet Conduit for the Ridges Basin Dam and Reservoir. MM. The term "Ridges Basin Inlet Conduit Easement Crossing Protocols" means the protocols that establish the process and procedures to be followed when traversing over the Final Ridges Basin Inlet Conduit Easement with Light Trucks and/or Heavy Equipment. The Ridges Basin Inlet Conduit Easement Crossing Protocols are attached hereto as Attachment 3. After the construction of the above-ground power line(s) within the Final

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Ridges Basin Inlet Conduit Easement, additional protocols will be developed by Plaintiff United States and Defendant Colorado that will establish the process and procedures to be followed when crossing under the said above-ground power line(s). NN. The term "Stipulated Settlement Agreement" means the stipulated settlement agreement contained herein. OO. The term "Wheeler Condemnation" means the civil action entitled United States v. 116.06 Acres of Land, et al., Civil Action No. 03-cv-01298-JLKGJR, United States District Court for the District of Colorado. II. JURISDICTION AND VENUE 2. This Court has jurisdiction over the subject matter of this civil action pursuant to 40 U.S.C. § 3114 (formerly 40 U.S.C. § 258a) and 28 U.S.C. § 1345. 3. Venue is proper in this judicial district pursuant to 28 U.S.C. § 1403, because the Third Amended Easement Property is located in this judicial district. 4. The authority for the taking of the Third Amended Easement Property is set forth in the Third Amended Schedule A attached to the Third Amended Complaint in Condemnation and the Third Amended Declaration of Taking filed in this civil action and incorporated herein by reference. III. ADMITTED FACTS 5. Defendant State of Colorado, Division of Wildlife, claims right, title and interest in and to the Third Amended Easement Property at the time of the filing of the Third Amended Declaration of Taking. 17

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IV. SCOPE OF THIS STIPULATED SETTLEMENT AGREEMENT 6. This Stipulated Settlement Agreement shall constitute a complete and final settlement of all claims for just compensation between Plaintiff United States and Defendant Colorado arising from and in connection with the condemnation of the Third Amended Easement Property. 7. This Stipulated Settlement Agreement shall also constitute a complete and final settlement of any and all claims and/or demands of whatever nature Defendant Colorado has, had, or may have against Plaintiff United States, the Bureau of Reclamation, the United States Department of the Interior, and/or their employees and/or agents arising from or in connection with the filing of the CDOW Condemnation. V. SPECIFIC PROVISIONS A. Just Compensation 8. Plaintiff United States and Defendant Colorado stipulate and agree that the amount of just compensation for the Third Amended Easement Property shall be and is Two Hundred Eighty-Three Thousand Eight Hundred Dollars ($ 285,100) ("Just Compensation"). 9. Plaintiff United States and Defendant Colorado stipulate and agree that the Just Compensation is composed of the following items: (a) The value of the Third Amended Easement Property (b) The value of the additional cover required by the Gas Pipeline Easement Crossing Protocols for Designated Crossing Points 1, 3, and 4 $256,500

$ 11,600

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(c) The value of weed eradication and revegetation within the Gas Pipeline Easements Total

$ 17,000 $285,100

10. On October 4, 2002, Plaintiff United States deposited the sum of Two Hundred Thirty-Four Thousand Dollars ($234,000) into the Registry of the Court as the amount of estimated just compensation for the perpetual easements and temporary easements on, over, under, and across the property condemned in this civil condemnation action ("Estimated Just Compensation"). 11. Plaintiff United States and Defendant Colorado stipulate and agree that additional compensation is due and owing to Defendant Colorado in the amount of Fifty-One Thousand One Hundred Dollars ($285,100 ­ $234,000 = $51,100) ("Additional Just Compensation"). 12. Plaintiff United States and Defendant Colorado stipulate and agree that the Defendant Colorado shall accept the Additional Just Compensation in the equivalent of land based on a compromised fee value of the parties' land appraisals used in this civil action. B. Revegetation of Ridges Basin Inlet Conduit Easement 13. Plaintiff United States and Defendant Colorado stipulate and agree that Plaintiff United States, through the Bureau of Reclamation, its agents and/or assigns, shall be responsible for initial post construction revegetation within the Final Ridges Basin Inlet Conduit Easement. Recognizing Ridges Basin Inlet Conduit will be constructed within several vegetation and soil types, successful revegetation shall occur 19

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when herbaceous vegetation growth (grass and forbs) is reasonably comparable to adjacent undisturbed areas and when (if required) shrub layer initiation is reasonably evident. C. Relocation of Gas Pipelines 14. In furtherance of the Animas-La Plata Project, the Gas Pipelines were required to be relocated from the Previous Gas Pipeline Easements to the Gas Pipeline Easements which are located on Defendant Colorado's land. Such pipeline relocations were mandated by the construction of the Ridges Basin Dam and its facilities. 15. To successfully facilitate the relocation, the Bureau of Reclamation entered into a construction Cooperative Agreement with the owners of the Gas Pipelines wherein the Bureau of Reclamation was required to obtain the Gas Pipeline Easements. 16. "For the purpose of effecting completely" the relocation of the Gas Pipelines to the Gas Pipeline Easements and as a component of this Stipulated Settlement Agreement, Plaintiff United States and Defendant Colorado stipulate and agree that the Additional Just Compensation referenced in paragraph 11 herein shall be in the form of an exchange of fee title land owned by Plaintiff United States. See, Section 14 of Reclamation Project Act of 1939 (43 U.S.C. § 389(c)). 17. Pursuant to the Bureau of Reclamation's relocation authority, section 14 of the Reclamation Act of 1939 (43 U.S.C. § 389), Plaintiff United States agrees to and shall exchange to Defendant Colorado the Exchange Parcel.

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18. Plaintiff United States and Defendant Colorado stipulate and agree that the Exchange Parcel shall be valued based on a compromised fee value of the parties' land appraisals used in this civil action. 19. Plaintiff United States and Defendant Colorado stipulate and agree that the per acre value of the Exchange Parcel shall be a compromised value of Plaintiff United States' per acre appraised value of the Third Amended Easement Property and Defendant Colorado's per acre appraised value of the Third Amended Easement Property. 20. Plaintiff United States and Defendant Colorado stipulate and agree that the per acre value of the Exchange Parcel shall be Two Thousand Nine Hundred Sixty-One Dollars ($2,961) per acre. 21. Plaintiff United States and Defendant Colorado stipulate and agree that the Exchange Parcel shall be and is the E1/2, NE1/4, NE1/4, Section 7, T 34 N, R 9 W, N.M.P.N., North of the Ute Line consisting of 17.26 acres, more or less. 22. Plaintiff United States agrees to and shall provide, within ninety (90) days of the filing of this Stipulated Settlement Agreement, a Quit Claim Deed conveying fee title of the Exchange Parcel to Defendant Colorado. 23. As a further benefit of the conveyance of the Exchange Parcel, Plaintiff United States and Defendant Colorado stipulate and agree that the said exchange shall fully and completely mitigate and remedy the unintended severance and isolation

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of the Isolated Parcel which resulted from a previous acquisition of land for the AnimasLa Plata Project by Plaintiff United States from Defendant Colorado. 24. As a result of the conveyance of the Exchange Parcel, the Isolated Parcel will be reconnected to land owned by Defendant Colorado and will no longer be isolated from the other land owned by Defendant Colorado. D. Relocation Of Existing Northern Easement 25. For purposes of this Stipulated Settlement Agreement, Plaintiff United States does not contest that Defendant Colorado has the Existing Northern Easement, as defined herein, and prior to construction of Ridges Basin Dam had access to certain of Defendant Colorado's property south of Carbon Mountain including but not limited to its communication tower site located on Carbon Mountain. 26. Pursuant to the Bureau of Reclamation's relocation authority, section 14 of the Reclamation Project Act of 1939 (43 U.S.C. § 389), Plaintiff United States agrees to and shall relocate the Existing Northern Easement to the Relocated Easement. 27. In the near future and for the purpose, in part, to obtain land for Section 1 of the Relocated Easement, Plaintiff United States shall file a Second Amended Complaint in Condemnation and a Second Amended Declaration of Taking in the Isgar Condemnation. 28. In the Second Amended Declaration of Taking in the Isgar Condemnation, Plaintiff United States will condemn the Isgar/Wheeler Road Corridor.

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29. Section 1 of the Relocated Easement shall be located on the Isgar/Wheeler Road within the Isgar/Wheeler Road Corridor. 30. Sections 1, 2, 3, 4, and 5 of the Relocated Easement shall be on the alignment of Ridges Basin Dam Access Road. 31. Thereafter, the Relocated Easement shall be granted to Defendant Colorado for the purpose of relocating the Existing Northern Easement from its undefined location to a defined location as the Relocated Easement. 32. The Relocated Easement shall, among other things, replace Defendant Colorado's access to Defendant Colorado's property south of Carbon Mountain, including but not limited to Defendant Colorado's communication tower site located on Carbon Mountain. 33. The Relocated Easement Document shall be finalized and delivered to Defendant Colorado by Plaintiff United States after the completion of Ridges Basin Dam and at such time as the final alignment of Section 4 of the Relocated Easement has been finalized. 34. The Relocated Easement Document shall be in a form acceptable to Defendant Colorado and in a form substantially similar to Attachment 1 attached hereto. 35. Based upon the current Ridges Basin Dam completion schedule, the Relocated Easement Document should be available on or about April 2011. 36. Prior to delivery of the Relocated Easement Document to Defendant Colorado, the Bureau of Reclamation shall provide interim access similar to the

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Relocated Easement along available access alignments, pursuant to a twenty-four hour advanced telephonic notice by Defendant Colorado to the Project Construction Engineer for the Animas-La Plata Project located in Durango, Colorado. 37. Defendant Colorado stipulates and agrees to and hereby does waive, release, and abandon all right, title, and interest in and to the Existing Northern Easement. 38. Defendant Colorado stipulates and agrees to and hereby does accept the Relocated Easement as a replacement for the Existing Northern Easement. E. Traversing The Perpetual Easements 39. Plaintiff United States and Defendant Colorado recognize and agree that there may be a need, from time to time, for Defendant Colorado to traverse the Gas Pipeline Easements and/or the Final Ridges Basin Inlet Conduit Easement with Light Trucks. 40. Plaintiff United States and Defendant Colorado recognize and agree that there may be a need, from time to time, for Defendant Colorado to traverse the Gas Pipeline Easements and/or the Final Ridges Basin Inlet Conduit Easement with Heavy Equipment. E. I Traversing The Gas Pipeline Easements 41. Plaintiff United States, Defendant Colorado, Defendant Northwest Pipeline Corporation and Defendant Mid-America Pipeline Company, LLC, have jointly consulted

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concerning the issue of Defendant Colorado traversing the Gas Pipeline Easements with Light Trucks. 42. Pursuant to the consultation, Plaintiff United States, Defendant Colorado, Defendant Northwest Pipeline Corporation and Defendant Mid-America Pipeline Company, LLC, jointly agree that Defendant Colorado may traverse the Gas Pipeline Easements with Light Trucks on an intermittent basis at any location along the Gas Pipeline Easements assuming that the cover over the Gas Pipelines has remained at the as-constructed depth. 43. In order to accommodate the anticipated need of Defendant Colorado to traverse the Gas Pipeline Easements with Heavy Equipment, Plaintiff United States, Defendant Colorado, Defendant Northwest Pipeline Corporation and Defendant MidAmerica Pipeline Company, LLC, have jointly identified five (5) specific locations on the Gas Pipeline Easements at which Defendant Colorado may traverse the Gas Pipeline Easements with Heavy Equipment. 44. Each of the five (5) locations on the Gas Pipeline Easements at which Defendant Colorado may traverse the Gas Pipeline Easements have been jointly evaluated by Plaintiff United States, Defendant Colorado, Defendant Northwest Pipeline Corporation, and Defendant Mid-America Pipeline Company, LLC, and traversing mitigation measures have been identified and developed. 45. The traversing mitigation measures consist of the Gas Pipeline Easements Crossing Protocols and a monetary component.

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46. Plaintiff United States, Defendant Colorado, Defendant Northwest Pipeline Corporation, and Defendant Mid-America Pipeline Company, LLC, have jointly developed and agreed to the Gas Pipeline Easements Crossing Protocols that establish the process and procedures to be followed when traversing the Gas Pipeline Easements with Heavy Equipment and/or Light Trucks. 47. The five (5) locations on the Gas Pipeline Easements at which Defendant Colorado may traverse the Gas Pipeline Easements with Heavy Equipment are specifically identified and described in the Gas Pipeline Easements Crossing Protocols. 48. The Gas Pipeline Easements Crossing Protocols are attached hereto as Attachment 2 and incorporated herein. The Gas Pipeline Easements Crossing Protocols also identify the specific locations of the five crossing points. See, Attachment 2, Exhibit 2A. 49. Plaintiff United States, Defendant Colorado, Defendant Northwest Pipeline Corporation and Defendant Mid-America Pipeline Company, LLC, recognize and agree that conditions along the entire length of the Gas Pipeline Easements may change over time. 50. Plaintiff United States, Defendant Colorado, Defendant Northwest Pipeline Corporation and Defendant Mid-America Pipeline Company, LLC, recognize and agree that conditions at each of the five (5) locations identified in the Gas Pipeline Easements Crossing Protocols may change over time for a variety of reasons.

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51. In recognition of the uniqueness of each of the five (5) locations identified in the Gas Pipeline Easements Crossing Protocols, Plaintiff United States, Defendant Colorado, Defendant Northwest Pipeline Corporation and Defendant Mid-America Pipeline Company, LLC, recognize and agree that Defendant Northwest Pipeline Corporation and/or Defendant Mid-America Pipeline Company, LLC, must evaluate the characteristics of the Heavy Equipment and the characteristics of the specific locations identified in the Gas Pipeline Easements Crossing Protocols prior to the Heavy Equipment traversing the Gas Pipeline Easements. 52. Prior to Defendant Colorado traversing the Gas Pipeline Easements, Defendant Colorado stipulates and agrees to comply with the Gas Pipeline Easements Crossing Protocols. 53. The monetary component of the traversing mitigation measures is addressed in this Stipulated Settlement Agreement and compensates Defendant Colorado for potential future expenditures related to the cost of increasing the cover material over crossing points 1, 3, and 4 as identified in the Gas Pipeline Easements Crossing Protocols to a minimum depth of eight (8) feet. E. II. Traversing The Final Ridges Basin Inlet Conduit Easement 54. Plaintiff United States and Defendant Colorado jointly agree that Defendant Colorado may traverse the Final Ridges Basin Inlet Conduit Easement with Light Trucks on an intermittent basis at any location along the Final Ridges Basin Inlet Conduit

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Easement assuming that the cover over the Ridges Basin Inlet Conduit has remained at the as-constructed depth. 55. In order to accommodate the anticipated need of Defendant Colorado to traverse over the Final Ridges Basin Inlet Conduit Easement with Heavy Equipment, Plaintiff United States and Defendant Colorado have jointly identified four (4) specific locations on the Final Ridges Basin Inlet Conduit Easement at which Defendant Colorado may traverse over the Final Ridges Basin Inlet Conduit Easement with Light Trucks and Heavy Equipment. 56. The Bureau of Reclamation shall design and construct, to at least an HS20 Standard, each of the four (4) identified crossing locations on the Final Ridges Basin Inlet Conduit Easement at which Defendant Colorado may traverse over the Final Ridges Basin Inlet Conduit Easement with Light Trucks and Heavy Equipment. 57. Plaintiff United States and Defendant Colorado have jointly developed and agreed to the Ridges Basin Inlet Conduit Easement Crossing Protocols that establish the process and procedures to be followed when traversing over the Final Ridges Basin Inlet Conduit Easement with Light Trucks and Heavy Equipment. 58. The Ridges Basin Inlet Conduit Easement Crossing Protocols are attached hereto as Attachment 3 and incorporated herein. The Ridges Basin Inlet Conduit Easement Crossing Protocols also identify the specific locations of the four crossing points. See, Attachment 3, Exhibit 3A.

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59. Plaintiff United States and Defendant Colorado stipulate and agree, that after the construction of the above-ground power line(s) within the Final Ridges Basin Inlet Conduit Easement, Plaintiff United States and Defendant Colorado shall develop additional protocols that will establish the process and procedures to be followed when Defendant Colorado crosses under the said above-ground power line(s). 60. The said additional protocols shall be supplements to the Ridges Basin Inlet Conduit Easement Crossing Protocols. F. Release And Revestment Of Certain Perpetual Easements 61. The Easement Property contained, in part, the First Ridges Basin Inlet Conduit Easement consisting of 45.45 acres, more or less. 62. In order to accommodate various design refinements in the Ridges Basin Inlet Conduit, the perpetual easement contained in the First Ridges Basin Inlet Conduit Easement was realigned and a new legal description was prepared for the amended Parcel RBR-12C(P) as described in the Third Amended Schedule B and delineated in the map in the Third Amended Schedule C attached to the Third Amended Declaration of Taking. 63. On May 1, 2006, Plaintiff United States filed a Third Amended Complaint in Condemnation and a Third Amended Declaration of Taking that condemned, in part, the realigned and amended Parcel RBR-12C(P), i.e., the Final Ridges Basin Inlet Conduit Easement.

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64. The Final Ridges Basin Inlet Conduit Easement consists of 47.61 acres, more or less. 65. As a result of the realignment of the First Ridges Basin Inlet Conduit Easement, four (4) small perpetual easement areas within the First Ridges Basin Inlet Conduit Easement are no longer required for the inclusion in the Final Ridges Basin Inlet Conduit Easement and are no longer needed for the Animas-La Plata Project. 66. The four (4) small excess parcels consist of 9.84 acres, more or less, and are designated Parcel RBR-12CX1(P), Parcel RBR-12CX2(P), Parcel RBR-12CX3(P), and Parcel RBR-12CX4(P) in the map attached hereto as Attachment 4. 67. The perpetual easements on, over, under, and across Parcel RBR12CX1(P), Parcel RBR-12CX2(P), Parcel RBR-12CX3(P), and Parcel RBR-12CX4(P) are unnecessary for the purposes of the Final Ridges Basin Inlet Conduit Easement and for the purposes of the Animas-La Plata Project. 68. The Bureau of Reclamation has determined that the perpetual easements on, over, under, and across Parcel RBR-12CX1(P), Parcel RBR-12CX2(P), Parcel RBR-12CX3(P), and Parcel RBR-12CX4(P) should be released and revested to Defendant Colorado. 69. Defendant Colorado consents to the release and revestment of the perpetual easements on, over, under, and across Parcel RBR-12CX1(P), Parcel RBR12CX2(P), Parcel RBR-12CX3(P), and Parcel RBR-12CX4(P).

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70. Plaintiff United States and Defendant Colorado stipulate and agree that Parcel RBR-12CX1(P), Parcel RBR-12CX2(P), Parcel RBR-12CX3(P), and Parcel RBR-12CX4(P) are not within the realigned and amended Parcel RBR-12C(P), i.e., the Final Ridges Basin Inlet Conduit Easement, and shall be removed from the First Ridges Basin Inlet Conduit Easement. 71. Plaintiff United States and Defendant Colorado stipulate and agree that the perpetual easements on, over, under, and across Parcel RBR-12CX1(P), Parcel RBR12CX2(P), Parcel RBR-12CX3(P), and Parcel RBR-12CX4(P) shall be released and revested to Defendant Colorado. 72. Plaintiff United States and Defendant Colorado stipulate and agree that Plaintiff United States shall execute a Stipulated Revestment of Certain Easements Condemned by Plaintiff United States of America revesting and releasing the perpetual easements on, over, under, and across Parcel RBR-12CX1(P), Parcel RBR-12CX2(P), Parcel RBR-12CX3(P), and Parcel RBR-12CX4(P) to Defendant Colorado within ninety (90) days following the filing of this Stipulated Settlement Agreement. 73. Plaintiff United States and Defendant Colorado stipulate and agree that the Stipulated Revestment of Certain Perpetual Easements Condemned by Plaintiff United States of America and the proposed Order shall be in the form similar to Attachment 5 attached hereto.

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74. Plaintiff United States and Defendant Colorado stipulate and agree that no just compensation is due and owing in reference to the perpetual easements on, over, under, and across Parcel RBR-12CX1(P), Parcel RBR-12CX2(P), Parcel RBR12CX3(P), and Parcel RBR-12CX4(P). G. As-Built Drawings 75. Plaintiff United States agrees and acknowledges, that in order to successfully manage the underlying fee uses of the Third Amended Easement Property, Defendant Colorado requires knowledge and understanding of the scope of the facilities and uses encumbering the Perpetual Easements on, over, under, and across the Third Amended Easement Property. 76. In recognition of Defendant Colorado's management requirements for the underlying fee uses of the Third Amended Easement Property, Plaintiff United States agrees to and shall provide the As-Built Drawings for the Gas Pipelines and the Gas Pipeline Easements to Defendant Colorado within ninety (90) days following the filing of this Stipulated Settlement Agreement. 77. In recognition of Defendant Colorado's management requirements for the underlying fee uses of the Third Amended Easement Property, Plaintiff United States agrees to and shall provide the As-Built Drawings for the Ridges Basin Inlet Conduit to Defendant Colorado within ninety (90) days after the completion of the Ridges Basin Inlet Conduit.

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78. Defendant Colorado stipulates and agrees that the As-Built Drawings contain sensitive information relating to the national security. 79. Defendant Colorado stipulates and agrees to protect the As-Built Drawings and the information contained therein from inappropriate disclosure pursuant to the terms and conditions of the Protective Order. H. Improved Basin Creek Crossing 80. Plaintiff United States, through the Bureau of Reclamation, shall construct the Improved Basin Creek Crossing. I. Maintenance Of The Improved Basin Creek Crossing And The Drop Structure 4 Basin Creek Crossing 81. Plaintiff United States, through the Bureau of Reclamation, its agents, assigns, and/or contractors, shall maintain the Improved Basin Creek Crossing and the Drop Structure 4 Basin Creek Crossing as features of the Animas-La Plata Project. J. Maintenance Of Section 6 Of The Relocated Easement 82. Defendant Colorado stipulates and agrees that Plaintiff United States has no responsibility to maintain, and that Defendant Colorado has the responsibility to maintain, Section 6 of the Relocated Easement, if any such maintenance is desired by Defendant Colorado. K. Enforcement Of This Stipulated Settlement Agreement 83. Plaintiff United States reserves the right to file a civil action to enforce the terms and conditions of this Stipulated Settlement Agreement.

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84. Defendant Colorado reserves the right to file a civil action to enforce the terms and conditions of this Stipulated Settlement Agreement. L. Other Provisions 85. Each party shall bear its own attorneys' fees, costs, and expenses. 86. This Stipulated Settlement Agreement shall not be considered consummated and shall be of no force and effect until filed with the Court.

TROY A. EID United States Attorney

JOHN W. SUTHERS Attorney General State of Colorado

s/Stephen D. Taylor STEPHEN D. TAYLOR Assistant U.S. Attorney 1225 Seventeenth Street Suite 700 Denver, CO 80202 Telephone: (303) 454-0100 Fax: (303) 454-0408 E-Mail: [email protected]

s/Timothy J. Monahan TIMOTHY J. MONAHAN Assistant Attorney General Natural Resources 1525 Sherman Street 5th Floor Denver, CO 80203 Telephone: (303) 866-5861 Fax: (303) 866-3558 E-Mail: [email protected]

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UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO CERTIFICATE OF SERVICE (CM/ECF) I hereby certify that on February 9, 2007, l electronically filed the foregoing with the Clerk of Court using the ECF system which will send notification of such filing to the following e-mail addresses: TIMOTHY J. MONAHAN, ESQ. KAREN BRODY, ESQ. JOHN BARLOW SPEAR, ESQ. MICHAEL GOLDMAN, ESQ. TODD MILLER, ESQ. OSBORNE J. DYKES, III, ESQ. THOMAS J. DOUGHERTY, III, ESQ. [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

and I hereby certify that I have mailed or served the document or paper to the following non CM/ECF participants in the manner indicated by the nonparticipant's name: By mail, postage prepaid Teresa Silcox Torrey, Esq. 295 Chipeta W ay Salt Lake City, UT 84108 Mr. Ken Ouellette Bureau of Reclamation U.S. Department of the Interior 835 East Second Street, Suite 300 Durango, CO 81301 35

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s/ Stephen D. Taylor STEPHEN D. TAYLOR Assistant United States Attorney 1225 17th Street, 7th Floor Denver, CO 80202 Telephone: (303) 454-0100 Fax: (303) 454-0408 E-Mail: [email protected]

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