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HomeMy WebLinkAboutR07-075 McNulty Ranch Purchase Commissioner ~L-.l'-f Oc:.-moved adoption of the following resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO RESOLUTION NO. 2007-n~ RESOLUTION APPROVING APPROPRIATION FOR McNULTY RANCH PURCHASE, CLOSING DOCUMENTS RELATED TO PURCHASE, AND OTHER AGREEMENTS AND AUTHORIZING ANY OF THE EAGLE COUNTY COMMISSIONERS TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE THE CLOSING OF THE McNULTY CONSERVATION EASEMENT PURCHASE WHEREAS, 0.Q~u...\.~.\ \<J ,2007 the Board of County Commissioners of Eagle County, Colorado ("Board") conaitionally approved a total contribution (in two installments) of one million nine hundred twenty six thousand five hundred forty dollars ($1,926,540) for 466 acres located in Eagle County, to be closed in two installments, from the Eagle County Open Space Fund towards the acquisition of the McNulty Ranch Conservation Easement to be held in perpetuity by the Aspen Valley Land Trust; and WHEREAS, the conditions of approval called for staff and Board review of relevant documents; and WHEREAS, staff and the Board have been presented with drafts of the McNulty Ranch Deed of Conservation Easement and Exhibits A through D thereto, entitled Property Legal Description (Exhibit A), Map of Property (Exhibit B), Baseline Documentation Summary and Water Rights (Exhibit C), and Land Title Guarantee Company Commitment Policy (Exhibit D); and WHEREAS, 243 acres for the amount of one million four thousand five hundred sixty two ($1,004,562) be in the year 2007 and considered the first installment; and WHEREAS, 223 acres for the amount of nine hundred twenty one thousand, nine hundred seventy eight ($921,978) be in the year 2008 and considered the second and final installment; and WHEREAS, staff has had an opportunity to review these documents and is satisfied with the legal sufficiency of the same; and WHEREAS, the Board wishes to ensure that all relevant documents are timely signed by the County to facilitate the closing of the McNulty Ranch Conservation Easement purchase. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT, the Board has been presented with the relevant documents associated with the Bair Ranch Conservation Easement purchase. THAT, the Board hereby approves the McNulty Ranch Deed of Conservation Easement, and Exhibits A through C thereto-easements entitled Property Legal Description, Map of Property, Baseline Documentation Summary and Water Rights. THAT, the Board hereby approves the Land Title Guarantee Company Commitment Policy, Exhibit D to the McNulty Ranch Deed of Conservation Easement. THAT, the Board authorizes any Commissioner to execute on its behalf any and all necessary documents, instruments, papers or other forms necessary for the consummation of the purchase of the McNulty Ranch Conservation Easement. Such documents may include, but shall not be limited to, the documents identified herein, power of attorney authorization, management report approval, closing authorization and instructions, settlement statements, easement monitoring agreement, as well as any other necessary documents which in the opinion of staff are required or desirable. THEREFORE, the Board of County Commissioners finds, determines and declares that this Resolution is necessary for the public health, safety and welfare of the citizens of the County of Eagle, State of Colorado. MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held this _lO 1 U- day of ~L~ , 2007. COUNTY OF EAGLE, STATE OF COLORADO By and Through its Board of County Commissioners ATTEST: - ~?l Clerk of the Board of County Commissioners ~"~K..Nr.. By: By: Commissioner KSU-tJz- seconded adoption ofthe foregoing resolution. The roll having been called, the vote w as follows: Commissioner Am M Menconi Commissioner Sara J Fisher Commissioner Peter F. Runyon This Resolution passed by ~ / () vote of the Board of County Commissioners of the County of Eagle, State of Colorado. Return to: Aspen Valley Land Trust 320 Main Street, Suite 204 Carbondale, CO 81623 970-963-8440 NOTICE TO TITLE COMPANY: This Deed of Conservation Easement in gross requires a half of one percent (0.5%) fee be paid to Aspen Valley Land Trust or its successor organization by purchaser, transferee or recipient upon purchase of this Property or any portion of this Property or any lot located on this Property, pursuant to Section 15 herein. DEED OF CONSERVATION EASEMENT IN GROSS MCNULTY RANCH - EAGLE COUNTY THIS CONSERVATION EASEMENT IN GROSS ("Easement") is granted by DEED ("Easement Deed") this lli day of ~ 2007, by FREEMAN CATTLE CREEK LLLP, a Colorado limited liability limited phrtnership having an address at 7747 County Road 100 Carbondale, CO 81623 and QUARTER CIRCLE EIGHT LLLP, a Colorado limited liability limited partnership having an address at 7747 County Road 100, Carbondale CO 81623 ("Grantor"), to and for the benefit of ASPEN VALLEY LAND TRUST, a Colorado nonprofit corporation having offices at 320 Main Street, Suite 204, Carbondale, Colorado 81623 (the "Trust")(collectively, the "Parties"). The following exhibits are attached hereto: Exhibit A: Property Legal Description, Exhibit B: Map of Property, Exhibit C: Baseline Documentation Summary, Exhibit D: Water Rights; RECITALS WHEREAS, Grantor is the sole owner in fee simple of approximately 243 acres of real property along Upper Cattle Creek on Missouri Heights in Eagle County, State of Colorado, more particularly described in Exhibit A, together with certain Water Rights described in Exhibit D, attached hereto and made a part hereof (the "Property"). The term "Property" shall hereinafter be defined as the land and water rights combined, and the term "Water Rights" shall refer to the water rights alone; WHEREAS, the Property possesses natural, scenic, open space (including agricultural), and wildlife values (collectively, "Conservation Values") of importance to the Trust, the people of Eagle and Garfield Counties, and the people of the State of Colorado that are worthy of preservation; WHEREAS, in particular, according to Section 170(h)( 4)(A) of the Internal Revenue Code and Section 1.170A-14(d) of the Treasury Regulations, the conservation values of a qualified conservation contribution may be for one or more of the following: to preserve land for outdoor recreation by or education of the general public; to protect relatively natural habitat of fish, wildlife or plants; to preserve open space; and to preserve historically important land or structures. WHEREAS, the Conservation Values of the Property include Relatively Natural Habitat, Open Space, and Scenic values as stated above as further described below: . Relatively Natural Habitat [~1.170A-14(d)(3)]. The Property contains wetlands, riparian areas, and native plant communities that provide food, shelter, breeding ground, and migration corridors for several wildlife species. Cattle Creek serves as natural habitat for several bird species, including the . . ., The habitat on the Property is also "significant" as required by the Treasury Regulations, as it likely provides habitat to a number of bat species including Townsend's big-eared bat which is considered imperiled or very rare in Colorado by the Colorado Natural Heritage Program and is listed as a Species of Concern by the State of Colorado. The plant communities on the Property are in excellent condition and consist of hay fields and three native plant communities; Gambel Oak - Alderleaf Mountain-mahogany / Geyer's Sedge Shrubland; Narrowleaf Cottonwood / Thinleaf Alder Riparian Woodland; and Gambel Oak / Sagebrush Shrub land. The Property provides habitat for numerous songbirds that depend on the varied habitat types as well as red-tailed hawk, great horned owls and wild turkeys. The Property provides important deer and elk winter range and elk severe winter range and is situated within a broad elk migration pattern. Predators such as American badger, bobcats, coyotes, long-tailed weasel, golden eagles, and mountain lions are all known to occur on the Property. Black bears are often seen on and around the Ranch. . Open Space [~1.170A-14(d)(4)]. The Property qualifies as open space because it will be preserved for the scenic enjoyment of the general public and will yield a significant public benefit. 2 o Scenic Enjoyment. The Property adds to the scenic character of the local rural landscape in which it lies, contains a harmonious variety of shapes and textures, and provides a degree of openness, contrast and variety to the overall landscape. A large portion of the Property is visually accessible to the general public from Upper Cattle creek Road and the public recreation lands on and around Basalt Mountain, which are open to and actively used by residents of Garfield and Eagle Counties and the State of Colorado. In particular, the Property contains a lush riparian corridor, irrigated hayfields, sagebrush meadows, and mountain shrub lands that are part of a harmonious western ranching setting. The terms of the Easement do not permit a degree of intrusion or future development that would interfere with the essential scenic quality of the land. o Agriculture. The Property is currently used for agricultural purposes including irrigated crop production and cattle grazing. This use is compatible with other land use in the vicinity, as adjacent properties are also used for agricultural production. o Significant Public Benefit. The Property is located in a rural, agricultural area of Eagle County, where there is a trend of intense development in the vicinity of the Property. The Towns of EI Jebel and Carbondale lie approximately ten miles south east and southwest of the Property. Development of the Property would contribute to degradation of the scenic and natural character of the area. Preservation of the Property will continue to provide an opportunity for the general public to appreciate its scenic values, as described above. WHEREAS, conservation of the Property will increase the amount of conserved land on Missouri Heights, an area currently identified by Eagle County and the Trust as a high priority for protection and where the Trust currently preserves over 725 acres of agricultural land and wildlife habitat including the Quarter Circle Eight Ranch, Strang Ranch, Central Ranch and the Ranch at Coulter Creek conservation easements; WHEREAS, conservation of the Property IS promoted by the following. local governmental policies including the Eagle County Comprehensive Plan of 2006 which states in Goal 3.3.5 that "Agricultural land uses should be retained to preserve Eagle County's historical heritage and scenic quality for the benefit of future generations" and furthermore that "The presence of working ranches with pastures, fences, grazing livestock and clustered agricultural 3 buildings, provides a connection for people to Eagle County's cultural heritage, and helps preserve the open spaces, scenic quality and wildlife habitat considered precious by locals, second homeowners, and tourists." Finally, the policy explains that "[t]he use of Conservation Easements should also be utilized to encourage landowners to sell the development rights from their land while retaining ownership and full rights to ranch or farm for profit"; WHEREAS, conservation of the Property is further promoted by the Colorado Division of Wildlife's (CDOW) Wildlife Conservation Section Briefing Paper, dated March 3, 2005, "Needs for Habitat Protection of Colorado's Sagebrush Communities," which states: Sagebrush communities are among the most important wildlife habitats in North America.... In Colorado, no fewer than 12 species of importance are linked to the sagebrush communities as a key component of their habitat. Concern has been raised regarding the influence of deteriorating sagebrush communities on pronghorn and mule deer, and the relationship between elk and mule deer in sagebrush communities.... Clearly, given the species, and the number and diversity of species, whose well-being is so closely tied to sagebrush communities, protecting and managing these habitats will go far in meeting 2 of the Wildlife Commission's top priorities from its Strategic Plan (2002): "Protect high priority deer and elk habitat" (H 1.3), and "Habitat to support broadest sustainable wildlife populations" (SI.I). The Division has long demonstrated its interest in sagebrush habitats, with numerous projects initiated for various objectives....; WHEREAS the Trust acknowledges and agrees that continued use of the land for agricultural production does not impair or interfere with the Conservation Values of the Property; WHEREAS, Grantor intends, as owner ofthe Property, to convey to the Trust the right to preserve and protect the Conservation Values of the Property in perpetuity and the Trust agrees by accepting this grant to honor the intentions of Grantor stated herein and to preserve and protect in perpetuity the Conservation Values of the Property for the benefit of this generation and the generations to come; WHEREAS, the Trust is a charitable organization as described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") and is a publicly-supported organization as described in Section 170(b)(1)(A) of the Code whose primary purpose is to preserve and protect the natural, scenic, agricultural, historical, and open space resources of the greater Roaring Fork Valley area, including the area in which the Property is located, by assisting landowners who wish to protect their land in perpetuity, and is a "qualified organization" to do so within the meaning of Section 170(h)(3) of the Code; 4 WHEREAS, the State of Colorado has recognized the importance of private efforts toward the preservation of natural systems in the State by the enactment ofC.R.S. 9938-30.5-101 et seq.; and WHEREAS, the Board of Directors of the Trust has duly authorized the Trust's Executive Director or her designee to execute and accept conservation easements on behalf of the Trust. NOW, THEREFORE, in consideration of the matters above, the mutual covenants, terms, conditions and restrictions contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. Grant. Grantor hereby voluntarily and irrevocably grants and conveys to the Trust a perpetual Conservation Easement in gross (the "Easement"), pursuant to C.R.S. SS 38-30.5-101 et seq., through the terms mutually agreed to in this Deed of Conservation Easement in gross ("Easement Deed"), consisting of the rights and restrictions enumerated herein, over and across the Property, to hold said Easement unto the Trust and its successors and assigns forever. The Easement shall constitute a binding servitude upon the Property and shall be subject to prior reservations, easements, encumbrances and exceptions of record, except as otherwise set forth herein. 2. Purposes. Pursuant to the terms ofC.R.S. SS 38-30.5-101 et seq., the purposes of the Easement are to assure that the Property will remain forever predominantly in its scenic, natural and open space (including agricultural) condition, subject to the uses of the Property permitted hereunder, to protect and preserve the Conservation Values of the Property in perpetuity, to prevent any use of the Property that is inconsistent with the preservation and protection of the Conservation Values of the Property and, in the event of their degradation or destruction, to restore such Conservation Values of the Property. 3. Intent. Subject only to the Purposes set forth above and express prohibitions below, the intent of the Parties is to permit all uses of the Property that are consistent with the preservation and protection of the Property's Conservation Values as determined by the Trust in its sole discretion. Nothing in this Easement Deed is intended to compel a specific use of the Property other than the preservation and protection of the Conservation Values. 4. Baseline Documentation. The Parties acknowledge that a Baseline Documentation of the Conservation Values and relevant features of the Property has been prepared by Wildlife 5 Conservation Solutions, LLC (formerly Wildlife & Wetlands Solutions, Inc.), a company familiar with conservation easements, the Property, and the environs that is dated December 19, 2005, and updated November 2006, that is on file with the Parties. The Trust and Grantor have reviewed and approved the Baseline Documentation, as summarized in Exhibit C, herein (Baseline Documentation Summary), as an accurate representation of the condition of the Property at the time of this grant. The Parties agree that the Baseline Documentation is not intended to preclude the use of other evidence to establish the present condition of the Property should a controversy arise over its use. 5. Rights of the Trust. To accomplish the purposes of the Easement, Grantor conveys the following rights to the Trust: 5.1. The right to preserve and protect the Conservation Values of the Property in perpetuity; 5.2. The right to enter upon the Property at reasonable times, to inspect the Property thoroughly, to monitor Grantor's compliance with, and otherwise enforce the terms of this Easement Deed; provided that such entry shall be upon 72-hour prior notice to Grantor and shall not unreasonably interfere with Grantor's use and quiet enjoyment of the Property, except that no such notice shall be required in the event the Trust reasonably believes that immediate entry upon the Property is essential to prevent or mitigate a violation of the Easement; 5.3. The right to prevent any activity on or use of the Property that is inconsistent with the purposes of the Easement, or with the preservation and protection of the Conservation Values of the Property, and the right to require the restoration of such areas or features of the Property that are damaged by any inconsistent activity or use; and 5.4. Any other rights that the Parties may approve consistent with the purposes of the Easement and the Conservation Values (i.e., habitat or other enhancement projects, right to identify conservation values of the property, or right to conduct scientific studies). 6. Prohibited and Permitted Uses. Grantor reserves to itself and to its personal representatives, heirs, successors, and assigns, all rights and obligations accruing from its ownership of the Property, including the right to engage in all uses of the Property not expressly prohibited herein that are consistent with the preservation and protection of the Conservation Values of the Property. Grantor is prohibited from any activity on or use of the Property inconsistent with the preservation and protection of the Conservation Values. 6 The following uses and practices by Grantor, though not an exhaustive recital, are either consistent with and permitted, or inconsistent with and prohibited by this Easement Deed. Expressly permitted uses are to be conducted in a manner consistent with the preservation and protection of the Conservation Values of the Property, pursuant to Section 170(h)(3) of the Code, and C.R.S. S 38-30.5-102. Certain of these consistent uses and practices are identified as being subject to specified conditions, such as to the notice provision described in Section 9, or to the requirement of and procedures for prior approval by the Trust described in Section 10, or to both. Uses not described here as expressly permitted or prohibited are guided by Section 10 herein. 6.1. Building Rights.. Grantor shall not construct, improve, place, or replace any buildings, structures, mobile homes, indoor riding arenas, parking lots, boat ramps, or billboards on the Property, except as follows: A. Residences. Grantor has the right to construct, replace, repair and maintain one (1) single-family residence(s) and associated residential structures, including one (1) Accessory Dwelling Unit (ADU) [need definition of what these are], garages and sheds, within a five (5) acre Building Envelope, the location of which must be consistent with the preservation and protection of the wildlife and scenic Conservation Values of the Property. To that end, Grantor agrees to seek the Trust's prior approval for the location of the Building Envelope, which approval shall not be unreasonably withheld provided the Building Envelope is located at least 100 feet from Cattle Creek. Grantor agrees to survey the approved location, with a copy provided to the Trust, prior to the commencement of construction activities within the Building Envelope, and to work with the Trust to record the surveyed Building Envelope location. Grantor has the right to erect temporary shelters, such as yurts or tents, for seasonal use at any location on the Property. B. Agricultural Structures. Grantor retains the right to construct, replace, expand, and maintain both existing and additional structures for agricultural purposes on the Property (such as hay sheds or loafing sheds), provided all such covered structures located outside of the Building Envelopes do not exceed 6,000 square feet in combined area, and are not used for residential purposes. 6.2. Agricultural Uses. Grantor retains the right to maintain, convert and expand agricultural operations on the Property in a manner consistent with the preservation and protection of the Conservation Values on the Property and sound environmental practices. Raising poultry and a small fish farm operation limited to no more than 2,000 square feet, shall 7 be considered to be an agricultural operation. Grantor retains the right to lease lands with appurtenant Water Rights for agricultural purposes as approved herein. High-inten~ity agricultural uses and grazing on dry pasture lands shall be conducted in a manner consistent with sound management practices as determined by the Natural Resource Conservation Service (NRCS) or its successor organization. The terms and conditions of this Easement are intended to ensure that the Property remain available for agricultural or livestock production, or both, in accordance with Section 170(b)(1)(E)(iv) of the Code. Agricultural uses prohibited by this Easement include 1) commercial feed lots, defined as confined areas or facilities for purposes of extended feeding and finishing of large numbers of livestock for hire; 2) tree farms, and 3) sod farms. 6.3. Reversion to Wildlife Habitat. If agricultural operations cease in the future, Grantor agrees to reseed any heavily disturbed areas with appropriate native vegetation to prevent the spread of noxious weeds and to provide forage and habitat for wildlife. The Parties agree that agricultural operations may resume any time thereafter; 6.4. Roads and Motor Vehicles. Grantor shall not pave existing roadways or construct new roadways without the consent of the Trust, which consent shall be given in the Trust's sole discretion, except as permitted in previously executed agreements and as necessary for use permitted in Subsection 6.1 and 6.2, herein. Grantor may construct approved roadways using material from the Property including sand, gravel, and rock, pursuant to subsection 6.7 herein; 6.5. Fencing. Grantor may replace existing fences or erect new fencing on the Property, or both, provided such fencing complies with then-current Colorado Division of Wildlife standards for fencing in a wildlife migration area, except as necessary for agricultural operations, and then in a manner that permits the flow of wildlife as much as possible; 6.6. Mineral Rights. At the time of granting the Easement, Grantor owns only a portion of the mineral rights associated with the Property. For this reason, a mineral remoteness letter dated December 9, 2005 has been completed by Rare Earth Science in compliance with Section 170(h) of the Internal Revenue Code and related Treasury Regulations, a copy of which is on file with the Trust. Grantor's current or future ownership of mineral rights shall be subject to the following provisions. A. Subsurface Mineral Rights. Grantor's commercial mining or extraction of soil, sand, gravel, coal, oil, natural gas, fuel, or any other mineral substance, using any surface 8 mining method is prohibited. Grantor shall not sell, transfer or otherwise separate Grantor's share of the subsurface mineral rights to oil or natural gas from the Property. The Grantor may lease to a third party the right to explore for or extract oil and gas from below the surface of the Property; provided, that such extraction is not accomplished by any surface mining method and the method of extraction has a limited, localized impact on the real property that is not irremediably destructive of the Conservation Values of the Property, and provided further that the proposed extraction will not diminish or impair or be inconsistent with the preservation and protection of the Conservation Values of the Property. No extraction permitted pursuant to this paragraph shall occur without prior written notice to Grantee, which notice shall include a description of the type of extraction, the areas within which such extraction shall occur, and the anticipated impact thereof. Any lease or surface use agreement by Grantor to a third party of mineral rights subsequent to the date of recording of this Easement Deed shall be subject to these restrictions and shall so state, shall contain terms consistent with the provisions of this Easement Deed, and, a copy of the same shall be provided to Grantee for Grantee's review; Grantor shall reference this Easement and summarize the Property's Conservation Values in any and all future oil and gas leases, surface use agreements, or no-surface occupancy agreements affecting the Property. B. Surface Mineral Rights. Grantor shall not transfer, lease or otherwise separate the soil, sand, gravel, rock, or any other mineral substance from the surface of the Property nor explore for or extract soil, sand, gravel, rock, or other minerals from the surface of the Property. 6.7. Surface Disturbance. Except as permitted within this Easement Deed in conjunction with permitted uses such as road improvement per subsection 6.4 herein, or stream, pond, or lake bank stabilization per subsection 6.9 herein, and not to exceed one-half acre (1/2 acre) of disturbed land at anyone time, any alteration of the surface of the land, including without limitation, the movement, excavation or removal of soil, sand, gravel, rock, peat or sod, that is inconsistent with the preservation and protection of the Conservation Values and Section 170(h) of the Code and 1.170A-14 of the Treasury Regulations adopted pursuant thereto, is prohibited. 6.8 Subdivision. Grantor may not divide or subdivide (including de facto subdivision) 9 the Property into more than two parcels of land without the approval of the Trust. 6.9 Trash. Grantor shall not dump, permanently accumulate, or dispose of trash, garbage, or other hazardous or unsightly refuse on the Property, except for agricultural by- products and vegetative matter produced or used on the Property; 6.10 Water Resources. Unless undertaken pursuant to a permit issued by the Army Corps of Engineers or other governmental agency with jurisdiction and with the Trust's prior consent, Grantor shall not manipulate, divert, dam, pollute, drain, dredge, or otherwise alter the naturally-occurring streams, wetlands, springs, lakes, ponds, or other surface or subsurface water features on the Property in a manner that degrades or destabilizes their natural banks or shorelines, or otherwise is inconsistent with the preservation and protection of the Conservation Values of the Property, except that Grantor retains the right to construct and maintain agricultural ditches, stock ponds or other agricultural improvements without further permission from the Trust if such construction and maintenance is in compliance with local, state, and federal rules and regulations, and Grantor is permitted to stabilize stream, pond, or lake banks with materials from the Property such as soil, sand, gravel, rock, or sod, pursuant to subsection 6.6.5 herein; 6.11 CommerCial and Industrial Activities. Grantor shall not conduct industrial activity or any more than de minimis commercial recreational activity on the Property; 6.12 Recreation. Passive, non-motorized recreational uses are permitted on the Property, including but not limited to, hiking, cross country skiing, horseback riding, mountain biking, hunting and fishing. Golf courses and other active, high-impact recreational amenities such as hard surface trails or riding arenas are prohibited on the Property; 6.13 Utilities and Communications Facilities. As necessary to the uses permitted in Subsection 6.1 and 6.2, and provided that the location and use of the following described amenities is consistent with preservation and protection of the scenic and wildlife Conservation Values of the Property, Grantor may install, maintain and use on the Property the following: (a) communication facilities and appurtenant structures or equipment; (b) utility lines; (c) water lines, pumps and wells; (d) wind-powered electric generators, solar collectors, fuel cells, and other technology. Any impact from the installation and maintenance of such amenities to the Property or its Conservation Values shall be restored as closely as possible to the Property's original condition; 10 6.14 Hunting. Hunting and the leasing of hunting rights on the Property is permitted; 6 .15 Water Rights. A. Water Rights Included. The Property includes all of Grantor's rights, title and interest in the Water Rights described in Exhibit D attached hereto and incorporated herein by reference. Grantor shall have the right to continue historic use of the Water Rights on the Property in order to protect and preserve the Property's Conservation Values. To this end, Grantor shall have the right to improve, maintain, repair, relocate and reconstruct facilities related to the Water Rights (such as ditches, wells and reservoirs ); B. Restrictions on Water Rights. The Water Rights may not: (i) be changed to or used for municipal, industrial, or commercial uses, as defined by Colorado law; (ii) be changed for use off of the Property; (iii) be sold, leased, or encumbered separately from the Property or legally separated from the Property; or (iv) have changed their points of diversion, or their type or place of use within the Property and on Grantor's adjoining property, known as "McNulty Ranch", except pursuant to a legally-recognized interruptible supply contract, fallowing agreement, emergency water loan, or similar agreement to temporarily increase instream flows in Cattle Creek, or by application to the water court for changes in points of diversion or augmentation plans necessary solely to support agricultural use of the Property. Water Rights may be used for other activities on the Property that are not prohibited by the terms of this Easement Deed, aftera written determination by the Trust that such changes are consistent with the preservation and protection of the Conservation Values, and do not create an intent to abandon; C. Protection of Water Rights. If Grantor fails to maintain the historic use of the Water Rights, or the Water Rights are otherwise subject to a threat of abandonment, the Trust shall have the right, but not the obligation, to enter upon the Property and undertake any and all actions reasonably necessary to continue the use of the historic Water Rights, including, after 90 days written notice to Grantor, seeking to change the Water Rights to another beneficial use approved by the Trust and permitted under this Easement Deed; and D. Effect of Loss. No loss of Water Rights through injury or abandonment, or conversion of the Water Rights as set forth above, shall be considered a severance of the 11 title to the Water Rights from the Property for federal or state tax or other purposes, or as basis for extinguishment of this Easement. 7. Access. By terms of this Easement Deed, Grantor does not afford the public any more than visual access to any portion of the Property, although Grantor may permit public access to the Property on such terms and conditions as it deems appropriate, provided that such access is consistent with the terms of this Easement Deed. 8. Representations and Warranties. Grantor represents and warrants that, after reasonable investigation and to the best of its knowledge: 8.1. Exc~pt for fuels customarily used or transported in connection with agricultural and construction activities, no substance defined, listed, or otherwise classified pursuant to any federal, state, or local law, regulation, or requirement as hazardous, toxic, polluting, or otherwise or threatening to human health or the environment exists or has been used or released on the Property; 8.2. There are not now any underground storage tanks located on the Property, and no underground storage tanks have been removed from the Property in a manner not in compliance with applicable laws, regulations, and requirements; 8.3. Grantor and the Property are in compliance with all federal, state, and local laws, regulations, and requirements applicable to the Property and its use and there are no existing, pending or threatened litigation in any way affecting, involving, or relating to the Property; 8.4. Grantor has good and sufficient title to the Property and has lawful authority to grant and convey the Easement, that any mortgages or liens on the Property are subordinate to the terms of this Easement Deed, and that Grantor shall warrant and forever defend the title to the Easement against all and every person or persons lawfully claiming by, through or under Grantor, the whole or any part thereof, except for rights-of-way, easements, restrictions, covenants, mineral reservations of record, or fence encroachments. 9. Notice of Intention to Undertake Certain Permitted Actions. The purpose of requiring Grantor to notify the Trust before undertaking certain permitted activities or uses is to afford the Trust an opportunity to update its records and if approval is required, to ensure that the activities or uses in question are consistent with the terms of this Easement Deed. Whenever notice and the Trust's approval, as described in Section 10 below, are required, Grantor shall 12 notify the Trust in writing not less than 60 days prior to the date Grantor intends to undertake the activity or use in question, unless this Easement Deed provides otherwise, and describe the nature, scope, design, location, timetable, and any other material aspect of the proposed activity or use in sufficient detail to permit the Trust to make an informed judgment as to the activity or use's consistency with the terms of this Easement Deed and the preservation and protection of the Property's Conservation Values. Whenever notice is required without the Trust's approval, Grantor shall notify the Trust in writing not less than 30 days in advance of the proposed activity or use. 10. The Trust's Approval. Whenever this Easement Deed requires that Grantor obtain the Trust's approval of any activity on or use of the Property, such approval shall be given in the Trust's sole discretion. Grantor has the burden to prove that Grantor's proposed uses are consistent with the preservation and protection of the Conservation Values of the Property. Where the Trust's approval is required, the Trust shall grant or withhold its approval in writing within 30 days of receipt of Grantor's written notice (as described in Section 9, above) of and request therefor. The Trust's approval may be withheld at the Trust's sole discretion if the Trust determines that the action as proposed would be inconsistent with the Conservation Values or the purposes or terms of this Easement or Easement Deed. The reason(s) for such a determination shall be set forth with specificity by the Trust in a written notice to Grantor. Where a modification of the proposed use or activity by Grantor would render the same consistent with the purposes of the Easement and the Conservation Values, the Trust may specify, in such written notice to Grantor, such modifications to render approval appropriate. 11. Trust's Remedies: Enforcement. The Trust shall have the right to prevent and correct or require correction of violations of the terms and purposes of this Easement or Easement Deed. If the Trust finds what it believes is a violation, or a threat of a violation, the Trust shall notify Grantor of the nature of the alleged violation. Upon receipt of this notice, Grantor shall immediately discontinue any activity that could increase or expand the alleged violation and shall either: (1) restore the Property within 60 days as is best possible to its condition prior to the violation in accordance with a plan approved by the Trust, or if immediate restoration is not possible, Grantor shall submit such plan to the Trust within 60 days; or (2) provide a written explanation to the Trust of the reason why the alleged violation should be permitted. If the Trust is not satisfied with Grantor's written explanation, the Parties agree to meet as soon as possible to resolve this difference. If a resolution of this difference cannot be achieved at the meeting, the Parties agree to attempt to resolve the dispute pursuant to Section 11.1, below. 13 At any time, including if Grantor does not immediately discontinue any activity that could increase or expand the alleged violation while the Parties are attempting. to resolve the alleged violation, the Trust may take appropriate legal action to stop the activity, without prior notice to Grantor; without waiting for the period provided for cure to expire; and without waiting for the 60-day mediation period to expire. The Trust may bring an action at law or in equity, ex parte as necessary, in a court of jurisdiction, to enforce the terms of this Easement Deed and to enjoin by temporary or permanent injunction a violation, which may require restoration of the Property to the condition that existed prior to the violation. The Trust's remedies described herein shall be in addition to all remedies now or hereafter existing at law or in equity, and shall include the right to recover damages for violation of the terms of this Easement Deed or injury to the Conservation Values including damages for the loss of scenic or environmental values. With the exception of the obligation to consult below, enforcement of the terms of this Easement Deed shall be at the sole discretion of the Trust, and any forbearance by the Trust to exercise its rights under this Easement Deed in the event of any breach of any term of this Easement Deed by Grantor shall not be deemed or construed to be a waiver by the Trust of such term or any subsequent breach of the same or any other term of this Easement Deed or of any of the Trust's rights under this Easement Deed. Before determining to forbear from enforcement of the terms of this Easement Deed as to any violation thereof that has come to the attention of the Trust, the Trust will consult with the representative of the Eagle County Community Development Department at the time assigned to the Eagle County Open Space Committee to give Eagle County the opportunity to express its views concerning such determination. No delay or omission by the Trust in the exercise of any right or remedy upon any breach by Grantor shall impair such right or remedy or be construed as a waiver. The failure of the Trust to discover a violation or to take immediate legal action shall not bar the Trust from doing so within four (4) years from the date upon which the violation is discovered. All reasonable costs incurred by the Trust in enforcing the terms of this Easement Deed, including, without limitation, costs and expenses of pursuing legal action and reasonable attorney's fees, and any costs of restoration necessitated by Grantor's violation of the terms of this Easement Deed, shall be borne by Grantor, unless a court finds that the Trust acted in bad faith in seeking enforcement thereof, in which case the court shall award to Grantor and the Trust shall pay Grantor's reasonable costs of defending the action or claim. If Grantor ultimately prevails in a judicial enforcement action, the court shall award to Grantor and the Trust shall pay, Grantor's reasonable costs incurred in asserting or defending the action or claim pursuant to 14 Colorado Rules of Civil Procedure 54( d), including reasonable attorney fees. 11.1. Mediation. If a dispute arises between the Parties concerning the consistency of any proposed use or activity with the terms of this Easement Deed, and Grantor agrees not to proceed with the use or activity pending resolution of the dispute, either Party may refer the dispute to mediation by written request upon the other. Within 10 days of the receipt of such request, the Parties shall select a trained and impartial mediator with experience in easements and other land preservation tools. If the Parties are unable to agree on a mediator, then the Parties shall each select a mediator with experience in conservation easements and other land preservation tools, and those two mediators shall select a mediator who shall alone mediate the dispute. Mediation shall then proceed in accordance with the following guidelines: A. Purpose. The purpose of the mediation is to: (i) promote discussion between the Parties; (ii) assist the Parties to develop and exchange pertinent information concerning the issues in dispute; and (iii) assist the Parties to develop proposals which will enable them to arrive at a mutually acceptable resolution of the controversy. The mediation is not intended to result in any express or de facto modification or amendment of the terms, conditions, or restrictions of this Easement Deed; B. Participation. The mediator may meet with the Parties and their counsel jointly or ex parte. The Parties agree that they will participate in the mediation process in good faith and expeditiously, except in cases when the Trust believes that Conservation Values are continuing to be harmed during the mediation process, in which case the Trust can suspend its involvement in the mediation to remedy this threat of ongoing violation. Representatives of the Parties with settlement authority will attend mediation sessions as required by the mediator; C. Confidentiality. All information presented to the mediator shall be deemed confidential and shall be disclosed by the mediator only with the consent of the Parties or their respective counsel. The mediator shall not be subject to subpoena by any Party in any subsequent litigation; D. Time Period. Neither Party shall be obligated to continue the mediation process beyond a period of 60 days from the date of receipt of the initial request or if the mediator concludes that there is no reasonable likelihood that continuing mediation will result in a mutually agreeable resolution of the dispute. The Parties shall equally share and each 15 bear 50% of the mediator's fees. 12. Costs, Liabilities, Taxes and Environmental Compliance. 12.1. Costs, Legal Requirements and Liabilities. Grantor retains all responsibilities and obligations and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Property, including the maintenance of adequate liability insurance coverage, except as provided herein. Grantor shall keep the Property free of any liens arising out of any work performed for, materials furnished to, or obligations incurred by Grantor. Nothing in this Easement Deed shall be construed or interpreted as prohibiting Grantor from obtaining loans secured by deeds of trust encumbering the Property, provided any such deeds of trust are subordinate to this Easement Deed, and shall encumber the entire Property; 12.2. Control. Nothing in this Grant shall be construed as giving rise, in the absence of a judicial decree, to any right or ability in the Trust to exercise physical or managerial control over the day-to-day operations of the Property, or any of Grantor's activities on the Property, or otherwise to become an operator with respect to the Property within the meaning of The Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (CERCLA), and any Colorado state law counterpart; 12.3. Hold Harmless. Grantor shall hold harmless, indemnify and defend the Trust and its members, directors, officers, employees, agents, and contractors and the heirs, personal representatives, successors, and assigns of each of them (collectively, the "Trust Parties") from and against all liabilities, including, without limitation, court awarded third-party attorneys' fees, arising from or in any way connected with: (a) injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property, regardless of cause, unless due solely to the negligence of any of the Trust Parties; (b) the violation or alleged violation of, or other failure to comply with, any state, federal, or local law, regulation, or requirement, including, without limitation, CERCLA, by any person other than any of the Trust Parties, in any way affecting, involving, or relating to the Property; (c) the presence or release of hazardous or toxic substances in, on, from, or under the Property at any time, of any substance now or hereafter defined, listed, or otherwise classified pursuant to any federal, state, or local law, regulation, or requirement as hazardous, toxic, polluting, or otherwise contaminating to the air, water, or soil, or in any way harmful or threatening to human health or the environment, unless caused solely by any of the Trust Parties; (d) payment of taxes imposed upon or incurred by the Property as a result of this Easement, 16 including property taxes and the sale of income tax credits acquired as a result of this Easement (e) tax benefits or consequences of any kind which result or do not result from entering into this Easement Deed; and (f) the obligations, covenants, representations, and warranties described herein; 12.4. Waiver of Certain Defenses. No action shall be commenced or maintained to enforce the terms of any building restriction described in this Easement Deed, or to compel the removal of any building or improvement, unless said action is commenced within four (4) years from the date of discovery of the violation for which the action is sought to be brought or maintained. To the extent that any defense available to Grantor pursuant to C.R.S. S38-41-119 is inconsistent with the foregoing, Grantor waives that defense. Grantor waives the defenses of laches, estoppel and prescription with regard to the enforcement of all other terms of this Easement Deed; 12.5. Acts Beyond Grantor's Control. Nothing contained in this Easement Deed shall be construed to entitle the Trust to bring any action against Grantor for any injury to or change in the Property resulting from causes beyond Grantor's control or from any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Property resulting from such causes. Grantor is not responsible for acts of third parties not authorized to access the Property, and is responsible for any third parties, including guests or invitees, authorized by Grantor to access the Property. 13. Extinguishment and Condemnation. 13.1. Extinguishment. The Parties agree that any changes in the economic viability of the uses permitted or prohibited by this Easement Deed, or changes to neighboring land and its use shall not be deemed circumstances justifying the termination or extinguishment of the Easement. In addition, the inability of Grantor, or Grantor's heirs, successors or assigns, to implement any or all of the uses permitted under this Easement Deed shall not impair the validity of the Easement or this Easement Deed, or be considered grounds for termination or extinguishment of this Easement. If circumstances arise in the future that render the purposes of this Easement impossible to accomplish, the Easement can only be terminated or extinguished, in whole or in part, by judicial proceedings in a court of competent jurisdiction after the court has explored all options for importing other purposes for the Easement pursuant to the cy pres doctrine. Each Party shall 17 promptly notify the other when it first learns of such circumstances. The amount of the proceeds to which the Trust shall be entitled, after the satisfaction of prior claims, from any sale, exchange, or involuntary conversion of all or any portion of the Property subsequent to such termination, shall be determined, unless otherwise provided by Colorado law at the time, in accordance with the Proceeds paragraph below; 13.2. Condemnation. If all or any part of the Property is taken by exercise of the power of eminent domain or acquired by purchase in lieu of condemnation, whether by public, corporate, or other authority, so as to terminate the Easement in whole or in part, Grantor and the Trust shall act jointly to recover the full value of the interests in the Property subject to the taking or in-lieu purchase and all damages resulting therefrom. All expenses reasonably incurred by Grantor and the Trust in connection with the taking or in-lieu purchase shall be paid out of the amount recovered. The Trust's share of the balance of the amount recovered shall be determined by multiplying that balance by the percentage set forth in Proceeds paragraph below; 13.3. Proceeds. Grantor and the Trust stipulate that as of the date of this Easement Deed, they are each vested with a real property interest in the Property. The Parties further stipulate that the Trust's interest in the Easement has a value of2!Lpercent (%) of the fair market value of the Property from this date forward, and such percentage interest shall remain constant in relation to any future fair market value of the Property. Such percentage interest shall be used only for determining the Trust's proportion of proceeds from any payment of damages or action resulting from circumstances described in the Extinguishment and Condemnation paragraphs above. The Parties agree that the value of any improvements to the Property made by Grantor after the date of this Easement Deed is reserved to Grantor. The Parties further agree that to the extent possible, any proceeds paid to the Trust as a result of this Section shall be used exclusively for purposes of restoration or enhancement of the Conservation Values on the Property. If it is not possible to use all of the Trust's proceeds in this manner, such as if the entire Property is condemned or Easement terminated, the Trust may elect to apply its proceeds to another purpose within its mission. 14. Assignment. In the event the Trust is no longer able to carry out its duties and obligations under this Easement Deed, or if circumstances change so that another similar organization is better able to carry out such duties and obligations, the Trust may elect to transfer the Easement and assign its rights and obligations under the Easement Deed to Colorado Cattlemen's Agricultural Land Trust (CCALT), and if CCALT is unable, unavailable, or unwilling to accept the Easement created by this Easement Deed, then, with prior notice given to 18 and consultation with Grantor, to an organization that is: (a) a qualified organization at the time of transfer under Section 170(h) of the Internal Revenue Code of 1986, as amended (or any successor provision then applicable), and the applicable regulations promulgated thereunder; and (b) authorized to acquire and hold conservation easements under Colorado law. As a condition of such transfer, the Trust shall require the transferee to expressly agree, in writing, to carry out and uphold the purposes of the Easement and the Conservation Values and otherwise assume all of the obligations and liabilities of the Trust set forth herein or created hereby. If the original Grantor, Sarah L. McNulty or her children still own the Property at the time of such proposed transfer, the Trust shall obtain the Grantor's approval of the transferee, which approval shall not be unreasonably withheld. After such transfer, the Trust shall have no further obligation or liability under this Easement Deed. Grantee shall notify and consult with Grantor in advance of any proposed transfer, at which time Grantor may voice any concerns as to any such proposed transfer. 15. Subsequent Transfers. Grantor agrees to notify any party who may purchase, lease, or otherwise hold interest in this Property of the existence and terms of this Easement Deed, and to provide a copy of the Easement Deed and the Baseline Documentation to such party if requested. Grantor further agrees to give notice to the Trust of the transfer of any such interest prior to transfer, and provide the opportunity for the Trust to explain the terms of this Deed to potential new owners prior to sale closing. In addition, at any time Grantor transfers a lot on the Property to anyone other than Grantor's family, heirs or beneficiaries, that party shall pay a transfer fee of one half of one percent (0.5%) of the purchase price to the Trust to cover administrative costs associated with the transfer as well as put the Third Party Purchaser on notice of the terms of this Easement Deed. The failure of Grantor to perform any act required by this paragraph shall not impair the validity of this Easement or Easement Deed or limit enforceability of either in any way. 15 .1 Upon any initial sale and each subsequent resale of a lot on the Property (excluding gifts, sales or transfers of such land to the direct descendents of Sarah L. McNulty (original Grantor), and transfers by court order or by Will or intestacy), the Property's purchaser or recipient shall pay to the Trust, or such successor organization as exists at the time of transfer, an amount of one half of one percent (0.5% or gross sales price times 0.005) ofthe gross sales price in order that the Trust may continue to steward the Property and enforce the Easement in perpetuity. The contribution is to be paid directly to the Trust at the time of sale or transfer. If the contribution is not paid to the Trust at the time of sale or transfer as provided herein, the 19 unpaid amount shall bear interest at the rate of eighteen percent (18%) per annum from the date of sale or transfer until paid in full, and shall constitute the personal obligation ofthe Property's purchaser/owner or recipient, and shall be a lien and security interest on the title to the Property which may be foreclosed by the Trust in the same manner as a mortgage on real property. The Property's delinquent purchaser/owner or recipient shall also be responsible for costs and attorneys' fees incurred by the Trust in collecting said unpaid contribution, whether by efforts short of collection action or foreclosure, or judicial collection or foreclosure action. 16. Notices. Any communication that either Party desires or is required to give to the other shall be in writing and served personally or sent by first class mail, postage prepaid, addressed as follows or to such other address as either party from time to time shall designate by written notice to the other: To Grantor: Quarter Circle Eight LLP and Freeman Cattle Creek LLP c/o Sarah L. McNulty 7747 County Road 100 Carbondale CO, 81623 To the Trust: Aspen Valley Land Trust 320 Main Street, Suite 204 Carbondale, CO 81623 17. Recordation. The Trust shall record this instrument in timely fashion in the official records of Eagle County, Colorado and may re-record it at any time as may be required to preserve its rights in this Easement and Easement Deed. 18. Amendment. If circumstances arise under which an amendment to this Easement Deed would be appropriate to promote the purposes of the Easement, Grantor and the Trust may jointly amend this Easement Deed. However, the Trust is under no obligation to amend this Easement Deed, and may decline any amendment in its sole discretion and exclusive judgment. Any amendment must be consistent with, and protect and preserve, the purposes of the Easement and the Conservation Values and may not affect the Easement's perpetual duration. Any amendment must be in writing, signed by all the Parties, and recorded in the records of the Clerk and Recorder of the appropriate Colorado County. Correction deeds to correct factual mistakes or typographical or clerical errors may be made at the discretion of the Trust. No amendment shall be allowed that affects the qualification of this Easement or the status of the Trust under any applicable laws, including C.R.S. Section 38-30.5-101, et seq., or Section 170(h) of the Code or 20 any regulations promulgated thereunder. No amendment shall be permitted that will confer a private benefit to Grantor or any other individual or entity (see IRS Reg. 1.170A-14(h)(3)(i)) greater than the benefit to the general public, or that will result in private inurement to a Board member, staff or contract employee of the Trust (see IRS Reg. 1.501(c)(3)-I(c)(2)). 19. Subordination. The Property is not subject to any mortgages or liens. 20. General Provisions. 20.1. Exhibits. The following Exhibits are attached to and incorporated by reference into this Easement Deed: Exhibit A: Property Legal Description, Exhibit B: Map of Property, Exhibit c: Baseline Documentation Summary, Exhibit D: Water Rights; 20.2. Definitions. The terms "Grantor" and "the Trust," wherever used herein, and any pronouns used in place of those terms, shall refer to, respectively, Grantor and its heirs, personal representatives, executors, administrators, successors and assigns, and the Trust, its successors and assigns. The term "Property," wherever used herein, shall refer to the land described in Exhibit A and water rights combined. The term "Water Rights," wherever used herein, shall refer to the water rights alone, as described in Exhibit D. The terms "Easement" and "Conservation Easement in gross" refer to the immediately vested interest in real property defined by Colorado Revised Statutes SS 38-30.5-101 et seq. The term "Easement Deed" refers to this legal document, consisting of the rights and restrictions enumerated herein, by which said Easement is granted; 20.3. Controlling Law. The interpretation and performance of this Easement and Easement Deed shall be governed by the laws of the State of Colorado; 20.4. Liberal Construction. This Easement Deed shall be liberally construed in favor of the grant to effect the purposes of the Easement and the policy and purpose of C.R.S. S38-30.5- 101 et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with ensuring continuation of the purposes of the Easement and the preservation and protection of the Conservation Values that would render the provision valid shall be favored over any interpretation that would render it invalid. The common law rules of disfavoring restrictions on the use of real property and construing restrictions in favor of the free and unrestricted use of 21 real property shall not apply to interpretations of this Easement Deed or to disputes between the Parties concerning the meaning of particular provisions of this Easement Deed; 20.5. Severability. If any provision of this Easement Deed, or the application thereof to any person or circumstance, is found to be invalid, the remainder of the provisions of this Easement Deed shall be deemed severable and remain in full force and effect; 20.6. Entire Agreement. This instrument sets forth the entire agreement between the Parties with respect to the Easement Deed and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Easement Deed, all of which are merged herein; 20.7. No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor's title in any respect; 20.8. Joint Obligation. The obligations imposed by this Easement Deed upon Grantor shall be joint and several (in the event that there is more than one Grantor); 20.9. Successors. The covenants, terms, conditions, and restrictions of this Easement Deed shall be binding upon, and inure to the benefit of, the Parties hereto and Grantor's respective personal representatives, heirs, successors, transferees, and assigns, and the Trust's successors, transferees, and assigns, and shall continue as a servitude running in perpetuity with the Property; 20.10. Termination of Rights and Obligations. A Party's rights and obligations under this Easement Deed terminate upon transfer of the Party's interest in the Easement or the Property, except that liability for acts or omissions occurring prior to transfer shall survive transfer; 20.11. Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation; 20.12. Counterparts. The Parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by all the Parties; each counterpart shall be deemed an original instrument as against any Party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling; 20.13. Merger. Unless the Parties expressly state that they intend a merger of estates or interests to occur, no merger shall be deemed to have occurred hereunder or under any document 22 executed in the future affecting this Easement or this Easement Deed; 20.14. Acceptance of Gift. The Trust acknowledges receipt and acceptance of this Easement encumbering the Property described herein, for which the Grantor was paid the bargain price of $ ; and 20.15. Development Rights. Grantor hereby grants to the Trust all development rights associated with the Property except as specifically reserved herein for the .limited purpose of ensuring that such rights are forever terminated and extinguished, and may not be used by Grantor, the Trust, or any other party. 23 IN WITNESS WHEREOF, Grantor and the Trust have executed this Deed of Conservation Easement as of the date first written above. GRANTORS Quarter Circle 8 LLLP, a Colorado Limited Liability Partnership By: Sarah L. McNulty, Manager STATE OF COLORADO ) ) 55. COUNTY OF ) The foregoing instrument was acknowledged before me this 2007, by Sarah L. McNulty as Manager of Quarter Circle 8 Colorado Limited Liability Partnership, as Grantor. day of LLLP, a WITNESS my hand and official seal. [SEAL] Notary Public My commission expires: 24 Freeman Cattle Creek LLLP, a Colorado Limited Liability Partnership Sarah L. McNulty, Manager STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2007, by Sarah L. McNulty as Manager of Freeman Cattle Creek LLLP, a Colorado Limited Liability Partnership, as Grantor. WITNESS my hand and official seal. [SEAL] Notary Public My commission expires: 25 ACCEPTED by the TRUST: ASPEN VALLEY LAND TRUST, a Colorado nonprofit corporation, By: Shannon Meyer, Associate Director STATE OF COLORADO ) ) 55. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 2007, by Shannon Meyer, Associate Director of ASPEN VALLEY LAND TRUST, a Colorado nonprofit corporation. WITNESS my hand and official seal. [SEAL] Notary Public My commission expires: 26 EXHIBIT A Legal Description of Property PARCEL 1: PART OF LOTS 1. 8. AND 11). IN SECTION 9. To\VNSHJP 1 SOUTH. RANGE 8& WEST OF nm 6TH P.M.. DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAlD LOT 10. \IJ'HENCE THE NORTHEAST COlmER OF Sl\lD SECTION 9 BEARS N.6'1 n3"\I/.. 3656.32 FT.: THENCE N.O'48' lI"E.. 1011.54 FT.: THENCE N.11'04 '00" Vi.. 31.66 FT.: THENCE S. 85'53'15" 'IV.. liO.OO FT.: THENCEN. WH'28"W..1H.38FT.: THENCEN. 02'13'15' W.. 53.01 FT.: THENCE N. 31~07'39' 'IV.. 23.55 FT.: THENCE N. 50"21'45" W.. n.8& FT.: THENCE N. OT'4)'49" \1/.. 39.91 E<T.: THENCE N. 70'34'45" W.. 36.83 FT.: THENCE N. 5'02'52" W.. 30.83 FT.: THENCE N. 31"18'28" \1/..18.54 FT.: THENCE N&1'58'00" W.. 51.&.) FT.: THENCE N. 65'13'.;}3" \hi.. 177.89 FT.: THENCE N. 80' 12'W' W.. 85.25 FT.: THENCE N. 50"22'51" '.v.. lO2.95 FT.: THENCE N. 12'34'41' w.. &1.2[' FT.: THENCE S. 65~I7'39' \ov., 119.42 FT.: THENCE N. 51r44' 16" W.. 104.14 FT.: THENCE N. 3rz4'lG" '.v.. 91.10 FT.: THENCE N. 80'43'54" W.. 48.17 FT.: THENCE S. 00'00'00" W.. IGI'U3 FT.: THENCE S. 8fnJ9'Z3" E.. 1186.65 FT.: MORE Ol~ LESS. TO THE POINT OFBEGINNING. AND PARCEL :2 A PORTION OF LOTS 7. 8. AND 10. SECTION 9. TOWNSHIP BEARS N. 23<41 '23' E.. 3')49.t.g FT.: THENCE N.. 1&10.73 FL THENCE N. 80"00'54" ',v.. 108.07 FT.: THENCE WEST. 820.54 Fr... THENCE S. ]0)23.34 FT.: TIlENCE S. 8[f'I)!)'23" E.. 936.30 FT.. MORE OR LESS. TO THE POINT OF BEGINNING. AND PARCEL 3: AU OF LOT 1 LYING SOUTH OF THE NORTH BANK OF CATTLE CREEK AND HIE NORTI1 FIVE (5) ACRES OF LOT 2. ALL IN SECTION 10. AND PARCEL 4: NEl/4S','di4 OF SECTION 10. AND PARCEL 5: LOT 13 AND THE EAST THREE (3) ACRES OF LOT H. ALL IN SECTION 9. AND PARCEL 1]: Al.L OF LOT 0 L'{ING SOUTH OF THE NORTH BANK OF CATTLE CREEK. LOT 14 AND 15. LESS THE EAST THREE i.3) ACRES OF LOT 14. AtL IN SEcnON 9. ALL COliNTY OF EAGLE. STATE OF COLORADO. 27 EXHIBIT B e McNulty Conservation Easement 28 Dote:JJIy3.2007 Use of this map should be furg ene.. I and inbrrrational purposes only. Eagle Countv does not winant 1I1e 3ccuracyofthe data con13ined herein. EXHIBIT C Baseline Documentation Summary The primary purpose of the conservation easement is to preserve, in perpetuity, the following conservation elements: . Plant communities. For the most part, the plant commumtIes on the Ranch are in excellent condition. The dominant plant community on the conservation easement is hay fields. These fields are in excellent condition and consist primarily of crested wheatgrass, orchard grass, smooth brome, and timothy. The native plant communities on the easement can be divided into three ecological communities: (1) Gambel Oak - Alderleaf Mountain-mahogany I Geyer's Sedge Shrubland; (2) Narrowleaf Cottonwood I Thinleaf Alder Riparian Woodland; and (3) Gambel Oak / Sagebrush Shrubland. In addition, a few small aspen stands occur in at the mouths of northeast running draws on the western edge of the Ranch. . Wildlife Habitat. Conservation of this property will ensure the long-term protection of habitat for a variety of wildlife. Numerous songbirds that depend on grassland habitat (e.g., vesper sparrow, savannah sparrow, mountain bluebird), mountain and sagebrush shrubland habitat (e.g., Brewer's sparrow, dusky flycatcher, plumbeous vireo, spotted towhee, and Virginia's warbler), montane riparian habitat (e.g., American dipper, song sparrow, and yellow warbler), as well as aspen habitat (e.g., MacGillivray's warbler, red- naped sapsucker, warbling vireo, orange-crowned warbler) were identified on the Ranch during the site assessment. Red-tailed hawks nest on the easement and wild turkeys are known to occur. While mule deer occur year-round, Rocky Mountain elk can be found on the Property throughout the fall, winter, and spring and only occasionally in the summer. The Property is provides important deer and elk winter range and elk severe winter range and is situated within a broad elk migration pattern. Predators such as American badger, bobcats, coyotes, long-tailed weasel, golden eagles, and mountain lions are all known to occur on the Ranch. Black bears are often seen on and around the Ranch. In addition, great-horned owls nest within the easement and 3 additional species of owl may occur on the Ranch. The property also likely provides habitat to a number of bat species including Townsend's big-eared bat which is considered imperiled or very rare in Colorado by the Colorado Natural Heritage Program and is listed as a Species of Concern by the State of Colorado. . Scenic and Open Space. Open space is increasingly being lost to exurb an sprawl in the Missouri Heights area. Each year ranches are being sold and developed as residential "ranchettes." Protection of this conservation easement will preserve an important viewshed and open space asset in the Cattle Creek watershed. The Property is visually appreciated by numerous recreationists that use Cattle Creek Road to access trails on US Forest Service lands upstream and on Basalt Mountain. 29 Water Rights The "Water Rights" include, without limitation, all of the Grantor's right, title and interests in any and all water and water rights beneficially used on the Property, and all canals, ditches, laterals, head gates, springs, ponds, reservoirs, water allotments, water shares and stock certificates, contracts, units, wells, easements and rights of way, and irrigation equipment associated therewith. The Water Rights include surface water rights and groundwater rights, whether tributary or nontributary, decreed or undecreed. 30 I;;^n II;U I i: i~ ~ land Title Land Title Guarantee Company CUSTOMER DISTRIBUTION (jUAR....NTE[ COI\U'.Q"NY Date: 05-25-2007 Our Order Number: V50019323 Property Address: PART OF LOTS 7, 8, AND 10, SECTION 9, T7S, R87W; A PORTION OF LOTS 7, 8, AND 10; ALL OF LOT 1 LYING SOUTH OF THE NORTH BANK OF CATTLE CREEK AND THE NORTH FIVE If you have any inquiries or require further assistance, please contact one of the numbers below: For Title Assistance: Vail Title Dept. Chris McElvany 108 S FRONTAGE RD W #203 VAIL, CO 81657 Phone: 970-476-2251 Fax: 970-476-4732 EMail: cmcelvany@ltgc.com ASPEN VALLEY LAND TRUST 320 MAIN ST CARBONDALE, CO 81623 Phone: 970-963-8440 Fax: 970-963-8441 EMail: shannon@av!t.org ~ land lltle (jUAR.'\NTE[ COMP.'\NY Land Title Guarantee Company Date: 05-25-2007 Our Order Number: V50019323 Property Address: PART OF LOTS 7, 8, AND 10, SECTION 9, T7S, R87W; A PORTION OF LOTS 7, 8, AND 10; ALL OF LOT 1 LYING SOUTH OF THE NORTH BANK OF CATTLE CREEK AND THE NORTH FIVE Buyer/Borrower: A BUYER TO BE DETERMINED Seller/Owner: QUARTER CIRCLE 8 LLLP, A COLORADO LIMITED LIABILITY LIMITED PARTNERSHIP; AS TO PARCELS 1 AND 2 AND FREEMAN CATTLE CREEK LLLP, A COLORADO LIMITED LIABILITY LIMITED PARTNERSHIP; AS TO PARCELS 3,4,5, AND 6 Need a map or directions for your upcoming closing? Check out Land Title's web site at www.ltgc.com for directions to any of our 54 office locations. ESTIMATE OF TITLE FEES TBD Commitment $250.00 If Land Tit~e Guarantee Company wil~ be c1..osing this transaction, above fees wil~ be collected at that time. TOTAL $250.00 Form CONTACT 06/04 THANK YOU FOR YOUR ORDER! ~ Land Title (jUAR...'NTEE CO~1I'ANY LAND TITLE GUARANTEE COMPANY INVOICE Owner: QUARTER CIRCLE 8 LLLP, A COLORADO LIMITED LIABILITY LIMITED PARTNERSHIP; AS TO PARCELS 1 AND 2 AND FREEMAN CATTLE CREEK LLLP, A Property Address: PART OF LOTS 7, 8, AND 10, SECTION 9, T7S, R87W; A PORTION OF LOTS 7, 8, AND 10; ALL OF LOT 1 LYING SOUTH OF THE NORTH BANK OF CATTLE CRIIEK Your Reference No.: When referring to this order, please reference our Order No. V50019323 - CHARGES - TBD Commitment $250.00 n Total-- $250.00 Please make checks payable to: Land Title Guarantee Company P.O. Box 5440 Denver, CO 80217 Chicago Title Insurance Company ALTA COMMITMENT Our Order No. V50019323 Schedule A Cust. Ref.: Property Address: PART OF LOTS 7, 8, AND 10, SECTION 9, T7S, R87W; A PORTION OF LOTS 7,8, AND 10; ALL OF LOT 1 LYING SOUTH OF THE NORTH BANK OF CATILE CREEK AND THE NORTH FIVE 1. Effective Date: May 09, 2007 at 5:00 P.M. 2. Policy to be Issued, and Proposed Insured: "TED" Commitment $1,000,000.00 Proposed Insured: A BUYER TO BE DETERMINED 3. The estate or interest in the land described or referred to in this Commitment and covered herein is: A Fee Simple 4. Title to the estate or interest covered herein is at the effective date hereof vested in: QUARTER CIRCLE 8 LLLP, A COLORADO LIMITED LIABILITY LIMITED PARTNERSHIP; AS TO PARCELS 1 AND 2 AND FREEMAN CATTLE CREEK LLLP, A COLORADO LIMITED LIABILITY LIMITED PARTNERSHIP; AS TO PARCELS 3, 4, 5, AND 6 5. The land referred to in this Commitment is described as follows: SEE ATTACHED PAGE(S) FOR LEGAL DESCRIPTION Our Order No: V50019323 LEGAL DESCRIPTION *************************************************************** NOTE: THE FOLLOWING LEGAL DESCRIPTION IS PRELIMINARY AND IS SUBJECT TO CHANGE UPON COMPLIANCE WITH THE REQUIREMENTS UNDER SCHEDULE B-1, HEREIN. *************************************************************** PARCEL 1: PART OF LOTS 7, 8, AND 10, IN SECTION 9, TOWNSHIP 7 SOUTH, RANGE 86 WEST OF THE 6TH P.M., DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 10, WHENCE THE NORTHEAST CORNER OF SAID SECTION 9 BEARS N.6017'13"W., 3656.32 FT.; THENCE N.0048'11"E., 1011.54 FT.; THENCE N.77004'09" W., 31.66 FT.: THENCE S. 85053'15" W., 170.09 FT.; THENCE N. 75044'28" W., 144.38 FT.; THENCE N. 02013'15" W., 53.07 FT.; THENCE N. 31007'39" W., 23.55 FT.; THENCE N. 59021'45" W., 92.86 FT.; THENCE N. 07045'49" W., 39.91 FT.; THENCE N. 76034'45" W., 36.83 FT.; THENCE N. 5002'52" W., 30.83 FT.; THENCE N. 31 ~18'28" W., 78.54 FT.; THENCE N6r58'00" W., 57.65 FT.; THENCE N. 65013'08" W., 177.89 FT.; THENCE N. 89012'06" W., 85.25 FT.; THENCE N. 50022'51" W., 102.95 FT.; THENCE N. 12034'47" W., 67.29 FT.; THENCE S. 65017'39" W., 119.42 FT.; THENCE N. 50044'16" W., 104.74 FT.; THENCE N. 33024'16" W., 91.10 FT.; THENCE N. 80043'54" W., 48.17 FT.; THENCE S. 00000'00" W., 1619.73 FT.; THENCE S. 89009'23" E., 1186.65 FT.; MORE OR LESS, TO THE POINT OF BEGINNING. AND PARCEL :2 A PORTION OF LOTS 7, 8, AND 10, SECTION 9. TOWNSHIP BEARS N. 23041'23" E., 3949.68 FT.; THENCE N., 1619.73 FT,; THENCE N. 80009'54" W., 108.07 FT.; THENCE WEST, 829.54 FT.; THENCE S. 1623.34 FT.; THENCE S. 89009'23" E., 936.30 FT., MORE OR LESS, TO THE POINT OF BEGINNING. AND PARCEL 3: ALL OF LOT 1 LYING SOUTH OF THE NORTH BANK OF CATTLE CREEK AND THE NORTH FIVE (5) ACRES OF LOT 2, ALL IN SECTION 10. AND PARCEL 4: NE1/4SW1/4 OF SECTION 10. AND PARCEL 5: LOT 13 AND THE EAST THREE (3) ACRES OF LOT 14, ALL IN SECT10N 9. AND PARCEL 6: Our Order No: V50019323 LEGAL DESCRIPTION ALL OF LOT 9 LYING SOUTH OF THE NORTH BANK OF CATTLE CREEK, LOT 14 AND 15, LESS THE EAST THREE (3) ACRES OF LOT 14, ALL IN SECTION 9. ALL COUNTY OF EAGLE, STATE OF COLORADO. ALTA COMMITMENT Schedule B - Section 1 (Requirements) Our Order No. V50019323 The following are the requirements to be complied with: Item (a) Payment to or for the account of the grantors or mortgagors of the full consideration for the estate or interest to be insured. Item (b) Proper instrument(s) creating the estate or interest to be insured must be executed and duly filed for record, to-wit: Item (c) Payment of all taxes, charges or assessments levied and assessed against the subject premises which are due and payable. Item (d) Additional requirements, if any disclosed below: NOTE: THE COMPANY RESERVES THE RIGHT TO MODIFY THE OWNER'S COVERAGE UPON RECEIPT OF THE BUYER'S INFORMATION. 1. PROVIDE LAND TITLE GUARANTEE COMPANY WITH A CURRENT SURVEY OF SUBJECT PROPERTY. THIS REQUIREMENT IS NECESSARY FOR THE DELETION OF STANDARD EXCEPTIONS 1-3 AND/OR TO DETERMINE PROPERTY BOUNDS. UPON REVIEW, ADDITIONAL REQUIREMENTS AND/OR EXCEPTIONS MAY BE NECESSARY. NOTE: ANY MATTERS DISCLOSED BY SAID SURVEY WILL BE REFLECTED ON SAID POLICY(S) TO BE ISSUED HEREUNDER. NOTE: LAND TITLE IS NOT RESPONSIBLE FOR ORDERING SAID SURVEY. 2. WARRANTY DEED FROM QUARTER CIRCLE 8 LLLP, A COLORADO LIMITED LIABILITY LIMITED PARTNERSHIP; AS TO PARCELS 1 AND 2 AND FREEMAN CATTLE CREEK LLLP, A COLORADO LIMITED LIABILITY LIMITED PARTNERSHIP; AS TO PARCELS 3, 4, 5, AND 6 TO A BUYER TO BE DETERMINED CONVEYING SUBJECT PROPERTY. ALTA COMMITMENT Schedule B - Section 2 (Exceptions) Our Order No. V50019323 The policy or policies to be issued will contain exceptions to the following unless the same are disposed of to the satisfaction of the Company: 1. Rights or claims of parties in possession not shown by the public records. 2. Easements, or claims of easements, not shown by the public records. 3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a correct survey and inspection of the premises would disclose and which are not shown by the public records. 4. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Defects, liens encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgage thereon covered by this Commitment. 6. Taxes or special assessments which are not shown as existing liens by the public records.o the Treasurer's office. 7. Liens for unpaid water and sewer charges, if any. . 8. In addition, the owner's policy will be subject to the mortgage, if any, noted in Section 1 of Schedule B hereof. 9. RIGHT OF WAY FOR DITCHES OR CANALS CONSTRUCTED BY THE AUTHORITY OF THE UNITED STATES AS RESERVED IN UNITED STATES PATENT RECORDED SEPTEMBER 08, 1913, IN BOOK 84 AT PAGE 33, AUGUST 12, 1919 IN BOOK 93 AT PAGE 302, MARCH 5,1934 IN BOOK 93 AT PAGE 396, SEPTEMBER 17,1942 IN BOOK 128 AT PAGE 307 AND DECEMBER 7, 1944 IN BOOK 128 AT PAGE 600. 10. RIGHT OF PROPRIETOR OF A VEIN OR LODE TO EXTRACT AND REMOVE HIS ORE THEREFROM SHOULD THE SAME BE FOUND TO PENETRATE OR INTERSECT THE PREMISES AS RESERVED IN UNITED STATES PATENT RECORDED SEPTEMBER 08,1913, IN BOOK 84 AT PAGE 33. 11. ALL THE COAL AND OTHER MINERALS, TOGETHER WITH THE RIGHT TO PROSPECT FOR, MINE AND REMOVE THE SAME PURSUANT TO THE PROVISIONS AND LIMITATIONS OF THE ACT OF DECEMBER 29,1916 (39 STAT., 862) AS RESERVED BY THE UNITED STATES IN PATENT RECORDED JANUARY 27,1979 IN BOOK 266 AT PAGE 128 AND IN UNITED STATES PATENT RECORDED DECEMBER 4, 1989 IN BOOK 519 AT PAGE 107 AND IN UNITED STATES PATENT RECORDED DECEMBER 7,1944 IN BOOK 128 AT PAGE 600. 12. WATER AND/OR WATER RIGHTS AND DITCHES AND/OR DITCH RIGHTS, WHETHER OR NOT OF PUBLIC RECORD. ALTA COMMITMENT Schedule B - Section 2 (Exceptions) Our Order No. V50019323 The policy or policies to be issued will contain exceptions to the following unless the same are disposed of to the satisfaction of the Company: 13. ANY RIGHTS, INTERESTS OR EASEMENTS IN FAVOR OF THE STATE OF COLORADO, THE UNITED STATES OF AMERICA, OR THE GENERAL PUBLIC, WHICH EXIST OR ARE CLAIMED TO EXIST IN, OVER, UNDER AND/OR ACROSS THE WATERS AND PRESENT AND PAST BED AND BANKS OF THE CATTLE CREEK. 14. TERMS, CONDITIONS AND PROVISIONS OF EASEMENT AGREEMENT RECORDED JUNE 21, 1996 IN BOOK 698 AT PAGE 52. 15. TERMS, CONDITIONS AND PROVISIONS OF DITCH EASEMENT AGREEMENT RECORDED NOVEMBER 04, 1996 IN BOOK 710 AT PAGE 366 AND RERECORDED APRIL 30, 1997 AT RECEPTION NO. 621612. 16. NON EXCLUSIVE RIGHTS AS DESCRIBED IN QUIT CLAIM DEED RECORDED DECEMBER 22, 1994 IN BOOK 657 AT PAGE 793 AND QUIT CLAIM DEED RECORDED MAY 12,2004 AT RECEPTION NO. 876995. 17. TERMS, CONDITIONS AND PROVISIONS OF LICENSE AGREEMENT RECORDED FEBRUARY 17, 2005 AT RECEPTION NO. 906397. 18. TERMS, CONDITIONS AND PROVISIONS OF DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS RECORDED DECEMBER 22,2005 AT RECEPTION NO. 941063. (THE ABOVE ITEMS ARE RECORDED IN EAGLE COUNTY) 19. RIGHT OF WAY FOR DITCHES OR CANALS CONSTRUCTED BY THE AUTHORITY OF THE UNITED STATES AS RESERVED IN UNITED STATES PATENT RECORDED NOVEMBER 07, 1914, IN BOOK 92 AT PAGE 337. 20. EASEMENTS AND RIGHTS OF WAY AS DESCRIBED IN DEED RECORDED OCTOBER 29,1993 IN BOOK 880 AT PAGE 334, AND IN CORRECTION DEED RECORDED DECEMBER 22, 1994 IN BOOK 926 AT PAGE 287. 21. TERMS, CONDITIONS AND PROVISIONS OF DEEDS RECORDED NOVEMBER 25, 2002 IN BOOK 1410 AT PAGE 827, MAY 10,2004 IN BOOK 1586 AT PAGE 252. ALTA COMMITMENT Schedule B - Section 2 (Exceptions) Our Order No. V50019323 The policy or policies to be issued will contain exceptions to the following unless the same are disposed of to the satisfaction of the Company: 22. TERMS, CONDITIONS AND PROVISIONS, EASEMENTS AND RIGHTS OF WAY AS CONTAINED IN COVENANT RECORDED APRIL 21, 1999 IN BOOK 1125 AT PAGE 579, AMENDED EASEMENT RECORDED NOVEMBER 8,2000 IN BOOK 1169 AT PAGE 137 AND AMENDED EASEMENT RECORDED AUGUST 3, 2001 IN BOOK 1274 AT PAGE 712. 23. TERMS, CONDITIONS AND PROVISIONS OF AGREEMENT RECORDED JULY 3, 1996 IN BOOK 984 AT PAGE 18, SUPPLEMENT TO AGREEMENT RECORDED JULY 10,1997 IN BOOK 1025 AT PAGE 504 SUPPLEMENT RECORDED JULY 10,1997 IN BOOK 1025 AT PAGE 504 SECOND SUPPLEMENT TO EASEMENT RECORDED NOVEMBER 23, 1999 IN BOOK 1161 AT PAGE 557. 24. TERMS, CONDITIONS AND PROVISIONS OF RIGHT OF WAY EASEMENT RECORDED APRIL 15, 2005 IN BOOK 1679 AT PAGE 205. 25. TERMS, CONDITIONS AND PROVISIONS OF AGREEMENT RECORDED APRIL 15, 2005 IN BOOK 1679 AT PAGE 207. 26. RESTRICTIVE COVENANTS, WHICH DO NOT CONTAIN A FORFEITURE OR REVERTER CLAUSE, BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, HANDICAP, NATIONAL ORIGIN, ANCESTRY, OR SOURCE OF INCOME, AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS, EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW, AS CONTAINED IN INSTRUMENT RECORDED DECEMBER 21. 2005, IN BOOK 1757 AT PAGE 412. (THE ABOVE ITEMS ARE RECORDED IN GARFIELD COUNTY) LAND TITLE GUARANTEE COMPANY and LAND TITLE GUARANTEE COMPANY - GRAND JUNCTION DISCLOSURE STATEMENTS Note: Pursuant to CRS 10-11-122, notice is hereby given that: A) The subject real property may be located in a special taxing district. B) A Certificate of Taxes Due listing each taxing jurisdiction may be obtained from the County Treasurer's authorized agent. C) The information regarding special districts and the boundaries of such districts may be obtained from the Board of County Commissioners, the County Clerk and Recorder, or the County Assessor. Note: Effective September 1, 1997, CRS 30-10-406 requires that all documents received for recording or filing in the clerk and recorder's office shall contain a top margin of at least one inch and a left, right and bottom margin of at least one half of an inch. The clerk and recorder may refuse to record or file any document that does not conform, except that, the requirement for the top margin shall not apply to documents using forms on which space is provided for recording or filing information at the top margin of the document. Note: Colorado Division ofInsurance Regulations 3-5-1, Paragraph C of Article VII requires that "Every title entity shall be responsible for all matters which appear of record prior to the time of recording whenever the title entity conducts the closing and is responsible for recording or filing of legal documents resulting from the transaction which was closed". Provided that Land Title Guarantee Company conducts the closing of the insured transaction and is responsible for recording the legal documents from the transaction, exception number 5 will not appear on the Owner's Title Policy and the Lenders Policy when issued. Note: Affirmative mechanic's lien protection for the Owner may be available (typically by deletion of Exception no. 4 of Schedule B, Section 2 of the Commitment from the Owner's Policy to be issued) upon compliance with the following conditions: A) The land described in Schedule A of this commitment must be a single family residence which includes a condominium or townhouse unit. B) No labor or materials have been furnished by mechanics or material-men for purposes of construction on the land described in Schedule A of this Commitment within the past 6 months. C) The Company must receive an appropriate affidavit indemnifying the Company against un-filed mechanic's and material-men's liens. D) The Company must receive payment of the appropriate premium. E) If there has been construction, improvements or major repairs undertaken on the property to be purchased within six months prior to the Date of the Commitment, the requirements to obtain coverage for unrecorded liens will include: disclosure of certain construction information; financial information as to the seller, the builder and or the contractor; payment of the appropriate premium fully executed Indemnity Agreements satisfactory to the company, and, any additional requirements as may be necessary after an examination of the aforesaid information by the Company. No coverage will be given under any circumstances for labor or material for which the insured has contracted for or agreed to pay. Note: Pursuant to CRS 10-11-123, notice is hereby given: This notice applies to owner's policy commitments containing a mineral severance instrument exception, or exceptions, in Schedule B, Section 2. A) That there is recorded evidence that a mineral estate has been severed, leased, or otherwise conveyed from the surface estate and that there is a substantial likelihood that a third party holds some or all interest in oil, gas, other minerals, or geothermal energy in the property; and B) That such mineral estate may include the right to enter and use the property without the surface owner's permission. Nothing herein contained will be deemed to obligate the company to provide any of the coverages referred to herein unless the above conditions are fully satisfied. . Form DISCLOSURE 09/01/02 .::::;,1" . '-...;olltt PLEASE PLACE RECORDING INFORMATION STICKER HERE SPECIAL WARRANTY DEED Gary K. McNulty and Sarah Lillian McNulty, Grantors, for good and valuable consideration, in hand paid, hereby sell and convey to Quarter Circle 8 LLLP, Grantee, whose legal address is 7747 County Road 100, Carbondale, Colorado 81623, the following real property in the Counties of Garfield and Eagle, State of Colorado, to wit: SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE; with all its appurtenances, and warrant the title to the same against all persons claiming under the Grantors. NO DOCUMENTARY FEE REQUIRED: Transfer for estate planning purposes with consideration less than $500.00. SIGN~ this ;I day of ~' 2002. . /' /JV) ~L,a__ r1' rl~ Gary K. McNulty Sarah Lillian McNulty STATE OF COLORADO } _/1L)~- ~~.-J ss. COUNTY O~~) r-- .flt Q L- The I foregoing instrument was acknowledged before me this Ii day of ---4-U.MA ~ - , 2002, by GARY K. McNULTY and SARAH LILLIAN McNULTY. ~~TC~~~j~ro~a:~::0;~3 ~~">" -'. ,:" : . ~. -,',. ":. .... ......, . ~ - . :.::- I ~ I -; .' .:~,~ . ......,.. r~.'" ....,....... .::.-- ~.,., "r,'!" t .1 , , . I IIIIUIIII 1111 11111 ~III~IIIIIIIIIII ~IIIII ~~:~~t." Sar.. J Fisher Eagle, CO 388 R 16.00 0 0.00 After reconling re~n\IO":S$e~, Ker~t & deWi~ter 302 8th St., Ste. 310, GI~nw.o~d:Spiing5, CO 81601 . ,;. ~. ~ - EXHIBIT" A" Legal Description of South Parcel A tract ofIand situate in Sections 4, 5 and 9, Township 7 South, Range 87 West of the 6th Principal Meridian being more particularly described as follows: . Beginning at the northeast comer of Lot 2 of said Section 9 whence the southeast comer of said Section 4 bears S 87049'10" E 354.72 feet; thence N 87041'55" W 1611.62 feet along the north line of said Section 9; thence S 2016'51" W 227.38 feet; thence S 41 047'38" E 101.78 feet; thence S 23058'32" E 62.91 feet; thence S 4051'54" VI' 44.84 feet; thence S 24015'16" VI' 7423 feet; thence N 51 015'35" VI' 155.15 feet; thence 182.00 feet along the arc ofa curve to the left, having a radius of89.78 feet, a central angle of 116009'02", and subtending a chord bearing S 70039'54" W 152.40 feet; thence S 12035'23" W 102.41 feet; thence 67.20 feet along the arc of a curve to the right., having a radius of 60.39 feet., a central angle of 63045'37", and subtending a chord bearing S 44028'1 I" W 63.79 feet; thence S 76020'59" W 41.82 feet; thence 54.36 feet along the arc ofa curve to the left, having a radius of 237.57 feet, a central angle of 13 006'36", and subtending a chord bearing S 69047'41" W 5424 feet; thence S 63014'24" W 135.41 feet to the centerofa county road as built and in place; thence along the center of said county road the fonowing courses: I 17.30 feet along the arc ofa curve to the left, having a radius of 1087.17 feet., a central angle of60IO"55", and subtending a chord bearing N 30032'20" W 117.24 feet; thence N 33037'48" W 97.66 feet; thence 99.60 feet along the arc of a curve to the left, having a radius of 453.67 feet., a central angle of 12034'43", andsubtending a chord bearing N 39055'09" W99.40 feet; thence N 46012'31" W295.08 feet; thence N 48030'15" W 241.86 feet; thence 99.05 feet along the arc of a curve to the right, having a radius of 293.75 feet, a central angle of 19019'1l ", and subtending a chord bearing N 38050'39" W 98.58 feet; thence N 2901 1'04" W 2.03 feet; thence 97.07 feet along the arc of a curve to the left, having a radius of 164.05 feet, a cCintral angle of33054'06", and subtending a chord bearing N 46008'07" W 95.66 feet; thence N 63005'10" W 21 1.65 feet; thence 99.94 feet along the arc ofa curve to the left, having a radius of! 141.50 feet., a central angle of 5000'58", and subtending a chord bearing N 65035'39" W 99.90 feet; thence N 68006'08" W 222.72 feet; thence 199.30 feet along the arc ofa curve to the right, having a radius of 975.76 feet, a central angle of! I 042'10", and subtending a chord bearingN 62015'03" W 198.96 feet; thence N 56023'57" W 157.49 feet; thence 446.63 feet along the arc of a C~"Ve to the left, having a radiU3 of 1489.89 feet, a central angle of 17010'32", and subtending a chord bearing N 64059'14" W 444.95 feet; thence N 73034'30" W 518.05 feet; thence 99.91 feet along the arc ofa curve to the left, having aradius of 962.89 feet., a central angle of 5"56'42", and subtending a chord bearing N 76032'51" W 99.87 feet; thence N 79031'12" W 163.58 feet; thence 194.03 feet along the arc ofa curve to the right., having a radius of325.11 feet, a central angle of3401 1'40", and subtending a chord bearing N 62"25'22" W 191.16 feet; thence N 45019'32" W 89.37 feet; thence leaving said county road center on a course bearing: N 1013'40" E 232.72 feet; thence N 67033'42" E 100.76 feet; thence N 14011'22" E 529.43 feet; thence N 45000'15" E 290.40 feet; thence N 35042'50" E490.69 feet; thence N 53033'10" E 282.38 feet; thence N 37040'31" E 460.17 feet; thence N 57042'15" E 400.31 feet; thence N 20027'45" E 185,74 feet; thence N 38054'59" E 150.93 feet; thence N 32027'04" E 232.99 feet; thence N 66025'06" E 591.31 feet; thence N 45034'07" E 153.29 feet to the north line of the SEI/4 of the NWl/4 of said Section 4; thence N 88017'13" W 1112.62feet along said north line; thence N 88017'13" W 1329.88 feet along the north line of the SWII4 of the NWl/4 of said Section 4; thence S 1003'24" W 1314.25 feet along the west line of the SWII4 of the Nwl/4 of Section 4; thence S 1013'40" W 876.03 feet along the west line of Government Lot 5 of said Section 4 totlte south right-of-way line of a county road; thence 116.01 feet along the arc of a non-tangent curve to the right, having a radius of 380.55 feet, a central angle of17028'Ol ", and subtending a cord bearing S 36041'15" WI 15.56 feet along said right-of-way line; thence S 45025'15" W 327.64 feet along said right-of-way line; thence N 89007'24" W 1333.87 feet along the north line of Govemment Lot 14 of Section Sj thence S 0049'13" W 1320.00 feet along the west line of the east 1/2 oCthe Wilbert Lewis Pre-Exemption; thence N 89007'24" W 21.20 feet along the north line of Govemment Lot 15; thence S 1022'12" W 107.98 feet along the east line of a tract ofIand described in Book 502 at Page 215 of the records of the Clerk and Recorder of III~ I~I ~~~I ~~I ~lllm ~IIII~ I~IIIIII DI ~~~~~,,' '" s..~ J fisher E~gle, CO 388 R 16.00 Docul11Cnt Reference: SDPC-IQ3S6-1 'South Parcel" 3 After recording return to: Schenk K~rst & d~~i:~ 302 8th 5,.. St.. 310, Glenwood Spnngs, C Garfield County, Colorado; thence S 00"46'36" W 35.37 feet along the west line of a tract ofland described in Rec. No. 281481 of said Garfield County records; thence S 88058'50" E 1641.64 feet along the south line of said Rec. No. 281481 to the west line of said Section 9; thence S 0"20'28" W 2622.27 feet along the west line of Section 9 to the west 1/4 comer of Section 9; thence S 0020'28" W 1328.82 feet along the west line of the NW1/4 of the SWl/4 of Section 9; thence S 87035'58" E 2756.57 feet along the south line of the NW1/4 of the SWII4 and the south line of Government Lot 12 of said Section 9; thenceN 0040'32" W 186.78 feet aIongthe east line of said Government Lot 12; thence S 89009'23" E 902.38 feet along the south line of Govenunent Lot 10; thence S 89009'23" E 1320.00 feet along the south line of said Government Lot 10; thence N 0048'11" E 1011.54 feet along the east line of Govemment Lot 10 to the south bank of Cattle Creek; thence along the south bank of Cattle Creek the following courses: N 77004'09" W 31.66 feet; thence S 85053'15" W 170.09 feet; thence N75044'28" W 144.38 feet; thence N 2013'15" W 53.07 feet; thence N 31 007'39" W 23.55 feet; thence N 59021'45" W 92.86 feet; thence N 7045'49" W 39.91 feet; thence N 76034'45" W 36.83 feet; thence N 5002'52" W 30.83 feet; thence N 31018'28" W 78.54 feet; thence N 67"58'00" W 57.65 feet; thence N 65013'08" W 177.89 feet; thence N 89012'06" W 85.25 feet; thence N 50022'51" W 102.95 feet; thence N 12032'47" W 67.29 feet; thence N 65017'39" W 119.42 feet; thence N 50044'16" W 104.74 feet; thence N 33024'16" W 91.10 feet; thence N 80043'54" W 156.24 feet to the west line of Government Lot 8 of Section 9; thence N 1000'02" E 908.3 8 feet along the west line of Government Lots 8 and I to the southwest comer of Government Lot 2; thence S 88059'58" E 1320.00 feet along the south line of said Government Lot 2; N 1000'02" E 1108.07 feet along the east line of Government Lot 2 to the point of beginning, said parcel contains 542.041 acres more or less. EXCEPT: . A tract ofland situate in Section 4, Township 7 South. Range 87 West of the 6th Principal Meridian being more particularly described as follows: Beginning at a point whence the southeast comer of said Section 4 bearsS 66043'44" E 5349.05 feet; thence S 77041'08" W 423.72 feet to a point on the west line of said Section 4; thence N 1013'40" E 391.47 feet along the west line of Section 4; thence N 90"00'00" E 622.00 feet; thence S 35042'50" W 370.73 feet to the point of beginning, said parcel contains 4.000 acres more or less. Illllllllllllllllllllllllllllllllllllllllllllllllllllll ~~:f]~2: 57P s... J Fisher Eagle, CO 3BB R 16.00 0 0.00 Document Refetence: SDpc.I0386-1 'South Parcel" 4 After n;cording reCurn to: Schenk Kersr & deWinter 302 8th St., Sec. 310. Glenwood Springs, CO 81601 .. ~l2~ PL~ I ~~um 1IIIIIIml""III~~ IIIIIII~ 1111 ~~~~~t4lP Teak J Simonton Easle, CO 388 R 26.00 o 0.00 CORRECTION SPECIAL WARRANTY DEED Gary K. McNulty and Sarah Lillian McNulty, Grantors, for good and valuable consideration, in hand paid, hereby sell and convey to Quarter Circle 8 LLLP, Grantee, whose legal address is 7747 County Road 100, Carbondale, Colorado 81623, the following real property in the Counties of Garfield and Eagle, State of Colorado, to wit: SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE; TOGETHER WITH all water and water rights and ditch and ditch rights appurtenant to said real property, including those rights described on Exhibit "B" attached hereto and incorporated herein by this reference, subject to the conditions and limitations described in Quit Claim Deed recorded July 11, 1997 in Book 1025 at Page 723 as Reception No. 510839 of the Garfield County records and recorded August 5, 1997 as Reception No. 629831 of the Eagle County records; with all its appurtenances, and warrant the title to the same against all persons claiming under the Grantors. NO DOCUMENTARY FEE REQUIRED: This Deed is given to correct that certain Deed recorded October 3, 2002 as Reception No. 612472 of the Eagle County records and recorded October 10, 2002 in Book 1395 at Page 360 as Reception No. 612472 of the Garfield County records to include the water and water rights and ditch and ditch rights appurtenant to said real property. SIGNED this 'llll: , day Of~, 2~04. , '\ '../' , l Il Gary K. McNulty \,. Sarah Lillian McNulty \\IMTAI\FU.. Sll>f.....\..tiMcNult)'\~r ell II.llJ'\COkJ(,t,'CT 5WD..&m After recording return to: Schenk, Kerst & deWinter 302 8th St., Ste. 310, GIenwood Springs, CO 81601 PLI I ~m I~II~III~ 1111 ~I ~llm I~ 1I1~ 11111111 ~~f,r.~t41P E reak J Simonton E:asle. CO 3ee R 26.00 D 0.00 . STATE OF COLORADO ) ) ss. COUNTY OF A'(ltf'a./lOl.l) J1 The foregoing instrument was acknowledged before me this <6 'I-tv day of o~ . . 2004. by GARY K. McNULTY and SARAH LILLIAN McNULTY. WI NESS my hand and official seal. 1- My Commission expires: _~ - "2.z-- 0 . ~ ~ ~AiJiiPi, Not Public \'J1A,TAl\l'Qr; S''''''.r'Wk\McNuJl)>;l,/'u.r(Cf Ci, S ll.LP\C()IlkECl' SWD_.... After recording return to; Schenk. Kerst & deWinter 302 8th St., Sle. 310, Glenwood Springs. CO 81601 1111~lmlllllllnHI1I/n~ g;f?l1. Teak J Slmonton Eagle, CO 3B8 R 26.00 00.00 .411' EXHIBIT "A" Legal Description of South Parcel A tract ofIand situate in Sections 4,5 and 9, Township 7 South, Range 87 West of the 6th Principal Meridian being more particularly described as follows: . Beginning at the northeast comer of Lot 2 of said Section 9 whence the southeast comer of said Section 4 bears S 8r49'1O" E 354.72 feet; thence N 87"41'55" W 1611.62 feet along the north line of said Section 9; thence S 2" 16'51" W 227.38 feet; thence S 41"47'38" E 101.78 feet; thence S 23"58'32" E 62.91 feet; thence S 4"51'54" W 44.84 feet; thence S 24015'16" W 74.23 feet; thence N 51 015'35" W 155.15 feet; thence 182.00 feet along the arc ofa curve to the left, having a radius of 89.7& feet. a central angle of 116"09'02", and subtending a chord bearing S 70039'54" W 152.40 feet; thence S 12035'23" W 102.41 feet; thence 67.20 feet along the arc of a curve to the right, having a radius of 60.39 feet, a central angle of 63045'37", and subtending a chord bearing S 44028'11" W 63.79 feet; thence S 76020'59" W 41.82 feet; thence 54.36 feet along the arc ofacurve to the left. having Ii radius of 237.57 feet, a central angle of 13006'36", and subtending a chord bearing S 69047'41" W 54.24 feet; thence S 630 14'24".W 135.41 feet to the center of a county road as built and in place; thence along the center of said county road the following courses: 117.30 feet along the arc ofa curve to the left, having a radius of 1087.17 feet, a central angle of60lO"55", and subtending a chord bearing N 30032'20" W 117.24 feet; thence N 33"37'48" W 97.66 feet; thence 99.60 feet along the arc of a curve to the left. having a radius of 453.67 feet, a central angle of 12034'43", and subtending a chord bearing N39055'Q9" W 99.40 feet; thence N 460 12'31" W 295.08 feet; thence N 48030'15" W 241.86 feet; thence 99.05 feet along the arc of a curve to the right, having a radius of 293.75 feet., a central angle of 19019'11", and subtending a chord bearing N 38050'39" W 98.58 feet; thence N 29011'04" W 2.03 feet; thence 97.07 feet along the arc ofacurve to the left. having a radius of 164.05 feet, a central angle of 33 054'06", and subtending a chord bearingN 46008'07" W 95.66 feet; thence N 63005'10" W211.65 feet; thence 99.94 feet along the arc ofacurve to the left. having a radius of 1141.50 feet, a central angle of5000'58", and subtending a chord bearing N 65"35'39" W 99.90 feet; thence N 68"06'08" W 222.72 feet; thence 199.30 feet along the arc ofa curve to the right, having a radius of975.76 feet, a central angle of 11 042'10", and subtending a chord bearing N 62015'03" W 198.96 feet; thence N 56023'57" W 157.49 feet; thence 446.63 feet along the arc of a curve to the left, having a radius of 1489.89 feet, a central angle of 17010'32", and subtendinga chord bearing N 54059'14" W 444.95 feet; thence N 73034'30" W 518.05 feet; thence 99.91 feet along the arc of a curve to the left. having a radius of962.89 feet, a central angle of 5056'42", and subteItding a chord bearing N 76032'51" W 99.87 feet; thence N 79031'12" W 163.58 feet; thence 194.03 feet along the arc ofa curve to the right, having a radius of325.11 feet., a central angle of34011'40", and subtending a chord bearingN 62"25'22" W 191.16 feet; thence N 45"19'32" W 89.37 feet; thence leaving said county road center on a course bearing: N 1013'40" E 232.72 feet; thence N 67"33'42" E 100.76 feet; thence N 14011'22" E 529.43 feet; thence N 45"00'15" E 290.40feet; thence . N 35042'50" E 490.69 feet; thence N 53"33'10" E 282.38 feet; thence N 37040'31" E 460.17 feet; thence N 57042'15" E 400.31 feet; thence N 20027'45" E 185.74 feet; thence N 38054'59" E 150.93 feet; thence N 32"27'04" E 232.99 feet; thence N 66025'06" E 591.31 feet; thence . . . N 45"34'07" E 153.29 feet to the north line of the SE1I4 of the NW1I4 of said Section 4; thence N 88017'13" W 1112.62 feet along said north line; thenceN 88"}7'13" W 1329.88 feet along the north line of the SW1/4 of the NWl/4 of said Section 4; thence S 1"03'24" W 1314.25 feet along the west line of the SW1I4 of the NW1I4 of Section 4; thence S 1"13'40" W 876.03 feet along the west line of Government Lot 5 of said Section 4 to the south right-of-way line of a county road; thence 116.0 I feet along the arc of a non-tangent curve to the right, having a radius of 380.55 feet, a central angle of 17028'01", and subtending a cord bearing S 36"41'15" W 115.56 feetalonf said right-of-way line; thence S 45025'15" W 327.64 feet along said right-of-way line; thence N 89 07'24" W 1333.87 feet. along the north line of Government Lot 14 of Section 5; thence S 0049'13" W 1320.00 feet along the west line oCthe east 112 of the Wilbert Lewis Pre-Exemption; thence N 89007'24" W 21.20 feet along the north line of Government Lot 15; thence S 1022'12" W 107.98 feet along the east line of a tract of land described in Book 502 at Page 2 I 5 of the records of the Clerk and Recorder of Document RcCcrcnco: SDPC-l0386-1 "South Parcel" 3 1111111111111111111111111111 111111111111111111111111111 ~~:r~~'3 : 41 P Teak J Simonton Eagle. CO 388 R 26.00 0 0.0 Garfield County, Colorado; thence S 00046'36" W 35.37 feet along the west line ofa tract ofIand described inRec. No. 281481 of said Garfield County records; thence S 88058'50". E 1641.64 feet along the south line of said Rec. No. 281481 to the west line of said Section 9; thence S 0020'28" W 2622.27 feet along the west line of Section 9 to the west 1/4 comer of Section 9; thence S 0020'28" W 1328.82 feet along the west line of the NW1I4 of the SW1I4 of Section 9; thence S Sr35'58" E 2756.57 feet along the south line of the NW1I4 of the SW1I4 and the south line of Government Lot 12 of said Section 9; thence N 0040'32" W 186.78 feet along the east line of said Government Lot 12; thence S 89009'23" E 902.38 feet along the south line of Government Lot 10; thence S 89009'23" E 1320.00 feet along the south line of said Government Lot 10; thence N 0048'11" E 1011.54 feet along the east line of Government Lot 10 to the south bankofCattIe Creek; thence along the south bank of Cattle Creek the following courses:. N 77004'09" W 31.66 feet; thence S 85053'15" W 170.09 feet; thence N 75044'28" W 144.38 feet; thence N 2013'15. W 53.07 feet; thence N 31 007'39" W 23.55 feet; thence N 59021 '45" W 92.86 feet; thence N 7045'49" W 39.91 feet; thence N 76034'45" W 36.83 feet; thence N 5002'52" W 30.83 feet; thence N 31018'28" W 78.54 feet; thence N 67058'00" W 57.65 feet; thence N 65013'08" W 177.89 feet; thence N 89012'06" W 85.25 feet; thence N 50022'51" W 102.95 feet; thence N 12032'47" W 67.29 feet; thence N 65017'39" W 119.42 feet; thence N 50044'16" W 104.74 feet; thence N 33024'16" W 91.10 feet; thence N 80043'54" W 156.24 feet to the west line of Government Lot 8 of Section 9; thence N 1000'02" E 908.38 feet along the west line of Government Lots 8 and 1 to the southwest comer of Government Lot2; thence S 88059'58" E 1320.00 feet along the south line of said Government Lot 2; N 1000'02" E I 108.07 feet along the east line of Government Lot 2 to the point of beginning, said parcel contains 542.041 acres more or less. .; EXCEPT: A tract ofIand situate in Section 4, Township 7 South, Range 87 West of the 6th Principal Meridian being more particularly described as follows: Beginning at a point whence thesouthCast comer of said Section 4 bears S 66043'44" E 5349.05 feet; thence S 77041'08" W 423.72 feet to a point on the west line of said Section 4; thence N 1013'40" E 391.47 feet along the west line of Section 4; thence N 90000'00" E 622.00 feet; thence S 35D42'50" W 370.73 feet to the point of beginning, said parcel contains 4.000 acres more or less. DoC1llllcnt RefeR"".: SDPC.IOJ86-1 "Soudt Parcel" 4 EXHIBIT "B" Name Total Amount Adjudication Appropriation Case (c.f.s.) Date Date No. Heuschkel & Chapman 0.60 5/11/1889 6/20/1884 132 Ditch 0.50 5/11/1889 6/15/1888 132 HC&L Ditch 1.40 5/11/1889 3/1/1884 132 0.10 5/11/1889 7/20/1885 132 Eureka No. 1 Ditch 9.50 3/15/1916 10/1/1908 1397 Sweedes Ditch 0.50 5/1111889 6/1/1886 152 1111111111111111111111111111111111111111111111111111111 ~~E~~13: 41P Teak J Simonton Eagle. CO 388 R 26.00 0 0.00 \\DATAI\File Storage\dkIMcNulty\Quartcr Cir 8 LLLP\Exhibit B.wpd t dl \\ . PLEASE PLACE RECORDING INFORMATION STICKER HERE CORRECTION SPECIAL WARRANTY DEED Sarah Lillian McNulty, Grantor, for good and valuable consideration, in hand paid, hereby sells and conveys to Freeman Cattle Creek LLLP, Grantee, whose legal address is 7747 County Road 100, Carbondale, Colorado 81623 the following real property in the Counties of Garfield and Eagle, State of Colorado, to wit: SEE EXHIBIT "A" ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE; with all its appurtenances, and warrants the title to the same against all persons claiming under the Grantor. NO DOCUMENTARY FEE REQUIRED: This Deed is given to correct that certain Deed recorded November 25,2002 in Book 1410 at Page 828 as Reception No. 615432 of the Garfield County to include the water and water rights and ditch and ditch rights. t1... SIGNED this ~ day Of~, 200;1-. ~( j, [(to..: 11- ~y Sarah Lillian McNulty ~ STATE OF COLORADO ) A'(~OfU ) 55. COUNTY OF €^RFIEL9-- ) ~'Itv day of \\l1A.TII.11l'il.Sl.t.>n,,.ld.k\Ml:NIalIy\f'_lll..P\C($1l.tc1' SWD.ftm After recording return to: Schenk, Kerst & deWinter 302 8th St., Ste. 310, Glenwood Springs, CO 81601 III~II ~IIIIIIIIIIIIIIII~I ~IIIIIIIIIIIIIII ~IIII~ ~~:r.~~, 4" Teak J Simor'\tor'\ Eagle, CO 3BS R 11.00 0 0.00 EXHIBIT "A" Township 7 South. Range 87 West of the 6th P.M. Parcel 16: Parcel 17: ParcellS: Parcel 19: Parcel 20: Parcel 22: Parcel 23: Parcel 24: Parcel 25: Parcel 26: Parcel 27: Parcel 28: Parcel 29: The East twenty-five (25) acres of the NWl,4NElf4 and the West ten (10) acres of the NEV4NEV4 of Section 16. The East thirty (30) acres of the NEy..NEy.. of Section 16 and the West five (5) acres of the NWy..NWl,4 of Section 15. NEy..NWV4 of Section 15. NWy..NWy.. of Section 15. N~NEl,4NWV4 and the West fifteen (15) acres ofthe NWY4NEV4 of Section 16. All of Lot 1 lying South of the North bank of Cattle Creek and the North five (5) acres of Lot 2, all in Section 10. Lot 3 and the South twenty-seven (27) acres of Lot 2, all in Section 10. NEy..SWV4 of Section 10. SEY4SWY4 of Section 10. SWY4SW14 of Section 9. The West thirty-seven (37) acres of the SE'i4SW1/4 of Section 9. Lot 13 and the East three (3) acres of Lot 14, all in Section 9. All of Lot 9 lying South of the North bank of Cattle Creek, Lot 14 and 15, less the East three (3) acres of Lot 14, all in Section 9. Containing 503.50 acres more or less; TOGETHER WITH 0.50 c.f.s. of the Richard J. Roberts Ditch adjudicated 3/5/1910 with an appropriation date 00/12/1893 in Case No. 1398 and any and all water and water rights and ditch and ditch rights appurtenant to said real property. After recording return to: Schenk. Kerst & deWinter 302 8" St.. Ste. 310: Glenwood Springs. CO 81601 II~I~ II~ ~1~1I111111111 ~~ IIIIIIII~ I~II ~II~I ~!::r.~t41P Teak J Simonton Eagle, CO 388 R 11. 00 o 0.00