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Home My WebLink About036 - Appendix X - WaterRights-Correspondence&Attachments1 Lee Hageman From:stephenson@dmsnaturalresources.com Sent:Wednesday, July 20, 2022 6:38 AM To:'Brian Heaston' Cc:'Rob Lateiner'; 'Spencer Van Schaack'; Matt E. Ekstrom Subject:RE: Virga Venture - Water Rights Attachments:2022.06.08 Order Split Claim.pdf; 41H_110371_00_Split Map_07192021.pdf; FCC Water Delivery Agreement Virga 06.17.2022 fully executed.pdf ***This message originated from an External Source.*** Please use proper judgment and caution when opening attachments, clicking links, or responding to this email. Brian See responses in red text regarding the water rights. I will talk to Rob regarding questions #1 and #5 and get back to you. Then maybe we can have a call to discuss. 1) What’s the present plan for irrigation water supply for the development (both for dedicated parkland and private fee lots)? I will ask Rob 2) What’s the present status of each of these virga claims in the adjudication? The abstracts provided are not post- decree versions, so wondering where in the process the rights are. These claims were all split from other claims, which is why they show version 1. The parent claims are all through the court, however FCC wants to reopen the split case for 41H 30153494 to add remark referencing private agreement. 3) Also, the POU for the 41H 30153494 right is not contiguous. Is this a transcription error from the claim file to the abstract that is being amended through adjudication or did something go awry with the parent claim split? Typo from court split in case 5056. I will contact court to correct. Virga’s POU is all in section 27. Attached is the split map and the split order. 4) What’s the status of the conveyance agreement with Farmers Canal for the West Gallatin right? See attached. 5) Is there appetite on the developer’s part to construct a non-potable irrigation system using these appurtenant rights? If yes, are the rights senior enough to be protected against call over the entire course of the irrigation period of use given the rights are not supplemental to a common POU? I will ask Rob Deborah Stephenson DMS Natural Resources, LLC 602 S. Ferguson Ave., Suite 2 Bozeman, MT 59718 Office: 406-582-4988 Cell: 406-600-1422 stephenson@dmsnaturalresources.com www.dmsnaturalresources.com 2 The information contained in this message may be CONFIDENTIAL and is for the intended addressee only. Any unauthorized use, dissemination of the information, or copying of this message is prohibited. If you are not the intended addressee, please notify the sender immediately and delete this message. Thank you. From: Brian Heaston <bheaston@BOZEMAN.NET> Sent: Tuesday, July 19, 2022 3:37 PM To: stephenson@dmsnaturalresources.com Cc: 'Rob Lateiner' <rob@virgacapital.com>; 'Spencer Van Schaack' <spencer@virgacapital.com>; 'Matt E. Ekstrom' <mekstrom@m-m.net> Subject: RE: Virga Venture - Water Rights Hi Deb – It looks these rights are useful in city ownership, so yes, we’d entertain negotiating a water adequacy agreement for water offsets as consideration for ownership transfer. Couple quick questions to kick off the discussion. 1) What’s the present plan for irrigation water supply for the development (both for dedicated parkland and private fee lots)? 2) What’s the present status of each of these virga claims in the adjudication? The abstracts provided are not post- decree versions, so wondering where in the process the rights are. Also, the POU for the 41H 30153494 right is not contiguous. Is this a transcription error from the claim file to the abstract that is being amended through adjudication or did something go awry with the parent claim split? 3) What’s the status of the conveyance agreement with Farmers Canal for the West Gallatin right? 4) Is there appetite on the developer’s part to construct a non-potable irrigation system using these appurtenant rights? If yes, are the rights senior enough to be protected against call over the entire course of the irrigation period of use given the rights are not supplemental to a common POU? Sincerely, Brian Heaston, PE Senior Engineer City of Bozeman - Engineering 20 E. Olive St. P.O. Box 1230 Bozeman, MT 59771 (406) 582-2280 bheaston@bozeman.net From: stephenson@dmsnaturalresources.com <stephenson@dmsnaturalresources.com> Sent: Monday, July 18, 2022 12:56 PM To: Brian Heaston <bheaston@BOZEMAN.NET> Cc: 'Rob Lateiner' <rob@virgacapital.com>; 'Spencer Van Schaack' <spencer@virgacapital.com>; 'Matt E. Ekstrom' <mekstrom@m-m.net> Subject: Virga Venture - Water Rights CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Brian I work for Rob at Virga Venture II LLC. They own a piece of property in the NE of Section 27 1S 5E south of the interstate. As I am sure you are aware, they are going up for annexation approval with the City on July 26, 2022. 3 I have attached the abstracts of their private water rights. They also own 1 and 1/6 shares in FCC, certificate #289. Virga is interested in conveying the city its water rights and FCC shares in exchange for in lieu fee credits. Thus, I wanted to ask you if the City is interested in obtaining Virga’s private water rights in exchange for in lieu fee credits? If so, let’s discuss. Please let me know either way. Thanks Deborah Stephenson DMS Natural Resources, LLC 602 S. Ferguson Ave., Suite 2 Bozeman, MT 59718 Office: 406-582-4988 Cell: 406-600-1422 stephenson@dmsnaturalresources.com www.dmsnaturalresources.com The information contained in this message may be CONFIDENTIAL and is for the intended addressee only. Any unauthorized use, dissemination of the information, or copying of this message is prohibited. If you are not the intended addressee, please notify the sender immediately and delete this message. Thank you. 10.55 AcresThis parcel was subdivided into multiple parcels owned by Sawmill Gulch Properties LLC. 35 28 21 22 2627 34 23 33 1S 5E CATTA IL C R EE KCreated 7/19/2021Aerial Imagery:7/20/2019 NAIP µ Virga CapitalGallatin County, MT 41H 110371 00 0 0.40.2 Miles Property Ownership Virga Ventures II LLC Barry Schaplow Schaplow Farms LLC Sawmill Gulch Properties LLC Water Right Features* Sectionline Ditch Unnamed Ditch Baxter-Border Ditch 41H 110371 00 POU** *41H 110371 00 POD is located in the SWNWNW Section 11 T3S R4E, which is outside the extent of this map.** A portion of the 41H 110371 00 POU is located outside of the map's extent in the E2SE Section 30T1S R5E and the NW Section 32 T1S R5E. Geographic features displayed on the map have not been surveyed by DMS and should not be construed as surveyed.This map includes publicly available data obtained from third-party sources. DMS makes no warranties as to the accuracy of data obtained from third-party sources. 85.24 Acres 73.21 Acres 113.15 Acres