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HAYDEN ID 83835208 665 9200

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October 18 2004

TO: Idaho Public Utilities CommissionCommission Secretary

FROM: Bar Circle S' Water Co Inc Be S.-I/J-II f-tJ/SUBJECT: Area Extension

PURPOSE: Extension of water lines

We need to expand our certificated service territory to agree with the enclosed map andlegal description involved.

It is requested that the Bar Circle S' Water Co Inc, a water utility in Kootenai County,Idaho, more particularly described as a portion of the North % of section 26 , S 1/2Section 23, N 1/2 of the NW % of Section 25 Township 52 North, Range 4 West, BoiseMeridian , Kootenai County Idaho, be granted an extension of its service area to includea portion of the S1/2 of the NE 1/4 of Section 22 , Township 52 , North Range 4 WestBoise Meridian Kootenai County Idaho (65 acres) to service approximately 13/5 acreslots with domestic water from 1/1 to 12/31. See enclosed area map.

The installation cost by the utility company known as Bar circle ' Water Co Inc will beapproximately $

7 3 9 6 tJ /&6 as per engineer estimate...J

The Bar Circle S' Water Co Inc will not be responsible for any damage to property(trees , etc) associated with this water line installation.

The rate that was established for the Bar Circle S' Water Co Inc will be applied to thissubdivision.

Please review and grant permission at your earliest convenience as the construction isdue to start as soon as possible.

ctfully

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Bar Circle S' Water Co Inc

BAR CIRCLE '5' WATER COPO BOX 1870

HAYDEN ID 83835208 665 9200

208 665 9300 FAX

October 18 , 2004

Raymond VaudreuilHope Realty1410 Lincoln WayCoeur d'Alene 10 83814

Dear Ray

As per your request for the Bar Circle S' Water Co to supply water to your proposedsubdivision. West side of Ramsey Road, (13) 5 acre lots.

We are able and willing to supply this subdivision with water under the following conditions:1. Water line plans by a license engineer to be submitted to this company

A. Bar Circle S' Water will order all materials and place out to bid the installationof the main lines and laterals. Bar Cirde IS' Water Co will do all site inspections. Mainlines will be 8" C-900 class pipe.

Bar Circle '5' Water Co will have the exclusive right to service this subdivision , domesticand irrigation water.

Owner will secure Department of Environmental Quality, Lakes Fire District and theKootenai County approvals prior to construction.

Bar Circle S' Water Co will apply to the Idaho Public Utilities Commission for approval ofa water line extension. IPUC lead time from date of receipt is approximately three (3)months.

Developer agrees to pay all costs incurred of a line extension ie. : pipe , parts, andinstallation to Bar Circle S' Water Co prior to construction.

If you need any additional information please call me at 208 665 9200.

April 20 , 2004

Robert Turnipseed

Re: Water line extension

Dear Robert

I would like to request a water line extension from your Bar Circle "S" water system tomy property on the west side of Ramsey Road.

My proposed subdivision will have 13 parcels (all approximately 5 acres).

Please let me know what additional information you will require.

HOPE REALTY1410 Lincoln Way. Coeur d'Alene, Idaho 83814 . (208) 765-3641

Residential. Commercial. Investment. Acreage. Lake Property. Business. Farm & RanchFJ\X (208) 667-0842

WATER MAIN EXTENSION AGREEMENTBAR CIRCLE'S' WATER CO INC

THIS AGREEMENT is entered into on the date set forth below, by and betweenBAR CIRCLE'S' WATER INC, an Idaho Corporation , located at P. O. Box 1870Hayden , Idaho 83835 (herein referred to as "BAR' S' WATER" ) and RAY VAUDREUILDeveloper located at 1410 Lincoln Way, Coeur d'Alene 10 (herein referred to asVAUDREUIL"

RECITALS:

A. BAR'S' WATER owns two wells and currently provides domestic waterservices to BAR CIRCLE' S' RANCH INC and is a public utility governed by the IdahoPublic Utility Commission (Commission).

B. VAUDREUIL is the owner of and is developing approximately 65 acres ofland neighboring BAR CIRCLE'S' RANCH INC, and intends to plat 13 lots , moreparticularly described in Exhibit "A" (herein referred to as uCOUNTRY ESTATES" ) all ofwhich lots require domestic water service.

C. It is the purpose and intent of the parties that BAR' S' WATER will providedomestic water delivery and maintenance under the terms of this Agreement and theCommission s Customer Relation Rules 'and Bar S' Water filed Tariffs.

D. This Agreement is subject to the Commission s Customer Relation Rulesand Bar S' Water filed Tariffs which rules shall apply to the expanded service territory.

NOW, THEREFORE , based on the agreements and covenants provided hereinit is agreed as follows:

DEFINITIONS

All definitions provided herein shall apply to this Agreement and theGeneral Rules and Regulations Governing this Water Main Extension Agreementadopted hereunder.

1 "Adjusted Construction Cosf' , for the purposes of this Rule , shall bereasonable and shall not exceed the costs recorded in conformity with generallyaccepted water Utility accounting and sound engineering practices , and asspecifically defined in the Uniform System of Accounts for Water Utilitiesprescribed by the Commission , of installing facilities of adequate capacity for theservice requested. If the Utility, at its option , should install facilities with a largercapacity or resulting in a greater footage of extension than required for theservice requested, the "adjusted construction cost" , for the purposes of this

WATER MAIN EXTENSION AGREEMENT - BAR CIRCLE' S' WATER INC1 -

Rule , shall be determined by the application of an adjustment factor to actualconstruction cost of facilities installed. This factor shall be the ratio of estimatedcost of required facilities to estimated cost of actual facilities installed.

2. "Agreement" and "Main Line Extension Contract" shall mean thisAgreement between BAR' S' WATER , VAUDREUIL and his assigns , the futureCustomers in COUNTRY ESTATES.

Commission" shall mean the Idaho Public Utilities Commission.

4. "Customer" or "all Customers" shall mean VAUDREUIL , for so longas Vaudreuil owns any lots in COUNTRY ESTATES , and the assigns ofVAUDREUIL; all of which shall be water users in COUNTRY ESTATES.

5. "Main Line Extension Contracf' shall mean this Agreement betweenBAR CIRCLE'S' WATER INC and VAUDREUIL and his assigns , the futureCustomers in COUNTRY ESTATES.

6. "Utility" shall mean BAR CIRCLE'S' WATER INC also referred toas BAR' S' WATER.

7. "Water System" or II Facilities "shall mean the main line(s)connections , easements and all necessary appurtenances supporting the watersystem constructed under this Agreement all of which is more particularlydescribed in Exhibit 118" attached hereto and by this reference made a parthereof.

DOMESTIC WATER DELIVERY

1. BAR'S' WATER shall deliver domestic water to Customers ofCOUNTRY ESTATES for residential use under the terms and conditions set forthherein subject to the Commission s Customer Relation Rules and Bar S' Waterfiled Tariffs.

2. VAUDREUIL , for so long as Vaudreuil owns any lots in COUNTRYESTATES , and all Customers shall abide by this Agreement , the CommissionCustomer Relation Rules and Bar S' Water filed Tariffs.

3. BAR'S' WATER shall provide water to each lot in COUNTRYESTATES at a tap-on location stubbed to the property line. The property ownershall be responsible for construction, maintenance and repair of the waterservice line and required cross-connection devices from the tap-on location tothe point of ultimate use.

WATER MAIN EXTENSION AGREEMENT - BAR CIRCLE' S' WATER INC- 2-

4. Water meters shall be installed by BAR'S' WATER. No meter shallbe moved without the prior written consent of BAR' S' WATER.

5. Service lines and other associated facilities from the tap-on locationto point of water usage shall be constructed at the sole expense and risk of theCustomer. Construction criteria for service lines, back flow preventer(s), shut-offvalve(s), reducing valve(s), and other necessary equipment shall be provided byowner pursuant to all federal , state and local standards,

6 BAR'S' WATER shall remedy defects in the system main linespumps and meters. Each Customer is responsible for repairs and maintenanceof all service lines , cross-connection devices , valves , and equipment from thetap-on location to the point of ultimate usage.

7. Each Customer grants an irrevocable license on , over, under andacross their property to BAR'S' WATER for the purpose of maintaining,expanding, repairing the Water System.

8 BAR'S' WATER reserves the right to sell or transfer (at its option)the Water System to a home owners association , legally organized water districtpublic corporation , non-profit corporation , private individual or corporation. BARS' WATER reserves the unqualified right to extend future water service using theWater System constructed for COUNTRY ESTATES.

No failure to enforce, delay or omission in the exercise of any rightor remedy by BAR'S' WATER of any violation or default by Customer(s) shallimpair such a right or remedy, or be construed as a waiver.

10 In case anyone or more of the provisions contained in thisAgreement shall , for any reason , be held to be invalid , illegal , unconscionable orunenforceable in any respect, such invalidity, illegality, unconscionability, orunenforceability shall not effect any other provision hereof and this Agreementand the Rules and Regulations shall be construed as if such invalid , illegalunconscionable or unenforceable provision had never been contained hereinand all other terms and provisions hereof will nevertheless , remain effective andbe enforced to the fullest extent permitted by law.

11 In addition to the remedies set forth above , BAR' S' WATER re-serves the right to enforce any restrictions contained herein by any other appro-priate action as allowed under the Commission s Customer Relation Rules andBar S' Water filed Tariffs.

12 BAR'S' WATER shall provide water for fire flow at the locationsand in the amounts required by the Fire District.

WATER MAIN EXTENSION AGREEMENT - BAR CIRCLE' S' WATER INC- 3-

13 BAR'S' WATER shall abide by all rules and regulations , includingthe testing requirements of the State of Idaho Department of EnvironmentalQuality.

CONNECTIONS AND EASEMENT.

1. VAUDREUIL agrees and confirms that BAR'S' WATER is theowner of the Water System.

2. Prior to execution of this Agreement , BAR' S' WATER shall deliverto VAUDREUIL a copy of the plans and specifications which will be used toconstruct the WATER SYSTEM. VAUDREUIL shall deliver to BAR' S' WATERwritten documentation , recorded in the official records of the Recorder s OfficeKootenai County, Idaho, in form satisfactory to BAR' S' WATER , granting toVAUDREUIL and BAR IS' WATER a good and valid easement to that propertyidentified and described in Exhibit " The purpose and terms of the easementshould provide substantially as follows:

(Grant of) an easement to enter upon , over, across , through , andunder the property and real estate more particularly described asset forth in Exhibit" A" to construct, reconstruct, operate, inspectmaintain , remove , replace and repair the pipeline , vaults , valving,meters and appurtenances of the Water System.

This easement shall be , at a minimum , five (5) feet each side ofthe pipe line location and is for the purpose of conveying waterthrough the pipeline and includes the right of ingress and egressof persons , materials , vehicles and equipment. The timing,manner and use of the easement rights herein granted shall be atthe sole discretion of BAR'S' WATER.

3. BAR'S' WATER is the sole OWNER and controller of theWater System which shall be , repaired , maintained , operated , replaced orreconstructed only under the direction and control of BAR' S' WATER.Such ownership and control by BAR'S' WATER shall survive anytermination of this Agreement.

RESPONSIBILITY OF THE PARTIES.

1. Except in the case of an emergency, no one, except anauthorized BAR'S' WATER representative , is allowed to turn-on or turn-off the water to COUNTRY ESTATES at the designated serviceconnection.

WATER MAIN EXTENSION AGREEMENT - BAR CIRCLE' S' WATER INC- 4-

OC 1 . 11:1. cl::j1::j4 C : 5bPM AVONDALE CONSTR I NC NO. 886

BAR '5' WATER agrees to build water main extension andrelated Water System improvements to provide service to COUNTRYESTATES, and repair, maintain and reconstruct the Water Systemimprovements in accordance with standards set by local , state and

federal agencies with legal jurisdiction over water delivery by BAR (WATER.

VAUDREUIL agrees to pay BAR '5' WATER COMPANY forthe costs of construction of the water main extension and related WaterSystem improvemen se icin COUNTRY ESTATES. Such costs areestimated to be $ . 73 6(!) ~ (70

;:t,VAUDREUIL hereby contributes the water main extension

and reJated Water System improvements servicing COUNTRY ESTATESbuilt by BAR '5' WATER COMPANY to BAR' S' WATER COMPANY.

NOTICE

Unless either party provides notice to the other in writing of changeof address as specified in this paragraph, any notice required by thisAgreement shall be deemed sufficient if delivered personally or mailed,postage prepaid, to BAR' S' WATER or to VAUDREUIL as foUows:

Bar Circle '8' Water CompanyO. Box 1870

Hayden, 10 83835-0081

Ray Vaudreuil1', 0 t 6o~' Z. 7 3

CoLl..fU.€ OA1..f ~~ 37.3 is

PRIOR UNDERSTANDINGS AND AGREEMENTS NULL AND VOID.

This Agreement sets forth the entire Agreement between theparties. All prior Agreements including the WATER MAIN EXTENSIONAGREEMENT BAR CIRCLE itS' WATER CO INC between the parties dated the2nd day of June 2004 are hereby revoked.

2. This Agreement may not be amended or modified except in writingsigned by the parties.

CAPTIONS.

The paragraph heading are for convenience of reference only and shallnot control or affect the meaning of any provision of this Agreement.

AUTHORITY TO EXECUTE AGREEMENT

WATER MAIN EXTENSION AGREEMENT .. -BAR CIRCLE' S' WATER INC5..

OCT. 18. 2004 2:57PM AVONDALE CONSTR INC NO. 886

All signatories to this Agreement warrant and represent that they have thepower and authority to execute this Agreement and bind the entity they indicatethey are representing.

AGREEMENT RUNS WITH THE LAND

This Agreement shall run with the land and shall be binding on and inureto the benefit of the future Customers of each lot in COUNTRY ESTATES. Theeasements and rights granted herein exist in perpetuity and shall inure to thebenefit of and be binding upon the heirs, assigns and successors in interest ofBAR' S' WATER and VAUDREUIL

GOVERNING LAW10.

This agreement shall be governed by and construed in accordance withthe laws of the State of Idaho.

11. INTERPRET A TI

The parties agree in an cases that the 'language of this Agreement win beconstrued simply~ according to its fair meaning, and not strictly for or against

either party.

12. TIORNEY'S FEE

In the event of any controversy, daim1 or dispute relating to thisAgreement or its breach, the prevailing party shall be entitled to recover reasonableexpenses. attorney's fees and costs.

13. INDEPENDENT REVIEW

VAUDREUIL has been advised to seek review of this Agreement by independent\egal counsel . and by his signature below, he represents that he fully understands andaccepts the terms set forth herein.

IN WITNESS WHEREOF. the parties pursuant to authority of the respectiveentities have executed this Agreement on the dates set forth in the respectiveacknowledgments below.

WATER MAIN EXTENSION AGREEMENT - BAR CIRCLE'S' WATER INC

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DATED this day of October 2004.

BAR CIRCLE is' WATER COMPANY VAUDREUIL

~ERT N. ~R~S ED. FresiderIf~~

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County of Kootena

On this 02. day of Oetebcr 2004, before lf~ Public. personally appeared ROBERT

N. TURNIPSEED. known or identified to me. to be the f BAR CIRCLE 'S. WATER. that

executed the said instrument. and acknOwledged to me that such BAR ct RCLE 'S' WA TERt executed the

same.

STATE OF IDAHO

IN WITNESS WHEREOF. 1 have hereunto set my hand and affixed my official seal the day andyear in this certificate first above written. #."

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T€."'NI28\(~ b:lIRe I personally appeared RAY VAUDREU1L known or identified tomato be the person(s) whose name

is subscribed to the within instrument. and acknowledged to me that he/she executed the same.

IN WITNESS WHEREOF. 1 have hereunto set my hand and affIxed my official seal the day and

year in thjs certificate first above written.

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PANHANDLE HEALTH DISTRICTHealthy People in Healthy Communities

ENVIRONMENTAL HEALTH2195 IRONWOOD CT.COEUR D' ALENE IDAHO 83814

(208) 667-9513h tto:/ /www2.state.id.us/ohdl

Public HealthMay 10 2004

Ray Vaudreuil1410 Lincoln WayCoeur d' Alene , ID 83814

Re: Country Estates

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The residential subdivision known as Country Estates, consisting of 13 lots, on 67 acres, located in Township52N, Range 04W, Section 22 , in Kootenai County, in the State of Idaho has been reviewed by the PanhandleHealth District (PHD).

Final approval will be given when the following conditions have been met:

PHD receives a letter from the Department of Environmental Quality (DEQ) stating water services meet theState of Idaho Standards.

PHD receives a letter from the water purveyor, (Bar Circle S Water System), stating they will supply water tothe subdivision.

Idaho Code 950- 1334 requirements: The water source must be stated on the plat as part of the ownercertification signature block.

Idaho Code 950- 1326 to 950- 1329 requirements: Two signature blocks must be included on the plat forPanhandle Health District one to approve the plat and one to lift the sanitary restrictions.

Individual septic permits will be issued to qualifying lots in accordance with the State of Idaho Department ofHealth and Welfare Technical Guidance Manual for Individual Subsurface Sewage Disposal.

Blue-Hne copies or the final piat including signature page(s) must be suppiied to the PHO

The sanitary restrictions will be lifted at the time of final plat sign off. Plat approval does not ensure these lotsare buildable. If you have any questions or require additional information, please call Panhandle HealthDistrict at 667-9513.

erelY,

Erik KEnvironmental Health Specialist

Cc: A. Durtschi and Associates, P.O. Box 700 , Hayden Lake, ID 83835Department of Environmental QualityKootenai County Planning DepartmentBar Circle S Water System, P.O. Box 1870 , Hayden Lake, ID 83835

Banners Ferry (208) 267-5558 Kellogg (208) 786-7474 Sandpoint (208) 265-6384 Sf. Maries (208) 245-4556

BAR CIRCLE '5' WATER COPO BOX 1870

HAYDEN ID 83835208 665 9200

208 665 9300 FAX

May 21 2004

Panhandle Health DistrictEnvironmental Health

2195 Ironwood CourtCoeur d'Alene ID 83814

RE: COUNTRY ESTATES

TO: Erick Ketner and all concerned

Bar Circle '5' Water Co is the owner of the water system on the East Side of RamseyRoad with 2 wells. (1) One 16" well and (1) one 6" backup well with two waterreservoirs, (1) 180,000 gallon reservoir and (1) 55,000 gallon reservoir. There is also(1) pumphouse with pressure tanks and motors to insure line pressure.

All properties are on a metered basis and the Idaho Public Utilities Commission controlsthe cost of water.

Upon the signing of a line extension contract and the approval of this contract in itsentirety by the Idaho Public Utilities Commission for a line extension. We will supplywater to 13-5 acres homesites.

The Bar Circle '5' Water Co will buy the materials, install the water system and bill thedeveloper/owner for all costs. According to the construction drawing supplied by thedeveloper's engineer.

For further information please contact me at the Bar Circle '5' Water Co.

Respectfully

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2110 Ironwood Parkway. Coeur d'Alene , Idaho 83814-2648. (208) 769-1422 Dirk Kempthorne, GovernorToni Hardesty, Director

August 17 I 2004

Ray Vaudreuil141 0 Lincoln WayCoeur d'Alene , 1083814

RE: Country Estates Subdivision, Construction ApprovalServed by Bar Circle S Water Company

Dear Mr. Vaudreuil:

Plans and specifications for the Country Estates subdivision have been reviewed. The planswere stamped by Bart O. North, P. , and submitted on June 24, 2004. The plans showconstruction of 2 100 feet of 8-inch water main and service connections for the 13 lots of thesubdivision. The line will be owned , operated , and maintained by the Bar Circle S WaterCompany. The plans and specifications are hereby approved for construction purposes inaccordance with the Idaho Rules for Public OrinkinQ Water Systems and Section 39-118 ofIdaho Code.

The plans do not specify the use of NSF 61 compliant components. All components of thewater system , including meters and service brass (corporation stops , meter setters , etc. ) mustbe certified as meeting NSF 61 requirements. The engineer must ensure that this requirementis met, and the as-built plans must include a statement indicating that the requirement was met.

Inspection of construction activities approved herein must be performed by, or under the directsupervision of a Professional Engineer licensed in Idaho. If major modifications to this accepteddesign are necessary, the design engineer must secure OEQ approval of the changes prior toimplementation. Section 39- 118 of Idaho Code requires that as-built plans , as certified by theinspecting engineer, be submitted to OEQ for review and approval within thirty (30) days ofcompletion of construction. If construction is not completed within one year of the date of thisletter, this construction approval expires.

Sincerely,

Daniel G. Remmick , E. I.T.Associate Engineer

Bart North , PEBbbTurnipseed , Bar Circle S Water Co.Erik Ketner, Panhandle Health DistrictFile: Bar Circle S (8151 24)

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