For Immediate Release Contact:  James McGrady General Manager Castle Pines North Metropoliatan District (303) 242-3262 7404 Yorkshire Drive Castle Rock, CO  80108

September 3, 2008—Castle Pines North, Colo.—

Castle Pines North Metropolitan District has reached one of its most significant milestones in its procurement of  renewable water.. The agreement with the Parker Water and Sanitation District to obtain 1,500 acre-feet of storage space in the Rueter-Hess Reservoir was finalized August 28, 2008.

Rueter-Hess is the first major step in providing renewable water to the Castle Pines North community. The reservoir, located in southwest Parker, will provide water storage for a proposed water treatment plant that will deliver water to Castle Pines North and Castle Rock. It also provides carry over water storage in the event of drought or water delivery interruption. The reservoir has a total storage capacity of 72,000 acre-feet and is scheduled for completion in approximately three years. The cost to purchase the storage space was $8.25 million.  Wells Fargo provided financing which enabled  the District to issue Certificates of Participation bonds.

“This piece of key infrastructure firmly establishes Castle Pines North Metropolitan District’s commitment to bring renewable water to this community,” said James McGrady, the District’s General Manager, upon announcing the agreement. “The next steps in bringing renewable water to the Castle Pines North Community will include the completion of an environmental impact study for Chatfield Reservoir storage, completion of the Interconnect Pipeline between Centennial and Castle Rock, acquisition of water rights , and adjudication of water rights on Plum Creek.”

The Castle Pines North Metropolitan District is currently forming partnerships with several large water providers in the Denver Metro region to deliver water from the South Platte River to  Rueter-Hess Reservoir. Castle Pines North Metropolitan District is actively pursuing the acquisition of water rights, working in conjunction with the South Metro Water Supply Authority and other major water suppliers. It is hoped that those pieces will be in place by early 2010.

Jack Hilbert, Douglas County commissioner, said, “This is very visionary and crucial for the Castle Pines North Metropolitan District to take this bold step and participate in this reservoir. It will shore up future needs for the Castle Pines North community in a multitude of ways. Participating in a community wide storage facility makes it affordable and better for the regional sustainability solution in that you can share in cooperative agreements for different and diverse water needs.”

When asked how this will benefit the community, Bill Santos, president of the CPNMD Board replied, “A long-term water solution by design must include a water storage component, and to reduce the cost of water delivery that storage must be close to the community. Rueter-Hess is in the perfect location and also, in being a new reservoir, may provide additional water storage as our needs evolve.”

Past president and current member of the Castle Pines North Metropolitan District Board, Ted Lohr, added, “Obtaining storage space is essential for the residents of Castle Pines North and an integral element of the Castle Pines North Metropolitan District’s water management solutions to meet the future water use demands of the community.”