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Note 10 - Subsequent Event
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3 Months Ended |
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Nov. 30, 2011
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| Note 10 - Subsequent Event Disclosure | |
| Note 10 - Subsequent Event |
NOTE
10 - SUBSEQUENT EVENT
As
disclosed in a Form 8-K filed on December 19, 2011, on that date,
the Company and the District filed a lawsuit against the State of
Colorado by and through the Land Board. The complaint was filed
with the District Court, City and County of Denver, Colorado. The
Company and the District are claiming that the Land Board
breached, and will breach, agreements entered into by the Land
Board with the Company and the District in connection with a 1996
settlement agreement. Those agreements include the Amended and
Restated Water Lease, dated as of April 4, 1996, between the Land
Board and the District and the Service Agreement of the same date
between the Company and the District. As initially reported in a
Current Report on Form 8-K filed by the Company on November 29,
2011, the Land Board issued a Request for Proposal that included
a draft lease agreement related to oil and gas rights at the Land
Board’s Lowry Range. The Company believes the
draft lease agreement does not adequately address or protect its
exclusive right to provide water to the Lowry Range. As a result
of this breach, the Company and the District are claiming damages
which will be proven at trial.
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