Tclcphone (606) 573-1985

December 3,2012

Mr. Jeff Derouen, Executive Director Public Service Commission P.O. Box 615 Frankfort, KY 40602

ATTORNEY AT LAW 117 SOlJTH SECOND STREET

P. 0. DRAWER 839 HARLAN, KENTUCKY 40831-0839

Pax (606) 573-6413

PUBLIC SERVICE COMMISSION

RE: Case No. 20 12-00095 Monthly Report from Joint Applicants for Merger for month ending November 30,20 12 and request for Commission to finalize approval of merger

Dear Director Derouen:

Reference is made to my last report to you dated October 3 1,2012 regarding the above referenced Water Districts merger.

The Green Hills Water District Waterworks Revenue Bond, Series 1998 Registered number R- 1 T.J.S. Department of Agriculture has been paid in full; the original of which bond has been received and is in the possession of the Green Hills Water District at its ofice at 609 Four Mile Road , Baxter, KY 40806 a copy of which bond is enclosed. Also, see enclosed a copy of a letter dated November 1,201 2 to Harlan County Judge Executive Joe Grieshop from Barry R. Turner, Regional Director Rural Development, London Area Office, LJ.S. Department of Agriculture enclosing the original bond and confirming payment in full of the bond.

Enclosed is a copy of an executed conveyance of Deeds of Easements and of Lease that has been executed by Green Hills Water District to Black Mountain Utility District and will be signed by BMTJD and recorded with the Harlan County Clerk within10 days of receipt of the Commissions Order finalizing the merger, A copy of the Commissions Order finalizing the merger will be filled with the deeds.

All personal property and assets including customers and all liabilities of Green Hills Water District will be transferred to Black Mountain LJtility District within 10 days of receipt of the Board’s Order finalizing the merger.

The Green Hills Water District and the Black Mountain TJtility District are operating defacto as a merged board, both Boards have their monthly meetings at the same place and time. BMLJD continues to operate the GHWD system per the Parties merger agreement.

Enclosed please find a proposed adoption notice in accord with 807 KAR 5:Oll Section 11 adopting, ratifying and malting its own all rates, rules and administrative regulations of the Joint Applicants in effect at the time of the merger that will be executed by the merged Board within 10 days of receipt of the Commissions Order finalizing the merger.

Request is hereby made that the Commission finalize the Districts merger.

Sincerely,

CC:

Mr. Bob Lee, Chairman Black Mountain Utility District 609 Four Mile Road Baxter, KY 40806

Mr. Ralph Turner, Chairman Green Hills Water District 609 Four Mile Road Baxter, KY 40806

SBD/dla

This conveyance of deeds, easements and leases made and entered into this day of

December, 2012 by and between the Green Hills Water District, by and through its Chairman of its'

Board of Commissioners, Ralph Turner, 609 Four Mile Road, Baxter, Kentucky 40806 hereinafter

designated as the Grantor and the Black Mountain Utility District, by and through its Chairman of the

Board of Commissioners, Rob Lee, 609 Four Mile Road, Baxter, Kentucky 40806, designated as

Grantee:

Witnesseth: That for and consideration of the merger of the Grantor and Grantee, two water districts in

Harlan County, Kentucky, in accord with the Parties joint agreement to merge pursuant to KRS 745363

dated March 2,2012 and in compliance to the Kentucky Public Service Commissions Order dated , a copy of which is attached as Appendix A and incorporated by Reference, the

receipt of which is hereby acknowledged, the Grantor does hereby grant, sell, bargain, convey and quit claim all its rights, title and interests to any land, easements and leases in Harlan County, Kentucky and being more particularly described as follows:

TRACK I

A parcel of land acquired by the Grantor fiom James and Callie Gross by deed recorded in Deed Book 325 at page 321 on August 8, 1996 and in satisfaction of an option to purchase recorded in miscellaneous Instruments Book 22 at page 366 on July 24,1996 that is located on the northwest side of Kentucky Highway 22 1 in Harlan County, Kentucky and more particularly described as follows:

Page 1 of

TRACT II The following parcels of land on the north side of Pine Mountain and above US Highway 421 in

Harlan County, Kentucky acquired by the Grantor from the Harlan County Board of Education by deed recorded on -8 1 in Deed Boo 1982 in Deed Rook 25 1 at page 460

jL6-P 121 / 9 7 8

by deed of correction recorded April 22, scribed as fd1ows:

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Page 2 of _.__

,

Page 3 of

Part of the above property is subject to a lease to Harlan County by the Grantor which lease is recorded in Lease Rook 38 at Page 397 on October 24, 1997 and which lease of property at Bledsoe, Ky. near the Green Hills School is more particulary described as follows:

A parcel of land with mineral rights excepted acquired by the Grantor fi-om William T and Nancy A. Brown by deed recorded on May 6 , 1981 in Deed Rook 247 at page 320 which property is located on Strai&t Creek in Harlan County, Kentucky and more particularly described as follows:

Page 4 of

In addition to the above the CJrantor conveys Grantee all its interests in easements to which it is entitled by proscription or public use and to the following easements that are described as follows:

Being a strip of land 20 .feet wide, across the property of the Grantor, and in addition, a 5 foot strip of land adjacent to the pewtual easement on both sides, as a temporary construction easement, the center line of the easement transferred herein, being more fully described in the plan of Green Hills Water District, reference being made to said plans for the purpose of incorporating a more accurate description.

which right of way easements were acquired Grantor from the following:

Nelson Short and recorded on July 2, 1996 in Easement Book 5, at page 149 Harley Taylor et al and recorded on July 2, 1996 in Easement Book 5 at page 15 1 Melvin Taylor and recorded on July 2, 19996 in Easement Book 5 at page 153 Rice Thompson et a1 and recorded July 2,1996 in Easement Book 5 at page 154 Eugene Short et al and recorded July 2,1996 in Easement Rook 5 at page 156 Cardelio Short and recorded July 2, 1996 in Easement Book 5 at page 158 Stanley Caldwell et a1 recorded July 2, 1996 in Easement Book 5 at page 160 David Brock et al and recorded July 2, 1996 in Easement Book 5 at page 162 Nelson Short and recorded July 2,1996 in Easement Book 5 at page 164 Ronnie Caldwell et a1 and recorded September 16,1996 in Easement Book 5 at page 234 Sandy K. Turner et al and recorded September 16,1996 in Easement Book at page 236 Billie Jean Scearce and recorded September 16, 1996 in Easement Book 5 at page 238 Kermit Creech et al and recorded September 16,1996 in Easement Book 5 at page 240 Nancy Roggs et al and recorded on September, 1996 in Easement Book 5 at page 243 Big Laurel Baptist Church and recorded on September 24, 1996 in Easement Book 5 at page 252 James E. Napier et a1 and recorded on December 11,1997 in Easement Book 5 at page 378 Melissa Napier Holtkamp and recorded on January 27,1998 in Easement Book 5 at page 41 0

Jerry W. Napier et a1 and recorded on January 27,1998 in Easement Book 5 at page 413 Lena Howe and recorded on July 16,1999 in Deed Rook 343 at page 707 Charles Shepherd Jr. et al and recorded on July 22, 1999 in Deed Book 343 at page 707 Jack Hogue et al and recorded on June 13,2000 in Deed Book 35 1 at page 130 Myrtle Turner and recorded on June 13,2000 in Deed Book 351 at page 133 Dorothy Ashley and recorded on June 13,2000 in Deed Book 35 1 at page 136 Hollis Boggs et al and recorded on June 13,2000 in Deed Book 35 1 at page 139 Johnny Witt et al and recorded on June 13,2000 in Deed Book 351 at page 142 Robert Hawkins et al and recorded on June 13,2000 in Deed Book 35 1 at page 145 William Turner et a1 and recorded on June 13,2000 in Deed Book 35 1 at page 148 Carol1 Craycraft et a1 and recorded on June 26,2000 in Deed Rook 35 1 at page 4 18

Page 5 of ________

s A 20 foot water line easement granting ingress and egress and maintenance across the property

of Richard Shane Saylor to Grantor as recorded on July 12,1999 in Deed Book 343 at page 509.

A 20 foot water line easement granting ingress and egress and maintenance across the property of Chester and Maude Lewis to Grantor as recorded on June 13,2000 in Deed Book 35 1 at page 151.

A water line easement across the property at Harlan County adjacent to the Dark Hollow Road and the Ollie Craycraft Road to Grantor fiom Harlan County Fiscal Court as recorded on June 1 1 1981 in Easement Book 2 at page 469.

LEASE AND E A S E ~ N T

The Grantor conveys to the Grantee all its rights to a parcel of property located on the south side of Kentucky highway in Harlan County acquired by 99 year lease fi-om Ann Wilder et al recorded on March 7, 1997 in Lease Book 3 8 at page 226 and which property is more particularly described as

Page 6 of-- ___;_

ASSIGNJMENTS

The Grantor assigns to the Grantee all its rights and obligations in statements of assurances regarding completing a building for filter plant from coal severance economic fund and purchase and installation o three fire hydrants fiom Area Development Fund as recorded on December 7, 1978 in Miscellaneous Instruments book 14 at page 324 and on July 20,1989 in Miscellaneous Rook 18 at page 474.

(all recordings referenced herein are recorded in the Harlan County Clerks Office in Harlan, Harlan County Kentucky)

TO HAYE AND TO HOLD THE S A M E , together with all appurtenances thereunto belonging

unto the Grantee, in fee simple, its successors and assigns forever, with covenant of general warranty.

IN WITNESS WHEREOF, THE GRANTOR has hereunto set its hand and seal the day and year

first above written.

In witness whereofthe Cxantor, the Green Hills Water District by its Chairman Ralph Turner,

day of with authority from its Board of Commissioners has hereunto set its hand and seal this

December, 2012.

Green Hills Water District

- Page 7 of

CONS1 ON CE

We, Grantor and Grantee to the conveyance by deed, easement and lease herein, the

undersigned, chairmen of Green Hills Water District,and Black Mountain Utility District witll authority

from the Commissioners of their Boards, hereby certify that in the conveyance of the above described

property by the Grantor to the Grantee, the consideration is the full consideration paid for the property

and the estimate fair cash value of the real property conveyed is $ 140,000.00. This consideration

statement does not include the value of the utility easements and leases which are exempt under KRS

382.135.

, Chairman Green Hills Water District Black Mountain LJtility District Grantor Grantee

ACKNOWLEDGED, SUBSCRIBED AND SWORN TO before me by Green Hills Water

District by Green Hills Water District by and through Ralph Turner, its Chairperson of the Board of

Commissioners on this day of ,2012.

NOTARY PLJF3LIC Commission Expires: ID#

ACKNOWLEDGED, SUBSCRIBED AND SWORN TO before me by Black Mountain Utility

District by and through, its Chairperson of the Board of Commissioners the day

of ,2012.

NOTARY PUBLIC Commission Expires: ID #:

Page 8 of

THIS INSTRIJMENT PREPARED B Y

Sidney B. Douglass P.O. Drawer 839 Harlan, Kentucky 4083 1 (606) 573-1985

STATE OF KENTUCKY )

COUNTY OF HAF&AN )

I, DONNA HOSKINS, Clerk of the County Court for the County and State aforesaid, certify

that the foregoing -I , was on the day of

,2012, at d p m , lodged for record, whereupon the same with the

foregoing and this Certificate, have been duly recorded in my office in

--9 Page

BOOK NO

Witness my hand this - day of , 2012

DONNA HOSKTNS, CLERK

B Y , D.C.

Page 9 of

Notice

The following are the water rates pre-merger for Black Mountain Utility District and Green Hills Water District:

BLACK MOUNTAN UTILJTY DISTRICT

Surrounding City of Harlan area household rate - see attached Surrounding City of Harlan area business rate - see attached Surrounding City of Evarts area household rate - see attached Surrounding City of Evarts business rate - see attached

GREEN HILLS WATER DISTRICT

Green hills Water District area rates - see attached

Within 10 days of receipt of the Commission's Order finalizing merger the merged Board will adopt the above rates for the above reference areas served.

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