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<br />WATER LEASE AGREEMENT
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<br />THIS WATER LEASE AGREEMENT, is made this 50..- day of June, 2001, by and
<br />between, Lower South Platte Water Conservancy District Water Activity Enterprise, 100
<br />Broadway Plaza #12, Sterling, Colorado 80751 ,hereinafter referred to as "Lower;" and the
<br />Groundwater Appropriators of the South Platte River Basin, Inc, P,O, Box 974,Fort Morgan,
<br />Colorado 80701, hereinafter referred to as "GASP."
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<br />WITNESSETH:
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<br />WHEREAS, GASP is in need of replacement water to replace out-of-priority
<br />depletions from well pumping and desires to lease water from Lower; and,
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<br />WHEREAS, Lower has an Agreement with Farmers Grain Co, of Julesburg (James
<br />G, Kontny, President), hereinafter Farmer's Grain CO.,dated June _,2001 to drill a well,
<br />hereinafter the "well" on property owned by Farmers Grain, being Lot 1 in the SE1/4 of
<br />Section 20, Township 12 North, Range 44 West of the 6th PM in Sedgwick County,
<br />Colorado, hereinafter the "property." The well is for use as a replacement source to
<br />replace out-of-priority depletions from irrigation well pumping by delivery of water from the
<br />well to the State Line Canal and the South Platte River, The Lower/Farmers Grain
<br />Agreement also provides that Farmers Grain shall lease to Lower 80% of the accretion
<br />credits from recharge ponds located on the property to replace depletions from the well;
<br />and,
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<br />WHEREAS the parties desire to set out the terms of a. water lease agreement by
<br />which GASP may lease water from the well and lease accretion credits to the South Platte
<br />River resulting from the recharge ponds,
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<br />NOW, THEREFORE, in consideration of the mutual promises and covenants of the
<br />parties hereto, it is agreed as follows:
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<br />1. Lower agrees to lease all the water pumped from the well to GASP subject to the
<br />terms and conditions of this Agreement.
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<br />2. Lower shall pay all the costs of drilling, installing a casing and pump, providing an
<br />electrical power hookup to Highline Electric Association and piping the well water
<br />to the State Line Canal, provided that such costs shall not exceed $66,000,00
<br />without approval by GASP, Construction and operation cost estimates are attached
<br />hereto as Exhibit A. Lower shall be responsible for obtaining all well permits or other
<br />approvals necessary to drill and use the well. Lower shall obtain and keep in force
<br />insurance coverage on the well and pipeline. Lower shall operate, maintain, and
<br />repair the well, pump, and pipeline.
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<br />3. This Agreement is contingent upon Lower obtaining financing for all the costs
<br />necessary to drill the well and install the pump, associated equipment and pipeline
<br />described in ~2, The terms of the financing agreement shall be subject to the
<br />approval of both Lower and GASP. This Agreement is also contingent on Lower
<br />obtaining an agreement from the Julesburg Irrigation District and Peterson Canal
<br />& Reservoir Company for use of the State Line Ditch to convey the well water to the
<br />South Platte River.
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<br />F:\KIM\LSP\Augmentation Well\LSPWCD GASP Agreement 6-1-01,wpd
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