PROJ01887 ‎(2)‎

• Contract/PO #: C150229
• Contractor Name: Logan Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Logan
• Loan Projects - Doc Type: Contract Documents

Prewitt Operating Committee
AGREEMENT-September 1, 2006
Page 1

AGREEMENT

THIS AGREEMENT is entered into by and between the Logan Irrigation District, the
IliffIrrigation District, and the Morgan-Prewitt Reservoir Company, acting individually, and the
Logan Irrigation District, the Iliff Irrigation District, and the Morgan-Prewitt Reservoir
Company, acting through the Prewitt Operating Committee.

1

Recitals.

1.1 The Logan Irrigation District, the Iliff Irrigation District, and the Morgan-
Prewitt Reservoir Company ("Owners") own undivided interests in the Prewitt Reservoir, a
water storage reservoir located in Washington and Logan Counties, Colorado, that stores water
diverted from the South Platte River for beneficial use by the Owners' landowner-members (in
the case of the Logan Irrigation District and the Iliff Irrigation District), and stockholders (in the
case of the Morgan-Prewitt Reservoir Company).

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1.2 Construction of a spillway for the reservoir is requir~ to assure continued
storage in the reservoir will be in compliance with Colorado dam safety requirements.

1.3 Although all the Owners hereto share responsibility for the proper
maintenance of Prewitt Reservoir, the Parties hereto have determined to finance the required
improvements by means of a loan from the Colorado Water Conservation Board ("CWCB") to
the Logan Irrigation District. Repayment of the Loan will be made through the Logan Irrigation
District by the Owners, pro rata to their respective ownership interests in the Prewitt Reservoir.

1.4 In order to effectuate the Parties' agreement with regard to repayment of
the CWCB loan for dam safety improvements at Prewitt Reservoir, and to provide further
assurance to the CWCB of the repayment of the loan made in the name of the Logan Irrigation
District, the Parties hereto agree as follows:

2 Agreement. For and in consideration ofthe premises and the mutual promises
and under testimony herein, the Parties hereto agree as follows:

2.1 Pro Rata Responsibility for Payment for Dam Safety Improvements. The
Parties acknowledge and agree that each Owner is responsible for payment of its pro rata share
of the cost of spillway construction required for dam safety compliance at Prewitt Reservoir pro
rata to its ownership interest in Prewitt Reservoir, as follows:

Logan Irrigation District. 17/31 ownership interest, or 54.8%
Iliff Irrigation District. 8/31 ownership interest, or 25.8%
Morgan-Prewitt Reservoir Company. 6/31 ownership interest, or 19.4%