PROJ01935 ‎(3)‎

• Contract/PO #: C150144
• Contractor Name: Upper Platte and Beaver Canal Company
• Contract Type: Loan
• Water District: 1
• Loan Projects - Doc Type: Feasibility Study

2.3 Recharge Ponds.

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2.4.1. Construction. The Company may construct, at its discretion and at
its expense, one or more non-jurisdictional ,dams to create up to two Recharge Ponds upon the
Recharge Site.

2.4.1.1 Pending construction of the Recharge Ponds, the Kroskobs
will cease irrigation ofthe Recharge Site; thereafter, it is anticipated that the Kroskobs may
relocate the center pivot sprinkler currently irrigating the Recharge Site, arid may resume
sprinkler irrigation of some portion of the Recharge Site that is not occupied by the Recharge
Ponds and appurtenances.

2.4.1.2 The location, size, appurtenances, and construction of the
dams and the ponds shall be determined by the Company, provided however, that: (1)
appropriate measuring devices shall be installed to determine the volume of water diverted into
or released from the Recharge Ponds; (2) direct release structures, if any, installed upon the
ponds shall not exceed twenty-four inches in diameter for each pond; (3) if direct release
structllles are included, the Company shall construct a culvert in Badger Creek north of the
ponds sufficient to allow the Kroskobs access to the center pivot sprinkler located in the NW Y4
of Section 36, Township 4 North, Range 57 West; (4) a spillway shall be constructed for each
pond that is sufficient to accommodate storm water drainage to be expected from Badger Creek.

2.4.1.3 Future Enlargement. If the parties conclude, after initial
construction of the ponds is complete, that one or both can be economically enlarged by the
removal of fill material from within the ponds, then the parties may agree to carry out such
enlargement, in which case the Company shall bear the expense of effecting such enlargement,
and it shall remit forty percent (40%) of the gross revenues from the sale of material removed to
the Kroskobs. In the event any future enlargement would require a mining permit or other
. " ;r,n hV :mv governmental agency due to the volume of the materials to be removed
'.'I-fi~<: ngree that all terms and provisions of such enlargement would be
negotialeu U) Ullu LJI..'. ., ,; : ...~.';'1 n y enlargement.

2.4.2. After the Recharge Ponds have been constructed, the parties shall
jointly retain a licensed professional surveyor to survey the Recharge Site in order to create a
metes and bounds legal description thereof, (which shall then be appended to this Agreement as
Exhibit B) and to quantify: (1) the actual acreage taken out of irrigation in the South ~ of
Section 36 for construction and operation of the Recharge Ponds; and (2) any acreage within the
Recharge Site that is placed under sprinkler irrigation after construction of the Recharge Ponds.

2.4.2.1. The parties shall divide the cost of the surveyor's work
equally. Upon completion of such work, the parties shall determine the "Net Acreage" to be
used in determining the guaranteed minimum lease payments for Aprill, 2004 and thereafter
pursuant to Paragraph 2.5.1.2 as fo llows: The Net Acreage shall be determined by subtracting

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