17 ‎(6)‎

• Board Meeting Date: 9/17/2008
• Description: WPFM Section - Chatfield Reallocation Study - Letters of Commitment
• Board Meetings - Doc Type: Memo

1. The User is herby allocated 400 AF (o r 1.9417%) of permanent storage space in
Chatfield Reservoir (based on an assume d total available space of 20,600 AF) if
such total storage space becomes available as a result of the FCSA Study. If all
obligations of this Letter of Commit ment are fulfilled, upon execution of this
agreement, the percentage allocated to User, as shown on Exhibit C, attached
hereto, shall not be diminished.
2. User states that its use of the reallocate d storage space in Chatfield Reservoir will
have the following type and location of use:
a. Type of use: municipal
b. Location of use: service area of Mount Carbon Metropo litan District
User agrees that it will limit its use of the reallocated storage space in
conformity with these descriptions.
3. The State finds that User presently has adjudicated water rights or is capable of
acquiring and holding water rights allowing st orage in Chatfield Reservoir, is an
existing and recognized governmental ent ity, mutual ditch company or private
water company or provider presently provi ding water service to its customers and
is financially capable of meeting the fi nancial obligations in this Letter of
Commitment for local funding a nd storage space acquisition.
4. Parker paid an initial de posit of $25.00 per acre-foot of allocated storage space
for its proportional share of the local FC SA Study costs, and User has reimbursed
Parker for all amounts paid by Parker fo r the 400 acre feet of reallocated space
acquired by User and described in paragr aph 1 above. The original estimate of
local costs for completion of the FC SA Study was $515,000. These funds will be
paid to the Colorado Water Conservati on Board’s Chatfield Reallocation FCSA
Study Account (xxxFCS) and such account shall be held by the State for the
exclusive use of this project . User acknowledges that th e local costs of the FCSA
Study may exceed $515,000.00 estimate and that there may be a need for
additional local matching funds to complete the FCSA Study. User agrees to pay
up to an additional $10.00 per acre-foot of allocated storage space within 30 days
of a request by the State. If the final local costs of completion of the Study are
less than the amount deposited by the Users with the State, the State shall refund
to each User its portion of the excess funds paid to the State.
5. User may opt out of this Agreement and its share of reallocated space at any time
in accordance with this paragraph 5. The State and the User agree to the
following additional terms regarding cancellation, lease or assignment of a User’s
storage allocation:
a. If a User wishes to opt out and ca ncel its storage allocation, it shall
provide written notice to the State an d all of the Colorado Water Entities
in that User’s group (Upstream or Downstream Group, as identified on
24123