17 ‎(6)‎

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

Exhibit C) of its intentions to opt out. The notice shall describe the
proposed terms for acquisition (“proposed terms”) of such User’s
allocation (the “surrendere d allocation”). Each remaining User within the
Upstream or Downstream group, as a pplicable, shall have the right to
acquire a pro rata share of the su rrendered allocation pursuant to the
proposed terms. If a User within the Upstream or Downstream group
elects not to acquire it s pro rata share of the surrendered allocation, then
that share may be acquired pro rata by all of the other members of the
Upstream or Downstream group.
b. Any portion of the surrendered allo cation not acquired by the remaining
members of the Upstream or Down stream group pursuant to paragraph
5(a) above may be transferred by th e departing User to a third party
pursuant to the proposed terms, provi ded, however, that such third party
shall be required to obtain the prior written approval of the State and shall
conform its operation of the storage a llocation to the operational plan and
guidelines for the operation of the reallocated space in Chatfield.
c. Any portion of the surrendered allocati on not acquired as provided in 5(a)
or 5(b) above may be retained by the User or conveyed to the State which
shall hold such space in a reallocation pool available for redistribution by
the State according to such rules and regulations as it may adopt.
d. The State and the User agree that a User may lease or sublease all or a
portion of its allocation upon such term s as User may establish; provided,
however, that all such leases or subl eases shall require the approval of the
State for the purposes of ensuring th at the proposed lessee’s operation of
storage space will not impair the Ch atfield reallocation operational plans
and any environmental or other permitting premised upon such operational
plan.
e. The CWCB and the User acknowledge a nd agree that the operational plan
for operation of the potential realloca ted space in Chatfield is not yet
developed, but that the User’s use of its storage allocation will necessarily
be subject to such plan.
6. User will fully cooperate with reasonab le requests for non-privileged information
as part of the FCSA Study process.
7. User understands there is no certainty that the FCSA Study will result in storage
space being made available at Chatfield Re servoir. Any funds paid for the FCSA
Study are not refundable.
8. If the FCSA Study concludes that the total storage space available for
reallocation is a volume ot her than 20,600 AF, then th e actual volume available
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