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Lessee has the first right of refusal to renew the lease for such successive periods as the <br />• Lessor deems appropriate, upon such reasonable terms and conditions as maybe <br />prescribed by the Lessor, unless otherwise provided by law at the time of expiration of <br />any such period. If Lessee declines to renew the lease, the Lessor is free to lease water <br />produced from the well to other parties. <br />• <br />H. Mod'ificatiou of Lease. The Lessor has the right to modify this lease at intervals of no <br />Less than five years, for the purpose of updating the pricing of water. Water prices shall <br />be based upon an independent appraisal performed in accordance with U.S. Department <br />of Interior appraisal standards. The lease may also be modified for the purpose of <br />updating the terms and conditions in the lease to reflect current conditions of the down- <br />hole infrastructure and wellhead infrastructure: The Lessee has the right to request <br />modification of this lease at Less than five year intervals to include provisions that will <br />.assist the District in more eff ciently using water produced from th'e well as part of its ©, <br />integrated water supply system, or for other purposes that; will improve the managemen~~ <br />of the well. ~.~,~ <br />~~~. <br />c.,a <br />SECTION 2: WATER RIGHTS. <br />A. Rights to Nontributary Groundwater -Furnishing of water under this- lease shall <br />under no circumstances become the basis for a permanent water right. Lessor will <br />maintain ownership of the current water right decreed in case number 81 CW 192, <br />Colorado Water Division 2, and any changes to that water right decreed in case number <br />97 CW 169, Colorado Water Division 2. In addition, Lessor shall retain ownership of <br />any water rights decreed pursuant to future applications for expanded non-tributary <br />groundwater rights. Lessor shall make a good faith effort to secure supplemental water <br />rights for non-tributary groundwater that will cover the Lessee's foreseeable demand for <br />grouundwater during the teen of tlus lease. Lessor shall proceed diligently to apply for <br />supplemental nontributary groundwater rights for the subject well. <br />B. Rights to Return Flows -Lessor shall hold any water rights based upon rettu-~i flows <br />resulting from first usage ofnon-tributary groundwater. Lessor and Lessee agree to <br />cooperate to quantify, decree, utilize, and manage return flows resulting from the first <br />usage ofnon-tributary groundwater. <br />Upon establishment of returns flow credits, Lessee shall be entitled to 30% of said. return <br />flows for the period of this leases and any subsequent renewal. of this lease. Lessor <br />agrees to reimburse Lessee 50% of Lessee's engineering and legal fees incurred in the <br />establishment of the return flows. Reimbursement shall be made by credit against any <br />sums due to the Lessor by Lessee. Lessee shall provide complete documentation of <br />Lessee's legal and engineering expenses incurred in the establishment of return flow <br />water rights. The documentation shall be of sufficient detail to allow a frill and fair audit <br />of such expenses by the Lessor. The sharing of costs by the Lessor and Lessee shall be of <br />reasonable costs as agreed upon by the Lessor and Lessee prior to the expenditure. <br /> <br />c.s'- <br />C"7 <br />s,>, <br />~-~; <br />~~ <br />.,_~ <br />;1~ <br />~~ ~_' <br />.,.F 9 <br />~"~ <br />iw"'i <br />• <br />