Elkhead Reservoir Final Acquisition Agreement

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Page 8 II.B.2.b. herein) within one hundred twenty (120} days of the River District giving notice thereof to the Recovery Program. In the event that the River District does not receive a commitment to pay the full Pro-Rata share of the actual Reservoir Enlargement Cost of Construction within one hundred twenty (120) days, the CV4'CB shall receive a reduced amount of storage and associated «Tater rights as provided for in paragraphs II.B.l.a. or II.B.2.a herein. C. The rights the River District intends to convey to the CWCB, pursuant to paragraph II.A. herein, are expressly subject to the provisions in paragraphs II.A.7. and 8. of the Acquisition Agreement. D. The water storage easement and v~~ater storage rights conveyed herein are subject to the terms and conditions of the Amended and Restated Agreement, the terms of which are incorporated herein. The CWCB's use of the water storage easement and water storage rights herein to be conveyed shall be exercised consistent with the provisions of the Amended and Restated Agreement. III. Recovery Program Obligation A. Reclamation on behalf of the Recovery Program shall fund a portion of the Recovery Program Obligation to the River District through a separate Grant Agreement (Grant Agreement I`To. OS-FG-40-2271) with the River District. The Grant to the River District is subject to the execution of this Reser~.Toir Enlargement Agreement. 1. If the final Reservoir Enlargement Cost of Construction estimate generated from detailed engineering or construction bids is more or less than the current estimate of $20,498,787.00, or the actual Reservoir Enlargement Cost of Construction is more or less than the current estimate of $20,498,787.00, then the Recovery Program Obligation and River District Obligation shall be adjusted using the Pro-Rata Formula. However, except as provided in paragraph II.B. herein, the Recovery Program Obligation shall not be exceeded by more than 5 percent of the Recovery Program Obligation estimate of $8,722,888.00, or a total of $9,159,032.00. B. The parties acknowledge that a portion of the Recovery Program Obligation is anticipated to be paid by the Colorado Department of Natural Resources pursuant to a separate non-reimbursable expenditure contract between DNR and the River District, executed on the 2nd day of February, 2005 ("DNR Cost Share Contract"). The River District hereby consents to a portion of the Recovery Program Obligation under this Reservoir Enlargement Agreement to be paid by DNR and agrees to reduce Reclamation's obligation to pay a portion of the Recovery Program Obligation accordingly. I~Tothing in this Reservoir Enlargement Agreement shall be construed as limiting the CWCB, Reclamation, the Service, the Recovery Program, or any other entity I:'2004~lients~Ri~-er Di~tricr3l-Elkhead-1028'_Agreements~Reservoir Enlargement Agreement final.wpd Riarch 26. 200