Elkhead Reservoir Final Acquisition Agreement

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Page 9 from propsiding replacement funds for any amount payable under the DItiTR Cost Share Contract. C. Payment of the full Recovery Program Obligation is a prerequisite to the River District executing the deeds transfemng the interests described in paragraph II.A. herein to the C`'VCB. Payment of the entire Recovery Program Obligation is due upon Substantial Completion of the Reservoir Enlargement. Substantial Completion of the Reser~.~oir Enlargement shall be determined in accordance with the construction contract bet«~een the River District and the entity retained to build the Reservoir Enlargement. If a portion of the Reservoir Enlargement Cost of Construction remains undetermined upon Substantial Completion of the Reservoir Enlargement, such portion shall become due and payable at such time as the amount becomes definite. D. In the event that the entire Recovery Program Obligation is not paid in full upon Substantial Completion of the Reservoir Enlargement (or when any portion of the Recovery Program Obligation that is undetermined upon Substantial Completion of the Reservoir Enlargement is reduced to a definite amount), Reclamation, the State of Colorado, or any other entity (not including the River District) may cure such default for a period of up to two (2) years after the date of substantial completion of the Reservoir Enlargement (or when any portion of the Recovery Program Obligation that is unliquidated upon substantial construction of the Reservoir Enlargement is reduced to a definite amount). In the event that Reclamation, the State of Colorado or any other entity has not paid the Recovery Program Obligation in full within the time periods described in this paragraph herein, Reclamation and the State of Colorado shall forfeit any and all funds paid to the River District pursuant to this Reservoir Enlargement Agreement, Grant Agreement No. OS-FG-40-2271, or the DNR Cost Share Agreement, and shall similarly forfeit any and all right, title, or other interest, legal or equitable, in the Reservoir Enlargement, its storage space, or any water rights adjudicated by the River District for use in the Reservoir Enlargement. IV. Reservoir OM&R Costs A. UTpon completion of the Reservoir Enlargement, the River District will be allocated a percentage share of the OM&R costs for the Reservoir Enlargement together «-ith Craig. As provided in the Amended and Restated Agreement between the River District, Craig, and Yampa Participants, the Yampa Participants will pay an annual service charge that shall be used to reduce the OM&R costs for the Reservoir Enlargement. The River District estimates that its percentage share of the OM&R expenses will be 11,750/24;887' - v~~hich fraction is based on the anticipated size of the storage space created by the construction of the Reservoir Enlargement (which will be ov~-ned by the River District) and the anticipated total storage capacity of the Reservoir Enlargement upon completion. In the event that the actual, as-built capacity of the Reservoir Enlargement differs from this estimate, the percentage share of the River District's obligation to pay OM&R costs shall be adjusted accordingly. I:_?Ov~~Clients~.Ri~er District`-~1-Elkhead-1028'_a~eements~~eser~oir Enlargement A~eement final.wpd March 26, 20G~