Elkhead Reservoir Final Acquisition Agreement

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Page 10 B. Pursuant to Public Law 106-392 Section 3.(d) and as long as the Permanent Water Supply conveyed to the CWCB is used for Recovery Program purposes and at the direction of the Service and upon the Recovery Program's approval of the River District's annual v~Tork plan as described in paragraph N.C. herein, Reclamation agrees to pay the C~'VCB's portion of the River District's actual OM&R costs based on the Pro- Rata Formula commencing with the date the River District first makes any portion of «jater from the Permanent Water Supply available for Recovery Program purposes, regardless of whether the storage space and water right has been transferred to the CWCB. 1. Upon substantial completion of construction of the Reservoir Enlargement {as defined in the construction contract between the River District and the entity retained to construct the Reservoir Enlargement) the parties hereto agree to meet to prepare and approve an initial OM&R work plan to cover the CWCB's Pro- Rata share of the River District's OM&R expenses until the River District's first annual «rork plan has been submitted and approved pursuant to paragraph IV.C. herein. C. Annually, the River District shall prepare and submit an annual work plan for the upcoming calendar year to the Recovery Program for review and approval. The annual «:°ork plan shall shove the River District's anticipated Reservoir OM&R expenses. The annual work plan shall include estimates for the River District's direct costs, such as labor, materials, equipment, utility, and other costs related to the OM&R of the Reservoir Enlargement. A percentage share of the River District's incremental cost of adding the Reservoir Enlargement to the River District's insurance policy (less any contributions from third parties such as Craig or Yampa Participants) and a management fee in the amount often percent (10%) of the River District's direct costs, shall also be included in the annual work plan. Together, the direct costs, incremental insurance costs, and management fee described on the annual work plan approved by the Recovery Program, minus any contributions from third parties such as the Yampa Participants, shall constitute the OM&R costs, a percentage of which Reclamation is obligated to pay under paragraph IV.B herein. Attached hereto as Exhibit A is a draft work plan spreadsheet, a draft labor-rate spreadsheet, and a sample list of work activities and items that maybe used by the River District in preparing its annual OM&R work plan. Preparation of the annual work plan shall include the following steps: 1. The schedule for and steps involved in the preparation, submission, and approval of the annual work plan shall include the following: a. A meeting among the parties hereto, Craig, and the Yampa Participants to discuss plans for OM&R; I_`?O<.r~=.Client :Riper Disa-ict`~ I-Elkhead-102fs`Ageements`~esenoir Enlargement Agreement final.w~pd Januar 6, 200: