Elkhead Reservoir Final Acquisition Agreement

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Page 13 VII. Construction Contingencies A. Construction of the Reservoir Enlargement by the River District is contingent upon the execution of an Amended and Restated Agreement between the River District, Craig, and the Yampa Participants regarding long term OM&R of the Reservoir Enlargement. B. Construction of the Reservoir Enlargement by the River District is contingent upon the River District fording an acceptable construction contractor willing to place a bid at an acceptable price and entering into an acceptable construction contract. An acceptable bid at an acceptable price shall be deemed to include a bid within five (5} percent of the estimated Reservoir Enlargement Cost of Construction. C. Construction of the Reservoir Enlargement by the River District is contingent upon obtaining the necessary permits from local, state, and federal agencies. D. Prior to exercising any right not to construct the Reservoir Enlargement pursuant to paragraphs V II.A., VII.B, and VII.C., herein the River District agrees to consult with the Recovery Program and the parties hereto to discuss the contingency(ies) at issue and explore how' the Reservoir Enlargement project can proceed despite the existence of such contingency(ies). E. In the event the River District exercises a right not to construct the Reservoir Enlargement pursuant to paragraphs VII.A., VII.B., or VII.C. herein, any funds received byT the Ri~Ter District from Reclamation or DNR and expended by the River District for items included in the Reservoir Enlargement Cost of Construction, shall not be reimbursable to Reclamation or D~TR. In the event such funds are spent on real property acquisition, the River District shall reimburse Reclamation and/or DNR the amount of the funds spent on real property or easement acquisition minus a ten percent (10%) management fee. F. The obligations of the Recovery Program through Reclamation contained in this Reservoir Enlargement Agreement are contingent upon DNR executing anon- reimbursable expenditure contract with the River District to pay a portion of the Recovery Program Obligation. Prior to the River District soliciting a bid for construction of the Reservoir Enlargement, the River District shall notify Reclamation and the Service in the e~-ent that DNTR does not execute anon-reimbursable expenditure contract with the River District. Upon notice by the River District to the parties hereto that DNR will not execute anon-reimbursable contract, Reclamation and the Service may cancel this Reservoir Enlargement Agreement or renegotiate the terms thereof v~~ith the River District.