Elkhead Reservoir Final Acquisition Agreement

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hereby acknowledged, the River District, Reclamation and the Service agree as follows: TERMS and CONDITIONS A. Amount Leased. During each annual period from July 1 to February 28 (of the next succeeding calendar year), the River District shall make available to Reclamation and the Service up to 2,000 acre-feet of water (the Short-Term Water Supply) in the Reservoir Enlargement for lease on an "as needed" basis, as determined by the Service, to supplement the Permanent Water Supply. The provision of water to Reclamation and the Service under this Short-Term Water Supply Lease shall be subject to the «~ater shortage provisions as described in Paragraph M and Reclamation's payment obligations as described in Paragraph N. B. Term. The Short-Term Water Supply Lease shall be for a term of twenty (20) years. I~Totwithstanding the date of execution of this Lease by the parties, the Short- Term V~Tater Supply Lease shall commence on the date on which the River District first makes the Short-Term Water Supply, or at least 500 acre-feet thereof, available to Reclamation and the Service, regardless of whether the Service gives notice of its intent to take any water (pursuant to Paragraph F) during that year. Upon expiration of the Short-Term Vtjater Supply Lease, Reclamation and the Service shall then have a first right of refusal for 6 months after the expiration of this Lease to enter into negotiations «-ith the River District for a renewal of the Short-Term Water Supply Lease, if the Service determines that continuation of the Short-Term Water Supply Lease is needed to supplement the Permanent Water Supply. In the event that Reclamation and the Service desire to renew the Short-Term Water Supply Lease, the lease terms shall be subject to renegotiation including: 1. The charge for the v~~ater supply maybe increased or modified based upon the adequacy of the charge to cover the River District's operation and maintenance costs together with capital costs that have not been recovered under the prior Short-Term Water Supply Lease. 2. The need or appropriateness of any conservation plan, state or federal regulation, or other requirement concerning Reclamation's and/or the Service's use of water stored in the Reservoir Enlargement. In the event the Service, in consultation with the Recovery Program, determines that the Short-Term Water Supply herein leased is no longer needed to provide water for endangered native fish species in the Critical Habitat Reach or Reclamation's and/or the Service's authority under Public Lav~T 106-392 is terminated pursuant to Section 3.(h) thereof and upon 120 day v~~ritten notice signed by both Reclamation and the Service to the parties hereto, this Lease and all responsibilities and obligations herein shall be terminated. I:`,20fi4':Clients=.Rimier Districf3l-Elkhead-1028'~4~eements\20 Year Lease fiu~Lwpd December 1'_ 20G~ j