20 ‎(8)‎

• Board Meeting Date: 7/22/2009
• Description: WSP Section - Animas La Plata
• Board Meetings - Doc Type: Memo

d. Tn operate ~nd maintain th~ ALP in accordance with and pursuant ta the
tcrms and c;Qnditivns af any separate sc.°n+i~e or ather agreemcnts with the LJnited States nr
c~t~~rs percaining to the ~M&R vf the ALP.
c. To acquire, ~ald, leas~ [as lessor ar lessee), se1~ or othenvise dispose of
any real ~r persanal prapc:rty utilized For OM&R of the ALF.
Tn sue and l~e sued in i#s awn name.
g. To adopt, by re~solution, palicies ~nd0or prt7cedures rr~spectir~g th~ exercis~
~f its ~~wers ~nd carrying out ot its purpose.
h. Ta exercise any Qther powers that are essential t~ t~c provisi~n nf
~'unctivns. ser~i~es, or facilities by the Asso~iatian anc~ that are specified in this
~~reement nr in ax~y se}~axate agreement ar agr~eem~nts ampng the Assa~iation, the
Parties. the Llnited States, or others.
?.3 Mem~rs~'-i~.
'I'her~ sh~ll be six {5} Memhers af the ~ssaciation, and the initial MemE~ers sht~il hc the
Parti~s ta this Agr~:ment.
?.3.1 Additional Member. ~t ihe time af executinn of this EL~reement, the Statc
of'C'oloradt~ has s~nt exercised its statutory entitl~ment ta acquire an interest in tn~: ~1I.P. If'it
~cyuires an interest nt' at leas~ 78~ acre feet of annual depietions (or i.560 acrc fect Uf ALP water
supply) na lacer th~n ~r+hen the Final CQSt Al~acatiat~ [as def~ned itt the ~nablin~ Law} has Faeen
cnmpleted, then the 5tate entity that owns the interest s~all6ecome a Party ta this A~reement ~nd
a Mcmber of the Assaciati~n, subject tn the Associatian's ~~ceptance nfEhat ~ntity's applical~lc
cvnvact provisians, and thc num~r af Members shall be enlazged tp se~en {7y.
?.3.? "I'ransf~rs of ALP Interests by Members. It is ~nticipated that Members may
assi~n ~r athcrwise transfer some ar all oftheir interes#s in the ALP ta third parties. ~111 Parties
and Memhers shall recei~c written noti~e vf a transfer af'an~r interest in thc ALP vr in the
Associatic~n by a transferring PartylMember within 30 days vf such transfer. 'I'hc writt~n notice
c~f transfer must include Lhe status vt the transferor's and transferee's vating rights in the
l~ssoci~ti~n as a r~sult aF the transfer. Qnr.e a trar~sferor di~ests its inten:si entirely in the AI,P.
thc transfcror shall no ionger be a Memt~er in ths Assaciation and its successor{s) shall hold the
membership ri~hts. A PartyTMember may he r~ieased af any nr all af its ohligatians and duties
under this Agreemcnt oniy upan re~eipt af written oansent from all the then-e:cisting Members
and such tonsent shall rco~ b~ unr~asonably withheld as lan~ as the transferee can ~iemanstrat~ it
is financially ~apab~e nf assuming the a6ligatians set farth zn this Agrcement basect on the
reasana~le application ~t'standards normally apptied by persons operatin~ waier stvrage projects.
'1'he Parties a~ree that the City o~' Duran~n and ALPWCO meet the f siancial crit~ria of this
Page 3 oF I D