MOA of Southeastern Colorado Water Activity Enterprise and Reoperation Storage Participant (2)

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I REOPERATIONS MOA WEST OF PUEBLO C. Following the PSOP Report, representatives of the Enterprise, the Participant and others have participated in a Storage Implementation Committee, which developed a report dated April 19, 2001 (the "Implementation Committee Report"). III. Reoperations Plan and Process. A. As described in greater detail in the PSOP Report and the Implementation Committee Report, the Reoperations plan is designed to allow for more flexible operation of the carryover storage space allocated to the Participant and other potential Reoperation Participants in the Fry -Ark Reservoirs pursuant to Principle E of the Allocation Principles adopted by the District on November 29, 1979, and confirmed by the District Court of Pueblo County in Civil Action No. 40487 by decree dated December 18, 1979 (the "Allocation Principles "). In particular, the Reoperations plan is designed to allow the Participant and other Reoperation Participants each to store either allocated Fryingpan - Arkansas Project water ("Project Water ") or non - Project water in its own allocated portion of such carryover storage space under a long -term contract, in the manner described below. Other eligible entities may elect to participate in Reoperations by executing an MOA with the Enterprise on term substantially similar to this MOA; such other participants, together with Participant, are referred to herein as the "Reoperation Participants." B. Nothing in this MOA shall be construed to preclude Participant or others from executing or continuing to execute temporary if -and -when contracts for storage of non - Project water in the Fry-Ark Reservoirs. Nothing herein shall impair or otherwise interfere with existing contracts with a term of greater than one year executed prior to January 1, 2001, including (without limitation) contract numbers 00XX6C0049 and 00D6C0048 between the Board of Water Works of Pueblo, Colorado, and the U.S. Bureau of Reclamation or the renewal of contract numbers 00XX6C0049 and 00D6C0048 pursuant to the authority that provides the legal basis thereof. C. As set forth in the PSOP Report, implementation of Reoperations is intended to result in each Reoperation Participant's execution of a long -term contract with the United States, and possibly with the Enterprise or the District, for use of that Reoperation Participant's Reoperation Storage space to store non - Project water (a "Reoperation Contract," as distinguished from temporary if-and-when storage contracts). An initial step in implementing the Reoperations plan is determining -2-