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TERMS AND CONDITIONS <br />Water Enhancement Authority hereinafter referred to as the "Permit Holder" and the <br />Grand Mesa Water Conservancy District, Grand Mesa Water Users Association, Fruitland Water <br />Conservancy District, Crawford Water Conservancy. District, Collbran Water Conservancy District, <br />and the City of Grand Junction will be hereinafter referred to as the "Project Sponsors." This permit is <br />limited by, and subject to, the following terms and conditions: <br />1. The State of Colorado (State), Department of Natural Resources (DNR), and the Colorado <br />Water Conservation Board (CWCB) reserve the right to revoke, suspend or investigate weather <br />modification operations at any or all generator sites named in this Permit for any reason. <br />2. The State, DNR, and CWCB reserve the right to reopen and amend this permit to address any <br />unforeseen concerns or issues related to operations related to the Grand Mesa weather <br />modification permit. <br />3. The Permit Holder and Project Sponsors release the State, DNR, and CWCB of all liability <br />related to all cloud seeding operations. Adequate safeguards are provided in this Permit to help <br />permit holders operate within the natural variability of the local climate. Operations should <br />only augment snowpack to near normal levels in order to protect health, safety, and welfare of <br />the environment and Colorado's citizenry. <br />4. The target areas shall above 8,000 feet mean sea level on the Grand Mesa and the West Elk <br />Mountains southeast of the Grand Mesa. The Permit Holder is approved for up to sixteen <br />generators for this Permit. <br />5. Any subsequent major changes to the number and location of generators shall require the prior <br />written approval by the CWCB. <br />6. The Permit Holder is required to attend and present information on its cloud seeding operations <br />at any of the CWCB Board meetings if requested by the CWCB Director and/or CWCB Staff. <br />7. The Permit Holder and Project Sponsors may not change the Operational Plan, develop <br />agreements with out -of -state water agencies, or receive out -of -state water agency funding <br />without prior written approval from the CWCB. <br />8. Cloud seeding operations must be carried out in conformity with the Operational Plan, except <br />for those operations that are modified by the terms and conditions in this Permit. This Permit is <br />also subject to state statutes and authorities for weather modification in sections 36 -20 -101 <br />through 36 -20 -127, C.R.S. (2010). A new Operational Plan must be submitted to the CWCB <br />prior to seeding each year. <br />9. The permitted project is a commercial operation and the Permit Holder will pay a 2% <br />commercial fee to the CWCB, which is 2 % of the base contract between the Permit Holder and <br />the Project Sponsors for each year of operations. <br />2 <br />