ALP 15

Page 3
2.1.5 Durango Pumping Plant is the pumping plant and appurtenant facilities to be
located adjacent to the Animas River that will pump water from the Animas River through the
Ridges Basin Inlet Conduit into Lake Nighthorse (previously known as Ridges Basin Reservoir)
and/or directly to facilities of the City of Durango.
2.1.6 Funding Agreement is the Funding Agreement and Repayment Contract
between the United States and the Colorado Water Resources and Power Development Authority,
Contract No. 02 -WC -40 -8000, executed November 9, 2001.
2.1.7 General Items of Specific Costs means items of Specific Costs pursuant to the
Funding Agreement that are provided solely for the benefit of purchasers or users of the ALPD
Depletion Allocation, and that benefit all purchasers or users of such ALPD Depletion Allocation, as
defined and described in Paragraph 2.5 of the Marketing Agreement. The General Items of Specific
Costs payable by a purchaser of a portion of the ALPD Depletion Allocation is determined by
dividing the number of acre feet of ALPD Depletion Allocation purchased by 2,600, and multiplying
the result by the total Specific Costs attributable to General Items of Specific Costs.
2.1.8 Initial Option Payment Calculation means the calculation of various charges
that is set forth on Appendix 1 hereto and used to determine the initial option payment to be made
hereunder.
2.1.9 Marketing Agreement means the Marketing Agreement between Colorado
Water Resources and Power Development Authority and Animas -La Plata Water Conservancy
District entered into on October 15, 2002, as the same may have been, and may be, amended.
2.1.10 Prepaid Specific Costs means those Specific Costs prepaid as apart of the up-
front Payment Obligation by the Authority. The Prepaid Specific Costs comprise $580,400 of
Special Items of Specific Costs for the Durango Pumping Plant, and $2,000 of General Items of
Specific Costs for the Ridges Basin Dam.
2.1.11 Special Items of Specific Costs means items of Specific Costs pursuant to the
Funding Agreement that benefit a particular purchaser or user of the ALPD Depletion Allocation, as
defined and described in Paragraph 2.5 of the Marketing Agreement. The Special Items of Specific
Costs payable by a purchaser of a portion of the ALPD Depletion Allocation is determined by
dividing the number of acre feet of ALPD Depletion Allocation purchased by the total number of
acre feet benefited by each Special Item of Specific Costs that provides a benefit to that particular
purchaser, multiplying the result in each case by that portion of the Specific Costs attributable to that
Special Item of Specific Costs, and aggregating each purchaser' share of the various Special Items of
Specific Costs that benefit that purchaser.