Final Draft ALP Marketing Supply and Demand Study

Section and upon the transfer of the ALPWCD Interest held by the CWRPDA to one or both of
the entities, the CWRPDA shall be released from its duties and obligations under this Agreement
pro rata to the interests transferred.
2.4 Association Qyeftld C.9MA To a reasonable extent, the Members shall minimia
Association administration and overhead costs for the internal operation of the Association in
carrying out the purposes sct forth in Section 2.2 ( "Association Overhead Costs ") and shall
maximize in-kind services to the Association. The Association Overhead Costs shall be allocated
among the Members in accordance with Paragraph 6.02 of the attached Concepts and Principles
for the Operation and Allocation of the OM &k Costs of the Animas -La Plata Project, attached
hereto as Exhibit A and incorporated. herein ( "Operation Principles ")..
2.5 Project Qwdigns. The Association shall operate the ALP in accordance with
the Operation Principles and will cooperate as necessary with any legally authorized entity to that
cud. The Association shall operate the ALP in accordance with applicable decr ca. compacts
(including negotiated compact accounting principles) and other law.
2.6 ftgicipgtion of the RUM o f ft1gMWgA in the Association. Reclamation, while
not a Member of the Association. will be paying the fixed OM&R costs identified in the
Operation Principles of the Southern Ute Indian Tribe and the Utc Mountain Ute Tribe as set
forth in the Enabling Law. The Parties and Reclamation have consulted and agree to have
Reclamation closely involved in the development ofthe annual fixed OM&R budget. The role
of Reclamation shall be included in the Association's bilateral agreement with Reclamation for
the transfer of OM &R to the Association (defined in Section 2.7). Reclamation's relationship
with the Soutitc -rn Ute Indian Tribe and the Ute Mountain Ute Tribe. and the provisions for
paying the Ute Tribes' OM&R costs as set forth in the Enabling Law, will be further identified
and defined in the Ute 'Tribes' respective water delivery contracts with Reclamation.
2.7 Tjott er of_OM&& It is the purpose of the Parties that the Association carry out
the operation, maintenance, and replacement of the ALP pursuant to an Agreement with
Reclamation transferring such operation. maintenance, and replacement to the Association
("Transfer Agimment" ).
3. THE MANAGEMENT COMMITTEE
3.1 gl_gq W Powers All powers of the Association shall be exercised by or under the
authority of, and the business and affairs of the Association shall be managed under, the direction
of its management committee ("Management Committee ").
3.1 .1 W-mScMnt Committer Activities. On behalf of the Association. the Management
Committee shall: negotiate and otter into the Transfer Agreement; negotiate and enter into other
agreements as necessary for the OM&R of the ALP; hire and supervise such staff and
coonsuttants as nc ccsswary for such OM&R; prepare annual and 3- Year - projected budgets for such
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