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a <br />4.015 Allocations of Project water supply shall be based on the current water year <br />without regard to the volume of water used by a Project participant in previous <br />years. <br />5 Water Supply Shortages. The Management Committee shall establish procedures for <br />the allocation of the Project water supply in times of shortage consistent with the <br />following principles: <br />5.01 The Project shall be operated to deliver to all Project participants their respective <br />Statutory Water Allocations whenever possible. <br />5.02 Shortages in the Project water supply shall generally be allocated among the <br />Project participants in proportion to their Statutory Water Allocations, taking <br />account of the needs of all Project participants and the desirability of securing a <br />firm, reliable water supply for present and future use by Project participants. <br />5.03 Whenever River Water is not sufficient to satisfy the flow requirement for all the <br />Project participants requesting the delivery of all or a portion of their Project <br />water. the River Water shall be allocated to those Project participants that can use <br />Project water directly from the river. In such case, the flow requirement of those <br />Project participants that cannot use Project water directly from the river shall be <br />satisfied from storage. <br />5.04 Whenever the River Water is not sufficient to satisfy the flow requirement of all <br />of those Project participants that can use Project water directly from the river, the <br />River Water shall be allocated by the Management Committee among those <br />Project participants, taking account of Paragraph 5.02 and the facts slid <br />circumstances at the time in order to optimize the Project water supply to all <br />Project participants. Any shortage may be satisfied from storage consistent with <br />Paragraph 4.03. <br />5.05 The Management Committee may establish annual conservation measures in an <br />effort to maintain carryover storage for subsequent years. <br />6 Fixed OM &R Costs. The Management Committee shall establish procedures for the <br />assessment and collection of fixed OM &R costs consistent with the following principles: <br />6.01 Each Project participant shall be assessed annually its projected share of the <br />annual fixed OM &R costs and shall pay such charges within a reasonable time <br />period in advance of the water year. <br />6.02 Fixed OM &R costs shall be allocated as follows: <br />Southern Ute Indian Tribe 35.5% <br />Page 4 of 7 <br />r--- <br />