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DRAFT — 6 -1 -2012 <br />Discussion Concepts <br />It is in the best interest of the Animas -La Plata Operations, Maintenance and <br />Replacement Association (`Association ") and the Southwestern Water Conservation <br />District ( "SWCD ") to maintain the full extent of the diversion and storage rights <br />contained in the conditional decrees for the Animas -La Plata Project ( "Conditional <br />Decrees "). <br />2. The facilities constructed pursuant to the 2000 Settlement Act Amendments ( "2000 Act <br />Project ") do not meet all of the purposes or needs which were to be met by the facilities <br />contemplated in the Conditional Decrees. <br />3. SWCD and the Association will work together to maintain diligence on the full extent of <br />the diversion and storage rights recognized in the Conditional Decrees. <br />4. SWCD will consult with the Association as it seeks to meet the unfulfilled purposes of <br />the Conditional Decrees in order to avoid any conflicts with the water supply for the 2000 <br />Act Project that might arise from the development of additional facilities pursuant to the <br />Conditional Decrees. <br />The Association will cooperate with the SWCD as it seeks to meet the unfulfilled <br />purposes of the Conditional Decrees. <br />6. The Association and SWCD will consult prior to taking any action that might affect the <br />Conditional Decrees (including the draft State Protocol) or the interests of the other party. <br />7. The Association entered into the IGA in order to ensure a firm supply of water from the <br />2000 Act Project for all of the members of the Association by, among other things, (1) <br />operating the Settlement Project to provide a joint pool of water and (2) encouraging and <br />protecting uses directly from the Animas River. <br />8. SWCD supports the need to secure a firm supply of water for the 2000 Act Project <br />consistent with the IGA . In partial furtherance of that objective, SWCD agrees: <br />a. The use of water rights under the Conditional Decrees for purposes other than <br />providing a water supply for the 2000 Act Project shall be subordinate to the use <br />of water for the 2000 Act Project. <br />b. SWCD will not divert water pursuant to its rights under the Conditional Decrees <br />unless the By -Pass flows are being met at the Durango Pumping Plant. <br />C. To develop the remainder of the water rights under the Conditional Decrees in a <br />