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CONTRACTOR: RIO GRANDE WATER CONSERVATION Agency Name: Water Conservation Board DISTRICT Agency Number PDA Contract No. C150093 Routing Number 03 PDA 000 20 Contract Amount$200,000 CONTRACT THIS CONTRACT, made this August 1, 2002, by and between the State of Colorado for the use and benefit of the Department of Natural Resources, Colorado Water Conservation Board, hereinafter referred to as the CWCB and/or STATE, and Rio Grande Water Conservation District, 10900 Highway 160 East, Alamosa, CO 81101-9518, hereinafter referred to as the CONTRACTOR. FACTUAL RECITALS 1. Authority exists in the law, and funds have been budgeted, appropriated and otherwise made available and a sufficient unencumbered balance thereof remains available for payment as follows: Fund Number 424, Organization YYYY, GBL R093, Appropriation Code CBW, Program WTRC, Object Code 5120, Contract Encumbrance No. C150093 2. Required approval, clearance, and coordination have been accomplished from and with appropriate agencies. 3. CWCB's authority for making this nonreimbursable expenditure: Section 37-60- 121(1)(b)(IV), C.R.S., authorizes the CWCB to make nonreimbursable expenditures from the CWCB Construction Fund with specific authorization from the General Assembly. 4. The Project Summary, attached as Appendix 1 and incorporated herein, contains Contractor Information (Section 1) and Project Description (Section 2). 5. Board approval and legislative approval, if required a. At its November 2001 meeting, the CWCB approved an amount up to $200,000 for participation in the U. S. Bureau of Reclamation in rehabilitation of existing Closed Basin project wells to more efficiently salvage groundwater to be used in meeting Colorado's commitments under the 1939 Rio Grande Compact (PROJECT). b. Pursuant to Bill HB02-1152, Section 9, the Colorado General Assembly authorized CWCB to allocate to the CONTRACTOR an amount up to $200,000 for the PROJECT or so much thereof as may be necessary for rehabilitation or redrilling Closed Basin project groundwater wells in the San Luis Valley, and these moneys shall remain available for the designated purposes until the project is completed. NOW THEREFORE, in consideration of the mutual and dependent covenants contained herein, the parties agree as follows: A. Performance of PROJECT. The CONTRACTOR shall perform the PROJECT in accordance with the Scope of Services attached as Appendix 2 and incorporated herein. B. Time of performance. The CONTRACTOR recognizes that time is of the essence in the performance of its obligations under this contract. Therefore, the CONTRACTOR shall be responsible for the completion of the tasks listed in the PROJECT Scope of Services within the time specified in Section 3 (Time of Performance) of the Project Summary. C. Disbursement of funds. The CWCB shall disburse funds in accordance with Section 4 (Disbursement Schedule) of the Project Summary. Page 1 of 4