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1.6 The Parties desire to establish a framework for designing and constructing the 210 <br /> Pipeline and operating the Water Conveyance System pending the use of the Water <br /> Conveyance System by either of the Ute Tribes. In addition, the Parties desire to define <br /> the terms under which the Tribes may choose to acquire an interest in the 125 Pipeline. <br /> SECTION 2. AGREEMENT <br /> NOW THEREFORE, in consideration of the covenants contained herein, and other good <br /> and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the <br /> Parties agree as follows. <br /> 2.1 LPWWA Capacity and Funding. <br /> a. LPWWA shall use the Water Conveyance System and the 125 Pipeline to convey <br /> water for municipal or domestic purposes, which includes commercial uses, and <br /> those purposes that further municipal or domestic uses of water, which shall <br /> include augmentation or replacement of diversions, provided that any resulting <br /> new use of water is for municipal or domestic purposes, which includes <br /> commercial use. <br /> b. LPWWA shall contribute $ 1,500,000 to the construction of the 210 Pipeline <br /> which amount may be used for engineering and other preconstruction costs, as <br /> well as actual construction costs. It is understood that LPWWA's contribution is <br /> from monies that are anticipated to be received from LDWA. In the event that <br /> LPWWA does not receive any funds from LDWA, LPWWA may seek alternate <br /> funding. LPWWA shall not be obligated to dedicate any funding to the <br /> construction of the 210 Pipeline and to the 125 Pipeline other than the funds <br /> granted or dedicated to LPWWA from LDWA. In the event that LPWWA does <br /> not receive any funds from LDWA or otherwise fails to obtain alternative funds <br /> for the purposes described herein, LPWWA shall be fully relieved of all <br /> obligations described herein, including, but not limited to, the financial <br /> contribution of$1,500,000. <br /> c. LPWWA shall be entitled to 20.6% of the capacity in the 210 Pipeline as finally <br /> constructed, unless the Parties agree otherwise. <br /> 2.2 Additional Tribal Capacity and Engineering. <br /> a. Each of the Ute Tribes shall contribute $1,000,000 to the construction of the 210 <br /> Pipeline, which amount may be used for engineering and other preconstruction <br /> costs, as well as actual construction costs. The Ute Tribes shall not be obligated. <br /> to dedicate any funding to the construction of the 210 Pipeline other than those <br /> Page 2 of 8 <br />