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EXHIBIT A ATTACHED TO WATER LEASE AGREEMENT BETWEEN <br /> UNCOMPAHGRE VALLEY WATER USERS ASSOCIATION AND SHAVANO FALLS <br /> HYDRO,LLC <br /> Schedule of rent in the form of cash royalty based on gross power sales(less wheeling charges) <br /> Year <br /> 1-5 3% <br /> 6-10 5% <br /> 11-15 7% <br /> 16-20 12% <br /> 21 onward 21% <br /> Project Description <br /> The UVWUA proposes to construct a 2.2 MW hydroelectric facility on an existing <br /> irrigation drop structure on the South Canal known as"Drop 5"in the UPA in Montrose, <br /> Colorado (See Figure 1). The Uncompahgre Project was authorized for construction by <br /> Congress in 1903 and subsequently the Reclamation Act of 1938 (52 Stat. 941) which <br /> authorized the Secretary of Interior to enter into contracts for the sale or development of <br /> surplus power generated as part of the project. The South Canal Drop 5 Hydropower <br /> Project is therefore under the jurisdiction of Interior (Reclamation) and is exempt from <br /> Federal Energy Regulatory Commission (FERC)requirements. In addition, recently <br /> passed Public Law 113-24 provides the UVWUA with first rights to issuance of a Lease <br /> of Power Privilege(LOPP)." Following is a detailed project description. <br /> PROJECT DESCRIPTION: <br /> Diversion/Bypass <br /> A diversion/bypass gate will be placed in the existing channel/canal to divert water into <br /> the intake/power house structure. <br /> This project proposes to construct an intake structure to convey irrigation water flows <br /> parallel to the existing South Canal delivery system and into a 2.2 MW hydroelectric <br /> facility. Flows will then be returned to the existing canal and will not affect the delivery <br /> of irrigation water. <br /> Canal System <br /> The portion of the South Canal in the project area is a deteriorating concrete drop <br /> structure built in the mid 1920's which services the UVWUA. <br /> Intake Channel <br /> 10 <br />