Town of Castle Rock Agreement for Aquisition

defined in the Water Storage Agreement and for which CDNR shall pay 8.99
percent of the costs to the Government. The percentage of Joint-use RRR&R costs
constitutes a proportionate share of the Reallocation Project storage space to the
total usable storage in Chatfield Reservoir.
2.5.3. Specific O&M means speciiic annual operation and maintenance
expenses as those expenses are defined in the Water Storage Agreement and for
which CDNR shall pay 100 percent of the costs to the Government.
2.5.4. Joint-use O&M means the joint-use annual operation and
maintenance expenses of Chatfield Reservoir as those expenses are defined in the
Water Storage Agreement and for which CDNR shall pay 8.99 percent of the costs
to the Government. The percentage of Joint-use O&M costs constitutes a
proportionate share of the Reallocation Project storage space to the total usable
storage in Chatfield Reservoir.
2.6. Water Storage Agreement means the Agreement Between the
Department of the Army and the Colorado Department of Natural Resources for
Reallocation of Water Storage Space, Recreation Modifications, and Compensatory
Mitigation Features at the Chatfield Dam and Reservoir, Colorado dated October 9,
2014, by which CDNR acquired the right to use for water storage purposes the
20,600 acre-feet of storage space referenced above, subject to the terms stated
therein.
3. Acquisition. Purchaser will acquire the Optioned Orphan Shares as follows:
3.1. Initial Acquisition. In accordance with the further terms and
conditions of this Agreement, the CWCB will execute, and Purchaser will assume
and accept, a partial assignment of the CWCB's rights and obligations pursuant to
the Water Storage Agreement corresponding to 87 acre-feet of Orphan Shares (the
"Initial Acquisition") at the Initial Closing, as set forth in Paragraph 3.1.2, below:
3.1.1. Initial Payment Amount. The total cost of the Initial
Acquisition as of the date of this Agreement is $609,000, comprising the Base Water
Charge for the Initial Acquisition. The parties recognize that the Reallocation
Project has not been completed and therefore the Total Project Cost has not yet
been determined and therefore the amount set forth in this paragraph does not
include the Reconciled Payment Obligation. The parties agree that if the
Reconciled Payment Obligation for the Reallocation Project is determined prior to
the Initial Closing herein, then the total cost of the Initial Acquisition will be
adjusted prior to closing to reflect any Reconciled Payment Obligation required for
the Initial Acquisition. If the Reconciled Payment Obligation is not determined
before closing, then after closing the Purchaser will be responsible to pay any
Reconciled Payment Obligation attributable to the Initial Acquisition when such
Reconciled Payment Obligation is quantified and becomes due.
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