Chatfield Assumtion of Rights and Obligations

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ASSUMPTION OF RIGHTS AND OBLIGATIONS OF THE STATE OF COLORADO,
ACTING BY AND THROUGH THE COLORADO WATER CONSERVATION BOARD
BY THE TOWN OF CASTLE ROCK
(Initial Acquisition of Chatfield Reservoir Reallocation Project Orphan Shares)
This Assumption of Rights and Obligations of the State of Colorado, acting by and
through the Colorado Water Conservation Board ("CWCB") by the Town of Castle Rock, a
Colorado home rule municipal corporation, by and through the Town of Castle Rock Water
Enterprise ("Purchaser") ("Assumption") is executed, delivered, and consummated by the
Purchaser pursuant to the terms of the Agreement for Acquisition of Chatfield Reservoir
Reallocation Project Shares from the State of Colorado dated July 22, 2015 ("Purchase
Agreement").
1. Recitals.
1.1 Section 204 of the Flood Control Act of 1950 (Public Law 81-516), as modified
by Section 88 of the Water Resources Development Act of 1974 (Public Law 93-251),
authorized the construction, operation, and maintenance of the Chatfield Dam and Reservoir
Project, Colorado (hereinafter the "Chatfield Reservoir") for flood control and other purposes,
and Chatfield Reservoir has been constructed and is operational.
1.2 Chatfield Reservoir is located in Sections 1, 2, 11, 12, 13, 14 and 23, Township 6
South, Range 69 West, 6th P.M. and Sections 6, 7 and 18, Township 6 South, Range 68 West,
6th P.M. in Douglas and Jefferson Counties, Colorado. It is owned by the United States of
America, was constructed for flood control and other purposes, and is operated by the
Department of the Army represented by the Assistant Secretary of the Army (Civil Works)
("Government").
1.3 Section 808 of the Water Resources Development Act of 1986 (Public Law 99-
662), as amended by Section 3042 of the Water Resources Development Act of 2007 (Public
Law 110-114), authorized the reallocation of storage space in Chatfield Reservoir for joint flood
control-conservation purposes, including storage for municipal and industrial water supply,
agriculture, environmental restoration, and recreation and fishery habitat protection and
enhancement, upon a finding of feasibility and economic justification by the Chief of Engineers,
and, in accordance with the provisions of the Water Supply Act of 1958 (Title III of Public Law
85-500) as amended (43 U.S.C. 390b), the Federal Water Project Recreation Act (16 U.S.C.
4601-12 et seq.), and such other federal laws as the Secretary determines appropriate, upon
agreement of non-Federal interests to repay the cost allocated to such storage.
1.4 The Colorado General Assembly provided the CWCB the authority and ability to
hold storage space in the Chatfield Project and to contract with, and allocate storage to, local
entities who will utilize the reservoir storage space among other powers and duties established in
section 37-60-120.1, C.R.S.
1.5 The Purchase Agreement sets forth the agreement between the CWCB and the
Purchaser that the Purchaser has the option to acquire 1,300.339 acre-feet in the Reallocation
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