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<br />, <br />.1 ' <br /> <br /> <br />. . <br /> <br />TERMS AND CONDITIONS <br />By accepting Permit # 2003-01, the Permit Holder and the Project Sponsors (Gunnison County, Dos Rios <br />Water System, Upper Gunnison River Water Conservancy District, Crested Butte Mountain Resort, Town of <br />Crested Butte, Scenic River Tours, City of Gunnison, Gunnison County Stock Growers Association, Crested <br />Butte South Metropolitan District) agree to all of the terms and conditions in this permit. This permit is <br />limited by and subject to the following terms and conditions: <br /> <br />1. The State of Colorado, Department of Natural Resources, and the Colorado Water Conservation <br />Board ("CWCB") reserve the right to revoke, suspend or investigate weather modification operations <br />at any or all generator sites named in this permit for any reason. Gi 36-20-119, C.R.S. (2002)). <br /> <br />2. The Project Sponsors will pay a 2% commercial fee required by Title 36 Article 20 of the Colorado <br />Revised Statutes. This commercial fee is an annual payment that is 2% of the contract price between <br />the Permit Holder and the Project Sponsors. This commercial fee is a check payable to the CWCB <br />and is due at the beginning of each cloud seeding season (November 15 of every year) that the <br />Project Sponsors operate a program over the life of the permit. The first year of the program the <br />commercial fee is due May 1, 2003. (936-20-113, C.R.S. (2002)). <br /> <br />3. The Permit Holder must carry out the Project in conformity with the Operational Plan Exhibit A and <br />the "Meteorological Feasibility Assessment of Cloud Seeding Potential for Snowpack Augmentation <br />in the Higher Elevations of Gunnison County" attached hereto as Exhibit B, except for those <br />operations modified by these terms and conditions. This permitted project is also subject to the <br />statutes and authorities for weather modification in Colorado (9 36-20-116, C.R.S. (2002) and SB 96- <br />90). <br /> <br />4. By accepting this permit, the Project Sponsors and the Permit Holder release the State of Colorado <br />and its employees from any liability for damages or claims as a result from cloud seeding operations <br />in Gunnison County for permit 2003-1. (9 36-20-122 and 36-20-124, C.RS. (2002)). <br /> <br />5. This permit is subject to changes by the Department of Natural Resources and CWCB if any of the <br />terms and conditions in this permit is insufficient to provide accurate suspension criteria for the target <br />area. The State may amend or add new suspension criteria to this permit at any time. The permit <br />suspension criteria are designed to augment snowpack to acceptable levels and will be monitored and <br />reported on by the Project Sponsors and Permit Holder. (9 36-20-114 and 36-20-115). <br /> <br />6. The target areas shall include Gunnison County. The Permit Holder shall operate the generators <br />generally above 8,500 feet in elevation in the Gunnison River Basin. The target areas are confined to <br />those requested in the application and presented at the public hearing. (9 36-20-116). <br /> <br />7. The Permit Holder shall conduct seeding only under conditions when seeding is likely to be <br />beneficial in the target areas. The Permit Holder shall refrain from indiscriminate seeding activities <br />or "overseeding", which may be grounds for revocation of this permit. The drought years of 1999- <br />2002 produced a deficit that can only be replenished through a sustainable program that augments <br />snowpack up to average and moderately above average. <br /> <br />8. The Permit Holder shall use no more than 18-20 manually operated ground based generators for this <br />permit. The Permit Holder shall provide the director of the .CWCB with a map showing specific <br />locations of each generator, the name, address, and telephone operator before seeding commences in <br />each year. (936-20-116). <br /> <br />2 <br />