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<br />DRAFT <br /> <br />. <br /> <br />regulate, enhance, and manager the recreational use of the Reservoir Enlargement, wildlife and fish <br />populations, and the Stored Water therein, including, but not limited to, those management activities described <br />in the Special Warranty Deed from the State of Colorado to the City of Craig, <br /> <br />12. The River District reserves the right to develop a hydro-electric power generation component to the Reservoir <br />Enlargement. In the event that the River District develops a hydro-electric power component to the Reservoir <br />Enlargement, the Parties hereto consent to the use of the Parties' water through the hydro-electric power <br />generation facility, in conjunction with a requested release of water by the Parties from the Reservoir <br />enlargement, without payment or compensation. <br /> <br />B. Short Term Water Supply Sublease <br /> <br />1. The Lease provides up to 2,000 acre-feet of additional water annually for the Short-Term Water Supply for the <br />benefit of endangered native fish species in the Yampa River, The Lease will be implemented through a 20- <br />year contract with the River District, and Short Term Water Supply water will be reserved by the Service for <br />release on an "as-needed" basis, as outlined in the Lease, <br />2. Pursuant to the tenns of the Lease, tile Illlfellll Reclamation will pay the River District for any water reserved <br />for release from the Short-Tenn Water Supply. The CWCB will have no financial obligation with regard to the <br />Short-Term Water Supply or the Lease, <br />3. Reclamation and the Service, on behalf of the Recovery Program, hereby sublease, at no cost to the CWCB, all <br />of their right, title, and interest in the Short Term Water Supply water -leased annually from the River District <br />for use by the CWCB pursuant to the Lease to monitor and protect to and through the Critical Habitat Reach of <br />the Yampa River, The River District hereby consents to said sublease. <br />4. If the Lease is renewed pursuant paragraph B therein, this sublease also may be renewed by letter agreement <br />signed by the parties hereto. <br /> <br />m. <br /> <br />TERMINATION OF SHORT TERM WATER SUPPLY SUBLEASE <br /> <br />. <br /> <br />In the event the Recovery Program, the Service and Reclamation determine that the Short-Term Water Supply <br />provided for in the Lease is no longer needed to support instream flows within the Critical Habitat Reach, or in <br />the event the Lease terminates as provided for in paragraph B. therein, and upon written notice to the parties <br />hereto, this sublease and all responsibilities and obligations identified in paragraph ILB herein shall be <br />terminated, <br /> <br />IV. <br /> <br />OPERATION, MAINTENANCE AND REPAIR OBLIGATIONS (OM & R) <br /> <br />A. The OM & R obligations associated with the Elkhead Reservoir Enlargement are more fully described in (1) <br />the Reservoir Enlargement Agreement and (2) the Amended and Restated Rilserveir Operatien Agreement <br />between the River District, the City of Craig, and *.0 emiti.811 eall~ve?j refeneEl te as the Yampa Participants, <br />dated . The Recovery Program, through Reclamation, shall be responsible for payment of its Pro Rata <br />share of the River District's OM & R costs associated with the storage space easement described in paragraph <br />Il.A.2 herein, The CWCB shall have no obligation to fund annual OM & R costs for the Elkhead Reservoir <br />Enlargement. <br /> <br />. <br /> <br />B. The payment of OM & R charges becoming due as provided in paragraph IV .D, of the Reservoir Enlargement <br />Agreement \Vitll tile D,S. DejlllF!mllftt ef mtener, ReslaBllltillfl, lIRa lhe Servise Cellseming Ellffiella Reeeryeir <br />Enlargement te Faeili!&te ReeevilfY of EndBflgered Fis!! Sjleaies iB the YatlIJlll }lj-Iilr Basin is a condition <br />precedent to receiving benefits under this Acquisition Agreement. The River District shall not make water <br />available to the CWCB, or the Recovery Program; through the Reservoir Enlargement facilities during any <br />period in which Reclamation is in arrears in the payment of OM&R expenses and until all funds due and owing <br />for the current year (and past years, if any) are paid in full together with interest. If; EIIIf'..ng lhe perioa iB wffieh <br />tile Reeovery Pregmm is in effeat, in the unlikely event the Recovery Program through Reclamation fails to <br />appropriate and pay OM&R amounts for a period of five (5) years, the CWCB shall forfeit to the River District <br /> <br />6 <br />