BOARD01632

• Board Meeting Date: 9/13/2004
• Description: ISF Section - Proposed Water Right Acquisition - Elkhead Reservoir Enlargement
• Board Meetings - Doc Type: Memo

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parties acknowledge that the obligations of Reclamation regarding payment of the
Recovery Program Obligation and the River District regarding conveyance of the
interests in the Reservoir Enlargement described in paragraph II.A.2. herein are set forth
in the Reservoir Enlargement Agreement. The State of Colorado's obligation to provide
funds to help satisfy the Recovery Program Obligation are described in the DNR Cost
Share Contract, between the State of Colorado and the River District, dated the _ day of
_,200_, In the event that a default occurs in the obligations of Reclamation or the
State of Colorado to pay the Recovery Program Obligation, any party may appropriate
replacement funds to cure such default.

10. The River District's obligation to perform under this Acquisition Agreement is
specifically subject to River District's rights described in paragraph VII (Construction
Contingencies) of the Reservoir Enlargement Agreement.

II, The parties hereto acknowledge and understand that the River District will use the 5,000
acre-foot water right conveyed herein (the Permanent Water Supply) for piscatorial and
recreational uses within the Elkhead Reservoir Enlargement while said water is stored
prior to a release of the water scheduled by the Service for beneficial use by the CWCB.
The Parties consent to the recreational use of the Reservoir Enlargement by the public,
including on top of or in any water owned by the CWCB and stored in the Reservoir
Enlargement, including but not limited to those recreational uses described in the Special
Warranty Deed from the State of Colorado to the City of Craig dated March 28,1991 and
recorded October I, 2002 at Document No. 2002L 4329 and October 4, 2002 at
Document No. 570795 in the records of the Offices of the Clerk and Recorder for Moffat
County and Routt County, respectively. Similarly, the parties consent to such
management activities by the River District, Craig, the Colorado Division of Wildlife,
and/or the Colorado Division of Parks, or such other contractor as may be designated by
the River District, Craig or the Colorado Division of Wildlife as are necessary to develop,
regulate, enhance, and manage the recreational use of the Reservoir Enlargement, wildlife
and fish populations, and the water stored therein, including, but not limited to, those
management activities described in the Special Warranty Deed from the State of
Colorado to the City of Craig. However, the parties' consent to piscatorial and
recreational uses within the Reservoir Enlargement shall not interfere in any way with the
Service's right to schedule releases from the 5,000 acre-foot Permanent Water Supply
pursuant to paragraph V herein for beneficial instream use by the CWCB. Additionally,
nothing in this Acquisition Agreement shall be construed to interfere with the right of the
Service to review and approve (or deny) the stocking of non-native fish species as
provided under the "Procedures for Stocking Non-native Fish in the Upper Colorado
River Basin" between the Colorado Division of Wildlife and the Service, dated
September 5,1996.

12, The River District reserves the right to develop a hydro-electric power generation
component to the Reservoir Enlargement. In the event that the River District develops a
hydro-electric power component to the Reservoir Enlargement, the parties hereto consent

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