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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Colorado River Storage Project Power Revenues provided for the purposes of this
Acquisition Agreement for that fiscal year.

D. The United States, its officers, agents, employees, and assigns do not asswne any liability
resulting from the granting of this Acquisition Agreement or the exercise thereof. (DOl
Solicitor will provide text]

E. No Member of or Delegate to Congress or Resident Commissioner or official of the
United States or the State of Colorado shall benefit from this Acquisition Agreement
other than as a water user or landowner in the same manner as other water users or
landowners.

F. It is the intent ofthe parties that this Acquisition Agreement and the Reservoir
Enlargement Agreement be construed together to the extent possible. In the event of any
irreconcilable conflict between the terms of this Acquisition Agreement and the terms of
the Reservoir Enlargement Agreement, the terms of this Acquisition Agreement shall
control.

XII. ASSIGNMENT OR DISPOSITION

In the event the Service, in consultation with the Recovery Program, determines that the
Permanent Water Supply is no longer needed to maintain occupied habitat for endangered
fish in the Critical Habitat Reach of the Yampa River, the CWCB may use or dispose of
the water right and easement conveyed in paragraph II.A.2. herein, Within 120 days of
such a determination by the Service, the parties hereto shall meet to discuss disposition
and use of the Permanent Water Supply, and reallocation of the responsibilities and
obligations of the United States, Reclamation, the Service and the Recovery Program.
The CWCB shall have the right to pay a Pro-Rata share ofthe Reservoir Enlargement's
OM&R costs and thereby continue to utilize the Permanent Water Supply solely for in-
river fish habitat and river flow maintenance and enhancement uses in the Yampa River
Basin.

In the event the CWCB, in consultation with the Service, Recovery Program and
Reclamation, decides not to pay OM&R costs and use the Permanent Water Supply
solely for in-river fish habitat and/or river flow maintenance and enhancement uses, then
the CWCB may assign, transfer, sell, or convey any part or all of the property interests
described in paragraph II.A.2. herein. Any disposition of any part or all of the property
interests described in paragraph II.A.2. herein shall be in accordance with federal
regulations, if any, that are in effect at the time of the disposition and are applicable to the
disposition of property funded with federal contributions. The CWCB hereby gives the
River District a first right of refusal to purchase such property interests or asswne the
obligations which are the subject of the assignment or transfer of such property interests.
Upon receiving notice, the River District shall have ninety (90) days to exercise the first
right of refusal. Closing shall be within thirty (30) days of the River District providing

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