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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DRAFT 9-1-04
B. Modification of Interest to be Conveved. The parties recognize that the interests
in the storage space in the Reservoir Enlargement and the water rights to be conveyed to
the CWCB, pursuant to paragraph II.A. herein may be modified by letter agreement
between the parties and the CWCB if one of the following events occurs:

1. Elevation-Area Caoacitv Curve. If the River District's as-built
elevation-area capacity curve table of the Reservoir Enlargement shows the
enlargement area to be less than 11,750 acre-feet, then the Recovery Program
through the CWCB and Reclamation, in consultation with the Service may, in
their discretion:

a. agree to accept the conveyance to the CWCB ofa 20/47ths
interest in the capacity created by the Reservoir Enlargement as shown on
the as-built elevation-area capacity curve; in such case the storage
capacity and water right interests to be conveyed pursuant to paragraph
H.A. herein shall be adjusted accordingly; or

b. accept agree to the conveyance to the CWCB ofthe
storage space and water right interests described in paragraph H.A. herein,
but agree to adjust the Recovery Program Obligation and pay a percentage
share of the Reservoir Enlargement Cost of Construction equal to the
percentage of: 5,000 acre feet divided by the number of acre feet of
storage space created by the construction of the Reservoir Enlargement as
determined by the as-built elevation-area capacity curve.

2. Cost Overruns. If the actual Reservoir Enlargement Cost of
Construction exceeds $20,498,787.00, then the Recovery Program through the
CWCB and Reclamation, in consultation with the Service may, in their discretion:

a. choose not to pay more than the Recovery Program
Obligation, but agree to accept the conveyance to the CWCB of adjusted
storage space and water right interests in an amount equal to 11,750 acre
feet multiplied by (the Recovery Program Obligation divided by the actual
Reservoir Enlargement Cost of Construction); or

b. agree to accept the conveyance to the CWCB of the
storage space and water right interests described in paragraph H.A. herein,
but agree to adjust the Recovery Program Obligation and pay 20/47ths of
the .actual Reservoir Enlargement Cost of Construction.

3. Nonoavment. In the event that one of the events described in
paragraph 11.B.1. or H.B.2. herein occurs, the Recovery Program through
Reclamation, the Service and/or the State of Colorado shall commit to pay a full
Pro-Rata share to the River District (as described in paragraphs H.B.1.a. or

C:\Documents and Settings\amj.DWR\Local Settings\Temporary Interne~~oir Enlargement Agreement ~~1-04 clean-doc