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<br />Sep~mbu 2, 20046 <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />1 <br />I <br />J <br /> <br />Water Supply before requesting the release of water from the Short-Term Water Supply, <br />unless all parties hereto agree to an alternative release schedule on a case-by-case basis. <br /> <br />K. Carryover. The River District agrees that Reclamation and the Service <br />shall carry over for use in the next succeeding year, less evaporative losses sustained in <br />the prior year, any Short-Term Water Supply water that was allocated pursuant to <br />Paragraph F and paid for but not actually released at the Service's request for beneficial <br />use by the CWCB, in a July I - February 28 period. Provided, however, that the total <br />quantity of Short Term Water Supply in storage in the Reservoir Enlargement by <br />Reclamation and the Service shall not exceed 2,000 acre-feet at any time. <br /> <br />L. Water Account. The River District shall maintain a separate account of <br />water available to the Short-Term Water Supply. The Short-Term Water Supply account <br />shall be created on the date on which the River District first makes the Short-Term Water <br />Supply available, regardless of whether the Service calls for any water to be released <br />during that year. The Short-Term Water Supply account shall be credited as the <br />Reservoir Enlargement fills in priority as further described in Paragraph M. On March <br />I of each year, the River District shall balance the Short-Term Water Supply account. <br />Any water from the Short-Term Water Supply account that was actually released for <br />beneficial use by the Service or the River District (pursuant to Paragraph G), shall be <br />deducted from the Short-Term Water Supply account. <br /> <br />M. Shortages. On account of drought, errors in operation, operational <br />constraints on the Reservoir Enlargement, legal circumstances, or other causes, there may <br />occur at times a shortage during any year in the quantity of water available to be released <br />from the Reservoir Enlargement, and in no event shall any liability accrue against the <br />parties hereto for any damage direct or indirect, arising therefrom. In the event of a <br />hydrological shortage in the Elkhead Creek basin that prevents the storage space owned <br />by the River District (including the Short-Term Water Supply) and the CWCB <br />(Permanent Water Supply) from filling, then the storage space allocated to the Short- <br />Term Water Supply in the Reservoir Enlargement shall fill after the storage space owned <br />by both the River District (excluding the Short-Term Water Supply) and the CWCB has <br />obtained an actual or paper fill. In any situation other than a hydrological shortage where <br />a shortage may occur (such as an operational shortage), the River District shall apportion, <br />on a pro-rata basis, its available water supply among this Lease and other lease or <br />contract holders with the River District. For purposes of this Lease, the term "pro-rata" <br />shall have such meaning as defined in the Reservoir Enlargement Agreement between <br />Reclamation, the Service and the River District, dated _ day of , 2004. <br /> <br />N. Default ofPavrnent Obligations. The River District shall not make water <br />available from the Short-Term Water Supply to the Service, or the CWCB, during any <br />period in which Reclamation is in arrears in the payment of water rates due the River <br />District as provided herein. In the event that Reclamation fails to pay water rates when <br /> <br />C:\Docwnents and Settings\amj.DWR\Local Settings\Temponuy Internet Files\OLKF9\20 Year Lease 9-1-04 clean.doc <br />