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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due, Reclamation shall be charged a late fee in the amount ten (10) percent ofthe amount
owed to the River District. An additional late fee in the amount often (10) percent of the
amount owed (Plus past incurred late fees) shall be assessed in each subsequent year that
Reclamation is in arrears. .

O. Sublease/Assignment. The River District hereby consents to Reclamation
and the Service, on behalf of the Recovery Program, subleasing or otherwise assigning all
of its right, title, and interest in the Short-Term Water Supply to the CWCB to monitor
and protect water releases from the Short-Term Water Supply to and through the Critical
Habitat Reach to assist in the recovery of endangered fish in the Yampa River. In the
event of any sublease or assignment, Reclamation shall guarantee the payment
obligations pursuant to Paragraph E. Reclamation and the Service shall not sublet, sell,
donate, loan or otherwise dispose of any of its rights to the Short-Term Water Supply to
any party other than the CWCB without the express written consent of the River District,
which consent shall not be unreasonably withheld.

P. Commingling. The lease of the Short-Term Water Supply by Reclamation
on behalf of the CWCB shall not be construed to subject the Reservoir Enlargement, or
water rights decreed for use in the Reservoir Enlargement, to the Reclamation Reform
Act of 1982.

Q. Water Oualitv. The River District shall have no obligation to
Reclamation, the Service, or any other party, and makes no warranties or representations
to Reclamation or the Service concerning, the quality of the water that will constitute the
Short-Term Water Supply.

R. Use Per Lease and Law. The Service's and/or the CWCB's use ofthe
Short-Term Water Supply shall in all instances be in accordance with the terms of this
Lease and in accordance with Colorado law concerning water rights and water use,
together with all decrees related to the storage of water in the Reservoir Enlargement.

S. Notices. All notices pursuant to this Lease shall be made in writing,
posted through the mails of the United States, or delivered to the parties at the following
addresses:

General Manager
Colorado River Water Conservation District
201 Centennial
P.O. Box 1120
Glenwood Springs, Co 81602
Telephone: [phone]

With a copy to:

C:\Documents and SeUings\amj.DWR\Local Settings\Temponuy Internet Files\OLKF9\20 Year Lease 9-1-04 clean.doc

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