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'.. . MEMORANDUM OF AGREEMENT This Agreement dated this _ day of , 2005, is between the Eagle River Water & Sanitation District ("District") and the Colorado Department of Natural Resources ("Department"), acting on behalf of the Colorado Division of Wildlife ("CDOW") and the Colorado Water Conservation Board (CWCB"), Recitals A. Black Lake No, I is a reservoir located in Eagle County, Colorado near Vail Pass in the headwaters of Black Gore Creek, which is a major tributary to Gore Creek in the Eagle River Basin, The reservoir is adjacent to the Interstate-70 right-of-way on White River National Forest land and is operated by the District as part of the water supply system that serves the Town of Vail, the Vail Mountain Ski Area, and the service area of the Upper Eagle Regional Water Authority through a system interconnect discussed below, B. The original reservoir was created in 1940, by the U,S, Forest Service, with construction of a small earthen dam at the lower end of a small natural lake, This earthen dam provided 44 acre-feet of additional storage for recreational uses, The first enlargement of the Black Lake No, 1 was completed in 1992 by the District's predecessor, the Vail Valley Consolidated Water District ("Consolidated District"), by the construction of a new earthen dam located about 150feet downstream of the original dam, The first enlargement created the total current reservoir capacity of362 acre-feet, 227 acre-feet of which is allocated to the District for . augmentation of instream flows in Gore Creek and other uses in the Eagle River, The Division of Wildlife holds rights to 44.4 acre-feet of water storage in Black Lake No, 1. C. The first ,enlargement of Black Lake No, 1 was completed pursuant to a Memorandum of Agreement dated January 30;1986 (ihe-"1986 MOA"), between the Consolidated District arid the Department. Under the terms of the 1986 MOA, the Department supported the District's enlargement of Black Lake No, I, as described above, and utilization of 73 acre-feet of storage in Black Lake No, 2, providing a total of 300 acre-feet of usage storage for the two Black Lakes (the "300 AF"), In addition, the Consolidated District agreed to stock Black Lakes with up to 5,000 pounds of catchable rainbow trout annually and to assume responsibility for a portion ofthe structural integrity and maintenance ofthe dams, The 1986 MOA also provided the Division of Wildlife would stock Black Lake No 1 annually with 2,500 pounds of catchable rainbow trout. The Department agreed that the terms of the 1986 MOA would mitigate potential instream flow and water quality impacts associated with the Consolidated District's use by exchange of Green Mountain Reservoir contract water. D, The primary purpose of the 300 AF of reservoir storage in Black Lakes is to augment municipal diversions when streamflows in Gore Creek are at or below the Colorado Water Conservation Board instream flow water right levels (16 cfs May 1 st through September 30th, 10 cfs between October 1 and October 31, and 6 cfs November 1st through April 30th), .