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<br />NOW THEREFORE, in consideration of the mutual and dependent covenants herein, the parties <br />agree as follows: <br /> <br />1. General. Parks hereby leases to Reclamation up to 2,000 acre feet of storage water per <br />season for the lease payment described in paragraph (2) below, but only for sublease to the <br />CWCS pursuant to paragraph (4) below. For purposes of this Lease and Sublease, the term <br />"season" denotes a period of time from July 1 through November 1 of a calendar year or until <br />such time before November 1, where, as a result of adverse weather conditions, releases are <br />no longer physically possible, such as might occur due to icing conditions. The point of <br />delivery for Parks is the outlet works of Willow Creek dam ("Release Point"). Parks agrees to <br />deliver leased water to supplement Yampa River flows at the rates and times requested, <br />consistent with the provisions of this agreement. <br /> <br />2. Reclamation Deliverables. Within 30 days of execution of this contract, Reclamation will pay <br />Parks $67,480.00 for 1,696 acre-feet of water for supplemental flows released during the <br />period of August 8-29, 2003. For the five year term of this contract, 2004-2008 seasons, <br />Reclamation will pay Parks, no later than December 31 of the year of use, for the actual <br />quantity (volume) of water actually delivered to supplement Yampa River flows, at rates and <br />limes directed by the Service, and as verified by Parks' measuring devices, at the rate of $40 <br />per acre foot, for a maximum of 2,000 acre-feet of water per season. <br /> <br />3. Terms. The Lease and Sublease shall be effective upon execution and expire on December <br />31,2008. <br /> <br />4. Sublease. Reclamation hereby subleases, at no cost to the CWCS, all of its right, title, and <br />interest in the water it leases annually from Parks for use only by the CWCS for instream flow <br />purposes. The CWCS agrees to request administration of water to and through the occupied <br />habitat reach of the Yampa River from the confluence of the Yampa River and Elkhead Creek <br />to Dinosaur National Monument. <br /> <br />5. Availability of Water. Each year, the Service shall notify Reclamation, the CWCS and Parks of <br />its desire to lease water from Steamboat Lake. Said notice shall be provided in writing before <br />any water will be released from Steamboat Lake. In addition, no water will be released <br />pursuant to this lease if at anytime Steamboat Lake Reservoir water elevations measure below <br />8036 feet m.s.1. between July 1 - August 15th and 8035 feet m.s.1. between August 16- <br />October 31. Parks shall use its best efforts and work with the Service in good faith to ensure <br />that sufficient water is available at all times for release to the CWCS, pursuant to the terms <br />and conditions of this Lease and Sublease. <br /> <br />6. Releases. All subsequent requests for releases of leased water shall be made by the Service <br />in writing to Parks and the CWCS pursuant to paragraph 8. Subject to the conditions of <br />paragraph 5, Parks shall store and subsequently release at the direction of the CWCS, <br />pursuant to requests by the Service, up to 2,000 acre-feet of water during the specified season <br />from Steamboat Lake. The rate of release shall not exceed 50 cubic feet per second ("cis") as <br />measured at the Release Point. All requests for releases are subject to the following <br />conditions: <br /> <br />a. During the period July 1- August 15,no more than 25 cfs shall be released from <br />Steamboat Lake, and the rate of release shall not be varied unless approved by Parks and <br />the Division 6 Engineer. <br /> <br />3 <br /> <br />. ."~ "...ch.6L.",,!~~li <br />