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<br />expansion sa have a right of first refusal co PartiCi. in che consuucaon of the <br />increased capacity. It is che intention of the SWSP Enterprise and the Allottee that all <br />furure participants in che project to increase capacity of the Pipeline shall pay forcheir <br />share of the cost of the Pipeline adjusted. through the date of the calculation as set <br />forth below. Therefore, che cost of che consrruction of che increased capacity shall <br />be added to the original cost for conSlIUcaon of the Pipeline, plus 9 percent (9%) <br />interest. from the date me funds were expended by the Initial Participants through the <br />date of completion of consuuction of the increased capacity. The cotal costs shall be <br />allocated between and among the Participants in the original Pipeline and the <br />participants in che increased capacity projec" Participants in che increased capacity <br />project shall make reimbursement to each of the original Pipeline Participants of me <br />amounts necessary to adjust the contributions of the original Pipeline Participants and <br />the increased capacity participants based upon the new allocation so chat all <br />panicipants will have paid the same amount per unit of capacity. <br /> <br />g. The right of first refusal set fonh above shall require SWSP Enterprise to offer to <br />each of the Participants the opponunlty co participate in the consuuction of the <br />increased capacity on terms and conditions substantially similar co all others <br />requesting to I?articipate in such project. Allonee shall have sixty (60) days from the . <br />receipt of che final terms and conditions of the participation to respond in writing <br />with regard to its desire to participate. Al!onee' s right of first refusal shall terminate <br />only as to those concracts for increased capacity which are completed upon terms <br />substantially similar to those offered to Allottee and to which Allottee did not <br />respond with its desire to participate within the sixry-day period. Unless previously <br />terminated pursuant to this paragraph, Allottee's right of first refusal shall terminate <br />on the last day of the 90th year after execution of this Conrract. <br /> <br />3. UseofCaoacitvandWater. <br /> <br />a. Pipeline capacity allotted herein shall be used onlyforthe transmission of: (i) District <br />water or Subdistrict water from the Fort LuptonlHudson Pipeline; (il) non-District <br />water or Clon-Subdistrict water used by direCt diversion, by exchange or otherwise, <br />only within the boundaries of the District or the Subdistrict or any other property <br />eligible for inclusion within the District or Subdistrict upon che inclusion thereof; <br />(ill) any other water deliverable from the Pipeline with the specific approval of the <br />Board and the approval of the Secretary of the Interior of che United States of <br />America or his designee (if Secretarial approval is required by law or concract); or <br />(iv) any other water with the specific approval of the Board; all for the use of <br />Allottee, its water custOmers, or other Entities permined hereunder. All water <br />incroduced into the Pipeline from sources omer th:m the Fort LupronlHudson <br />Pipeline shall be of a quality at least equal to thaC in the Fort LuptonIHudson Pipeline <br />at the time of the incroduction of said water. <br /> <br />.VlANAGE:vtENTIAGREEMENTS/ALLOTIvlNT.FMG 5 <br /> <br />