PROJ00198

• Contract/PO #: C153668
• Contractor Name: Erie, Town of
• Contract Type: Loan
• Water District: 0
• County: Weld
• Bill Number: SB 90-41
• Loan Projects - Doc Type: Contract Documents

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h. The right of first refusal set forth above shall require SWSP Enterprtse to offer to
each of the Participants the opportunity to partiCipate In the construction of the
Increased capacity on terms and conditions substantially slIni1ar to all others
requesting to participate in such project. Allottee shall have sixty (60) days
from the receipt of the final terms and conditions of the participation to respond
in writing With regard to Its desire to participate, Allottee's right of first refusal
shall terminate only as to those contracts for Increased capacity which are
completed upon terms substantially similar to those offered to Allottee and to
which Allottee did not respond With Its desire to participate wtthin the slxty,day
period. Unless previously tenntnated pursuant to this paragraph. Allottee's
right of first refusal shall terminate on the last day of the 90th year after
execution of this Contract.

3. Use of Capacitv and Water.

a. Pipeline capacity allotted herein shall be used only for the transmission of: (I)
Dlstrtct water or Subdlstrtct water from Carter Lake ReseIVolr: (11) non-Dlstrtct
water or non,Subdlstrtct watef not delivered from Carter Lake ReseIVolr and
used by dJrect diversion. by ~change or otherwise. only Within the boundartes
of the Dlstrtct or the Subdlstrtct or any other property eligible for inclusion
Within the Dlstrtct or Subdistrict upon the inclusion thereof: (111) any other water
deliverable from Carter Lake ReseIVolr With the specific approval of the Board
and the approval of the Secretary of the Interior of the United States of America
or his designee (if Secretarial <lpproval is required by law or contract): or (Iv) any
other water With the specific approval of the Board: all for the use of Allottee. Its
water customers. or other Entities permitted hereunder. All water introduced
Into the Pipeline from sources other than Carter Lake Reservoir shall be of a
qualJty at least equal to that IJ:1 Carter Lake ReseIVolr at the time of the
Introduction of said water.

b. Water delivered through the Pipeline shall only be beneficially used. whether the
use Is by direct diversion. by exchange or otherw1se. in accordance With the
terms of this Contract: the Water ConseIVancy Act of Colorado. C.RS, l!l! 37-45-
101 et seQ" l!37-83-106; the rules. regulations and policies of the Board; and
the Colorado-Big Thompson Project Repayment Contract between the Dlstrtct
and the United States of America dated July 5. 1938. If applicable. or as
otherwise allowed With the Bo/lI'd's consent.

4. SWSP Enterprise Ownership. Operation and Maintenance.

a. The SWSP Enterprise shall own. construct. operate. maintain. replace and
repair the Pipeline. subject to t:be Allottee's perpetual. vested right to possession
of that portion of the capacity of the Pipeline allocated herein. To this end the
SWSP Enterprise shall be responsible for all planning. scheduling. right-of-way
acquisition. construction and engineering contracts relating to the Pipeline: any
required permits. Impact statements and other procedural or substantive .
matters necessary for completion of the Pipeline; and all operation.
maintenance, and replacement of the Pipeline.

b. The SWSP Enterprise covenants to prudently design. construct. operate.
maintain. repair and replace We Pipeline In good faith for the benefit of the
Allottee and the other PartiCipants. SWSP Enterprise acknowledges that Allottee
Is relying upon this covenant of SWSP Enterprise in executing this Contract and
in making payriJ.ent of all amOl.mts due hereunder. SWSP Enterprise and the,

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