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<br />" ,\ <br />\_,.1 <br />...., <br /> <br />, <br />'- ,'} <br /> <br />maintain, repair and replace the Carter Lake to Broomfield Pipeline under the allotment <br />contracts with the participants therein. <br /> <br />d. The SWSP Enterprise agrees to design, construct, complete, operate, maintain, repair and <br />replace the Pipeline in accordance with applicable federal, state and local laws, including, <br />but not limited to, those Colorado statutes which require posting of performance and labor and <br />material bonds and withholding of retainage. <br /> <br />e. Allottee's rights in the Pipeline shall not include: <br /> <br />i. Rights-Of-Way Acquired in Connection with the Pipeline. All rights-Of-way acguired <br />in connection with the Pipeline shall belong to the SWSP Enterprise subject to the <br />obligation of SWSP Enterpri6e to make reimbursement to the Participants for future use <br />of the rights-Of-way as 6et forth herein. Ose of these rightS-Of-way by any <br />Participant for any purpose other than the Pipeline is at the sole discretion of the <br />Board; except that all participants shall have the right to use the Pipeline rights- <br />of-way at no increased cost to connect to the Pipeline and obtain deli very of water <br />at their respective points of delivery described in Schedule A (or any changed point <br />of delivery), and to cross the Pipeline rights-Of-way with their own utility lines so <br />long as such utility lines do not unreasonably interfere with the operation, <br />maintenance and replacement of the Pipeline. This provision shall not in any way <br />affect the exercise by any participant of its rights in its own property that may be <br />crossed by the rights-of-w~y acquired in connection with the Pipeline. Except as <br />provided above, all Entitie6 shall be reguired to pay the Participants for use of the <br />rightS-Of-way in an amount equal to the greater of a) the appraised value of the right <br />to so use the Pipeline rights-of-way at that time or b) one-half of the actual cost <br />of acguisition of the permanent Pipeline rights-Of-way plus all carrying costs <br />including interest at nine percent (9%) from the date of acguisition of the rights-of- <br />way through the date of conveyance. The payment shall be divided among the <br />Participants based upon their contributions to the original cost of the Pipeline <br />rights-Of-way determined on a SegIlent-by-Segment basis as established' in the <br />percentages set forth on Schedule B-3. <br /> <br />ii. Hydroelectric Power PotenWl. The SWSP Enterprise shall own all rights to generate <br />hydroelectric power at any location along the Pipeline; provided, however, that <br />generation of hydroelectric power shall in no way interfere with the delivery of water <br />to the Allottee. The participants shall have the right to participate in the <br />construction, operation and maintenance of any hydroelectric power generating <br />facilities along the Pipeline by the SWSP Enterprise, and to the extent they do, they <br />shall be entitled to receive revenues generated thereby, but Allottee shall otherwise <br />have no obligation to pay any part of the cost of construction, operation or <br />maintenance of any such facilities. Allottee shall own all rights to generate <br />hydroelectric power at locations along Allottee's pipelines which are connected to but <br />not part of the Pipeline. Allottee shall not construct pipelines, hydroelectric power <br />generating facilities, or any other facilities which are hydraulically connected to <br />the Pipeline without first obtaining prior technical approval for such facilities in <br />writing from the SWSP Enterprise to ensure that such facilities do not interfere with <br />the hydraulic characteristics or operations of the Pipeline, or otherwise potentially <br />damage the Pipeline. Should the Allottee's generation of hydroelectric power orioperation of any other facilities which are hydraulically connected to the Pipeline <br />interfere with the intended operation of the Pipeline, Allottee shall cease operation <br />of those facilities upon receiving written notification of interference by the SWSP <br /> <br />6 <br />