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SUMMARY Operation, maintenance, and replacement The operation, maintenance, and replacement (OM&R) of the features constructed as part of the winter water replacement program will be the responsibility of the domestic water supply entities and each partici- pating UVWUA member qualifying for on-farm features. The domestic water supply entities will be compensated for any incressed OM&R costs due to providing replacement water through their systems by selling the water at prevailing domestic rates to the participating water users. The domestic rate will be determined by each domestic water supply entity. Participating water users who are UVWUA members will be compen- sated for the additional expenses associated with the purchase of domestic replacement water by a reduction in their annual UVWUA assessment. The United States will make annual reimbursements to the UVWUA equal to the increase in annual OM&R as a result of the replacement water, less the annual savings to the UVWUA. This annual savings would be a result of removing water from the Uncompahgre Project canals during the nonirriga- tion season. The UVWUA will be obligated by contract to reduce annual assessments (not to exceed $357,000) to its entire membership, thereby mitigating the expenses incurred by the individual UVWUA wster users through purchasing domestic water. The reduction in assessment by the UVWUA will not be any greater than the 1987 payment due to the United States from the UVWUA under existing repayment contracts. Estimated annual OM&R costs are shown in Table S-2 and are based on: annual de- livery of the entire water volume identified for each participating UVWUA water user, and an analysis of historic costs for each domestic water supply entity from 1982 through 1985. Estimated annual OM&R savings are based on an snalysis of UVWUA costs associated with the delivery of the winter stockwater. Table S-2 Estimated annual OM&R costs Water supply Annual cost entity (savings) Tri-County $238,469 Menoken 69,881 Chipeta 47,710 uvwuAl/ (20,900) Net total 335,160 1 / The net total reflects OM&R savings to UVWUA from discontinuing winter stock- water flows through the canals, Administration The expsnded rural domestic water system will continue to be admin- istered by the various existing domestic water supply entities. Contracts will be executed delegating responsibility for all future OM&R work on the off-farm features to the respective wster supply entities. Responsibility S-4 0017J4