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'j got ion in varying degree. Development of a success- ful winter storage program will require that these ditch companies enter into contracts with the District (0) agreeing to forego the exercise of their diversion rights during the winler season so that the \Noter may be stored in Pueblo Reservoir, and (b) agreeing on the manner in which the participating ditch com- panies will share the irrigation season releases of the winter stored waler, In addition, the cooperation and consent of the 7 ditch companies outside the Dis- trict which serve some 58,000 acres below the exist- ing John Marlin Reservoir will be required. One of the most important provisions of the contract is that contained in Article 3 which provides essentially that whenever, prior to the initial delivery of water to the District, the Secretary finds that the construc1ion co~t of the project is expected to increase to the point where the payments required of the District under the enclosed contract, and renewals thereof, will be insufficient to return by the end of the 50-year aufhoriz.ed payment period the District's allocated share of the cost of the project, no water sholl be furnished the District until the District has agreed to satisfactory revision of the payments to be made under the contrad, Since most of the project works to be utilized in delivering project woter to the District will have been completed prior to the initial water delivery date, a reasonably firm basis will exist for determining what revisions, if any, will be needed in the water service charges to be paid by the District. Other contract articles of note are Article 2 which provides for the transfer to the United States by the District of the water rights essential to the construc- tion and operation of the proiect and Article 6 (b) which provides in accordance with the operating principles that municipal users sholl have a first right each year to the imported project water provided it is reserved by payment in advance. By resolution of October 30, 1964, 1he ~istrict Board of Directors approved the contract and author. ized its execution on behalf of the District in sub- stantially the form enclosed, We hove revised the first sentence of Article 23(0) to add the words, "ex- cept for winter storage as hereinbeFore defined." This revision was made to both clarify the. under. standing reached with the District that the excess land limitations of Federal Reclamation Law are applicable to winter storage and to make meaningful the pro. vision regarding judicial determination which was added to .Article 24 at the request of the District. " ,0 10 'I