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AGREEMENT BETWEEN THE SOUTHERN UTE INDIAN TRIBE, <br /> THE UTE MOUNTAIN UTE TRIBE,AND THE LA PLATA WEST WATER <br /> AUTHORITY <br /> This Agreement is entered into this 13th day of August , 2013, by and between the <br /> Southern Ute Indian Tribe ("SUIT"), the Ute Mountain Ute Tribe ("UMUT"), and the La Plata <br /> West Water Authority("LPWWA")(collectively the"Parties"). <br /> SECTION 1. RECITALS <br /> 1.1 LPWWA previously entered into agreements with the SUIT and UMUT (collectively <br /> "Ute Tribes") to fund the 2009 construction of the Intake Structure to allow the <br /> withdrawal of water from Ridges Basin Reservoir (sometimes known as Lake <br /> Nighthorse)for use west of the Reservoir. <br /> 1.2 The Parties own the Intake Structure. The construction of the Intake Structure cost <br /> $5,669,000. The SUIT contributed $3,000,000. The UMUT contributed $1,500,000. <br /> LPWWA contributed $1,169,000. As a result of their respective contributions, the <br /> Parties own the following interests in the Intake Structure: <br /> a. SUIT- 52.9% <br /> b. UMUT- 26.5% <br /> c. LPWWA - 20.6% <br /> 1.3 LPWWA is the Licensee under a License Agreement with the Bureau of Reclamation to <br /> utilize land in the Animas-La Plata Project for the construction and operation of a water <br /> system intake structure ("Intake Structure") and a raw water pipeline,utilities and access <br /> road from the Intake Structure on Lake Nighthorse to County Road 210 ("210 Pipeline") <br /> (together the "Water Conveyance System"(which references include all accompanying <br /> interests including but not limited to licenses,easements and right of ways)). <br /> 1.4 LPWWA desires to construct the 210 Pipeline in 2014. <br /> 1.5 LPWWA and Lake Durango Water Authority("LDWA")are negotiating an agreement to <br /> permit LDWA to utilize a portion of LPWWA's capacity in the Intake Structure and to <br /> develop, or assist in developing the 210 Pipeline. In addition, LPWWA and LDWA <br /> intend to develop a pipeline that extends down County Road 210 and County Road 141 to <br /> the intersection of County Road 125 and County Road 141 ("125 Pipeline" (which <br /> reference includes all accompanying interests including but not limited to licenses, <br /> easements and right of ways)). <br /> Page 1 of 8 <br />