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i October through March non-irrigation season, for each river mile in distance between Hite and such alternative Delivery Point(s) (such distance calculated to the nearest one-tenth of a mile), or by such other amount as determined by the Division Engineer for Water Division No. 1 (such office or its replacement the "Division Engineer") or as specified in an applicable statute or decree from a court of applicable jurisdiction. The product of this calculation shall represent the amount of avoided transit loss in acre-feet, which Aurora shall be entitled to retain. 4. Source and Quality of Reclaimed Wastewater. The Reclaimed Wastewater to be provided by Aurora under this Agreement shall, at Aurora's discretion, consist of Aurora's reusable municipal return flows to the South Platte River, any fully consumable portion of changed irrigation water rights owned by, or available to Aurora, fully consumable water diverted pursuant to decrees entered in 03CW414, 03CW415 and 06CW104, and any other legal source of Reclaimed Wastewater available to Aurora. Under no circumstances shall this Agreement be interpreted to mean that Aurora must supply potable water should the sources set forth in this paragraph be unavailable. Aurora does not warrant or guaranty any water quality standards with respect to the Reclaimed Wastewater to be delivered as provided for under this Agreement and Lessee hereby waives any such warranty or guaranty. 5. Use of Reclaimed Wastewater. Lessee shall have the right to use and reuse to extinction the Reclaimed Wastewater delivered under this Agreement for water supply purposes, including replacement and exchange purposes in connection with any substitute water supply plan approved by the Colorado State Engineer's Office, and augmentation and exchange purposes in accordance with any augmentation plan decreed by the Colorado Water Court; provided that such use is consistent with the terms of this Agreement and all applicable laws, rules and regulations. Notwithstanding the foregoing provision, however, this entire Agreement shall be void if the Reclaimed Wastewater is used in any manner that benefits United Water and Sanitation District, East Cherry Creek Valley Water and Sanitation District or Farmers Reservoir and Irrigation Company. 6. Water Rights Accounting. Lessee will be solely responsible for any and all reporting and accounting required by the Colorado State Engineer, the Division Engineer for Water Division 1, the Water Commissioner for Water Commissioner District 2, or any other lawful authority after Aurora makes its delivery of the Reclaimed Wastewater as provided for under this Agreement. This responsibility includes, but is not limited to, Lessee's withdrawal of the Reclaimed Wastewater from the South Platte River (if any) and Lessee's use of the Reclaimed Wastewater. In addition to the report requirements set forth in Section 3(b) above, Aurora will provide any and all reporting and accounting required by the Colorado State Engineer, the Division 1 Engineer, or any other lawful authority concerning proof of the reusability of the Reclaimed Wastewater and conveyance of the Reclaimed Wastewater to the Delivery Point(s). 7. Subordination Clause. This Agreement shall be made expressly subordinate to any present or future city use of effluent for purposes of augmentation, exchange, or any other use which is or will be of greater direct benefit to Aurora and the users of its water delivery system, as well as to the water supply obligations which Aurora has incurred or will incur through any of the following: (a) the March 2, 1981, Water Agreement with the City of Arvada, Colorado and any renewals thereof, (b) the October 25, 1993, Effluent Agreement with the State of Colorado, Division of Parks and Outdoor Recreation and any renewals thereof, (c) its obligation pursuant to 00941 1\0310\1749535.3 3