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G. In connection with the CRWCD Contract and to enable certain limited out -of- <br />priority diversions from the Blue River, the Division Engineer, Water Division 5, approved an <br />administrative exchange ( "Administrative Exchange") on the tenns set forth on Exhibit C <br />attached hereto (such terms, as may be amended from time to time, are referred to herein as the <br />"Exchange Approval Terms "). <br />H. BVR receives electric service through Mountain Parks Electric, Inc. ( "MPE "). <br />MPE has extended, or intends to extend, electric service to portions of the Property, including the <br />Subject Site, in connection with the Project. <br />I. Section 9 of the Access Agreement provides, in part, that Kirkland has no rights <br />to use any water, water rights or related improvements of Blue Valley Ranch or Galloway SG, or <br />to construct or install any water diversion structures, pumping equipment, pipelines, reservoirs or <br />other water storage facilities on the Subject Site, except as may otherwise be documented in a <br />separate, written agreement. Such section also provides that Kirkland is solely responsible for <br />obtaining and supplying water and other utilities needed for the Operations. <br />J. BVR, Galloway SG and Kirkland desire to enter into this Agreement to provide <br />the terms, conditions and limitations upon which (i) the right to use a source of water will be <br />made available for the Mining Rights to be exercised and the Operations to be performed by <br />Kirkland pursuant to the Access Agreement, (ii) Kirkland may install and construct pumping <br />equipment, a water pipeline and a storage reservoir, to transport water across the Property and <br />store such water on the Subject Site solely for use in connection with the Project, and (iii) <br />Kirkland may utilize electric service provided by MPE to BVR in support of Kirkland's exercise <br />of the Mining Rights, performance of the Operations, and performance of this Agreement. <br />AGREEMENTS <br />In consideration of the Recitals and the mutt ual promises and agreements that follow, the <br />parties hereto agree as follows: <br />Water Rights. <br />(a) Use of Bureau Industrial Water. Subject to the terms, conditions and <br />limitations set forth herein and .elsewhere in this Agreement, BVR grants to Kirkland the right to <br />use all of the Bureau Industrial Water pursuant to the Bureau-Contract and the Amendment <br />solely in support,of the Mining Rights, the Operations and the Project. Kirkland's right to use <br />Bureau Industrial Water pursuant to this subsection (a) is subject to .the continued effectiveness <br />of the Bureau Contract and ,the approval and continued effectiveness of the Amendment, and is <br />further subject to all terms, conditions and limitations set forth in the Bureau Contract and the <br />Amendment, as each may "subsequently be amended from time to time. <br />(b) Use of CRWCD Water. Subject to the terms, conditions.and limitations <br />set forth herein and elsewhere in this Agreement, BVR grants to Kirkland the right to use- all of <br />the CRWCD Water pursuant to the CRW CD Contract solely for use in support of the Mining <br />Rights, the Operations and the Project. Kirkland's right to use water pursuant to this <br />2 <br />2104398.3 <br />