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WATER LEASE AGREEMENT <br />This Water Lease Agreement is made and entered into this day of <br />' , 2016, by and between the Lessor Arkansas Groundwater Users Association, <br />and/or assigns, P.O. Box 11446 Pueblo, CO 81001 (hereinafter "AGUA") and Lessee <br />FREMONT Paving Inc., P.O. Box 566, Canon City, CO 81215 (hereinafter "FREMONT") <br />WITNESSETH: <br />WHEREAS, this Agreement pertains to a lease of 31 AF of fully consumable <br />water delivered to the Arkansas River by means of recharge ponds located on the <br />Excelsior Ditch. <br />WHEREAS, FREMONT may have a need to lease up to 31 acre-feet of fully <br />consumable water for the time period starting April 1, 2016 and ending March 31, 2018. <br />WHEREAS, FREMONT is currently developing its own augmentation supply <br />which may decrease its need to lease augmentation water from AGUA. <br />NOW THEREFORE, in consideration of the mutual promises contained herein <br />and other good and valuable consideration, the receipt and sufficiency of which is <br />hereby acknowledged, the parties agree as follows: <br />1. Lease: AGUA hereby leases up to 31 AF of fully consumable water delivered to <br />the Arkansas River by means of recharge ponds located on the Excelsior Ditch. <br />2. Term: The term of this lease between AGUA and FREMONT shall commence on <br />April 1, 2016 and shall continue in full force and effect through March 31, 2018. Any <br />water not delivered by March 31, 2018 will revert back to AGUA. There shall be no <br />automatic extensions of this lease or any right hereunder unless the parties enter into a <br />written renewal or extension agreement. AGUA shall have no obligation for delivery of <br />water either for direct use or to cover post -plan depletions after March 31, 2018 as part <br />of this agreement. <br />3. Rentals: The rental payment obligation from FREMONT to AGUA shall consist of <br />FREMONT paying to AGUA $325 per AF of fully consumable water. The amount <br />actually purchased shall be determined based on records from the Colorado Division of <br />Water Resources. All water provided by AGUA sources used to cover depletions from <br />Evans #2 during the term of this lease shall count against this lease. The 31 acre-feet <br />will be billed on a monthly basis if and when it is used to cover Evans #2 depletions. <br />