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408323 02-22-2017 Page 7 of 16 <br /> industry standards and in such a mariner that it will not materially impair or impeded farming <br /> Practices by Rialm. Rialm shall be paid by the District a royalty for gravel that is removed from <br /> the site by Huerfano County as part of its gravel mining operations. The royalty shall be equal to <br /> the average royalty paid by the Fluerfano County Board of County Commissioners for its other <br /> gravel mining operations with Fluerfano County over the past two years. The District, through <br /> Ituerfano County, shall provide Rialm with monthly accountings of gravel tonnage removed <br /> from the site, including the use of scales anti weight tickets for the hauling trucks. In the <br /> alternative. the parties may agree upon an agreed upon tonnage per designated truck load. with <br /> the accounting to then consist of the nurnber of full truck loads leaving the property vvith gravel <br /> produced frorn the property. <br /> 10. Due Diligence Period. During the first six months ,of the terin of this Agreement, <br /> the District shall test and investigate, at its sole expense, the feasibility of the use of the <br /> Easements for the intended Reservoir. At the end of the six month period, if the District <br /> determines that the developincnt of the reservoir and related infrastructure is not feasible: in any <br /> respect, the District shall have the right to terminate this Agreement upon written notice to <br /> Rialm. Rialm shall reasonably cooperate with the District during the inspection period. Atder <br /> the due diligence period, the District may proceed to construct the Reservoir but is not obligated <br /> to do so until such decision to construct the Reservoir is made by the District in its discretion. <br /> 1 i. Construction ofRgscrvoir, Pump *-station, and Water 1`i':311SntiJ�i()i3 I��e�iiit�. All <br /> construction. maintcnance, and other work performed by the District, including the Tavel <br /> ininin�o operations, shall be performed in a good and workmanlike manner and in compliance <br /> with industry standards and all applicable permits, laws, ordinances, rules and regulations of <br /> governmental authorities having.jurisdiction. <br /> 12. District's Restoration Obligation. Upon completion of any work under this <br /> Agreement, including the gravel mining operations, the District shall reasonably restore. the <br /> Sheep Mountain Property in accordance with generally accepted engineering and construction <br /> standards, including soil compaction for pipelines and the re-seeding of disturbed grassland.areas <br /> (including the Spoils Area) using, native grass species and the re-seeding of disturbed irrigated <br /> areas using hay production species in use by Rialm. Topsoil from the Reservoir Site, Gravel <br /> (:Tusher Area, and Spoils Area will be stripped, stockpiled, and them respread over there areas as <br /> needed for restoration. <br /> 13. Permittin Fhe District anticipates that it will need to obtain permitting; from <br /> Huerfano County for the siting and construction of the Reservoir, Pump Station, and Water <br /> Transmission Pipelines tinder the County's Section 1041 regulations. Rialin agrees to <br /> reasonably cooperate with the District in that process, as well as any other permitting approvals <br /> that the District may need now or in the future for the use and operation of the Reservoir, <br /> including permitting for the gravel mining operation a,pant of the reservoir excavation. <br /> 14. Maintenance of Easement Improvements. The District shall keep the Easements <br /> 7 <br /> 108 <br />