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961079 04/24/2018 08.32 AM <br /> Page 9 of 18 <br /> beneficial use and to demonstrate the taking of a substantial step toward applying water to <br /> beneficial use. These acts were of such a nature as to provide interested third parties with notice <br /> of the nature and extent of the proposed diversion and consequent demand upon the river system. <br /> 3. Waters of the Arkansas River can and will be diverted or otherwise <br /> captured, possessed or controlled, and will be beneficially used by South Forty, and the <br /> conditional groundwater appropriation can and will be completed with diligence within a <br /> reasonable period of time. <br /> g. Permittinl?: The South Forty Ponds are currently permitted under Well <br /> Permit No. 52183-F issued by the State Engineer. South Forty will obtain a new single well <br /> permit in accordance with this Decree and C.R.S. 37-90-137(11)(g). The groundwater right will <br /> be re-permitted by the State Engineer's Office for the South Forty Ponds as the augmented <br /> structures under this plan for augmentation. <br /> 14. Terms and Conditions for Use of Project Water and Project Water Return Flows. <br /> Canon City is eligible to receive an annual allocation of Project Water and/or Project Water <br /> Return Flows, which it may purchase and use after the water is allocated to Canon City by <br /> Southeastern. Southeastern allocates Project Water, and Project Water Return Flows, annually <br /> based on its decrees, principles, policies, procedures, contracts, charges and rules and regulations, <br /> as they may be amended from time to time. South Forty may use Project Water and Project <br /> Water Return Flows allocated to Canon City only so long as the structures being augmented are <br /> within Southeastern's District boundaries and Canon City agrees to provide Project Water and <br /> Project Water Return Flows to South Forty. <br /> Project Water shall be delivered to Canon City at a location and in a manner that is <br /> consistent with Southeastern's applicable Contract with Reclamation and its Allocation Policy as <br /> they may be amended from time to time. <br /> Use of Project Water and Project Water Return Flows will be made consistent with <br /> Southeastern's decrees and Allocation Principles (as they may from time to time be amended), <br /> and such policies, procedures, contracts, charges, and terms as may be lawfully determined from <br /> time to time by Southeastern in its discretion. The Decree in this case does not give South Forty <br /> any rights of ownership or rights to purchase or receive allocation of Project Water or Project <br /> Water Return Flows, but does not alter any existing right South Forty may otherwise have. <br /> This Decree does not modify Southeastern's Fryingpan-Arkansas Project Water rights <br /> decrees. <br /> South Forty will use Project Water or Project Water Return Flows only within <br /> Southeastern's District boundaries as a supplemental supply for the uses decreed herein. South <br /> Forty's augmentation and replacement uses of such water (including replacement of evaporation <br /> loss) will be only to augment or replace depletions resulting from the beneficial use of water <br /> within Southeastern's District boundaries. <br /> Lindner/Aug Plan Appl/t'leadmgs/Mtn for Entry of ROR/Final ROR Decree 2-7?018 Ctean.doc 9 <br />