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REeEf VED <br /> MAY 232019 <br /> WATER RE,So11ES <br /> RC WATER LEASE AGREEMENT STATE EN(3 URC <br /> rM Coto <br /> NEER <br /> This Water Lease Agreement is made and entered into this day of January, <br /> 2019, by and between Lessor Stonewall Water, LLC, 2920 N. Academy Blvd., Ste 200., <br /> Colorado Springs, CO $0917 (hereinafter "Stonewaill and Lessee Arkansas <br /> Groundwater Users Association, and/or assigns, P.O. Box 11446 Pueblo, CO 81001 <br /> (hereinafter"AGUA"). <br /> WITNESSETH: <br /> WHEREAS, this Agreement pertains to a lease of certain of the 3,333 total <br /> shares in the Excelsior Irrigating Company(hereinafter the"Excelsior Shares"). <br /> WHEREAS, AGUA owns 1,792 of the Excelsior Shares or a 53.765 percent <br /> interest (the "AGUA Shares") and Stonewall owns 1,541 of the Exoelslr Shares or a <br /> 46.235 percent interest(the"Stonewall"Shares'. <br /> WHEREAS, AGUA is a water users association in the Arkansas River basin <br /> who's organizational purpose is to obtain and provide augmentation water for its <br /> members to allow them to pump ground water considered tributary to the Arkansas <br /> River. <br /> WHEREAS, AGUA's member wells operate under an annually approved <br /> replacement plan approved by the State Engineer. <br /> WHEREAS, in Case Number 04CW62, District Court, Water Division 2 <br /> (hereinafter "Change Case"), the parties hereto, or their predecessors in interest, <br /> adjudicated a change in use of all the water associated with the Excelsior Shares to <br /> include augmentation uses. The purpose of the Change Case was to allow AGUA to <br /> use the Excelsior Ditch Water as an augmentation supply in its replacement plans. <br /> WHEREAS, the parties have jointly filed an application with the Division 2 Water <br /> Court for storage of the historical consumptive use components of the changed <br /> Excelsior Ditch Water for purposes which include augmentation, in Case No. <br /> 16CW3093. While AGUA is a co-Applicant in Case No. 16CW3093, AGUA has not to <br /> date acquired any interest in the Stonewall Springs Reservoir Complex, as described in <br /> that application. <br /> WHEREAS, Stonewall has also applied for a plan for augmentation in pending <br /> Case No. 16CW3094, Water Division No. 2, utilizing the Stonewall Shares as a source <br /> of augmentation supply, including through its membership in AGUA and as a result of <br /> the lease described herein. <br /> WHEREAS, Stonewall desires to lease up to the entirety of the Stonewall <br /> 1 <br />