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15. Pueblo City Charter Provision. This Agreement involves the use of water outside the <br /> territorial limits of the City of Pueblo and is specifically limited by the provisions of the City <br /> Charter governing such use. The City Charter provides, among other things, that: "The Board of <br /> Water Works shall have and exercise all powers which are granted to cities of the first class by <br /> the Constitution and Laws of the State of Colorado, except the power to levy and collect taxes <br /> directly or indirectly. Surplus water may be supplied to territories outside the City until same is <br /> needed by the inhabitants of the City." <br /> 16. Determination of Water Availability by Pueblo Water. Pueblo Water has determined <br /> that the welfare of Pueblo and its inhabitants requires a stable water supply not only for its <br /> citizens but also for the other customers of Pueblo Water putting to beneficial use the water <br /> belonging to Pueblo Water. Therefore, the extent to which limitation of water delivery outside <br /> Pueblo may be necessary to enable Pueblo Water to provide adequately for users inside Pueblo is <br /> a fact to be determined by Pueblo Water in the exercise of its reasonable discretion from time to <br /> time as occasion may require. <br /> 17. Interruption of Water Supply Beyond Pueblo Water's Control. While it is the <br /> purpose of Pueblo Water to maintain a water supply adequate to meet the needs of tine <br /> metropolitan area logically dependent on Pueblo Water for water supply and for its temporary <br /> contract customers, there are many elements that make it uncertain whether the supply can <br /> always be adequate for all. Both patties to this Agreement recognize that the water supply for- <br /> Pueblo Water and its water customers is dependent upon sources from which the supply is <br /> variable in quantity and beyond the control of Pueblo Water. No liability in tort or contract <br /> attaches to Pueblo Water hereunder on account of any failure to accurately anticipate availability <br /> of water supply or because of an actual failure to supply water due to inadequate runoff or <br /> inadequate storage arising from an occurrence beyond the reasonable control of Pueblo Water, <br /> including, but not limited to, act of God, strike, war, insurrection, or inability to serve arising out <br /> of the order of any court, or the lawful order of any governmental entity clothed with authority to <br /> regulate matters pertaining to water,public utilities, public health, or pollution control. <br /> 18. Emergencies or Water Shortages. The parties agree that from time to time emergency <br /> or shortage situations may arise where there is a necessity to limit the use of water for customers <br /> of Pueblo Water. The parties agree that the necessity for such limitation is a fact to be <br /> determined by Pueblo Water in the exercise of its reasonable discretion from time to time, as <br /> occasion may require. It is hereby agreed that Pueblo Water may adopt, in the situation of <br /> emergency or shortage, such reasonable restrictions on uses or priorities for curtailed use, as may <br /> be necessary to adapt to such emergency conditions or shortage. Lessee agrees that no liability <br /> in tort or contract attaches to Pueblo Water hereunder on the account of the necessity for <br /> adopting and implementing such policies to meet emergency conditions or shortage. <br /> 19. Not a Permanent Supply. The Parties understand and agree that this Agreement is not <br /> to be interpreted as any commitment on the part of Pueblo Water to furnish water to Lessee on a <br /> permanent basis, but rather to provide Lessee with water from Pueblo Water for the temporary <br /> period of the term of this Agreement. <br /> Page 4 of 7 <br /> tc r <br />