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Headwater Authority of the South Platte <br /> HASP PO Box 1566 <br /> Fairplay,CO 80440-1566 <br /> 719-466-3908 <br /> HASP@HaspWater.com <br /> December 17,2019 <br /> Bryan Lees <br /> Colorado Calumet Co.,Inc. <br /> P.O.Box 1169 <br /> Golden,CO 80402 <br /> Subject:Water Sale—Augmentation of Surface Diversions for Hard Rock Mining Operations <br /> This letter agreement is between Colorado Calumet Co.,Inc.,Buyer,and the Headwater Authority of the South Platte, <br /> Seller. Seller will cause to be released up to one(1)acre-foot of water for which Seller has the right of first use.The <br /> one(1)acre-foot of water will be delivered to the South Platte River at Spinney Mountain Reservoir and delivered by <br /> exchange to Buyer's point of diversion.HASP shall sell water to Buyer for$500 per acre-foot. <br /> Buyer agrees to the following terms and conditions: <br /> 1.Buyer will divert up to 1.0 acre-foot of water by exchange at a point or points of diversion approved in advance by <br /> Gamer Brown,who is the District No.23 Water Commissioner("Water Commissioner").At the direction of the Water <br /> Commissioner,Buyer shall notify the Seller of any new point of diversion. Seller is only providing Buyer with the one <br /> (1)acre-foot of water via release of Seller's water from Spinney Mountain Reservoir and it shall be Buyer's obligation <br /> to obtain all permits and approvals necessary authorizing it to divert water at Buyer's point of diversion. Seller shall be <br /> under no obligation to release the one(1)acre,foot of water for Buyer unless and until Bu)vr demonstrates to Seller's <br /> satisfaction that it has received all authorizations necessary for it to divert water at its point of diversion. <br /> 2.Buyer shall maintain a written daily log of:the dates and times of diversions;the locations of the points of diversion; <br /> and the volumes of water diverted from the South Platte and its tributaries. On a weekly basis,Buyer shall submit a <br /> written report(an excel spread sheet would be preferred)containing the data from the daily logs to <br /> John.Matteson@HASPwater.com,and Garver.Brown@state.co.us. <br /> 3.The Buyer must provide the District 23 Water Commissioner with 48 hours prior notice of intent to begin initial <br /> diversions.Notice must include the location of the point of diversion,the total anticipated volume along with the <br /> estimated flow rate of the diversion.Upon approval from the Water Commissioner,Buyer shall also inform HASP and <br /> HASP's engineer in writing at Jo1m.Matteson@HASPwater.com and Matt.Loose@WWWheeler.com. <br /> 4.In the event that Buyer is having difficulty diverting the water,Buyer shall notify John.Matteson©HaspWater.com <br /> and Garver-Brown@state.co.us state.co.us as soon as possible for a resolution. <br /> 5.Buyer recognizes that the availability of HASP to deliver water to Buyer by exchange is subject to the legal and <br /> physical supply of water available in the South Platte River and its tributaries. HASP shall not be liable to Buyer for <br /> any failure to deliver water by exchange due to legal and physical water supply conditions beyond HASP's control. In <br /> the event that HASP cannot operate an exchange,then Buyer will reduce its operations and water consumption <br /> equivalently. <br /> 6.This sale is a one-time transfer of the right to use a total of up to one(1)acre foot of water and is valid until October <br /> 31,2020.There shall be no carryover past October 31,2020 of any portion of the one(1)acre foot of water that is not <br /> used by Buyer,said unused water being the sole property of Seller.The$500 payment is non-refundable and is payable <br /> in full to Seller upon execution of this agreement. <br /> HASP Colorado Calumet Co., Inc. <br /> By. 71 &V t By. tic _ <br /> John yatteson.HASP Operations Mgr Bryan ees,President <br /> 20191217 Bryan Lees Ltr Agnnnt.doc.v� <br />