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Point other than Hite, and if delivery at such alternative Delivery Point(s) results in reduced transit <br />loss, Aurora shall be entitled to retain such avoided transit loss with no credit to Frei in water, <br />money or otherwise. Aurora shall maintain and provide to Frei a monthly accounting and report <br />of daily deliveries at the Delivery Point(s). If Aurora elects to deliver some or all of the Reusable <br />Raw Water at alternative Delivery Point(s), then the foregoing reports shall include the calculated <br />amount of avoided transit loss, and the amount of water physically delivered at such alternative <br />Delivery Point(s). For purposes of calculating any such avoided transit loss, the Parties hereby <br />agree that the volume of Reusable Raw Water required to be delivered by Aurora in accordance <br />with the Delivery Schedule shall be discounted by an amount equal to one-half of one percent <br />(0.5%) of such volume during the April through September irrigation season, or one-fourth of one <br />percent (0.25%) of such volume during the October through March non -irrigation season, for each <br />river mile in distance between Hite and such alternative Delivery Point(s) (such distance calculated <br />to the nearest one -tenth of a mile), or by such other amount as determined by the Division Engineer <br />for Water Division 1 (such office or its replacement the "Division Engineer") or as specified in an <br />applicable statute or decree from a court of applicable jurisdiction. The product of this calculation <br />shall represent the amount of avoided transit loss in acre-feet, which Aurora shall be entitled to <br />retain. <br />4. Source and Quality of Reusable Raw Water. The Reusable Raw Water to be provided by <br />Aurora under this Agreement shall, at Aurora's discretion, consist of Aurora's reusable municipal <br />return flows to the South Platte River, any fully consumable portion of changed irrigation water <br />rights owned by, or available to Aurora, fully consumable water diverted pursuant to decrees <br />entered in 03CW414, 03CW415, and 06CW104, Water Division 1, and any other legal source of <br />Reusable Raw Water available to Aurora. Under no circumstances shall this Agreement be <br />interpreted to mean that Aurora must supply potable water should the sources set forth in this <br />paragraph be unavailable. Aurora does not warrant or guaranty any water quality standards with <br />respect to the Reusable Raw Water to be delivered as provided for under this Agreement, and Frei <br />hereby waives any such warranty or guaranty. <br />Use of Reusable Raw Water. <br />(a) Frei shall have the right to use and reuse to extinction the Reusable Raw Water <br />delivered under this Agreement for water supply purposes, including without limitation <br />replacement and exchange purposes in connection with any substitute water supply plan <br />approved by the Colorado State Engineer's Office, augmentation and exchange purposes in <br />accordance with any augmentation plan or appropriative right of exchange decreed by the <br />Colorado Water Court, and any other lawful exchanges; provided that such use is consistent with <br />the terms of this Agreement and all applicable laws, rules and regulations. <br />(b) Aurora does not allow the use of, and Frei will not use, the Reusable Raw Water <br />by direct use, augmentation, replacement, or exchange within or upstream of a decreed instream <br />flow reach if such use will deprive the decreed instream flow of water it is entitled to by priority <br />unless waived by the Colorado Water Conservation Board ("CWCB") consistent with the CWCB <br />Board procedures and law allowing such action. Any such use will be deemed a violation of the <br />terms of this Agreement. <br />3 <br />