2022-03-25_HYDROLOGY - M2017036 - Laserfiche WebLink

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WATER RENTAL AGREEMENT mining activities and wiil be exposing ground water ;n Pond 1, and continue thereafter unbl five years after the expiration or termination of the Opt�on w�th respect to Pond 1 pursuant to the Option Agreement or, in the event of the purchase of Pond 1 by the Lessor, such addiUonal period of time as �s necessary and sufficient to fulfill the Lessee's Pond 1 SWSP obligat�ons pursuant to the Option Agreement. F "Pond 2 Augmentation Supply Period" shall mean and refer to the per�od of time dunng wh�ch the Lessar w�ll be obl�gated to lease the Pond 2 Augrnentation Supply to the Lessee,which penod of time shail commence thirty days after Lessee provides notice to Lessor that it has started mining acbvities and will be expos�ng ground water in Pond 2, and conUnue thereafter until the expiration or termination of the Opt�on with respect to Pond 2 pursuant to the Option Agreement or. in the event of the purchase of Pond 2 by the Lessor, such additional period of time as is necessary and sufficient to fulfill the Lessee's Pond 2 SWSP obligations pursuant to the Option Agreement. G "Lease Expiration" shall mean and refer, unless earlier terminated as provided for herein, to the later to expire of the Pond 1 Augmenta#�on Supply Penod and the Pond 2 Augmentat�on Supply Penod, as applicable 2. Amount and Term: The Lessor hereby leases to the Lessee the right to receive up to a totai max�mum of 129 acre-feet(AF) of Augmentat�on Supply, annually, as more ful{y set forth herein dunng the period commencing on ihe Effecbve Date hereof and continuing thereafter until Lease Expiration. 3. Leased Water The Lessor shall deliver, as applicable, Pond 1 Augmentation Supply during the Pond 1 Augmentation Supply Period and Pond 2 Augmentation Supply during the Pond 2 Augmentation Suppty Period in such amounfs and at such times as reasonably agreed to between the parties and in conformance with the SWSP ("Leased Water"). Notwithstanding the forego�ng, the combined Augmentation Supply with respect to both Pond 1 and Pond 2, jointly, shall not exceed 54 acre-feet(AF), annually 4 Payment In consideration of the right to receive the L eas�d Auqmentation SupRly, lessee shall, during the first water year in which any part c�the i; . � �• - �� f�r�;delivered to Lessee, pay the Lessor a sum equa; to the initial rate o**. per acre-foct of Au men;at�on Su I leased and delivered Tne �r�t :, : -= Le�se� ��'Vater shail be_ per acre-foot of Augmertat�on �ucpiy �eased and delivered, w�th the fair market value of such Leased Water being adjusted upon every five(5)year anniversary of the Pond Closing with respect to sUch Pond throughout the applicable Pond Augmentation Supply Period Notwithstard�� the fore c�.n the rate for the Leased Water prior to Lease Expiration shall not be less than _per acre-ft and shall not exceed a per annum increase of■per year, non-compounded The Lessor shall submit an lnvoice to the Lessee on November 15 of each year for Lessee's previous water year's lease, including November 15 of the year follow�ng Lease Expirat�on. The total water leased for each year shall be determined from the monthty releases as documented in Lessee's Monthly accounting repoRs. 5 Default: If any required payment is not made or tendered as required herein, the Lessor shaN provide the Lessee with wrftten notice of the specific default alleged if the Lessee fails to cure a monetary default w�thin fifteen (15) days after receipt of notice from the Lessor or, if a non-monetary default is not capable of bemg cured within said fifteen (15) day period, if the Lessee fails to commence such cure w�thin said fifteen (15) day period and diligently prosecute the same to completion, the Lessor may elect to terminate this Agreement in add�t�on to seeking whatever damages and further legal remedies it may be entitled to. i' r- :� -.� 2 � S (IOi10l19)