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1) Term of Lease. Subject to SEO approvals described in paragraph 7,below,this <br /> Agreement shall be effective for a 12-month period beginning on January 1, 2023 and <br /> ending on December 31, 2023, <br /> 2) Good Faith Negotiations. The Parties hereto desire to discuss satisfactory terms to <br /> make fully consumable,reusable water available to Lessee in future years and hereby <br /> agree to negotiate in good faith to enter into future annual lease agreements, subject <br /> to and in accordance with C.R.S. § 37-92-308. <br /> 3) Lease Price. Payment for the lease is$500 per acre-foot (AF)during the term of this <br /> lease. The Replacement Schedule(as provided by Lessee) is attached showing the <br /> delivery schedule of reuse water to be released by the City.Payment shall be due and <br /> owing to the City upon execution of this letter for the lease of reusable water during <br /> the term of this lease. The cost for the term of the lease has been calculated to be <br /> $23,500.00. <br /> 4) Delive of Water. The City will deliver fully consumable, reusable water into the <br /> Boulder Creek Basin at Louisville's discharge point on Coal Creek, or at other points <br /> in the Boulder Creek Basin designated by the City and acceptable to the District 6 <br /> Water Commissioner to meet the requested needs of Lessee,per the Replacement <br /> Schedule, attached.Notwithstanding any other provision in this Agreement,the <br /> City's obligation to provide Leased Water to Lessee is expressly conditioned on the <br /> legal and physical availability of reuse water under the City's decrees and water <br /> rights and shall be subordinate to the City's water needs. <br /> 5) The fully consumable,reusable water can be provided from any of the City's decreed <br /> water rights that contain fully consumable and reusable credits. Monthly deliveries <br /> will be accounted for daily during the irrigation season and on the last day(s)of the <br /> month during the non-irrigation season. Deliveries will be made in hundredths (0.00) <br /> of an acre-foot increment. The City will provide the Lessee with monthly accounting <br /> for the reuse water delivered to the system on behalf of the Lessee. Lessee is solely <br /> responsible for meeting the terms, conditions and reporting requirements of the <br /> Lessee SWSP. <br /> 6) Lessee is responsible for calculating transit losses, including transit losses in the <br /> replacement schedule and for assuring delivery of the reuse water to the required <br /> point of return. <br /> 7) State Engineer_ Approval. The Parties expressly acknowledge that SEO approval <br /> pursuant to section 37-92-308, C.R.S, is necessary to put the Leased Water to the <br /> intended use. Use of the Leased Water under this Agreement is expressly <br /> conditioned on SEO approval of the City SWSP and the Lessee SWSP. All terms <br /> and conditions of SEO approved SWSPs shall be incorporated into this Agreement. <br /> a. The City is responsible for obtaining the approvals necessary to lease its fully <br /> consumable effluent under the terms and conditions of the Decree. All expenses <br /> associated with such approval(s), including engineering, legal and filing fees <br /> associated with the City SWSP, will be the sole responsibility of the Lessee and <br /> Lessee agrees to reimburse the City for such expenses actually incurred by the <br /> City. The City will provide Lessee with a copy of any approvals. <br /> . 749 Main Street,Louisville,Colorado 80027 • P-(303)335-4608 F-(303)335-4550 <br /> www.louisvilleco.gov 0 <br />