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any transportation losses, or "shrinkage,"from the Delivery Points to 120-85's Point of Use' <br /> downstream. 120-85 acknowledges the travel time between the alternate Delivery Points and <br /> 120-85's Point of Use varies,but that the timing for Aurora's delivery obligations as provided <br /> for under the Delivery Schedule shall remain the same regardless of Aurora's use of alternative <br /> Delivery Points. <br /> (b) Credit for Avoided Transit Loss. Aurora's obligations with respect to the volume of <br /> Reusable Raw Water to be delivered under this Agreement are deemed to be satisfied if Aurora <br /> makes deliveries in such amounts as if delivered at Hite. Thus, if Aurora elects, in its sole <br /> discretion, to make its delivery of any Reusable Raw Water under this Agreement at a Delivery <br /> 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 120-85 in water, <br /> money or otherwise. Aurora shall maintain and provide to 120-85 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 Ouality 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. Under no circumstances shall this Agreement be interpreted <br /> to mean that Aurora must supply other sources of water should the source set forth in this paragraph <br /> be unavailable. Aurora does not warrant or guaranty any water quality standards with respect to <br /> the Reusable Raw Water to be delivered as provided for under this Agreement,and 120-85 hereby <br /> waives any such warranty or guaranty. <br /> 5. Use of Reusable Raw Water. <br /> (a) 120-85 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 /> 3 <br />