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Contract No. 20-WC-40-852 <br /> NOW THEREFORE, in consideration of the mutual and dependent covenants herein contained, <br /> the Parties to this Contract agree to the following: <br /> 1. TERM OF CONTRACT <br /> This Contract will be effective for forty (40)years from the date it is executed by the <br /> Regional Director. <br /> 2. TERMINATION <br /> (a) Subject to article 2(b) below, the Contractor may terminate this Contract by sending <br /> written notice to the United States, at the address listed in Article 23 below, at least one <br /> (1)year in advance of the requested date of termination. <br /> (b) If the Contractor fails to perform its obligations under this Contract,the United States <br /> will notify the Contractor in writing of its intent to terminate this Contract. The notice of <br /> termination will specify each of the Contractor's failures, and will provide that the <br /> Contractor may, within ninety (90) days from the date of notice, present a detailed plan to <br /> correct the failures. The United States will reasonably accept the plan and waive the <br /> termination notice. <br /> 3. DELIVERY OF WATER <br /> (a) During the term of this Contract, the Contracting Officer will release water, not to exceed <br /> 2 acre-feet annually, at the outlet works of the Blue Mesa Dam. <br /> (b) The United States will release water from Blue Mesa Reservoir at the request of the <br /> Water Division 4 Engineer, Colorado Division of Water Resources. <br /> (c) The Contractor will have no holdover storage rights in Blue Mesa Reservoir from year to <br /> year. Any water paid for under this Contract but not called for by the end of each <br /> calendar year will be integrated with the water supply of the Blue Mesa Reservoir. <br /> 4. RATE AND METHOD OF PAYMENT <br /> (a) The Contractor agrees to make annual payments to the United States whether or not the <br /> contracted water is released from Blue Mesa Reservoir. The rate for M&I water will be <br /> reviewed and adjusted annually according to the debt servicing methodology used for the <br /> Colorado River Storage Project. An adjustable charge for operation and maintenance <br /> (O&M) expenses, currently at a rate of$2 per acre-foot, will be added to the M&I rate. <br /> The 2020 Colorado River Storage Project M&I water rate is $92.05 per acre-foot. <br /> Page 2 <br />