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Applicant shall give the District written notice of such intent. In the event the Applicant develops and adjudicates its own augmentation plan to <br /> utilize the water allotted hereunder,Applicant shall not be obligated to pay any amount under Paragraph 19 below.In any event,the District shall <br /> have the right to approve or disapprove the Applicant's augmentation plan and the Applicant shall provide the District copies of such plan and of all <br /> pleadings and other papers filed with the water court in the adjudication thereof. <br /> 6. Contract Payment: Non-refundable, one time administrative charge, in the amount determined by the Board of <br /> Directors of the District from time to time,shall be submitted with the application for consideration by the District. <br /> Annual payment for the water service described herein shall be determined by the Board of Directors of the District.The initial <br /> annual payment shall be made in full,within thirty(30)days after the date of notice to the Applicant that the initial payment is due. Said notice <br /> will advise the Applicant,among other things,of the water delivery year to which the initial payment shall apply and the price which is applicable <br /> to that year. <br /> Annual payments for each year thereafter shall be due and payable by the Applicant on or before each January 1. If an annual <br /> payment is not made by the due date a flat$50 late fee will be assessed.Final written notice prior to cancellation will be sent certified mail,return <br /> receipt requested,to the Applicant at such address as may be designated by the Applicant in writing or set forth in this Contract or Application. <br /> Water use for any part of a water year shall require payment for the entire water year.Nothing herein shall be construed so as to prevent the <br /> District from adjusting the annual rate in its sole discretion for future years only. <br /> If payment is not made within fifteen(15)days after the date of said written notice,Applicant shall at District's sole option have <br /> no further right,title or interest under this Contract without further notice,and delivery may be immediately curtailed.The allotment of water,as <br /> herein made,may be transferred,leased,or otherwise disposed of at the discretion of the Board of Directors of the District. <br /> Upon cancellation of this water allotment Contract with the District,the District shall notify the Division of Water Resources <br /> offices in Denver and Glenwood Springs.The Division of Water Resources may then order cessation of all water use. <br /> 7. Additional Fees and Costs: Applicant agrees to defray any expenses incurred by the District in connection with the <br /> allotment of water rights hereunder,including,but not limited to,reimbursement of legal and engineering costs incurred in connection with any <br /> water rights and adjudication necessary to allow Applicant's use of such allotted water rights. <br /> 8. Assignment: This Contract shall not inure to the benefit of the heirs,successors or assigns of Applicant,without the <br /> prior written consent of the District's Board of Directors. Any assignment of Applicant's rights under this Contract shall be subject to,and must <br /> comply with, such requirements as the District may hereafter adopt regarding assignment of Contract rights and the assumption of Contract <br /> obligations by assignees and successors. Nothing herein shall prevent successors to a portion of Applicant's property from applying to the District <br /> for individual and separate allotment Contracts. No assignment shall be recognized by the District except upon completion and filing of proper <br /> forms for assignment and change of ownership. <br /> In the event the water allotted pursuant to this Contract is to be used for the benefit of land which is now or will subsequently be <br /> subdivided or held in separate ownership,the Applicant may only assign the Applicant's rights hereunder to: 1)No more than three separate <br /> owners all of whom shall be party to a well sharing agreement satisfactory to the District;or 2)A homeowners association,water district,water <br /> and sanitation district or other special district properly organized and existing under the laws of the State of Colorado,and then,only if such <br /> parties,association or special district establishes to the satisfaction of the District that it has the ability and authority to perform the Applicant's <br /> obligations under this Contract. In no event shall the owner of a portion,but less than all,of the Applicant's property to be served under this <br /> 3 <br />