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CONTRACT BETWEEN THE UNITED STATES OF AMERICA, <br /> TRI-COUNTY WATER CONSERVANCY DISTRICT,AND <br /> Ql�_ Cis l 51.+-3Cv-otAp clbA- 14n:4d_Comq&Niv, vt'Ales, Ca-,a <br /> FOR THE SALE AND USE OF DALLAS CREEK PROJECT INDUSTRIAL WATER <br /> THIS CONTRACT made this241-M day of A=t 2008 between the UNITED STATES OF <br /> AMERICA,acting by and through the Bureau of Reclamation,Department of the Interior,pursuant to the provisions <br /> of Federal Reclamation Laws, particularly the Act of April 11, 1956 (70 stat. 105), TRI-COUNTY WATER <br /> CONSERVANCY DISTRICT, organized under the laws of the State of Colorado, with its principal place of <br /> business at Montrose, Colorado, hereinafter referred to as the District, and Old Castle SW Group dba United <br /> CoMpanies of Mesa,.County(United Companies„hereinafter referred to as the"Buyer". <br /> WITNESSETH: <br /> WHEREAS,the District has entered into a contract with the United States of America dated January 14, 1977, <br /> hereinafter referred to as the Government District contract(No.7-07-40-L0273),for repayment of certain costs of <br /> construction of the works of the Dallas Creek Project hereinafter referred to as the"Project",by means of which <br /> Project water will be delivered for irrigation,municipal,industrial and other uses,and <br /> WHEREAS,the Buyer desires to contract for and purchase an allotment of Project industrial water, <br /> NOW,THEREFORE,in consideration of the mutual and dependent covenants herein contained,the parties agree as <br /> follows: <br /> PROJECT WATER AND CONTRACT TERM <br /> 1. The District agrees and hereby obligates itself to sell and the Buyer agrees and hereby obligates itself to purchase <br /> industrial water of the Project totaling 4,0 acre feet on an annual basis. This augmentation water is purchased <br /> and released to offset depletions in the Uncompahgre River basin from domestic and industrial use. <br /> 2. This Contract shal I be in force and effect through 2049,the repayment term established by the Government- <br /> District contract. At such time as the repayment obligation of the District to the United States under the <br /> Government-District Contract is paid in full,the Buyer has the option of renewing this Contract at a price to be <br /> agreed upon between the District and the Buyer. <br /> 3. During the term of this Contract,any purchases of water in addition to the water purchase pursuant to Paragraphs <br /> I and 2 shall be accomplished by amendment to this Contract. <br /> PRICE AND TERMS OF PAYMENT <br /> 4. The purchase price per acre foot to he paid the District by the Buyer shall be at the current rate in accordance <br /> with District Operating Policy. All payments for water shall be paid annually as hereinafter set forth. <br /> 5. In addition thereto,the Buyer shall pay the District a fair proportionate amount of the operation,maintenance, <br /> and replacement costs of the Project attributable to M&1 use. Such amount shall be determined each year by the <br /> District. The District's determination shall be final subject only to review by the Courts. The District shall estimate <br /> such fair proportionate amount in advance each year based on the Buyer's water purchase obligation with respect to <br /> all M&I water purchase obligations each year. if such estimate is more or less than the cost thereof,an appropriate <br /> adjustment will be made in the annual amount for the year following the year for which the estimate was made. <br /> This obligation to make OM&R payments shall continue as long as the Buyer purchases water from the District. <br /> 6. The first annual payment to the District shall be made upon the execution of this contract and thereafter the <br /> annual payments shall be made to the District on or before the 15'h day of January of each year. if payment is not <br /> received by the District by said I5'r day of January,then this contract is cancelled. <br /> 7. The Buyer shall meet the annual installments due the District hereunder as provided in Title 37,Article 45 of the <br /> Colorado Revised Statutes and particularly in accordance with the provisions of Sections I31 and 132 thereof. <br /> 8. The Buyer shall not be charged directly or indirectly for any costs incurred by the District pursuant to Section 20 <br /> of the Government-District contract so as long as the Buyer is current in its payments hereunder. <br />