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~ J1~~ <br />THIS AGREEMENT made' this _$T N day of ~C-'r'ot3 ~ , 2004, by and <br />between the Board of Water Works of Pueblo, Colorado, hereinafter referred to as the "Board," <br />and C.R. Evans, hereinafter referred to as "Evans." <br />BACKGROUND INFORMATION <br />The following statements aze intended to provide background for this Agreement and to <br />aid in understanding and interpreting this Agreement. <br />A. Evans owns the land described in the attached Exhibit A consisting of 448f acres <br />permitted under the Colorado Division of Minerals and Geology ("DMG") Permit No. M-2000- / <br />041 that is currently issued in the name of LaFazge West, Ina ("LaFazge West"); <br />B. By mutual agreement between LaFarge West and Evans, Evans is in the process <br />of completing the DMG's requirements for becoming the successor operator under Permit No. <br />M-2000-041; <br />C. Evans is the successor in interest to LaFarge West, under a certain Water Lease <br />between the Board and LaFarge West dated July 21, 2000, and that Water Lease is not amended <br />or modified in any manner by this Agreement; <br />D. Evans intends to file a request for revision of DMG Permit No. M-2000-041, <br />which currently allows for the mining of 15 surface acres, to allow the mining of 50 surface <br />acres; <br />E. As part of the DMG's requirements for succession of an operator, Evans is <br />required to either have a commitment for Augmentation of the Mined Land, or post a <br />reclamation bond that assures that the Mined Land will be backfilled. <br />F. Evans intends to amend the current DMG approved reclamation plan under <br />Permit No. M-2000-04, to provide for Slurry Walls and, once approved, such an amendment will <br />eliminate the need for either Augmentation of the Mined Land, or a bond to backfill the mine <br />site; <br />G. The Board is willing to enter into an agreement on the terms set forth below to <br />provide Augmentation water for the Mined Land; and <br />H. The water use that is the subject of this Agreement is of a type not normally <br />within any regular rate schedule fixed by the Board, and the parties mutually agree that the terms <br />of lease and delivery of water for the purposes set forth should be the subject of this special <br />Agreement. <br />OCTt~~~ / <br />