_PERMIT FILE - M1997053 ‎(29)‎

• Permit No: M1997053
• IBM Index Class Name: Permit File
• Section_Exhibit Name: EXHIBIT N SOURCE OF LEGAL RIGHT-TO-ENTER
• Media Type: D
• Archive: No

1
(i) If a well permit from the Colorado State Engineer's office is needed
' for the mining of the Property under this Lease, GJP shall obtain such permit (the "Well
Permit") at its sole cost and expense.
(ii) As soon as practicable after the execution of this Lease, GJP shall file
an application with the appropriate water court to adjudicate a water right and an
' augmentation or other replacement plan for the pit that will result from GJP's mining
activities (the "Application"). The Application will be filed jointly in the name of District,
as Lessor, and GJP, as Lessee, and will provide that GJP's interest in the water right and
augmentation or replacement plan will cease upon expiration or termination of this Lease.
The water right sought in the application will be for reclamation purposes and industrial
purposes, including but not limited to evaporation, dust suppression, aggregate washing, and
' product moisture losses. The parties recognize that the District intends to implement a new
nanofiltration water treatment system in 1997 which will result in a greater proportion of the
water originally diverted from the Colorado River by or for the District being returned to the
t Colorado River as return flows or waste water than occurs using the District's existing
treatment system. This additional increment of return flow water is referred to in this
' paragraph as the"supplemental return flow." The parties contemplate that GJP may request
approval of an augmentation plan decreeing some amount of the supplemental return flow
as a source of augmentation water. The District shall make all such supplemental return flow
t available for augmenting or replacing depletions attributed to GJP's new water right(s);
provided, however, that the District shall not be required to operate its water treatment
facilities more than necessary to meet its customer demand for the sole purpose of supplying
' GJP with additional supplemental return flow. If the District's planned nanoftltration water
treatment system does not become operational, or if GJP's application to use the
supplemental return flow for augmentation is not granted, the District shall have no respons-
ibility to provide the water right(s) or other water source to be used for augmenting or
replacing the depletions. GJP shall bear all other costs of filing and prosecuting the
Application, and of any engineering work necessary to support the Application. Subject to
' the provisions of Paragraph 10.A.(iii) below, GJP shall prosecute the Application to
conclusion with diligence. Copies of any engineering work that GJP may have prepared
' shall be given to District. District shall cooperate with GJP in the prosecution of the
Application. GJP shall be entitled to utilize, without charge, any water rights so adjudicated
for evaporation, reclamation purposes, dust suppression, aggregate washing, product
' moisture losses, or other uses needed in its operations on the Property during the term of this
Lease.
' (iii) GJP shall have the option,in its sole discretion,to terminate this Lease
if any of the following events occur or conditions exist.
' (a) A final decree granting the Application on terms and conditions
acceptable to GJP has not been entered by the Commencement Date;
' f\wp"698\040\dms\GRAVLESACW'D -7- September 20. 1996