2003-01-29_REVISION - M1998014 - Laserfiche WebLink

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6.1. Lessee shall be responsible for installation and maintenance of culverts and drains to insure the adequacy and control of drainage, and for not impairing the existence and operation of existing irrigation ditches, if any, located on the Property. 6.2. Owner shall furnish or cause to be furnished to Lessee water for the operation and, as applicable, reclamation of the Pzoperty in accordance with the terms of this Section 6.2. - 6.2.1. Ownez shall furnish or cause to be furnished to Lessee by assignment or Special Warranty Deed, at no additional cost to Lesaee, all water rights currently existing (or for which applications are currently pending) used for the operation of the Property, including but not limited to water for dust suppression, domestic use, pond evaporation, landscape irrigation, truck and gravel washing, concrete production, and all other uses associated with Lessee's operations of the Property. The water rights to be furnished under this Section 6.2 are identified on Exhibit W hereto. Lessee acknowledges that Lessor plans /~ to use a portion of Lessor's water rights not devoted to the mining operations to continue Lessor's agricultural operation andlor to support its development plans. Lessee agrees that Lessor may continue to use, change the use of, or dispose of any water rights not devoted to the mining operations; provided, ~/- however, that the quantities of water identified err--Exhi-bit~-4t shall remain t ~ available to Lessee during the term of this Lease. ~~' !~ ~'~ ~"~~°y' j'w~^ ~,~,~ 6.2.2. Owner shall furnish or cause to be Furnished to Lessee the water rights necessazy for Lessee to fulfill its reclamation obligations and to augment pond evaporation with respect to the Property as required by all applicable permits and regulations. Following the permanent cessation of all gravel and mining activities on' the Property, such water rights shall revert or be re-assigned to Owner, who shall have the gerpetual obligation to provide sufficient water for such purposes at no additional cost to Lessee. Owner's obligations under this Section 6.2 shall include without 2imitaticn the perpetual responsibility to maintain water allotment contracts for direct delivery, exchange, or augmentation water as necessary for reclamation, pond evaporation, and permit compliance after the Cessatioa of gravel aad mining activities. 6.2.3. Owner has obtained court approval of an augmentation plan involving the water rights appurtenant to the property and other water described in this paragraph 6. Lessee acknowledges the sufficiency of said augmentation plan (for the limited gurposes of this Lease only) to provide for the uses described in this paragraph 6 contemplated by Lessee. Any further water supplies to be developed and used in connection with the mining and/or reclamation operations shall be developed at the sole cost of Lessee provided, however, Owner shall have the responsibility to complete, at its expense and to the satisfaction of Lessee in its sole discretion, all pending matters identified on Exhibit W, including but not limited to Case No. 99Cw282 and all pending applications for well permits. Lessee agrees to pay (until tha permanent cessation of all Sand and Gravel mining activities on the Property or until termination of this Lease Agreement, whichever first occuxs) any and all annual costs associated with Owner's water supply, including, but not limited to, that certain contract with the Colorado River Water Conservation District dated March 1, 1999, CRWCD 99-8. 6.2.4. In the event Owners title to the water rights identified on Exhibit W fails or is otherwise defective, Lessee shall be entitled to purchase its water requirements from a third party source and to offset the costs associated with such purchase against royalty payments due~~ ~h'C Rease FEB 12 2003 Givisian of Minerals end Gealopy