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Oet • 18 . 2002 1 : 03PM No • 0266 P . 8
<br /> WATER LEASE
<br /> THIS WATER LEASE is made and entered into this ] r, ,- day of (�-k . 20X,
<br /> by and between the CITY OF LOVELAND, COLORADO, a Colorado home rule-municipality, whose
<br /> address is 500 East Third Street,Loveland,Colorado 80537("City")and Western Mobile Northern,Inc.,
<br /> a subsidiary of Lafarge Corporation, whose address is 1590 W. 12'° Avenue, Denver, Colorado.
<br /> $0204-3410 ("[essee")..
<br /> WITNESSETH:
<br /> WHEREAS,Lessee desires to acquire augmentation water for a temporary substitute supply plan
<br /> submitted to the State of Colorado Division of Water Resources on or at the direction of the
<br /> Office of the State.Engineer for the purpose of augmenting certain wells, ponds or pumps along the Big
<br /> Thompson River; and
<br /> WHER17AS, the City is the owner of certain water which may be used for purposes of
<br /> augmentation;and
<br /> WHEREAS,the City is willing to lease, on a temporary basis,a portion of its water which may
<br /> include, but is not limited to Windy Gap re-use water or water stored in the Loveland Storage Reservoir
<br /> (commonly known as Green Ridge Glade Reservoir)under the terms and conditions ofthe Transfer Decree
<br /> entered in Case No.. 82CW202A, or CBT water, to Lessee on the terms and conditions set forth herein,
<br /> NOW,THEREFORE,in consideration of the mutual covenants and agreements herein contained,
<br /> the parties agree as follows'.
<br /> 1. The City shall supply up to 5,0 acre feet of water per year to Lessee for Lessee's
<br /> temporary substitute supply plan or as directed by the River Commissioner or the Office of the State
<br /> Engineer for a period of 3 year(s)commencing January 1,2000 and ending Decembet 31, 2002 _
<br /> 2. Regardless of water supply source,Lessee shall pay City the greater of$ 55.00 per acre
<br /> foot of water, or the per acre foot rate established by the Northern Colorado Water Conservancy District
<br /> for the operation,maintenance and power costs for Windy Gap water,foreach acre foot of water furnished
<br /> by the City pursuant to this Lease, plus five (5) percent of the total for administrative costs, per year.
<br /> 3. The total of the three annual lease payments shall be paid by Lessee once prior to the
<br /> be4inning of the lease term, based on Lessee's approved temporary substitute supply plan or as directed
<br /> by the River Commissioner or the Office of the State Engineer_ In the event Lessee uses more water in
<br /> any year than that approved in Lessee's temporary substitute supply plan or as required by the State, the
<br /> City shall bill Lessee for such excess water usage at the rate established pursuant to paragraph 2 of this j
<br /> Lease and Lessee shall pay said amount to City within fifteen days of the City's bill. I`
<br /> 4. In the event the City has an urgent need for water, as determined in the sole discretion of i
<br /> the City, for reasons including, but not limited to, drought, the City may terminate this Lease. The City
<br /> will endeavor to give lessee thirty(30)days notice of such termination,but shall not be required to do so.
<br /> In the event of such termination, lessee shall be liable to pay the City for augmentation water received
<br /> to the effective date of termination. City shall be liable to reimburse Lessee for any augmentation water
<br /> previously paid for, but not delivered based upon the rate established in paragraph 2 of this Lease..
<br /> 5. In the event the Lessee fails to pay for augmentation water when payment is due pursuant
<br /> to paragraph 3 ofthis Lease,the City, in addition to seeking recovery of sums due may terminate delivery
<br /> of augmentation water to the Lessee.
<br /> 6. This Lease shall be contingent upon approval ofLessce's temporary substitute supply plan
<br /> by the Office of the Colorado State Engineer.
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