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I 1 1 1 1 1 1 The term of this lease is for a period of ten (10) years, commencing on the dale set forth in Paragraph 2, above. 4. Delta Paving shall have the right to install machinery, pumps, equipment, personal property, telephone lines, electric lines and water lines on the Frazier Property and shall remove such property and equipment from the Frazier Property after the end of the lease term or upon any other termination of this lease, as provided in Paragraph 14; below. Lessor shall not be liable for payment of any utility or other charges for maclinery, pumps, equipment, personal property, telephone lines, electric lines and water lines installed by Delta Paving. The patties agree as follows with respect to water and water rights: A. Promptly after execution of this lease, Delta Paving shall file an application with time appropriate water court to adjudicate a water right and, to the extent required by law or deemed necessary or desirable by Delta Paving, for approval of an augmentation or other replacement plan for the water depletions resulting from Delta Paving's operations under this lease (the "Water Rights Application"). The Water Rights Application will be filed in the name of Delta Paving, as lessee, and will provide that Delta Paving's interest itm the water right and augmentation plan will cease upon expiration or termination of tlmis lease. The water right sought in the Water Rights Application will be for industrial purposes, including but not limited to evaporation, dust suppression, aggregate washing, and product moisture losses. If the Water Rights Application seeks approval of an augmentation or replacement plan, Lessor shall make available for use in such plan and for augmentation or replacement of depletions 2.0 c.f.s. of Lessor's Bona Fide Ditch Company water rights appurtenant to or used on or in connection with the Frazier Property. Delta Paving shall bear al] other costs of filing and prosecuting the Water Rights Application, and of any engineering work necessary to support the Water Rights Application. Delta Paving shall prosecute the Water Rights Application to conclusion with diligence, provided, however, that Delta Paving shall not be required to accept any terms and conditions in any decree proposed to be entered with respect to the Water Rights Application which are not acceptable to it. Copies of any engineering work that Delta Paving may have prepared shall be given to Lessor. Lessor shall cooperate with and assist Delta Paving in the prosecution of the Water Rights Application. Delta Paving shall be entitled to utilize, without charge, any water rights so adjudicated for evaporation, reclamation purposes, dust suppression, product moisture losses, aggregate washing, or other uses needed in its operations on the Frazier Property during the term of this lease, and any augmentation or replacement plans which may have been approved. ' D:VdAH~GIPIPE~FRAZIER~GRAVLEAS.'/5 -3-