2008-11-24_PERMIT FILE - C1996083A (12)

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• procedures set forth in this Paragraph as often as it is needed as according to 2C, during the term of this Lease. C. All of the water released to Bowie for Terror Creek's benefit under the Overland Shares (less transit lasses between the point of release and the place of use, if any} during an Exclusive Control Period shall be used for agricultural irrigation purposes on lands in the Terror Creek drainage. Bowie intends to make water attributable to the Overland Shares available to persons who irrigate lands in the Terror Creek drainage and vrhose irrigation water may be adversely impacted by Bowie's coo! mining activities in the vicinity of such irrigated lands. Accordingly, Lessor agree that water released far Bowie's benefit under the Overland Shares may be used for irrigation purposes on lands of third parties. Bowie shall not initiate or continue an exclusive control period unless it's own mining activities has resulted in damage to the Terror Reservoir, Terror ditch system or the Terror Creek drainages system such that Terror Reservoir irrigation water can not be delivered to the Terror shareholders. Howie shall not use water released under the Overland Shares for purposes other than irrigation purposes Bowie shall not use water released under the Overland Shares e~ on land other than lands in the Terror Creels drainage, without the prior written canse~nt of Lessor. D. Bowie agrees not to abandon all or any portion caf the water rights represented by the Overland Shares, nor to act or fail to act in such a manner that could be construed to be an abandanrnent of all or any portion of such water rights. E. Lessor shall notify the Reservoir Company that Bowie has leased the Overland Shares. The parties will cooperate with each other to notify the Reservoir Company of the times when each of them are entitled to use water and call for releases under the Overland Shares. whereas Overland Ditch and Reservoir Company policy requires the owner of the water to notify them of any change in paint of release from the ditch, it shall be ILessar responsibility to schedule releases of water to which Bowie is entitled under the Overland'Shares during Exclusive Control Periods. F. Bowie shall not be liable far damages to Lessar':s crops ar other injuries or losses suffered by Lessor resulting from the inability of Lessor to use water under the Overland Shares during Bowie's Exclusive Control Periods. 3. Rent. The rent for the Overland Shares shall be in the following amounts and shall be paid as follows: A. Bowie shall pay Lessor a base rental of -'Thousand Dollars per year. The first base rental payment shall be made on or before May 1, 2408, and subsequent base rental payments shall be made an or before March 1 of each year thereafter while this Lease is in effect. 'T'his base rental shall be paid regardless of 3awhether Bowie causes any r~~ater • to be released for its use or benefit under the Overland Shares. ~.