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<br />AGREEMENT <br />1. Permanent Lease of Au entation/Re lacement Water. Greeley hereby ; <br />leases to Lafarge 125 acre-feet (AF) of water temporarily or permanently approved for <br />augmentation and replacement purposes ("Augmentation Water") per year under a <br />permanent lease as shown in Exhibit B, Deliveries shall commence during the month in <br />which this agreement becomes effective. Lafarge may request to vary monthly <br />Augmentation Water deliveries for the next April 1 through March 31 period (Lease <br />Year) up to an amount equal to 125 percent of the monthly deliveries shown in Exhibit:A <br />by notifying Greeley by January 1 of the preceding Lease Year, provided that no more <br />than 125 AF of water shall be delivered during any Lease Year, and that a minimum of <br />77 AF of water shall be delivered during any April-October period. Greeley shall release <br />and measure such water at Greeley's reasonable discretion at one of the following <br />locations: a) Greeley Water Pollution Control Facility Outfall located on the Cache la <br />Poudre River; b) JBS Swift industrial wastewater treatment plant outfall on Lane Tree <br />Creek; c) confluence of 35th Avenue Drainage Ditch and Cache la Poudre River, or any <br />augmentation stationlrelease structure(s) to be constructed in the vicinity of such <br />confluence and associated with Greeley's operation of reservoirs known as Flatiron <br />Reservoir Nos. 1-5 (aka Poudre Ponds at Greeley or Greeley West Pit) or, as described <br />below, with lined gravel pit reservoir storage to be constructed on the 35th Avenue Pit <br />Site as Lafarge may expand such site onto adjacent property in the future; d) as described <br />in more detail below, an augmentation stationhelease structure located under the Boyd,;.,-" <br />and Freeman Ditch and approved by the Division of Water Resources for such purposes::;. <br />-(the `Boyd and Freeman Augmentation Station!); e) release structure s fr om Greeley <br />Canal No. 3 as described in Greeley's decree in Case No. 99CW232; or f) any other <br />release and measurement point approved by Lafarge in writing in its reasonable <br />discretion. Unless otherwise agreed, Lafarge shall be responsible for any transmission <br />losses charged by the Division of Water Resources following the release and <br />measurement of such water, and for obtaining any necessary approvals of the use of such:` <br />water for Lafarge's purposes. Each party shall be solely responsible for maintenance; <br />repair and replacement of all structures owned by there respectively, including without <br />limitation all costs and expenses thereof. <br />2. Use and Assignment. Augmentation Water leased under this Agreement _ <br />may only be used for dust suppression, gravel washing, or other water uses associated <br />with sand and gravel mining, or for evaporation loss replacement. This lease may be <br />assigned in whole or in part by Lafarge upon Greeley's written consent, provided that a) <br />Greeley will not unreasonably withhold consent to any assignment for water uses <br />associated with sand and gravel mining; b) Greeley will not unreasonably withhold <br />consent to an assignment solely for evaporation loss replacement following completion of <br />mining reclamation upon the assignee's agreement to pay a one-time storage and <br />pumping fee of $3600 per AF, adjusted by the Denver area Consumer Price Index from <br />the effective date hereof to the date of assignment; and c) Greeley may withhold consent-:. <br />to any assignment to another governmental entity in its sole discretion. <br />2