2010-11-16_PERMIT FILE - C1996083A (26)

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• 9. Coors makes no warranties of title with respect [o the water rights which are the subject of this lease other than that Coors will warrant and defend the title thereto against anyone claiming by, tlvouglt, or under Coors. Coors is aware of no adverse claim to the Industrial Water Right. Bowie shall have the opportunity to satisfy itself concerning Coors' title to the Subject Water Rights. To assist in that evaluation, Coors will provide Bowie by February 1, 1995 any materials or documents in its custody or control which will assist Bowie in this regard, including, but not limited to, all deeds, contracts, title opinions, title commitments and title policies relating to the Subject Water Rights or the property upon which such water rights may have been utilized. ]0. If this lease is still in force by January 1, 2000, Bowie shall have the right to seek judicial modification of such of the Subject Water Rights as it may find necessary for its post-2000 uses of water Hereunder; provided that if the operation of the Bowie mine shall have commenced sooner than that date and the use of water in the exercise of the Subject Water Rights for that purpose is curtailed by lawful administrative order, Bowie may initiate such proceedings, to the extent necessary, prior to January I, 2000. Coors, as the owner of the Subject Water Rights agrees, to the extent that Coors' interest in those rights is not adversely affected, to cooperate with Bowie in the prosecution of any such judicial proceeding, including a commitment to appear as a co-applicant and to dry up an appropriate portion of the land to which • those rights attach during t}te term of the lease. Coors agrees that such proceding may also be used to confirm Coors' title to I50 shares of stock in the Deer Trail Ditch Company previously held by Frank Kapps. At the conclusion of such proceedings but not later than January ], 2002, the parties hereto shall jointly evaluate the results thereof with their water engineers. [f their conclusion is that the annual number of acre feet offully-consumable water available at a reasonably uniform rate for Bowie's post-2000 uses is 200 or less, all of the Subject Water Rights shall continue to be subject of this lease far the remainder of its term. Bowie agrees that if that yield is less than 200 acre feet, it will look to other sources of supply, and not to Coors, for the remainder of its needs. However, if the parties conclude that fewer than alJ of the Subject Water Riglus are needed to produce an annual supply of 200 acre feet offully-consumable water at a reasonably uniform rate for 8owie's post-2000 uses, then the portion of the Subject Water Rights not required for that purpose shall be released to Coors. Ttte determination of which portions of the Subject Water Rights are to be released to Coors shall be made by use of the following criteria: 10.1 The first priority for release shall be of some or all of the shares of stock in the Fire Mountain Canal and Reservoir Company. ] 0.2 If additional amounts are to be released, the next priority for release will be of some or all of the shares of Class I stock in the Deer Trail Ditclt Company.