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503635 B-607 P-553 04128193 13:44 CM& 07,1a4 OF 99 <br /> <br />Priority Water, 50 acre feet of the Chalk Mountain Storage and <br />the Buffehr°s Storage in the form attached hereto as Exhibit G, <br />which provides for a partial release on the first anniversary <br />date of the Note, upon receipt of the required payment from VA, <br />of 100 acre feet of the AW Priority Water so secured and the <br />entire Chalk Mountain Storage so secured. <br />ARTICLE 2 <br />Delivery of the AW Priority Water <br />2.1 Requests for Delivery. (a) Subject to the terms and <br />conditions contained herein, VA shall have the right to receive <br />the annual delivery of the AW Priority Water in perpetuity at <br />such times, to such locations, in such amounts and through such <br />facilities as provided herein. On or before September 1 of <br />each year, VA shall submit to Climax a written schedule of its <br />estimated monthly demand, stated in flow rates and acre feet, <br />for the delivery of the AW Priority Water to specific locations <br />during the succeeding 12-month period from October 1 through <br />September 30 (the "delivery schedule"). VA shall periodically <br />revise the delivery schedule as necessary to reflect its <br />expected demand schedule based on current water and demand <br />conditions. <br />(b) Notwithstanding the foregoing subsection (a), VA <br />shall be entitled to change the delivery schedule and request <br />deliveries at any time upon 12 hours notice to Climax. Such <br />requests for delivery or a change in the delivery schedule <br />shall be telephoned to Climax and VA shall confirm.such <br />requests by fax prior to delivery. <br />(c) VA shall pay any additional costs associated <br />' with deliveries made after 4:00 p.m. on Mondays through <br />Thursdays or during weekends, holidays, or periods,of total <br />layoff of personnel. <br />(d) Climax shall provide VA with a list of contacts <br />who may be reached by telephone to request deliveries as <br />provided herein. All written or fax communications under this <br />Section shall be addressed to the Chief Engineer of the Climax <br />Mine and shall otherwise be in accordance with Section 4.11. <br />l 2.2 Delivery Locations. (a) Climax shall deliver the AW <br />Priority Water to any or all of the following delivery <br />locations as requested by VA (collectively, the 'Delivery <br />Locations"): <br />h <br />• <br />• <br />PKPD:b09 ° 6 •