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503635 B-607 P-553 04128193 13:44 CM&9049 OF 99 <br />0 <br />Facilities, (the "AW Delivery Easement") by special warranty <br />deed in the form attached hereto as Exhibit M. The nature of <br />the AW Delivery Easement and the parties' rights and <br />obligations thereto are as follows: <br />(a) General Scone. The AW Delivery Easement grants <br />VA access to and the right to use the AW Delivery Facilities <br />as provided herein and is subject to the operating provisions <br />10 <br />of Article 2, together with the right to construct the Future <br />AW Delivery Facilities and to reconstruct, modify, install, <br />repair, replace, operate and maintain the AW Delivery <br />Facilities and any appurtenant equipment or structures <br />(including without limitation, any pumps, ditches and <br />pipelines). The AW Delivery Easement shall not give VA the <br />right to deliver or store water other than the AW Priority <br />Water; provided that Climax shall not interfere with VA's use <br />of the Chalk Mountain Storage or the Buffehr's Storage. <br />(b) Interim Limitation. During the terms of the <br />EPR Conversion Options, VA shall not have the right to <br />construct the Future AW Delivery Facilities without the <br />+ consent of Climax. During such time period, however, VA shall <br />have the right to install and use temporary delivery <br />facilities with the prior ' written consent of Climax, which <br />consent shall not be unreasonably withheld. <br />(c) Costs and Construction Plan Approval. VA shall <br />bear all costs associated with the design and construction of <br />the Future AW Delivery Facilities. Climax shall have the <br />right to review and approve the design and construction plans <br />j and schedules for the Future AW Delivery Facilities solely to <br />insure that such plans do not unreasonably interfere with <br />Climax operations, provided, however, that such approval by <br />j Climax shall not be unreasonably withheld. Notwithstanding <br />the foregoing, Climax hereby stipulates that the locations of <br />VA's proposed delivery facilities from the Chalk Mountain <br />s. Reservoir-and Buffehr's Reservoir to the Eagle River Delivery <br />Point and the corresponding portion of the Delivery Easement <br />as generally described on the attached Exhibit L do not <br />unreasonably interfere with Climax's operations and Climax <br />consents to such delivery facilities. Climax may elect to <br />1 participate in the design and construction of Future AW <br />Delivery Facilities with physical capacities larger than <br />i necessary for the flexible delivery of the AW Priority Water <br />as provided herein. In such event, Climax shall share pro <br />rata in such costs and shall be entitled to use the resulting <br />additional capacity. The parties shall submit any dispute <br />' regarding Climax approval of VA's design and construction <br />plans to arbitration as provided in Section 4.9. <br />s <br />JQ MD:b09 ml] -