2011-03-14_REVISION - M1977493 ‎(67)‎

• Permit No: M1977493
• IBM Index Class Name: REVISION
• Doc Date: 3/14/2011
• Doc Name: Exhibit List, Exs. 10 & 11
• From: Climax
• To: MLRB
• Type & Sequence: AM6
• Media Type: D
• Archive: No

503635 B-607 P-553 04128193 13:QVi-0007-BG 22 OF 99
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2.8 AW Delivery Facilities Assessments. (a) VA shall
reimburse Climax annually for VA's pro rata share of the OM&R
costs attributable to the AW Delivery Facilities; provided,
however, that for any OM&R costs in excess of $5,000 per year,
j Climax must obtain the prior written approval of VA. During
the terms of the EPR Conversion Options; VA shall not be
obligated to pay any OM&R costs in excess of $5,000 per year.
Climax shall bear its pro rata share of OM&R costs to be
determined based upon the relative use during the preceding
year, as between Climax and VA, of the AW Delivery Facilities
for water transmission and the relative use of the Chalk
Mountain Reservoir and Buffehr's Reservoir for water storage.
Climax shall provide VA with an itemized written estimate of
VA's annual OM&R costs four months prior to invoicing VA for
such costs. Climax shall invoice VA for OM&R costs on
of each year and VA shall have 60 days to pay such
invoice. The parties shall submit any disputes regarding OM&R
I to'arbitration pursuant to Section 4.9.
(b) Climax shall retain the right to increase the
size of Chalk Mountain and Buffehr's Reservoirs at its sole
expense; provided, however, that (i) Climax shall take
appropriate precautions to ensure the continued delivery and
storage of the AW Priority Water during any such enlargement,
and (ii) any increase in OM&R costs caused by any such •
enlargement shall be borne solely by Climax.
(c) VA shall have the
Buffehr's Reservoir. If VA seals
Reservoir, it may credit one-half
a maximum of $25,000, against the
increment exercised of the 600 AF
defined herein).
right to seal or line
or lines Buffehr's
of the costs thereof, up to
exercise price of the first
option (as such term is
ARTICLE 3
Eagle Park Reservoir
3.1 The EPR Conversion Options. (a) The parties hereby
grant to each other options to convert the AW Water Rights
into the right for VA to annually receive the first 500 acre
feet of °EPR Firm Annual Yield" (as defined below) from Eagle
Park Reservoir subject to the terms and conditions provided
herein. The foregoing options are separate and distinct to
each of the parties and are individually referred to as the
"Climax Conversion option" and the "VA Conversion Option",
respectively, and collectively referred to as the "EPR
Conversion Options."
MFD:b09 -14- •