2012-02-28_REVISION - M1980244 (79)

Home Browse Search

agrees that Cripple Creek's obligation to provide water under this Agreement is based upon circumstances now existing and expected to exist over the term of this Agreement. Hereinafter, the water furnished under this Agreement shall be referred to as "the Cripple Creek Water" or "the water furnished hereunder." All obligations of the parties under this Agreement are expressly subject to a mutually satisfactory amendment of the Victor Agreement, as discussed in further detail below. 2. Uses of Water by CC &V. The water furnished hereunder shall be raw water, not treated to meet human drinking water quality standards. CC &V shall use the Cripple Creek Water for mining and mining related purposes associated with the activities of the Cresson Mine, including without limitation mineral extraction, ore processing, dust control, mined land reclamation, replacement and augmentation, and other incidental uses. Cripple Creek shall not be deemed to be an owner or operator of the Cresson Mine nor a partner, joint venture partner, or agent of CC &V by virtue of this Agreement, and shall have no responsibility to ensure regulatory compliance by CC &V. Similarly, CC &V shall not be deemed to be the owner of or have any real estate interest in the water rights of Cripple Creek. The Cripple Creek Water shall not be used by CC &V for potable uses other than at the mine site without the written permission of Cripple Creek, which permission shall not be unreasonably withheld. If any potable use is made at the mine site, CC &V shall be solely responsible for all treatment, testing, and reporting, as now or hereafter may be required for such potable water uses. 3. Consideration and Payment Terms. The consideration for the Cripple Creek Water covered by this Agreement shall be as follows: 3A. Infrastructure. CC &V shall purchase, install or otherwise construct the following infrastructure improvements for Cripple Creek, all of which are designed to make the water furnished hereunder deliverable to CC &V: (1) Design, construction, and installation of a tap from Cripple Creek's existing transmission line from Reservoir No. 2 at a point nearest to the West Fork of West Beaver Creek to be agreed upon by the Parties, as necessary to deliver water stored by Cripple Creek in Reservoir No. 2 to the West Fork of West Beaver Creek for eventual diversion by CC &V at the Altman Pump Station further downstream. (2) Such other infrastructure as the Parties mutually agree may be necessary to facilitate Cripple Creek's delivery of water to CC &V pursuant to this Agreement. CC &V must consult with Cripple Creek regarding the design, specifications, and equipment related to such infrastructure and receive approval from Cripple Creek for the design and construction plans prior to installation of the infrastructure, which approval will not be unreasonably withheld. 313. Acre Foot Charge. The lease price for the Cripple Creek Water leased by CC &V in the first year of this Agreement shall be $700.00 per acre foot. Cripple Creek will provide CC &V with a monthly invoice for all water furnished hereunder and the purchase price shall be due and payable 30 days after the date of the invoice. This $700.00 base rate shall be adjusted upward by 3.5% each year, in years two through four of this Agreement, to reflect any increase in the fair market value of the Cripple Creek Water and costs to provide the legal and 2