2012-02-28_REVISION - M1980244 (79)

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1. Volumes of Water and Terra of Agreement. CSU agrees to sell CC &V raw water required by CC &V for the Cresson Mine up to the amount of 300 acre feet per year on a firm basis (subject to the other provisions of this Amended Agreement) and an additional 300 acre feet per year on an as- available basis, with availability to be determined by CSU as provided in paragraph 8 for a period beginning on the date of this Amended Agreement and ending April 30, 2015. Hereinafter, the water furnished under this Amended Agreement shall be referred to as "the water" or "the water furnished hereunder." This Amended Agreement may be renewed for a period of up to 10 years upon the mutual agreement of the parties with the approval of CSU's Utilities Board. CC &V acknowledges and agrees that CSU to provide water under this Amended Agreement is based upon circumstances now existing and expected to exist over the term of this Amended Agreement. CSU has no obligation to extend or renew the term of this Amended Agreement beyond April 30, 2015. 2. Uses of Water by CC &V. The water furnished hereunder shall be fully consumable raw water, not treated to- meet human drinking water quality standards. CC &V shall use the water for mining 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. CSU shall not be deemed to be an owner or operator of the Cresson Mine by virtue of this Amended Agreement, and shall have no responsibility for regulatory compliance by the mine. The water shall not be used by CC &V for potable water uses other than at the mine site without the written permission of CSU. 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. The water shall not be used by CC &V under any circumstances to supply any housing or land development uses, and shall not be resold to any municipality. 3. Purchase Price and Payment Terms. The purchase price for water covered by this Amended Agreement shall be as follows: 3.A. Annual Fie As consideration for this Amended Agreement and to cover administrative costs to CSU, CC &V shall pay an annual fee of $2,000.00. CSU shall bill CC &V for the annual fee by September 1 of each year, and the fee shall be due and payable by October 1 of each year. If water is ordered by CC &V, then the annual fee shall be credited toward the charge for the water as set forth below. Unless credited to water purchased, the annual fee is nonrefundable. 3.B. Take -or -Pay. Upon placing a water order to CSU as provided below, CC &V shall be deemed to have purchased the amount of water ordered on a take -or -pay basis, unless CSU is unable to deliver the water ordered or unless the obligations of CC &V are suspended pursuant to paragraph 13.B. below, either of which would mean that CC &V shall have no obligation to pay for water not delivered. 71my61ea1ejnee&v was purchase weeniest clan 2