2012-05-22_HYDROLOGY - M1983193 - Laserfiche WebLink

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WATER LEASE AGREEMENT This Water Lease Agreement, dated this 2 day of December, 2011, is between PIONEER SAND COMPANY, INC. ( "Pioneer ") and R.E. MONKS CONSTRUCTION COMPANY, LLC ( "Monks "). RECITALS A. Pioneer and Monks own adjacent parcels of property located in El Paso County, Colorado, as depicted on the map attached hereto as Exhibit A. B. Pioneer and Monks are already parties to a Well Sharing Agreement dated March 14, 2004, as modified by Supplement dated December 12, 2005, copies of which are attached hereto as Exhibit B (collectively, the "Well Sharing Agreement "); C. As reflected in the Well Sharing Agreement, Monks has an Arapahoe aquifer well drilled under Well Permit 26943 -F (the "Monks' Arapahoe Well ") and has the right to divert an average annual amount of 9.45 acre feet from such well ( "Monks 9.45 AF "); D. In Case No. 02CW66 Pioneer was decreed its own Arapahoe entitlement of 55 acre feet annually, which amount was further limited to 34.89 acre feet annually based on limited availability of Laramie Fox Hills water to offset post pumping depletions ( "Pioneer's 34.89 AF "). Pursuant to the Well Sharing Agreement and Well Permit #64792 -F, Pioneer is entitled to divert Pioneer's 34.89 AF from the Monk's Arapahoe Well; E. In accordance with the Well Sharing Agreement, the actual amount of Pioneer's 34.89 AF diverted for Pioneer's use from the Monks' Arapahoe Well is measured and delivered to Pioneer by a pipeline, and Pioneer pays Monks Two Dollars ($2.00) per 1,000 gallons for the water so delivered; F. On March 31, 2008, Monks filed an application with the State Engineer for approval of a substitute water supply plan to offset out of priority depletions associated with Monks' operations, including evaporative losses from Pond #1 ( "Monks SWSP "), all as more fully described in Monks SWSP. Monks SWSP projects that Monks will need approximately 12 acre feet of fully consumable replacement water, in addition to Monks' 9.45 AF, to make necessary replacements under Monks SWSP; G. On March 31, 2008, Pioneer filed its own application with the State Engineer for approval of a substitute supply plan to offset out of priority depletions associated with Pioneer's operations, including evaporation losses from various ponds, excluding Pond #1 ( "Pioneer's SWSP). Pioneer's SWSP allows use of up to 22.89 AF of Pioneer's 34.89 AF as part of Pioneers SWSP, leaving 12 acre feet excess to Pioneer's needs ( "Pioneer's Excess 12 AF ");