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CONTRACT BETWEEN THE UNITED STATES OF AMERICA, TRI- COUNTY WATER CONSERVANCY DISTRICT, AND Old Casfle SW Group, Tnr. dha Unit-pa C:nmf,aniec of Mesa County FOR THE SALE AND USE OF DALLAS CREEK PROJECT INDUSTRIAL WATER „2047 THIS CONTRACT made this 17 day of August , ?.Q@6 between the UNITED STATES OF AMERICA, acting by and through the Bureau of Reclamation, Department of the Interior, pursuant to the provisions of Federal Reclamation Laws, particularly the Act of April 11, 1956 (70 stat. 105), TRI- COUNTY WATER CONSERVANCY DISTRICT, organized under the laws of the State of Colorado, with its principal place of business at Montrose, Colorado, hereinafter referred to as the District, and Old Castle SW Group dba United Companies of Mesa County (United Companies), hereinafter referred to as the "Buyer ". WITNESSETH: WHEREAS, the District has entered into a contract with the United States of America dated January 14, 1977, hereinafter referred to as the Government- District contract (No. 7- 07- 40- L0273), for repayment of certain costs of construction of the works of the Dallas Creek Project hereinafter referred to as the "Project ", by means of which Project water will be delivered for irrigation, municipal, industrial and other uses, and WHEREAS, the Buyer desires to contract for and purchase an allotment of Project industrial water, NOW, THEREFORE, in consideration of the mutual and dependent covenants herein contained, the parties agree as follows: PROJECT WATER AND CONTRACT TERM 1. The District agrees and hereby obligates itself to sell and the Buyer agrees and hereby obligates itself to purchase industrial water of the Project totaling, acre feet on an annual basis. This augmentation water is purchased and released to offset depletions in the Uncompahgre River basin from domestic and industrial use. 2. This Contract shall be in force and effect through 2049, the repayment term established by the Government - District contract. At such time as the repayment obligation of the District to the United States under the Government- District Contract is paid in full, the Buyer has the option of renewing this Contract at a price to be agreed upon between the District and the Buyer. 3. During the term of this Contract, any purchases of water in addition to the water purchase pursuant to Paragraphs 1 and 2 shall be accomplished by amendment to this Contract. PRICE AND TERMS OF PAYMENT 4. The purchase price per acre foot to be paid the District by the Buyer shall be in the amount of $300 per acre - foot. All payments for water shall be paid annually as hereinafter set forth. 5. In addition thereto, the Buyer shall pay the District a fair proportionate amount of the operation, maintenance, and replacement costs of the Project attributable to M &I use. Such amount shall be determined each year by the District. The District's determination shall be fmal subject only to review by the Courts. The District shall estimate such fair proportionate amount in advance each year based on the Buyer's water purchase obligation with respect to all M &I water purchase obligations each year. If such estimate is more or less than the cost thereof, an appropriate adjustment will be made in the annual amount for the year following the year for which the estimate was made. This obligation to make OM &R payments shall continue as long as the Buyer purchases water from the District. 6. The first annual payment to the District shall be made upon the execution of this contract and thereafter the annual payments shall be made to the District on or before the 15`' day of January of each year. If payment is not received by the District by said 15t day of January, then this contract is cancelled. 7. The Buyer shall meet the annual installments due the District hereunder as provided in Title 37, Article 45 of the Colorado Revised Statutes and particularly in accordance with the provisions of Sections 131 and 132 thereof.