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AGREEMENT FOR THE LEASE OF WATER <br />(CRIPPLE CREEK & CC &V) <br />THIS AGREEMENT FOR THE LEASE OF WATER ( "Agreement ") is made and <br />entered this 7 day of July, 2010, by and between the City of Cripple Creek, through its utility <br />enterprise ( "Cripple Creek ") and the Cripple Creek & Victor Gold Mining Company ( "CC &V "), <br />herein collectively, the "Parties ". <br />RECITALS <br />WHEREAS, CC &V operates the Cresson Mine (herein after the "Cresson Mine" or the <br />"mine site ") located in Teller County, Colorado, in the vicinity of Cripple Creek and the City of <br />Victor; and <br />WHEREAS, CC &V has entered into a water supply contract with the City of Victor to <br />provide the primary water supply for the Cresson Mine. The contract expresses the joint desire <br />of CC &V and the City of Victor for CC &V to obtain one or more backup water supply contracts <br />to be used by CC &V in the event, and to the extent, that the City of Victor does not wish to or <br />cannot provide the full amount of water requested by CC &V for the Cresson Mine; and <br />WHEREAS, Cripple Creek has previously entered into an agreement with the City of <br />Victor wherein Cripple Creek provides Victor with up to 172 acre feet of water, primarily by and <br />through a pipeline and well field located in Gillette (the "Victor Agreement "). In connection <br />with that agreement, Cripple Creek has completed Water Division 2, Case No. 05CW25. Cripple <br />Creek desires to amend the Victor Agreement and CC &V desires to facilitate that amendment; <br />and <br />WHEREAS, CC &V has a requirement for additional water supplies for its operation of <br />the Cresson Mine; and <br />WHEREAS, Cripple Creek is the owner certain of water rights and water facilities that <br />will enable it to sell and deliver water to CC &V for use at the Cresson Mine. <br />AGREEMENT <br />NOW, THEREFORE, in consideration of the mutual covenants and agreements <br />contained herein, Cripple Creek and CC &V agree as follows: <br />1. Volumes of Water and Term of Agreement. Subject to the other provisions of <br />this Agreement, Cripple Creek agrees to lease to CC &V, in addition to the 172 acre feet that are <br />the subject of the Victor Agreement, up to 200 acre feet per year of raw water requested by <br />CC &V for the Cresson Mine on an as available basis. The term of this Agreement shall begin on <br />the date of this Agreement and end on May , 2014. This Agreement may be renewed on terms <br />acceptable to the Parties by express written agreement, however, the Parties acknowledge that <br />any such renewal may be for a longer term than reflected in this Agreement, and will require <br />contribution by CC &V to water infrastructure necessary for the maximization of Cripple Creek's <br />water resources to make such long -term water available for lease. CC &V acknowledges and <br />1 <br />