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49006111A, <br /> Colorado Springs Utilities <br /> It's how we're all connected <br /> August 16, 21 <br /> John Schweizer,Jr. <br /> President <br /> Lower Arkansas Valley Super Ditch Company <br /> 810 Swink Avenue <br /> Rocky Ford, CO 81067 <br /> e: Letter Agreement concerning the Replacement of Returns for the -UlSuper <br /> Ditch i raject <br /> Dear r. Schweizer; <br /> Introduction1. <br /> n August 2 , 2018, the Lower Arkansas Valley Super Ditch Company (the "Super <br /> Ditch") and the City of Colorado Springs, acting by and through its enterprise, Colorado Springs <br /> Utilities (" - ") entered into a Fallowing-Leasing Project Agreement (the "Pilot Project <br /> Agreement"), pursuant to which, the parties 1 agreed to implement allowing-Leasing Pilot <br /> Project under House Bill 13-12 , codified at Section 37-60-15(8), C.R.S. (the " - /Super <br /> Ditch PilotProject"). Under the Pilot Project Agreement, the Super Ditch agreed, inter alia, to <br /> deliver to CS-U one-thousand (1,000) acre-feet of fully-consumable water in Pueblo Reservoir <br /> (the "Pilot Project ATM Water") in three (3) out of ten (1 ) years (of S- 's choosing) between <br /> 2020 and 2029 (the "Delivery s").2 In November, 2018, the parties submitted a Pilot <br /> Project Proposal for the S- /Super Ditch Pilot Project to the Colorado Water Conservation <br /> Board ("C "); the parties anticipate that they will submit a Pilot Project Application for the <br /> CS-U/Super Ditch Pilot Project to the CWCB in August, 2019. <br /> In order to deliver Pilot Project ATM Water to - , the Super Ditch has entered into <br /> temporary-fallowing agreements (" s") with certain irrigators who own shares of stock in the <br /> Catlin Canal Company and farm under the Catlin Can (the "Participating ri ators"), To <br /> implement the TFAs, the Participating Irrigators have agreed to, inter alia, cease irrigation o <br /> and temporarily fallow certain farm parcels during the Delivery Years (the "Fallowed Farms"), <br /> d allow Super Ditch to temporarily change t e use oft e shares of stock in the Catlin Canal <br /> Company that have been historically used on the Fallowed Farms to include municipal uses by <br /> CS- (the " lowed es"). To implement this temporary change of water rights, the Super <br /> Ditch must, inter alia, develop a plan to replace, in time, location, and amount, the historic return <br /> 1 The Super Ditch and/or CS-U may be referred to herein,collectively,as the"parties"or,individually,as a"p <br /> 2 The Pilot Project Agreement contains various options through which it may be extended until 2049;and expanded to include deliveries of up to <br /> 5,000 acre-feet of water in Delivery Years. <br /> 1521 South Hancock Expressway <br /> P.O. Box 1103,Mail Code 1825 <br /> Colorado Springs, CO80947-1825 <br /> Phone 719.448. 88 <br /> www@csu.org <br />