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flows associated with the use of the Fallowed Shares on the Fallows d Farms (the "Historic <br /> Return Flows"). The Historic Return Flows consist of two components: runoff that returns tothe <br /> river via surface flows ("Surface Runoff") and deep percolation that returns to the river via <br /> groundwater flows ("Delayed Return Flows"). <br /> Asp of the Pilot Project Proposal, the parties agreed to investigate the use of physical <br /> exchanges of water into CS-U's municipal system to facilitate the replacement of some or all of <br /> the Delayed Return Flows. Specifically, the Pilot Project Proposal contemplated that: <br /> An exchange concept for replacing delayed return flows may also be implemented <br /> asp oft e CS-U/Super Ditch Pilot Project, subject to further analysis during the <br /> application process. During operation of this pilot project,water to replace delayed <br /> return flows may ultimately be exchanged upstream to Pueblo Reservoir along with <br /> the consumptive use water. The delayed return flow water would be considered <br /> fully consumable and transferred to CS-U. CS-U could then make all of the <br /> required delayed return flow releases tots Arkansas River from fully consumable <br /> sources it has available to it. Conducting this operation as an exchange would <br /> maintain the fully consumable character of the water being used to replace delayed <br /> return flows. <br /> Since submitting the Pilot Project Proposal, the parties have further analyzed the <br /> feasibility of this exchange concept. Based on this analysis, the parties believe that this <br /> exchange concept is technically feasible, and wish to propose it as part of the Pilot Project <br /> Application. The purpose of this Letter Agreement is to memorialize the parties' agreement with <br /> respect to the operation of this exchange concept for the purposes of the Pilot Project <br /> Application. <br /> II. Letter Agreement <br /> 1. The parties anticipate that, for the purposes of temporarily changing the use of the <br /> Fallowed Shares, the Super Ditch will quantify the amounts of HCU, Surface Return Flows, and <br /> Delayed Return Flows attributable tote historic use of Fallowed Shares on the Fallowed Farms <br /> as deliveries occur pursuant to engineering protocols developed in the Pilot Project Application <br /> and subsequently approved byte CWCB (the "Pilot Project Engineering"). With respect tot <br /> replacement of the Delayed Return Flows, the Pilot Project Engineering will include a schedule <br /> quantifying the monthly deliveries to the Arkansas River necessary to replace the Delayed <br /> Return Flows in time, location and amount (the "Monthly Delayed Return Flow Obligations") <br /> over an approximately five (5) year period (the "Lagging Period"). <br /> 2. In Delivery Years, the Super Ditch shall take delivery of the HCU attributable to <br /> the Fallowed Shares and use this water to deliver Pilot Project ATM Water to CS-U as set forth <br /> in detail in the Pilot Project Agreement. The Super Ditch shall deliver, and CS-U shall take <br /> delivery of, the Pilot Project ATM Water as set forth in the Pilot Project Agreement. This Letter <br /> Agreement is not intended to, nor does it modify, the parties' obligations with respect to the Pilot <br /> Project ATM Water under the Pilot Project Agreement. <br /> 2o17 <br />