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HomeMy WebLinkAboutC06-158 LEASE AGREEMENT This Lease Agreement is made and executed this of (/1 c;vJ- ' 2006, effective April 1, 2006 by and between the Board of County Commissionerst6fEagle County, Colorado (Lessor) and J. Craig Butters and M. Brunilda Butters (collectively "Lessee"), whose address is P. O. Box 264, Eagle, Colorado 81631. WITNESSETH WHEREAS, Lessor is the owner of certain water rights specifically described as follows: Neilson-South Ditch No. 102, 276, with source of supply as Brush Creek: 2.00 cubic feet of water per second of time, Priority No. 367, adjudicated August 2, 1934; and 5.71 cubic feet of water per second of time, Priority No. 455 GGG, adjudicated October 3, 1936. with all appurtenances thereunto belonging (hereinafter referenced as "Lessor's water rights"); and WHEREAS, Lessee desires to lease a portion of Lessor's water rights for the purpose of irrigation ofa portion of Lessee's real property located in Eagle County, Colorado, more specifically described as Tract 66D, Section 32, Township 4 South, Range 84 W. of the 6th P.M.; and WHEREAS, Lessor agrees to lease to Lessee a portion of the water diverted under Lessor's water rights subject to the specific terms and conditions set forth below; and WHEREAS, the parties desire to set forth in writing the terms of their agreement and related matters; AGREEMENT NOW, THEREFORE, for and in consideration of the promises set forth below, and other good and valuable consideration the adequacy and sufficiency of which is hereby acknowledged, Lessor agrees to lease to Lessee a portion of the water diverted under Lessor's water rights subject to the following terms and conditions: G:\LEASES\2006 Butters Water Lease.DOC 1. Amount. Lessor agrees to Lessee's diversion and use of water from the Neilson South Ditch in the amount of no more than 2.0 acre-feet per year at a maximum rate of20 gallons per minute (g.p.m.) (hereinafter referenced as "the leased water"). 2. Term. Lessee's right to use the leased water shall commence at such time in 2006 as Lessor, in its discretion, commences running water through the Neilson South Ditch, projected by both parties as being in April or May 2006. Lessor shall have no obligation hereunder to commence water running through the Neilson South Ditch upon a specific date nor any obligation to notify Lessee of such commencement, in writing or otherwise. The Lease Agreement shall terminate, and all of the parties' rights and obligations hereunder, on December 31, 2006, unless sooner terminated as set forth in paragraph 10 hereof. 3. Purpose. Lessee's use of the leased water shall be solely for the purpose of irrigation of a portion of Lessee's real property as described above. 4. Measurement. Prior to commencing use of the leased water under this Lease Agreement, Lessee shall install at the location where the leased water is to be diverted from the Neilson South Ditch a fully functioning totalizing flow meter for the purpose of recording Lessee's diversion of the leased water, and furnish to Lessor such proof of installation, as shall be satisfactory to Lessor. At all times during the term of this Lease Agreement, Lessor or its designated agents or employees shall have the right to enter upon such of Lessee's property as is necessary to obtain flow meter readings from the flow meter. 5. Lease Payment. Lessee agrees to prepay in full to Lessor the amount of $400.00, constituting the entire lease payment for the term of this Lease Agreement. By their signatures below, Lessee acknowledges tender of such fee and Lessor acknowledges receipt thereof. 6. Priority. Lessor shall, at all times, have the first right to use its water rights up to their full amount at any time. 7. Indemnity and Insurance. Lessee agrees it carries liability insurance to cover all claims for damages arising from Lessee's exercise of its rights hereunder. Lessee agrees to indemnify and release Lessor from any and all claims for damages to any person and/or property arising from Lessee's exercise of its rights hereunder, and to hold Lessor harmless for damage to any person and/or property caused by the leased water, including but not limited to ditch level fluctuations. 8. Repairs and Maintenance. Lessee shall be responsible for all necessary repairs and maintenance in connection with the structures and equipment required to exercise Lessee's rights hereunder. 9. Subletting and Assignment. Except as otherwise provided herein, Lessee shall have exclusive use of the rights leased hereunder for the term of this Lease Agreement. Lessee shall not sell or sublet any portion of the leased water nor assign this Lease Agreement in whole or in part. G:\LEASES\2006 Butters Water Lease.DOC 10. Default/Termination. This Agreement may be terminated by either party with or without cause upon thirty days advance written notice to the other. Upon termination Lessee shall no longer be entitled to access or use Lessors water as set forth herein. If Lessee shall at any time breach or be in default of any of the terms, covenants and conditions of this Lease Agreement, in addition to any and all rights available at law or equity to Lessor, Lessor may upon thirty (30) days advance written notice to Lessee terminate this Lease and Lessee's access to the leased water. 11. Notices. All notices to be given under this Lease Agreement shall be given in writing and shall be served personally or mailed to the respective parties at the following addresses: Lessor: Eagle Board of County Commissioners c/o Bryan Treu, County Attorney 500 Broadway P. O. Box 850 Eagle, CO 81631 With copy to: David Hallford, Balcomb & Green, P.C., P.O. Box 790,818 Colorado A venue Glenwood Springs, Colorado 81602 Lessee: J. Craig Butters and M. Brunilda Butters P. O. Box 264 Eagle, CO 81631 (970) 328-7147 12. No Warranty. Lessor makes no representation or warranty concerning the amount or quality of water available pursuant to its water rights for Lessees' use. 13. Amendments. This Lease Agreement comprises the entire agreement and understanding between Lessor and Lessee concerning the leased water and Lessee's rights. Exception as herein otherwise provided, no subsequent alteration, amendment, change, or addition to this Lease shall be binding upon the parties unless reduced to writing and signed by both parties. 14. Captions. The captions and headings herein are for convenience and reference only and shall not be used in interpreting any provision of this Lease Agreement. 15. Attorney's Fees. If any actions in law or in equity shall be brought for any reason to enforce any of the terms, provisions and covenants of this Lease Agreement, the prevailing party shall be entitled to recover from the other party as part of the prevailing party's costs, reasonable attorney's fees, the amount of which shall be fixed by the Court, and shall be made a part of any judgment or decree therein rendered. G:\LEASES\2006 Butters Water Lease.DOC IN WITNESS WHEREOF, the parties have executed this Lease Agreement on the day first above written. LESSOR: Board of County Commissioners of Eagle County, Colorado ATTEST: Clerk to the Board of County Commissioners LESSEE: By: J. By:f}l &~ i5~ M. Brunilda Butters G:\LEASES\2006 Butters Water Lease.DOC