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HomeMy WebLinkAboutC18-209 Colorado River Water Conservation District IGA - NOT FULLY EXECUTEDAgreementandIntergovernmentalAgreementbetweenAurora,CRWCD,BasaltWCD,EagleCounty,PitkinCounty,GrandValleyWaterUsersAssociation,OrchardMesaIrrigationDistrict,andtheUteWCDThisAgreementandhitergovemmentalAgreement(the“Agreement”)isenteredintoasoftheEffectiveDateherein belowdefined,byandbetween:•TheCityofAurora,Colorado,aColoradomunicipalcorporationoftheCountiesofAdams,Arapahoe,andDouglas,actingbyandthroughitsUtility Enterprise(‘Aurorat)and,•BuskIvanhoe,Inc.,aColoradomutualditchcompany(“B-IInc.”),and•TheColoradoRiverWaterConservationDistrict(“CRWCD”)and,•The BasaltWater ConservancyDistrict(“BWCD”)and,•TheBoardofCountyCommissionersofEagleCounty(“Eagle”)and,•TheBoardofCountyCommissionersofPitkinCounty(“Pitkin”)and,•TheGrandValleyWaterUsersAssociation(“GVWUA”)and,•OrchardMesaIrrigationDistrict(“OMID”)and,•TheUteWaterConservancyDistrictactingbyandthroughtheUteWaterActivityEnterprise(“Ute”).Individuallytheseentitiesaresometimeshereinafierreferredtoasa“Party”andcollectivelyasthe“Parties.”The CRWCD,BWCD,Eagle,Pitkin,GVWUA,OMIDandUtearecollectivelyreferredtoasthe“WestSlopeParties.”TableofContentsI.IntroductionandGeneralProvisions31.EffectiveDate32.SubjectAreas/Non-severability33.Process44.NotPrecedent55.NoProperty Transfers56.Non-assignabilityand NoSubleases57.NoWaiverofGovernmentalImmunity68.forceMajeure69.NoWaterQualityObjections610.SEO&DEO611.FutureCooperation6C18-209
12.FutureDialog.813.WD-5,13CW3109814.EnterpriseObligations815.Miscellaneous10II.RoaringForkRiverWaterDelivery1416.AuroraTwinLakesOwnership1417.RoaringForkDeliveryLocation1418.WaterDeliveriesandBypasses1519.ExchangedRoaringforkDeliveries1720.FurtherCooperationRegardingRoaringForkFlows1921.CRWCDDeliveryOffset2022.Busk-IvanhoeorTwinLakesFacilityFailure20III.FryingpanRiverExchangesandStorage2023.BWCDStorageAccounts2024.BWCDExchanges2125.BWCDPaymentstoAurora2226.AccountingInformationandEvaporationCharges2227.RelativePrioritiesofExchangesandStorage2228.BWCDIvanhoeReservoirReleases,StudiesandCosts2329.BWCDSupportofBoxCreekReservoirandNoChangestoBusk-IvanhoeAgreements24IV.ShoshoneOutageProtocol&ShoshonePermanency2430.ShOPAgreement2431.AuroraOwnership2432.TermofAuroraShOPAgreement2533.AuroraShOPAgreement2534.ShoshonePermanency2735.OtherProvisions29V.DiligenceDétente2936.DiligenceCases2937.Non-oppositiontoDiligence35VI.EntryofFinalDecreeinWD-2,09CW1423638.MotionforEntryofDecree362
WHEREASColoradolawauthorizesgovernmentalentitiestocooperateandenterintoIntergovernmentalAgreementspursuanttoSection18(2)ofArticleXIVoftheColoradoConstitutionandCRS§29-1-203;and,WHEREAS,PartieswhoarenotgovernmentalentitiescoveredbySection18(2)ofArticleXIVoftheColoradoConstitutionandCRS§29-1-203enterintothisAgreementpursuanttotheirindependentauthorityandabilitytocontract;and,WHEREASAuroraisthesoleownerofthecapitalstockofB-IInc.,aColoradomutualditchcompany,andB-IInc.ownsanundividedone-half(1/2)interestinthewaterrightsoftheBusk-IvanhoeSystem;and,WHEREASduring2009B-IInc.initiatedaWaterCourtactioncaptionedWD-2,09CW142,whereintheWaterCourtinitiallyissuedaRulingandDecreeonMay27,2014,andfollowinganappealtotheColoradoSupremeCourtasGrandValleyWaterUsersAssociationvs.Busk-IvanhoeInc.,14SA303,thematterwasremandedbacktotheWaterCourtonDecember5,2016;and,WHEREASthereafterthePartiesengagedinextensivesettlementdiscussionstoaddi-essvariousmattersofmutualconcerntothemandtodevelopastipulatedagreementamongstthemselvesregardingaproposedAmendedFindingsofFact,ConclusionsofLaw,JudgmentandDecreecomportingwiththeColoradoSupremeCourt’sopinion.NOWTHEREFORE,forandinconsiderationofthemutualpromisesandcovenantscontainedherein,andothergoodandvaluableconsideration,theadequacyandsufficiencyofwhichisherebyacknowledged,thePartiesherebyagreeasfollows:I.IntroductionandGeneralProvisions1EffectiveDate.The“EffectiveDate”ofthisAgreementshallbethedateonwhichtheAgreementisexecutedbythelastPartytosign.2.SubjectAreas/Non-severability.ThroughthisAgreementthePartiesaddressfivesignificantsubjectareaswheretheagreementshereinsetforthwillinuretotheirindividualandcollectivebenefit.AlthoughthesubjectareasmayappeartobedistincttheywerecombinedforpurposesofthisAgreementandthePartiesagreethatregardingthisAgreementnoneofthesubjectareasareseverablefromtheothers.Thesubjectareasare:2.1RoaringForkRiverWaterDelivery2.2FryingpanRiverExchangesandStorage2.3ShoshoneOutageProtocol&ShoshonePermanency2.4DiligenceDetente2.5EntryofFinalDecreeinWaterDivision-2,CaseNo.09CW142ThesesubjectareasareconsideredinsectionsIl—VIofthisAgreement.Additionally,other3
subjectsofagreementappearhereinandthePartiesagreeallsuchsubjectsofagreementarealsonon-severable.3.Process.FollowingtheEffectiveDate,thePartiesshallenterintoaStipulationtowhichthisAgreementshallbeattachedandincorporated.TheStipulationwillbesubmittedforapprovalbytheWaterCourtforWaterDivision2.IfsaidStipulationisapprovedtheAgreementshallbeenforceableasanOrderoftheCourtamongstthePartiessubjecttothisparagraph3anditssubparts.ThePartiesagreethecontemplatedStipulationshallbindandbenefitthem;however,individuals,includingbutnotlimitedtootherpartiesappearinginWD-2,09CW142andtheCasesconsolidatedtherewith(WD-1,09CW272andWD-5,09CW186)otherthanthePartiesareneitherboundbynoraretheyintendedtobenefitfromthisAgreementorthecontemplatedStipulation.ImmediatelyfollowingapprovaloftheStipulation,thePartieswilljointlyseekentrybytheDivision2WaterCourtoftheDraftDecreeattachedheretoasExhibitAastheFinalDecreeinWD-2,09CW142providing,interalia,fora60-yearrollingaverageof2,416A-Fofdiversionsperyear,a20-yearrollingaverageof3,192A-Fperyearandanannualmaximum4,064A-F.AuroraandB-IInc.agreethesediversionsarecontingentuponcontinuingcompliancewiththeobligationsandrequirementsofthisAgreementbyAuroraandB-IInc.andtheirsuccessorsininterestifany.3.1ShouldtheDraftDecreebeenteredastheFinalDecree,andtheperiodsforanyappealorotherreconsiderationoftheentryofsaidDecreeexpirewithoutappealorreconsideration,thePartieswillpromptlyproceedtoimplementallotheragreementscontainedwithinthisAgreement.IfsuchoccurstheInitiationDateisthedateafterwhichtheDecreebecomesfinalandallappealandreconsiderationperiodshaveended.PriortotheInitiationDate,thePartieswillcooperateingoodfaithtosupportthedesiredcompletionofthesubjectareasofthisAgreement.3.2ThePartiesacknowledgetheWaterCourtcoulddeclinetoentertheDraftDecreeassubmittedand/ortherecouldbefurtherappellateproceedings.IftheDraftDecreeisnotenteredastheFinalDecreeortheDraftDecreeisreconsideredorappealed,thePartieswillholdinabeyanceimplementationofallagreementscontainedinthisAgreementuntilfollowingtheconclusionofanyreconsiderationorappealproceedings.If,attheconclusionofanyreconsideration,appealorotherproceedings,theDraftDecreeisenteredastheFinalDecreethePartieswillpromptlyproceedtoimplementallagreementscontainedwithinthisAgreement.3.3Ifattheconclusionofanyreconsideration,appealorotherproceedingstheDraftDecreeisnotenteredastheFinalDecreethisAgreementandtheStipulationreferencedinthisparagraph3willterminateandthePartieswillbereleasedfromalldutiesandobligationstoimplementanyoftheagreementscontainedinthisAgreementunlessthePartiesunanimouslyagreeinwritingassetforthinparagraph3.4.3.4IfanyWaterCourt,reconsideration,appealorotherproceedingsresultintheentryofachangedormodifiedformoftheDraftDecree,thePartiesagreetoconferwithin4
7-daysoftheentryofanychangedormodifiedformofdecree.AfterconferralthePartiesmustunanimouslyagreeinwritingamongthemselvestopromptlyproceedtoimplementtheagreementscontainedwithinthisAgreementortootherwiseamendtheAgreement.IfthePartiesdonotreachsuchunanimousagreementwithin30-daysofentryofachangedormodifiedformoftheDraftDecree,anysinglePartymay,bywrittennoticetotheotherParties,terminatethisAgreementandtheStipulationreferencedinthisparagraph3nolaterthan45-daysfollowingentryofachangedormodifiedformoftheDraftDecree.Uponsuchtermination,thePartieswillbereleasedfromalldutiesandobligationstoimplementanyoftheagreementscontainedinthisAgreementandtheStipulationreferencedinthisparagraph3andAuroraagreesitwillseektowithdrawthechangedormodifiedformofdecreeentered.Alternatively,thePartiesagreetheywillmovetohavetheWaterCourtreconsiderandenteradecreeconsistentwiththisAgreementandtheStipulation.TheWestSlopePartiesagreetosupportsuchwithdrawalorreconsiderationmotion.ThePartiesagreeintheeventoftheentryandsubsequentwithdrawalofadecreenotunanimouslyagreeduponthateachofthemretaintheirlegalpositionsregardingWD-2,09CW142asthosepositionsexistedwhen14SA303,wasremandedbacktotheWaterCourt.ThePartiesagreeanyinvocationoftheWaterCourt’sretainedjurisdictionasdescribedinparagraph38oftheDraftDecreewillnotbeconsideredareconsideration,appealorotherproceedingasdescribedinthisparagraph3.ThePartiesfurtheragreethatnoneofthemwillseektoinvokethereferencedWaterCourt’sretainedjurisdiction,exceptasprovidedforinparagraph19.1oftheproposeddecree,unlessthereisunanimousagreementamongthePartiestodoso.4.NotPrecedent.ThisAgreementandthecomponentsthereofaretheresultofsubstantialandextensivesettlementdiscussions.ItisspecificallyunderstoodandagreedbythePartiesthattheacquiescenceofthePartiesandthecomponentsthereofweretheresultofcurrentspecificfactualandlegalcircumstancesofthePartiesanduponthenumerousandinterrelatedcompromisesreachedbytheParties.ThustheexistenceofthisAgreementandthecomponentsthereofshallnevergiverisetoanyargument,claim,defenseortheoryofacquiescence,waiver,bar,merger,staredecisis,resjudicata,estoppel,lachesorotherwise,nortoanyadministrativeorjudicialpracticeorprecedent,byoragainstanyofthePartiesinanyotheragreement,matter,caseordispute,norshalltestimonyconcerningsuchagreementoracquiescenceofanyPartytothisAgreementandthecomponentsthereofbeallowedinanyothermatter,caseordispute.ThePartiesagreetheydonotintendthisAgreementandthecomponentsthereoftohavetheeffectofprecedentorpreclusiononanyfactualorlegalissueinanyothermatter.5.NoPropertyTransfers.ThePartiesagreenoportionofthisAgreementshouldbeconstruedorinterpretedasatransferoftitleoratransferofownershipofanywater,waterrightoranyfacilityforthesupply,treatmentanddistributionofwaterownedbyanyoftheParties.6.AssignabilityandDelegation,ifany.TherightsanddutiesofthePartiesunderthisAgreementandtheStipulationwillapplyto,bindandobligateanyandallsuccessorsordelegateesininterestofthePartiesifanyareallowed.Unlessspecificallysetforthherein,noneofthePartiesmayassigntheirrightsnordelegatetheirdutieshereunderwithoutthepriorwrittenconsentoftheotherParties.furthernoneofthePartiesmaysellorsubleaseanyofbenefitsderivedhereunderwithoutthepermissionoftheotherParties,whichpermissionindividual5
Partiesmaygrantorwithholdattheirdiscretion.Nevertheless,theprohibitionexpressedintheprevioussentencedoesnotapplytothecircumstanceofarecipientbeingabletosell,leaseorotherwisefullyuseinanyfashionwaterderivedfromanybenefitinuringtosuchrecipient.7.NoWaiverofGovernmentalImmunity.NotwithstandinganyprovisionsofthisAgreementtothecontrary,notermorconditionofthisAgreementshallbeconstruedorinterpretedasawaiver,eitherexpressedorimplied,ofthemonetarylimitationsonliabilityoranyoftheimmunities,rights,benefitsorprotectionsprovidedtoanyPartyundertheColoradoGovernmentalImmunityAct,§24-10-101,etseq.C.R.S.,asamendedorasmaybeamended.ThePartiesunderstandandagreeliabilityforclaimsforinjuriestopersonsorpropertyarisingoutoftheallegednegligenceofanyParty,theirofficialsandemployeesmaybecontrolledorlimitedbysaidAct,asamendedorasmaybeamended.AnyprovisionofthisAgreement,whetherornotincorporatedhereinbyreference,shallnotbeinterpretedtocontrol,limitorotherwisemodifysoastolimitanyliabilityprotectionofanyPartypursuanttotheabovecitedlaws.8.ForceMajeure.Subjecttothetermsandconditionsinthisparagraph,noPartytothisAgreementshallbeliableforanydelayorfailuretoperformunderthisAgreementduesolelytoconditionsoreventsofforcemajeure;providedthat:(i)thenon-performingPartygivestheotherPartiespromptwrittennoticedescribingtheparticularsoftheoccurrenceoftheforcemajeure;(ii)thesuspensionofperformanceisofnogreaterscopeandofnolongerdurationthanisrequiredbytheforcemajeureeventorcondition;and(iii)thenon-performingPartyproceedswithreasonablediligencetoremedyitsinabilitytoperformandprovidesweeklyprogressreportstotheotherPartiesdescribingtheactionstakentoremedytheconsequencesoftheforcemajeureeventorcondition.9.NoWaterQualityObjections.ThePartiesacknowledgethequantityofwaterthatmaybestored,deliveredand/orexchangedpursuanttovariousprovisionsofthisAgreementisrawwaterderivedfrom,andcomingledwith,waterfrommultiplestreamsources.Thus,thePartiesagreenottoobjecttothequalityoftherawwaterthatmaybestored,deliveredand/orexchangedpursuanttovariousprovisionsofthisAgreement.10.SEQ&DEO.TheColoradoStateEngineerandtheDivisionEngineersforWaterDivision’s1,2and5(“SEQ&DEO”)areOpposersinWD-2,09CW142,WD-1,09CW272andWD-5,09CW186,andhavenotpreviouslystipulatedtotheentryofadecree.ThePartiesagreetousetheirbesteffortstoseektheSEQ’s&DEO’sconfirmationthatthemeansforimplementingtheprovisionsofthisAgreementcanbeadministeredbytheSEQ&DEOandtheSEO’s&DEO’sagreementtotheentryoftheDraftDecreesetforthinExhibitA.TheSEO&DEOarenotpartiestothisAgreementandnothinginthisAgreementshallaffecttheabilityoftheSEQ&DEOtocomplywiththeirstatutoryandadministrativeduties,includingparticipatinginsubsequentwatercourtproceedingstoensuretheirabilitytoadministeranysubsequentdecreesenteredbythewatercourts.11.FutureCooperation.AfundamentalpremiseofthisAgreementisthePartieswillnotactivelyseektoundermine,orencourageotherstoundermine,theParties’respectiveinterestsandresourcescommitted,compromised,dedicatedorotherwiseaddressedinthisAgreement.For6
purposesofthisparagraph,‘AdverseAction”meansanactionofalegislature,court,administrativeagency,regulatorybodyorothergovernmentalentitythatwouldcauseamaterialadverseimpacttoaParty’sinterestsorresourcescommitted,compromisedorotherwiseaddressedinthisAgreement.IntheeventthatanAdverseActionisproposedorislikelytooccurastheresultofanactionbyaPartytothisAgreement,thePartywhoseinterestsorresourceswouldsufferamaterialadverseimpactwillnotifytheotherParties.ThePartyaffectedbytheAdverseActionandthePartyorPartieswhoseactioncausedittoarisewilldiligentlymeetanddiscussingoodfaiththepotentialdetrimentaleffectofsuchAdverseAction,withthegoalofdeterminingwhetheranyactionbyanyoneofthemcouldavoidtheAdverseActionormitigateitsimpactontheaffectedParty.EachPartytosuchdiscussionagreestoevaluateingoodfaithwhetheritcanimplementchangesinitsoperationsorundertakeothereffortsthatwouldachievethisgoal,andtoimplementanysucheffortsasmaybeagreedtoinsuchdiscussion.11.1AspartofthisAgreementtheWestSlopePartiesunderstandthatAuroraseekstodeveloptwoprojects,WildHorseReservoirinWaterDivision1andBoxCreekReservoirinWaterDivision2.ShouldtheWestSlopeParties,jointlyorindividually,determineaneedtoparticipateinanyofthepermittingprocessesassociatedwitheitherWildHorseReservoirorBoxCreekReservoir,theyagreethat(a)theywillnotifyAuroraoftheirconcernsassoonaspracticableduringtheNEPAscopingprocessanddiligentlyworkingoodfaithwithAuroratofindasolution;and(b)anyparticipationinthepermittingprocessesbytheWestSlopePartieswillnotseektopreventtheprojectinitsentiretyandcommentsorrequestsmayberaisedonlyforthepurposeofaddressingwaterrelatedimpactscauseddirectlybyeitherofthetwoabovespecifiedprojectsontheWestSlope(definedasgeographicareaswestoftheContinentalDivide).11.2Additionally,theWestSlopePartiesfurtheragreetheywillnotopposeinWaterCourtorpermittingprocesses1)theneedforanychangesinpointsofdiversionforthedevelopmentoffacilitiesunderWD-5,CaseNos.8$CW449,95CW272(A)and/orexistingHomestakesystemconditionalwaterrights;2)Aurora’sobtainingpermitstorebuild,repairorreplaceifnecessarytheCarltonTunneltoitsexistingdecreedcarryingcapacity,and/oremergencyortemporaryuseoftheNastand/orBousteadTunnelsthroughanexcesscapacitycontractwiththeU.S.BureauofReclamation;and3)PitkinobtainingaBureauofReclamationcontractforuseofRuediReservoirasdescribedwithinthisAgreement.InthecontextofthisAgreement,“notoppose”meansaPartywillnottakeactionstoimpairorimpedethemovingparty’sorparties’abilitytoobtainnecessarycertifications,permits,licenses,contracts,decreesand/orauthorizations,includingcounty1041regulations,neededtocompletetheidentifiedprojectaslongassuchrepairorreplacementisnotanexpansionofexistingdecreedwaterrights.However,thisAgreementshallnotprecludeanyPartyfromsubmittingfaircommentstogovernmentalentities,includingidentificationofissuesofconcernnotinconflictwiththespiritofthisAgreement,orparticipatinginanywatercourtproceeding.11.3AnyPartytothisAgreementthatisapermittingauthorityforanidentifiedparticularprojectwillbeexemptfromtheprovisionsofthisparagraph11forsuchidentifiedparticularproject.7
12.futureDialog.ThePartiesagreetofromtimetotimeconductmeetingsandconversationsaboutwatermattersofmutualbenefitandofconcerntothemindividually.13.WD-5,13CW3109.WD-5,13CW3109isarecreationalin-channeldiversionapplicationbytheCityofGlenwoodSprings.Auroraisanopposerinthatcase.AuroraagreestocontinuetomeetingoodfaithwiththeApplicantinthatcasetowardtheendofresolvingcontestedissues.14.EnterpriseObligations.14.1SoleObligationofAurora’sUtilityEnterprise.ThisAgreementshallneverconstituteageneralobligationorotherindebtednessoftheCityofAurora,Colorado(“City”)oramultiplefiscalyeardirectorindirectdebtorotherfinancialobligationwhatsoeveroftheCitywithinthemeaningoftheConstitutionandlawsoftheStateofColoradooroftheCharterandordinancesoftheCity.IntheeventofadefaultbyAurora’sUtilityEnterpriseofanyofitsobligationsunderthisAgreement,theotherPartiesshallhavenorecourseforanyamountsowedtoitagainstanyfundsorrevenuesoftheCityexceptforthoserevenuesderivedfromrates,feesorchargesfortheservicesfurnishedby,orthedirectorindirectuseof,theWaterSystemanddepositedintheWaterEnterprisefund,astheterms“WaterSystem”and“WaterEnterprisefund”aredefinedinCityOrdinanceNo.2003-18,andthenonlyafterthepaymentofalloperationandmaintenanceexpensesoftheWaterSystemandalldebtserviceandreserverequirementsofanybonds,notes,orotherfinancialobligationsoftheUtilityEnterprisesecuredbyapledgeofthenetrevenuesoftheWaterEnterpriseFund.Notwithstandinganylanguagehereintothecontrary,nothinginthisAgreementshallbeconstruedascreatingalienuponanyrevenuesoftheUtilityEnterpriseortheCity.AurorarepresentsthisAgreementhasbeendulyauthorized,executedanddeliveredbyAuroraandconstitutesavalidandlegallybindingobligationofAurora,enforceableagainstAurorainaccordancewiththetermshereof,subjectonlytothetermshereofandtoapplicablebankruptcy,insolvencyandsimilarlawsaffectingtheenforceabilityoftherightsofcreditorsgenerallyandtogeneralprinciplesofequity.14.2SoleObligationofUteWaterActivityEnterprise.ThisAgreementshallneverconstituteageneralobligationorotherindebtednessofUteWaterConservancyDistrict(“UteDistrict”)oramultiplefiscalyeardirectorindirectdebtorotherfinancialobligationwhatsoeveroftheUteDistrictwithinthemeaningoftheConstitutionandlawsoftheStateofColorado.IntheeventofadefaultbytheUteWaterActivityEnterprise(“UteEnterprise”)ofanyofitsobligationsunderthisAgreement,theotherPartiesshallhavenorecourseforanyamountsowedtoitagainstanyfundsorrevenuesoftheUteDistrictexceptfortherevenuesoftheUteEnterprisederivedfrompursuing,continuingandconductingalloftheDistrict’sWaterActivities,asthattermisdefinedintheresolutioncreatingtheUteEnterpriseandanyexistingandfutureamendmentsthereto,andthenonlyafterthepaymentofalloperation,maintenanceandotherexpensesrelatedtotheDistrict’sWaterActivitiesandalldebtserviceandreserverequirementsofanybonds,notes,orotherfinancialobligationsoftheUteEnterprisesecuredbyapledgeofthenetrevenuesoftheUteEnterprise.Notwithstandinganylanguagehereintothecontrary,nothinginthis8
AgreementshallbeconstruedascreatingalienuponanyrevenuesoftheUteEnterpriseortheUteDistrict.UterepresentsthatthisAgreementhasbeendulyauthorized,executedanddeliveredbyUteandconstitutesavalidandlegallybindingobligationofUte,enforceableagainstUteinaccordancewiththetermshereof,subjectonlytothetermshereofandtoapplicablebankruptcy,insolvencyandsimilarlawsaffectingtheenforceabilityoftherightsofcreditorsgenerallyandtogeneralprinciplesofequity.14.3SoleObligationofBasaltWaterActivityEnterprise.ThisAgreementshallneverconstituteageneralobligationorotherindebtednessofBWCDoramultiplefiscalyeardirectorindirectdebtorotherfinancialobligationwhatsoeveroftheBWCDwithinthemeaningoftheConstitutionandlawsoftheStateofColorado.IntheeventofadefaultbytheBWCDofanyofitsobligationsunderthisAgreement,theotherPartiesshallhavenorecourseforanyamountsowedtoitagainstanyfundsorrevenuesoftheBWCDexceptfortherevenuesofitsBasaltWaterActivityEnterprise(“BasaltEnterprise”)derivedfrompursuing,continuingandconductingallofitsWaterActivities,asthattermisdefinedinanyresolutioncreatingordefiningtheBasaltEnterpriseandanyexistingandfutureamendmentsthereto,andthenonlyafterthepaymentofalloperation,maintenanceandotherexpensesrelatedtotheBasaltEnterprise’sWaterActivitiesandalldebtserviceandreserverequirementsofanybonds,notesorotherfinancialobligationsoftheBasaltEnterprisesecuredbyapledgeofthenetrevenuesoftheBasaltEnterprise.Notwithstandinganylanguagehereintothecontrary,nothinginthisAgreementshallbeconstruedascreatingalienuponanyrevenuesoftheBasaltEnterpriseortheBasaltDistrict.BWCDrepresentsthatthisAgreementhasbeendulyauthorized,executedanddeliveredbyBWCDandconstitutesavalidandlegallybindingobligationofBWCD,enforceableagainstBWCDinaccordancewiththetermshereof,subjectonlytothetermshereofandtoapplicablebankruptcy,insolvencyandsimilarlawsaffectingtheenforceabilityoftherightsofcreditorsgenerallyandtogeneralprinciplesofequity.14.4SoleObligationoftheColoradoRiverWaterConservationDistrictactingbyandthroughitsColoradoRiverWaterProjectsEnterprise.ThisAgreementshallneverconstituteageneralobligationorotherindebtednessoftheCRWCDoramultiplefiscalyeardirectorindirectdebtorotherfinancialobligationwhatsoeveroftheCRWCDwithinthemeaningoftheConstitutionandlawsoftheStateofColorado.IntheeventofadefaultbytheCRWCDofanyofitsobligationsunderthisAgreement,theotherPartiesshallhavenorecourseforanyamountsowedtoitagainstanyfundsorrevenuesoftheCRWCDexceptfortherevenuesofitsColoradoRiverWaterProjectsEnterprise(“CRWCDEnterprise”)derivedfrompursuing,continuing,andconductingallofitsWaterActivities,asthattermisdefinedintheresolutioncreatingtheCRWCDEnterpriseandanyexistingandfutureamendmentsthereto,andthenonlyafterthepaymentofalloperation,maintenanceandotherexpensesrelatedtotheCRWCDEnterprise’sWaterActivitiesandalldebtserviceandreserverequirementsofanybonds,notesorotherfinancialobligationsoftheCRWCDEnterprisesecuredbypledgeofthenetrevenuesoftheCRWCDEnterprise.Notwithstandinganylanguagehereintothecontrary,nothinginthisAgreementshallbeconstruedascreatingalienuponanyrevenuesoftheCRWCDEnterpriseortheCRWCD.CRWCDrepresentsthatthisAgreementhasbeendulyauthorized,executedanddeliveredbyCRWCDandconstitutesavalidandlegallybindingobligationofCRWCD,enforceable9
againstCRWCDinaccordancewiththetermshereof,subjectonlytothetermshereofandtoapplicablebankruptcy,insolvencyandsimilarlawsaffectingtheenforceabilityoftherightsofcreditorsgenerallyandtogeneralprinciplesofequity.15.Miscellaneous15.1IntentofAgreement.ThisAgreementisintendedtodescribetherightsandresponsibilitiesofandbetweenthePartiesandisnotintendedto,andshallnotbedeemedtoconferrightsuponanypersonsorentitiesnotnamedasPartiesorasauthorizedassigns,nortolimitinanywaythepowersandresponsibilitiesoftheParties,oranyotherentitynotaPartyorassignhereto.15.2EntireAgreement.ThisAgreementrepresentstheentirebargainandcontractofthePartiesandnoneofthePartieshasrelieduponanyfactorrepresentationnotexpresslysetforthherein.Allpriorandcontemporaneousconversations,negotiations,possibleallegedagreements,representations,covenantsandwarrantiesconcerningthesubjectmatterhereofaremergedinthisAgreement.15.3MultipleOriginals.ThisAgreementmaybesimultaneouslyexecutedinanynumberofcounterparts,eachoneofwhichshallbedeemedanoriginal,butallofwhichconstituteoneandthesameAgreement.15.4Amendment.ThisAgreementmaybeamended,modified,changedorterminatedinwholeorinpartonlybywrittenagreementdulyauthorizedandexecutedbytheParties.15.5HeadingsforConvenience.Headings,titlesandthetableofcontentscontainedhereinareintendedfortheconvenienceandreferenceofthePartiesonlyandarenotintendedtoconfine,limitordescribethescopeofintentofanyprovisionofthisAgreement.15.6GoverningLaw.ThisAgreementanditsapplicationshallbeconstruedinaccordancewiththelawoftheStateofColorado.15.7NoAttorneyFees.Intheeventofanylitigation,mediation,arbitrationorotherdisputeresolutionprocessarisingoutoforrelatedtothisAgreementeachPartyagreestoberesponsibleforitsownattorneyandotherprofessionalfees,costsandexpensesassociatedwithanysuchproceedings.15.8NoConstructionAgainstDrafter.ThisAgreementwasdraftedbyAurorawithreviewandconmientfromtheattorneysfortheotherParties.Accordingly,thePartiesagreethelegaldoctrineofconstructionagainstthedrafterwillnotbeappliedshouldanydisputeariseconcerningthisAgreement.15.9Non-Severability:EffectofInvalidity.EachprovisionofthisAgreementisintertwinedwiththeothersandisnotseverableunlessbymutualconsentoftheParties.IfanyprovisionofthisAgreementortheapplicationthereoftoanypersonorcircumstanceshall,atanytimeortoanyextent,beheldinvalidorunenforceableforanyreasonbya10
CourtofcompetentjurisdictionthePartiesshallpromptlymeetinordertoenactanewagreementthatasnearaspossiblereplicatestheprovisionshereof.15.10WaiverofBreach.WaiverofbreachofanyoftheprovisionsofthisAgreementbyanyPartyshallnotconstituteacontinuingwaiverofanysubsequentbreachbysaidPartyofeitherthesameoranyotherprovisionofthisAgreement.15.11Non-BusinessDays.IfanydateforanyactionunderthisAgreementoritsapplicationfallsonaSaturday,Sundayoradaythatisa“holiday’assuchtermisdefinedinRule6oftheColoradoRulesofCivilProcedure,thentherelevantdateshallbeextendedautomaticallyuntilthenextbusinessday.15.12Recitals.TherecitalshereinareherebyincorporatedintothisAgreement.15.13NoRecordation.ThePartiesexpresslyagreethisAgreementwillnotberecordedinanyClerkandRecorder’sOfficewithinoroutsideofColoradoexceptasmayberequiredfortheactofapprovingthisAgreementbyanyoneoftheParties.AllPartiesexpresslyagreethisunmodifiedAgreementmaybereferenced,includedorotherwiseincorporatedinanyfutureorpendingWaterCourtApplicationoradministrativeproceedingbeforetheofficeoftheColoradoStateEngineer.15.14AuthorityoftheParties.SubjecttothetermsthisAgreement,thePartieseachaffirmandrepresenttheyhavethefullpowerandauthoritytoexecutethisAgreement.15.15NoAgencyCreatedandNoThirdPartyBeneficiaries.ThisAgreementisnotintendedandshallnotbeconstruedtocreateanyjointventure,agencyrelationshiporpartnershipbetweentheParties.NoneofthePartiesshallhaveanyrightorauthoritytoactonbehalfoforbindanotherParty.TheagreementshereinandthebenefitstherefromaresolelyintendedforthePartiesheretoandarenotforthebenefitof,normaytheybeclaimedasbenefits,bythirdparties.15.16ExecutionofAdditionalDocuments.ThePartiesagreetoexecuteanyfurtherdocumentsreasonablynecessarytocompletethetransactionsprovidedfororcontemplatedbythisAgreement.15.17SpecificPerformance.ThePartiesheretoareentitledtoseektheremedyofspecificperformanceregardinganybreacheshereofbyanotherParty.15.18Notice.ExceptastoanyoperationalcommunicationsthatthePartiesmaysubsequentlyagreearebesthandledthroughelectronicortelephonicmeans,allnotices,requests,demandsorothercommunications(collectively,“Notices”)hereundershallbeinwritingandgivenby(i)establishedexpressdeliveryservicewhichmaintainsdeliveryrecordsrequiringasignedreceipt,(ii)handdeliveryor(iii)certifiedorregisteredmail,postageprepaid,returnreceiptrequestedtothePartiesatthefollowingaddress,oratsuchotheraddressasthePartiesmaydesignatebyNoticeintheabovemanner.11
ToAuroraand/orB-IInc.:CityofAurora15151EastAlamedaParkway,Suite3600Aurora,CO80012-1555Attn:Director,AuroraWaterwithcopytoCityofAurora15151EastAlamedaParkway,Suite5300Aurora,CO80012-1555Attn:CityAttorneywithcopytoHamre,Rodriguez,Ostrander&Dingess,PC3600YosemiteStreet,Suite500Denver,CO80237-1829Attn:JohnM.Dingess,Esq.ToCRWCD:ColoradoRiverWaterConservationDistrictAttention:GeneralManagerP.O.Box1120GlenwoodSprings,CO81602withcopyto:ColoradoRiverWaterConservationDistrictAttention:GeneralCounselP.O.Box1120GlenwoodSprings,CO81602ToBWCD:BasaltWaterConservancyDistrictP.O.Box974GlenwoodSprings,CO81602withcopyto:Balcomb&Green,P.C.P.O.Drawer790GlenwoodSprings,CO81602Attn:ChristopherL.Geiger,Esq.ToEagle:EagleCountyAttorneyP.0,Box850500BroadwayEagle,CO81631-0850withcopyto:Balcomb&Green,P.C.P.O.Drawer790GlenwoodSprings,CO81602Attn:ChristopherL.Geiger,Esq.12
ToPitkin:PitkinCountyAttorney’sOffice530EastMainStreet,Suite301Aspen,CO81611withcopyto:PitkinCountyManager’sOffice530EastMainStreet,Suite302Aspen,CO81611ToGVWUA:GrandValleyWaterUsersAssociationAttention:GeneralManager114724RoadGrandJunction,CO81505withcopyto:Williams,Turner&Holmes,P.C.Attention:KirstenM.Kurath744HorizonCourt,Suite115GrandJunction,CO81506ToOMID:OrchardMesaIrrigationDistrictAttention:DistrictManager66838RoadPalisade,CO81526withcopyto:Williams,Turner&Holmes,P.C.Attention:KirstenM.Kurath744HorizonCourt,Suite115GrandJunction,CO81506ToUte:UteWaterConservancyDistrictAttention:Manager2190H¼RoadGrandJunction,CO81505withcopyto:UteWaterConservancyDistrictAttention:GeneralCounsel2190H¼RoadGrandJunction,CO81505withcopyto:Williams,Turner&Holmes,P.C.Attention:KirstenM.Kurath744HorizonCourt,Suite115GrandJunction,CO8150613
Noticesshallbeeffective(i)thedayofdeliveryindicatedbythedeliveryreceiptwhensentbyanestablishedexpressdeliveryservicewhichmaintainsdeliveryrecordsrequiringasignedreceipt,(ii)uponreceiptbytheaddresseeofahanddelivery,or(iii)thedayofdeliveryindicatedbytheReturnReceiptwhenmailedviaCertifiedorRegisteredmail,postageprepaid,ReturnReceiptRequested.15.19NoOtherAgreementorDecreeModified.UnlessspecificallyidentifiedandreferencedinthisAgreementnootheragreementorcontractbetweenanyofthePartiesorbetweenanyPartyandathirdparty,oranywaterdecreeorstipulationismodifiedorchangedbythisAgreement.15.20FailuretoperformanyobligationcontainedinthisAgreementbyanyPartyshallconstituteadefault.AnyPartymayseeklegalorequitablerecourseinanycourtofcompetentjurisdictionincludingsuspensionofthetermsofthisAgreement,theStipulationandtheDecree.FailuretoenforceanydefaultshallnotbeconstruedasawaiverbyanyPartyofthedefaultorremediesforbreach.If,foranyreasonexceptforfailuresdescribedinparagraphs8,22and23hereof,AurorafailsorisunabletofulfillitsobligationsundertheprovisionsofthisAgreement,Aurora’sdiversionsoftheBusk-IvanhoewaterrightsthatarethesubjectofthisAgreementshallceaseuntilsuchtimeasAuroraisagainincompliancewiththisAgreement.AnysuchcessationofBusk-IvanhoediversionsbyAurorawillnotexcuseorpostponeanyotherobligationsofAurorasetforthinthisAgreement.II.RoaringForkRiverWaterDelivery16.AuroraTwinLakesOwnership.Auroracurrentlyowns2,488.475sharesoftheTwinLakesReservoirandCanalCompany(“TwinLakes”)representingapproximatelyfivepercentofthetotalissueof49,588.965shares.ThePartiesacknowledgeAurora’sabilitytorequesttheactivitiesofTwinLakeshereinafierdescribedislimitedandsubjecttoitsprorataownership.TwinLakesbymentionofitsnameinthisAgreementisnotmadeapartyhereto;noPartyisdueanythird-partyperformancefromTwinLakes.Ifthesaleofsharesofstock,dilutionofthecurrentshares,orchangesintherightsrepresentedbyAurora’scurrentsharesofstockoccursuchthatAuroranolongerhasinterestorbenefitofTwinLakessharesofstockascontemplatedanddescribedinthisAgreementandthischangeresultsinaninabilityofAuroraoritssuccessortofulfilltheobligationsofthisAgreementthenB-IJnc./Auroraareindefaultpursuanttoparagraph15.20aboveuntilsuchtimeasthepreexistingstockconditionisrestored,butAurora’sandB-IInc.’sotherobligationsunderthisAgreementshallremain.ThisAgreementdoesnotchange,modify,reviseoramendanyothercontractoragreementbetweenanyofthePartiesandTwinLakes.AuroraagreesthatitwillnotrequestTwinLakestoperformanyillegaloperationsoractivities.ThePartiesagreethatTwinLakesassumesnoliabilityforanyoperationsitconductspursuanttothetermsofthisAgreement.Further,thePartiesagreethatintheeventoperationsofTwinLakesconductedpursuanttothetermsofthisAgreementresultintheinitiationoflegalproceedingsagainstTwinLakesthenTwinLakesmayimmediatelyceasesuchoperationspendingresolutionofthesaidlegalproceedingsagainstTwinLaketoitssatisfaction.17.RoaringForkDeliveryLocation.AsaTwinLakesshareholderAuroramaycallfordeliveriesandbypassesofits“inpriority”waterderivedfromthetransbasincomponentofits14
TwinLakessharesatorneartheoutletofGrizzlyReservoir,afacilitywithanoperatingvolumeofapproximately500A-f,locatedinPitkinCountywithinLincolnGulchuponLincolnCreek,atributarytotheRoaringForkRiver.ConsistentwithTwinLakesoperatingrequirementsandrequestsofPitkinandtheCRWCD,deliveriesmayalsobemadefromTwinLakes’facilitieslocatedontheRoaringForkRivernearLostManCreek.18.WaterDeliveriesandBypasses.Subjecttothefollowing,pursuanttotheTwinLakesdecreesandaccordingtoitsoperatingprinciplesandprovidedAurora’sownershipofTwinLakessharesyieldtoAuroraanamountequaltoorgreaterthanthebypassesorreleasesofwaterfromtheIndependencePassTrans-mountainDiversionSystemduringthesubjectyear,beginningintheTwinLakesWaterYear(October1-September30TwinLakesWaterYear)followingtheInitiationDate,AurorawillcausetobedeliveredthroughbypassesorreleasestotheRoaringforkRiveruptoatotalof900A-FofitsTwinLakeswatereachTwinLakesWaterYear.AsusedwithinSectionIIofthisAgreementthetenn“bypass”meanswaterdivertedpursuanttoAurora’sTwinLakessharesundertheTwinLakes’priorityandthendeliveredtotheRoaringForkRiveratatimewhensuchwaterisphysicallyandlegallyavailableundersuchright.Annually,designatedrepresentativesofPitkin,CRWCD,AuroraandTwinLakeswilldevelop,subjecttothetenrisofthisAgreement,detaileddeliveryschedulesreasonablyconsideringandreflectingthedesiredrate,timing,amount,locationandultimateuseofthewater,aswellastheoperationalneedsandconstraintsuponthethdependencePassTransmountainDiversionSystem.Pitkin,CRWCD,AuroraandTwinLakesmayconsultwithotherappropriateparties,ifany,indevelopingthedeliveryschedules.Deliveryschedulesmaybeupdatedfromtime-to-timethroughouttheWaterYearaswarrantedbyhydrology,operationalconstraintsorotherfactors.ItisrecognizedbythePartiesthatdeliveriesunderthisparagraphwillbeconductedinamannerdesignedtomaximizebenefitstoRoaringForkRiverstreamflowswhichisabenefittotheWestSlopePartiesandtheColoradoRiverbasinasstatedinparagraph20.DeliveryofthiswaterwillbecompletedbytheendoftheTwinLakesWaterYear.Aurorawillnotcarryovertofollowingyearsanyundeliveredorun-bypassedwater.ThePartiesagreeanywaterprovidedperthetermsofthisparagraph18anditssubpartsretainsitsidentityaswaterderivedfromtheexerciseoftheTwinLakeswaterrights.Thewaterdeliveriesandbypassescontemplatedbythisparagraph18arenotcontingentupontheoperationofanyexchangedescribedinparagraph19.OtherwaterusersmaybeallowedtooperateexchangesorotherwisedivertandprovideasubstitutesupplyfortheTwinLakeswaterbypassed,solongastheDEOensuresdeliveryofthebypassedamount,minustransitlosses,toanyexchangefrompointorpointofdeliverytoanactualdecreedlocationofuse.TheTwinLakeswaterwillbedeliveredtotheRoaringForkRiverasdescribedin18.1and18.2below:18.1AnnualRoaringForkDelivery.900A-FwillbedeliveredannuallyduringeachTwinLakesWaterYearfromorthroughGrizzlyReservoir,orbypassedfromtheTwinLakesSystem’sRoaringforkdiversions.IfAurora’s2,488.475TwinLakessharesdonotyield900A-FasaresultofdroughtorotherclimaticconditionsorthephysicalcapacityofthefacilitiesofTwinLakesasdescribedinparagraph22,thensuchlessoramountsupportedbytheyieldofAurora’s2,488.475shareswillbedelivered.700A-fofthe900A-fwillbedeliveredasabypassofAurora’sTwinLakes“inpriority”wateratorneartheTwinLakesdiversionpointsintheLincolnCreekDrainagenearGrizzlyReservoiroritsdiversionpointsontheRoaringForkRivernearLostManCreek.Subjecttotheforgoingandthefollowing15
considerationstheremaining200A-Fofthe900A-FwillbereleasedfromGrizzlyReservoirgenerallyattheendofsummerandduringthefallseasonsconsistentwiththeannualdeliveryscheduleasmaybemodifiedduringtheTwinLakesWaterYearandtheoperationalrequirementsofTwinLakes.IfnotphysicallyreleasedfromGrizzlyReservoirthisremaining200A-FwillbebypassedinsteadofreleasedfromstorageifhydrologicconditionsandoperationalconstraintsofTwinLakeswarrant.InanyeventthePartiesacknowledgethat200A-FwillbethemaximumreleasetoLincolnCreekthatcanbemadefromGrizzlyReservoirstorageinanyyear.ThePartiesrecognizethatTwinLakesoperationalandinfrastructuremaintenanceneedsandstreamflowneedsofLincolnCreekandtheRoaringForkRiver,includingbutnotlimitedtoturbidity,temperature,habitat,flooding,waterqualityandotherenvironmentalconstraints,mayrequirethatthesereleasesconsistoflowflowsthatbegininmid-summerandendinlate-summer.Aiinualdeliveryofthis200A-Fofreleasedwaterwillbeconsistentwiththeconsiderationsusedforthe700AFofbypassedwaterdescribedabove.TypicallythedeliveryofwatertotheRoaringForkRiverwillprovidethegreatestbenefitinthesecondhalfofthesummer,beginningJuly15,throughthefallseason.PitkinandAuroraacknowledgethatwaterdeliveredtotheRoaringForkRiverbyAurorabeforethistime,duringtherunoff,isnotgenerallyneededandinwetyearsmayexacerbatefloodrisk.Deliveredwater,bypassesandreleasesfromGrizzlyReservoir,willnormallybeAurora’sinterestinitsyieldoftheIPTDS.Aurora’syieldfromitsTwinLake’ssharesisdelivereddailytoAuroraandotherTwinLakesshareholdersonaproratedbasis.AuroraagreestousebesteffortstoaccommodatedesiresforlateseasondeliveriesandconverselyPitkinrecognizesAurora’sdeliveryofwaterasbypassesorreleaseswillbebaseduponAurora’sannualyieldascurrentlyreflectedbyAurora’sownershipof2488.475sharesinTwinLakesReservoirandCanalCompany.Nevertheless,whilePitkinandAurorarecognizeneitheroneofthemcancompelaggregationofdeliveriesofTwinLakeswaterownedbyAurorawithTwinLakeswaterownedbyothershareholders,ifcircumstancesallowAurorawillnotrequirethatitsdeliveriesbelimitedtoitsdailyprorationofTwinLakesyield.TheExpressionofMutualIntentbetweenAuroraandTwinLakes,attachedheretoasExhibitF,andtheexpectationsofAuroraandTwinLakescontainedinthatletteragreewithPitkin’sexpectationsanddescribesatisfaction,withoutmodification,ofthewaterdeliveryobligationscontainedinSectionIIofthisAgreement.DeliveryofwatertotheRoaringForkwillbebaseduponprotocoldescribedinParagraphs18,19and20andtheirsubsections.18.2RecoveryYearReductionofAnnualWaterDelivery.Subjecttotheconditionshereinstated,the900A-Fofannualdeliveryand/orbypasswillbereducedto800A-FforthesubjectyearifAurora’stotalsystemstorageisatorbelowsixtypercent(60%)oftotalcapacityonanyApril1.Aurora’stotalsystemstorageisdescribedinExhibitE.Auroraagreestoupdateitsamountoftotalsystemstorageaschangesoccurtoreflectadditionorlossofstoragefacilities,changesincontractstoragecapacity,enlargementoffacilitiesorotherchangesinstoragevolume.Annually,AurorawillcommunicatetotheWestSlopePartiesitstotalsystemstoragequantityonApril1andexpressthatamountasapercentageoftotalsystemcapacityanddesbribethemethodologyforthiscalculation.ThisRecoveryYearReductionallowancewillceaseonceAurora’stotalsystemstoragehasrecoveredtoeightypercent(80%)oftotalcapacityanddeliveryofthe100A-Fwillonceagainbesubjecttotemporarysuspensionshouldtotalsystemstoragefalltosixtypercent(60%)orbelow.16
Nevertheless,theRecoveryYearReductiondescribedinthisparagraphwillnotapplyduringanyyearoryearsthatAurora’stotalsystemstorageisatorbelowsixtypercent(60%)oftotalcapacityonanyAprilfirstasaresultofAurorafillingexpandedsystemcapacityresultingfromconstmctionofadditionalstoragespace,theacquisitionofadditionalcontractstoragespace,enlargementofexistingfacilities,orincreaseinstoragevolume.19.ExchangedRoaringForkDeliveries.Subjecttotheconditionsstatedinthisparagraph19andtheremainderofSectionIIofthisAgreement,intheTwinLakesWaterYearsfollowingtheInitiationDateAuroramaycausetobedeliveredforthebenefitoftheRoaringForkRiveruptoanadditional100A-FofwaterannuallyduringthediversionseasonthatifdeliveredwouldmaketheamountofwaterdeliveredorbypassedtotheRoaringForkRiverinsuchayearpursuanttoparagraphs18and19andtheirsubparagraphsuptobutnotexceeding1,000A-F.Annually,priortotheinitiationofdiversionsbyTwinLakesdesignatedrepresentativesofPitkin,CRWCD,AuroraandTwinLakeswilldevelopsubjecttothetermsofthisAgreementdetaileddeliveryschedulesforwateravailableunderthisparagraph19reasonablyconsideringandreflectingthedesiredrate,timing,amount,locationandultimateuseofthewater,aswellastheoperationalneedsandconstraintsuponAuroraasaTwinLakesshareholderplusconstraintsupontheTwinLakescompanyandallTwinLakesfacilities.Pitkin,CRWCD,AuroraandTwinLakesmayconsultwithotherappropriateparties,ifany,indevelopingthedeliveryschedules.Deliveryschedulesmaybeupdatedfromtime-to-timethroughouttheWaterYearaswarrantedbyhydrology,operationalconstraintsorotherfactorsidentifiedinthisAgreement.ItisrecognizedbythePartiesthatdeliveriesunderthisparagraph19willbeconductedinamannerdesignedtomaximizebenefitstoRoaringForkRiverstreamflowswhichbenefitstheWestSlopePartiesandtheColoradoRiverbasinasstatedinparagraph20.ThosePartieswillalsoinvitetheU.S.BureauofReclamationtoparticipateinsuchmeetings.19.1TheExchangedRoaringForkDeliverywillbecontingentuponandlimitedbythefollowing:19.1.1Auroramustfirstobtainanadjudicatedrightallowingtheexchangeofupto900A-FofTwinLakesWateroverwhichAurorahasmaintaineddominionandcontrolinanyoneyearfromtheconfluenceoftheRoaringForkandFryingpanRiversupstreamontheFryingpanRivertoRuediReservoirandanadditionalexchange,asacomponentsubsetofthe900A-F,upto450A-FinanyoneyearfromRuediReservoirtoIvanhoeReservoirlocateduponIvanhoeCreek.IvanhoeReservoirisownedbyPuebloWaterandoperatedbytheBusk-IvanhoeWaterSystemAuthority.ThePartiesacknowledgeneitherPuebloWaternortheBuskIvanhoeWaterSystemAuthorityassumeanyliabilityforanyoperationsoractivitiesconductedpursuanttothetermsofthisAgreement.AnystorageofexchangedwaterinIvanhoeReservoirmustbepursuanttoacontractwiththeownerandoperatorofIvanhoeReservoir;and,19.1.2PitkinmustfirstobtainacontinuingcontractfromtheU.S.BureauofReclamationfor“If-&-When”storageof900A-FofwaterinRuediReservoir.PitkinagreestostoreatAurora’srequestanywaterAuroraisabletoexchangepursuanttosub-paragraph19.1.1above;and,17
19.1.3WatermustbeplacedintoIvanhoeReservoirpursuanttotheoperationofsub-paragraphs19.1.1and19.1.2above.Thereafter,duringthefollowingTwinLakesWaterYear,AurorawilldeliverforthebenefitofPitkinand/ortheWestSlopePartiesfromfacilitiesownedorcontrolledbyTwinLakesupondetaileddeliveryschedulesestablishedunderparagraph19waterinavolumeequaltoone-quarteroftheamountofwaterplacedintoIvanhoeReservoirthepreviousTwinLakesWaterYearuptoamaximumof100A-F.ThewaterplacedintoIvanhoeReservoirthepreviousTwinLakesWaterYearwillcontinuetoberecognizedasderivedfromtheexerciseofTwinLakeswaterrightsandthepropertyofAurora.WaterdeliveriesforthebenefitofPitkinand/ortheWestSlopePartiesmaynotbecalTiedovertosucceedingTwinLakesWaterYears.19.1.4AurorawillhavediscretiontonotplacewaterintoIvanhoeReservoirifAuroraingoodfaithdetermines1)suchwouldbedetrimentaltoBusk-IvanhoeSystemseniorwaterrights,or2)suchisnotinaccordwithanycontractwiththeoperatorandownerofIvanhoeReservoir.19.2Auroraatitsdiscretionmaychoosetopursueasanalternativetosub-paragraphs19.1.1and19.1.2above,adjudicationofajuniorstoragedecreeforupto450A-FwithinIvanhoeReservoir.Ifsuchastoragerightisobtained,acontractwiththeoperatorandownerofIvanhoeReservoirisobtainedandwaterisstoredthereunderwithinIvanhoeReservoirthenduringthefollowingTwinLakesWaterYearAurorawilldeliverwater,inaccordancewithdeliveryschedulesestablishedunderparagraph19,fromfacilitiesownedorcontrolledbyTwinLakesforthebenefitoftheRoaringforkRiverinavolumeequaltoone-halfoftheamountofwaterplacedintoIvanhoeReservoirthepreviousTwinLakesWaterYearunderthisjuniordecreeuptobutnotexceedingatotalof1,000A-Faspursuanttoparagraphs18and19andtheirsubparagraphs.ThebalanceofthewaterplacedintoIvanhoeReservoirthepreviousTwinLakesWaterYearunderthatjuniorstoragedecreewillberecognizedasthepropertyofAurora.WaterdeliveriesforthebenefitofPitkinand/ortheWestSlopePartiesmaynotbecarriedovertosucceedingTwinLakesWaterYears.Anysuchjuniorstoragerightmay,atAurora’sdiscretion,beheldjointlywiththePuebloBoardofWaterWorksbutAurora’sobligationsunderthisAgreementshallcontinue.19.3Thefilingandpursuitofapplicationsfortheexchangeand/orstoragewaterrightsdescribedwithinthisparagraph19byAurorawillbeinitsdiscretionandatitssolecost.IfAuroraproceedswiththeadjudicationofeitherorbothoftheexchangeorstoragerightsdiscussedwithinparagraph19thenPitkinwillrequestandpursuetheIf-&-WhenwaterstoragecontractwithinRuediReservoirdescribedwithinthisparagraph19.Auroraagreesitwillbesolelyresponsibleforthecostsofobtaininganysuchcontract.ShouldPitkinsuccessfullyobtainanIf-&-WhenwaterstoragecontractwithinRuediReservoirdescribedwithinthisparagraph19PitkinagreestopayforaproportionalamountoftheannualcostsbaseduponitsyieldintheexchangeforthoseyearswhentheexchangeproducesabenefitfortheRoaringForkRiverandAuroraagreestoberesponsiblefortheremainingannualcosts.AuroraagreesnottoseekanyexchangerightthatwouldbeseniortoanyexchangebyBWCDdescribedinSectionIII,below.ShouldAuroradecidetopursueanapplication18
foranexchangeand/orstoragerights,thePartiesagreetodiscuss,ingoodfaith,whetherAurorashouldincludewithinsuchapplication,totheextentlegallyallowed,theabilitytobeneficiallyusewaterintheRoaringForkRiverbelowMaroonCreek,includingbutnotlimitedto,useforinstreamflowpurposesintheRoaringForkRiverasadministeredbytheColoradoWaterConservationBoard(“CWCB”),fordeliverytothePitkinCountyRecreationalIn-channelDiversiondecreedinCaseNo.10CW305,WaterDivision5orforuseintheBWCD’saugmentationplan(s).19.4ThePartiesagreeanywatermovedintoIvanhoeReservoirbytheexchangeproceduredescribedinparagraph19.1retainsitsidentityaswaterderivedfromtheexerciseoftheTwinLakeswaterrightsandisnotcountedagainstanyvolumetriclimitationsofanyBusk-IvanhoeSystemwaterrightincludinganyandallBusk-Ivanhoejuniorrights.19.5WaterdeliveredtotheRoaringforkRiverasaresultofanexchangeintoRuediandIvanhoeReservoirspursuanttothisparagraph19willbemadeconsistentwiththedeliveriesdescribedinparagraph18anditsubsections.19.6AllPartiesagreetonotopposeanyWaterCourtproceedingbyAurorainitiatedsolelytoobtaindecreedrightsofexchangeorchangesasnecessarytomoveTwinLakeswaterorajuniorIvanhoeReservoirstoragerightinaccordancewiththeprovisionsofthisparagraph19.ThePartiesagreetheywillnotopposetheissuanceofanIf-and-WhencontractbytheU.S.BureauofReclamationforstorageofwaterashereindescribed.ThePartiesfurtheragreetoreasonablycooperatewithAurorainexploringandpossiblyimplementingalternativelocationsandmethodsforAuroratoexchangewaterdeliveredatGrizzlyReservoirafteritpassestheCityofAspenforthebenefitofAurora.20.furtherCooperationRegardingRoaringForkflows.IntheeventofanyunresolveddisputeconcerningtherateandtimingoftheRoaringForkDeliverywaterpursuanttoparagraphs18or19,Aurora,CRWCDandPitkin,agreeamongstthemselvesthatsuchdisputemayberesolvedbyadjustingtherateandtimingoftheRoaringForkDeliveryinordertomostcloselyachieveimprovementandincreasestostreamflowintheRoaringForkRiverandotherconsumptiveandnon-consumptiveusesthatdonotrequireanychangeinthecharacterofthewaterdeliveredtotheRoaringForkRiverdrainageattimeswhenitismostneededandproducesthemostbenefitfortheRoaringForkRiver.Intheeventthat,followingsuchconsultationprocess,theCRWCDandPitkindonotreachagreementamongstthemselvesregardinganyadjustmentinflowrateortimingofflowsprovidedunderparagraphs18and19,theCRWCDwilldefertothepositionofPitkin.ThePartiesrecognizethattheremaybetimesorentirewateryearswhenPitkinandCRWCDrequestthatnowaterdeliveriesbemadetotheRoaringForkRiverasaconsequenceofsubstantialorsufficientriverflowspresentintheRoaringForkoritstributariesorbecauseofathreatoffloodingintheRoaringforkRiverdrainage.Atsuchtimes,PitkinandtheCRWCD’srequestforabatementofdeliverywillbehonoredanddeliveryobligationswillberesumedlaterintheyeartotheextentpossiblegivenconsiderationsdescribedinparagraph18and19.ThePartiesfurtheragreetoreasonablycooperatewitheachotherandPitkinCountyentitiesinexploringandpossiblyimplementingalternativelocationsandmethodsforincreasingRoaringforkRiverFlowsthroughtheCityofAspen.Shouldsuchaprojectbeundertaken,andAuroraagreesatitsdiscretiontofinanciallyparticipate,itwilldosoinan19
amountupto1,000A-fifavailable.IfAuroraparticipatesinsuchproject,Aurora’sdeliveryobligationssetforthinparagraph18and19willbereducedbyAurora’svolumeofparticipationproportionately.Additionally,thePartiesalsoagreeandacknowledgethatnoneofthemhaveanyintenttoassert,anddonotassert,thatfutureactivitiesunderthisSectionIIofthisAgreementconstituterelinquishmentorabandonmentofanyofAurora’sownershipofanyTwinLakeswaterorwaterright.furtherthePartiesagreetocooperateinthefuturetopreventorcombatattemptstoallegerelinquishmentorabandonmentofAurora’sownershipofanyTwinLakeswaterorwaterrightasaresultoftheiractivitiesunderthisSectionIIofthisAgreement.21.CRWCDDeliveryOffset.TheCRWCDisthebeneficiaryofportionsoftherightsdecreedinTwinLakes’so-calledjuniordecreeenteredinWD-5,95CW321.Thereunder,atcertaintimeswaterisdeliveredforthebenefitofCRWCD.ThePartiesagreethatinyearswhenwaterisdeliveredforthebenefitofCRWCDpursuanttoWD-5,95CW321theamountofwatersodeliveredtotheRoaringForkRiverwillreducebyanequalamountAurora’sdeliveryobligationsunderparagraph18,above.Nevertheless,thecombinedreleaseofstoredwaterfromGrizzlyReservoirpursuanttoparagraphs18and19andanyGrizzlyReservoirstoragereleasemadepursuanttothetermsofthedecree,stipulation,andimplementingagreementsrelatedtoWD-5,95CW321shallnotexceed200A-finanyyear.ThePartiesacknowledgeandagreethatthisAgreementisnotintendedto,anddoesnot,interpret,change,modify,revise,amend,replace,displace,supersedeorotherwiseimpactthedecreeandexistingstipulationsenteredinWD-5,95CW321,oranyexistingcontractoragreementrelatedtoWD-5,95CW321.22.Busk-IvanhoeorTwinLakesFacilityfailure.IntheeventofaBusk-Ivanhoefacility(includingbutnotlimitedtotheCarltonTunnel)failureorasituationrequiringsubstantialandunusualmaintenancethatpreventsdeliveryofBusk-IvanhoeSystemwatertoWD-2orthedeliveryofwatercontemplatedinparagraphs18and19,theprovisionsofparagraphs18and19hereinwillbesuspendeduntilsuchtimeasthefailedfacilitiesarerepairedandoperating.ThissamesuspensionwillalsoapplyifTwinLakesexperiencesafailureofitsGrizzlyReservoirandlorfacilitiestheretoorplannedorunplannednecessarymaintenancethatpreventsthedeliveryofwatercontemplatedinparagraph18and19.III.FryingpanRiverExchangesandStorage23.BWCDStorageAccounts.FollowingtheInitiationDateAurorawillprovideBWCD,onapermanentbasis,astorageaccountforthestorageofupto50A-Fofwaterwithin,andreleasefrom,IvanhoeReservoirinanyoneReservoirAccountingYear(May1-April30).ThisstorageaccountwillbepursuanttoacontractbetweenAurora,BWCDandtheownerandoperatorofIvanhoeReservoir.BWCDwillbeallowedtocarryoveritswaterinthisIvanhoeReservoirstorageaccountfromoneReservoirAccountingYeartothenextbutthetotalamountofBWCDwateravailableforusebyBWCDinIvanhoeReservoirstoragemaynotexceed50A-FinanysingleReservoirAccountingYear.AurorawillalsoprovideBWCDonapermanentbasisaNon-siteSpecificstorageaccountnottoexceed50A-FatalocationorlocationstobedeterminedbyAurorawithinoneormorestoragefacilitiesoftheAuroraWatersupplysystem.BWCDwillbeallowedtocarryoveritswaterinthisNon-siteSpecificstorageaccountfromoneReservoirAccountingyeartothenext.ShouldBWCDdepleteitsIvanhoeReservoirstorage20
accountofitsstoredwaterwithinanyoneReservoir/AccountingYearandnotbeabletorefillthisspacethroughexchangesorsubstitutewatersupplyplans,andprovidedthatBWCDhaswateravailabletoitintheNon-siteSpecificstorageaccount,Aurorawillreplaceupto50A-fwithintheIvanhoeReservoirstorageaccountandtakeforAurora’sownuseanequalamountfromtheNon-siteSpecificstorageaccount.BoththeIvanhoeReservoirandNon-siteSpecificstorageaccountswillbeinitiallyfilledwithwateravailabletoBWCDthroughexchangesorsubstitutewatersupplyplansthatBWCDmaylegallyoperateintoIvanhoeReservoir,andmayberefilledbyBWCDthroughexchangesorsubstitutewatersupplyplansthatBWCDcanoperateintoIvanhoeReservoiratanytimeduringanyReservoirAccountingYear.AllstorageofwaterinIvanhoeReservoirunderthisparagraph23andotheroperationsinvolvingIvanhoeReservoirpursuanttothisAgreementwillbeconductedbyAurorasoasnottoimpactwateryieldsoftheBusk-IvanhoeSystemtoitsotherowners.IntheeventofafailureofIvanhoeReservoirfacilitiesorasituationrequiringplannedorunplannednecessarymaintenancethatpreventsstorageorreleasesofwaterascontemplatedinparagraphs23-28,theprovisionsofparagraphs23-28thatcannotbeexecutedintheeventthatwaterstorageorreleasesarepreventedwillbesuspendeduntilsuchtimeasnecessarymaintenance,repairorreplacementiscompletedonthefailedfacility.ThePartiesacknowledgethisAgreementdoesnotchange,modify,revise,amend,replace,displaceorsupersedeanycurrentlyexistingcontractoragreementbetweenPuebloWaterandAuroraconcerningtheBusk-IvanhoeWaterSystemAuthority.24.BWCDExchanges.BWCDwillmoveupto100A-fofwaterintoIvanhoeReservoirstoragebyadjudicatedexchangeoradministrativelyapprovedexchanges,substitutewatersupplyplansand/orcontractexchangesthatBWCDwillhaveresponsibilityforobtaining.BWCDagreestoberesponsibleforallcostsassociatedwithanyadjudication(s),substitutesupplyplan(s)orcontract(s).RegardingtheNon-siteSpecificstorage,solongassuchwaterremainsreadilyavailableforBWCD’suse,Auroramay“place”atitscostsomeorallofthevolumeofwaterinexcessof50A-fthatBWCDhaslegallyandphysicallymovedintoIvanhoeReservoirinanyoneReservoirAccountingYearintothestoragefacilityorfacilitiesofAurora’schoicethroughitsinternalaccountingproceduresorotherwise.IfAuroradoesnotmovewaterintoNon-siteSpecificstorageduringanyReservoirAccountingYear,thevolumeavailableforusebyBWCDinIvanhoeReservoirstorageduringsaidyearmaystillnotexceed50A-f.AnyBWCDwaterremaininginIvanhoeReservoirstorageattheendofaReservoirAccountingYearthatAuroracouldhaveplaced,butdidnot,intotheNon-siteSpecificstorageaccountduringsaidyearwillbecarriedoverintotheBWCDstorageaccounts,andappliedfirsttotheIvanhoeReservoiraccount,forthesubsequentReservoirAccountingYear.AllPartiesagreetonon-monetarysupportandnon-oppositionregardinganyWaterCourtproceedingbyBWCDinitiatedsolelytoobtaindecreedrightsofexchangetomovewaterintoIvanhoeReservoir,aswellasanyWaterCourtproceedingbyAurorainitiatedsolelytoobtaindecreedrightsofexchangetomoveBWCDwaterfromIvanhoeReservoirintotheNon-siteSpecificstorageaccount,forthepurposeofthisSectionIII.AllPartiesfurtheragreetonon-monetarysupportandnon-oppositiontoanyadministrativerequestforapprovalofanyexchangeorsubstitutewatersupplyplansbyBWCDinitiatedsolelytoobtainpermittedrightsofexchangetomovewaterintoIvanhoeReservoir,aswellasanyadministrativerequestforapprovalofanyexchangeorsubstitutewatersupplyplansbyAurorainitiatedsolelytoobtainpermittedrightsofexchangetomoveBWCDwaterfromIvanhoeReservoirintotheNon-siteSpecificstorageaccount,forthepurposesofthisSectionIII.21
AuroraagreesitwillassessonanobjectivebasisanyrequestbyBWCDtoAuroraforacontractexchangetomovewaterintothestorageaccounts.25.BWCDPaymentstoAurora.BWCDwillannuallypaytoAurorathefollowingdescribedportionofIvanhoeReservoir’soperationandmaintenanceexpenses.Theamountwillequalonepercent(1%)oftheannualoperationsandmaintenancebudgetedcostsforIvanhoeReservoirsystem.ThiscalculationshallincludeallcostsrelatedtoIvanhoeReservoirandotherwestslopecomponentsoftheBusk-IvanhoeSystem.ThispaymentwillalsocoverallBWCD’soperationsandmaintenancepaymentobligationsconcerningtheNon-siteSpecificstorageaccount.AurorawillprovideaninvoicetoBWCDforallofthechargesbyNovember30ofeachyearandpaymentthereforwillbeduewithin90days.Theonepercent(1%)oftheannualoperationsandmaintenancebudgetedcostsforIvanhoeReservoirsystemBWCDobligationisproportionateto50A-F.Bywayofexample,ifBWCDplacedatotaloffive(5)A-FintoIvanhoeReservoirduringaReservoirAccountingYear,thenBWCDwouldoweten(10)percent(10%)oftheonepercent(1%)oftheannualoperationsandmaintenancebudgetedcostsforIvanhoeReservoirsystem.ThisobligationwillbecomeeffectivewhenBWCDactuallyutilizeseitherstorageaccount,andwilllapseifBWCDrelinquishesrightstousebothstorageaccountsoruponabandonmentorcancellationofBWCDwaterrightsplacedintothestorageaccounts.26.AccountingInformationandEvaporationCharges.Asbetweenthemselves,BWCDandAuroraagreethat:1)BWCDandAurorawillprovideeachotherwithallinformationknownandavailabletothemandneededforaccountingoftheBWCDwaterstoredintheIvanhoeReservoirandNon-siteSpecificstorageaccounts;and,2)BWCDwillberesponsibleforpaymentofallevaporationchargesassociatedwithanywaterstoredineitheraccount;and,3)theamountofevaporationfortheIvanhoeReservoirstoragespacewillbeproportionallydeterminedbycomparingtheamountofwaterBWCDhasinstoragewiththetotalamountinstoragewithinIvanhoeReservoir;and,4)theamountofevaporationfortheNon-sitespecificstoragespacewillbeproportionallydeterminedbycomparingtheamountofwaterBWCDhasinstoragewiththetotalamountinstoragewithinthefacilityorfacilitieswhereAurorachoosestoaccommodatesaidwater.27.RelativePrioritiesofExchangesandStorage.AsoftheEffectiveDateofthisAgreementneitherAuroranortheBusk-Ivanhoesystemholdanydecreed,permittedorcontractualrightsofexchangefrompointsonorbelowtheFryingpanRivertoIvanhoeReservoir.SolongasBWCDisreasonablydiligentinrequestingandprosecutingdecreedrightsofexchangetomovewaterintoIvanhoeReservoirstoragespace,includingsuchamountsasAuroramay“place”intotheNon-siteSpecificstoragespace,AuroraagreesitwillnotseeknoroperateanyadjudicatedexchangeintoIvanhoeReservoir,includingbutnotlimitedtoanyexchangedescribedinparagraph19above,withanadministrationdateseniortothatobtainedbyBWCDifsuchAuroraexchangewouldcallouttheBWCDexchange.Additionally,solongasBWCDisreasonablydiligentinrequestingandprosecutingdecreedrightsofexchangetomovewaterintothe50A-FofIvanhoeReservoirstoragespaceand50A-FofNon-sitespecificstoragespace,Auroraagreesitwillnotseeknoroperatethejuniorstoragedecreedescribedinparagraph19.2abovewithanadministrationdateseniortothatobtainedbyBWCDforitsexchangeifsuchAurorajuniorstoragedecreewoulddiminishthecontemplatedyieldoftheBWCDexchange.22
28.BWCDIvanhoeReservoirReleases,StudiesandCosts.BWCDwillutilizeitswaterinthestorageaccountsforpurposesofsupplyingaugmentationorsubstitutesuppliestotheFryingpanRiveraboveRuediReservoirorforstreamflowsupportinthatstreamreach.AbsentanyagreementwiththeCWCBforinstreamflowuse,releasessolelyforstreamflowsupportmaybesubjecttootherwaterusersoperatingexchangesorotherwisedivertingthewater,orifalsobeingreleasedtoreplaceout-of-prioritydepletionsorforadecreedbeneficialuse,otherwaterusersmayoperateexchangesorotherwisedivertthewaterandprovideasubstitutesupplyforthereleasedwater,solongastheDEOensuresdeliveryofthereleasedamount,minustransitlosses,toanydecreedpointofreplacementoruse.BWCDmayrequestreleasesofwaterfromthestorageaccountsatanytimeandAurorawilltakeallreasonablestepstoaccommodatetheserequests.AurorawillnotobjecttoBWCD’suseofthewaterplacedintothestorageaccountsdescribedinparagraph23foranylegalbeneficialuseatanylocationwithinitsservicearea.AlthoughtheFryingpanRiverbasinaboveRuedipresentsthemostlikelyplaceofuse,BWCDmayfindneedforthissupplyinotherlocationswithinitsservicearea,andifsoAurorawillnotobjectthereto.BWCDandAuroraacknowledgetheIvanhoeReservoirissituatedathighaltitudeandwinterseasonreleaseswillposechallenges.NeverthelessBWCDandAuroraagreetoreasonablyassistoneanotherandtoemploytemperatureappropriateandsituationallyreasonablemethodsinovercomingsuchchallenges.Initially,BWCDandAurorawillcooperativelyseekagreementwiththeCWCBthatmightallowBWCDtoavoidwinterreleases.Concurrently,AuroraandBWCDagreetocooperativelystudyvariousmethodsofaccomplishingwinterreleasesifsucharenecessaryandAuroraagreesitwillpayfortheinitialfeasibilitystudyupto$25,000forsuchstudy.Inadditiontothatinvestigation,BWCDagreestostudythepotentialforotherwinteraugmentationsourcessuchasreleasesfromotherimpoundmentstributarytotheFryingpanRiver.BWCDagreestopayallcostsforthisinvestigation.IfIvanhoeReservoirreleasesarestilldeterminedtoberequired,thenAuroraandBWCDagreetopayone-halfeachuptoajointtotalof$260,000.00(upto$130,000each)foranynecessaryconstructionandinstallationoffacilitiesthat,intheexerciseofnon-arbitrarygoodfaith,bothAuroraandBWCDdeterminearenecessitatedbythestudy.Bothentitiesmustagreetothedevelopmentoftheprojectdeterminedfromthestudyandeachwillpayequalamountsfortheprojectdevelopment.BWCDagreesitwillpayforthehydrologicmodelingoftheFryingpanBasinneededtosupporttheexchangerequestsformovementofwaterintoIvanhoeReservoir.BWCDwillsharethehydrologicmodelingitdevelopswithAurora.AurorawillconductandpayforacapacitysurveyofIvanhoeReservoirifneededforthisstudy.AurorawillsharethecapacitysurveywithBWCD.AsoftheEffectiveDateAuroraandBWCDhaveidentifiedthefollowingthreepotentialwinter-releasealternatives:1)siphonpipeline;2).smallpumpstationandpipeline;and3)ajackandborepipelineconveyingwateraroundIvanhoeReservoirbygravityflow.Thesealternativesarelistedbywayofexampleandarenotmeanttoexcludeotheragreeduponmethodsincluding,butnotlimitedto,approvedslugreleases.AuroraandBWCDagreetheirrightsandobligationsunderthisSectionIIIareconditionaluponentryofacontractbetweenAurora,BWCDandtheownerandoperatorofIvanhoeReservoirauthorizingBWCD’suseofIvanhoeReservoirastheyagreeforthepurposesofSectionIII.AuroraandBWCDagreetheywillactivelycooperateindiligentgoodfaithattemptstoobtainrequiredauthorizationforsuchuseofIvanhoeReservoirandtoimplementtheprovisionsofSectionIIIofthisAgreement.IfdespitesucheffortssuchauthorizationisnotobtainedAuroraagreesitwillpayupto$130,000.00discussedabovetowardalternativesolutionstomake50A-fofwateravailabletoBWCDtributarytotheFryingpanRiverthatdoesnotinvolveuseofIvanhoeReservoir.23
29.BWCDSupportofBoxCreekReservoirandNoChangestoBusk-IvanhoeAgreements.InviewoftheagreementsinthisSectionIII,BWCDspecificallyacknowledgesAuroraisworkingtowarddevelopingawaterreservoirinLakeCounty,ColoradoreferredtoastheBoxCreekReservoir,generallydescribedinExhibitB.BWCDagreestoacknowledgeitssupportforAurora’sdevelopmentofBoxCreekReservoirinwritingintheformofExhibitC,attached,asmayberequestedbyAurora.ThisAgreementdoesnotchange,modify,reviseoramendanyothercontractoragreementbetweenanyofthePartiesandB-Iftc.AuroraagreesthatitwillnotrequestB-IInc.toperformanyillegaloperationsoractivities.ThePartiesacknowledgethisAgreementdoesnotchange,modify,revise,amend,replace,displaceorsupersedeanycurrentlyexistingcontractoragreementbetweenAurora,B-IInc.,theBusk-IvanhoeWaterSystemAuthorityorPuebloWaterconcerningtheBusk-IvanhoeSystem.IV.ShoshoneOutageProtocol&ShoshonePermanency30.ShOPAgreement.TheShoshonePowerPlantisamainstemhydroelectricityplantwithgenerationfacilitieslocatedadjacenttothemainstemoftheColoradoRiverdownstreamfromitsconfluencewithShoshoneCreekandwestofExit125ofInterstateHighway70(“SPP”).TheSPPiscurrentlyownedandoperatedbyPublicServiceCompanyofColorado,d/b/aXcelEnergy(“PSCo”).TheSPPhasaseniorhydropowerwaterrightwitha1902Appropriationfor1250cfs(“SeniorHydropowerRight”)andajuniorhydropowerwateriightwitha1929Appropriationfor,158cfs(“JuniorHydropowerRight”).TheSeniorHydropowerRightandtheJuniorHydropowerRightarecollectivelyreferredtoforpurposesofthisAgreementasthe“SPPWaterRights.”Severalentities,’someofwhomarepartiestothisAgreemententeredintoanAgreementdatedJune27,2016referredtoastheShoshoneOutageProtocol(USBuRecAgreementNo.13XX6C0129)(“ShOPAgreement”).ThepartiestotheShOPAgreement1)recognizedwhentheSPPisoperatingitsrivercallitcancommandtheflowoftheColoradoRiverandcertaintributariesincertainstreamconditionsbyexercisingtheSeniorHydropowerRightagainstupstreamjuniorwaterrights;2)recognizedwhenevertheSPPisnotoperatingbecauseofrepairs,maintenanceorotherreasons,theSPPrivercallcannotbeexercisedandupstreamjuniorwaterrightswouldbeabletodivertwater;3)recognizedadesireofsometomaintaintheflowregimenoftheColoradoRiverashistoricallyinfluencedbytheSeniorHydropowerRight;and4)agreedamongthemselvestoimplementcertainoperatingproceduresduringtimeswhentheSPPwasnotoperating.IncludedwithintheShOPAgreementwereprovisionswhencertainpartiestheretowouldnotdivertundertheirwaterrightspertheoperatingprocedures.31.AuroraOwnership.31.1ThePartiesacknowledgeAuroraistheownerofone-halfoftheHomestakeSystemwhichsystemincludes,interalia,theHomestakewaterrightsfirstdecreedinEagleCountyDistrictCourtCaseNo.CA-i193withAppropriationdatesof1952.ThePartiesUSBureauofReclamation,ColoradoDivisionofWaterResources,DenverWaterBoard,CRWCD,MiddleParkWCD.NorthernColoradoWCD&itsMunicipalSubdistrict,GrandValleyWaterUsersAssociation,OrchardMesaIrrigationDistrictandtheGrandValleyIrrigationCompany24
furtheracknowledgethatasaone-halfowneroftheHomestakeSystemAuroracannotbind,andisnotbinding,theowneroftheotherone-halfoftheHomestakeSystem,ColoradoSprings-Utilities,toanyoftheprovisionshereof.InviewoftheforgoingAuroraagreesthat,subjecttothefurthertermsandprovisionshereinstated,itwillsubjectitsone-halfoftheHomestakewaterrightstothetermshereinfollowing.ThePartiesacknowledgethisAgreementdoesnotchange,modify,revise,amend,replace,displaceorsupersedeanycurrentlyexistingcontractoragreementbetweentheCityofColoradoSpringsandAuroraconcerningtheHomestakeSystem(“HomestakeAgreements”).31.2ThePartiesacknowledgeAuroraistheowneroftwo-thirdsoftheoutstandingsharesoftheFremontPassDitchCompany(“FPDC”)whichCompanyownsColumbineDitchwaterrightsdecreedinCivilActionNo.963,DistrictCourtforEagleCounty,WD-5,90CW340,O9CW1$7and09CW188.ThePartiesfurtheracknowledgethatasatwo-thirdsowneroftheFPDCAuroracannotbind,andisnotbinding,theowneroftheotherone-thirdoftheFPDC,theClimaxMolybdenumCompany(“CMC”),toanyoftheprovisionshereofincludinganythingthatmayinterferewithCMC’srightsunderanyFPDCoperatingagreement,contractsorpractices.ThoseCMCrightsinclude,interalia,therighttouseallofthewateravailablebytheFPDCrightswithinanygivenyear.InviewoftheforgoingAuroraagreesthat,subjecttothefurthertermsandprovisionshereinstated,itwillsubjectitstwo-thirdsoftheFPDCwaterrights,whenthesamearenototherwiseavailabletoCMC,tothetermshereinfollowing.32.TermofAuroraShOPAgreement.TheinitialtermofAurora’sagreementregardingitsone-halfoftheHomestakewaterrightsandtwo-thirdsoftheFPDCwaterrightsinaccordancewiththeShOPAgreementashereinspecified(“AuroraShOP”)willbeuntilJune27,2056.ThisperiodwillcommenceimmediatelyfollowingtheInitiationDateasdescribedinSectionI.ofthisAgreement.33.AuroraShOPAgreement.UnderthisAuroraShOP,iftheSPPisnotcallingbecauseofrepairs,maintenanceorotherreasonsandflowattheDotseroGaugeislessthanorequalto1,250cfs(notincludingShepherdedStreamFlowReservoirReleases2)Auroraagreestooperateitsone-halfoftheHomestakewaterrightsandtwo-thirdsoftheFPDCwaterrightsasiftheSeniorHydropowerRightwascallingforaflowof1,250cfsattheDotseroGauge.AuroraagreesthatifitacquiresorappropriatesanywaterrightsthatarejuniortoandlegallyandphysicallysubjecttotheSeniorHydropowerRightcall,thenAurorawilloperatesuchrightpursuanttotheAuroraShOPinaccordancewiththetermsofthisAgreement.2ThePartiesadoptthedefinitionofShepherdedStreamfiowReservoirReleasesandconsiderationsthereofassetforthintheShOPAgreement.IntheShOPAgreementShepherdedStreamfiowReservoirReleasesaredefinedasthosereservoirreleasesmadeforthereservoirowners’purposesofincreasingstreamflowseitherattheShoshonePowerPlant,inthe15-MileReach,oratotherstreamlocationsattheratesandvolumesofthereservoirreleases,providedsuchreleasesaremadefordecreedbeneficialusesforinstreamorin-channelpurposesatanysuchlocationsincluding,butnotlimitedto,endangeredfishspeciespurposeswithinthe15-MileReach.The15-MileReachisthereachoftheColoradoRiverwhichextendsfromthepointatwhichthetailracecommontotheGrandValleyPowerPlantandtheOrchardMesaIrrigationDistrictpumpingplantreturnstotheColoradoRiverbelowtheGrandValleyIrrigationCompanydiversiondam,downstreamtotheconfluenceoftheColoradoRiverandGunnisonRiver.25
33.1DuringAuroraShOPOperationsdefinedinparagraph33above,Auroraagreesthat,withrespecttoitsone-halfinterestintheHomestakeProject,theWestSlopepartiestothe2010ConsolidatedWaterExchangeAgreementbetweenAurora,CRWCDandothers(the“2010ConsolidatedExchangeAgreement”)mayoperateexchangesintothe4,000acrefootportionofWestSlopecreditavailablepursuanttothe2010ConsolidatedExchangeAgreementatHomestakeReservoir.Ifthe4,000acrefootWestSlopecreditavailablepursuanttothe2010ConsolidatedExchangeAgreementatHomestakeReservoirisfulloriftheWestSlopepartiestothatagreementdonotoperateunderthatexchange,thenAurorawilloperateitsone-halfoftheHomestakewaterrightsandtwo-thirdsoftheFremontPassDitchCompanywaterrightsasiftheSeniorHydropowerRightwascallingforaflowof1,250cfsattheDotseroGaugesetforthinparagraph33above.33.2VoluntaryLeaseDuringAuroraShOPoperations.Ifthe4,000acrefootWestSlopecreditavailablepursuanttothe2010ConsolidatedExchangeAgreementatHomestakeReservoirisfullduringAuroraShOPoperations,thenAuroramaychoosetoleasefromtheCRWCD,onaone-yearspot-marketbasis(i.e.,if-available),upto500acrefeetfromtheCRWCD’sWolfordMountainReservoirwatermarketingpooiforreplacementpurposesbyAurora.TheCRWCDagreesthat,duetotheuniquenatureofthisAgreementandthemutualcompromisesincludedherein,therateofanysuchleaseshallnotbegreaterthantwotimestheCRWCD’sthen-currentspot-marketleaserateforin-basinmunicipaluse.TheformofsuchleasewillbegenerallyconsistentwiththeCRWCD’sthen-currentstandardformcontract,thecurrentversionofwhichisattachedforexamplepurposesonlyasExhibitDattachedtothisAgreement.ThePartiesagreetonotopposeAurora’seffortstousewaterleasedpursuanttothisparagraph33.2byexchangeorsubstitutesupplyforreplacementpurposesinaccordancewiththeprioritysystem.33.3DroughtExceptiontoAuroraShOP.Ifthefollowingtwoconditionsexist(“DroughtTriggers”)asofApril1,andforthedurationofsuchperiodthatbothconditionsexist,AurorawillnotberequiredtofollowtheAuroraShOP:1)the“mostprobable”forecastofstreamfiowpreparedbytheNaturalResourcesConservationService(orsuchotherforecastastheCRWCDandAuroraagreetouse)indicatestheApril—JulyundepletedstreamfiowattheColoradoRivernearDotseroGaugewillbelessthanorequaltotheeighty-fivepercent(85%)ofaverage;and2)Aurora’stotalsystemstorageisatorbelowsixtypercent(60%)oftotalcapacityonApril1andhasnotreachedeighty(80%)oftotalcapacityatanytimethereafter.ForpurposesofthisAgreement,Aurora’stotalsystemstorageisdefinedassetforthonExhibitEtothisAgreement.33.4“Paper-fill”AccountingduringAuroraShOPOperation.ThePartiesacknowledgetheColoradoStateEngineer’sadministrativepracticeof“Paper-fill”accounting.Generally,underthisadministrativepractice,ifastoragefacilityisin-priorityandcanstorewaterbuttheoperator(s)thereofchoosenottostorewater,thentheStateEngineerorhis/herdesigneeaccountforthewaterstoragerightasthoughwaterwasphysicallyplacedintostorageorotherwisediverted.ThePartiesacknowledgethatpursuanttotheColoradoStateEngineer’scurrentadministrationregardingShOPAgreementoperations,bypassesmadeinthecurrentyearareonlyaccountedforunderthatyear’sstoragevolumeandarenotaccountedforunderthestoragevolumeinthenextHomestakeReservoirWaterYear(November—26
October31).IffutureadministrativeactionsbytheColoradoStateEngineerrequirethatbypassesundertheAuroraShOPmadeinthethen-currentyearareaccountedagainsttheHomestakeReservoirstoragedecreeunderboththecurrentyearandfollowingyears’storagevolume,then,ifasaresultofAurora’soperationsunderAuroraShOP,the“PaperFill”accountingagainstAurora’sHomestakewaterrightsexceeds500A-Finthethen-currentstorageseason,theAuroraShOPOperationwillbeexcusedfortheremainderofthatstorageseasonandthesubsequentyear(s)totheextentofandsolongassuch“Paper-Fill”thatexceeds500A-F.Alternatively,AuroramaychoosetoleasefromanyWestSlopesupplierortheCRWCD’sWolfordMountainReservoirwatermarketingpooi,onaone-yearspot-marketbasis(i.e.,if-available),uptotheamountofanyPaper-fillforthethencurrentstorageseasonforexchangeandreplacementpurposesbyAurorasothatAuroramaydivertandstorewateratitsfacilitiesandsothatwaterwillbereleasedfromWolfordMountainReservoirorothersourcesasacomponentofachievingtheflowrelatedgoalsoftheAuroraShOP.TheCRWCDagreesthat,duetotheuniquenatureofthisAgreementandthemutualcompromisesincludedherein,therateofanysuchleaseshallnotbegreaterthantwotimestheCRWCD’sthen-currentspot-marketleaserateforin-basinmunicipaluse.TheformofsuchleasewillbegenerallyconsistentwiththeCRWCD’sthen-currentstandardformcontract,thecurrentversionofwhichisattachedforexamplepurposesonlyasExhibitDattachedtothisAgreement.ThePartiesagreetonotopposeAurora’seffortstousewaterleasedpursuanttothisparagraph33.4byexchangeorsubstitutesupplyforreplacementpurposesinaccordancewiththeprioritysystem.33.5AuroraagreesthatitwillnotdivertorexchangeanyofthewaterreleasedorbypassedbyanypartypursuanttotheShOPAgreementorotherwiseoperateitssystemorwaterrightsinamannerthatwilldiminishthebenefitoftheShOPAgreementtothestreamsystemoftheflowsofupto1,250cfsattheDotseroGauge.34.ShoshonePermanency.CRWCD,BWCD,Eagle,GVWUA,OMIDandUte(inadditiontootherwesternslopeentitieswhoarenotpartiestothisAgreement)seektoachievepermanentprotectionoftheflowregimecreatedbyoperationoftheSPPregardlessofwhethertheSPPcontinuestooperateinthefuture(“ShoshonePermanency”).AuroraagreestonotopposeShoshonePermanencyasfollows:34.1AurorawillnotopposeasaleorotherformoftransferofinterestbyPSCoofitsSPPand/orSPPWaterRights,includinganycontractualinteresttherein,totheCRWCDoranyotherWestSlopeentityorconsortiumcontainingWestSlopeentitiesforthepurposeofachievingShoshonePermanency.34.2AurorawillnotseektoacquireorparticipateintheacquisitionoftheSPPand/ortheSPPWaterRights.ExceptasmayoccurwithrespecttoapotentialacquisitionoftheSPPand/orSPPWaterRightsorinterestthereinbyaWestSlopeentityconsistentwithparagraph34.1,above,AurorawillnotsupporttheacquisitionoftheSPPand/ortheSPPWaterRightsitselforbyanyotherentity.34.3ThePartiesrecognizetheexistenceofthatcertain2007AgreementConcerningShoshoneCallbetweentheCityandCountyofDenver,actingbyandthroughitsBoardof27
WaterCommissioners(“DenverWater”)andPSCo(the“2007CallReductionAgreement”).The2007CallReductionAgreementprovides,thatundercertaindefineddroughtconditions,DenverWaterisentitledtopayPSCotoreduce(or“relax”)thecalloftheSPPWaterRights.ThePartiesfurtherrecognizethatArticleVI.E.2ofthe2012ColoradoRiverCooperativeAgreementprovidesthatDenverWater,withthesupportoftheWestSlopesignatories,mayrequestPSCotoamendthe2007CallReductionAgreementto“relax”thecalloftheSPPWaterRightsto704cfs,duringextremedroughtconditions,foranexpandedperiodduringthewintermonthssubjecttocertaintermsandconditionsdescribedinCRCAArticleVI.E.2.a-e(“CRCAWinterCallReduction”).Auroraagreesthatitwillnotseekorsupportanyadditional“relaxation”oftheSPPWaterRights,exceptasexpresslyprovidedforinparagraphs34.4.1.and34.4.2.below.34.4AurorawillnotopposeanagreementbetweenaWestSlopeentityorentities,theCWCB,andanyotherentityenteredforthepurposeofaddinginstreamflowasanadditionaluseoftheSeniorHydropowerRight(“CWCBAgreement”).Inadditionthereto,AurorawillnotopposetheentryofafinalwatercourtdecreeforthepurposeofaddinginstreamflowasanadditionaluseoftheSeniorHydropowerRight(“1SFApplication”).Aurora’snon-oppositiontoanysuchCWCBAgreementand1SFdecreeshallbecontingentoninclusionofthefollowingtermsintheCWCBAgreementand1SFApplication:34.4.1The2007CallReductionAgreement,includinganyfutureamendmentprovidingforaCRCAWinterCallReduction,willbemadepermanentandmadeapplicabletoany1SFuseoftheSeniorHydropowerRight.34.4.2Intheeventofacurtailment,orvalidthreatorexpectationthereof,resultingfromacalluponthewatersoftheStateofColoradoresultingfromenforcementoftheColoradoRiverCompactand/ortheUpperColoradoRiverBasinCompact,thePartiestotheCWCBAgreementwillworkcooperativelywithflexibilityamongthemselvesandotherwaterusers,includingAurora,towardagoalofminimizingoravoidingdesperateadverseimpactstoentitiesoneithersideoftheContinentalDivide.34.5AurorarecognizesthattheWestSlopeParties,uponacquiringanyinterestintheSPPWaterRights,mayalsorequestthatinstreamflowusesbeaddedasanadditionalusetotheJuniorHydropowerRight.AuroraagreestoparticipateingoodfaithdiscussionsandnegotiationswiththeWestSlopeParties,theCWCB,andanyotherpartiesregardingtheadditionofinstreamflowusestotheJuniorHydropowerRight.AnyagreementwiththeCWCBandanywatercourtdecreeaddinginstreamflowusestotheJuniorHydropowerRightwillataminimumbesubjecttothetermsidentifiedinparagraphs34.4.1and34.4.2above.Additionally,theWestSlopePartiesagreetodiligentlymeetandnegotiateingoodfaithwithAuroraregardingtheinclusionofAurora’sDroughtExceptions,describedinparagraph33.3,toanyfinalagreementwiththeCWCBforanyinstreamusesoftheSPPWaterRightsinexcessof1,250cfs.28
34.6AfterinstreamflowusehasbeenaddedasanalternateuseoftheSeniorHydropowerRightand/orJuniorHydropowerRight,theCRWCDagreesthat,duringadroughtperiodthatmeetsthedroughtconditionsdescribedinparagraph33.3,above,AuroramaychoosetoleasefromanyWestSlopesupplierortheCRWCD’sWolfordMountainReservoirwatermarketingpool,onaone-yearspot-marketbasis(i.e.,if-available),uptotheamountofanyshortageinfillforthethencurrentstorageseasonforreplacementpurposesbyAurora.TheCRWCDagreesthat,duetotheuniquenatureofthisAgreementandthemutualcompromisesincludedherein,therateofanysuchleaseshallnotbegreaterthantwotimestheCRWCD’sthen-currentspot-marketleaserateforin-basinmunicipaluse.TheformofsuchleasewillbegenerallyconsistentwiththeCRWCD’sthen-currentstandardformcontract,thecurrentversionofwhichisattachedforexamplepurposesonlyasExhibitDattachedtothisAgreement.ThePartiesagreetonotopposeAurora’seffortstousewaterleasedpursuanttothisparagraph34.6byexchangeforreplacementpurposesinaccordancewiththeprioritysystem.ThelackofwateravailableforleasebytheCRWCDtoAuroraonaspot-marketbasispursuanttothisparagraph34.6shallnotexcuseoperationofAurora’swaterrightsinaccordancewiththeprioritysystemasjuniorto,andsubjectto,thecalloftheSPPWaterRightbeingexercisedforinstreamflowpurposes.35.OtherProvisions.Ashereinafterdescribedthefollowingagreementsaremade.35.1SomeofthePartiesareamongthenumerousentitiesthatcomprisetheUpperColoradoRiverWildandScenicAlternativeManagementPlanStakeholderGroup(“UPCOSG”).ThePartiesagreetosupporttherecognitionoftheShOPandShoshonePermanencyprovisionsofthisAgreementasacooperativemeasureand/orlongtermprotectivemeasuresubmittedbythePartiesthataremembersoftheUPCOSGforthebenefitofriverSegment7(immediatelydownstreamoftheconfluenceoftheEagleandColoradoRiverstoone-halfmileeastofNoNameCreek).35.2TheParties,exceptanyPartythatisapermittingauthorityfortheEagleRiverMOUprocess3,willnottoseekasaconditionofanyEagleRiverMOUpermittingprocessminimumbaseflowsintheColoradoRiveratthecurrentlocationoftheDotseroGaugeinexcessofthetotaloftheSPPwaterrightsdescribedinparagraph30.However,thisprovisionshallnotpreventthePartiesfromadvocatingforhighflowseasonchannelmaintenanceandchannelflushingflows.V.DiligenceDétente36.DiligenceCases.ThePartieseitherindividuallyorthroughassociationhaveinterestsincertainconditionallydecreedwaterrightsthatariseinWaterDivision5asmorethoroughlydescribedasfollows:TheEagleRiverMOUisa199$agreementbetweenAurora,ColoradoSprings,CRWCD,CyprusMetalsCompany(Climax),andtheVailConsortium(EagleRiverW&SD,UpperEagleRegionalWaterAuthorityandVailAssociatesInc.)that,interalia,proposescertainjointuseprojects.29
36.1Aurora:WATERDIVISION5NextDiligenceCaseNumberApplicantCaseNameDeadlineW-1869(10/2/1979)TwinLakesReservoirNewYorkCollectionCanal82CW151andCanalCompanySupplement86CW15592CW13600CW228O7CWY9916CW3011(Pending)88CW449(7/16/2002)HomestakePartnersCampHaleO8CW111(2/24/2010)16CW3022(9/17/17)95CW272(A)(3/16/2011)HomestakePartnersHomestakeII17CW3064(Pending)8/31/201909CW188(8/4/2013)FremontPassDitchColumbineDitchJuniorCompanyWaterRight2/28/2020CA-i193(7/10/1968)HomestakePartnersOriginalHomestakeProjectW-45(6/14/1971)W-620(6/14/1973)W-2321(12/12/1974)W-2321-78(8/19/1980)82CW120(9/27/1984)86CW141(3/6/1987)9OCW117(3/14/1994)00CW037(10/2/2000)06CW225(9/16/2007)13CW3045(2/9/2014)6/30/202398CW270(2/6/2003)HomestakePartnersRoaringforkandHomestake09CW17(10/11/2010)etatExchanges16CW3131(6/13/2017)5/31/2015CA-3082TwinLakesReservoirRoaringForkDiversionDamW-64andCanalCompanyGulchCollectionCanalandW-722LostManDiversionDam,W-722-76componentsofIPTDS8OCW180$4CWI628$CW20694CW10501CW05707CW145(5/27/2009)15CW3050(Pending)5/31/2018CA-4613SoutheasternColoradoRoaringforkandfryingpan30
W-829WaterConservancyProjectFacilities01CW265District09CW4036.2CRWCD:NextDiligenceCaseNumberNameofStructureDeadlineBASALTPROJECT:Aug2020CA4613(58);CA4613(66);BasaltConduit;BasaltPowerPlant&Penstock;W-44;W-789(76);80CW94;LandisCanal;SpringValleySiphon;84CW70;88CW85;95CW52;Stockmen’sDitchExt.&Enlargement03CW41;11CW96BATTLEMENTMESAPROJECT:Nov201813368(Mesa);05CW8;BrushCreekCanal;BuzzardCreekDam&11CW172Reservoir;ColoradoCanal;HarrisonCanal;OwensCreekReservoirKOBEPROJECT:June2022C.A.6404(Garfield);W-KobeCanal;KobeCanalAlternatePoint;Mount789(76);80CW94;84CW63;LoganCanal;MountLoganDam&Reservoir;88CW83(8$)(92);94CW187;RoanCreekFeederCanalO1CW17;07CW119;15CW3055FRASERVALLEYPROJECT:Dec201984CW551;84CW552;FraserFeederCanal;FraserPumpingPlant&$4CW553;93CW139;Pipeline;RanchCreekReservoir93CW140;93CW141;99CW227;06CW92;13CW46REDCLIFFPROJECT:31
NextDiligenceCaseNumberNameofStructureDeadlineAug2018W-3472;83CW30;87CW8;CrossCreekExtensionoftheFall&Peterson94CW13;OOCW1O5;CreekConduits03CW41;11CW94Aug2018CA1193(62)(65)(66)(68);IronMountainReservoir,PandoFeederCanalW-56;W-789(76);80CW94;84CW70;$8CW$5;95CW52;03CW41;11CW94Aug201881CW345;90CW95;IronMountainReservoir,2’Filling96CW264;03CW41;119CW94EAGLEPINEYPROJECT:Dec2021CA1548;02CW125;PineyRiverUnit13CW3079WESTDIVIDEPROJECT:April2020CA4613(58)(66);CA4954;AvalancheCanal&Siphon;DryHollowFeederCA5584;W-44;W-789(76);Canal;DryHollowReservoir;FourMileCanalW-3888;79CW308;&Siphon;HorsethiefCanal;KendigReservoir;79CW315;80CW94;KendigReservoir1stEnlargement;WestDivide84CW70;88CW85;95CW52;Canal;WestMammCreekReservoir03CW41;11CW93WOLCOTTPROJECT(WaterDivision5):Oct2018CA1529(Eagle);80CW94;WolcottPumpingPipeline;WolcottReservoir84CW70;88CW85;95CW52;03CW41;11CW95WOLFORDMOUNTAINRESERVOIRPROJECT(WMR):Aug202091CW252;02CW81;WMR/GreenMtnSubstitution09CW1432
NextDiligenceCaseNumberNameofStructureDeadlineApril2023$7CW284;95CW251;GunsightPassReservoirPowerRight(WMR)02CW107;09CW81;16CW3082Oct202003CW302WMR2’’EnlargementJan202098CW237;06CW146;WMRRefillRight13CW3008June20239$CW270;09CW17;HornestakeReservoirExchange09CW28;16CW3131Jan202405CW265;17CW3100WMRMoserExchange36.3BWCD:NextDiligenceCaseNumberApplicantNameofWaterRightsDeadline02CW077(1of2)BWCDAnyandallconditionalwater17CW3256(Pending)rights,includingappropriativerightsofexchangeDecember,201802CW077(2of2)BWCDAnyandallconditionalwaterrights,includingappropriativerightsofexchangeJuly,202011CW096BWCD/CRWCDAnyandallconditionalwaterrightsincluding:-BasaltConduit-LandisCanal-SpringValleySiphon-Stockman’sDitchExtensionandEnlargement-BasaltPowerPlantandPenstock33
36.4Pitkin:NextDiligenceDeadlineCaseNumberApplicantNameofWaterRightPendingDecree17CW3204PitkinCountyBoardofPitkinCountyAirportCountyCommissionersExchange(PCBOCC)March201$11CW35PCBOCCPaepckeWellandPitkinCountyAirportwellfieldJuly201811CW55PCBOCCPitkinCountyLandfillPondsJune202010CW305PCBOCCWhiteWaterParkRICDJuly202216CW3016PCBOCCBivertDitchSecondEnlargement36.5Eagle:NextDiligenceDeadlineCaseNumberApplicantNameofWaterRightsMarch,201$05CW161Eagle/CrownMountainAnyandallconditionalParkandRecreationwaterrightsincluding:District-Mt.SoprisTreeNurseryWellNo.1,FirstEnI.-Mt.SoprisTreeNurseryWellNo.3,FirstEnI.-Mt.SoprisTreeNurseryWellNo.4,FirstEnl.-Mt.SoprisTreeNurseryWeltNo.5-CrownMountainPond36.6Ute:36.8.1.Theconditionalwaterrightsdecreedtothefollowingstructures,allofwhicharemorespecificallydescribedinthediligencedecreeenteredinCaseNo.2011CW53,DistrictCourt,WaterDivisionNo.5:36.8.1.1AtwellEastDitch,SupplementalPointofDiversion,ComponentoftheUteWaterConservancyDistrictWaterSystem,intheamountof2.82c.f.s.,conditional.36.8.1.2AtwellWaste&SeepWaterDitchComponentoftheUteWaterConservancyDistrictWaterSystem,intheamountof0.06c.f.s.,conditional.36.8.1.3BigParkReservoirComponentoftheUteWaterConservancyDistrictWaterSystem,intheamountof5650acrefeet,conditional.36.8.1.4BridgesSwitchPumpingPlantandPipelineComponentoftheUteWaterConservancyDistrictWaterSystem,intheamountof30c.f.s.,conditional.34
36.8.1.5CoonCreekPipelineComponentoftheUteWaterConservancyDistrictWaterSystem,intheremainingconditionalamountof0.4c.f.s.36.8.1.6CoonCreekPipelineEnlargement,intheamountof1.5c.f.s.,conditional.36.8.1.7JerryCreekReservoirNo.2ComponentoftheUteWaterConservancyDistrictWaterSystem(JerryCreekPriority),intheamountof7,791acrefeet,conditional.36.8.1.8UtePumpingStationandPipelineComponentoftheUteWaterConservancyDistrictWaterSystem,intheamountof50c.f.s.,conditional.36.8.1.9KirkendallReservoir,alsoknownasHunterReservoir,intheamountof582.49acrefeet,conditional.36.8.1.10.KirkendallReservoir(“HunterReservoir”),UteWaterEnlargement,intheamountof1,340acrefeet,conditional.AdiligenceapplicationforalloftheabovedescribedconditionalwaterrightswasfiledinMarch,2018.36.8.2TheconditionalwaterrightdecreedtoMonumentReservoirNo.1,UteWaterEnlargement,inCaseNo.2009CW30,DistrictCourt,WaterDivisionNo.5,intheamountof4,682acrefeet,conditional.AdiligenceapplicationforthisconditionalwaterrightwasfiledinMarch,2018.36.8.3TheconditionalwaterrightdecreedtoWillowCreekReservoirinCaseNo.2009CW29,DistrictCourt,WaterDivisionNo.5,intheamountof19,448acrefeet,conditional.AdiligenceapplicationforthisconditionalwaterrightwasfiledinMarch,2018.36.8.4Theconditionalwaterrightsdecreedtothefollowingstructures,bothofwhicharemorespecificallydescribedinthediligencedecreeenteredinCaseNo.2011CW172,DistrictCourt,WaterDivisionNo.5:36.8.4.1OwensCreekReservoir,intheamountof31,786.1acrefeet,conditional.Uteownsanundivided22.5%interestinthisconditionalwaterright.36.8.4.2BuzzardCreekDamandReservoir,intheamountof20,000acrefeet,conditional.Uteownsanundivided22.5%interestinthisconditionalwaterright.ThenextdiligenceapplicationfortheabovedescribedconditionalwaterrightsisduetobefiledinNovember,2018.37.Non-oppositiontoDiligence.ThePartiesagreethattheywillnotopposeanyWaterCourtfilingforanyoftheabovelistedmattersrequestingonlyafindingofreasonablediligenceandacontinuationofsuchwaterright(s)foraperiodof15-yearsfollowingtheInitiationDateofthisAgreement.Filings,orportionsoffilings,requestingadetermination(s)awaterright(s)was(were)madeabsolutearenotsubjecttothesenon-oppositionprovisions.Incircumstanceswhen35
adiligencerequestismadeinthesamecaseasarequesttomakeabsoluteisalsomade,Partieswillbefreetoparticipateintheportionofsuchcasedealingwithanyabsoluterequestwhilenotparticipatinginthediligenceportion.Regardingcasesnotedas“Pending”inparagraph36,allPartieswhoareexistingopposersinsuchamatterarenotrestrictedastotheircontinuedopposition,ifany,insaidpendingcase(s).VI.EntryofFinalDecreeinWD-2,09CW14238.MotionforEntryofDecree.Pursuanttotheprovisionofparagraph3above,thePartieswillseekentryoftheDraftDecreeattachedheretoasExhibitA.****36
CITYOFAURORA,COLORADO,ACTINGBYANDTHROUGHITSUTILITYENTERPRISEMarshaBerzins,MayorProTernDateATTEST:LindaBlackston,CityClerkDateAPPROVEDASTOFORMFORAURORA:ChristineMcKenneyDateACS#SeniorAssistantCityAttorneyJohnDingess,SpecialCounselDateSTATEOFCOLORADO))ssCOU1’JTYOFARAPAHOE)Theforegoinginstrnrnentwasacknowledgedbeforemethis______dayof____________,2017,byStephenD.Hogan,Mayor,actingonbehalfoftheUtilityEnterpriseoftheCityofAurora,Colorado.Witnessmyhandandofficialseal.______________________NotaryPublicMycommissionexpires:____________________(SEAL)37
BUSK-IVANHOE,INC.aColoradomutualditchcompanyBy:___________________PresidentATTEST:By:___________________SecretarySTATEOFCOLORADO))COUNTYOF_________)Theforegoinginstrumentwasacknowledgedbeforemethis_____dayof___________,2018,by_____________________,PresidentofBusk-IvanhoeInc.Witnessmyhandandofficialseal.______________________________NotaryPublicMycommissionexpires:___________________(SEAL)3$
COLORADORIVERWATERCONSERVATIONDISTRICTBy:TomAlvey,PresidentAttest:ByAndrewAMuller,STATEOFCOLORADO))ssCOUNTYOFGARFIELD)Theforegoinginstrumentwasacknowledgedbeforemethis_____dayof___________,2018,byTomAlvey,PresidentoftheColoradoRiverWaterConservationDistrict.Witnessmyhandandofficialseal.______________________________NotaryPublicMycommissionexpires:_____________________(SEAL)4I’k39
COUNTYOFEAGLE,STATEOFCOLORADO,ByandThroughItsBOARDOFCOUNTYCOMMISSIONERSBy:___(thyChdie9nrChair-ôfL..i’i...‘Jçju—1ILvguL4—tIL..L1Attest:ReginaO’Brien,ClerktotheBoardSTATEOFCOLORADO))COUNTYOFEAGLE)Theforegoinginstrumentwasacknowledgedbeforemethist1dayof_________,2018,byKth-flemy,air._rWitnessmyhandandofficialseal.______________________________NoaryPublicMycommissionexpires:(SEAL)KARENS.VALASNOTARYPUBLICSTATEOFCOLORADONOTARYID20044010890MYCOMMISSIONEXPIRESMARCH29,202040
BASALTWATERCONSERVANCYDISTRICTBy:DonBoyer,PresidentAttest:By:ScottLeslie,SecretarySTATEOFCOLORADO))COUNTYOF________)Theforegoinginstrumentwasacknowledgedbeforemethis_____dayof___________,2018,by________________________,PresidentoftheBasaltWaterConservancyDistrict.Witnessmyhandandofficialseal.______________________________NotaryPublicMycommissionexpires:____________________(SEAL)41
BOARDOfCOUNTYCOMMISSIONERSOFPITKINCOUNTYBy:_____________________________Date:PattiClapper,ChairATTESTBy:____________________JeanetteJonesDeputyCountyClerkAPPROVEDASTOFORM:By:__________________________By:________________________________JohnM.ElyJonPeacock,PitkinCountyAttorneyPitkinCountyManagerSTATEOFCOLORADO))COUNTYOfEAGLE)Theforegoinginstrumentwasacknowledgedbeforemethis_____dayof____________,2O8,byPattiClapper,Chair.Witnessmyhandandofficialseal._____________________NotaryPublicMycommissionexpires:___________________(SEAL)42
GRANDVALLEYWATERUSERSASSOCIATIONBy:JosephC.Bernal,BoardPresidentAttest:By:D.KimAlbertson,BoardSecretarySTATEOfCOLORADO))COUNTYOfMESA)Theforegoinginstrumentwasacknowledgedbeforemethis_____dayof___________,201$,byJosephC.Bemal,BoardPresidentoftheGrandValleyWaterUsersAssociation.Witnessmyhandandofficialseal._______________________NotaryPublicMycommissionexpires:____________________(SEAL)43
ORCHARDMESAIRRIGATIONDISTRICTBy:BruceTalbott,BoardPresidentAttest:By:MelvinRettig,BoardVicePresidentandSecretarySTATEOFCOLORADO))COUNTYOfMESA)Theforegoinginstrumentwasacknowledgedbeforemethis_____dayof___________,2018,byBruceTalbott,BoardPresidentoftheOrchardMesaIrrigationDistrict.Witnessmyhandandofficialseal._____________________NotaryPublicMycommissionexpires:___________________(SEAL)44
UTEWATERCONSERVANCYDISTRICTActingbyandthroughtheUTEWATERACTIVITYENTERPRISEBy:H.KennethHenry,BoardPresidentAttest:By:GregoryL.Green,BoardSecretarySTATEOFCOLORADO))ssCOUNTYOFMESA)TheforegoinginstrumentwasacknowledgedbeforemethisthdayofJuly,2018,byH.KennethHenry,BoardPresident,andGregoryL.Green,BoardSecretary,oftheUteWaterConservancyDistrict,actingbyandthroughtheUteWaterActivityEnterprise.Witnessmyhandandofficialseal.______________________NotaryPublicMycommissionexpires:____________________(SEAL)45
ExhibitsExhibitADecreeExhibitBDescriptionofBoxCreekProjectExhibitCBoxCreekSupportLetterExhibitDformofLeaseExhibitEAuroraSystemStorageExhibitFExpressionOfMutualIntentLetter46