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WEST DIVIDE WATER CONSERVANCY DISTRICT
WATER ALLOTMENT CONTRACT
Name of Applicant:
Quantity of Water in Acre Feet:
CONTRACT #: 221020REE(a)
MAP ID #: 777
DATE ACTIVATED 10/20122
Applicant, hereby applies to the West Divide Water Conservancy District, a political subdivision of the State of Colorado,
organized pursuant to and existing by virtue of C.R.S. 1973, Section 3745-101, et sea., (hereinafter referred to as the "District") for an allotment
contract to beneficially and perpetually use water or water rights owned, leased, or hereafter acquired by the District. By execution of this Contract
and the attached Application, Applicant hereby agrees to the following terms and conditions:
1. Water Rights• Applicant shall own water rights at the point of diversion herein lawfully entitling Applicant to diven
water, which will be supplemented and augmented by water leased herein. if Applicant intends to diven through a well, it must be understood by
Applicant that no right to divert exists until a valid -well permit is obtained from the Colorado Division of Water Resources.
2, uantit : Water applied for by the Applicant in the amount set forth above shall bediverted at Applicant's point of
diversion from the District's direct flow water rights, and when water is unavailable for diversion pursuant to administration by the Colorado state
Engineer during periods when said direct flow water right is not in priority, the District shall release for the use of Applicant up to said quantity in
acre feet per year of storage water owned or controlled by the District. It is understood that any quantity allotted from direct now, storage or
otherwise, to the Applicant by the District will be limited by the priority of the District's decrees and by the physical and legal availability of water
from District's sources. Any quantity allotted will only be provided so long as water is available and the Applicant fully complies with all of the
terms and conditions of this Contract. The District and the Applicant recognize that some of the District's decrees may be in the name of the
Colorado River Water Conservation District, and the ability of the District to allot direct flow right to the Applicant may be dependent on the
consent of the Colorado River Water Conservation District. If al any time the Applicant determines it requires less water than the amount herein
Provided, Applicant may so notify the District in writing, and the amount of water allotted under this Contract shall be reduced permanently in
accordance with such notice. Rates shall be adjusted accordingly in following water years only.
3. Beneficial Use and Location of Beneficial Use Any and all water allotted Applicant by the District shall be used for
the following beneficial use or uses: industrial, municipal, domestic and related uses, or commercial (except for commercial use from Alsbury
Reservoir and except to the extent that Ruedi Reservoir water may not be available for commercial as that term is defined on Page 5 of Contract
No. 2-07-70-W0547 between the United States and the West Divide Water Conservancy District). Applicant's beneficial use of any and all water
allotted shall be within or through facilities or upon land owned, leased, operated, or under Applicant's control.
4. Decrees and Delivery: Exchange releases made by the District out of stooge from Ruedi Reservoir, Green Mountain
Reservoir, Alsbury Reservoir, or other works or facilities of the District, or from other sources available to the District, shall be delivered to the
Applicant at the outlet works of said stooge facilities or at the decreed point of diversion for said other sources, and release or delivery of water at
such outletorpointsshallconstituteperformaneeoftheDistrict'stotalobligation. Delivery of water by the District fromRuediReservoiror0reen
Mountain Reservoir shall be subject to the District's lease contracts with the United States Bureau of Reclamation. Releases from other facilities
available to District shall be subject to the contracts, laws, rules, and regulations governing releases therefrom. Furthermore, the District hereby
expressly reserves the right to store water and to make exchange releases from structures that may be built or controlled by the District in the
future, so long as the water service to the Applicant pursuant to this agreement, is not impaired by said action. Any quantity of the Applicant's
allocation not delivered to or used by Applicant by the end of each wateryear (October 1), shall revert to the water supplies of the District. Such
reversion shall not entitle Applicanrtaany refund of payment made for such water.
Water service provided by the District shag be limited to the amount of water available in priority at the original point of
diversion of the District's applicable water right, and neither the District, nor those entitled to utilize the District's decrees, may call on any greater
amount at new or alternate points of diversion. The District shall request the Colorado Division of Water Resources to estimate any conveyance
losses between the original point and any alternate point, and such estimate shall be deducted from this amount in each case.
Water service provided by the District for properties located within the Bluestone and Silt Water Conservancy Districts is
provided pursuant to Agreements with said Districts. The Intergovernmental Agreement between the District and the Silt Water Conservancy
District, dated January 25, 2001, is recorded as Reception No. 575691, Geld County Clerk and Recorders Office. The Intergovernmental
Memorandum of Understanding between the District and the Bluestone Water Conservancy District. dated April 26, 2001, is recorded as Reception
No. 584M, Garfield County Clerk and Recorders Office.
Pursuant to Federal law, the cultivation of marijuana is illegal. The U.S. Bureau of Reclamation has declared it unlawful
to use Federal water facilities for the irrigation of marijuana or in furtherance of the cultivation of marijuana. The West Divide Water
Conservancy District provides augmentation water to comructees from Ruedi-Reservoir and Green Mountain Reservoir, both of which are
Federal water facilities managed by the Bureau of Reclamation. Therefore, the West Divide Water Conservancy District will not contract to
provide augmentation water from Ruedi Reservoir or Green Mountain Reservoir for the irrigation of marijuana_orJn furtherance of the
cultivation of marijuana. Any such contracts shall be deemed null and void.
The West Divide Water Conservancy District owns or possesses delivery contracts for other non -Federal water sources
from which the District is able to provide augmentation water for the irrigation of marijuana or in furtherance of the cultivation of marijuana.
Should any contractee obtain a water allotment contract from the West Divide Water Conservancy District for the augmentation or irrigation
of marijuana or in furtherance of the cultivation of marijuana, any and all such water shall be deemed to come from the non -Federal sources
referenced above.
5. Alternate Point of Diversion and Plan of Augmentation: Decrees for alternate points of diversion of the District's
water rights or storage water may be required in order for Applicant to use the water service contemplated hereunder. Obtaining such decree is the
exclusive responsibility of Applicant. The District reserves the right to review and approve any conditions which may be attached to judicial
approval of said alternate point of diversion as contemplated or necessary to serve Applicant's facilities or lands. Applicant acknowledges and
agrees that it shall be solely responsible for the procedures and legal engineering costs necessary for any changes in water rights contemplated
herein, and further agrees to indemnify the District from any costs or losses related thereto. Applicant is solely responsible for providing works
and facilities necessary to obtain/divert the waters at said alternate point of diversion and deliver them to Applicant's intended beneficial use.
Irrespective of the amount of water actually transferred to the Applicant's point of diversion, the Applicant shall [Hake annual payments to the
District based upon the amount of water allotted under this Contract.
In the event the Applicant intends to apply for an alternate point of diversion and to develop an augmentation plan and institute
legal proceedings for the approval of such augmentation plan to allow the Applicant to utilize the water allotted to Applicant hereunder, the
2
Applicant shall give the District written notice of such intent. In the event the Applicant develops and adjudicates its own augmentation plan to
utilize the water allotted hereunder, Applicant shall not be obligated to pay any amount under Paragraph 19 below. In any event, the District shall
have the right to approve or disapprove the Applicant's augmentation plan and the Applicant shall provide the District copies of such plan and of all
pleadings and other papers filed with the water court in the adjudication thereof.
6. Contmct Pe ene Non-refundabk. one time administrative charge, in the amount determined by the Board of
Directors of the District from time to time, shall be submitted with the application for consideration by the District.
Annual payment for the water service described herein shall be determined by the Board of Directors of the Distria The initial
annual payment shall be made in full, within thirty (30) days after the date of notice to the Applicant that the initial payment is due. Said notice
will advise the Applicant, among otherthings, of the water delivery year to which the initial payment shall apply and the price which is applicable
to that year.
Annual payments for each year thereafter shalfbe due and payable by the Applicant on or before each January 1. If an annual
Payment is not made by the due date a flat $50late fee will he assessed. Final written notice priorto cancellation will be sent certified mail, return
receipt requested, to the Applicant at such address as may be designated by the Applicant in writing or set forth in this Contract or Application.
Water use for any part of a water year shall require payment for the entire water year. Nothing herein shall be construed so as to prevent the
District from adjusting the annual rate in its sole discretion for future years only.
If payment is not made within fifteen (15) days after thedate of said written notice, Applicant shall at District's sole option have
no further right, title or interest under this Contract without further notice, and delivery may be immediately curtailed. The allotment of water, as
herein made, may be transferred, leased, orotherwise disposed of at the discretion of the Board of Directors of the District.
Upon cancellation of this water allotment Contract with the District, the District shall notify the Division of Water Resources
Offices in Denver and Glenwood Springs. The Division of Water Resources may then order cessation of all water use.
7. Additional Fees and Costs: Applicant agrees to defray any expenses incurred by the District in connection with the
allotment of water rights hereunder, including, but not limited to, reimbursement of legal and engineering costs incurred in connection with any
water rights and adjudication necessary to allow Applicant's use of such allotted water rights.
S. Assienment.. This Contract shall not inure to the benefit of the heirs, successors or assigns of Applicant, without the
prior written consent of the District's Board of Directors. Any assignment of Applicant's rights under this Contract shall be subject to, and must
comply with, such requirements as the District may hereafter adopt regarding assignment of Contract rights and the assumption of Contract
obligations by assignees and successors. Nothing herein shall prevent successors to a portion of Applicant's property from applying to the District
for individual and separate allotment Contracts. No assignment shall be recognized by the District except upon completion and filing of proper
forms for assignment and change of ownership.
In the event the water allotted pursuant to this Contract is to be used forthe benefit of land which is now or will subsequently be
subdivided or held in separate ownership, the Applicant may only assign the Applicant's rights hereunder to: 1) No more than three separate
owners all of whom shall be party to a well sharing agreement satisfactory to the District; or 2) A homeowners association, water district, water
and sanitation district or other special district properly organized and existing under the laws of the State of Colorado, and then, only if such
parties, association or special district establishes to the satisfaction of the District that it has the ability and authority to perform the Applicant's
obligations under this Contract. In no event shall the owner of a portion, but less than all, of the Applicant's property to be served under this
Contract have any rights hereunder, except as such rights may exist pursuant to a well sharing agreement or through a homeowners association or
special district as provided above.
Upon the sale of the real property to which thislComr-da pertains, Applicant shall make buyer aware of this Contract and proper
forms for assignment and change of ownership must be completed.
_ 9• Other Rules: Applicant shaltbe bound by the provisions of the Water Conservancy Act of Colorado; by the rules and
regulations of the Board of Directors of the District; and all amendments thereof and supplements thereto and by all other applicable law.
10. Operation and Maintenance Aareemenc Applicant shall enter into an "Operation and Maintenance Agreement" with
the District under terms and conrfdioms determined by the board of Directors of the District, if and when, the Board of said District determines in its
sole discretion that such an agreement is required. Said agreement may contain, but shall not be limited to, provisions for additional annual
monetary consideration for extension of District delivery services and for additional administration, Operation, and maintenance costs; odor other
costs to the District which may arise through services made available to the Applicant.
it. Chanae of Use: The District reserves the exclusive right to review, re -approve ordisapprove any proposed change in
use of the water allotted hereunder. Any use other than that set forth herein or any lease or sale of the water or water rights allotted hereunder
without the prior written approval of the District shall be deemed to be a material breach of this Contract.
_ 12. Use and Pluce of Use: Applicant agrees to Use the water in the manner and on the property described in the documents
submitted to the District at the time this Contract is executed, or in any operation and maintenance agreement provided by Applicant. Any use
other than as set forth thereon or any lease or sale of the water or water rights herein, other than as permitted in paragraph 8 above, shall be deemed
to be a material breach of this agreement.
13. isle• It is understood and agreed that nothing herein shall be interpreted to give the Applicant any equitable or legal
fee tide interest in or to any water or water rights referred to herein.
14. Conservation: Applicant shall use commonly accepted conservation practices with respect to the water and water
rights herein, and hereby agrees to be bound by any conservation plan adopted hereafter by the District for use of District owned or controlled
water or water rights.
._ 15. Restrictions: Applicant shall restrict actual diversions to not exceed the contract amount for ordinary household
Purposes, the watering of domestic livestock, fire protection, and the irrigation of lawn and garden as specified in the Application.
Applicant shall also comply with all restrictions and limitations set forth in the well permit obtained from the Colorado Division
of Water Resources.
Watering of livestock shall be restricted to Applicant's domestic animals not to be used for commercial purposes unless
Applicant obtains approval from the Colorado Division of Water Resources for commercial usellivestock watering provided that in no event shall
actual diversions exceed the amount of water provided by this Contract.
Violation of this paragraph 15 shall be deemed to be a material breach of this Contract.
16. Well Permit: If Applicant intends to divert through a well, then Applicant must provide to District a copy of
Applicant's valid well Permit before District is obligated to deliver any water hereunder.
17. Deviceor Meter Applice INMees"provide, at its own expense,
p measuring device deemed acceptable
by the Disuices Engineerafterconsultation, or a totalizing flow meterwith remote readout to continuously and accurately measure at all times all
water diverted pursuant to the terms of Applicant's water right and the temts of this Contract. Applicant agrees to provide accurate readings from
such device or meter to District upon District's request. Applicant acknowledges that failure to comply with this paragraph could result in legal
action to terminate Applicant's diversion of water by the State of Colorado Division of Water Resources. By signing this Contract, Applicant
hereby specifically allows District, through its mothorized agent, to enter upon Applicant's property during ordinary business hours for the
purposes of determining Applicant's actual use of water.
18. Reoresentions: By executing this Contract, Applicant agrees that it is not relying on any legal or engineering advice
that Applicant may believe has been received from the District. Applicant further acknowledges that it has obtained all necessary legal and
engineering advice from Applicant's own sources other than the District. Applicant further acknowledges that the District makes no guarantees,
warranties, or assurances whatsoever about the quantity or quality of water available pursuant to this Contract. Should the District be unable to
provide the water contracted for herein, no damages may be assessed against the District, nor may Applicant obtain a refund from the District.
19. Costs of Water Court Filin and Au mention Plan: Should the District, in its own discretion, choose to include
Applicant's Contract herein in a water court filing for alternate point of diversion orplan of augmentation, men Applicant hereby agrees to pay to
the District, when assessed, an additional fee representing the District's actual and reasonable costs and fees for Applicant's share of the
proceedings. Applicant shall be assessed a pro-rata share of the total cost incurred by the District in preparing. Filing and pursuing to decree the
water court case. The pro•mta share shall be calculated by dividing such total cost by the number of contractees included in the filing. To the
extent that the District is caused additional costs because of objection fried specifically due to the inclusion of Applicant's Contract in the filing,
such additional costs may be charged specifically to Applicant and not shared on a pro -rats basis by all conlmctees.
20. Binding Aareement: This agreement shall not be complete nor binding upon the District unless attached hereto is the
form entitled "Application to Lease Water From West Divide Water Conservancy District" fully completed by Applicant and approved by the
District's engineer. Said attachments shall by this reference thereto be incorporated into the terms of this agreement. All chimes. pondence from the
District. to Applicant referring to orrelating to this agreement is by this reference incorporated into this agreement as further terms and conditions
of this agreement.
21. Wamine:ITISTHE SOLE RESPONSIBILITY OFT14EAPPLICANT TOOBTAIN AVALID WELL PERMIT OR
OTHER WATER RIGHT IN ORDER TO DIVERT WATER, INCLUDING THE WATER ACQUIRED UNDER THLS,CONTRACf. IT IS THE
CONTINUING DUTY OF THE APPLICANT TO MAINTAIN THE VALIDITY OF THE WELL PERMIT OR WATER RIGHT INCLUDING
FILING FOR EXTENSIONS OF PERMIT$ FILING WELL COMPLETION REPORTS. FILING STATEMENTS OF BENEFICIAL USE, OR
OTHERWISE LAWFULLY APPLYING THE WATER TO BENEFICIAL USE ON A REGULAR BASIS WITHOUT WASTE,
22. AREA B. CONTRACTS" IF APPLICANT'S WELL OR OTHER WATER RIGHT THAT IS THE SUBJECT OF
THIS CONTRACT IS LOCATED OUTSIDE "AREA A" AS DESIGNATED BY THE DISTRICT, THEN THIS PARAGRAPH APPLIES: THE
AUGMENTATION WATER PROVIDED By THE DLSTRICF UNDER THIS CONTRACT MAY ONLY PROTECT APPLICANT'S WATER
RIGHT FROM A CALL ON THE COLORADO RIVER AND MAY NOT PROTECT APPLICANT FROM A CALL FROM ANY OTHER
SENIOR.RIGHT. NO.REPRESENTATION OTHERWISEFS MADE BV-THE DIST(UCT _ IF']ffIS IS A CQNCERNTO APPLICANT, THIS
CONTRACT MAY BE RESCINDED UPON WRITTEN NOTICE DELIVERED TO THE DISTRICT BY THE APPLICANT WITHIN THE
NEXT 30 DAYS POLLOw MSTHE AFFIXING OF $_ -- -� CONTRACT'Il4"WHICH EVENT ALL SUNLS PAID BY
APPLICANT FOR THIS CONIRAL7 SHALL BEtMURDTA ELY-REFMDEDT PLICANT.
Applicant
Applicant
ORDER
After a hearing by the Board of Directors of the West Divide Water Conservancy District on the Application, it is hereby ORDERED that said
Application be granted and thisContract shall be and is accepted by the District.
WEST DIVIDE WATER CONSERVANCY DISTRICT
By
ATTEST:
Secretary -- - -
Date
This Contract includes and is subject to the terns and conditions of the b1lowing documents which must accompany this Contract:
1. Map showing location of pointof diversion (use map provided)
- --- - 2. APPI1 OM) 404 pata.Fotm full Y_
-. ... ..._ and signed -
TheF*dedPo�o9POr" rotvl,OMpl 0114MBfintedaddid0us ordeledoos,ha�o� by the Wes[Dlv4lewatercoaservaagDtsuicl.
Form: WDWCDo1-01,pg CONTRACT.