AGREEMENT
THIS AGREEMENT is made and entered into this day of
1995, by COLORADO SPRINGS UTILITIES ("CSU") and CATLIN CANAL COMPANY ("Catlin"),
WITNESSETH:
WHEREAS, Colorado Springs Utilities, Water Resources Department, is the owner of shares in the Colorado Canal Company, the Lake Henry Reservoir Company, and the Lake Meredith Reservoir Company (its "Colorado Canal Sources"). In addition, CSU owns other water, some of which has its origin in the Colorado River Basin.
WHEREAS, CSU, in its discretion, has determined that during the current irrigation season it has water available from its Colorado Canal Sources and other sources for sale to others; and
WHEREAS, Catlin desires to purchase some of CSU's water previously stored by CSU in Lake Meredith or Pueblo Reservoir.
NOW, THEREFORE, in consideration of mutual benefits to the parties and the payment to CSU as hereinafter provided, the receipt and sufficiency of which is acknowledged, it is agreed:
1. CSU agrees to sell and Catlin agrees to buy 2,000 acre-feet of water stored in Lake Meredith or Pueblo Reservoir. The water shall be made available from Lake Meredith for delivery at a minimum amount Of 50 cfs per day.
2. The parties anticipate that all of the water shall be delivered during the 1995 irrigation season ending September 30, 1995. The initial price of the water shall be $10.00 per acre-foot. The price shall increase according to the following Rate Schedule below:
RATE SCHEDULE DATE OF DELIVERY April 1 -June 1 June 2 - July 15 July 16 - August 15 August 16 - September 30
PRICE PER ACRE-FOOT OF DELIVERED WATER
$10.00 per acre-foot $11.00 per acre-foot $12.00 per acre-foot $13.00 per acre-foot
3. If water is purchased at a particular rate, it must be run during the time frame established for that rate.
The initial purchase price for said water will be finalized when delivery has been requested under the terms of this Contract. Catlin agrees to pay the amount required by the rates set forth in Paragraph 2 for the amount of water requested in advance. No refund shall be made to Catlin if some or all of the water is available and not used prior to September 30, 1995. If all purchased water is made available but delivery is not taken by September 30, 1995 the water shall be retained by CSU and CSU is not obligated for any deliveries beyond this date provided all of the water was available prior to September 30, 1995. If water is delivered at times other than originally requested, Catlin shall be subject to charges calculated under the rate schedule in Paragraph 2 above, according to the actual delivery time. CSU will invoice Catlin after water has been delivered for any extra charges that accrue as a result of delivery charges calculated in Paragraph 2 above. Catlin agrees to pay said invoice amount within 30 days of its issuance.
4. Catlin shall be responsible to arrange for the delivery of said water by exchange or direct release by contacting the Division 2 Engineer's Office in Pueblo and Mr. Allen Ringle of the Colorado Canal Company. The actual timing of delivery of the water shall be at the reasonable discretion of the Division 2 Engineer's Office. CSU makes no warranty of any kind as to the suitability of the water delivered for Catlin's intended use.
5. Catlin shall be responsible to comply with all rules and regulations of the State and Division 2 Engineer in effect for the delivery and use of such water.
6. If, in the sole judgment of CSU, it becomes necessary to cease delivery of this water or the water is not made available prior to September 30, 1995, CSU will not be held liable and Catlin will not be responsible to pay for water not delivered.
7. Catlin and CSU acknowledge and agree that this water is for Catlin's use and is based upon the circumstances now existing. This Contract shall in no way obligate CSU at any future time to provide water for Catlin's use after September 30, 1995.
8. CSU may, at its discretion, choose to deliver water to Catlin from its upstream supply rather than its Lake Meredith supply; however, if the water is delivered from upstream, CSU shall bear all transit losses from the point of delivery to the headgate of the Catlin Canal.
9. In the event the Division 2 Engineer determines that river conditions dictate that deliveries must be made from Pueblo Reservoir and not from Lake Meredith, Catlin will be responsible for all transit from Pueblo
10. All water furnished under this Agreement by CSU shall be for one time use only. CSU retains dominion and control and all rights to return flows generated from water delivered to Catlin and their irrigators.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.
COLORADO SPRINGS UTILITIES THE CATLIN CANAL COMPANY WATER RESOURCES DEPARTMENT
By: By:
Edward W. Bailey President
Director
ATTEST:
Secretary
Address: Address:
30 South Nevada Avenue Suite 703 Colorado Springs, CO 80903 Telephone: (719) 636-5681 APPROVED AS TO FORM: Gi-ego,ry Johnson Utilities ttorney 917 Elm Avenue P.O. Box 352 Rocky Ford, CO 81067
