Resolution 2024-64 - Laserfiche WebLink

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such charges and/or fees attributable to the Leased Water directly to Northern Water not less than twenty-one (21) days after receipt of the invoice(s) from Lessor. 4. Compliance with Northern Subcontracting Rule. 4.1. Northern Water Subcontracting Rule. The Parties acknowledge that Northern Water has adopted the "Rule Governing the Subcontracting of Beneficial Use of Colorado - Big Thompson Project Allotment Contracts" ("Subcontracting Rule") (defining a "subcontract" as any type of agreement [contract, lease, or otherwise] that transfers the beneficial use of C-BT Project water to another for two or more years). Section 3.1 of the Subcontracting Rule requires all subcontracts with a term of two years or more to obtain Northern Water approval. Because this Lease has a term of greater than two years, the Parties agree that: (1) this Lease is valid only if duly approved by Northern Water, (2) the Subcontracting Rule is by this provision made a part of this Lease, and (3) the Parties shall comply with the requirements (including without limitation Sections 5.4 through 5.6) of the Subcontracting Rule. 4.2. Submission of Lease for Approval. No later than December18, 2024, Lessor shall submit an application for Northern Water approval of the Lease pursuant to the Subcontracting Rule. The Parties shall reasonably cooperate with each other to provide any necessary testimony and information to Northern Water in support of the application. If the Lease is approved by Northern Water, then the Parties shall comply with all conditions of such approval and the Subcontracting Rule. 4.3. Revisions to Lease for Northern Water Approval. The Parties acknowledge the possibility that Northern Water may not approve this Lease or may require the Parties to resubmit a modified lease agreement for approval. If Northern Water does not approve this Lease, then the Parties shall work together in good faith to revise the Lease to accomplish the objectives of the Parties and obtain Northern Water's approval. 5. Potential Assessments for Transit Losses: Compliance Obligations. Louisville acknowledges that state water administration officials may assess transit losses for delivery of the Leased C-BT Water to Louisville's point of delivery. Lessor and Louisville shall cooperate for making all necessary arrangements with Northern Water and with state water administration officials to secure delivery of the Leased C-BT Water for Louisville's use. Louisville's use and accounting of the Leased C-BT Water shall comply with all policies, rules, and regulations of Northern Water and the Colorado Division of Water Resources. 6. No Guaranteed Firm Yield. This Lease grants Louisville the right to receive delivery of C-BT Project water that is allocated to Lessor's 4 C-BT AFUs under the variable quota declared annually by Northern Water's Board, subject to the terms and conditions in this Lease. Louisville acknowledges that the annual volume of water delivered pursuant to this Lease may vary from year to year, depending on the quota established by the Northern Water Board during any given water year. Although Lessor makes no warranty, guarantee, or representation of any kind regarding the specific quantity of physical water each AFU will yield annually, Lessor is obligated 3