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D. WHEREAS, paragraph 4(e)(ii) of the SWSP Allotment Contracts <br />provide that an entity seeking a right to use a portion of the Project ROW for <br />purposes not related to the SWSP shall pay either a) the appraised value of the <br />right to so use the Pipeline right-of-way at that time, or b) one-half of the actual <br />cost of acquisition of the permanent Pipeline right-of-way plus all carrying costs <br />including interest at nine percent (9%) from the date of acquisition of the right-of- <br />way through the date of conveyance; <br />E. WHEREAS, paragraph 4(e)(ii) of the SWSP Allotment Contracts does <br />not specify whether the nine percent interest described therein is to be calculated <br />based on a compounding annual 9% interest rate, or a simple non -compounding <br />annual 9% interest rate; <br />F. WHEREAS, Erie currently seeks the right to use a portion of the <br />Project ROW ("Erie ROW") within which it will construct a pipeline to be used as <br />part of Erie's municipal water supply system; <br />G. WHEREAS, the Erie ROW will be located within a portion of the <br />Project ROW associated with SWSP Pipeline Segment B6 ("Segment B6"), as <br />defined in the SWSP Allotment Contracts, the capacity of which segment of <br />pipeline is allocated only to Erie and Broomfield under the SWSP Allotment <br />Contracts <br />H. WHEREAS Erie and Broomfield desire to calculate any <br />reimbursement payments for the grant of right-of-ways to one another within <br />Segment B6 ("Segment B6 ROWs") based on applying a simple non -compounding, <br />annual 9% interest rate to one half of the original cost of acquiring the Segment B6 <br />ROW, rather than a compounding annual 9% interest rate. <br />I. WHEREAS, Erie, Broomfield, and the Enterprise desire to obtain the <br />SWSP Participants' consent to those terms for any conveyances of Segment B6 <br />ROWs. <br />NOW, THEREFORE, in consideration of the mutual promises and <br />covenants contained herein, the sufficiency of which is hereby acknowledged, the <br />SWSP Participants and the Enterprise hereby agree as follows: <br />1. Consent to Use of Simple, Non -Compounding Annual Interest rate. <br />The SWSP Participants and the Enterprise hereby consent to Erie and Broomfield <br />2 <br />