Ordinance 2021-1804 - Laserfiche WebLink

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2. PIPELINE RIGHTS TO TRANSPORT WATER a. Pipeline Interest. As part of the City's consideration for this Agreement, the City requires the right to use and/or construct facilities to transport certain water rights to the Bull Canal (the "Facilities") and from the Bull Canal to Big Dry Creek. The City owns shares in the Marshall Division of the Farmers Reservoir and Irrigation Company ("FRICO"). FRICO has certain Facilities that could be used to transport certain water rights to the Bull Canal; the City shall negotiate with FRICO with respect to transporting water, and if an agreement between the City and FRICO is not completed within the Due Diligence period, the City may terminate this Agreement. b. CK Ventures has identified a pipeline described on Exhibit C attached hereto and incorporated herein by this reference that possibly may, if extended, be used to divert water from the Bull Canal and deliver water to Big Dry Creek (the "Pipeline"). CK Ventures has the right to use the Pipeline pursuant to an Agreement to Assign and Convey Common Use Agreement and Other Rights made as of , 2021 by and between LMB Capital Partners, LLC, a Colorado limited liability company ("LMB"), and CK H2O Ventures, LLC, a Colorado limited liability company. LMB, as the successor in interest to Casper and Molly Sack ("Sack") pursuant to a certain Warranty Deed dated December 7, 2004, and recorded in the real property records of Adams County, Colorado (the "Official Records") on December 17, 2004, at Reception No. 20041217001286410, became the ditch owner under that certain Common Use Agreement Between the E-470 Public Highway Authority and Casper and Molly Sack by and between Sack and the E-470 Public Highway Authority, a body corporate and political subdivision of the State of Colorado ("Authority") dated as of November 8, 2001, at Reception No. C0891282 (as may be amended from time to time, the "Ditch Agreement"), which Ditch Agreement concerns the use by LMB of those "Ditch Facilities" (inclusive of any existing open ditches and underground pipelines and as defined in the Ditch Agreement) for the transport of water and water rights to Bull Canal over and across that certain property in the County of Adams, State of Colorado, as more particularly described in the Ditch Agreement (the "Property"). Copies of the foregoing Agreement to Assign and Convey Common Use Agreement and other Rights, Common Use Agreement and Ditch Agreement are attached as Exhibit D and incorporated by this reference. If the City gives written notice within the Due Diligence Period to CK Ventures that the Pipeline Rights are suitable for the City's proposed use, CK Ventures shall deliver to the City an assignment of the Pipeline interests described in Exhibit D. The City's right to use the Pipeline shall be nonexclusive with respect to reasonable uses of the Pipeline, provided that the City's use thereof is in no way impaired, and there is no increase in the cost of maintenance and repair by the City. The City accepts the LMB Reservation described and defined in Exhibit D. c. Alternative Easement. Alternatively, if the City finds that the Pipeline is not suitable for transporting the City's water, the City may propose alternative options for the location of facilities suitable for the construction of a structure required by the City. An alternative location for the easement must be agreed to and approved in writing by the Parties prior to the close of the Due Diligence Period, unless an extension is mutually agreed to in writing. Page 3 of 13