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established by the Board for municipal water use in that water year. For the purpose <br />of this water contract, the water year is defined to be from November 1 to October 31 <br />of the following year. <br />If an annual payment as herein provided is not made by due date, written notice <br />thereof, by certified mail, will be given by Northern Water to the Applicant at the <br />following address: 749 Main Street, Louisville, Colorado 80027 <br />Water deliveries shall be suspended as of November 1 of the new water year until <br />payment of the delinquency is made. If payment is not made within ninety (90) days <br />after the date of mailing of said written notice, Applicant shall have no further right, <br />title, or interest under this contract; and the right of use of water as herein made, shall <br />be disposed of at the discretion of the Board of Directors of Northern Water. Any <br />proceeds from any sale of the right of use to another allottee shall be paid to <br />Applicant over and above Northern Water's actual expense in terminating and <br />disposing of the contract right of use. <br />5. This right of use shall be perpetual on an annually renewable basis. If the annual <br />payment is made as provided in this application, the right of use shall be <br />automatically renewed another water year without any further notice of Northern <br />Water; if the annual payment is not timely made, as provided above, the right of use <br />shall terminate. <br />6. Applicant agrees that the water allocation shall be beneficially used for the purposes <br />and in the manner specified herein, and that this right of use is made for the exclusive <br />benefit of the Applicant and shall not inure to the benefit of any successors or assigns <br />of said Applicant without prior specific approval of the Board of Directors of <br />Northern Water. <br />7. Applicant agrees to be bound by the provisions of the Water Conservancy Act of <br />Colorado; the rules, regulations and policies of the Board of Directors of Northern <br />Water as they now exist or as they exist in the future; and by the Repayment Contract <br />of July 5, 1938, between Northern Water and the United States and all amendments <br />thereof and supplements thereto. <br />8. Applicant agrees, as a condition of this contract, to enter into an "Operating <br />Agreement" with Northern Water if and when the Board of Northern Water finds and <br />determines that such an agreement is required by reason of additional or special <br />services requested by the Applicant and provided by Northern Water. Said agreement <br />may contain, but not be limited to, provision for water delivery at times or by means <br />not provided within the terms of standard contracts of Northern Water; additional <br />annual monetary consideration for extension of Northern Water delivery services and <br />for additional administration, operation and maintenance costs; or for other costs to <br />Northern Water which may arise through provision of services to the Applicant. <br />