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made in hundredths (0.00) of an acre-foot increment. The Lessor will provide the Lessee with <br />monthly accounting for the reuse water delivered to the system on behalf of the Lessee. Lessee is <br />solely responsible for meeting the terms, conditions, and reporting requirements of any final decree <br />resulting from Lessee's Application. <br />7. Lessee is responsible for calculating transit losses, including transit losses in the <br />replacement schedule. <br />8. Lessee shall be responsible for the maintenance and repair costs of any structures from <br />which water is diverted for Lessee's benefit, in addition to the operation and maintenance charges <br />described herein, including paragraph 12. <br />9. Augmentation Credits and Diversions. <br />9.1. The Lessee has determined the current time and amount of water sought from <br />Lessor, which is attached as Exhibit B. Lessee shall notify the Lessor, in writing, if <br />the time and amount of water sought from Lessor under this Lease changes. If the <br />Lessor is able to provide the water, Lessor shall release the water, and notify Lessee <br />of the amount, location and time of the release. Lessor shall account for any <br />provision of augmentation water in Lessor's accounting. Lessor shall notify Lessee, <br />in writing, at any time Lessor is unable to provide augmentation water. <br />10. Volumetric Limits. <br />10.1. Lessor has agreed, subject to its discretion to determine whether water is available, <br />to provide 4.34 acre-feet per year. The parties acknowledge that Lessee's <br />Application includes up to seven (7) acre-feet per year of augmentation water <br />available from Lessor. Lessee may request additional amounts up to seven acre- <br />feet per year; however, Lessor is under no obligation to provide additional amounts. <br />11. Operational Requirements. <br />11.1. The Lessee shall keep detailed records and evidence of its use of the Lessor's Water <br />Rights as will be required under the Lessee's final decree resulting from the <br />Lessee's Application, including daily measurements of amounts requested using <br />measuring devices approved by the Water Commissioner. <br />11.2. The Lessee shall provide Lessor with copies of its required reports to the Division <br />Engineer regarding water use by the 15th following each proceeding month. <br />12. Maintenance and Operation. The Lessee shall be responsible for all expenses relating to <br />the Lessee's use of the Lessor's Water Right. The Lessee shall install, operate, maintain, and repair <br />all structures required for it to use the Lessor's Water Rights in good and safe condition at its own <br />cost and expense. The Lessor may inspect all structures required for the Lessee's use of the <br />Lessor's Water. <br />13. Title to Water Rights. Nothing in this Lease is to be interpreted as giving the Lessee any <br />legal or equitable title in or to the Lessor's Water Rights. <br />14. Disclaimer of Warranties. <br />Page 3 of 8 <br />