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monthly accounting for the reuse water delivered to the system on behalf of the Lessee. Lessee <br />is solely responsible for meeting the terms, conditions, and reporting requirements of Lessee's <br />Decree. <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 <br />charges 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, <br />if the time and amount of water sought from Lessor under this Lease changes. If <br />the Lessor is able to provide the water, Lessor shall release the water, and notify <br />Lessee of the amount, location and time of the release. Lessor shall account for <br />any provision of augmentation water in Lessor's accounting. Lessor shall notify <br />Lessee, 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 <br />available, to provide five (5) acre-feet per year. The parties acknowledge that <br />Lessee's Decree includes up to ten (10) acre-feet per year of augmentation and <br />exchange water available from Lessor. Lessee may request additional amounts up <br />to ten acre-feet per year; however, Lessor is under no obligation to provide <br />additional amounts. <br />11. Operational Requirements. <br />11.1. The Lessee shall keep detailed records and evidence of its use of the Lessor's <br />Water Rights as required under the Lessee Decree, including daily measurements <br />of amounts requested using measuring devices approved by the Water <br />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 15`n 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 <br />repair all ditches and structures required for it to use the Lessor's Water Rights in good and safe <br />condition at its own cost and expense. The Lessor may inspect all ditches and structures required <br />for the Lessee's use of the 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 9 <br />