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HomeMy WebLinkAbout20180956.tiffRESOLUTION RE: APPROVE ASSIGNMENT AND CONSENT TO ASSIGNMENT OF MAINTENANCE, OPERATION, AND ACCESS AGREEMENT AND AUTHORIZE CHAIR TO SIGN - VARRA COMPANIES, INC. / SAND LAND, INC. / SAND LAND PROPERTIES, LLC / AND GROUND WATER MANAGEMENT SUBDISTRICT OF THE CENTRAL COLORADO WATER CONSERVANCY DISTRICT, WATER ACTIVITY ENTERPRISE WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with an Assignment and Consent to Assignment of Maintenance, Operation, and Access Agreement among the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Department of Public Works, and Varra Companies, Inc., Sand Land, Inc., Sand Land Properties, LLC, and Ground Water Management Subdistrict of the Central Colorado Water Conservancy District, by and through its Water Activity Enterprise, commencing upon full execution of signatures, with further terms and conditions being as stated in said assignment of agreement, and WHEREAS, after review, the Board deems it advisable to approve said assignment of agreement, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that Assignment and Consent to Assignment of Maintenance, Operation, and Access Agreement among the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Department of Public Works, and Varra Companies, Inc., Sand Land, Inc., Sand Land Properties, LLC, and Ground Water Management Subdistrict of the Central Colorado Water Conservancy District, by and through its Water Activity Enterprise, be and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said assignment of agreement. &4C (bib) 2'ar(A9/eL) /o-!rY R-(8'- 18' 2018-0956 EG0075 ASSIGNMENT AND CONSENT TO ASSIGNMENT - VARRA COMPANIES, INC. / SAND LAND, INC. / SAND LAND PROPERTIES, LLC / AND GROUND WATER MANAGEMENT SUBDISTRICT OF THE CENTRAL COLORADO WATER CONSERVANCY DISTRICT, WATER ACTIVITY ENTERPRISE PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 28th day of March, A.D., 2018. BOARD OF COUNTY COMMISSIONERS WELD QQUNTY, COLORADO ATTEST: ddz/(44) Weld County Clerk to the County Attorney Date of signature: 0/71/ St : e Moreno, Chair Mike Freeman 2018-0956 EG0075 ASSIGNMENT AND CONSENT TO ASSIGNMENT OF MAINTENANCE, OPERATION, AND ACCESS AGREEMENT This ASSIGNMENT AND CONSENT TO ASSIGNMENT OF MAINTENANCE, OPERATION, AND ACCESS AGREEMENT ("Assignment and Consent"), is by and among Weld County, by and through the Board of County Commissioners of Weld County, ("Assignor"), Varra Companies, Inc., Sand Land, Inc., and Sand Land Properties, LLC., (hereinafter collectively, "Varra"), and Ground Water Management Subdistrict of the Central Colorado Water Conservancy District by and Through its Water Activity Enterprise ("Assignee"). RECITALS: County and Varra are parties to that certain Maintenance, Operation, and Access Agreement ("Original Agreement"), approved by the Board of County Commissioners of Weld County on May 30, 2012, listed as Weld County Document Number 2012-1329, recorded in Weld County Records at Recording Number 3850908, and attached hereto and incorporated herein. The Original Agreement may not be assigned without the express written consent of the other party, and the written agreement of the party to whom the obligations are assigned. NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Assignor, Varra and Assignee hereby agree as follows: 1. Assignment. Assignor hereby assigns the Original Agreement to Assignee, with Assignee assuming all of the obligations and rights of Assignor thereunder arising from and after the effective date of this Assignment and Consent. Assignee hereby accepts such assignment. Nothing in this assignment nor in the Original Agreement shall be construed as a waiver of Assignee's immunity under the Colorado Constitution and/or the Governmental Immunity Act. Assignee and Varra further release Assignor from all obligations, liabilities and/or responsibilities associated with the Original Agreement. 2. Acknowledgements and Confirmations by Assignor. Assignor hereby confirms that the Original Agreement is in full force, and effect, and except as stated herein, there are no other amendments or other agreements modifying the terms of the Original Agreement. To Assignor's knowledge, Assignor is not in default under the Original Agreement and has performed all duties and obligations required under the term of the Original Agreement as of the date of this Assignment and Consent (including, without limitation, the payment of all expenses or amounts which may have been incurred by the Assignor and/or Varra previous to this Assignment and Consent). Assignor has not assigned or transferred the Original Agreement or any interest therein. 3. Varra's Consent. Varra hereby consents to this Assignment and Consent. In connection with such consent, Varra hereby confirms that the Original Agreement is in full force, and effect and except as stated herein, there are no other amendments or other agreements modifying the tetins of the Original Agreement. Varra affirms that Assignor is not in default 4430125 Pages: 1 of 5 09/11/2018 02:58 PM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County, CO VIII kriditilhAillisitilIMItIi Ill III 2018-0956 under the Original Agreement and has performed all duties and obligations required under the term of the Original Agreement as of the date of this Assignment and Consent (including, without limitation, the payment of all expenses or amounts which may have been incurred by the Assignor and/or Varra previous to this Assignment and Consent). 4. Successors. The provisions of this Assignment and Consent shall bind and the benefits shall inure to the heirs, representative, successors, and assigns of the parties hereto. 5. Severability. If any provision of this Assignment and Consent shall be held invalid or unenforceable for any reason or to any extent, the remainder of this Assignment and Consent or the application of the term or provision to persons or circumstances other than those as to whom or with respect to which it is held invalid or unenforceable, shall not be affected, and each shall be valid and enforceable to the fullest extent permitted by law. As between Assignor and Assignee, this Assignment and Consent is subject to the terms and conditions of any other written agreement by and among Assignor and Assignee. In the event of any conflict between this Assignment and Consent and any other written agreement, this Assignment and Consent shall control. 6. Governing Law. This Assignment and Consent shall be governed by, and constructed in accordance with, the laws of the State of Colorado. 7. Counterparts. This Assignment and Consent may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement. This Assignment and Consent may be executed by facsimile or other electronic signature and such electronic signature shall constitute an original for all purposes. 8. Notices. All notices, requests, concerns, approvals, payments in connection with this Assignment and Consent, or communications that either party desires or is required or permitted to give or make to the other party under the Original Agreement, shall only be deemed to have been given, made and delivered, when made or given in writing and personally served, or deposited with a reputable overnight courier such as FedEx, postage prepaid, and addressed to the recipient parties as follows: If to Assignor: If to Assignee: Weld County Director of Public Works PO Box 758 Greeley, CO 80632 970-304-6496 Ground Water Management Subdistrict of the Central Colorado Water Conservancy District by and Through its Water Activity Enterprise 3209 W 28th St Greeley, CO 80632 970-330-4540 If to Varra: Varra Companies 4430125 Pages: 2 of 5 09/11/2018 02:58 PM R Fee:$0,00 Carly Koppes, Clerk and Recorder, Weld County, CO 'Haiti1I II Attention: Garrett Varra 8120 Gage St Frederick, CO 80516 970-666-6657 With a copy to: Weld County Attorney's Office 1150 'O' Street Greeley, Colorado 80632 9. Recording. Assignee shall, at its cost, cause this Assignment and Consent to be recorded in the real property records of Weld County, Colorado. Upon such recording, this Assignment and Consent shall constitute record notice of the existence of the Original Agreement and the assignment thereof to Assignee. Reference should be made to the Original Agreement for a full description of the rights and duties of the parties thereto. IN WITNESS WHEREOF, the parties hereto have executed this Assignment. VARRA: ��/ By: K,'4 - Name: G,arf c.' 14-1- Title: V�. STATE OF Cb (ad° ° COUNTY OF Wet d ) SS: ) The foregoing instrument was acknowledged before me this 2.).(day of ruu_vv� 2 by G acknowledged Va. vv WITNESS my hand and official seal My commission expires: D'1.4 2 JESSICA HOOVER NOTARY PUBLIC ► ' STATE OF COLORADO NOTARY ID 20044035571 MYCOMMISSION E)PIRESOCTOBER04,2020 ► 4430125 Pages: 3 of 5 09/11/2018 02:58 PM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County, CO lilt Mr114ill li ' F IMVIOTI PIV MI III 3 ASSIGNEE: Ground Water Management Subdistrict of the Central Colorado Water Conservancy District by and Through its Water Activity Enterprise STATE OF C 0 t r-xck) COUNTY OF LcD,c4 ) SS: By: Name: Title: -r Ae/issemi" he foregoing instrument was acknowledged befo e me this 3 day of 201,�by G WITNESS my hand and official seal My commission expires: `- TAMMY J RUSCH NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20134030345 MY C$IjUSiN EXPIRES MAY 13, 2021 Weld County Clerk to the Board By: Deputy Clerk to the Board ASSIGNOR: Weld County, by and through the Board of County Commissioners of Weld County, Colorado By: (Se NE)Cr PAGE) 4430125 Pages: 4 of 5 09/11/2018 02:58 PM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County, CO iii IMICIICIAN IA II II Julie Cozad, Chair ASSIGNEE: Ground Water Management Subdistrict of the Central Colorado Water Conservancy District by and Through its Water Activity Enterprise STATE OF COUNTY OF ) SS: By: Name: Title: (See AeEv' s r'AG Ej The foregoing instrument was acknowledged before me this day of 2017 by WITNESS my hand and official seal My commission expires: Notary Public ASSIGNOR: ATTEST: Weld County, by and through the Board of County Commissioners of Weld County, Colorado Weld County Clerk to the Board By: 4430125 Pages: 5 of 5 09/11/2018 02:58 PM R Fee:$0.00 Carly Koppes, Clerk and Recorder, Weld County, CO �.rkilifit 14 N0414 IN Steve Moreno, Chair MAR 2 8 2018 X0/8-09� MAINTENANCE, OPERATION AND ACCESS AGREEMENT THIS AGREEMENT (hereinafter "AGREEMENT"), is by and between WELD COUNTY, (hereinafter "COUNTY") and VARRA COMPANIES. INC., SAND LAND, INC., and SAND LAND PROPERTIES, LW., (hereinafter collectively "VARRA"). WITNF.SSETH; WHEREAS, COUNTY owns, manages and controls a portion of the NW 1/4 of Section 2, Township 2 North (T2N), Range 68 West (R68W) of the Sixth Principle Meridian (6th P.M.), Weld County, Colorado (hereinafter "COUNTY PREMISES") which contains that certain Gravel Pit known as the Hokestra Gravel Pit; and WHEREAS, SAND LAND, INC. AND SAND LAND PROPERTIES, LW. owns and controls, and VARRA COMPANIES, INC. manages and operates a portion of the S I/2 of Section 2, Township 2 North, (T2N), Range 68 West (R68W) of the Sixth Principle Meridian (6'h P.M.), Weld County, Colorado (hereinafter "VARRA PREMISES"); and WHEREAS, an earthen ditch and 15 feet for access road lies north of and adjacent to the Rural Ditch then running parallel to the Rural Ditch are located on the VARRA PREMISES to the point where the ditch crosses under WCR 24.5, at which point the ditch is located on COUNTY PREMISES where it runs along the eastern edge of the COUNTY PREMISES (hereinafter collectively "DITCHES"), as more particularly described and shown on Exhibit I, which is attached hereto and by this reference made a part hereof; and WHEREAS, COUNTY owns, has interests in, manages and otherwise controls the operation of the DITCHES located upon the COUNTY PREMISES; and WHEREAS, SAND LAND, INC. AND SAND LAND PROPERTIES, LLC. owns, and VARRA COMPANIES, INC. manages and controls, the operation of the DITCHES located upon the VARRA PREMISES; and WHEREAS, the headgate for the DITCHES on the Rural Ditch is used by the COUNTY and VARRA and is located approximately 2,490 feet from the west section line and 1,810 feet from the south section line in the NEI/4 of the SW 1/4 of Section 2, T2N. R68W of the 6h P.M. on the VARRA PREMISES and is shown on Exhibit I; and WHEREAS, the County recently paid a total of $2,950 to the Rural Ditch Company for the rehabilitation of the headgate for the DITCHES on the Rural Ditch (the "Headgate Repair Costs"); and WHEREAS, COUNTY owns three and three quarters (3.75) shares of the capital stock of the Rural Ditch Company (hereinafter "COUNTY SHARES") that have historically been delivered through the DITCHES and irrigated portions of the COUNTY PREMISES that COUNTY now uses as an augmentation supply; and WHEREAS, COUNTY may in the future seek to deliver other water owned, leased or otherwise controlled by the COUNTY through the DITCHES for delivery to the Hoekstra Pit or to the Saint Vrain River (hereinafter "COUNTY WATER"); and WHEREAS, VARRA COMPANIES, INC. owns four (4) shares of the capital stock of the Rural Ditch Company (hereinafter "VARRA SHARES") that are used as an augmentation supply; and WHEREAS, two (2) of the four (4) VARRA SHARES were historically delivered from the Rural Ditch via the DITCHES to the VARRA PREMISES and since approximately 2002 these 2 VARRA SHARES have been delivered with the COUNTY's consent via the DITCHES across the COUNTY PREMISES to the Saint Vrain River, and WHEREAS, the other two (2) VARRA SHARES were historically delivered from the Rural Ditch and used at another location; and WHEREAS, SAND LAND, INC. and VARRA COMPANIES, INC. own water rights decreed in Case No. 01CW274 and may appropriate or acquire other water rights which may be diverted at the Rural Ditch and delivered via the DITCHES to the VARRA PREMISES for decreed uses and via the DITCHES across the COUNTY PREMISES to the Saint Vrain River for decreed uses (hereinafter "VARRA WATER"); and WHEREAS, COUNTY and VARRA desire to facilitate the conveyance of the COUNTY SHARES, the COUNTY WATER, the VARRA SHARES, and the VARRA WATER through the DITCHES for delivery to the Saint Vrain River for the purpose of augmentation and other beneficial uses. NOW, THEREFORE, in consideration of the mutual promises and covenants of the parties hereto, IT IS HEREBY AGREED AS FOLLOWS: 1. VARRA agrees to allow COUNTY to convey the COUNTY SHARES and COUNTY WATER through the DITCHES located on the VARRA PREMISES for delivery to the Hokestra Pit or to the Saint Vrain River during the term of this AGREEMENT and COUNTY agrees to allow VARRA to convey the VARRA SHARES and VARRA WATER through the DITCHES located on the COUNTY PREMISES for delivery to the Saint Vrain River during the term of this AGREEMENT. 2. COUNTY and VARRA COMPANIES, INC. agree to construct one or more augmentation structure(s) comprised of a flume or other measuring device and a continuous recorder as required by the Colorado Division of Water Resources (hereinafter "STRUCTURES") in the DITCHES to measure the COUNTY SHARES, the COUNTY WATER, the VARRA SHARES and the VARRA WATER delivered from the Rural Ditch to the DITCHES and from the DITCHES to the Saint Vrain River at the locations generally shown on Exhibit 1 and in accordance with the drawings and plans to be prepared and submitted by the COUNTY within 90 days of the date of this AGREEMENT and accepted and agreed to by VARRA (hereinafter "the CONSTRUCTION PLANS"). COUNTY and VARRA COMPANIES, INC. shall split costs of the CONSTRUCTION PLANS and the construction, operation, maintenance and repair of the STRUCTURES 50% by COUNTY and 50% by 2 VARRA COMPANIES, INC. The COUNTY shall receive a credit for up to 'h of the Headgate Repair Costs towards its share of these costs. COUNTY and VARRA shall jointly own the STRUCTURES. 3. The parties agree that the DITCHES currently have the capacity to carry 3.5 c.f.s. from the Rural Ditch to the Saint Vrain River. The parties agree to enlarge the DITCHES so that they can safely carry a total of 8.7 c.f.s from the Rural Ditch to the Saint Vrain River. The cost of the enlargement of the DITCHES shall be divided so that the COUNTY pays for 50% of said enlargement and VARRA COMPANIES, INC. pays for 50% of said enlargement. 4. COUNTY and VARRA COMPANIES, INC. shall work together to obtain the Rural Ditch Company's approval as necessary related to the installation and use of the STRUCTURES to measure water from the Rural Ditch and to perform any work on the Rural Ditch that may be necessary to facilitate delivery of the COUNTY SHARES, the COUNTY WATER, the VARRA SHARES, and the VARRA WATER into the DITCHES. 5. All work done on the DITCHES and STRUCTURES may be performed by either the COUNTY and/or the COUNTY'S representatives or VARRA COMPANIES, INC. with payment and/or reimbursement by the party that does not perform such work pursuant to the percentages set forth in paragraph 2 unless otherwise agreed to in writing between COUNTY and VARRA COMPANIES, INC. Except in an emergency which requires immediate repairs as detailed in paragraph 6 below, COUNTY and VARRA shall confer with each other regarding access or any repairs, inspections, operations, and/or maintenance that must be performed and document their agreement on the same in writing prior to performing the work; however, this provision shall not apply to ordinary maintenance activities which may be performed by COUNTY or VARRA COMPANIES, INC. in their sole discretion. Neither party shall unreasonably object to such access or the performance of any such inspections, operations, maintenance or repair work. Furthermore, the parties agree that prevention of damage to the DITCHES and STRUCTURES and prevention of unplanned discharges shall be the goal of maintenance and repair work. 6. In the event conditions are present which would cause damage to the COUNTY PREMISES or the VARRA PREMISES, an immediate threat to public health and safety or would otherwise render the DITCHES and STRUCTURES unusable for their intended purpose (hereinafter "EMERGENY CONDITION"), either party shall, after inspection, notify the other of such EMERGENCY CONDITION and both parties will thereafter cause all water deliveries through the damaged portion of DITCHES or STRUCTURES to cease until adequate repairs can be made. Contact information for VARRA and COUNTY representatives to be notified in the event of EMERGENCY CONDITION are set forth in paragraph 16. In an EMERGENCY CONDITION, either party shall identify the emergency repair(s) required and shall consult with the other party on the extent, type, timing, materials and quality of repair (i.e. temporary versus permanent) within twenty-four (24) hours after receipt of such notice and shall commence such emergency repair within forty-eight (48) hours after receipt of such notice. If such repair is not commenced within such forty-eight (48) hour period, the other party shall have the right to perform such repair. The parties recognize temporary cessation of water deliveries may be necessary to facilitate the repairs. The party commencing the emergency repairs shall notify the other party of the expected length and duration of repair work and associated curtailment of use of the subject facilities. 3 7. COUNTY grants VARRA an easement to access the STRUCTURES and use the portion of the DITCHES located on COUNTY PREMISES consistent with this Agreement as reasonably necessary for VARRA to access, construct, repair, maintain, replace, inspect, and operate the STRUCTURES and DITCHES located on the COUNTY PREMISES so as to effectuate the measurement and delivery of the VARRA SHARES and VARRA WATER and to obtain readings on recording devices installed on the STRUCTURES located on the COUNTY PREMISES in order for VARRA to complete any accounting necessary and required for the VARRA SHARES and the VARRA WATER. SAND LAND, INC. and SAND LAND PROPERTIES, LLC grant COUNTY an easement to access the STRUCTURES and use the portion of the DITCHES located on the VARRA PREMISES consistent with this Agreement as reasonably necessary for COUNTY to access, construct, repair, maintain, replace, inspect, and operate the STRUCTURES and the DITCHES located on the VARRA PREMISES so as to effectuate the measurement and delivery of the COUNTY SHARES and COUNTY WATER and to obtain readings on recording devices installed on the STRUCTURES located on the VARRA PREMISES in order for COUNTY to complete any accounting necessary and required for the COUNTY SHARES and COUNTY WATER. The approximate size and location of the easements granted in this paragraph 6 are generally shown on the map attached as Appendix 1. During construction and installation of the DITCHES and STRUCTURES the easement for the DITCHES and STRUCTURES shall extend 50 feet from the centerline of the DITCHES to allow for construction work along the DITCHES. Upon completion of the construction and installation of the DITCHES and STRUCTURES, the easement shall be 20 feet from the centerline of the DITCHES and STRUCTURES. Following installation and construction of the STRUCTURES and DITCHES, the parties shall complete and mutually agree upon an "as built" survey of the STRUCTURES and DITCHES herein which shall also show and define the easements granted herein (hereinafter the "SURVEY"). The SURVEY shall be recorded along with this Agreement with the Weld County Clerk and Recorder. 8. COUNTY and VARRA shall each bear a proportionate amount of ditch loss in the DITCHES based on the amount of water delivered by each party through the DITCHES as measured at the STRUCTURES. COUNTY and VARRA shall coordinate and share information regarding the daily amount of water each party runs in the DITCHES in order that they can determine and/or calculate the appropriate amount of ditch loss attributable to each party. 9. The rights of COUNTY and VARRA granted herein to use the STRUCTURES and the DITCHES to convey and deliver the COUNTY SHARES, the COUNTY WATER, the VARRA SHARES and the VARRA WATER shall be equal in priority with the COUNTY entitled to first use of 4.35 c.f.s. and VARRA entitled to first use of 4.35 c.f.s. of the capacity in the DITCHES following the enlargement described in paragraph 3 above. In addition, each party shall be entitled to use the other party's capacity in the DITCHES when that party is not using its capacity subject to the provisions of paragraph 10 below. The COUNTY may further enlarge the DITCHES at its sole expense so as to facilitate the delivery of water from the Rural Ditch to the Hoekstra Pit and water stored in the Hoekstra Pit to the Saint Vrain River; provided, the COUNTY contact and obtain the prior written agreement of VARRA for work done on the DITCHES and on or in the VARRA PREMISES which agreement shall specify in writing the terms of use for such excess 4 capacity. In addition, VARRA may further enlarge the DITCHES at their sole expense so as to facilitate the delivery of water stored in the 112 Pit to the Saint Vrain River or for other purposes; provided, VARRA contacts and obtains the prior written agreement of the COUNTY for work done on the DITCHES and on or in the COUNTY PREMISES which agreement shall specify in writing the terms of use for such excess capacity. The parties further agree to jointly investigate the potential costs and benefits of piping all or parts of the DITCHES from the Rural Ditch to the Saint Vrain River. 10. If and when one party to this Agreement is not fully utilizing their capacity in the DITCHES as defined in paragraph 9 above, the other party may use said capacity after it has provided formal written notice to the non -using party that it intends to use the capacity which notice shall include a schedule showing the amounts and times during which it proposes to use the capacity and the amount of compensation, if any, to be paid for said temporary use. Use of the capacity shall not commence until the non -using party has agreed to and approved said notice in writing. Any use of capacity under this paragraph 10 shall immediately cease upon notice by the non -using party that it desires to begin using all or part of its capacity as defined in paragraph 9. 11. VARRA'S and the COUNTY'S use of the DITCHES and/or STRUCTURES under this AGREEMENT do not extend to other persons or entities, except upon prior written agreement of VARRA and the COUNTY which agreement shall specify in writing the terms of such use by other persons or entities and an agreement between VARRA, COUNTY and the other person or entity's which binds the other person or entity to, among other things, a schedule of the time and amounts of use and agreement regarding payments to be made to COUNTY and/or VARRA associated with the other person or entity's use of the DITCHES and/or STRUCTURES and such other agreements, indemnifications, obligations or duties to be undertaken by the other person or entity in connection with their use of the DITCHES and/or STRUCTURES. 12. COUNTY retains fee ownership of the DITCHES located on COUNTY PREMISES, and retains the total and absolute authority to manage and control the COUNTY PREMISES and the DITCHES located on the COUNTY PREMISES except as provided by this Agreement. SAND LAND, INC. and SAND LAND PROPERTIES, LLC retain fee ownership of the VARRA PREMISES and the absolute authority to manage and control the VARRA PREMISES. SAND LAND, INC. and SAND LAND PROPERTIES, LLC retain fee ownership of the DITCHES located on the VARRA PREMISES and retain the total and absolute authority to manage and control the DITCHES located on the VARRA PREMISES. In an emergency, VARRA or COUNTY may deem it necessary to temporarily suspend the conveyance of water in the DITCHES and/or the STRUCTURE(S). In such an event, the parties shall follow the protocol set forth in paragraph 6 above and the parties agree not to hold the party temporarily suspending conveyance of water liable for such temporary suspension; however, the party temporarily suspending conveyance of water shall use all reasonable diligence to resume the conveyance and delivery of the COUNTY SHARES, the COUNTY WATER, the VARRA SHARES, and the VARRA WATER as quickly as is reasonably possible. VARRA and COUNTY recognize that the COUNTY PREMISES and the VARRA PREMISES are currently being mined and as such, access and or use of either the COUNTY PREMISES or the VARRA PREMISES may be limited by requirements of any mining permit or other regulations of the State of Colorado. 5 13. VARRA agrees to indemnify and to hold COUNTY harmless of and from any claims or cause of action from third parties against COUNTY arising out of VARRA'S use of the DITCHES and the STRUCTURES located on the COUNTY PREMISES pursuant to the rights granted by this AGREEMENT. VARRA shall indemnify and hold harmless the COUNTY from any and all liability loss and damage COUNTY may suffer as a result of all suits, actions or claims of every nature and description caused by, arising from, or on account of said design and construction of the DITCHES and STRUCTURES, and pay any and all judgments rendered against the COUNTY on account of any such suit, action or claim, together with all reasonable expenses and attorney fees incurred by COUNTY in defending such suit, action or claim whether the liability, loss or damage is caused by, or arises out of the negligence of the COUNTY or its officers, agents, employees, or otherwise except for the liability, loss, or damage arising from the intentional torts or the gross negligence of the COUNTY or its employees while acting within the scope of their employment. All contractors and other employees engaged in construction of the improvements under this AGREEMENT shall maintain adequate worker's compensation insurance and public liability insurance coverage, and shall operate in strict accordance with the laws and regulations of the State of Colorado governing occupational safety and health. 14. To the extent allowed by law and as otherwise consistent with paragraph 13 above, the COUNTY does hereby indemnify, defend and agree to hold VARRA harmless from any claims or cause of action from third parties against VARRA arising out of COUNTY'S use of the DITCHES and the STRUCTURES located on the VARRA PREMISES pursuant to the rights granted by this AGREEMENT. Nothing herein shall be construed as a waiver of the COUNTY'S immunity under the Colorado Constitution and/or the Governmental Immunity Act. 15. The term of this AGREEMENT shall be perpetual unless both parties agree, in writing, to terminate this AGREEMENT. 16. Notice. When notice, conferral and/or subsequent agreement is required by this Agreement, including but not limited to notices, conferrals and/or subsequent agreements required in paragraphs 5, 6, 9, 10, 11, 15 and 21, the parties shall provide notice, confer or initiate contact to discuss subsequent agreements with the following persons: a. For COUNTY: Weld County Engineer Attn: David Bauer Weld County Public Works P.O. Box 758 Greeley CO 80632 Telephone No. 970-304-6496 Emergency Telephone No. 970-356-4015 6 b. For VARRA: Attn: Garrett Varra 8120 Gage Street Frederick, CO 80516 303-666-6657 Either party may, by written notice to the other party, change its notice person(s) or designated representative(s) or the address to which written notices or communications are to be sent. 17. Severability: If any provision of this Agreement shall be held invalid or unenforceable, the remainder of this Agreement and the application of such provision to persons or situations other than those to which it shall have been held invalid or unenforceable, shall not be affected thereby, but shall continue to be valid and enforceable to the fullest extent permitted by law and the parties agree that this agreement shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 18. Counterparts: This Agreement may be executed in counterparts, each of which shall constitute an original and together which shall constitute one and the same document. Facsimile signatures shall be accepted as originals. 19. Choice of Laws/Entire Agreement: This Agreement shall be governed by the laws of the State of Colorado. This Agreement has been designed in part to encompass the requirements of the Board of County Commissioners. Any amendment to this Agreement shall only be valid if set forth in writing and signed by both VARRA and COUNTY. 20. This AGREEMENT constitutes the entire agreement between the parties hereto relating to the subject hereof, and no modification of the same shall be valid, binding, recognized or enforceable unless made in writing and signed by both parties. 21. No Assignment. Except as provided in this paragraph, this agreement may not be delegated or assigned in whole or in part by either party hereto without the express written consent of the other party and the written agreement of the party to whom the obligations under this agreement are assigned. Consent to a delegation or an assignment will not be unreasonably withheld. Varra may assign this agreement in whole or in part to another entity that a member of the Varra family has a controlling interest in, or to individual members of the Varra family without prior written consent of the other parties. Varra shall provide notice pursuant to paragraph 16 that such assignment to a Varra family member or Varra entity has been made. 22. Subject to paragraph 21, this AGREEMENT shall be binding upon the parties hereto, and their respective heirs, executors, administrators, assigns, and successors and upon recording by the County, shall be deemed a covenant running with the land herein described. 7 IN WITNESS WHEREOF, COUNTY and VARRA have, caused this AGREEMENT to be executed in duplicate on the date and year written below. WELD COUNTY: BOARD OF COMMISSIONERS VARRA COMPANIES, INC.: MAY 3 0201? Sean P. Conway, Chair (Date) ATTEST: By: Deputy SAND LAND PROPERTIES, LLC: / ATTEST: )Z;y2.0 le -.-201.2 (Dale) TTEST: (Seal) A 01:7-5717A__. jt SAND LAND, INC.: `cr ;24 (Dale) (Seal) 8 ATTEST: (Date) (Seal) learrAtirafrIelf 7 Appendix m Approximate Easement Locations W{fi- C..tatt Preperit, E li iir (sat Kau ,Yee? rite fr: tZi:,m •si4 * v)4,64 s is t+nstflA 2 w s*'s :a..ae am r'.1P<< gs.rs`;MF .Fsit Iry -..so- r i+4'we.t remit a t,frat wait to 1.e YAtita taftdcaiNe Inn A` rig wel, fr AP, Wort%flC*$ IS tit ilia .a re Viniralta a%P',.s[Ae Sava t'$4I.at.. Lt$Unetdrign;DAV*$100.7 P?1.dMMAC*5 t)4 CA -ARAM t ft, ftft.f4CW'ftt tAt 1R#"t*O i0 III, 1".dk1V };1SM�.S CC JAM: t.VA' £t!*. e12:41t bt,z:Nt 0,SA tfC7 (*:*i r I. 61+1 rfn i LINK 1'F'r' Srvv ;IFi:zkt tilt+ .Ct s.c,,sc .s to ttw 3rt, bitkV441 ttrt,.*oaf (fire It* v .•.• •n•yv,..y...-Y,�alf 110SMCF.K0A...iMON, a~ • s'"?-.ry- ra Ralajna asth a caj ty , • purMf*•llbirM OIP 13...ta 4,0:`9 SY+✓o11MR. Nu ....-e .... 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