WELLOWNER/LANDOWNER WELL USE AGREEMENT

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1 WELLOWNER/LANDOWNER WELL USE AGREEMENT This Agreement ( Agreement ) is entered into on this day of, 200_, by and between BUENA VISTA WATER STORAGE DISTRICT ( District ) and ( Well Owner/Landowner ). WHEREAS, Landowner has previously constructed or owns a well and appurtenant facilities ( Well ); and WHEREAS, the Well Owner/Landowner now desires to make available certain Well capacity to District, upon terms and conditions herein contained. WHEREAS, for purposes of this Agreement, Land Owner is intended to refer to the actual owner of the real property upon which the Well is situated, and Well Owner is intended to refer to any person or entity claiming the right to extract water from such Well (typically a tenant). NOW, THEREFORE, the parties agree as follows: Facilities 1. The Well Owner/Landowner owns, and or operates and maintains a well, at T R Section as shown on Exhibit A, which is situated on Landowner s property (Well). Such Well and its appurtenant facilities include, but are not limited to, a well, pipes, valves, turnouts, meter, electrical and/or other power source(s), and perhaps other facilities to operate and maintain the Well. 2. Additional appurtenant facilities may be necessary to make water available from the Well to the District. Such facilities may include, but are not be limited to, valves, discharge piping, one or more meters, and other facilities deemed necessary or appropriate by District. Any such facilities shall be designed, constructed and maintained in accordance with District specifications at District s sole cost and expense at a location and manner to be agreed upon by the parties. Operation of Facilities 1. Well Owner/Landowner shall at all times be deemed to have first priority to the use of the Well for irrigation needs on Well Owner/Landowner property. The District shall at all times be deemed to have second priority to the extent that District s use be limited or suspended after notice is given per Section 3. below. 1

2 2. Well Owner/Landowner shall make capacity from the Well available to District only to the extent such capacity is not being utilized by Well Owner/Landowner, and subject to the operational limits of the Well. District may adopt and enforce reasonable rules and regulations regarding such use of capacity by District; provided, however, such rules and regulations shall not be inconsistent with this Agreement. 3. When and to the extent District desires to utilize such Well capacity, District shall provide at least 48 hours prior notice to Well Owner/Landowner of its anticipated needs. Only the Well Owner/Landowner shall operate the Well and its appurtenant facilities, subject to the limitations contained in paragraph (2) above. Once well is operated on behalf of District, Well Owner/Landowner shall give not less than 48 hours notice prior to interruption of such well use, except in emergencies for which Well Owner/Landowner shall attempt to provide as much notice as possible. 4. District shall meter water delivered to District through a metering system to be determined by District, and District shall read such meters periodically as deemed necessary or appropriate by District and Well Owner/Landowner, but in no event less frequently than once per months. Use of Water 1. Well water provided at District s request shall be District s sole responsibility, and District shall take all reasonable precautions regarding such water. 2. District may utilize water produced from the Well for District purposes or to otherwise meet District obligations as determined by the District. Payment Provisions 1. District shall pay an operation, maintenance, and capital replacement component to Well Owner/Landowner in the amount of $28.50 for each acre-foot of water produced from such Well at District s request. This payment shall be adjusted at the beginning of each year using the most recent monthly index with October 2007 as the base year by applying the Consumer Price Index, All Urban Consumer, All Item Index Western City within populations of 50,000 to 330, District shall also pay an energy component to Well Owner/Landowner in the amount of $0.35 for each acre-foot of groundwater pumped per foot of static lift (as measured each spring) as a reimbursement for power costs. This payment shall be adjusted at the beginning of each year using the most recent monthly index with October 2007 as the 2

3 base year by applying the Consumer Price Index, All Urban Consumer, Electricity Index for Southern California. 3. All costs of operating, maintaining, repairing, and replacing the well, pump, motor, and miscellaneous equipment associated therewith, including payment of all taxes, shall be the sole responsibility of the Well Owner/Landowner. Without limiting the foregoing, the Well Owner/Landowner does, at all times, specifically assume the risk if the well fails as a result of pumping water for the District under this agreement, and at all times during this agreement and thereafter. In case of equipment failure, Well Owner/Landowner agrees to repair and resume pumping within thirty (30) days of failure or as soon as practicable thereafter; HOWEVER, if the Well Owner/Landowner elects to abandon and destroy said well he shall so notify the District within fifteen (15) days of equipment failure. 4. Well Owner/Landowner waives and forever releases any and all claims which may occur arising out of the Well Owner/Landowner supplying well capacity to the District. In the event any third party in possession of Well Owner/Landowner s lands alleged that it was not supplied with adequate water, the Well Owner/Landowner agrees to indemnify, defend, and hold harmless the District and its directors, officers, employees, and agents for any claim or cause of action arising therefrom; Provided, however, by the foregoing neither the District nor the Well Owner/Landowner intends to create any third party beneficiary. 5. District shall provide a statement to Landowner for all costs pursuant to this Agreement, which shall be due and payable within forty-five (45) days of submittal to Well Owner/Landowner. If District fails or refuses to pay the amount due within such time, District s rights under this Agreement shall, in Well Owner/Landowner s sole discretion, be subject to immediate termination, and District shall be obligated to pay interest at 10% per annum and reasonable collection costs. Miscellaneous 1. This Agreement shall remain in effect until the earlier of (a) the Well Owner/Landowner s intentional abandonment of the Well, or (b) the end of the actual useful life of the Well, if not replaced by Well Owner/Landowner, or (c) until cancelled by either party upon 12 months prior written notice to the other. 2. This Agreement shall automatically be assigned by Well Owner/Landowner to their successors without the prior approval of the District. 3. Well Owner/Landowner makes no warranty, express or implied, with respect to the quality or quantity of water produced from the Well and District takes and utilizes such 3

4 water at District s sole risk and subject to the terms of this agreement, and District shall indemnify, hold harmless, and defend Well Owner/Landowner with respect to any and all claims, demands, or lawsuits regarding water produced from such Well at District s request, except as set forth in payment provisions, Section Nothing in this Agreement shall be construed as creating between the parties hereto a partnership, joint venture, agency or other similar relationship, and the parties hereto expressly disavow any such relationship. 5. Upon termination of this Agreement, any facilities provided or installed by District shall remain the property of District and may be removed in District s sole discretion. 6. Landowner shall provide an easement/license in a form satisfactory to District for any pipelines or appurtenant facilities that are to be installed or constructed by District pursuant to this Agreement. 7. Well Owner and Landowner, if different from the other agree to an apportionment of any proceeds pursuant to the following: Landowner % Well Owner % District shall make payment in accordance with the foregoing percentages. District BUENA VISTA WATER STORAGE DISTRICT, President, Landowner Well Owner 4

5 BVWSD Well Use Program Application Please fill in the application as complete as possible. Part 1: Basic Well Information: Well Owner: Phone: Address: Well location: Twp Rge Sec QtrQtr Well Access directions/map: Part 2: Detail Well Information: Total well depth: Casing diameter: in. Perf d depth interval: top btm Approx. depth to water: Pump depth (if in-hole): Date drilled: Motor size: hp Estimated flow rate: gpm/cfs (circle one) Acreage served: acres Part 3: Attachments (if available): Drillers Log Water Quality Report E-Log Recent PG&E bills while producing Pump Test Production records Photograph 5

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