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Agreement to Lease Water for Irrigation <br />Thi grea m~~ ease Water for Irrigation ("Lease Agreement") is made and entered <br />into this ~'of e~tb · , 2018 ("Lease Effective Date") by and between Kittitas County, a <br />political subdivision of the State of Washington, ("the County") and Jim and Hazel Treat, a <br />married couple ("Treat"). The County and Treat are collectively referred to herein as the <br />"Parties." <br />Factual Background <br />A WHEREAS, Treat owned all of the water under Water Right Certificate No. S4- <br />84509-J in Cooke Creek, with a priority date of June 30, 1872 ("the Water Rights"), which are <br />more fully described in Exhibit A, attached hereto and incorporated herein; <br />B. WHEREAS, a portion of the Water Rights were sold by Treat to the County (the <br />"County's Water Rights") pursuant to a water rights purchase and sale agreement dated June 26, <br />2017 and modified on June 28, 2018, which closed on August 1, 2018 (the "Treat PSA"). A copy <br />of the Purchase and Sale Agreement and the Statutory Warranty Deed conveying the County's <br />Water Rights are attached to this Agreement as Exhibit B and incorporated herein; <br />C. WHEREAS, place of use and purpose of use of the Water Rights were changed <br />from irrigation to instream flow and mitigation in the Report of Examination issued by Ecology <br />on June 14, 2018 ("ROE"), which is attached to this Agreement as Exhibit C and incorporated <br />herein; <br />F. WHEREAS, the Parties agreed, in Paragraph 10 of the Treat PSA as amended, <br />that the County will lease to Treat and Treat will lease from the County the County's Water <br />Rights for twenty (20) years from August 1, 2018 ("Leaseback Provision"), except in those years <br />in which there is a drought in the Yakima Basin; and <br />H. WHEREAS, the Parties wish to lay out more the process for implementing the <br />Leaseback Provision. <br />Agreement <br />NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants <br />hereinafter set forth, the Parties agree as follows : <br />1. Factual Background. The foregoing statements of factual background are true, <br />correct and incorporated into this Lease Agreement by this reference. <br />2. Term of Agreement. The term of this Lease Agreement shall commence on the <br />Effective Date and continue through August 15 , 2038 ("Agreement Term"), unless extended by <br />modification or amendment hereto, as provided in paragraphs 8 and 13 . <br />Agreement to Lease Water <br />Between Kittitas County and Treat <br />Page 1 of 6