Resolution_Water Certificate Contract_NelsonGelbviehRanch

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Trust Water Right Agreement ', 21 This Trust Water Right Agreement is made and entered into thisA',r day ofIhL 29311, by and between the Washington State Department of Ecology ("Ecology") and Nelson Gelbvieh Ranch LLC, a Washington limited liability corporation ("NGR") (collectively referred to as the "Parties"). I. Recitals A. WHEREAS, Ecology is the trustee of the Yakima River Basin Trust Water Right Program, as authorized under Chapters 90.38 and 90.42 RCW ("Trust"); B. WHEREAS, Ecology has entered into a Water Storage and Delivery Contract with the U.S. Bureau of Reclamation to assist in managing water resources in the Yakima River Basin ("Reclamation - Ecology Contract"); C. WHEREAS, NGR is the owner of certain water rights from Reecer Creek, a tributary of the Yakima River as more particularly described and confirmed under Claim 01447 in the Final Decree, dated May 9, 2019, in Ecology v. Acquavella, Yakima County Superior Court Cause No. 77-2-01484-5, more particularly described in Exhibit A (hereinafter described as the "Mitigating Water Rights"); D. WHEREAS, NGR has temporarily donated the Mitigating Water Rights to the Trust, the Parties now intend to terminate the temporary donation and convey the Mitigating Water Rights permanently to the Trust, as provided herein; E. WHEREAS, NGR has requested that Ecology hold the Mitigating Water Rights for instream flow and mitigation purposes to be used to offset or mitigate future water uses; F. WHEREAS, NGR intends to enter into a Contract for Services regarding the Sale of Water Mitigation Certificates with Kittitas County ("County") for the County to market and sell water under this Agreement to its citizens consistent with the County's water bankinj program; and G. WHEREAS, subject to the terms of this Agreement, E --ology confirms it is willing, able and authorized to hold the Mitigating Water Rights in Trust as provided I erein. ll. Agreement NOW, THEREFORE, in consideration of the foregoing recitals, incorporated by reference, the mutual covenants and undertakings as hereinafter set forth, and other good and valuable consideration, the receipt of which is hereby acknowledged, Ecology and NGR hereby agree as follows: 1. Purpose. The purpose of this Agreement is to allow NGR to use the Mitigating Water Rights to offset or mitigate for its own mitigated permits or for third parties as provided herein. 2. Closing. NGR agrees to convey, through a Quit Claim Deed, the Mitigating Water Rights to Ecology to be placed in Trust, in a form substantially in the form provided in Exhibit B. 3. Authorizing the Use of the Mitigating Water Rights. Following recording of the Quit Claim Deed, NGR may allocate the Mitigating Water Rights to provide an offset or mitigation for existing groundwater withdrawals, water budget neutral determinations or permits for surface and groundwater uses as provided herein. These uses will be mitigated or offset, in whole or in part, by way of a permanent assignment of a portion of the Mitigating Water Rights as is reasonably required to ensure no impairment to total water supply available in the Yakima River Basin ("TWSA") or other water rights. NGR and Ecology agree the Mitigating Water Rights can provide a senior water right as off -setting mitigation, in whole or in part for the following: F — -