Resolution_Water Certificate Contract_NelsonGelbviehRanch

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3.1. To mitigate for NGR's own water use, including on formerly appurtenant property after following the process specified in Section 4 of this Agreement. 3.2. To mitigate for third parry water uses in Reecer Creek in accordance with the suitability depicted on Exhibit C, up to 5.65 acre-feet of annual new water uses. 3.3. To mitigate for third party water uses within the Yakima River basin in accordance with the suitability depicted in Exhibit D, attached hereto and incorporated herein and according to the process specified in Section 4 of this Agreement. 4. Process for Allocations of the Mitigating Water Rights 4.1. NGR may enter into a contract with the County to market and sell the Mitigating Water Rights to mitigate for existing groundwater withdrawals water budget neutral determinations, permits or leases as provided herein. NGR and the County will report the use of the mitigating water rights in accordance with the agreements between the County and Ecology. 4.2. NGR may propose or enter into contracts with other third parties to provide a portion of the Mitigating Water Rights as mitigation for water budget neutral determinations, permits or leases on such terms consistent with this Agreement as NGR may elect. The Parties will continue to work in good faith to refine the suitability in accordance with Chapters 90.03, 90.38, 90.42 and 90.44 RCW. Ecology will process each new application or modification to an existing mitigation program administered by a local government, utilizing such portion of the Mitigating Water Rights, as reasonably needed, together with any other proposed mitigation measures, to address the impacts of the proposed use. 4.2.1. If necessary or appropriate, Ecology will present the proposed use of the Mitigating Water Rights to the Water Transfer Working Group ("WTWG"). Ecology, in consultation with the U.S. Bureau of Reclamation, will determine if some or all of the Mitigating Water Rights will be assigned to the Reclamation -Ecology Contract. NGR will ensure that any fees associated with the Reclamation -Ecology Contract for the Mitigating Water Rights are paid to Ecology. 4.2.2. Ecology will investigate the proposed use of the Mitigating Water Rights and recommend issuance or denial of the use based on applicable policy, rules, and law. 4.2.3. If Ecology approves the proposed use of the Mitigating Water Rights for a local government, Ecology, NGR and the local government will work in good faith to complete the process necessary for the new use. 4.2.4. If Ecology approves the proposed use of the Mitigating Water Rights for a non -local government third party, NGR shall cause an escrow account to be opened upon the execution of an agreement between NGR and the third -party. Closing of the escrow shall not occur until the following events have been completed: (1) mutual execution of all agreements and documents contemplated by or collateral to this Agreement; (2) NGR's deposit of an executed document in a form acceptable to Ecology permanently allocating a portion of the then available Mitigating Water Rights to the proposed use; (3) completion of all required public notices; (4) expiration of all notice, comment and appeal periods related to Ecology's authorizations; (5) deposit of all funds, documents and things relevant to close; and (6) participation in Kittitas County's metering program, if the new use is in Kittitas County.