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Trust Water Right Agreement
<br />ThisTrustWaterRightAgreementismadeandentered intothis{dayof ,ja,weul,K#,'rrandbetween
<br />the Washington State Department of Ecology ("Ecology") and Nelson Gelbvieh Ranch LLC, a Washington
<br />limited liability corporation ("NGR") (collectively referred to as the "Parties").
<br />l. Recitals
<br />A, WHEREAS, Ecology is the trustee of the Yakima River Basin Trust Water Right Program, as
<br />authorized under Chapters 90.38 and 90.42 RCW ("Trust");
<br />B, WHEREAS, Ecology has entered into a Water Storage and Delivery Contract with the U.S.
<br />Bureau of Reclamation to assist in managing water resources in the Yakima River Basin ("Reclamation-
<br />Ecology Contract");
<br />C. WHEREAS, NGR is the owner of certain water rights from Reecer Creek, a tributary of the
<br />Yakima River as more particularly described and confirmed under Claim07447 in the Final Decree, dated
<br />May 9, 2019, in Ecology v. Acquavella, Yakima County Superior Court Cause Na.77-2-O1,484-5, more
<br />particularly described in Exhibit A (hereinafter described as the "Mitigating Water Rights");
<br />D. WHEREAS, NGR has temporarily donated the Mitigating Water Rights to the Trust, the
<br />Parties now intend to terminate the temporary donation and convey the Mitigating Water Rights
<br />permanently to the Trust, as provided herein;
<br />E. WHEREAS, NGR has requested that Ecology hold the Mitigating Water Rights for instream
<br />flow and mitigation purposes to be used to offset or mitigate future water uses;
<br />F. WHEREAS, NGR intends to enter into a Contract for Services regarding the Sale of Water
<br />Mitigation Certificates with Kittitas County ("County") forthe Countyto market and sell water underthis
<br />Agreement to its citizens consistent with the County's water banking
<br />G. WHEREAS, subject to the terms of this Agreement, E
<br />authorized to hold the Mitigating Water Rights in Trust as provided I
<br />ll. Agreement
<br />NOW, THEREFORE, in consideration of the foregoing recitals, incorporated by reference, the mutual
<br />covenants and undertakings as hereinafter set forth, and other good and valuable consideration, the
<br />receipt of which is hereby acknowledged, Ecology and NGR hereby agree as follows:
<br />1". Purpose. The purpose of this Agreement is to allow NGR to use the Mitigating Water
<br />Rights to offset or mitigate for its own mitigated permits or for third parties as provided herein.
<br />2. Closing. NGR agrees to convey, through a Quit Claim Deed, the Mitigating Water Rights
<br />to Ecologyto be placed in Trust, in a form substantially in the form provided in Exhibit B.
<br />3. Authorizing the Use of the Mitigoting Wdter Rights. Following recording of the Quit Claim
<br />Deed, NGR may allocate the Mitigating Water Rights to provide an offset or mitigation for existing
<br />groundwater withdrawals, water budget neutral determinations or permits for surface and groundwater
<br />uses as provided herein. These uses will be mitigated or offset, in whole or in part, by way of a permanent
<br />assignment of a portion of the Mitigating Water Rights as is reasonably required to ensure no impairment
<br />to totalwater supply available in the Yakima River Basin ("TWSA") or other water rights. NGR and Ecology
<br />agree the Mitigating Water Rights can provide a senior water right as off-setting mitigation, in whole or
<br />in part for the following' t'- -1' --,, .^-
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<br />program; and
<br />:ology confirms it is willing, able and
<br />rerein.
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