Water Supply Agreement

Indian Trails Water LLC · version dated October 13, 2026

1. Who this agreement is between

Indian Trails Water LLC ("ITW"), PO Box 112, South Fork, Colorado 81154, indiantrailswater@gmail.com, owns and operates the water system that serves the Indian Trails community in South Fork, Colorado (the "System"). "You" means every owner of a property connected to the System (the "Property"). Where a Property has more than one owner, each owner is responsible for everything this agreement requires, in full.

2. How you accept it

ITW sends this agreement to every owner by email or mail and also posts it at indiantrailswater.com. Taking water from the System, or paying any ITW bill, after this agreement has been sent to you is your acceptance of it. No signature is needed. You are bound for as long as you own a Property connected to the System.

3. Term

The billing year runs from July 1 to June 30. This agreement renews every July 1 without further action. The water service for a billing year is deemed delivered, and the yearly charge for that year is earned in full, when this agreement takes effect for you and at each renewal on July 1.

4. Changes to this agreement

ITW may change the terms of this agreement by sending you the changed agreement. A change takes effect on the date stated in the notice, which will be at least 30 days after it is sent. Taking water or paying a bill after that date is your acceptance of the change. Rates and fees change only as section 12 provides.

5. The service

ITW delivers drinking water to the curb stop at the Property line (the "Point of Delivery"). ITW owns and maintains the System up to and including the curb stop. Everything beyond the curb stop is yours to install, maintain and repair at your cost, including the service line, any trenching, and any backflow device.

6. Supply is not guaranteed

Water may be interrupted, reduced or shut down at any time for repairs, drought, power loss, equipment failure, the orders of a public authority, or any other cause. ITW does not promise an uninterrupted supply, any particular pressure, or any particular quantity.

7. How you may use the water

Water is for ordinary household use at the Property. You may not supply water to any other person or property, connect the System to any other water source, or let anyone else do so, without ITW's written consent, which ITW may refuse for any reason. ITW may limit or prohibit outdoor watering and other non-household uses by giving notice, and you must comply from the date in the notice.

8. Meters

No Property is metered today. ITW may install a meter on any Property at any time. After giving written notice, ITW may (a) from the next July 1, bill that Property by the water it uses, at the metered rate in the Rate and Fee Schedule, in place of the yearly charge; and (b) from 30 days after the notice, bill any water used beyond ordinary household use, as measured by the meter, at the metered rate, in addition to the yearly charge.

9. ITW's equipment and access

Only ITW may open, close, operate or alter the curb stop or any other part of the System. You must not tamper with, obstruct, bury or build over any part of the System. You allow ITW and its contractors to enter the Property at reasonable times, and at any time in an emergency, to inspect, read, test, repair, replace, shut off or restore any part of the System, and to check that this agreement is being followed.

10. Backflow and cross-connections

If ITW gives you written notice that a backflow prevention device is required at the Property, you must, at your cost, install the device ITW specifies within 120 days, have it tested when installed and once every year by a certified tester, and send ITW each test report. You must tell ITW at once if you suspect water has flowed back into the System from the Property.

11. Your rate category

Each billing year ITW assigns each Property to one of the categories below, using its own judgment and the information it has, including local short-term rental registrations and rental listings. The descriptions are guides, and ITW's assignment is final.

Short-Term Rental Property: a Property registered as a short-term rental with the town or county, or offered or used for short-term rental at any time in the billing year. This category applies whatever else is true of the Property and carries the highest yearly charge, because rental occupancy uses far more water than a household does.
Full-Time Resident: a Property occupied 180 days or more in the year.
Part-Time Resident: a Property occupied seasonally, about 90 days and less than 180 days in the year.
Day-Use Resident: a Property used only for occasional short stays, well under 90 days in the year.

You must tell ITW in writing within 30 days of any change in how the Property is used, including the start of short-term rental. If the category should have been different, ITW may bill the difference from the date the use changed.

12. Rates and fees

ITW sets the yearly charge for each category once a year and states it on the yearly bill. Other fees are listed in ITW's Rate and Fee Schedule, which is part of this agreement; ITW may set or change them for a coming billing year by stating them with the yearly bill, and sets the new connection fee and the metered rate in writing before charging them. ITW may also add a surcharge during a billing year, on 30 days' written notice, to meet extraordinary repair or regulatory costs.

13. Paying your bill

The yearly charge is due on July 1. You may instead choose the installment plan: an installment plan fee of $50 is added, and the total is paid in four equal installments due July 1, October 1, January 1 and April 1. You choose the installment plan by making a first payment of less than 90% of the yearly charge. If that first payment is less than the first installment, the rest of the first installment is overdue from July 1. The fee is not charged if your first payment is at least 90% of the yearly charge, whenever that payment is made; any remainder stays due. A bill is treated as received when delivered or emailed to you, or three days after it is mailed.

14. Late payment

If any amount is not received within 30 days after its due date, a late fee of $50 is added to your account. The late fee is charged no more than once in a billing year. Any amount still unpaid 30 days after its due date also bears interest at 8% per year, compounded annually, calculated from its due date until it is paid. You may not withhold or reduce a payment because of any claim you have against ITW.

15. Questions about a bill

If you believe a bill is wrong, you must tell ITW in writing within 30 days after the bill is sent. After that the bill is final.

16. Collection

If any amount is not paid when due, you must pay ITW's reasonable costs of collecting it, including reasonable attorney fees and court costs, whether or not a lawsuit is filed.

17. Shutting off service for non-payment

If any amount is more than 30 days past due, ITW may shut off water to the Property after mailing you a written notice at least 15 days beforehand. The notice will state the amount owed and the date by which it must be paid.

18. Shutting off service without notice

ITW may shut off water to the Property immediately and without notice if ITW believes there is contamination or a risk of it, a backflow or cross-connection hazard, tampering with the System, unauthorized use or connection, a leak or waste of water on the Property, an emergency, or an order of a public authority. ITW may also shut off water, after 15 days' mailed notice, for any other failure to follow this agreement, including failure to install or test a backflow device or to obey a watering restriction.

19. Getting service back

Water is restored after a shutoff only when (a) you have paid everything you owe ITW and a reconnection fee equal to the greater of $150 or ITW's actual cost of shutting off and restoring service, and (b) the cause of the shutoff has been corrected to ITW's satisfaction, including any inspection, repair or test ITW requires. Payment alone does not entitle you to restoration.

20. Unauthorized reconnection

When water to a Property has been shut off, no one but ITW may turn it back on. If water is restored, or anyone attempts to restore it, without ITW's written authorization, ITW may shut it off again immediately and without notice and may lock, disable or remove the connection. Before water is restored you must pay, in addition to everything required by section 19: an unauthorized reconnection charge equal to the greater of $300 or ITW's actual cost of responding to the unauthorized reconnection, and separately the cost of repairing any damage. ITW may report the matter to law enforcement.

21. Selling the Property

The owner of the Property on July 1 owes ITW the yearly charge for that billing year. You must give ITW written notice of a sale before closing. Every unpaid amount, including installments not yet due, becomes due at closing. For the settlement statement, ITW will give the closing agent a statement of every amount unpaid for the Property, the yearly charge, the amounts paid, and a division of the charge between seller and buyer by the number of days each owns the Property in the billing year; any adjustment between seller and buyer is made between them at closing. ITW does not refund any part of a yearly charge. The seller remains responsible to ITW for every amount that came due before closing. Charges are for service to the Property: any amount left unpaid at closing remains owing for the Property, the buyer agrees to pay it by accepting this agreement, and ITW may collect it from the seller, the buyer or both. ITW may decline to provide water to the Property for a new owner until every amount unpaid for the Property has been paid, and may shut off water for that reason after mailing the new owner 15 days' written notice. ITW sends this agreement to the buyer, who is bound by it from the first use of water or payment after it is sent.

22. Limits on ITW's responsibility

Each of the following applies separately, and each applies to the fullest extent permitted by law. (a) ITW does not guarantee the supply, pressure or quantity of water, and is not liable for any loss, damage, cost or injury arising from an interruption, reduction, pressure change or shutoff. (b) ITW is not liable for any loss, damage, cost or injury arising from the supply or quality of water. (c) ITW is not liable for indirect or consequential losses, including lost rental income. (d) If ITW is liable to you, the total it must pay is limited to your yearly charge for the billing year in which the claim arose. If any one of these limits is not enforced, the others still apply.

23. Your responsibility

You are responsible for, and must reimburse ITW for, any loss, damage or cost ITW suffers because of anything done or not done at the Property by you, your tenants, guests or contractors, including tampering, an unauthorized connection, a leak beyond the curb stop, or a missing, failed or untested backflow device.

24. Regulation

ITW is a private water company. If a public authority has or takes jurisdiction over ITW's rates or service, its rules control wherever they differ from this agreement, and the rest of this agreement stays in force.

25. Notices

ITW may give you any notice, bill or statement by email or by mail at the address ITW has on file for you, and you agree to receive them that way. A shutoff notice under section 17, 18 or 21 is always mailed. A notice is given when it is emailed or, if mailed, three days after mailing. You must keep your email address, mailing address and phone number current with ITW. You agree that ITW may contact you by email, telephone call and text message at the addresses and numbers you provide, about your account and about service interruptions. Notices to ITW must be in writing to the address or email in section 1.

26. General

This agreement is governed by Colorado law, and any lawsuit about it must be brought in Rio Grande County, Colorado. ITW may transfer this agreement to anyone who takes over the System; you may not transfer it except to a buyer of the Property. If a court finds any part of this agreement unenforceable, that part is to be enforced as far as the law allows and the rest stays in force. ITW's not enforcing a term on one occasion does not give up its right to enforce it later. This agreement and the Rate and Fee Schedule are the whole agreement between you and ITW and replace every earlier version. This agreement adds to, and does not replace, any easement or other right ITW already holds over the Property.

Rate and Fee Schedule

Part of this agreement. Amounts for the billing year are stated on the yearly bill.

Yearly charge by category: Full-Time Resident, Part-Time Resident, Day-Use Resident, Short-Term Rental Property.
Installment plan fee: $50 per billing year, only when the installment plan is chosen.
Late fee: $50, no more than once per billing year.
Interest on overdue amounts: 8% per year, compounded annually.
Reconnection fee: the greater of $150 or ITW's actual cost.
Unauthorized reconnection charge: the greater of $300 or ITW's actual cost.
New connection (tap) fee and metered rate: as set by ITW and stated in writing before they are charged.