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.. . , r 99 20773G 2 NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions of this Agreement, the parties hereby agreed as follows: 1 . Bindina. The parties agree that this Agreement shall run with the land owned by Gloe, and be binding upon the heirs, successors and assigns, and future owners of the real property owned by Gloe, as legally described above, in perpetuity. 2 . Location of Citv's Well.. City's municipal supply wells are planned to be located on real estate legally described as follows: The Northeast Quarter of Section 18, Township 9 North, Range 11 West of the 6th P.M. , Hall County, Nebraska City agrees to site its municipal wells, 98-1, 98-2, and 98-3 in the location shown on the wellfield map prepared by Olsson Associates and provided to DWR in support of City's Applications . The parties anticipate City's wells will be located within one ( 1 ) mile of the Gloe registered irriqation wells, Nos . G-7261, G-7264, and G-38731 and the possible unregistered irrigation well (hereinafter collectively "Gloe wells" ) . If for any reason City does not locate its wells in the anticipated location, or in another location within one mile of the Gloe wells, then this Agreement shall be null and void. 3. Well Restriction. In consideration of Gloe's withdrawal from DWR of their Objection to City's Applications and upon Gloe's submission to City of verifiable proof, using standard principles of hydrology and geohydrology generally accepted and applied by qualified hydrologists or geohydrologists, that the operation by City of any one or any combination of its municipal water supply wells has had an actual, material and disproportionate adverse effect on the usage of the Gloe wells, or their replacements, as defined in Neb. Rev. Stat. §46-602 (3) ( 1998 Reissue) , for irrigation, stock water, or domestic purposes, including any reduction in the amount of withdrawal, rate of withdrawal and time of withdrawal, City agrees to reduce its demand on its municipal water supply wells during the time periods when the operation of the municipal water supply wells have been determined to have an actual, material and disproportionate adverse impact on the Gloe wells. Actual material and disproportionate adverse effect shall mean any effect which is not proportionate to the sharing, in times of shortage, of groundwater between the Gloes wells and the City's municipal water supply wells under Nebraska's correlative rights doctrine. The reduction of demand by City shall be made in phases until the impact has been reduced to the level which reflects Gloe's and City's proportionate share of the shortage as follows: