HERMOSA WATER USER ASSOCIATION

WATER USER AGREEMENT

(Association assumes lines)

This agreement is made and entered into by and between Hermosa Water User
Association, a South Dakota nonprofit corporation, hereinafter called the "Association",
and

Member (s) of the Association hereinafter called "Member".

Whereas, the Member desires to purchase water from the Association and to enter into a
water users agreement as required by the BY-LAWS of the Association; now therefore,
in consideration of the mutual covenants, promises and agreements herein contained, it is
herby understood and agreed by the parties hereto as follows:

1. The Association shall furnish, subject to the limitations set out in its BY-LAWS
and the rules and regulations now in force or hereafter adopted, such quantity of
water which is available and is desired by the Member at the locations on the
Member's property as provided by the Plans and Specifications dated April 27,
1979, and entitled Hermosa Water User Rural Water System, hereinafter called
the "Plans".
2. The Member shall install and maintain at his own expense such service lines as
the Member may require to connect with the distribution system of the
Association. After one (1) year of continuous service the Association may
assume ownership and maintenance of the line.
3. The Member agrees to comply with and be bound by the Articles of
Incorporation, The BY-LAWS, and the rules and regulations of the Association
now in force or hereafter duly adopted or amended.
4. The Member agrees to pay for water at such rates and at such time and place as
shall be determined by the Association, and agrees to the imposition of such
penalties for noncompliance as are now set out in the BY-LAWS and the rules
and regulations of the Association, or which may be hereafter adopted and
imposed by the Association.
5. The Association shall have exclusive control in regard to the cutoff valve and
water meter.
6. The Association shall have final authority in regard to the location of the
residential meter pits, but the Association agrees to comply with the Member's
suggested location of the meter pit for his residence if reasonably possible.
7. In the event the total water supply shall be insufficient to meet all of the needs of
the Members, the Association may prorate or restrict the use of the water
available among the various Members on such basis as is deemed equitable by the
board of directors of the Association.