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00 ,-;) 0) ,~.; <..:":"'i C--, .-' 2. Operate the Platoro Irrigation Project and estab- lish fees for water use or storage use such that annual revenue will be reasonably expected to serve the required annual payments and operating and maintenance costs on a reliable basis over the repayment period. Without expense to the state, the Borrower will manage, operate, and maintain the project continuously in an efficient and economical manner, and assume all legal liability ,for such management, operation and maintenance. The Borrower agrees to indemnify and hold the state harmless from any liabi- lity as a result of the state's financing of the project. The Borrower shall maintain general liability insurance covering the management, operation, and maintenance of the project until it completes repayment to the state in at least the following amounts: a. For any injury to one person in any single occurrence the sum of Fifty Thousand Dollars ($50,000). b. For any injury to any two or more persons in any single occurrence, the sum of Five Hundred Thousand Dollars ($500,000). Said liability insurance shall name the state as a co-insured. A copy of a certificate of said liability insurance' must be filed with the Colorado Water Conservation Board prior to the start of the operation of the project system. 3. Obtain and maintain an agreement satisfactory to the State Engineer for the state's use of the reservoir for compact purposes. Such agreement shall be incorporated herein by reference. 4. Make the services of said project available within its capacity to all persons in the Borrower's service area without discrimination as to race, color, religion, or natural origin at reasonable charges (including assessments, taxes, or fees), whether for one or more classes of service, in accordance with a schedule of such charges formally adopted by the Borrower through its board of directors, as may be modified from time to time. The initial rate schedule must be approved by the state. Thereafter, the Borrower may make such modifications to the rate schedule as the Borrower deems necessary to efficiently and economically provide for the financial requirements of the system as long as the rate schedule remains reasonable and non- discriminatory. 5. Provide the state with such periodic reports as the state may require and permit periodic inspections of its operations and accounts by a designated representative of the state. 6. Obtain and maintain general fire and hazard insurance on the project in an amount not less than the out- standing amount of the loan made by the state to the Borrower -3-