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I---~. I I I 1 I I I I I .~) 1 I I I I I I I I 1" '11\ , ) Ji6: _Cb1L_L~ ----~r;;ih Td' AGREEMENT This agreement, entered into this ? day of ~~~~ , 1999, between the North Fork Water Conservancy District, herein referred to as "the District": and the Fire fv'Iountain Canal and Reservoir Company, herein referred to as "Fire Mountain": is to set forth the terms and conditions under which Fire Mountain will operate and maintain the Paonia Dam and Reservoir for the District. The term of this agreement shall be one (1) year and this agreement may be renewed for subsequent one (1) year periods unless either party notifies the other party at least 30 days prior to the expiration of this agreement, or any extension thereof, of that party's intention not to renew the agreement. Under the terms of an agreement dated June 20, 1962, between the United States of America and the District, the District operates the Paonia Reservoir. Since the completion of the Reservoir, Fire Mountain has, on behalf of the District, operated the Reservoir and all appurtenant facilities. It is the intention of the parties that this relationship continue under the terms set forth herein. 1. Fire Mountain shall operate the Paonia Dam and Reservoir under the authority and direction of the District and the United States. Accordingly, Fire Mountain and its agents and/or employees shall comply with all directives (including the release of water from the capacity of the reservoir reserved to the United States), of the District and/or the United States through the District, regarding the operation and maintenance of the dam and reservoir, provided such directives are not in violation of standing contracts, standard operating procedures, or state law. No liability shall accrue to Fire Mountain, its agents or employees as a result of compliance with directives of the District or the United States through the District. 2. Fire Mountain is operating the Paonia Dam and Reservoir on behalf of the District: contractually the operation and maintenance of Paonia Dam and Reservoir and associated facilities is the responsibility of the North Fork Water Conservancy District. Fire Mountain agrees to use all due diligence, but in the event of an action that might arise as a result of negligence of any employee or contractor, the Fire lVlountain and the district hereby agree to work together in the defense of such action. 3. All actions taken bv Fire lYlountain and the District in furtherance of this agreement shall comply with all terms and conditions of the above referenced contract and with all other agreements between either of the parties and the United States of America. ... -1- )