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III. DISTRIBUTION OF PROGRAM ASSETS AND ESA CREDITS FOLLOWING <br />PROGRAM TERMINATI4N OR SIGNATORY WITHDRAWAL <br />A. Principles Governing Dissolntion of the Program <br />Consistent with section II.E. of tiie Program Agreement, if the Secretary of the Interior and the <br />Governors of Colorado, Nebraska and Wyoming decide to dissolve the Program before the end <br />of the First Increment or to not pursue a second increment of the Program, or if the Program is <br />dissolved as the result of a signatory's withdrawal, the Program Governance Committee is <br />dissolved and the signatories agree to form a signatory committee to satisfy the signatories' <br />existing legal obligations under contracts and arrange for disposition of Frogram Assets. Other <br />members of the Program Governance Committee may be invited to advise signatories in that <br />regard. In the event that any signatory is unable or unwilling, following a decision to dissolve <br />the Program, to continue to participate on such signatory committee, the remaining signatories <br />shall be fully empowered to make such decisions and take such actions as are necessary to meet <br />the signatories' legal obligations under the contracts with the Financial Management Entity <br />(FME) and the Land Holding Entity (LHE) and properly dispose of Program Assets. <br />1. The signatory committee will remain functional until such time as the signatories' <br />legal obligations under existing contracts and agreements are met and the disposition of <br />Program Assets is resolved, including any outstanding payments due and payable to a <br />"Water Project Sponsor" or "Sponsors of Program Lands." Until an asset is no longer the <br />responsibility of the signatories, the signatories agree to ensure that FME will continue to <br />pay property taxes and retain liability insurance. The signatories agree to manage the <br />property in compliance with the "good neighbor" policy. <br />2. A signatory or a partnership of signatories may wish to purchase the shares in the <br />Program Assets of any signatary or signatories wishing to sell, under the condition that <br />the Frogram Assets will continue to be managed to provide habitat for the target species. <br />If this occurs, the signatory committee will have the FME acquire the services of an <br />independent appraiser to complete an appraisal of the Program Assets. The appraisal will <br />be based on the continued use of the Program Asset to provide habitat to the target <br />species. If the Program Governance Committee had previously established the appraised <br />value or a method for determining the appraised value of a particular Program Asset in <br />the event of Program dissolution, that value or method shall be used. The signatory or <br />partnership of signatories may purchase the shares of the selling signatories at a price <br />equal to the respective selling signatories' share of the Program Assets times the <br />appraised value of the Program Assets. If the purchased Program Assets are land, those <br />lands will be held by the Land Holding Entity or a successor selected by the purchaser <br />and approved by the signatory committee as a condition of the sale. (A signatory state <br />may offer to donate its interest in a Program Asset to another signatory or partnership of <br />signatories and seek ESA credit from FWS in future reinitiated consultations in that state <br />for the continuing benefits provided to the target species as a result of the donation.) <br />3. If none of the signatories are interested in acquiring Program Assets as described <br />in Section III.A.2 above, the signatory committee will entertain offers from water user