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<br /> b. Water delivered through the Pipeline shall only be beneficially used, whether the use is by
<br /> direct diversion, by exchange or otherwise, in accordance with the terms of this Contract; the
<br /> Water Conservancy Act of Colorado, C.R.S. §§ 37-45-101 et seq., § 37-83-106; the rules,
<br /> regulations and policies of the Board; and the Colorado-Big Thompson Project Repayment Contract
<br /> between the District and the United States of America dated July 5, 1938, if applicable, or
<br /> as otherwise allowed with the Board's consent.
<br /> 4. SWSP Enterprise Ownership, Operation and Maintenance.
<br /> a. The SWSP Enterprise shall own, construct, operate, maintain, replace and repair the Pipeline,
<br /> subject to the Allottee's perpetual, vested right to possession of that portion of the capacity
<br /> of the Pipeline allocated herein. To this end the SWSP Enterprise shall be responsible for
<br /> all planning, scheduling, right-of-way acquisition, construction and engineering contracts
<br /> relating to the Pipeline; any required permits, impact statements and other procedural or
<br /> substantive matters necessary for completion of the Pipeline; and all operation, maintenance,
<br /> and replacement of the Pipeline.
<br /> b. The SWSP Enterprise covenants to prudently design, construct, operate, maintain, repair and
<br /> replace the Pipeline in good faith for the benefit of the Allottee and the other Participants.
<br /> SWSP Enterprise acknowledges that Allottee is relying upon this covenant of SWSP Enterprise
<br /> in executing this Contract and in making payment of all amounts due hereunder. SWSP Enterprise
<br /> and the Allottee agree that non-performance by SWSP Enterprise of its obligations to design,
<br /> construct, operate, maintain, repair and replace the Pipeline shall result in damages to
<br /> Allottee which will be difficult to calculate and for 4. , -'e -_ma not be an adequate
<br /> remedy at law. Therefore, SWSP Enterprise and Allottee a•`:;~ 4 s.' o,'t the Participants
<br /> have provided SWSP Enterprise adequate funds to design, c• 2119!'' �+e." aintain, repair
<br /> and replace the Pipeline under this Contract >x , t.- event of N . ormance by SWSP
<br /> Enterprise, Allottee shall have the right to a • ,- . spy? ormance to require SWSP
<br /> Enterprise to perform its obligations as set fo ht-.-in h ; • ,* • •# •es, or both.
<br /> The SWSP Enterprise's financial obligations to design, c• ru •+e e .intain, repair
<br /> and replace the Pipeline under this Contract shall be payable solelo` _' { :. a assets and
<br /> revenues of the SWSP Enterprise; provided, however, SWSP Enterprise shall be liable for its
<br /> negligence or gross negligence. The Allottee does not waive any right of action that it may
<br /> have against the SWSP Enterprise or the District for liability arising from tort, subject and
<br /> pursuant to applicable law. In no event shall the SWSP Enterprise be required to expend any
<br /> money from taxes which is in violation of Section 20(4) of Article X of the Colorado
<br /> Constitution in the performance of its obligations under this Contract or which would cause
<br /> SWSP Enterprise to lose its enterprise status as such status is defined in the Colorado
<br /> Constitution.
<br /> c. The SWSP Enterprise warrants and represents that the District has the lawful and physical
<br /> 1 ability to construct, operate, maintain and utilize the Carter Lake Dam No. 1 Outlet Works and
<br /> the St. Vrain Supply Canal, and any other federal facilities owned by the U. S. Bureau of
<br /> Reclamation (collectively the "Federal Facilities") for the purpose of delivering water from
<br /> the Carter Lake Dam No. 1 Outlet Works through the Carter Lake to Broomfield Pipeline at the
<br /> capacities allotted to the participants in that pipeline subject and pursuant to the Repayment
<br /> Contract dated July 5, 1938, between the District and the U.S. Bureau of Reclamation, as
<br /> amended, and the Special Use Permit Contract No. 2-LM-60-L2308, issued to the District by the
<br /> U.S. Bureau of Reclamation. The SWSP Enterprise covenants that it shall comply with all terms
<br /> and conditions of said Special Use Permit and maintain it in full force and effect throughout
<br /> its term, and it shall successively apply for the issuance of new permits, if necessary, in
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