b. Convey to the Colorado Water Conservation Board, Department of
<br /> Natural Resources , State of Colorado, by warranty deed an undivided
<br /> one-half interest to the Timnath Reservoir and all water rights
<br /> appurtenant thereto, which reservoir is situated on approximately
<br /> eight hundred acres of land in portions of Sections 23 , 24 , 25 ,
<br /> and 26 , Township 7 North, Range 68 West of the Sixth Principal
<br /> Meridian, located in the County of Larimer, State of Colorado.
<br /> c . Permit periodic inspection of construction by the authorized
<br /> representatives of the State during construction and permit the
<br /> State to review and approve or disapprove any contract for the
<br /> construction of the project or the performance of work pursuant
<br /> to such contracts or subcontracts , except that this provision
<br /> shall not apply to work heretofore accomplished by the Contractor.
<br /> d. Without expense to the State , manage , operate and maintain
<br /> the project system continuously and in an efficient and economical
<br /> manner, and assume all legal and financial liability for such
<br /> management , operation and maintenance .
<br /> e . Make the services of such project available within its capacity
<br /> to all stockholders of the Contractor without discrimination as to
<br /> race , color, religion, or natural origin at reasonable charges ,
<br /> including assessments , taxes , or fees in accordance with a schedule
<br /> of such charges , whether for one or more classes of service , as may
<br /> be fe£many adopted by the Contractor through its board of directors ,
<br /> and as may be modified from time to time by the Contractor. The
<br /> initial rate schedule must be approved by the State . Thereafter,
<br /> the Contractor may make such modifications to the rate schedule as
<br /> the Contractor deems necessary to efficiently and economically
<br /> provide for the financial requirements of the system as long as
<br /> the rate schedule remains reasonable .and non-discriminatory, and
<br /> subject to the approval by the State .
<br /> f. Adjust its operating costs and service charges from time to
<br /> time to provide for adequate operation and maintenance , emergenr::y
<br /> repair services , obsolescence reserves , debt service, and debt
<br /> reserves .
<br /> g. Provide the state with such periEt
<br /> Ae o as it may require
<br /> and ermit ins ections of irt and accounts
<br /> P periodicP by
<br /> a designated representative Li the Stat.± . The Colorado Water
<br /> Conservation Board, its agents , ;a pxe , ' s rehy designated
<br /> t. '�'' rip, 1
<br /> as the agent of the State for the Okolpo . f t is ontract .
<br /> h. To purchase from the State all of the State s right , title , and
<br /> interest in said project and any facilities thereof at a total
<br /> purchase price of One Million, Five Hundred 'Twenty-Two Thousand,
<br /> Seven Hundred Twenty Dollars ($1 ,522 ,720) , payable in forty
<br /> annual installments of Thirty-Eight Thousand, Sixty-Eight Dollars
<br /> ($38 ,068) each, which first installment shall Le due and payable
<br /> on July 1 , 1979 , and yearly thereafter until the entire principal
<br /> sum shall have been paid. Said annual installment payment s'aall be
<br /> made payable to the Colorado Water Conservation Board, payable at
<br /> the offices of said Board in Denver, Colorado .
<br /> 2 . Upon default in the payments herein set forth to be made by the
<br /> Contractor, or in the performance of any covenant or agreement contained
<br /> herein, the State , at its option, may (a) declare the entire principal
<br /> amount thea outstanding immediately due and payable ; (b) for the
<br /> account of the Contractor incur and pay reasonable expenses for repair,
<br /> maintenance , and operation of the water system herein described and
<br /> such other reasonable expenses as may be necessary to cure the cause
<br /> of default ; and/or (c) take possession of the system, repair, maintain,
<br /> and operate or leas it. The provisions of this contract may be
<br /> enforced by the State , at its option without regard to prior waivers by
<br /> it of previous defaults by the Contractor through judicial proceedings
<br /> to require specific performance of this contract or by such other
<br /> proceedings in law or equity as may be deemed necessary by the State
<br /> to insure compliance with provisions of this contract and the laws
<br /> and regulations under which this contract is made .
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