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<br />.,- <br /> <br />. <br /> <br />. <br /> <br />J~~~~lt~ <br /> <br />,!) <br /> <br />BOYLE ENGINEERING <br />CORPORATE <br /> <br />SOLlie EnQineerlnQ Corporation <br /> <br />1507 Quail Street <br />P.O. BOl( i350 <br />,'Vewporr Beach. California 92660 <br /> <br />consultlnQ enQlneers I arcnltects <br /> <br />(714) 476-3400' <br />Telex 68.5561 <br /> <br />Dr. Jeris Danielson <br />state Engineer <br />Office of the state Engineer <br />Division of Water Resources <br />1313 Sherman Street, Room 818 <br />Denver, Colorado 80203 <br /> <br />May 22, 1986 <br /> <br />RE: Arkansas River Compact Litigation - Professional services <br />Contract <br /> <br />Dear Jeris: <br /> <br />At our initial meeting with your deputy, Mr. Hal Simpson, we <br />provided him with a copy of Boyle's agreement with the State for <br />professional services in connection with reserved Indian water <br />rights claims (Ute Indian Reservation). We indicated that the <br />indemnification provisions that were incorporated in this <br />agreement might be used as a guideline for our work on the <br />Arkansas River assignment since the provisions had been approved <br />by the Attorney General. We subsequently learned that the State <br />is now insistinq on a broad indemnification which is not limited <br />to the consultant's neqliqent acts. Our in-house attorney, Ms. <br />Susan Menkes, contacted Barry stein at the Attorney General's <br />office to discuss the new indemnification requirement and he <br />indicated there was no flexibility in modifying the State's <br />position. I am writing you with the hope that this matter can <br />be elevated to the personal attention of the Attorney General <br />and that the indemnification provision negotiated in Boyle's <br />prior agreements with the State might be incorporated into our <br />contract with your office for our work on the Arkansas River <br />assignment. The rationale for Boyle's position on contractual <br />indemnification requirements which, incidentally, is <br />consistent with that of all professional service firms <br />(engineers, lawyers, etc.) is summarized for your <br />consideration in this letter. <br /> <br />First, all of our professional and general liability insurance <br />coverage is based upon negligence. The indemnitv provisions <br />bevond neqliqence are uninsurable. Furthermore, by signing such <br />an indemnification provision insisted upon by the State, we will <br />jeopardize our liability coverage. This is due to the fact that <br />in order to renew coverage, we must represent to our carriers <br />that we do not agree to indemnifications in our contracts that <br />extend beyond negligence. By acknowledging that we have signed <br />a broad indemnification provision with the State of Colorado, we <br />