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Form 6-AC-02A {R 5/851 UEPARl IT OR AGENCY NUMBER ( $11,000 CONTRACT vi ('eft ,3 THIS CONTRACT, made this 10th day of 'February 198 ~. by and between'the Slate of Colorado for the use' and benefit of tile Department of.1 NaturaL Resources (Colorado Water Conservation Board) , hereinafter rf'ferred to as the State, and '2 Jalisade Irriaation District. P. O. Box 266; Palisade, CO 81526, hereinafter referred to as the contraCto.r, WHEREAS, authority exists in the Law and Funds have been budgeted, appropriated and otherwise made Olvailahle and a sufficient unencumbered balance thereof remains ~i1able for payment in Fund Number 1001 , elL Account Number 5501X ,Contract Encumbr:mce Numbe i'JL.6..:J.71 :ind ABL Account Number 15010, Org. Unit 80- 0-50 , WHEREAS. ;e4uircd approval. ,clearallce and coordination has been accomplished from and with ap'propriate agencies: and . WHEREAS. the Colorado River Basin Salinity Control Act. 43 U.S.C. 1571. et gg.. (Public Law 93-320. as amended by Public Law 98-569) authorized .the Secretary of the Interior to. construct the Grand Valley Salinity Control Unit (hereinafter referred to as the "unit"); and WHEREAS. construction of Stage II of the unit will entail lining. or placing into pipe. of laterals under the canals which divert water to the Grand Valley; and WHEREAS. the Colorado River Basin Salinity Control Act. as amended. requires that the laterals thus improved be operated and maintained by non-federal ~ntities; and WHEREAS. the laterals under the Contractor's canal system are currently owned and operated by numerous private individuals or informal groups and associations; and WHEREAS. the Secretary of the Interior. acting through the United States Bureau of Reclamation (hereinafter referred to as Reclamation) is requiring that the laterals be organized into entities enabled by the laws of the State of .Colorado with which it can contract fo'r the long-term operation and maintenance of the improved laterals; and WHEREAS. the Contractor is willing to acquire the ownerShip of' the laterals under its canal system in order that it might contract with Reclamation for the long-term operation and maintenance of the improved laterals: and WHEREAS. the C~ntractor must conduct a review of its legal authorities and accounting procedures and negotiate with Reclamation a contract for the long-term operation- and maintenance of the improved laterals (said activities hereinafter being refer~ed to as "siage II activities"): .and WHEREAS. the State and Reclamation desire that the Contractor undertake certain activities and incur certain expenses' and Obligations 'preliminary to. and in order to prepare itself to conduct. Stage II ~ctivities; and WHEREAS. the State has promised to compensate and reimburse the Contractor for expenses paid or incurred in carrying out these preliminary activities: and Page f of---5....pages *(See inSlrm:liuns on reverse of last page.)