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3. Requi r~ the Soil Conserv a t ion Serv ice to indemn i fy the State against all liahility and loss, and against all claim~ an.l actions hased upon or arising out of damage or injury, incluc]ing death, to persons or property caused by or sustained in connection with the performance of the Project Agreement or by conditions created thereby, or based upon any violation of any statute, ordinance, or regulation, and the defense of any such claims or actions. 4. Require the Soil Conservation Service to insure the firm{s) that construct Phase II of the project maintain liabflity insurance in at least the following amounts: a. For any injury to one person in any single occurrence, the sum of One Hundred Fifty 'l'housand Oollars ($150,000), b. For any injury to two or more persons in any single occurrence, the sum of Four Hundred Thousand Dollars ($400,000) . 5aio liability insurance shall name the Contractor ann the State as co-insureds. No payments shall be made under this contract unless a copy of a certificate of said liability insurance has been filed with the Colorado Water Conservation Boarc'3. 5. Conveyor cause title to be conveyed by warranty deed to the Colorado water Conservation Board, Department of Natural Resources, State of Colorado, the following portions of the proposed project facilities within thirty (30) days of their completion: An undivided one-half interest in lands, easements and/or rights-of-way requi red for the cons truct ion of Sedgwick-Sand Draws Watershed Project. All as shown in Appendices A, B, and C. 6. Permit periodic inspection of construction by authorized representatives of the State during and after construction. 7. Without expense to the State, manage, operate, and, maintain the project system continuously in an efficient and economical manner, and assume all legal liability for such management, operation, and maintenance. The Contractor agrees to indemnify and hold the State harmless from any liability as a result of the State1s ownership of the project facilities identifierl in paragraph 5 above. The Contractor shall maintain general liability insurance covering the management, operation, and maintenance of the project system until it has completed purchase of the project system from the State in at least the following amounts: a. For any inj ury to one person in any single occurrence, the sum of Olle Hundred Fifty Thousand Oollars ($150,000). b. For any injury to two or more perspns in any single occurrence, the sum of Pour Hundred Thousand Dollars ($400,000) , Said liability insurance shall name the State as a co-insured. A copy of a certificate of said liability insurance must be filed with the Colorado Water Conservation Board prior to the sta'rt of the operation of the project system. B. Make the services of said project available within its capacity to all persons in the Contractor's service area without discrimination as to race, color, religion, or natural origin al.: reasonahle charges including assessments, taxes, or fees in accocdance with a schedule of such charges, whether for one or Page 2 of 6 Pages