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<br />non-federal entities I costs of operation and maintenance to the <br /> <br /> <br />extent that such costs exceed the expenses which would have <br /> <br /> <br />been incurred absent the unitls construction; and <br /> <br />WHEREAS. the Contractor is an irrigation district organized <br />pursuant to articles 41. 42, and/or 43 of title 37. Colorado <br />Revised Statutes. which furnishes irrigation water to its users <br />through headgates on its main canal(s). such water thereafter <br />flowing through a system of private laterals which are <br />currently owned and operated by numerous private individuals or <br />informal groups and associations; and <br /> <br />WHEREAS. the Secretary. acting through the United States <br />Bureau of Reclamation (Reclamation). is requiring that the <br />laterals be organized into entities enabled by the laws of the <br />State of Colorado with which it can contract for the long-term <br />operation and maintenance of the improved laterals; and <br /> <br />WHEREAS. the State. acting through the COlorado Water <br />Conservation Board (Board), has SOlicited the Contractor to be. <br />and the Contractor is willing to become.. the non-federal entity <br />which will acquire such real property interests in the laterals <br />under its canal system as will enable it to contract with <br />ReClamation for the long-term operation and maintenance of the <br />improved laterals; and <br /> <br />WHEREAS. the Contractor must first conduct a review of its <br />legal authorities and accounting procedures and negotiate with <br />ReClamation a contract(s) "as to formll for the long-term <br />operation and maintenance of the improved laterals (said <br />activities hereinafter being referred to as IIStage 11 <br />activitiesll); and <br /> <br />WHEREAS. the State and Reclamation desire that the <br />Contractor undertake these Stage II activities; and <br /> <br />Page ~ of 10 Pages <br />