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<br />WHEREAS. the Act specifies that the Secretary may fund <br />non-federal entities to organize lateral owners into <br />organizations with which Reclamation may contract for the <br />long-term operation and maintenance of improved laterals; and <br /> <br />WHEREAS. Reclamation has made a $197.436 grant available to <br />the State. acting through the Board. pursuant to the Act in <br />order that the State might compensate and reimburse the <br />Contractor for carrying out Stage II activities; and <br /> <br />WHEREAS. the State acting through the Board, has the <br />authority. pursuant to section 37-60-106. Colorado Revised <br />Statutes. to foster. encourage. and assist local irrigation <br />entities: and <br /> <br />WHEREAS. the Board is the lead agency for the State's <br />participation in the Colorado River Basin salinity control <br />program. <br /> <br />NOW. THEREFORE. in c~n6ideration of the mutual promises set <br /> <br /> <br />forth below. the State and the Contractor agree as follows: <br /> <br />1. Staqe II Activities. The Contractor shall undertake <br />and complete the following tasks: <br /> <br />a. Conduct a legal review of the statutory <br />authorities under which it is organized and of its <br />bylaws. articles of incorporation. or other <br />pertinent organizational documents in order to <br />determine whether it currently has the legal <br />authority and power to acquire such real property <br />interests in the laterals under its system and to <br />do such other things as will enable it to contract <br />for the construction and long-term operation and <br />maintenance of the improved laterals. This legal <br /> <br />Page 2 of 10 Pages <br />