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<br />2. Conveyor cause title to be conveyed by deed or othe~ proper
<br />conveyance to the Colorado Water Conservatio~ Board, Department of
<br />Natural Pesourc€:s, State of Colorado, the fol-lowing portions. of the
<br />proposed project facilities:
<br />
<br />a. A 12,030 foot concrete-lined section, having an average
<br />bottom width of 4 feet, of the Sangre de Cristo-Trinchera
<br />Diversion Canal, with all necessary appurtenances.
<br />
<br />b. A 5,940 "foot concrete-lined section, having an average
<br />bottom width of "1 foot, of the Labato Lateral and th~ Labato"
<br />Extansion, with all necessary appurtenances.
<br />
<br />c."" A 1,104 foot concrete-"lined section, having an average
<br />bottom width of 1 foot, of the Whitehead-Escheman Lateral,
<br />with all necessary appurtenances.
<br />
<br />d. A 6,600 foot concrete-lined section, having an average
<br />bottom width- of 2 feet, of the Bean Lateral and the Middle
<br />Bean Later~l, with all necessary appurten~nces.
<br />
<br />e. An 8,077 foot concrete-lined section, having an average
<br />bottom width of 2 feet, of the Newton Canal, with all necessary
<br />appurtenances.
<br />
<br />f. A 2,648 foot concrete-lined section, having an average
<br />bottom width of 1.5 feet, of the GrimWOOd-Smith Latera~, \lith
<br />all necessary appurtenances.
<br />
<br />g. A 2,931 foot concrete-lined section, having an' average
<br />bottom width of 2.5 feet, of the Garland Canal, with all
<br />necessary appurtenances. (The approximate locations of the
<br />above are shown on Appendix A.)
<br />
<br />3. Permit periOdic inspection of construction by the ~uthorized
<br />representatives of the state during construction a~d permit the state
<br />to review and apprOve Or disapprove any contracts for the construction
<br />of the project or the performance of work pursuant to such contracts"
<br />Or subcontracts.
<br />
<br />4. Without expense to the state, manage, operate, and maintain
<br />the project system continuously in an efficient and economical manner,
<br />and aSSUme all legal liability for such management, operation, and
<br />maintenance.
<br />
<br />5. Make the services of said project available within its capacit'l
<br />to all persons in the Contractor's service a~ea without discrimination:-
<br />as to race, colori religion, Or natural origin at reasonable charges,
<br />including assessments, taxes,'or fees in accordance with a schedule
<br />of such charges, whether for one Or more classes of service, formally
<br />adopted"by the contractor through its board of directors, as may be
<br />modified from time to time by the Contractor. The initial rate
<br />schedule must be approved by the state. Thereafter, the contractor
<br />may make such modifications to the rate schedule as the contractor
<br />d~ems necessary to efficiently and economically provide for the finan-
<br />cial requirements of the system as long as the rate schedule remains
<br />reasonable and non~discriminatory, and subject to the approval by the
<br />state.
<br />
<br />6. Adjust its operating costs and service charges from time to
<br />time to provide for adequate operation and maintenance, emergency
<br />repair services, obsolescence reserves, debt service, and debt
<br />reserves.
<br />
<br />7,. Expand the system from time to time to meet reasonable growth ":
<br />or service requirements in the area within its jurisdiction.
<br />
<br />8. Provide the state with such periOdic ~eports as it may requirg
<br />and permit periOdic inspections of its operations and accounts by a
<br />designated representative of the State. The ColoradO Water Conserva-
<br />tion Board, its agents, and employees, is hereby designated as the
<br />agent of the State for the purposes of this contract.
<br />
<br />Page 2 of 5 pages
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