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<br />non-federal entities' costs of operation and maintenance to the <br />extent that. such costs exceed the expenses which would have <br />been incurred absent the unit's construction; and <br /> <br />WHEREAS. the Grand Valley Irrigation Company (Company) <br />furnishes irrigation water to its users through headgates on <br />its main canal(s). such water thereafter flowing through a <br />system of private laterals which are currently owned and <br />operated by numerous private individuals or informal groups and <br />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 proposed that the Company <br />consider becoming the non-federal entity which will acquire <br />such real property interests in the laterals under its canal <br />system as will enable it to contract with Reclamation for the <br />long-term operation and maintenance of the improved laterals; <br />. <br />and <br /> <br />WHEREAS. a review of the Company! s lega'l authorities must <br />first be conducted before the State can discuss further the <br />porposal with the Comapny; and <br /> <br />. WHEREAS. the Contractor is the Companyts legal counsel and <br />is willing to undertake the necessary review of the Company's <br />legal authorities in its capacity as counsel to the company; and <br /> <br />WHEREAS. the State and Reclamation desire that the <br />Contractor undertake such review; and <br /> <br />Page Z of ~ Pages <br />