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<br />b. Convey to the Colorado Water Conservation Hoard, Department of
<br />Natllral Resollrces, State of Colorado, by warranty dee(l all llllClivi(lcd
<br />one-half interest to the Timnath Reservoir and all water righ~s
<br />appurtenant thereto, which r..;servoir is situated on approximately
<br />eight hundred acres of land in portions of Sections 23, 24, 25,
<br />and 26, Township 7 North, Range 68 West of the Sixth Principal
<br />Meridian, located in the County of Larimer, State of Colorado.
<br />
<br />c. Pennit periodic inspection of construction by the authorized
<br />representatives of the State during construction and permit the
<br />State to review and approve or pisapprove any contract for the
<br />construction of the project or the performance of work pursuant
<br />to such contracts or subcontracts, except that this provision
<br />shall not apply to work heretofore accomplished by the Contractor.
<br />
<br />d. Without expense to the State, manage) operate and maint.1i n
<br />the project system continuously and in an efficient and economical
<br />manner, and assume all legal and financial liability for such
<br />management, operation and maintenance.
<br />
<br />e. Make the services of such project available within its capacity
<br />to all stockholders of the Contractor without discrimination as to
<br />race, color, religion, or natural origin at reasonable c~arges,
<br />including assessments, taxes, or fees in accordance with a schedule
<br />of such charges, whether for one or more classes of service, as may
<br />be fc..mally adopted by the Contractor thl:ough its board ot directo1."ti,
<br />and as may be modified from time to time by the Contractor. The
<br />initial rate schedule must be approved by the State. Thereafter,
<br />the Contractor may make such modifications to the rate scheJule as
<br />the Contractor deems necessary to efficiently and economically
<br />provide for the financial requiren~nts of the system as long as
<br />the rate schedule remains reasonable and non-discriminatory, and
<br />subject to the approval by the State.
<br />
<br />f. Adjust its operating costs and service charges from time to
<br />time to provide for adequate operation and maintenance, emergen('.y
<br />repRir services, obsolescence reserves, debt service, and debt
<br />reserves.
<br />
<br />g. Provide the state with such periodic reports as it may -require
<br />and permit periodic inspections of its operation and accounts by
<br />a designated representative 01 the StaL2. The Colorado \Jater
<br />Conservation Board, its agents, and employees, is herehy desi.gnated
<br />as the agent of the State for the purposes of this contract.
<br />
<br />h. To purchase from the State :OJll of the State I s right, ti.tle, and
<br />interest in said project and any facilities thereof at a totGI
<br />purchase price of One Million, Five Hundred Twenty-Two Thousand,
<br />Seven Hundred Twenty Dollars ($1,522,720), payable in forty
<br />annual installments of Thirty-Eight Thousand, SixtY-Eight IJollars
<br />($38,068) each, which first installmeut shall be due and payable
<br />on July 1, 1979, and yearly thereafter until the entire principal
<br />sum shall have been paid. Said annual installment payment sl.lall be
<br />made payable to the Colorado Water Conservation Board, payable at
<br />the offices of said Board in Denver, Colorado.
<br />
<br />2. Upon default in the payments herein set forth to be made by the
<br />Contractor, or in the performance of any covenant or agreement contained
<br />herein, the State, at its option, may (a) declare the entire principal
<br />amount then outstanding immediately due and payable; (b) for the
<br />account of the ContraGtor incur and pay reasonable expenses for repair,
<br />maintenance, and operation of the water system herein described and
<br />such other reasonable expenses as may be necessary to cure the cause
<br />of default; and/or (c) take possession of the system, repair, maintain,
<br />and operate or leas it. The provisions of this contract may be
<br />enforced by the State, at its option without regard to prior waivers by
<br />it of previous defaults by the Contractor through judicial proceedings
<br />to require specific performance of this contract or by such other
<br />proceedings In law or equity as may be deemed necessary by the State
<br />to insure compliance with provisions of this contract and the laws
<br />and regulations under which this contract is made.
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