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<br />~ <br /> <br />. <br /> <br />Main Canals, and performing repairs, operation and maintenance <br />upon the improved Laterals for a long term. <br /> <br />E. The Secretary, acting through the Bureau of Reclamation <br />(Bureau), has made available to the Board a grant for the purpose <br />of paying those costs and expenses paid or incurred by Contractor <br />to prepare itself for the various duties and obligations pursuant <br />to the Act and negotiating with the Bureau a contract as to form <br />with respect to salinity control activities. The preparation and <br />negotiation activities are known as "Stage II." <br /> <br />F. The State, acting through the Board, has the authority <br />pursuant to section 37-60-106, C.R.S., to foster, encourage and <br />assist local irrigation entities. <br /> <br />G. The <br />participation <br />Act. <br /> <br />Board is the lead agency for the State's <br />in the salinity control program pursuant to the <br /> <br />NOW, THEREFORE, in consideration of the Recitals above, and <br />the mutual promises below, the State and Contractor agree as <br />follows: <br /> <br />1. Description of Stage II Tasks. Contractor shall <br />undertake and perform Stage II tasks as follows: <br /> <br />A. Contractor shall conduct a legal review of <br />Contractor's organizational documents and applicable <br />statutes to determine if Contractor has the scope of <br />authority and legal power to conduct the activities <br />contemplated for salinity control including obtaining <br />easements or rights-of-way over Laterals, design and <br />construction of the Unit and long-term maintenance of <br />laterals. The legal review shall also determine if <br />amendments to Contractor's organizational documents or <br />applicable state statutes are necessary to acquire <br />either or both the scope of authority or legal power <br />aforementioned. The legal review shall consider the <br />written report obtained by the State from Dufford, <br />Waldeck, Ruland & Milburn dated June 10, 1985 and, to <br />the extent reasonably possible, avoid duplicating the <br />legal research and analysis contained in such report. <br />The results of this legal review will be provided to <br />the State by Contractor in the form of a letter report <br />from Contractor's legal counsel, said report to be <br />provided to the State not later than April 1, 1986. <br /> <br />B. Contractor shall conduct an accounting review <br />of Contractor I s bookkeeping and accounting procedures <br /> <br />2 <br />