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<br />. <br /> <br />.. <br /> <br />AGREEMENT <br /> <br />This Agreement, dated this 29lh day of October, 1996, is made by and between the <br />ORCHARD MESA IRRlGA nON DISTRICT ("OMID"), 1'.0. Box 356, Palisade, CO <br />81526, a Colorado irrigation district operating under Article 42 of Title 37, CR.S., and the <br />MUTUAL MESA LATERAL ENTERPRISE ("MMLE"), P.O. Box 356, Palisade, CO 81526, <br />a water activity enterprise organized under the provisions of CR.S. S 37-45.1-10 I el seq. <br /> <br />RECiTALS <br /> <br />A. OMID has determined that it will benefit landowners within its service area to <br />place the Mutual Mesa Lateral section of its delivery system, which is cUITently open ditch, in <br />closed pipe (referred to below as the "Project"). Doing so will reduce seepage from the open <br />ditch, thereby making delivery through the Mutual Mesa Laleralmore efficient and allowing a <br />greater portion of water available to aMID (0 serve other portions of its service area. In <br />addition, closing the open ditches in the Mutual Mesa system will reduce potential future <br />liabilities for OMID. <br /> <br />B. The Colorado Water Conservation Board has indicated that, while it is unable to <br />directly loan OMID the funds necessary to perform the Project, it will loan the necessary funds to <br />MMLE, a Water Activity Enterprise formed by OMID to undertake the Project. <br /> <br />C Therefore, OMID desires to contract with MMLE to undertake the Project on <br />behalf of OMID, and MMLE desires to undertake the Project, subject to the terms and conditions <br />of this Agreement. <br /> <br />FOR VALUABLE CONSIDERATION received, the parties agree: <br /> <br />AGRE~~MENT <br /> <br />I. Proiect Funding. MMLE shall borrow from the Colorado Water Conservation <br />Board ("CWCB") up to seventy-five percent (75%), but not exceeding $871,000, of the funds <br />necessary to undertake and complete the Project in accordance with the plans and specification <br />prepared for the Project by the U.S. Natural Resources Conservatiun Service (the "Project <br />Plans"), as such plans may be amended from time to time. <br /> <br />2. Proiect Construction. MMLE shall, in its name, conlract with all contractors, <br />laborers, suppliers, materialmen, consultants and others necessary (0 undertake and complete the <br />Project in accordance with the Project Plans. MMLE shall be solely responsible for paying the <br />fees, charges and costs for all such work when arld as due. <br /> <br />3. Proiect Ownership. Ownership of all materials, fixtures, and other goods <br />incorporated into construction of the Project (the "Mutual Mesa System") shall remain vested in <br />MMLE during the term of this Agreement. Upon termination of this Agreement. other than by <br />OMID's failure to renew this Agreement, title to the Mutual Mesa System shall automatically <br />