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<br />b. water delivered through the Pipeline shall only be beneficially used, whether the use is hy
<br />direct diversion, by exchange or otherwise, in accordance with the terms of this Contract; the
<br />Water Conservancy Act of Colorado, C.R.S. II 37-45-101 et sea., I 37-83-106; the rules,
<br />regulations and policies of the Board; and the COlorado-Big Thompson Project Repayment Contract
<br />between the District and the united states of America dated July 5, 1938, if applicable, or
<br />as otberwise allowed with the Board's consent.
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<br />4. SWSP Enterprise OWnershio. OPeration and Maintenance.
<br />
<br />a. The SWSP Enterprise shall own, construct, operate, maintain, replace and repair the Pipeline,
<br />Subject to the Allottee's perpetual, vested right to possession of that portion of the capacity
<br />of the Pipeline allocated herein. To this end the SWSP Enterprise shall be responsible for
<br />all planning, scheduling, right-of-way acguisition, construction and engineering contracts
<br />relating to the Pipeline; any reguired permits, impact statements and other procedural or
<br />substantive matters necessary for completion of the Pipeline; and all operation, maintenance,
<br />and replacement of the Pipeline.
<br />
<br />b. The SWSP Enterprise covenants to prudently design, construct, operate, maintain, repair and
<br />replace the Pipeline in good faith for the benefit of the Allottee and the other Participants.
<br />SWSP Enterprise acknowledges that Allottee is relying upon this covenant of SWSP Enterprise
<br />in executing this Contract and in making payment of all amounts due hereunder. SWSP Enterprise
<br />and the Allottee agree that non-performance by SWSP Enterprise of its obligations to design,
<br />construct, operate, maintain, repair and replace the Pipeline shall result in damages to
<br />Allottee which will be difficult to calculate and for which there may not be an adeguate
<br />remedy at law. Therefore, SWSP Enterprise and Allottee agree that, so long as the Participants
<br />have provided SWSP Enterprise adeguate funds to design, construct, operate, maintain, repair
<br />and replace the Pipeline under this Contract, in the event of non-performance by SWSP
<br />Enterprise, Allottee shall have the right to a remedy of specific performance to require SWSP
<br />Enterprise to perform its obligations as set forth herein or the right to damages, or both.
<br />The SWSP Enterprise's financial obligations to design, construct, operate, maintain, repair
<br />and replace the Pipeline under this Contract shall be payable solely out of the assets and
<br />revenues of the SWSP Enterprise; provided, however, SWSP Enterprise shall be liable for its
<br />negligence or gross negligence. The Allottee does not ,aive any right of action that it may
<br />have against the SWSP Enterprise or the District for liability arising from tort, subject and
<br />pursuant to applicable law. In no event shall the SWSP Enterprise be reguired to expend any
<br />money from taxes which is in violation of section 20( 4) of Article X of the Colorado
<br />Constitution in the performance of its obligations under this Contract or which would cause
<br />SWSP Enterprise to lose its enterprise status as such status is defined in the Colorado
<br />Constitution.
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<br />c. The SWSP Enterprise warrants and represents that the District has the lawful and physical
<br />ability to construct, operate, maintain and utilize the Carter Lake Dam No.1 OUtlet Works and
<br />the st. Vrain Supply Canal, and any other federal facilities owned by the U. S. Bureau of
<br />Reclamation (collectively the "Federal Facilities") for the purpose of delivering water from
<br />the Carter Lake Dam No. 1 Outlet Works through the Carter Lake to Broomfield Pipeline at the
<br />capacities allotted to the participants in that pipeline subject and pursuant to the Repayment
<br />Contract dated July 5, 1938, between the District and the u.s. Bureau of Reclamation, as
<br />amended, and the Special Use Permit Contract No. 2-LH-60-L2308, issued to the District by the
<br />u.S. Bureau of Reclamation. The SWSP Enterprise covenants that it shall comply with all terms
<br />and conditions of said Special Use Permit and maintain it in full force and effect throughout
<br />its term, and it shall successively apply for the issuance of new permits, if necessary, in
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