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e. b. A5 MG settling pond with inlet structures; purchase of land is also included. . . c. A 4,000-ft. 14-inch pipeline with all necessary fittings, ~alves and other appurtenances from the pumping station J'oining the existing line from ~he old pump station'to the . Graham Mesa Tank and Treatment Plant. . 3.' Permit periodic inspection of cons~ruction by the "authorized representatives of the. State during construction and permit the State. to review and approve or disapprove any contracts' for the construction of the project or the performance of work pursuant to such contracts or subcontracts,.' . 4. Without, expense, to the State, manage, operate' and maintain the project system. continuously in an efficient and economical manner, and assume all legal liability for .such management, operation and'mai~tenance. . 5. Make the services of said project aqai1ab1e within its capacity. to, all persons in the Contractor's service .area without discrimination as to race, color, relig~on or natural' origin at .reasonable charges, including assessments, taxes or fees in accordance with a schedule of such charges, whether for one or more classes of service, formally adopted by the Contractor through it~ board of directors, as may lJe modified from time to time by the Contractor. The initial ra~e schedule must be . approved by the State. Thereafter, the Contractor may make such modifications to the rate schedule as the Contractor deems. necessary to eff~cient1y and .ecoriomlcalty provide for the financial requirements of the system as long as the rate schedule remains reasonable and non-discrimrnatotY, and. subject to the approval by the State. 6. Adjust its operating costs and service charges from time to time to provide for adequate operation gnd maintenance, emergency repair services; obsolescen~e reserves, debt service and debt reserves. 7. Expand the system from time to time to meet rea~onab1e growth or service requirements' in the area witbin.it~ ju~isdiction. 8. Provide the State with such perlodic reports as it may require and permit 'perio~ic inspections of its operations and accounts .by a designated representative of the State. The Colorado Water .ConservationBoard, its agents and employees, is. hereby designated as. the agent of .the State for the purposes of this contract. 9. To purchase from the State all of the State I s right, title .and interest in said project and any facilities thereof at a total purchase price of Six Hundred Twelve Thousand Two Hundred Forty Dollars .(~612 ,240), payable in thirty (30) annual install- ments of Twenty Thousand Four Hundred Eight Dollars ($20,408) each, which f~rst installment shall be due and payable on December 1, 1978~ and yearly thereafter until the entire principal sum shall have been paid. Said installment payment shall be made payable to the Colorado Water Conservation Board, payable at the offices of said board in Denver, Colorado. 10. Upon default in the payments herein set forth to be made by the. Contractor, or in the performance of any covenant or agree- ment contained herein, the State, at its option may (a) declare the entire principal amount then outstanding immediately due and payable, (b) for. the account of the Contractor incur and pay reasonable 'expenses for repair, maintenance, and operation of t~e domestic water system herein described and such other reasonable ex~enses as may be necessary to cure the cause of default, and/or (c) take.possession.of the sys~em, repair, maintain, and operate or lease it. The provisions of this contract may be enforced by the State, at its option without regard to prior waivers by it of Page 2 of 5 pages