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<br />O[.r,2G4 <br /> <br /> <br />. <br /> <br />commercial operation, unless terminated sooner. At the end of the 30-year <br /> <br /> <br />term, the Agreement would be renewable in 5-year increments if desired by all <br /> <br /> <br />parties. <br /> <br />Termination language contained in Section 9.0 of the Agreement would apply in <br /> <br /> <br />the event Congressional authorization of salt payments does not occur in a <br /> <br /> <br />timely manner. The applicable statement is as follows: "It is expressly <br /> <br /> <br />understood by both parties that, in the event authorizing legislation for salt <br /> <br /> <br />removal payments is not passed by Congress by June 1, 1992, this agreement can <br /> <br /> <br />be terminated without cost to Reclamation and without liability to either <br /> <br /> <br />party. " <br /> <br />. <br /> <br />In addition, the Sponsors may terminate if 1) the project proves economically <br />infeasible; 2) the timing of Federal legislation would not ensure compliance <br />with milestones in the Power Purchase Agreempnt; or 11 regulatory approvals oc <br /> <br />permits cannot be obtained in a timely manner. <br /> <br />It should be recognized that approval of the salt payments by Congress is <br /> <br /> <br />critical for the viability of the project. Hajor financial decisions and the <br /> <br /> <br />initiation of construction are required in the short term to meet the start-up <br /> <br /> <br />schedule for the delivery of power to Public Service company (PSCo). Fa:lure <br /> <br /> <br />to meet that schedule would result in the cancellation of the Power Purc~ase <br /> <br /> <br />Agreement with PSCo. Reclamation and the Sponsors have agreed to make a <br /> <br /> <br />diligent effort to prepare the needed background information along with 3~ <br /> <br /> <br />environmental assessment and work to obtain Congressir!l1al authoriz3ticn <br /> <br /> <br />December 1990. <br /> <br />. <br /> <br />3 <br />