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<br /> <br />. <br /> <br />. <br /> <br />, <br /> <br />the River District all permits, licenses, engineering plans, <br />drawings, specifications and other material acquired or <br />produced by the Subdistrict or others in connection with the <br />Azure Project or said alternate facility. River District <br />shall have the right to proceed with said Project(s) free of <br />the obligations of this Agreement with respect thereto. To <br />the extent the failure to initiate construction within the <br />periods herein contemplated for Azure Reservoir and Power <br />Plant, or the alternate facility, is due to reasonably avoidable <br />fault or delay on the part of Subdistrict, the time within <br />which construction was to have been initiated shall be extended <br />a like period. For the purposes of this Agreement, the <br />initiation of construction shall be deemed to have occurred <br />on the date construction contracts are signed which result in <br />physical onsite work on the facilities contemplated hereunder. <br />All lands and rights-of-way, if any, acquired by Subdistrict <br />for said Project may be acquired by River District at cost, <br />plus interest thereon at the rate being paid by Subdistrict <br />thereon, if notice of River District's desire to obtain said <br />lands and rights-of-way is given to Subdistrict in writing <br />within six months after any agreement to forego said additional <br />work. <br /> <br />13. Windy Gap Project diversions will be made <br />strictly under the priority system (including exchanges), <br />thus protecting all conditional and absolute water rights <br />senior in priority, unless specifically subordinated to Windy <br />Gap decrees. <br />, 14. Subdistrict will comply with all terms and <br />provisions of Senate Document 80 in the design, construction <br />and operation of the Windy Gap Project. <br />15. The Parties acknowledge and agree that Sub- <br />district may initiate immediately the construction of its <br />Windy Gap Project prior to the construction of Azure Reservoir <br />and Power Project, which latter facility is intended to <br />comply with the provisions of C.R.S. 1973, 37-45-118(1) (b) (IV); <br /> <br />.;' <br /> <br />0937 <br /> <br />-12- <br /> <br />