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<br />Such agreement, signed September 6, 1917, with certain supplements <br />is still in effect and contains the basic principle upon which the Project <br />is operated today. Controlling features are that: <br /> <br />(1) Subject to terms and conditions of the agr.eement, the United <br />States, as soon as the agreement was signed, would turn over <br />to and vest in said Association the care, operation and <br />maintenance of the irrigation works known as the Salt River <br />Project. <br /> <br />(2) The Association agreed to accept .such transfer and to care <br />for, operate and maintain the Project in conformance with <br />the law and the agreement in .such manner that the PrQject <br />would continue in good and .sufficient condition for storage, <br />development, diversion and di.stribution of irrigation water <br />and distribution of electrical energy produced, at the <br />Association's co.st and without cost to the United States. <br /> <br />(3) The Association would repay to the United States the cost <br />of construction and acquisition of said Project promptly <br />and without default, each total cost at the time being <br />$10,166,021.97. <br /> <br />. (4) The Association us.e its powers and r.esources, accumulative, <br />if necessary, including the power to withhold delivery of <br />water, to enforce rules and regulations and collect necessary <br />f'unds to repay construction costs. <br /> <br />(5) The Association hold the United States harmless as to any <br />damages which might accrue to property within or without <br />the re.servoir distriC't growing out of the care, operation <br />and maintenance of the Project by the As.sociation. <br /> <br />(6) The Secretary of the Interior might inspe.ct the Project to <br />a.scertain if provisions of the agreement were being carried <br />out. <br /> <br />(7) The Association would 1Dake proper delivery of irrigation <br />water to each parcel of land entitled to water. <br /> <br />(8) The agreement might be terminated by the United States at any <br />time by -written notice from the Secr.etary of the Interior in <br />event the Association sh.ould fail to carry out the provisions <br />of law or the agreement. <br /> <br />(9) The Association would keep proper records. <br /> <br />(10) The Association would assume and carry but all contracts entered <br />into betwe.en the Unite.d States and others affected by construc- <br />tion of the Project. <br /> <br />-17- <br />