2012-11-14_INSPECTION - M2003091

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3.5.2. MMM shall be responsible for the carriage of water, including drainage water, across the MMM Property while the Permanent Ditch Relocation is being constructed. Following completion of the Ditch Relocation, MMM shall take all reasonable steps to ensure the Permanent Ditch Relocation does not interfere with the flow of water through the Ditch to the Ditch Company's shareholders. 3.5.3. MMM shall notify the Ditch Company in writing upon completion of the Permanent Ditch Relocation. The Ditch Company shall provide written notice of acceptance or rejection of the Permanent Ditch Relocation no later than thirty (30) days after receiving notice of completion of the Permanent Ditch Relocation. The Ditch Company shall not unreasonably withhold or delay its acceptance of the Permanent Ditch Relocation, and any rejection of the Permanent Ditch Relocation by the Ditch Company shall be limited to non - compliance of the Permanent Ditch Relocation with the approved Plans, which non - compliance shall be specified in writing by the Ditch Company. MMM shall respond in writing to any notice of rejection within thirty (30) days of receipt of the Ditch Company's written rejection of the Permanent Ditch Relocation and undertake modifications as it reasonably deems necessary to cure any non- compliance. The above process shall repeat until such time as: (1) the Ditch Company has accepted, in writing, the Permanent Ditch Relocation; or (2) in the absence of such acceptance, either party provides notice to the other of a breach of this Agreement, after which the parties may pursue such remedies as are available under applicable law. Notwithstanding the foregoing, the Ditch Company shall not be required to accept or to reject the Permanent Ditch Relocation until such time as all fees billed to MMM have been paid prarsuant to paragraph 7 of this Agreement. 3.5.4. MMM shall be responsible for the carriage of the Ditch Company's water across the MMM Property until the Permanent Ditch Relocation is approved. Until the date of such approval, MMM shall be liable and responsible for liquidated damages in the amount of $1,000.00 per day for each day during the Irrigation Season that the Permanent Ditch Relocation is the direct and proximate cause of the Ditch Company's inability to deliver the Ditch Company's water across the MMM Property to the Ditch Company's shareholders.. 4. PERMITS AND LICENSES. It is not known whether the Temporary Ditch or the Permanent Ditch Relocation will require any local, state or federal permits or approvals. It is MMM's obligation to investigate, determine the need for, and to obtain at its expense, any necessary permits or approvals. Permits or approvals include, but are not limited to, permits or approvals required to comply with land use and environmental laws and regulations. 4