AZ vs. CA:07 California Exhibits, Vol. VII; Nos. 326-370

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harmless from every claim for damages to persons or property, direct or indirect, and of whatever nature, arising out of or in any manner connected with the care, operation and maintenance thereof. (b) If in the opinion of the Secretary the District shall have failed at any time, or from time to time, to perform substantially any provision of this contract, the United States shall give the District written notice specifying the respects in which the District shall have failed to so perform, and in the event that the District fails to cure such default within thirty (30) days following the giving of such notice, the United States may, on sixty (60) days1 written notice to the District, assume the control of the dam and appurtenant works mentioned in subdivision (a) of this article and thereafter care for, operate and maintain the same. In the event that notice is so given that the care, operation and maintenance of the transferred works is to be assumed by the United States, the District shall advance to the United States within ten (10) days after written demand by the Regional Director, the estimated cost of all such care, operation and maintenance by the United States, plus fifteen (15) percent to cover supervision and administrative expense, during the period commencing with the date that the care, operation and maintenance of such works is to be assumed by the United States and terminating on the first day of January next succeeding. During such time thereafter as the United States shall retain the operation 13