For purposes of this article only, when proposing, obtaining permits for, acquiring property for or constructing, operating, maintaining, terminating or dismantling a state demonstration project, a conservation district is an agent of the state, and the state shall indemnify and insure against all liability for acts or omissions of any nature under section 41-621, subsection A, paragraph 3. The state shall be named as an additional insured on any contracts entered into under this article between the conservation district and outside consultants or contractors, and the conservation district shall consult with the department of administration as to appropriate insurance to be specified in any contracts.