Res 2014-050/Transmission Planning Data Services Agreement with ERCOT and LCRA

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4.7. San Marcos shall perform as the principal to LCRA in accordance with the applicable ERCOT Protocols, Guidelines and the ERCOT Market Agreement 2001 or its successor agreement, 4.8. San Marcos shall perform its responsibilities as principal in accordance with the requirements of the Handbook or its successor document. 4.9. In the event that the ERCOT Protocols, Guidelines or the ERCOT Market Agreement 2012 conflict with requirements of the Handbook, the ERCOT Protocols, Guidelines or the ERCOT Market Agreement 2001 shall prevail over the Handbook. 4.10, San Marcos and LCRA shall both implement NERC Critical Infrastructure Protection requirements in such a way that is not restrictive to the other Party's personnel in carrying out their duties contemplated in this Agreement, but will not act in any way to intentionally cause the other to violate their compliance obligations. ARTICLE V. RELATIONSHIPS WITHIN NERC RELIABILITY STANDARDS 5.1. NERC Reliability Standards are mandatory and assign strict accountability for noncompliance by registered entities. The Parties must each individually register with NERC for their respective functions, which then clearly dictate which NERC Reliability Standards are applicable to them. This Agreement does not alter either Parties' requirements or responsibilities in meeting the applicable NERC registration and Reliability Standards. 5.2. This Agreement does not expressly or by implication create a Joint Registration Organization between the Parties. 5.3. Each Party agrees to cooperate fully with the other in responding to any audits by an authority of appropriate jurisdiction pertaining to the subject of this Agreement. This includes, but is not limited to providing documentation, subject matter experts, and any other reasonable responsive measures to assist the other Party in compliance. This provision shall survive termination of this Agreement. ARTICLE VI. LIABILITY AND INDEMNITY 6.1. The Parties agree that they will use Good Utility Practices to carry out their obligations under this Agreement. The Parties acknowledge that the performance of a task on behalf of another under this Agreement does not transfer the responsibility for ensuring that a Party's obligations under the ERCOT Protocols or the NERC Reliability Standards have been met. 6.2. The Parties agree and understand that potential fines and /or penalties which may be assessed for transmission system related operations by the PUC, TRE, NERC or FERC may be Transmission Planning Data Services Agreement, City of San Marcos — LCRA Page 5 of 10