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II. DESCRIPTION AND SPECIFICATIONS OF SERVICES, INCLUDING COSTS: <br />The City and Texas State have developed a plan that will fully implement Phase 1 of the system <br />expansion to deliver reclaimed water to Texas State thermal plants ( "Project "). The Project <br />includes the design and construction of approximately 12,400 linear feet of 16 -inch diameter <br />pipeline to deliver reclaimed water to Texas State thermal plants. A visual depiction of the <br />proposed pipeline project route is included in Exhibit C. The project design will also include a <br />reclaimed water reservoir and pump stations modifications. <br />The production, distribution, and use of reclaimed water will be consistent with the applicable state <br />law, as it may be amended, regarding the provision and use of reclaimed water, including, but not <br />limited to, Chapter 201, 30 Texas Administrative Code ( "30 TAC "). The quality of reclaimed <br />water supplied by the project will meet the quality parameters for Type I reclaimed water under <br />Chapter 201, 30 TAC. In accordance with state rules, reclaimed water users will be prohibited <br />from allowing reclaimed water to pond or to runoff during use. Additionally, the irrigation systems <br />installed to use the reclaimed water within 100 feet of the cut bank of the San Marcos River shall <br />be designed and operated so as to prevent introduction of the reclaimed water into the San Marcos <br />Springs and River ecosystem. <br />Water main piping over San Marcos River crossings shall be cased for the full length of crossing <br />plus a distance to allow replacement of any failed section without the introduction of reclaimed <br />water into the San Marcos Springs and River ecosystem or alternately be directionally drilled and <br />seamless HDPE pipe material used for crossing. <br />III. LEASE OF THE CITY'S AND TEXAS STATE'S CONSERVED WATER <br />1. Conserved Water. The Parties agree that during the term of this Contract the <br />implementation of the Project by the City will result in 1,641 acre -feet (AF) of groundwater from <br />the Aquifer that will be conserved by the City from EAA IRP Permit No. P 100 -828 (HA00222). <br />The Parties also agree that during the term of this Contract the implementation of the Project by <br />Texas State will result in 366 AF of groundwater from the Aquifer that will be conserved by Texas <br />State from EAA IRP Permit Nos. P100 -805 (HA00205), P100 -806 (HA00206), and P100 -807 <br />(HA00207). These amounts of water shall be referred to as "Conserved Water." These permits <br />shall be referred to as the "Permits." <br />2. Amount of the Permits Available for Lease. Prior to March 31 St of each year during the <br />term of this Contract, the City and Texas State shall each determine the amount of their respective <br />Permits available for lease to the EAA as Conserved Water for the year and advise the EAA in <br />writing of such amount. This determination shall be made at the sole discretion of the City and <br />Texas State for their respective Permits. <br />3. Maximum Amount of Conserved Water Available for Lease. In no event shall the <br />amount of Conserved Water to be leased to the EAA by the City during the term of this Contract <br />be less than 1,641 AF, and, for Texas State, be less than 366 AF. The City and Texas State shall <br />not ever be required by the EAA to make available for lease more than these amounts. <br />4. Lease of the Conserved Water Portion of the Permits. After receipt of the Conserved <br />A -2 <br />