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the breach and given an opportunity to cure. If the breach is not cured within 60 <br />days following the notice, or if a cure cannot be reasonably completed within 60 <br />days and a cure is not begun and diligently pursued within 60 days, the contract can <br />be terminated 10 days after written notice is given of the failure to cure the breach, <br />subject to the right of either party to also pursue available remedies at law or in <br />equity. <br />3. Subject to TCEQ Approvals. This Agreement and the obligations of the Parties <br />under it are subject to approval by the Texas Commission on Environmental Quality of a change <br />in the classification of the surface water allocated to the City from "Industrial" use to "Municipal" <br />use and the change in location of the surface water withdrawal points downstream of the identified <br />endangered habitat areas of the San Marcos River. The Parties agree to cooperate in effecting such <br />transfers in accord with all State statutes and requirements or those of any entity having <br />jurisdiction. In the event such approvals are not obtained, Texas State may still purchase reclaimed <br />water from the City at the following rates: <br />a. $1.35 per 1,000 gallons of reclaimed water for a period of 10 years from the first <br />date of delivery; <br />b. $1.35 per 1,000 gallons of reclaimed water, plus one -third of the difference between <br />such rate and the then applicable rate in effect for year 11; <br />C. $1.35 per 1,000 gallons of reclaimed water, plus two - thirds of the difference <br />between such rate and the then applicable rate then in effect for year 12; and <br />d. the applicable rates then in effect for year 13 and all subsequent years.. <br />4. Notices. All notices or other communications which are required or permitted <br />hereunder shall be in writing and shall be deemed properly delivered if sent by U.S. Mail return <br />5 <br />