Res 2015-171/approving a lease with Martin Marietta Materials Southwest, Inc., leasing the City’s right to withdraw 165 acre feet of water from the Edwards Aquifer during the lease term beginning on December 1, 2015 and ending on December 31, 2015

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This Lease of Groundwater (tile "Lease") is entered into by and between City of San Marcos, a Texas municipal corporation (the "Lessor") and Martin Marietta Materials Southwest, inc,, a Texas corporation (tile "Lessee"). Lessor and Lessee are sometimes hereinafter referred to singularly as a party and collectively as the parties. This Lease is executed as of the (fate of the last signature by the parties (the "Effective Date"). Subject to the terms and conditions set out in this Lease, Lessor hereby leases to Lessee and Lessee does hereby lease from Lessor the following Edwards Aquifer Groundwater withdrawal rights: 1, Property: The Property consists of the right to withdraw and/or beneficially use 165.00 acre feet per annum, of Edwards Aquifer groundwater derived from Edwards Aquifer Authority ("EAA") Permit No. P100-828(HA00222) (the "Permit") during the term set forth below (and not beyond such term), and all real and personal property rights, appurtenances, permits, authorities, licenses, consents and contract, if any, pertaining to all such property rights. 2. Term: The term of this Lease sliall commence on the Effective Date and continue through December 31, 2015. 3. Approval by EAA/Lease Payment: Lessee agrees to pay Lessor the sum of $64,845.00 as the Lease Payment. The Lease Payment will be due to Lessor by December 15, 2015. In the event the EAA does not approve the transfer of the Property, the Lease will terminate and be of no force and effect and Lessor shall refiwd to Lessee any portion of the Lease Payment already paid to Lessee within ten (10) business days of Lessor's or Lessee's notice of the EAA's disapproval of the transfer. 4. Other Payments: Lessee shall pay the expense associated with: (i) recording the Application to Transfer -Lease with the FAA; and (ii) recording the Memorandum of Lease of Edwards Aquifer Groundwater in file appropriate county; (iii) any associated filing and recording fees. 5. Fees: Lessor will pay all currently assessed aquifer management fees ($84 per as ft.) applicable to the Property for calendar year 2015. In the event the LAA assesses any additional aquifer management fees to the Properly in excess of $84 per ac. ft. for calendar year 2015, Lessee shall pay those aquifer management fees to the FAA directly, 6. Reporting Use: Lessee is aware that it is a requirement of the EAA that (i) the volume of water pimped pursuant to the Permit must be metered by use of a certain type of metering device and (ii) a report of the volume of water pumped filed with the EAA o» a regular basis. Lessee further covenants and agrees that Lessee shall be solely responsible for the installation and maintenance of EAA approved metering devices on the wells used by Lessee to produce groundwater pursuant to the Permit int good continuous working order to record and report to the EAA the volume of water pumped by Lessee pursuant to the Permit, as indicated on the referenced metering devices, on forms acceptable to the EAA. Lessee shall timely file all required reports with EAA. 7. Quiet Enjoyment: Lessor does hereby represent to Lessee that it has good title to the Property and does hereby covenant to provide Lessee quiet enjoyment of the Property