Res 2020-109/approving contracts with Hays Energy, LLC for the sale of reclaimed water for and the treatment of Wastewater from Hays Energy’s Electric Power Generation Facility South of the city

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Section 2.04. Connections to the Supply Line. The Seller will ensure that any connections made to the Supply Line to serve other customers are equipped in such a way that the Seller is able to comply with its supply obligations hereunder. Article 3 Miscellaneous Provisions Section 3.01. Regulatory Compliance. The obligations of the Buyer and the Seller under this Contract are subject to all applicable federal, state and local laws and regulations currently in effect and as amended or modified from time to time (the "Laws and Regulations"), including but not limited to Title 30, Chapter 210 of the Texas Administrative Code, and the Seller's ordinances relating to water conservation. A. The Seller is responsible for compliance with the Laws and Regulations that apply to the Treatment Plant. B. The Seller is responsible for compliance with the Laws and Regulations that apply to the operation of the Supply Line. C. The Buyer is responsible for compliance with the Laws and Regulations that apply to the use of the Reclaimed Water from the Treatment Plant at the Facility. This includes, but is not limited to, implementing an operation and maintenance plan (the "O&M Plan") for the Buyer's use of the Reclaimed Water. The initial O&M Plan is attached as Exhibit B. The Buyer may modify this O&M Plan or adopt a new 0&M Plan, subject to regulatory approval and compliance with all Laws and Regulations. Section 3.02. Term; Termination. A. The term of the Contract is 10 years commencing on the Effective Date. This Contract can be renewed or extended with the mutual consent of the parties. B. The Seller may suspend the supply of Reclaimed Water under this Contract, without terminating the Contract, in the following circumstances: 1. The Buyer fails to pay any amount billed by the Seller to the Buyer under Section 1.04 of this Contract, unless the Buyer has notified the Seller, in writing prior to the deadline in the Seller's billing notice, of a bona fide dispute concerning the bill. 2. The Buyer fails to comply with any of the Laws and Regulations that apply to the Buyer's use of the Reclaimed Water, including but not limited to those contained in 'Title 30, Chapter 210 of the Texas Administrative Code. 3. Any Treatment Plant condition, pipeline failure, or other mechanical or operational condition that would render the supply of Reclaimed Water unavailable during repairs or while quality or quantity do not meet the needed requirements; provided that the Seller notify the Buyer as soon as feasible of such condition or failure, and promptly commences and diligently proceeds to cure such condition or failure as quickly as possible. C. The failure or refusal of a party to comply with any term, provision, or covenant of this Contract will constitute a default by that party. In addition, if the Buyer becomes insolvent, or commences, or has commenced against it, proceedings in bankruptcy, this will constitute a default by the Buyer. This Contract may be terminated by either party upon a default by the other party. In the event of a default by a party, the other party shall give the defaulting party written notice of default, and, if the defaulting party fails to cure or remedy the default within 30 days following receipt of notice, this Contract shall terminate immediately without further notice to the defaulting party. The Seller's acceptance of the Buyer's monthly payments subsequent to the occurrence of any event of default will be as compensation for the provision of Reclaimed Water, and will in no way constitute a waiver by the Seller of its right to exercise any remedy provided for any event of default.