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if not detrimental to operations, service pressures, or flows in the SMTXU water distribution <br />system. The unit of measurement for all Treated Water delivered hereunder shall be 1,000 gallons <br />of water, U.S. Standard Liquid Measure. SMTXU does not guarantee the delivery of the quantities <br />of Treated Water under this paragraph and its obligation to supply Treated Water hereunder is <br />subject to Section 4.02 or any other limitations on SMTXU's ability or obligation to supply water <br />as may be provided in this Agreement. <br />Section 1.02. Additional Quantities of Water. CLSUD may request to purchase, and <br />SMTXU may supply additional quantities of Treated Water in excess of the Maximum Daily <br />Quantity subject to availability and capacity of SMTXU's water distribution facilities as <br />determined by SMTXU, in its sole and absolute discretion. SMTXU, may, but is in no manner <br />obligated to, supply all or any portion of such additional amounts of Treated Water requested, <br />subject to approval by the San Marcos City Council. <br />Section 1.03. Other Users of SMTXU Water Distribution and Treatment Facilities. <br />SMTXU will endeavor to ensure that any connections made to the SWTP and/or its water <br />distribution facilities to serve other users are equipped and operated in such a way that SMTXU is <br />able to comply with its supply obligations to CLSUD under this Agreement. CLSUD shall have <br />no recourse against SMTXU in the event of a circumstance set forth in Section 4.02 which reduces <br />available Treated Water below the Maximum Daily Quantity. SMTXU shall not reduce SMTXU's <br />Treated Water supply to CLSUD under this Agreement by a percentage greater than reduced for <br />any other wholesale purchaser of water from SMTXU supplied from the same pressure plane. <br />Section 1.04. Point of Delivery. The Treated Water will be delivered at such point of <br />delivery (the "Point of Delivery") as shown in Exhibit A, generally located at the southeast corner <br />of the intersection of Texas State Highway 21 and William Pettis Road in Hays County. The <br />parties may mutually agree in writing to designate a new Point of Delivery or other future points <br />of delivery. <br />Section 1.05. Quality of Water to be Supplied. SMTXU agrees that the Treated Water <br />supplied under this Agreement will be of the same quality as potable water made available by <br />SMTXU within all areas covered by its Certificate of Convenience and Necessity (the "Delivered <br />Water Quality"). CLSUD shall be solely responsible for improving or otherwise altering the <br />Delivered Water Quality to meet any inconsistent standards it deems suitable for its needs. <br />Section 1.06. Operation and Maintenance of Facilities. This Agreement is subject to <br />the requirements for the operation and maintenance of all existing facilities, equipment, meters, <br />pipelines and connections necessary for the delivery of Treated Water from SMTXU to CLSUD. <br />CLSUD is responsible for any new construction or installation of additional facilities, equipment, <br />meters, pipelines or connections necessary to receive the Treated Water from SMTXU, as <br />indicated in Exhibit B, attached hereto. <br />Article 2. Payments for Treated Water and Other Terms of Supply <br />Section 2.01. Minimum Monthly Payment Amount. By entering into this Agreement, <br />CLSUD will pay to SMTXU a minimum monthly amount equivalent to usage of 500,000 gallons <br />Version 2023.02.15 <br />