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<br />(c) Article 2 is amended by adding the following new Section 2.04 at the end thereof: <br /> <br />"2.04. Use of Wastewater Line. Hays Energy will permit the City to make connections <br />to the Wastewater Line for use by other City customers provided that the City agrees to reserve <br />500,000 gallons per day of capacity in the Wastewater Line (at a rate of20,833.33 gallons per <br />hour) for use by Hays Energy. In order to protect the right of Hays Energy to this reserved <br />capacity, the City agrees to verify that sufficient capacity remains in the Wastewater Line to <br />serve a request to connect to the line by a third party or such third party's usage of the <br />Wastewater Line, while preserving Hays Energy's reserved capacity, before approving the <br />request or usage ("Request"). To the extent that any such Request by a third party would conflict <br />with Hays Energy's reserved capacity, the City agrees to deny the Request. The City may <br />provide alternative means for wastewater service for persons whose wastewater service requests <br />are denied under this paragraph. <br /> <br />(d) Section 3.02.A is amended in its entirety to read as follows: <br /> <br />"A. Subject to the provisions of Section 1.01.B, tIhe City is responsible for compliance <br />with the Laws and Regulations that apply to the Treatment Plant." <br /> <br />(e) Section 3.02.D is amended in its entirety to read as follows: <br /> <br />"D. Hays Energy is responsible for compliance with the Laws and Regulations governing <br />Hays Energy's the use of the City's wastewater treatment services, including without limitation, <br />those applicable to industrial wastewater discharge. Hays Energy is not responsible for <br />discharges to the Wastewater Line made by any other City customer. <br /> <br />Article 3. Miscellaneous Provisions. <br /> <br />Section 3.01. Any references in the Wastewater Agreement to the "Contract" shall be <br />interpreted to include this First Amendment. <br /> <br />Section 3.02. This First Amendment will be governed by the laws of the State of Texas. <br /> <br />Section 3.03. Except as amended herein, all terms and conditions of the Wastewater Agreement <br />shall remain in full force and effect. <br /> <br />(signature page follows) <br /> <br />2 <br />