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<br />118. <br /> <br />Draft 12-2-02 <br /> <br />December 10. 2002 <br /> <br />Mabel Vaughn, Manager <br />Maxwell Water Supply Corporation <br />P.O. Box 158 <br />Maxwell, TX 78656 <br /> <br />Dear Ms. Vaughn: <br /> <br />This letter will serve as the agreement between Maxwell Water Supply Corporation ("Maxwell") <br />and the City of San Marcos, Texas (the "City") for adjustments to the state-certificated water <br />service areas (know as a Certificates of Convenience and Necessity ("CCNs")) for Maxwell and <br />the City (the "Agreement"). <br /> <br />A. Maxwell Obligations <br /> <br />I. Maxwell agrees to prepare and submit to the Texas Commission on Environmental Quality <br />("TCEQ") a completed application for amendment of its CCN to decertificate the area <br />depicted on the attached map as "Tract 1" from Maxwell's CCN, and to add the area depicted <br />on the attached map as "Tract 2" to Maxwell's CCN (the "Maxwell Application"). Maxwell <br />will provide a copy of the Maxwell Application to the City, and will provide information to <br />the City at the City's request about the status of the Maxwell Application. <br />2. Maxwell agrees to file the Maxwell Application at its earliest convenience concurrent with its <br />pending CCN amendments in other sections of Maxwell's CCN (but in no event later than <br />January 31, 2003) and pursue this application with diligence and with its best efforts once <br />filed. <br />3. Maxwell agrees that it will be responsible for all costs associated with this application, <br />including engineering and legal expenses. <br />4. Maxwell agrees to submit a letter to the TCEQ expressing its agreement to the City's CCN <br />amendment application as described in Paragraph 8.1. below, and Maxwell agrees not to file <br />a protest, seek party status, or otherwise intervene in the City's Application. <br />5. Maxwell agrees to ensure that all water service facilities constructed to serve the area <br />depicted on the attached map as "Tract 2" and "Tract 3" are constructed in accordance with <br />the City's construction standards, referenced in the City's subdivision ordinance, in effect at <br />the time of the construction. <br /> <br />B. City Obligations <br /> <br />1. The City agrees to prepare and submit to the TCEQ, by January 31, 2003, a completed <br />application for amendment of its CCN to decertificate the area depicted on the attached map <br />as "Tract 2" from the City's certificated area, and to add the area depicted on the attached <br />map as "Tract 1" to the City's certificated area (the City's Application"). The City will <br />provide a copy of the City's Application to Maxwell, and will provide information to <br />