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A-~ ~1)A- I TUv1 2. ~... FI,.J,kL.- Gt-+'+N 6 f..5 December 10, 2002 Mabel Vaughn, Manager Maxwell Water Supply Corporation P.O. Box 158 Maxwell, TX 78656 Dear Ms. Vaughn: This letter will serve as th€-an agreement (the "Agreement") pursuant to Section 67.010 of the Texas Water Code between Maxwell Water Supply Corporation ("Maxwell") and the City of San Marcos, Texas (the "City"t This Agreement is entered into to facilitate Texas Commission on Environmental Quality ("TCEQ") fBr.-adjustments to the state-certificated water service areas (known as Certificates of Convenience and Necessity ("CCNs")) for Maxwell and the City-fthe ",^..greement") and to ensure the continuous adequate provision of water utility service to the water utility customers of both the City and Maxwell. and to provide City wastewater service to certain water utility customers of Maxwell. See the map attached Exhibit "A," which depicts the proposed adiustments to the respective CCNs of the City and Maxwell. included herein for all purposes as integral to this Agreement. A. Maxwell Obligations 1. Maxwell agrees to prepare and submit to the Texas Commission on Environmental Quality ("TCEQ") a completed application for amendment of its CCN to decertificate the area depicted on the attached map as "Tract 1" from Maxwell's CCN, and to add the area depicted on the attached map as "Tract 2" to Maxwell's CCN (the "Maxwell Application"). Maxwell will provide a copy of the Maxwell Application to the City, and will provide information to the City at the City's request about the status of the Maxwell Application. 2. Maxwell agrees to file the Maxwell Application at its earliest convenience concurrent with its pending CCN amendments in other sections of Maxwell's CCN (but in no event later than January 31, 2003) and pursue this application with diligence and with its best efforts once filed. 3. Maxwell agrees that it will be responsible for all costs associated with this application, including engineering and legal expenses. 4. Maxwell agrees to submit a letter to the TCEQ expressing its agreement to the City's CCN amendment application as described in Paragraph B.1. below, and Maxwell agrees not to file a protest, seek party status, or otherwise intervene in the City's Application. 5. Maxwell agrees to ensure that all water service facilities constructed to serve the area depicted on the attached map as "Tract 2" and "Tract 3" are constructed in accordance with the City's construction standards, referenced in the City's subdivision ordinance, in effect at the time of the construction.