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<br />B. City Obligations <br /> <br />14. <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 />Maxwell at Maxwell's request about the status of the City's Application. The City agrees to <br />pursue this application with diligence and with its best efforts. <br />2. The City agrees that it will be responsible for all costs associated with the City's <br />Application, including engineering and legal expenses. <br />3. The City agrees to submit a letter to the TCEQ expressing its agreement to Maxwell's <br />Application as described in Paragraph A.I. above, and the City agrees not to file a protest, <br />seek party status, or otherwise intervene in Maxwell's Application. <br />The City. in executing this Agreement. evidences its willingness to grant one or more <br />variances, as necessary. a;;rees to grant a variance from its ordinance that limits the provision <br />of City wastewater service to City water service customers, to authorize City wastewater <br />service to the area depicted on the attached map as "Tract 2" and the adjacent area of propelty <br />depicted on the attached map as "Tract 3," to all Maxwell water utility customerswho receive <br />or require water utility service within Tract 2 or Tract 3. The variance will be effective upon <br />final approval by TCEQ of the Maxwell Application, and approval by Maxwell's creditors as <br />identified in section C of this Agreement. The variance will be subject to all applicable City <br />development approvals and standards, including zoning, platting, site development permitting <br />and construction standards, for the improvements to be served by the wastewater service. <br /> <br />C. Required Approvals <br /> <br />1. Maxwell is indebted to the United States Department of Agriculture, Rural Development <br />("USDA-RD") and Co-Bank National Bank for Cooperatives ("Co-Bank"). As part of <br />this indebtedness, Maxwell has pledged its assets, including its service area, as collateral <br />for it debt. As such, Maxwell must secure consent from both USDA and Co-Bank prior <br />to this Agreement taking effect. Maxwell agrees to make every effort to secure the <br />required consent in a timely manner. The signatures below indicate the consent to this <br />Agreement by USDA-RD and Co-Bank. <br /> <br />D. Miscellaneous <br /> <br />1. Tract 3 as identified herein is already entirely within Maxwell's CCN and is included <br />herein for clarification to ensure that the variance to be granted by the City identified in <br />item BS above shall apply to the provision by the City of wasterwater utlity service in <br />Tract 3. <br />2. The variance(s) to be granted by the Citv, as identified in section B4 above. is the <br />consideration for Maxwell entering into this Agreement and anv restriction on the <br />granting of the variance(s). other than as identified in section B4, above constitutes a <br />breach of this Agreement and will cause this Agreement to fail for lack of consideration. <br /> <br />Please indicate your acceptance of this Agreement by having it signed below by an authorized <br />officer of Maxwell. Thank you for your cooperation and assistance in this matter. <br /> <br />2 <br />