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<br />Section 3.02. Regulatory Compliance. The obligations of Hays Energy and the City under this <br />Contract are subject to all applicable federal, state and local laws and regulations currently in effect <br />and as amended or modified from time to time (the "Laws and Regulations"). <br /> <br />A. Subject to the provisions of Section 1.04.B, the City is responsible for compliance with <br />the Laws and Regulations that apply to the Treatment Plant. <br /> <br />B. Hays Energy is responsible for compliance with the Laws and Regulations that apply to <br />the construction ofthe Wastewater Line. <br /> <br />C. The City is responsible for compliance with the Laws and Regulations that apply to the <br />operation of the Wastewater Line after its completion and acceptance by the City. <br /> <br />D. Hays Energy is responsible for compliance with the Laws and Regulations governing the <br />use of the City's wastewater treatment services, including without limitation, those applicable to <br />industrial wastewater discharge. <br /> <br />E. Hays Energy is responsible for compliance with the Laws and Regulations that apply to <br />the Facility's zero liquid discharge equipment. <br /> <br />Section 3.03. Term; Termination. <br /> <br />A. The initial term of the Contract is 20 years commencing on the Effective Date. This <br />Contract can be renewed or extended with the mutual consent of the parties. The wastewater <br />treatment service to be provided by the City will commence on the earlier of 1) June 1, 2001, or 2) <br />the date of the City's acceptance of the completed Wastewater Line. <br /> <br />B. The City may suspend the provision of wastewater treatment services under this Contract, <br />without terminating the Contract, in the following circumstances: <br />1. Hays Energy fails to pay any amount invoiced or billed by the City to Hays Energy under <br />this Contract, unless Hays Energy has notified the City, in writing prior to the deadline in the <br />City's billing notice, of a bona fide dispute concerning the invoice or bill. <br />2. Hays Energy fails to comply with any of the Laws and Regulations for which Hays Energy <br />is responsible for compliance. <br /> <br />C. The failure or refusal of a party to comply with any term, provision, or covenant of this <br />Contract will constitute a default by that party. In addition, if Hays Energy becomes insolvent, or <br />commences, or has commenced against it, proceedings in bankruptcy, this will constitute a default <br />by Hays Energy. This Contract may be terminated by either party upon a default by the other party. <br />In the event of a default by a party, the other party shall give the defaulting party written notice of <br />default, and, if the defaulting party fails to cure or remedy the default within 30 days following <br />receipt of notice, this Contract shall terminate immediately without further notice to the defaulting <br /> <br />5 <br />