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<br />Article 3. Miscellaneous Provisions. <br /> <br />Section 3.01. Conditions Precedent. <br /> <br />A. Intentionally omittcd. <br /> <br />B. The Seller's provision of Reclaimed Water under this Contract is conditioned on the <br />satisfactory completion of the construction of the Supply Line by the Buyer. <br /> <br />Section 3.02. Regulatory Compliance. The obligations of the Buyer and the Seller 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"), including but not <br />limited to Title 30, Chapter 210 of the Texas Administrative Code, and the Seller's ordinances <br />relating to water conservation. <br /> <br />A. The Sellcr is responsible for compliance with the Laws and Regulations that apply to the <br />Treatment Plant. <br /> <br />B. The Buyer is responsible for compliance with the Laws and Regulations that apply to the <br />construction of the Supply Line. <br /> <br />C. The Seller is responsible for compliance with the Laws and Regulations that apply to the <br />operation ofthe Supply Line after its completion and acceptance by the Seller. <br /> <br />D. The Buyer is responsible for compliance with the Laws and Regulations that apply to the <br />use of the Reclaimed Water from the Treatment Plant at the facility. This includes, but is not limited <br />to, implementing an operation and maintenance plan (the "O&M Plan") for the Buyer's use of the <br />Reclaimed Water. The initial O&M Plan is attached as Exhibit B. The Buyer may modify this <br />O&M Plan or adopt a new O&M Plan, subject to regulatory approval and compliance with all Laws <br />and Regulations. <br /> <br />Section 3.03. Term; Termination. <br /> <br />A. The initial tcrm of the Contract is 20 years commencing on the Effective Date. This <br />Contract can be renewed or extendcd with the mutual consent of the parties. The water service to <br />be provided by the Sellcr will commence on June 1,2000. <br /> <br />B. The Seller may suspend the supply of Reclaimed Water under this Contract, without <br />terminating the Contract, in the following circumstances: <br />1. The Buyer fails to pay any amount billed by the Seller to the Buyer under Section 1.04 of <br />this Contract, unless the Buyer has notified the Seller, in writing prior to the deadline in the <br />Seller's billing notice, of a bona fide dispute concerning the bill. <br />2. The Buyer fails to comply with any of the Laws and Regulations that apply to the Buyer's <br />use of the Reclaimed Water, including but not limited to those contained in Title 30, Chapter <br />210 of the Tcxas Administrative Code. <br /> <br />4 <br />