Res 1999-132 - Laserfiche WebLink

Home Browse Search

94; 6-28-99 RETAIL WATER SUPPLY CONTRACT This Retail Water Supply Contract (the "Contract") is made and entered into on J' CA. VI.(. 2. q; I q "PC}, 1999 (the "Effective Date") between Hays Energy Limited Partnership, a Delaware limited partnership (the "Buyer") and the City of San Marcos, Texas (the "Seller"). WITNESSETH WHEREAS, the Buyer is developing an electric generating facility (the "Facility") in Hays County, Texas that requires a supply of water for operating purposes; and WHEREAS, the Seller owns and operates a wastewater treatment plant (the "Treatment Plant") with a capacity capable of supplying to the Buyer the amount of water specified in this Contract; and WHEREAS, the Buyer has investigated the suitability of using water from the Treatment Plant (the "Reclaimed Water") in the Facility for operating purposes, and has satisfied itself as to this suitability; and WHEREAS, the Seller desires to sell and the Buyer desires to purchase Reclaimed Water under the terms and conditions specified in this Contract; NOW, THEREFORE, in consideration of the foregoing and the following mutual promises, covenants, benefits and agreements contained herein, the Seller and the Buyer agree as follows: Article 1. Provision of Water by the Seller. Section 1.01. Quantity of Water to be Supplied. The Seller agrees to provide to the Buyer, and the Buyer agrees to purchase from the Seller, the fJist 3,600,000 gallons (the "Base Quantity") of Reclaimed Water produced each day at the Treatment Plant for use in the Facility for operating purposes. The Reclaimed Water will be delivered at a location (the "Point of Delivery") to be designated by mutual agreement of the Seller and the Buyer. The Seller does not guarantee the availability of this specific quantity of water each day; however, to the extent the production of reclaimed water at the Treatment Plant meets or exceeds the Base Quantity, the Seller will provide the Base Quantity to the Buyer. The Buyer may purchase additional quantities of Reclaimed Water from the Seller at a market price to the extent they are available from production at the Treatment Plant. Section 1.02. Metering Equipment. The Buyer will obtain, install and convey to the Seller metering equipment and devices which meet the Seller's standard specifications for measuring within a tolerance of2% (the "Accuracy Tolerance") the quantity of Reclaimed Water delivered to the Point of Delivery, together with devices and equipment of standard type for the proposed application to limit, measure, and record the rate of flow at the Point of Delivery, to prevent the 1