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6-28-99 backflow of water or the contamination of water in the Seller's distribution system, and to protect and secure the metering equipment and other devices. Section 1.03. Maintenance and Testing of Metering Equipment. A. The Seller will maintain the metering equipment within the Accuracy Tolerance, and will test the metering equipment for accuracy at least once every 12 months. B. The Buyer may have the metering equipment independently tested at its own cost with 48 hours notice to the Seller. The Seller may attend any such test. If a test shows an inaccuracy in the metering equipment, the Seller shall adjust the monthly billing of a period extending back to the time when the inaccuracy began if such time is ascertainable, or if such time is not ascertainable, for a period extending back to the last test of the metering equipment or 120 days, whichever is shorter, in accordance with the percentage of inaccuracy found during the test, whether above or below the correct volume. In the event the meter fails to register for any period, the Seller shall calculate the usage during the time of meter failure to be the amount of Reclaimed Water furnished during the same period of the previous year, or as otherwise mutually agreed upon by the parties. The Seller shall recalibrate or replace any inaccurate metering equipment at its expense. Section 1.04. Billing. The Seller will furnish the Buyer with an itemized monthly billing statement showing the volume of Reclaimed Water supplied in 1,000 gallon increments and the amounts due. Article 2. Obliiations of the Buyer Section 2.01. Payment. The Buyer will pay to the Seller at the Seller's billing offices in San Marcos, Texas, within twenty-five days after receipt of the itemized statement each month: (a) an initial rate of$. 69 per 1,000 gallons ofRec1aimed Water furnished, during the period beginning with the startup of Facility operations and extending through December 31, 2011, and (b) thereafter, at the prevailing rate for the sale of Reclaimed Water for all Reclaimed Water customers as established by the Seller's governing body. In addition, the Buyer will pay to the Seller the amounts of all federal, state, and local taxes, fees, and charges that may be applicable to the provision ofRec1aimed Water under this Contract. Section 2.02. Compliance with Seller's Regulations. The Buyer will comply with the SeIler's ordinances and regulations governing the use and supply of water that are currently in effect and as they may be adopted or amended from time to time. Section 2.03. Primary Supply. The Buyer agrees to use the Seller as its primary source of water for the Facility's operating purposes, provided the Seller is not in default under this Contract. Section 2.04. Construction of Supply Line. 2