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<br />6-28-99 <br /> <br />backflow of water or the contamination of water in the City's distribution system, and to protect and <br />secure the metering equipment and other devices. <br /> <br />Section 1.03. Maintenance and Testing of Metering Equipment. <br /> <br />A. The City will maintain the metering equipment within the Accuracy Tolerance, and will <br />test the metering equipment for accuracy at least once every 12 months. <br /> <br />B. Hays Energy may have the metering equipment independently tested at its own cost with <br />48 hours notice to the City. The City may attend any such test. If a test shows an inaccuracy in the <br />metering equipment, the City shall adjust the monthly billing of a period extending back to the time <br />when the inaccuracy began if such time is ascertainable, or if such time is not ascertainable, for a <br />period extending back to the last test of the metering equipment or 120 days, whichever is shorter, <br />in accordance with the percentage of inaccuracy found during the test, whether above or below the <br />correct volume. In the event the meter fails to register for any period, the City shall calculate the <br />usage during the time of meter failure to be the amount of Wastewater furnished during the same <br />period of the previous year, or as otherwise mutually agreed upon by the parties. The City shall <br />recalibrate or replace any inaccurate metering equipment at its expense. <br /> <br />Section 1.04. Alternative Process; Treatment Plant Modifications. <br /> <br />A. The parties anticipate that from time to time, the Routine Treatment may not be <br />sufficient, and an alternative treatment and disposal process may be necessary for portions of the <br />Wastewater. The City will determine whether such a process is necessary after consultation with <br />Hays Energy. The alternative process may consist of the use of one or more injection wells (the <br />"Injection Wells") to be installed by the City; if this is the case, the City agrees to 1) apply to the <br />Texas Natural Resource Conservation Commission ("TNRCC") for permits for the Injection Wells, <br />2) have the Inj ection Wells designed and constructed in accordance with all permit requirements, and <br />3) use the Injection Wells when necessary to comply with Laws and Regulations that apply to the <br />Treatment Plant. <br /> <br />B. In the event the Wastewater is contributing significantly to any infraction of permit <br />requirements for the Treatment Plant, or the TNRCC directs the City to modify chemical parameters <br />or other characteristics of the Treatment Plant effluent that are contributed to significantly by the <br />Wastewater, the City may make modifications to the Treatment Plant (the "Plant Modifications") <br />necessary to ensure compliance with the permit requirements at the expense of Hays Energy. As an <br />alternative, Hays Energy may, at its option and with written notice to the City, diligently proceed <br />to design, construct and implement measures at the Facility, which will be subject to review and <br />approval by the City, to ensure compliance with the City's permit requirements. <br /> <br />Section 1.05. Billing. The City will furnish Hays Energy with an itemized montWy billing <br /> <br />2 <br />