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<br />6-28-99 <br /> <br />Article 3. Miscellaneous Provisions. <br /> <br />Section 3.01. Conditions Precedent. <br /> <br />A. The performance of Hays Energy's obligations under this contract is conditioned upon <br />Hays Energy's decision on whether to locate the Facility at the location depicted on the attached <br />Exhibit A. Hays Energy will make this decision no later than July 31, 1999. Hays Energy will <br />notify the City immediately of Hays Energy's decision when it is made. <br /> <br />B. The City's provision of wastewater treatment services under this Contract is contingent <br />on the satisfactory completion of the construction of the Wastewater Line by Hays Energy. <br /> <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 and the Injection Wells. <br /> <br />B. Hays Energy is responsible for compliance with the Laws and Regulations that apply to <br />the construction of the 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 />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 /> <br />5 <br />