11 - Water Service Agreement with Paris Generation LP

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2.1 CITY agrees to furnish and deliver, and PGEN agrees to purchase and take, a supply of water in accordance with the terrns and conditions hereof. Said supply of water shall be delivered by CITY to and taken by PGEN via a 12 -inch potable water service line which comes up to the southwest comer of the PGEN Power Plant and connects to a flinch ISCO Magnetic Flow Tube, which includes a flow versus time recording device and a pressure versus time recording device (the "Meter"). Should PGEN request that the Meter be replaced by a substitute meter, such replacement meter and all costs for the installation of the same shall be bome by PGEN. If the Meter, or any replacement meter, shall by CITY be deemed to need replacement or repair, then the cost of such shall be bome equally by CITY and PGEN. In either case, such meter replacement shall be accomplished without amendment to this Agreement by giving notice of the manufacturer's name, model and meter number of the new meter, which notice shall be delivered to the appropriate persons as provided for in Paragraph 10.8, and which shall be affixed to this Agreement as an appendix. Any replacement meters, and the location of such replacement meters, shall be selected by CITY and meet appropriate "American Water Works Association" standards. 2.2 The potable water furnished shall be used exclusively for the operation of PGEN'S electrical cogeneration Plant located at 301 Lake Crook Road, CITY, Lamar County, Texas. III. Quantities to be Furnished 3.1 The average daily supply of water furnished shall meet all reasonable requirements of PGEN, subject to such limitations and rates stated herein. The maximum volume of water to be delivered to and taken by PGEN during each Rate Year shall not exceed Five Hundred Million Gallons (500 MG) which consists of a firm water supply equal to Two Hundred and Twenty Million Gallons (220 MG) (the "Contracted Firm Water"), and the Option Water supply that PGEN has reserved and can elect to receive in whole or in part at any time during a Rate Year. In no instance shall PGEN require delivery of water under this Agreement in an amount exceeding One Million Five Hundred Thousand (1,500,000) gallons of water per day, or One Thousand Six Hundred Twenty -Five (1625) gallons of water per minute. 3.2 PGEN will advise CITY a minimum of forty-eight (48) hours prior to the implementation of any planned changes to PGEN'S operations that would materially affect the amount of water expected to be used by PGEN for any extended period of time. For the purpose of this Agreement, a material effect on water use means a change that would cause or contribute to PGEN'S water consumption varying by Two Hundred Fifty Thousand (250,000) gallons or more on a daily basis, excluding variances occasioned by operational dispatch, forced (unplanned and immediate) outages, or unscheduled maintenance outages. PGEN will notify CITY, as provided for in paragraph 10.8, by November 15th of each calendar year concerning PGEN'S then current schedule of planned outages for the following year. On the occurrence of a water consumption variance that materially and adversely impacts the integrity of the CITY'S water system, CITY maintains the right to limit any increase in water sold to PGEN and shall work with PGEN, in good faith, to meet PGEN'S water needs. ki