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AGREEMENT CONCERNING RELEASE OF CERTIFICATED SERVICE AREA AND <br />MODIFICATION OF WHOLESALE TREATED WATER CONTRACT <br />STATE OF TEXAS § <br />§ <br />COUNTY OF LAMAR § <br />COMES NOW the City of Paris, Texas, (hereinafter, "the City,") by and through its duly <br />authorized representative, and Lamar County Water Supply District, (hereinafter, "the District"), <br />by and through its duly authorized representative, (collectively, the "Parties"), setting forth the <br />following: <br />WHEREAS, the City is a home rule municipal corporation owning and operating a water <br />supply and treatment system and holding water utility certificate of convenience and necessity <br />("CCN") number 10480; <br />WHEREAS, the City provides retail water utility service to its customers and further is a <br />wholesale supplier of water to the District; <br />WHEREAS, the District is a Conservation and Reclamation District and political <br />subdivision of the State of Texas owning and operating a water distribution system; <br />WHEREAS, the District purchases water from the City under an agreement entitled <br />"Wholesale Treated Water Contract" (hereinafter, "the Contract,) executed May 8, 2006; <br />WHEREAS, subject to the Contract, the District possesses all rights granted by State law <br />to a person holding a water utility CCN to provide retail water utility service to customers within <br />its certificated service area; <br />WHEREAS, Daisy Farms, LLC ("Daisy Farms") acquired approximately 5,299 acres in <br />Lamar County near the intersection of State Highway 19/24 and FM 2036 to develop a <br />commercial dairy farm being more particularly described in Exhibit "A" attached hereto and <br />incorporated herein by reference(the "Property"); <br />WHEREAS, the City and Daisy Farms plan to execute a Water Supply Agreement by <br />which the City would provide a supply of treated water to the Property through a pipeline to be <br />constructed between the City's treated water distribution system and a meter to be set at the site <br />of the commercial dairy Property; <br />WHEREAS, the Property is located in an area currently within the certificated area of the <br />District and the City has requested the District to release the Property from its certificated area so <br />that the City can begin to provide treated water to the Property; <br />WHEREAS, the District has agreed to decertify the Property from its Certificated Service <br />Area; <br />EXHIBIT -L Page I 1 <br />