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all necessary State permits far Sludge application and Effluent irrigation. City shall maintain its <br />equipment in proper working order except that Lessor shall be responsible for the cost of repairing <br />damage or loss to any City equipment or pipelines on the Application Site which are damaged or <br />lost as a result of Lessor's or Lessor's agents or representatives negligence or intentional wrongful <br />act. City shall have right of access to Application Site twenty-four (24) hours a day, seven (7) <br />days per week for the purpose of delivering and applying the Sludge and Effluent to the <br />Application Site, inspecting the Application Site, maintaining, repairing and replacing pipelines or <br />equipment. City shall be permitted to erect a small maintenance storage building on the <br />Application Site if desired. City shall close gates when entering or leaving the Application Site. <br />Sec. 5.2. Indemnification. City hereby releases, indemnifies and holds Lessor harmless from <br />and against any claims, losses or damages brought against Lessor by a third party as a direct result <br />of the City's application of Sludge or Effluent on the Application Site. This indemnification shall <br />apply only to those losses or damages for which Lessor becomes liable pursuant to a final <br />judgment from a court of competent jurisdiction. <br />Sec. 5.3 Ownership ofEquipment. City shall retain ownership of all buildings, equipment and <br />pipelines which City installs on Application Site and may remove the same at any time during the <br />primary, renewed or extended term of this renewal agreement without reducing City's obligation <br />to perform its obligations under this contract. Lessor shall grant City easements 20 feet on each <br />side of buried pipelines and under any City building erected and the same shall be depicted on an <br />easement and recorded in the Deed Recards of Lamar County, Texas, at such time as construction <br />is completed. Upon such time that City no longer has a need for easements upon and across <br />Lessor's property; Lessor may request the City to quitclaim the easement property back to Lessor. <br />Sec.5.4. Crops or Hay Fields. City makes no warranty, express or implied, as to the <br />appropriateness or fitness of the Sludge or Effluent for fertilizing or imgating the land underlying <br />4 <br />