25-AGREEMENT BETWEEN THE CITY OF PARIS AND DAISY FARMS

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Rcrte of Flolv means usage on a per minute basis (i.e., gallons per minute (gpm)). Rate Yecrr meaiis each twelve (12) month period beginning June 1 and ending May 31 of the following calendar year. Raii, Wnrer means water that is in its natural state prior to treatment. Regulatory Requirements means all applicable requirements and provisions of federal, state, county and municipal constitutions, charters, laws, statutes, rules, regulations and ordinances enacted or issued frotn time to time, including, without limitation, all applicable sections of the Texas Water Code and the rules and regulations of the Texas Commission on Environmental Quality, and the Texas Administrative Code, and all judicial and administrative orders, judgments, and decrees of any governinental authority having jurisdiction concerning the matters contained hcrciil issucd from time to time. Retzu-n Floivs means 1'reated Water supplied to llaisy Farms by Paris that is beiieficially used but not fiilly consumed and that is subsequently returned to any watercourse. Secoiidary Rate Terna means the period commencing immediately following the Iiiitial Rate Period and continuing for five (5) consecutive Rate Years (Yeais 6 through 10 in Exhibit B). TCEQ means the Texas Commission on Environmental Quality, or any successor agencies. Test Yecrr means a twelve (12) month period from October 1 through Septenlber 30 immediately preceding the preparation of a Cost of Service Study, adjusted for known and measurable changes that will serve as the basis for the Cost of Service Study. Ti°ealed Water means water treated by Paris so that it is potable water meeting the minimum water quality requirernents for human consumption as prescribed from time to time by the Texas Commission on Lnvironmental Quality or other appropriate regulatory agency. Treated Water• Trarzsmission Line means the fourteen-inch (14") water transmission line that is owned, operated, and maintained by Paris up to the Delivery Point, and is to be installed in the genera] location fi•om the Paris Treated Water System's southern terminus near the Chisum High School campus in Yaris, Lamar County, Texas and extended south to Daisy Farms' dairy farm located near the intersection of State Highway 19/24 and FM 2036, Lamar County, Tcxas, as shown on EYhibit A. volLrJiae Chcu•ge meaiis the charge calculated by applying the Volume Rate to the number of gallons of Treated Water provided to Daisy Farms by Paris as measured by the Meter(s) and billed on a monthly basis. Volan7ze Rate means the dollar amount per one thousand (1,000) gallons applied to Daisy Farms' metered usage of Treated Water in order to calculate the Volume Charge. Wccter• means either Raw Water or Treated Water, or both Raw and Treated Water, as indicated by the co»text in which the word appeais. Page 4 of 23 201