2011-072 RES AGREEMENT BETWEEN CITY OF PARIS AND DAISY FARMS

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Rate of Flow means usage on a per minute basis (i.e., gallons per minute (gpm)). Rate Year means each twelve (12) month period beginning June 1 and ending May 31 of the following calendar year. Raw Water 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 from 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 governmental authority having jurisdiction concerning the matters contained herein issued from time to time. Return Flows means Treated Water supplied to Daisy Farms by Paris that is beneficially used but not fully consumed and that is subsequently returned to any watercourse. Secondary Rate Term means the period commencing immediately following the Initial Rate Period and continuing for five (5) consecutive Rate Years (Years 6 through 10 in Exhibit B). TCEQ means the Texas Commission on Environmental Quality, or any successor agencies. Test Year means a twelve (12) month period from October 1 through September 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. Treated Water means water treated by Paris so that it is potable water meeting the minimum water quality requirements for human consumption as prescribed from time to time by the Texas Commission on Environmental Quality or other appropriate regulatory agency. Treated Water Transmission 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 general location from the Paris Treated Water System's southern terminus near the Chisum High School campus in Paris, 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, Texas, as shown on Exhibit A. Volume Charge means 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. Volume 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. Water means either Raw Water or Treated Water, or both Raw and Treated Water, as indicated by the context in which the word appears. Page 4 of 23