2012-094 RES AUTHORIZING/APPROVING AGREEMENT BY AND AMONG COP, NEXTERA ENERGY AND DAISY FARMS

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EXCESS RAW WATER SUPPLY AGREEMENT THE STATE OF TEXAS § COUNTY OF LAMAR § THIS EXCESS RAW WATER SUPPLY AGREEMENT (this "Agreement") is made and entered into by and among the City of Paris, Texas, a Home-Rule Municipal Corporation with its principal office located at 135 S.E. lst Street, Paris, Lamar County, Texas 75460 (the "CITY"), Daisy Farms, LLC, a Texas limited liability company with its principal office located at 12750 Merit Drive, Dallas, Texas ("DAISY"), and NextEra Energy Resources, LLC, a Delaware Limited Liability company with its principal office at 3205 FM 137 Paris, Texas 75460 ("NEXTERA"). AGREEMENT WHEREAS, the City of Paris is the owner of Certificate of Adjudication No. 02-4940, as amended, authorizing, among other uses, the use of up to 20,000 acre-feet of water per annum for industrial purposes in the Sulphur River Basin in Lamar County (the "CITY'S Water Right"); and WHEREAS, on September 16, 1998, the City of Paris entered into a Raw Water Supply Agreement (the "Original Agreement") with Panda Paris Power, L.P. ("Panda") for a supply of up to eight (8) million gallons of raw water per day pursuant to the CITY' S Water Right; and WHEREAS, Panda subsequently assigned or transferred its rights in the Original Agreement to Lamar Power Partners and then to NEXTERA, the current owner/operator of a natural gas fired power plant located at CR 21500 and FM 137, City of Paris, Lamar County, Texas (the "NEXTERA Power Plant"); and WHEREAS, NEXTERA has been approached by DAISY, a commercial dairy operation located at FM 2036 and SH 19/24 South, Lamar County, Texas, about contracting with the CITY for NEXTERA'S excess or unused daily raw water supply from the CITY; and WHEREAS, the CITY is willing to sell a supply of raw water to DAISY which is over and above the actual supply taken by NEXTERA on a daily basis but which does not exceed the maximum daily contracted amount of eight (8) million gallons per day; and WHEREAS, DAISY and NEXTERA will be responsible for designing and installing the necessary water lines, pumps, meters, valves, power supply and other improvements ("New Facilities") necessary to transport and meter a supply of raw water from the NEXTERA Power Plant to DAISY's facility located at FM 2036 and Highway 19/24 South Lamar County, Texas (the "DAISY Facility"), subject to review and permitting by the CITY; 1