18-TCEQ APPLICATION FOR AMENDMENT TO WATER RIGHT

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SUPPLEMENT TO APPLICATION TO AMEND CERTIFICATE OF ADJUDICATION NO. 02-4940A CITY OF PARIS, TEXAS I. Introduction In addition to the TCEQ Application Form (Form 10201) for the City of Paris' application to amend its Certificate of Adjudication No. 02-4940A (the "Application"), a narrative description of the permit sought by the Application is found below. This supplement to the Application also includes, attached hereto, the following documents: A. Certificate of Adjudication No. 02-4940 B. Certificate of Adjudication No. 02-4940A C. TCEQ Letter Approving City's Water Conservation and Drought Contingency Plans D. Minutes of Region D Planning Group Meeting on May 16, 2012 E. Paris City Council Authorization to File Application to Amend COA 02-4940A II. Background The City of Paris, Texas (the "City") is a Home-Rule Municipal Corporation located in Lamar County, Texas. The City is the owner of Certificate of Adjudication No. 02-4940 authorizing it to impound up to 124,500 acre-feet of water within the Pat Mayse Reservoir in Lamar County for municipal and industrial purposes. A copy of COA 02-4940 is included herewith as Attachment A. In 2000, the City applied for and received an amendment to Certificate No. 02-4940, No. 02-4940A, authorizing the use of up to 20,000 acre-feet of water per annum for industrial purposes in the Sulphur River Basin in Lamar County. This amendment was issued without notice or opportunity for hearing pursuant to Water Code Sec. 11.085 (v)(4). A copy of COA 02-4940A is included herewith as Attachment B. Pursuant to its authorization, the City entered into an agreement with Panda Paris Power, L.P. (subsequently, Lamar Power Partners and now NextEra Energy Resources) to provide up to eight million gallons per day of raw water for industrial use in the Sulphur River Basin in Lamar County, Texas. The City has been approached by Daisy Farms, LLC ("Daisy Farms") to enter into an excess raw water supply agreement for that amount of unused or excess raw water out of NextEra's eight million gallons per day allotment for use at its commercial dairy operation in Lamar County. Daisy Farms is in need of a raw water supply for agricultural use at its facilities, which are located within that portion of Lamar County in the Sulphur River Basin. Because the City's COA 02-4940A authorizes use of water within the Sulphur River Basin for industrial purposes only, the City requests an amendment to its COA 02-4940A to add an agricultural purpose of use to provide water to Daisy Farms pursuant to Texas Water Code Section 11.122. 3752525.1 g 1