2012-02-28_REVISION - M1980244 (79)

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The term "Price of Gold" shall mean the average of the daily London Final Gold Quotations (aka "P. M. fix") as published in The Wall Street Journal for one troy ounce of refined gold stated in United States dollars. If the London Final Gold Quotation should cease to be published, Applicant and City shall agree upon a replacement quotation that most nearly approximates the London Final Gold Quotation to be used as a substitute. The "Base Rates" shall be changed, if applicable, as of the meter reading dates immediately after January first of each calendar year. 5. Subject to Applicant's right of extension described in this paragraph 5, the obligation of the City to supply water to Applicant at both taps shall terminate on December 31, 2024. Unless extended by Applicant, Applicant's obligation to make any payments hereunder shall also expire on December 31, 2024. Applicant shall have the right to extend the City's supply of water at both taps for "Base Rates" to be negotiated in good faith, based upon comparable rates in the market at that time for comparable water for an additional term of up to 25 years beginning on January 1, 2025 upon written notice delivered to the City on or before July 1, 2023. 6. The City shall not be required to supply more than 800 gallons per minute nor more than 1300 acre feet per year. If Applicant requires more than 800 gallons per minute, or more than 1300 acre feet per year, and the City, after good faith negotiation, does not wish to or cannot supply such excess needs, or in the event the City cannot supply 800 gallons per minute and/or 1300 acre feet per year because of limitations, then and in either event, the City will allow Applicant to "wheel" (transport) water acquired from third parties through the Altman Pump Station and the pipeline from the Altman Pump Station to Applicant's meter at the top of Victor Pass, for a charge of $0.08 per 1,000 gallons plus all direct costs of electrical, operations and maintenance, associated with that usage. This "wheeling" right shall not apply to Applicant's interest in the Altman Water Rights, only to water purchased from third parties. The City and Applicant agree to cooperate in a fair and prompt manner to enable Applicant to obtain one or more contracts for water and water rights from third parties suitable to provide a reliable water supply for Applicant's purposes. This supply shall only be used if and to the extent the City. does not wish to or cannot provide the full amount of water requested by Applicant. Water purchased from third parties is intended to be carried through the City's Altman Pump Station and pipeline under the "wheeling" provisions of this paragraph 6. 7. The City's obligation to sell and deliver water hereunder shall be suspended to the extent and for that period that a foreseeable water shortage exists within the City and such water is required to supply the needs of the City residents serviced by the City. A foreseeable water shortage is defined as a shortage in the City's available water supplies resulting from circumstances and causes beyond the City's control and such shortage causes the City to impose stringent water use restrictions upon City residents in order to preserve the public health. The City shall notify Applicant promptly whenever such foreseeable water shortage appears to be reasonably foreseeable. The City shall 122-68 w:\Vctorlapplication 4.99 -3-