Condition of District Water System and Water Rights Sample Clauses

Condition of District Water System and Water Rights. District shall be solely responsible for any and all losses, labilities, damages, costs, and claims of any and every kind whatsoever related to the existence and condition of the District Water System and the Water Rights (a “System Loss”), other than a condition caused by Provider’s failure to operate and maintain the District Water System in accordance with the terms of this Agreement. District’s responsibility with respect to any System Loss includes, but is not limited to, any design or construction defect of the District Water System except those portions of the District Water System repaired or replaced by Provider pursuant to Section 4.3, any inadequacy of the Water Rights or the District Water System as constructed by District but not including those portions of the District Water System repaired or replaced by Provider pursuant to Section 4.3, any violations of applicable laws or regulations with respect to the District Water System or Water Rights not caused by Provider’s operation and maintenance of the District Water System, and any damage or destruction to the District Water System or Water Rights by fire or other casualty or contamination not caused by Provider’s operation and maintenance of the District Water System. Providers’ obligations with respect to operating and maintaining the District Water System hereunder include the obligation to maintain and repair the District Water System due to normal wear and tear caused in the ordinary course of business and to replace the District Water System as necessary based on its useful life in order to maintain the functionality required to provide water service to the Property. In all other instances, except as otherwise provided in Section 4.6, District shall diligently and continuously prosecute the necessary reconstruction, replacement, decontamination or other efforts required to restore the Water Rights and District Water System to enable District and Provider to provide water service as soon as practicable to the Property in accordance with the terms of this Agreement and all applicable laws and regulations.
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