Exercise of Option; Conditions; Water Supply Contract. (i) At any time during the term of this Option, Customer may exercise its option to purchase on a take or pay basis raw water in any amount up to the Option Quantity by giving the Authority ninety (90) days’ written notice of its intent to exercise the Option and the execution of a Water Supply Contract as provided hereinbelow. Such amount may be less than, but may not be more than, the Option Quantity. The written notice shall state (A) the amount of water, in MGD, that Customer wishes to purchase, (B) the proposed point of delivery for such water, and (C) the proposed mechanism for financing the delivery facilities required to facilitate the delivery of water from the Authority’s existing water delivery system to Customer.
(ii) Customer recognizes that the Parties must enter into a long-term raw water supply contract for the delivery of any such Option Quantity (the “Water Supply Contract”) as a condition to the exercise of the Option. The Water Supply Contract shall specifically provide the terms and conditions for the sale and delivery of raw water to the Customer. Such terms shall include, among other terms, (A) the method of financing water conveyance facilities required for the delivery of Option Water from the Authority’s system to the Customer’s delivery point, and (B) provision for payment by the Customer to the Authority of (1) Customer’s pro rata share of the design and construction of water conveyance facilities required for the delivery of Option Water from the Authority’s system to the Customer’s delivery point, (2) any costs associated with Authority infrastructure improvement studies, engineering, construction and improvements to Authority facilities required for the delivery of Option Water from the Authority’s system to the Customer’s delivery point, (3) reasonable legal, professional, and other administrative costs incurred by the Authority for negotiation and execution of the Water Supply Contract, and (4) Customer’s applicable portion of ongoing maintenance and operating expenses. The Parties acknowledge that the Authority currently has no remaining capacity to provide potable water at the Xxxxxx X. Xxxxxx Water Treatment Plant or any other Authority facilities, and that the provision of potable water to Customer under a long-term water supply contract will require the financing, design and construction of additional water treatment facilities pursuant to a special facilities agreement between the Authority, the Customer, and any othe...
