Common use of System Operation Clause in Contracts

System Operation. The Cooperative shall at all times maintain the Project in accordance with Prudent Utility Practices. The Cooperative shall adopt an adequate budget to pay for all Operation and Maintenance Costs for the Project as required to provide ProjectWater Service, as set forth in this Agreement. The Cooperative shall provide sufficient personnel,with appropriate experience and credentials to undertake all regulatory requirements imposed withregard to the Project, while providing for reliable operations and maintenance. If new regulatory requirements necessitate capital improvements, the Cooperative shall take all necessary actions to accomplish the same. The Cooperative shall be responsible for all regulatory violations, including compliance costs or penalties assessed for same, which arise out of or are solely createdthrough 1) material errors or omissions by its personnel or agents in the day-to-day operations of the Project; or, 2) the failure of the Cooperative to timely proceed administratively to undertakeor complete a requirement imposed by any regulatory agency in any consent order or Project Permit. The Cooperative shall maintain adequate catastrophic insurance on the Project on such terms and amounts as established by the Project Board.

System Operation. The Cooperative shall at all times maintain the Project Pro- ject in accordance with Prudent Utility Practicesprudent utility practices. The Cooperative shall adopt an adequate budget to pay for all Operation and Maintenance Costs for the Project as required to provide ProjectWater Project Wa- ter Service, as set forth in this Agreement. The Cooperative shall provide sufficient personnel,, with appropriate experience and credentials to undertake all regulatory requirements imposed withregard with regards to the Project, while providing for reliable operations and maintenance. If new regulatory requirements necessitate capital improvements, the Cooperative shall take all necessary actions to accomplish the same. The Cooperative shall be responsible for all regulatory violations, including compliance costs or penalties assessed for same, which arise out of or are solely createdthrough created through 1) material errors or omissions by its personnel per- sonnel or agents in the day-to-day operations of the Project; or, 2) the failure of the Cooperative to timely proceed administratively to undertakeor undertake or complete a requirement imposed by any regulatory regu- latory agency in any consent order or Project Permit. The Cooperative shall maintain adequate catastrophic insurance on the Project on such terms and amounts as established by the Project BoardCoopera- tive.