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COVENANTS AND AGREEMENTS <br /> 1. Water Supply. Lafayette shall provide water legally available for diversion <br /> at Louisville's Pipeline in El Dorado Springs in amounts five percent (5%) greater than the <br /> amount Lafayette is requesting to be treated by Louisville. Lafayette may also utilize water <br /> available by virtue of its share ownership interest in FRICO, as further referenced in <br /> Paragraph 9. Lafayette may also provide water legally available for diversion at alternative <br /> diversion points should the Louisville Pipeline be unavailable for use. Water provided by <br /> Lafayette for diversion at the Louisville Pipeline intake on South Boulder Creek shall be <br /> conveyed to Louisville Reservoir for immediate and instantaneous treatment to the extent <br /> possible. It is understood that operational requirements may cause short duration, <br /> temporary storage of Lafayette water in Louisville Reservoir. The parties agree that this <br /> storage will be allowed only to the extent that the water provided cannot be used <br /> instantaneously due to Louisville's inability to treat the water at the rates and in the <br /> quantities identified in Paragraph 4. However, in no case shall more than six (6) acre feet <br /> of Lafayette's water be stored in Louisville Reservoir at any time. Any water so stored <br /> shall be immediately released from the Reservoir and treated as soon as the Louisville <br /> treatment plant is capable of treating such water. The additional five percent of surface <br /> water provided to Louisville is for any and all losses in the Louisville Pipeline and <br /> Louisville treatment plant and transmission pipes needed to convey the water to the Point <br /> of Connection. <br /> 2. Point of Connection. Lafayette shall contract for the engineering and <br /> construction of the interconnection of the water systems of the two Parties ("Point of <br /> Connection") and shall be responsible for, the payment of any and all costs associated <br /> therewith, whether incurred by Lafayette or by Louisville. Lafayette shall be responsible <br /> for all maintenance of the interconnection and costs associated therewith during the term <br /> of this agreement. A schematic drawing showing the location and components for the <br /> Point of Connection will be provided to Louisville for its review and approval. Lafayette <br /> shall submit a schematic drawing to Louisville within (30) thirty days after this agreement <br /> is signed by both parties. Louisville shall approve or disapprove the location and <br /> components for the point of connection within (30) thirty days of receipt. Once prepared, <br /> 2 <br />