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<br />e <br /> <br />e <br /> <br />with all applicable rules, regulations, and laws of the United States, the State of Texas, and any <br /> <br />other governmental or reguiatory agency having jurisdiction. <br /> <br />Section 1.03. Authority shall accept from City the flow of Domestic Sewage/Municipal <br /> <br /> <br />Waste collected and transported by the City's Sanitary Sewage Collection and Transportation <br /> <br />Facilities described and defined in Exhibit "C" attached hereto and made a part hereof for all <br /> <br /> <br />purposes. <br />Section 1.04. City agrees to reimburse Authority for any fine or penalty assessed against <br /> <br /> <br />or imposed upon the Authority by any governmental agency having jurisdiction, to the extent that <br /> <br /> <br />City's failure to comply with the provisions contained in..section 1.01 above, or other violation of <br /> <br /> <br />this Agreement, proximately caused the assessment or imposition of the fine or penalty. <br /> <br /> <br />Whenever a governmental agency having jurisdiction takes any action against Authority that may <br /> <br /> <br />result in City's obligation to reimburse the Authority under the provisions of this Section, <br /> <br /> <br />Authority shall promptly notify City of such action and City shall have the right, at its own cost <br /> <br /> <br />and expense, to participate in the defense of such action. In the event Authority and City cannot <br /> <br /> <br />agree on whether the City's failure to comply with Section 1.01, or any other violation of this <br /> <br /> <br />Agreement caused the assessment or imposition of the fine or penalty, the matter may, if agreed to <br /> <br /> <br />by the Authority and the City, be submitted to arbitratio~ pursuant to Section 4.01. <br /> <br /> <br />Section 1.05. If City delivers wastewater through the Point of Delivery that exceeds the <br /> <br /> <br />parameters established under Section 1.01 and such wastewater causes damage to the Plant or an <br /> <br /> <br />inability to process all of the wastewater and discharge the treated eftluent in accordance with <br /> <br /> <br />Authority's Pennits, City shall pay one hundred percent (100%) of all costs and expenses incurred <br /> <br />by Authority to repair any such damage and any other cost and expense incurred by Authority <br /> <br /> <br />associated with the treatment and disposal of such wastewater. <br /> <br />OCA\LaPORT. WT AFINAlJl2/07198 <br /> <br />3 <br />