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e e (21) Operation and Maintenance Expenses - all costs of providing Water to Participants under the Water Sales Contracts, except for costs funded by Bond proceeds; debt service on the Authority's Bonds and amounts required to fund any reserve fund, contingency fund, rebate fund, or any other fund established under any Bond Resolution, including without limitation all Operation and Maintenance Costs billed to the Authority by Houston, all Operating and Maintenance Costs incurred by the Authority related to the Transmission system and the Distribution System, and all administrative costs incurred by the Authority (including insurance). (22) "Participants" - the city and all of the other parties named in Section 2.01 hereof who have executed a Contract substantially similar to this Contract. The terms also includes any customer who executes a Water Sales Contract pursuant to the provisions of Section 11.09 hereof from and after such execution. (23) Production Capacity - the maximum rate of production of treated surface Water from the Southeast Plant, which equals 120 MGD. (24) Pumpina Allocation Factor - the percentage of the Southeast Plant's pumping and related treated Water storage capacity which the Authority is entitled to use at any given time. The initial Pumping Allocation Factor for the Authority will equal the actual construction cost of the pumping and storage facilities paid by the Authority divided by the total actual construction cost for such pumping and storage facilities. The initial Pumping Allocation Factor is 4,875%. (25) Pumpina Capacity - the maximum rate of delivery of treated surface Water from the Southeast Plant, which equals 200 MGD (expressed as a peak hour pumping rate). (26) Service Area - that area described in Sections 3 and 5(b) of the Act. (27) Southeast Plant - the Project described in the Houston Contract generally, and specifically described in Exhibit "B" to the Houston Contract. (28) Subsidence District - the Harris-Galveston Coastal Subsidence District. (29) Transmission Svstem - those facilities, including pipelines, easements, pumping, and other devices to deliver treated surface Water from the take point at the Southeast Plant, shown on Exhibit "N attached to the Houston Contract, to that point shown Exhibit "C" of this Contract, which includes necessary storage and pumping facilities to delivery treated surface Water to each Participant. (30) "Water" - the term "Water" means potable treated surface Water that has been supplied by Houston in accordance with the Houston Contract. (31 ) Water Sales Contracts - the Contract, the contracts between the Authority and the other Participants named in Section 2.01 of this Contract, and any Contract between the Authority and a new Participant. All Water Sales Contractsss are and shall be in a form substantially similar to this one." 5