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• <br />3.02 Demand Allocations <br />(i) Each party may take water from the Project at that <br />party"s Point of Delivery, but neither party.®ay take <br />water from the Project to exceed the Production Capacity <br />of the Project multiplied by that party"s then-current <br />Demand Allocation Factor, nor may either party take <br />water from the Project at a rate which exceeds the <br />Pumping Capacity of the Project multiplied by that <br />party"s then-current Pumping Allocation Factor. Houston <br />shall monitor and control the amounts of water and the <br />rates at which water is taken by the .parties. The <br />monitor and control measures may include throttling <br />devices for controllers, special oper'atin$ ~r'ocedures or <br />other similar measures. <br />(ii) In the event that the Project is not being operated at <br />its Production Capacity or its Pumping Capacity, either <br />party may, with agreement of the other party"s Director <br />use a portion of all the unused Production Capacity or <br />Pumping Capacity of such other party. During a billing <br />period when such additional Production Capacity or <br />Pumping Capacity is used, the party using the .same shall <br />be subject to paying the Excess Production Feed"or the <br />Excess Pumpage Fee, or both, as the case may be. Such <br />fees shall be established as set forth in Section 4.05 <br />of this Contract. <br />3.03 Changes is Ai3ocatian Factors <br />(i) In the event that Houston undertakes an expansion of the <br />Project, the Authority shall have the option of <br />increasing its Demand Allocation Factor, its Pumping <br />• •~~ Allocation Factor or both, by paying to Houston a sum or <br />'. - -- - ~_..sums of money representing an additional capital <br />- contribution to the cost of a future expansion of~t~ <br />Southeast Water Purification Plant Project to increase <br />its Production Capacity and its Pumping Capacity. <br />Houston shall give one hundred fifty (150) days" advance <br />written notice to the Authority flf any proposed fnt~ure <br />enlargement or expansion of the .Project.. At-.any ~im•e <br />during the one hundred fifty (i50) days" notice period, <br />the Authority shall be authorized to give notice of <br />intent to enter into such agreement. Houston and the <br />Authority agree, in giving or responding to any such <br />notice, to act timely and in good faith in order to <br />permit an orderly enlargement or expansion of the <br />Project for the lowest cost reasonably obtainable <br />without causing undue delay. <br />12 <br />