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<br />IV. <br /> <br />OPERATOR will procure, to OWNER'S account, supplies, materials, equipment, <br />and services, utilizing funds allocated in OWNER'S approved budget, <br />attached hereto as Exhibit "B", for the routine operation of OWNER'S <br />transmission system. OPERATOR shall conform to all applicable purchasing <br />laws of the State of Texas in the procurement of all supplies and materials <br />necessary for the operation of the transmission system. <br /> <br />V. <br /> <br />Repairs, adjustments, and operation of the system outside of the scope of <br />services outlined in Section II of this Agreement will be billed to OWNER on <br />an actual cost basis. Whenever possible, OPERATOR will obtain advance <br />approval from OWNER prior to beginning non-routine work; however, OPERATOR <br />is authorized to proceed, unless specifically directed otherwise, in those <br />cases deemed necessary by the OPERATOR. <br /> <br />VI. <br /> <br />OPERATOR will exercise good judgement in the replacement of equipment under <br />this Agreement. OWNER will not hold OPERATOR responsible for guarantees or <br />warranties for such equipment. The OPERATOR will make responsible efforts <br />to secure normal guarantees to OWNER. <br /> <br />VII. <br /> <br />OPERATOR is retained by OWNER only for the purpose and to the extent set <br />forth in this Agreement, and his relation to OWNER, during the period of <br />this Agreement, is that of an independent enti ty, and he shall be free to <br />dispose of such portion of his entire time not required to satisfy the terms <br />of this Agreement in any manner he deems advisable. OPERATOR shall not be <br />considered an employee of OWNER. <br /> <br />VIII. <br /> <br />OPERATOR agrees that all customers of OWNER will receive equal treatment <br />under the terms of this Agreement. <br /> <br />IX. <br /> <br />OPERATOR shall <br />governing body <br />guidelines, as <br />conflicts. <br /> <br />be required to operate within the current guidelines of its <br />and shall notify OWNER of any possible conflicts with such <br />soon as practicable after the occurrence of said possible <br />