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_ I` ' ,t Alamance or OWASA if an emergency condition occurs that impacts those systems' abilities to supply water to their customers. Hillsborough can also buy from these systems if an emergency condition occurs in its own water system. The emergencies`; -y: can take many forms, including line breaks, pumping failures and shortfall or contamination of raw water supplies. Emergency water sales are subject to time limitations and to the need for the supplying water system to provide for its own customers' water demand before trying to meet the needs of other-water systems. '. The requirement far emergency water sales agreements is addressed in the phrase "Limited to all practicable extent" which is intended to allow water sales to even out-of-basin users in the event of emergencies. It would be impractical to limit out of basin transfer of water supplies in emergencies. The intent of this section is to set up a mechanism to limit all non- emergency out of basin water transfers. The mechanism far this limitation is a supplemental agreement with Hillsborough and Orange-Alamance which would prohibit Hillsborough from developing an out-of-basin customer base beyond that which presently exists. Additionally, the Orange Alamance Water System, which will likely become a customer or user of the new reservoir water supply, would be limited to a fixed time period and quantity for water sales to its out-of-basin customers. This agreement would allow additional water supplies to be allocated to Orange-Alamance out of basin customers in the short term. This will allow Orange Alamance to build up its out-of-basin customer base to a sufficient extent to be feasible for Orange Alamance to develop a new out-of-basin water supply source and treatment facility. Orange Alamance's out-of-basin customer base would then have a water supply system that would be independent of Eno Sasin water supplies. It is Orange-Alamance's stated intention, by resolution, to develop this out-af-basin water supply facility within the next fifteen year period. The limitation of fifteen years of out-of-basin transfer to Orange Alamance customers would be fixed by the supplement agreement. Commissioner Hartwell noted the document is clear in that there would be no future additional out-of-basin customers. It limits them to Orange-Alamance. He did not object to specific references being made to emergency transfers but does agree with the document as stated. .John Link stated that the supplemental agreement referred to on page three of the document needs to speak to those concerns. It needs to tie in the out-of- basin transfers to that of developing another resource as well as acknowledging the long standing commitment they made twenty years ago. All of this needs to be written into a separate agreement. Chairman Carey feels the document does speak to what has been agreed upon. He expressed a concern about the third paragraph on page 4 of the document that talks about the expansion of the reservoir as required to accommodate economic development. He understood there would be no worry about an expansion of the reservoir because the purchase of land would be taken care of with the million dollar bond issue that was passed and expansion means that there will be an additional cost far water to deal with economic development. He proposed that this issue be addressed before the document is approved. John Link stated this paragraph could be amended to indicate how a portion of the water would be used for economic development. It was originally intended to be a separate agreement. Paul Thames explained that the reference made to expansion dealt with the concept that the reservoir is planned to be constructed in two phases. The expansion is merely the construction of the final phase of the reservoir. Chairman Carey expressed a concern about other issues including the