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4 <br /> Assume System liabilities. The County will assume all liabilities, including <br /> environmental liabilities, related to the ownership of the System, including, to the extent <br /> permitted by law, all liabilities related to the ownership of Existing System Assets which have <br /> accrued or which may accrue prior to the Transfer Date. <br /> The Parties, however, shall retain their individual liability, if any, under environmental <br /> laws and otherwise, related to their respective use of the System both before and after the <br /> Transfer Date (as, for example, any liability arising from their delivering, or causing to be <br /> delivered, Solid Waste to System Management Facilities). The Parties acknowledge that the <br /> County's assumption of liabilities as described in the preceding paragraph shall not limit, and is <br /> not intended to limit, the ability of any governmental authority to impose, or to seek to impose, <br /> environmental or other liability directly on a Party (as, for example, any liability accruing to the <br /> current owners of the Existing System Assets as a result of their status as owners prior to the <br /> Transfer Date). The County will not assume, and by this Agreement does not assume, any <br /> indebtedness of Carrboro or Chapel Hill. <br /> Acquire propeM. The County shall acquire real and personal property as it deems <br /> appropriate for System purposes. There shall be no restrictions on the County's acquisition of <br /> additional acreage at the existing landfill. The County states its current intention not to acquire, <br /> and its recommendation that future County Governing Boards not acquire, any of the properties <br /> known as the Blackwood and Nunn properties for System purposes. <br /> Provide for compliance with law. The County will comply, or cause there to be <br /> compliance, with all applicable laws, orders, rules, regulations and requirements of any <br /> governmental authority relating to the System. The County will also be generally responsible for <br /> solid waste reporting, planning, regulatory compliance and similar matters. Nothing in this <br /> Agreement, however, shall prevent the County from contesting in good faith the applicability or <br /> validity of any such law or other requirement, so long as the County's failure to comply with the <br /> same during the period of such contest will not materially impair the System's operation or <br /> revenue-producing capability. <br /> Make reports. The County will make, or cause to be made, any reports or audits <br /> relating to the System as may be required by law. The County, as often as may reasonably be <br /> requested, will furnish such other information as the County may have reasonably available <br /> concerning the System or its operation as the Advisory Commission or any Party may reasonably <br /> request. The County, which the Parties have designated as a local lead agency, and the Towns <br /> will cooperate in preparing and submitting any reports or solid waste plans that a Party may be <br /> required to file with governmental authorities, such as the State's Division of Waste <br /> Management. <br /> Approve budget. The County will approve the 1999-2000 System operating budget <br /> together with Chapel Hill. <br /> Effective date — The County will assume solid waste management responsibility as <br /> described in this Part 1 on January 1, 2000. The Parties shall take actions provided for in this <br /> Agreement, or which may otherwise be necessary or appropriate, in a timely fashion to permit <br /> the County's assumption of responsibilities as of the specified date. <br /> Draft of June 1, 1999 2 <br />