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6 <br />NORTH CAROLINA <br />ALAMANCE COUNTY <br />THIS AGREEMENT, made and entered into as of the 4' day of November, <br />1991, by and between ORANGE- ALAMANCE WATER SYSTEM, INC., a North <br />Carolina Non -Profit Corporation, with its principal office in the City of Mebane, North <br />Carolina, hereinafter referred to as "Orange- Alamance ", the CITY OF GRAHAM, a <br />North Carolina Municipal Corporation, hereinafter referred to as "Graham ", and the <br />CITY OF MEBANE, a North Carolina Municipal Corporation, hereinafter referred to <br />as "Mebane "; <br />WITNESSETH: <br />THAT WHEREAS, Orange- Alamance is a non- profit corporation, formed for <br />the purpose of and engaging in the impoundment of potable water supplies, the <br />treatment of same and the delivery and provision of potable water supplies to portions <br />of Orange and Alamance Counties in the State of North Carolina, and to that end said <br />Orange- Alamance operates a raw. water storage impoundment, a water treatment <br />facility and distribution lines to various sections of said counties, and <br />WHEREAS, the City of Graham and the City of Mebane jointly own and <br />operate the Graham- Mebane Reservoir and Water Treatment Facility, with each party <br />owning its own separate distribution facilities, and <br />WHEREAS, Orange - Alamance has begun to acquire land in Haw Creek <br />drainage basin for the future purpose of establishing an additional water storage I <br />impoundment on the Haw Creek, northeast of NC Highway 54, and <br />WHEREAS, the Haw Creek drainage basin lies within the growth areas of both <br />Graham and Mebane, and <br />WHEREAS, the designation of the Haw Creek basin as a potential raw water <br />impoundment area adversely affects the growth potential of both Cities within said Haw <br />Creek drainage basin, and <br />WHEREAS, said Cities have requested Orange- Alamance to relinquish all <br />interest in developing the Haw Creek reservoir and the Haw Creek drainage basin as a <br />raw water impoundment, and <br />WHEREAS, Orange - Alamance is willing to abandon said project so long as it <br />secures assurances of water availability from the Graham - Mebane Reservoir sufficient <br />to meet its needs in its growth area, and <br />WHEREAS, Graham and Mebane are willing to provide assurances of <br />additional water sales to Orange- Alamance, with said sales being in addition to the <br />current water available to Orange- Alamance from its own impoundment on the Eno <br />River. <br />NOW THEREFORE, the parties hereto do agree as follows: <br />1. ABANDONMENT OF HAW CREEK RESERVOIR. In <br />consideration of the covenants herein contained, Orange- Alamance hereby agrees to <br />