WATER SERVICE AGREEMENT
BETWEEN
MIDDLESEX WATER COMPANY
AND
ELIZABETHTOWN WATER COMPANY
THIS AGREEMENT (the "AGREEMENT") made this 28th day of April, 1995,
BETWEEN
ELIZABETHTOWN WATER COMPANY, a public utility and corporation organized
under the laws of the State of New Jersey, with its principal office at 600
South Avenue, Town of Westfield, County of Union, State of New Jersey,
hereinafter referred to as "ELIZABETHTOWN",
AND
MIDDLESEX WATER COMPANY, a public utility and corporation organized under
the laws of the State of New Jersey, with offices at 1500 Ronson Road,
Iselin, Woodbridge Township, State of New Jersey
hereinafter referred to as "MIDDLESEX",
WHEREAS, ELIZABETHTOWN has a Rate Schedule No. 8, "Service to Other
Systems Under Contract", filed under authority of The Board of Public Utilities,
and MIDDLESEX desires to continue to obtain a supply of water under this rate
schedule and subject to its provisions, as may be amended and supplemented under
approval of the Board of Public Utilities; and
WHEREAS, ELIZABETHTOWN and MIDDLESEX presently have a contract for water
supply dated December 4, 1990 and the parties desire to have this Agreement
supersede the existing contract; and
WHEREAS, ELIZABETHTOWN and the BOROUGH OF HIGHLAND PARK ("HIGHLAND PARK")
also have a contract for water supply dated July 21, 1986 (the
"Elizabethtown-Highland Park Contract") and HIGHLAND PARK has indicated its
desire to receive such water supply from MIDDLESEX instead of ELIZABETHTOWN; and
WHEREAS, MIDDLESEX and HIGHLAND PARK have indicated their desire to enter
into a contract for the provision of such a supply of water.
NOW THEREFORE, the parties hereto agree as follows:
1. Effective on and after the date in 1995 that HIGHLAND PARK changes its
source of supply (that is, the supply it currently receives from Elizabethtown)
from ELIZABETHTOWN to MIDDLESEX ("Transition date") and has signed an agreement
of termination of the Elizabethtown - Highland Park Contract and has also signed
a modification of its current water supply contract with Middlesex,
ELIZABETHTOWN agrees to terminate its rights under the Elizabethtown-Highland
Park Contract and ELIZABETHTOWN and MIDDLESEX agree to replace with this
Agreement the existing water supply contract between ELIZABETHTOWN and
MIDDLESEX, dated December 4, 1990. In addition, effective on and after the
Transition Date, ELIZABETHTOWN agrees to sell, deliver and transport to
MIDDLESEX, and MIDDLESEX agrees to accept, potable water from the water sources
and supplies of ELIZABETHTOWN. MIDDLESEX agrees to pay for a minimum daily
quantity of water in the amount of 3 million gallons per day at the rate set
forth in Rate Schedule No. 8, Service to Other Systems Under Contract, and
subject to its
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provisions as they may be amended and supplemented under approval of the New
Jersey Board of Public Utilities.
2. This Agreement for 3 million gallons per day will be effective for the
period between the Transition Date set forth previously and December 31, 2005.
3. All water supplied to MIDDLESEX by ELIZABETHTOWN shall be metered, by
meters owned and maintained by ELIZABETHTOWN, at the existing meter station
commonly known as Tingley Lane, and such other locations as may be agreed upon
by the parties.
4. Where the words "daily" or "24 hours" are used in this Agreement, they
shall refer to the 24-hour period between daily meter readings. Meter readings
shall be taken daily when feasible, and if not, the actual consumption shall be
averaged over the period that the meter has not been read.
5. In the event that the total daily quantity of water delivered by
ELIZABETHTOWN exceeds said 2 million gallons per day or 3 million gallons per
day, such quantity shall be paid for at the rate set forth in Rate Schedule
No. 8 "Service To Other Systems Under Contract".
6. ELIZABETHTOWN will supply water at a total flow rate greater than said 2
or 3 million gallons per day through meter connections noted under paragraph
(5), based on availability as reasonably determined by ELIZABETHTOWN.
7. ELIZABETHTOWN shall use reasonable diligence to provide a continuous
supply of water, subject to interruptions by reason of acts of God, accident,
strike, legal process, State or municipal interference or other causes
whatsoever beyond its control and shall not be liable for damages to MIDDLESEX
by reason of interruptions in the supply of water to MIDDLESEX.
8. MIDDLESEX shall completely indemnify, protect and save harmless
ELIZABETHTOWN from any and all costs, expenses, liabilities, losses, claims,
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suits and proceedings of whatsoever nature arising out of the use of the water
supplied to the MIDDLESEX service area and attributable to the negligence of
MIDDLESEX.
IN WITNESS WHEREOF, ELIZABETHTOWN WATER COMPANY has caused these presents
to be signed by its Senior Vice President and its corporate seal to be affixed
hereto and attested by its Secretary, and MIDDLESEX WATER COMPANY, in the County
of Middlesex, has caused these presents to be signed by its Chairman of the
Board and President and its corporate seal to be affixed hereto and attested by
its Vice President, Secretary-Treasurer, the day and year first written above.
(SEAL) ELIZABETHTOWN WATER COMPANY
ATTEST: By:/s/ Norbert Wagner
------------------------------------
Norbert Wagner
Senior Vice President-Operations
/s/ Walter M. Braswell
- ---------------------------------
Walter M. Braswell, Secretary
(SEAL) MIDDLESEX WATER COMPANY
ATTEST: By:/s/ J. Richard Tompkins
------------------------------------
J. Richard Tompkins
Chairman of the Board and President
/s/ Marion F. Reynolds
- ----------------------------------
Marion F. Reynolds
Vice President, Secretary and Treasurer