5.2. ERMUSR 07-13-2010 - Laserfiche WebLink

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1. Scoff of Agreement: The scope of this Agreement is limited to the one residential/commercial locations within the exception area more specifically identified on Attachment 1 and is further described as: 10195 180` Ln NW attached T32 R26Wmap submap # 1 2. Existing_customers: The Parties acknowledge that there are currently no existing customers of Elk River Municipal Utilities located within the exception area that would be affected by this Agreement. 3. Compensation: The Parties agree that no compensation is owed to Elk River Municipal Utilities by Connexus Energy Cooperative for the limited right to serve customers by exception in the exception area. 4. Future Service Rights: The Parties acknowledge that the limited right to serve by exception the exception area as contemplated in this Agreement does not convey permanent rights to serve the exception area. In the event that Elk River Municipal Utilities chooses to exercise its right to serve the exception area in the future, the Parties agree to the following: a. Notice: Elk River Municipal Utilities will give Connexus Energy Cooperative ninety (90) days written notice of its intent to provide service to the exception area. b. Compensation for Facilities: Elk River Municipal Utilities will pay to Connexus Energy Cooperative the net book value (original cost depreciated) of the service facilities in place in the exception area at the time of the notice referenced in Section 4 (a) (above) as compensation. The net book value will be calculated using the average property unit cost, net of customer contributions, and the year the unit of property was initially purchased. c. Lost Revenue: The Parties acknowledge that no compensation was paid by Connexus Energy Cooperative to Elk River Municipal Utilities for the limited right to serve by exception, and agree that no compensation will be owed by Elk River Municipal Utilities to Connexus Energy Cooperative in the 2