SALYERSWLLE WATER WO 401 COLLEGE STREET

SALYERSVILLE, KENTUCKY 41465 6061349-3743 FAX 6061349-3752

November 20,2006

Mr. Beaver Kentucky Public Service Commission Attention: Tariff Branch 211 Sower Boulevard P.O. Box 615 Frankfort, Kentucky 40601

Dear Mr. Beaver:

As per our phone conversation on Nov. 20", please consider the Salyersville Water Works ofEcial request for a rater increase. This rater increase would be across the board to all Salyersville Water Works user, including the M[agoffi County Water District, as previously stated in the original contract with the Magoffi County Water District, dated January 26,1983.

letter are a copy of a rate analysis that was performed by John Tackett, C.P.A., January 2003 and a copy of the Minutes where the Salyersvilte Water Commission voted the rate increase on. I am enclosing a copy of the Water Contract between us and the Magoffi County Water District along with all updated amendments.

Works at (606) 349-3743.

I have enclosed a copy of the proposed rate increase. Also enclosed with this

If you have any questions, please do not hesitate to call the Salyersville Water

Salyersville Water Works (Name of Utility)

FOR Community, Town or City

P.S.C. KY. NO.

SHEET NO.

CANCELLING P.S.C. KY. NO.

SHEET NO.

CONTENTS

WEIOLESALE WATER RATE

Magoffin County Water District:

First 8,000,000 Gallons

Over 8,000,000 Gallons $2.30 per 1,000 Gallons

$2.45 per 1,000 Gallons

DATE OF ISSUE November 20, 2006 Month I Date I Year

BY AUTHORITY OF ORDER OF THE PUBLIC SERVICE COMMISSION IN CASE NO. DATED

Salyersville Water Works 401 College Street

Salyersville, Kentucky 414658 6061349-3743 fax 6061349-3752

November 20,2006

Paul H. Salyers, Chairman Magoffin County Water District P.O. Box 490 Salyersville, Kentucky 41465

Dear Sirs:

Enclosed please find a copy of the request submitted by the Salyersville Water Works, to the Public Service Commission, concerning an increase in water rates of .15 per thousand gallon of water.

by January lo*, 2007. This will be in effect on December 2006 billing and due to be paid

Judy Jacks&, Chairman

JJIvjr

Encl.

SPECIAL MEETING OF THE

SALYERSVILLE WATER WORKS HELD ON NOVEMBER 13,2006 AT 1:W P.M.,

Those p m n t were Chairman Jackson, Commissioner Howard,

Ch. Jackson called the meting to order. Commissioner Howard made the motion to initiate a rate increase in the

amount of .15 per thousand gallon effective immediately to all customers including Magoffin County Water. Commissioner Mink seconded the motion. Vote was Unanimous.

With no further business to discuss the meeting was call to a close.

Commissioner Minim, Supt. Howard, S e c i t S S S i l F - ^_______

ATTEST: r /

JObn E. TaOkCq C.PA Paw 8. P l n i r , ~ C . P . h

January 14,2003

Board of Commissioners Salyersvllle Water Works College Street Salyersvillc, KY '9146.5

RE; Cost of Water

Per your request, I have compilcd inforniation from the fiscal year ending June 30, 2002 fur the purpose of determining the COS( ofwator production.

The compilation rcvcalcd that Salyersville Water Works had produced 243,505,042 gallons of water and sold 233,221,900 ydllOfl5 orwater. The costs associated with the gallons sold are reflected as either direct or indirect coat The relative cost is schedutcd here and reflect the cost per 1.000 pailnns sold.

TOTAL EXPEKSE -- COST PER j.000 GALLOm

DirectCost : $S81,834 52,495

Indirect Cost 680,909 2.920

TotaI Cost $5 415

This cost does wt include any cost associated with the Sewer Trcatment. Should these cost be included the overall cost would increase

This computation ha not been subjected to audit procedures. The computation is based on information that i& the representation ofmanagement, and accordingly do not express an opinion or any other form of assurance on them.

Should you wish to discuss this further, please feel free to contact my office

Sincerely yours,

$& g. .zL&e& rn John B. Tackett, PSC

. . , .

.. /e... ... ,

RJG 3 0 1994

AMENDED WATER PURCHASE CON'l'RACT.

. ~. 'IM-S-AMENJXD WATER PURCI IASE CO~rRACT,--made-and~-eiitereil- in to t h i s

- 1st day of L%?cectiber, 1990, between Llie SALYERSVILLE WATER COMMISSION

(City of Salyersvil le,) P. 0. Box G40, Salyersvi l le , Kentucky 41465,

hereirrafter rererred Fo a s the (Seller) and the MAGOFFIN COUNI'Y WATER DISTRICT,

P. 0. -l)ox~490, Salyersvi l le , I<entuclcy

(Purchaser).

41465 hereinaf ter referred t o as the

WI'INESSEI'II: l l ia t i n coiisideration of the mutual covenants con-

tained herein Seller axid Purchaser do hereby agree and covenant t ha t the

Water Purchase Conbract oE January 26, 1983, Amended a s Follows:

1. 'lhe MagoEfin County Water District s h a l l pay t o the Salyersvil le

Water Coironissioti not l a t e r khan bile f i f t e e n t h day of each inonLh, fo r water

delivered the sum of $l.GO per thousand gallons under paragraph (B) ( l ) of

the Water Purchase Contract.

6 Paragraph ( A ) ( l ) Qual i ty and Quantity of potable water be

increased from 7,000,000 gallons per month to 8,000,000 per month.

XFJ WI'I.NESS W:.lfi;f<EOl~, the par t i e s Ilereto, act ing under the authority pliaL[C SEEiVlSE CQML3$iICN

of t h e i r respective governing lxldies have caused this contract QT m ~ m executed.

EF:IECT[VE

SELLER :

. . . . . ~ ~ .. .. BY: . . . ji.,

ATTEST: ,

SECREINIY()

BUYER :

AMENDED WATER PURCHASE CONTRACT

This Amended Water Purchase Contract, made and entered into this wh day of /BP!;L , 1994, ktween the Salyersville Water Commission (City of Salyersville) P. 0. Box 640, Salyersville, Kentucky 41465; hereinafter referred to as the (seller and the Mayoffin County Water District, p. 0. Box 490, Salyersville, Kentucky 41465; hereinafter reEerred to as the (Purchaser). -

herein Seller and Purchaser do hereby agree and covenant that the Water Purchase Contract of January 26, 1983, Amended as follows: ,

Contract for a forty (40) year term, which said period shall expire March 2036.

from 8,000,000 per month to a maximum of 11,000,000 gallons per month. water purchased over 8,000,000 gallons Der month shall be at $1.75 per thousand.

In Witness Whereof, the parties hereto, acting under the authority of their respective governing bodies have caused this contract to be duly executed.

Witnesseth: That in consideraTion of the mFtual covenants contained -

1.

2 .

The Salyersville Water Commission hereby extend the Water Purchase

Paradraph (A) (1) Quality and Quantity of portable water be increased All

SELLER :

SALYERSVILLE WATER COi@!ISSION

ATTEST:

BUYER : SEP 2% 1994

PUBLIC SERVICE COMMlSSlORI _ _ . .

MAGOFFIN-COUNTY WATER DISTRICT

This contract is approved on behalf of the Fanners Home Administration this day of . 199-.

BY

TITLE

. ... _.

AUG 3 0 1994 PUciLlC SERVICE

AMENDED WATER PURCHASE CONTRACT C 0 M M I S S IO N

THIS AMENDED WATER PURCHASE CONTRACT, made and entered

into this )Ll"dayofr &. L9.r , 19a, between the

. SALYERSVILLE WATER COMMISSION (City of Salyersville) P. 0. Box

640, Salyersville, Kentucky 41465, hereinafter referred to as the

__ -

(Seller) and the MAGOFFIN COUNTY WATER DISTRICT, P. 0. BPX 430,

Salyersville, Kentucky 41465 hereinafter referred to as the

(Purchaser) . WHEREAS. the Seller and Purchaser entered into a

PUBLIC SER\hCE COG$hEliSSION

ER:ECTIVE certain Water Purchase Contract dated January 26, 1983 f@q&tT@p#m

of forty years, which contract was extended for an additional Q r^' dcp :12 i $ $ r ) four years by agreement dated March 2 0 , 1987;

WHEREAS, the Purchaser , Magof f in County is procuring financing to extend its water 1inesMQ

of Licking River in Magoffin County, Kentucky and it is necessary

for them to secure an extension of the Amended Water Purchase

Contract insuring a supply of water for. at least a period of

forty (40) years which is the term of the bonds, notes and

mortgages which will finance such project;

. . , . . . , . " , a

NOW THERE%ORE, it is aqree-d between the parties as

follows:

1. In recognition that the purchaser desires to

extend its water lines to the Middle Fork area of Magoffin

County, Kentucky and will purchase additional waters from the

Seller and that Purchaser further must secure the water purchase

contract securing its source of water for such project for a

period of over forty (40) years from the date of the initiation

of s a i d p ro jec t , t h e p a r t i e s do hereby ag ree and covenant t h a t

t h e water purchase c o n t r a c t of January 26, 1983 between them as

amended by Amended Water Purchase Contract on March 20 , 1987 is

f u r t h e r amended so t h a t t h e term t h e r e o f ' s h a l l be f o r a term of

f o r t y ( 4 0 ) years from and a f t e r January 1, 1991. . . ." ~ ~~~ ~

. .__ ,." .

2 . The p a r t i e s s t a t e t h a t no o t h e r term of t h e

o r i g i n a l Water Purchase Contract of January 26, 1983 and t h e

Amended Water P u r c h a s e Contract a r e modified except as , provided

above and a l l o ther t e r m s remain i n f u l l f o r c e and effect.

I N WITNESS WHEREOF, the p a r t i e s he re to , ac t ing under

the au tho r i ty of their r e spec t ive governing bodies , have caused

E ~ ~ ~ ~ i ~ ~ , ~ ~ F KENT[:CKY

this Amende4 Water Purchase Contract t o be duly exepil8Le$

counterpar t s , each of which s h a l l c o n s t i t u t e an originaPEPrCT;yE IC

SELLER : SEP 2 2 1954

BUYER:

i ...... ,. .......... --- ............ .__ ....... , .. . . . . , ..... , . . .......-I_ __ .....

STATE OF KENTUCKY:

COUNTY OF MAGOFFIN: .... ...........

. ......

{-f!/p , a Notary Public for the County and State aforesaid,’ do certify that on the ,& day of

,. 57 I, , C,,”

.. f/7;&.<~..( , lg&, personally appeared before me COLIN

. . .

JACKSON, JOE A . SALYER AND BOBBY HOWARD, who declared to me that a

the are the commissioners of the Salyersville Water Commission,

and that, they have the authority to execute said instrument on

its behalf.

MY Commission Expire

STATE OF KENTUCKY:

COUNTY OF MAGOFFIN: C L > q e( t., e.. 14 ,I 1.

I, & Lf&,%, ,. . L(tp ” .

QY I I

,7

te afodsaid, do certify

1 9 d -, personally app

/ ~ . . L . . , . - - , who declared to me that he is the Chairman of the Magoffin County Water District, and that he has the authority

to execute said instrument on its behalf.

My Commission Expires ,% - . ”, Ly

NOTARY PUBLIW ,

This Contract Extension Agreement is approved on behalf

of the Farmers Home Administration on this - day of I

19-.

FARMERS‘ HOME ADMINISTRATION -.. .

. . %.!*-;$- ., r USDA-FHA

Form FHA 442.30 (Rev. 4-19.72)

Position 5

WATER PURCHASE C O N T R A C T

/ ,, . r\ of A) L'- A A -*e ,*

i/ This contract for the sale and purchak of water is entered into as of the ,

19 +Xi, between the Salyersville Water Commission (CitL of Salvers ville)

E ( A d d r e s s )

. , . . . . . ~ _ _ _ ~ _ ~ AUG 3.,0 1994 hereinafter referred to Psthec,Sellep Pnd the Magoffin County Water district'^ ~~

PUBLIC SERViCE I P.O. Box 430, Salversville, Kv. COMMlSSlO~

( A d d r e s s )

by Seller of Request by Purchaser as per Sec. C. # 3 . hereinafter referred to asthe"Purchaser", and is to become efEective on the date o f receipt

WITNESSETH: I

Whereas. the Purchaser isoi$enized and established under the provisions of Chapter 7 4 01 the ~

i Codeof K P n t u k v Revised St atUtes , for Ihe purpose of constructing and operating a water s u p p l y distribution

1 system serving water users within the area described in p l a n s now on file in the office of the Purchaser and to accomplish th i s purpose, the Purchaser will require a supply of treated water. and

present customers of the Seller's system and the estimated number or water users to be served by the said Purchaser a s shown in the plans of the system now on file in the office of the Purchaser. and

Whereas, by Resolution No. enacted on the 13th day

Whereas. the Seller owns and operates a water supply distribution system with a capacity currently capable of serving the !

!

of Janua rv , 19 83- by the Seller, the sale of water to the Purchaser i n accordancc

wirh the provisions of &e said

cnrtying out the said R u t ion by the Chairman o f . the Salyersville Water Cominissiol and attested by the Secretary, was duly authorized, and

Resolution was approved. and the execution of t h i s contract

Whereas, by . Resolution of the Board of Commissioners

of the Purchaser, eoacled on the day of , 1 9 83,

the purchase of water from the Seller in accordance with the terms set forth in the said Resolution

PUBLIC S E R V E COb&{crS$Wl\l

E.F:?xTI\!E " r1ehd was approved, end the execution of this mnbect by the Lh.i r m a n

attested by the Secretary was duly authorized; t h e -offin c- i Y

Now, herdore, in consideration of the foregoing and the mutual agreements hereinafter set forth.

A. The Seller Agrees:

1. (Quality and Quantity) To furnish Ihe Purchaser at the point of delivery hereif@$lJ

in such quantity a8 may be r q u i r d by tho Purchaser not to excced 7 ~ ~ o o ~ ~ ~ O eallons per month. 160 gpm at each metering station.

nor

**I 1~",...1.1,.1.".~srrrr:l,rrrvr, c FHA 442.30 (Rev. 4-19-72)

2. (Point of Deliver9 and Pressure) That water will be furnished at a reasonably constant prcssure calculated

from an existing s i x (6) and Eight @dch main supply a t a pointh?ate&--- * - at 30 psi ' '

i I l u s trated' on 'attached .map.: If e greatet pressure than that normally available at the point of delivery is ieqdired by.lJe Purchaser, the cost ol providing such greittet'pressuri Si11 KCWiie by the Purchaser. Emergency failures of pressure or supply due to main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the Seller from this provision for sucbreasonableperiod of time a s may be,necessary to restore service.

necessary metering eqdpident; fncludipg a meter hbbse or pit, and required devices of standard type for properly measuring !he quantity of water delivered to the Purchaser and to calibrate such metering equipment whenever requejted by the Purchaser but not more frequently than once.every twelve (12) months. A meter registering not more than two percedt (2%) above~or below the test result shall be deemed to be accurate. The previous,readings'of any meter.disclosed by test to be inaccurate

months previous to such test in accordance with the percentage of shall be corrected for the inaccwacy found by, such tests. If any meter.fails to register for any.period, the amount of water furnished during such period shall be deemed to be the amount of water delivered in the corresponding period Immediately prior to the.failure. unless Seller

and Purchaser shall agree upon a different amount. The metering equipment shall be read on during 4th week O f month An appropriate official of the Purchaser at all reasonable times shall have access to the meter for the purpose of verifying its readings.

(Billing Procedure)'To furnish the Purchaser at the'above address not Iater'tHan the -.day of

''.

. ~

3. (Metertng Equipment) T o furnish, install, operate, anK-m3n&iri at its.pwn expense at point of delivsryTtb-

.

three (3.)

~~

.. ~ .. . ~ . .

4. each month, with an itemized statement of the amount of water furnished the Purchaser during the preceding month.

8. The Purchaser Agrees:

1. (Rates and Payment Date) .To.pay the Seller. not-later than the 15rh day of each month. for water

delivered in accordance with the following.schedule of rates:

for the first gallons, which amount shall also be the a. $t x-xY AnnnnAnnnnnn

b. S 1-25 cents per 1000 gallons f s c i w ~ ~ ~ n a s ~ id m'b!

minimum rate per month. ., .

.... /

p ~ m w x x x x x x x ~ MXXXXXXXXXXXXXXX

. . m & ~ $ e m g&~~+if~jba~ ~ X X X Q I X L X ~ ~ K n m . . . c. $ xxxxxxkxxxxxxx

2. (Connection Fee) To pay as ,M agreed cost, ,a connection:)ee.to connect ,be Seller's . . system.with the system

dollars which shall cover any and all costs of the Seller for installation of the Purchaser, the sum of

a pro riatel& s i t e d gpgterit e u i p v t n as shown by' 'invoice 'to, jiclude labor and materials and an

Thereinafter seller shall be responsible for of ad9ttLonaf 70 k oi! these costs. maintenance and accuracy of said metering equipment

C. It i s further mutually agreed k l w e m the Seller nnd the Purchascr as'follows:

+ '. 1. ( T e n of Contract) That this contract shall extend for a term of ,fortv t 40kyea r s from the date of the initial delivery of MY water as show by the first bill submitted by the Seller to the Purchaser and, thereafter may be renewed or extended for such term. or terms, us may be agreed upon by the Seller and Purchaser.

2. . (Delivery of Water) That J&.LSv ( 3 0 ) days prior lo the estimated date of completion of construction of the Purchaser's water xnppiycdistribution system+the Purchaser will notify the Seller in writing the date for the initial delivery

3...-.(91nter-foc2esting)..~en requested by the Purchaser the Seller_ will make available to the contractor at the point of delivery, or other point reasonably close Ihereb, water sufficient for testink flushing, and trench filling the system of the Purchaser during construction. irrespective of whether the metering equipment has ken installed at that time, at a

flat charge of 5 which, will be paid by the contractor or, on his failure lo pay, by the Purchaser.

4. (Failure to Deliver) The1 the Selier will, at all times, operate and maintain i ts system in M efficient manner and will take such action as may be necessiry lo furnish the Purchaser with quantities of water required by the Purchaser. Temporary or partial failures to deliver water 'shall be remedied with.all possible espatch. I n the event of an extended shortage of wster, ,or the, supply of water available to the Seller is otherwise dimicished over an extended period of time, the supply of water to Purchaser's consumers shall be reduced or diminished in the &me ratio or proportion as the supply to Seller's consumers i s reduced or diminished.

(Modification of Contract) That the provisions of this contract pertaining to the schedule of rates to be paid by

the Purchaser for water delivered are subject to modification at the end cf every t w o y e a r , p e r i o d . Any increase or decrease in rates shall k based on a demonstrable increase or decrease in the msts of performance hereunder, but such costs shall not include increased cpp,itdization of the Seller's system. Other provisions of this contract mky be modined or altered by mutual agreement.

of wa t er. o r any Section thereof,

1.25 / 1000~

5.

(see item 9 ) 6. (Regulatory Agencies) That this contract is subject to such rules, reylations. or laws a s may be applicable

to similar agreements in this State and the Seller and Purchaser will collabrete in obtsining such permifs. certificsles. or the like, as may be required to comply therewith.

(Miscellaneous) That the construction of the water supply distribution system by the Purchaser i s being financed by a loan made or insured by, and/or P grant from, the United States of America, acting through the Farmers Home Administra- tion of the United States Department of Agriculture. and the provisions hereof pertaining to the undertakings of the Purchaser are conditioned upon the approval, in writing, of Ihe State Director of the Fermers Home A.dministration.

(Successor to the Purchaser) That in the event of MY ocmrence rendering the Purchaser incapable of per- forming under this contract, any successor of the Purchaser, whether the result of legal process, assignment, or otherwise. shall succeed to the rights of the Purchaser hereunder.

7.

8 .

9. A l l subsequent rate changes will occur at the same time and in the same percentage of change as applied to all customers of the Salyersvii.le Water Commission both inside and outside the city.

10. It is agreed that all of the Purchaser's rights and equities under this contract may be and the same are hereby pledged to the USDA, FmHA, as security f o r a loan FmHA proposes to make to purchaser to finance the construction of a water system.

I In vitnesa whereof, the.puties hento, acting under wlhority of their respective governing bodies, have caused this contract

to be duly executed in Seven ('7) counterparts. each of which shell constitute an originnl. 7 .v..

Seller:

MAGOFFIN COUNTY WATER COMMISSION

BY- dAlAR19as\ ,

This contract i s approved on behalf of the Fnrmers Home Administration this day of

Title

AKENDED WATER PURCHASE CONTRACT

This Amended Water Purchase Contract, made and entered into this Tjd ~- day of I , 1994, between the Salyersville Water Comnission (City of Salyersville) P. 0. Box 640, Salyersville, Kentucky 41465; hereinafter referred to as the (seller and the Magoffin County Water District, p. 0. Box 490, Salyersville, Kentucky 41465; hereinafter referred to as the

~ (Purchaser). . ~ ~

Witnesseth: That in consideration of the mutual covenants contained herein Seller and Purchaser do hereby agree and covenant that the Water Purchase Contract of January 26, 1983, Amended as follows: .

Contract for a forty (40) year term, which said period shall expire March 2036.

from 8,000,000 per month to a maximum of 11,000,000 gallons per month. water purchased over 8,000,000 gallons per month shall be at $1.75 per thousand.

their respective governing bodies have caused this contract to be duly executed.

1.

2.

The Salyersville Water Commission hereby extend the Water Purchase

Paragraph (A) (1) Quality and Quantity of portable water be increased All

In Witness Whereof, the parties hereto, acting under the authority of

SELLER:

SALYERSVILLE WATER COMMISSION

BUYER:

MAGOFFIN-COUNTY WATER DISTRICT

I'

This contract is approved on behalf of the Fanners Home Administration this day of . 199-.

TITLE

A"DE0 WATER PURCMSE CONTRACT

This Amended Water Purchase Contract, made and entered into this= day of Srgtember, 2000, between the Salycrsville Water Commission (City of Salyersville) P.O. Box 640, Salyersville Kentucky 41465; hereinafter referred to as the Seller and the Magoffin County Water District. P.O. Box 490, Salyersville, Kentucky 41465; hereinafter referred to as the Purchaser.

WITNESSETR That i n consideration of the mutual canvenauts contained herein, Seller and Purchaser do hereby agree and convenant that the Water Purchase Contract of January 26, 1983 and Amendment dated August 11, 1995 and Amendment dated Sept. 29, 1997 and Amend as follovs:

Paragraph ( A ) ( l ) guality and Quantity o f portable vater be increased from 16,000,000 gallons per month to the quantity of Water that may be required by the Purchaser but not exceed 17,000,000 gallons per month.

It is further agreed that Purchaser shall not purchase vater from any other Sellers so long as Seller is able to meet the vater demands of Purchaser, vith regards to quantity and gualley as per this contract.

IN WITNESS WHEREOF, the parties' hareto, acting under the authority of their respective governing bodies have caused the contract to be duly executed.

SELLER: SALYERSVILLE WATER COMM;SSION

PURCEASER: MAGOFFIN COUNTY WATER D I S T E C T

ATTEST:

- _a I .

U CBAIRKAN

This contract is approved on behalf of the Kural Development t l i i ~ !a &$ i day of OC7i18m , 2000. ;

-. 649:

7Xw:

., ......

This Amended Water Purchase Contract, made and entered into this the __ day of September, 1997, between the Salyersville Water Commission (City of Salyersville) P.O. Box 640, Salyersville, Kentucky41465; hereinafter referred to as the Seller and the Magoffin County Water District, P.O. Box 490, Salyersville, Kentucky 41465; hereinafter referred to as the Purchaser.

WITNESSETH: That in considera~on-of-themutu~ covenants contained herein, Seller and Purchaser do hereby agree and covenant that the Water Purchase Contract of January 26, 1983 and Amendment dated August 11, 1995 and Amend as follows:

/

Paragraph (A)(l) Quality and Quantity of portable water be increased from 14,000,000 gallons per month t o the quantity of water that may be required by the Purchaser but not exceed 16,000,000 gallons per month, All water purchased over 8,000,000 gallons per month shall be $1.75 per thousand.

It is further agreed that Purchaser shaU not purchase water fiom any other Sellers so long as Seller is able to meet the water demands of Purchaser, with regards to quantity and quality as per this contract

IN WITNESS WHEREOF, the parties hereto, acting under the authority of their respective goveming bodies have caused the contract to be duly executed.

PURCHASER MAGOFFIN COUNTY WATER DISTRICT

ATTEST

This contract is epproved on hehdf of the Rural Development ths the zf day of -&&?

BY /A c& TITLE /- -

/ ,

AMENDED WATER PURCEASE CONTRACT

j . I i !

-~ ...... ~ j

This Amended Water Purchase Contract, made and entered into this= day of September. 2000, hetveen the Salyersville Water Commission (City of Sdlyersville) P.O. Box 640, Salyersville Kentucky 41465; hereinafter referred to as the.,Seller and the 'Magoffin County Water District. P.O. BOX 490, Salyersville, Kentucky 41465; hereinafter . .... referred to as the Purchaser. ~ .

WITNESSETB: That in consideration of the mutual convenants '

1 contained herein, Seller end Purchaser do hereby agree and convenant that the Water Purchase Contract of January 26, 1983 and Amendment dated August 11, 1995 and Amendment dated Sept. 29, 1997 and Amend as follows:

Paragraph (A)(1) Quality and Quantity of portable vater be increased from 16,000,000 gallons per mnth to the quantity of vater that may he required by the Purchaser hut not exceed 17,000,000 gallons per month.

i

It is further agreed that Purchaser shall not purchase vater from any other Sellers so long as Seller is able to meet the water demands of Purchaser, with regards to quantity and quality as per i this contract.

I IN WITNESS wBEFS3OF, the parties hereto, acting under the author'fy of '

I their respective governing bodies have caused the contract to he duly executed.

S m W : SALXXRSVITILE WATER COMMISSION

PURCBBSER: MAGOmIN COUNTY WATER DISTRICT

This contract is approved on behalf of the Rural Development this the -, day of , 2000.

1

i

I i

~ ~ . ~ . ~ . ,

BY: TITLE: