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21 January 2004

Honorable James Brown

Mayor Eunice, New Mexico

City of Eunice, New Mexico

PO Box 147

1106 AvenueJ

Eunice, NM 88231

Dear Mayor Brown:

Subject: National Enrichment Facility (NEF) Memorandum of Understanding i

The National Enrichment Facility is proceeding with the preliminary siting and design activities

in Lea County New Mexico, and is requesting your agreement with the decision to make a

potable water connection to the City of Eunice New Mexico. The following information

represents our discussions held in your offices on 06October2OO3 and the current understanding

of the potable water needs and is subject to change during the projects detailed design phase.

By acceptance of this agreement it is accepted and understood that:

• Eunice potable water, without additional treatment, is available for use by the NEF for

an operating plant life of 30 years with an estimated initial use in 2007.

• Water can be supplied at an average rate, or a portion thereof, in the amount of

65,000gpd and maintain 80-90 psig water pressure at the NEF site. Peak use rates may

exceed the average rate.

• The City of Eunice can integrate this new potable water supply to supply new city

users, provided the capacity and pressure requirements specified above can be

maintained at the NEF.

• It is acceptable to connect to the existing 16" PVC line running along Highway 18

Business north of Eunice approximately at the Truck Bypass, to locate a pumping

station (location to be determined) and to connect a 10" or smaller HDPE line to the

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NEF.

The costs for the pumping station and installation of the new 10" or smaller DA1E line

approximately 7 miles from the connection point to the NEF site (Truck route; Hir 34)3

will be the responsibility of the NEF. | Ij

If necessary, the City of Eunice will be the responsible agent for the install tion of thewater line and the acquisition of any easements with all costs assumed by NE ,

The City of Eunice will be responsible for all costs of operating and maintain g the new

water line and pump station.

The water use fee charged to NEF by the City will include all costs for op ration and

maintenance of the water supply system.

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I Honorable James Brown

21 January 2004

Page 2 of 2

As a matter of information, the NEF may also seek to secure a separately run potable

water line run from the City of Hobbs New Mexico. The line from Hobbs will remain

independent from the Eunice supply line up to the NEF plant water distribution system.

As confirmation of your acceptance with this agreement, please affix your original signature in

the spaces below and return one original to me for the project records.

If you have further questions or comments, please contact me. Thank you for your help and we

look forward to working closely with you on this project.

Sincere regards,

LOCKWOOD GREENE

J LShaw PE

Project Director

Lockwood Greene Engineers

(on Behalf of the National Enrichment Facility)

CITYOF EUNICE NEW MEXICO

/ Honorable lames Brown

Mayor Eunice, New Mexico

cc Rod Krich- LES

Project Files 20.17,20.09

Ron Abousleman, City Manager Eunice NM

jls:pA2O\O9 outgoing wrtespxndenceVettet of agreement water eunice revO doc

040-O18SI1.OIFN.20.09

LE S-01 1 66