NORTHEAST PUBLIC WATER AUTHORITY OF STATE OF ARKANSAS

66 FLORENCE DRIVE

MOUNTAIN HOME, AR 72653

RULES AND REGULATIONS

RULES AND REGULATIONS FOR THE OPERATION AND CONDITIONS OF SERVICE OF THE WATER SYSTEM OF THE NORTHEAST PUBLIC WATER AUTHORITY HEREINAFTER, REFERRED TO AS THE “COMPANY”.

DEFINITIONS

APPLICANT: Any individual, firm, partnership, corporation or other agency owning land

Located within the area, applying for water service.

CONSUMER: Any individual, firm, partnership, corporation or other agency receiving water.

POINT OF

DELIVERY: The point of delivery shall be at the meter, unless otherwise specified in the

Water Users Agreement.

SERVICE: The term service when used in connection with the supply of water shall mean

the availability of water for use by the consumer. Service shall be considered

as available when the company maintains the water supply at normal pressure

at the point of delivery, in readiness for the consumer’s use, regardless of

whether or not the consumer makes use of it.

WATER USERS

AGREEMENT: The agreement or contract between the consumer and the company,

pursuant to which water service is supplied and accepted.

WATER

SERVICE: A water service shall consist of facilities for supplying water to one residence or

business establishment.

MEMBERSHIP

FEE: If the organization is a nonprofit PWA organized under the provisions of

Chapter 19, Title 64, Act 176, 1967, Revised Statutes of Arkansas, each user

must be a member of the association. The membership fee shall consist of the

deposit fee paid by the user for each service. Each membership certificate shall

represent one vote.

SERVICE FEE: A fee in the amount of $15.00 for the change of occupancy.

CONNECTION

FEE: A fee paid by the applicant for labor and materials used to connect water

service.

GENERAL RULES

1.  The supplying and taking of water will be in conformance with these Rules and the applicable rate schedule. Provided, however, that such rate schedule is subject to change with the approval of the State Director; provided further that if the total amount derived from the collection of water charges is insufficient for the payment of operating the water system.

2.  Applications for service shall be accompanied by a service fee of $______and

a membership fee of $______. The service fee will be nonrefundable. The membership fee will be maintained in a special account to insure payment of water charges. When service is discontinued, any portion of the deposit remaining after current bills are paid will be returned to the consumer.

3.  Applications for service that are received after the planned construction is started

will be accompanied by a connection fee and the membership fee as reflected in 2 above.

4.  The applicant will pay for plumbing permit if required by the state law.

5.  Before installing a service connection and providing water available for use, the

Company is required by the state law to have a copy of the septic approval from the Health Department and may require the applicant to pipe his home and be in readiness to accept service.

6.  The consumer shall install and maintain at his own expense a service line which shall begin at meter connection and extend to the dwelling and other portions of his premises.

SERVICE IS FOR SOLE USE OF THE CONSUMER

A standard water service connection is for the sole use of the applicant of the consumer, and does not permit the extension of pipes to transfer water from one property to another, nor to share, resell, or sub-meter water to any other consumer. If an emergency or specific situation should make such an arrangement advisable, it shall be done only on specific written permission for the duration of the emergency.

RIGHT OF ACCESS:

Representative of the Company shall have the right at all reasonable hours to enter upon consumers’ premises to read and test meters, inspect piping and to perform other duties for the proper maintenance and operation of service, or to remove its meters and equipment upon discontinuance of service by consumer.

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CONTINUITY OF SERVICE

The Company will make all reasonable efforts to supply continuous, uninterrupted service. However, it shall have the right to interrupt service for the purpose of making repairs, connection, extensions, or for other necessary work. Efforts will be made to notify consumers who may be affected by such interruption, but the Company will not accept responsibility for losses that might occur due to such necessary interruptions.

The Company does not accept responsibility for losses that might occur due to interruptions to service by storms, strikes, floods, or other causes beyond its control

METERS

Meters will be owned, inspected, tested and kept in proper operating condition by the Company, without cost to the consumer. A complete record of tests and histories of meters will be kept. The Company, as often as deemed necessary, will make meter tests according to methods of the American Waterworks Association.

METER ACCURACY

Service meters whose errors do not exceed two percent (2%) fast or slow shall be considered as being within the allowable limits of accuracy for billing purposes. The percentage of error will be considered as that arrived at by taking the average of the error at full load and then at ten (10%) load, unless a consumer’s rate of usage is known to be practically constant in which case the error at such constant will be used.

METER LOCATION

Meters shall be set in an accessible place on the outside of buildings except where otherwise directed by the Company. All meters shall be set horizontally and never connected into a vertical pipe. Meters set outside of a building shall be placed in a meter box installed by the Company. This meter shall remain accessible. Also on a new installation, the water authority requires the homeowner to hook up to our meter yoke with a 2 ft. piece of schedule 80 pipe that is threaded on one end and this end will screw into our yoke.

COMMERCIAL SPRINKLER SYSTEMS

There will be a annual fee charged for any commercial building that has a sprinkler system throughout their building that is not going through the meter. The rates are as follows:

SQUARE FEET OF BUILDING YEARLY COST

0 ------TO------5,000 $ 500.00

5,001------TO------25,000 600.00

25,001------TO------50,000 700.00

50,001------TO------100,000 900.00

OVER 100,001 1,200.00

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BILLS

Bills will be rendered for service by the 1st day of the month following that in which the service was rendered as set forth in the rate schedule. Service bills not paid by the 15th of the month shall be subject to a 10% late charge. Failure of the Company to submit a service bill shall not excuse the consumer from this obligation to pay for the water used when the bill is submitted. Failure to pay a bill by the 25th of the month following the month in which the bill is rendered, shall result in the disconnection of the service.

RECONNECTION CHARGE

The reconnection charge for restoration of service, if reconnection is authorized and approved, after each suspension of service because of delinquent payment or for other infraction of these Rules, shall be as follows:

1.  If meter is turned or locked off, consumer will pay the past due account up to date plus a $______disconnect fee and a $______reconnect fee.

2.  If meter is removed because of delinquent payments, the membership fee will be applied to the unpaid bills and if service is reconnected, consumer will pay $______reconnect

fee plus the $______membership fee.

REQUESTED METER TESTS

Meter tests required by consumers will be performed without cost to the consumer if the meter is found to be in excess of two percent (2%) fast. Otherwise the consumer for whom the requested test was made will be charged for the cost of making the test

CONSUMER’S RESPONSIBILITY

The consumer shall be responsible for any damage to the meter installed for his service, on account of any cause other then normal wear and tear.

The consumer, contractor or etc., which might dig into our water lines and break them, will be responsible for the cost to repair them.

The consumer, contractor or etc., which might damage or break our water lines, meters and related components, will be responsible for the cost to repair them.

CHANGE OF OCCUPANCY

It shall be the consumer’s responsibility to anticipate changes of occupancy and to notify the Company of such changes: otherwise, the original holder shall be responsible for payment of service. Any balance due a customer on membership fee will be refunded.

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CONSUMER HAS THE FOLLOWING OPTIONS AVAILABLE WHEN CHANGES IN OCCUPANCY OCCURS:

1. OWNER OF PROPERTY: SELLS PROPERTY

If account is paid up to date, the membership fee is refunded after new owner pays

$______service fee and $______membership fee, Total of $______

2. OWNER OF PROPERTY: SELLING PROPERTY

Owner agrees to continue monthly payment until property is transferred. When

Property is transferred, the previous owner’s membership fee is refunded and the new

Owner pay $______service fee plus $______membership fee, Total $______

3. OWNER OF PROPERTY: DOES NOT WANT TO PAY MONTHLY BILL

WHILE WAITING FOR PROPERTY TO SELL.

A.  Meter is removed and membership fee is refunded.

B.  If service desired again the present owner of the property must pay $______

Reconnection fee plus $______membership fee regardless of length of time

meter has been removed, Total of $______

4. OWNER OF PROPERTY: RENTS PROPERTY

Owner pays $______which includes a membership fee of $______and a service fee of

$______. The membership fee is only refundable when owner sells the property.

Service fee is not refundable. Owner is responsible for the water bill when house

is vacant.

A.  Tenant pays $______, which includes a deposit of $______and a service fee of

$______. Deposit will be applied to last month’s bill and only after all

bills are paid; the balance will be refunded. Service fee is not refundable.

B.  Or, Owner includes water usage in rental on lease agreement. Account will

be kept in the name of the owner and billed to owner only.

NOTE: Service fee of $______is NON-REFUNDABLE.

Membership fees are refundable

Membership fee may be different amounts if meter is another size besides ¾”

All momentary figures used herein are subject to change by the Board of

Directors, at its discretion.

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MAIN EXTENSION

1.  A set of plans designed by an engineer for the extension will be presented

to the Board of Directors of the Company for their approval. The plans will

then be sent to the State Health Department for their approval.

2.  After plans are approved, the applicant or developer is responsible for the

installation of the water lines, valves, etc; applicant or developer is required

to extend the water line to the adjoining property; or there must be a minimum 15 ft utility easement drawn up on plans that will extend to the adjoining property; the water company requires that the final plat be signed by the operator-manager of the water company before recorded at the clerk’s office. Also line that is to be extended must be the same size line that is serving the existing area and grade of pipe to be determined as per requirement #4. Applicant or developer agrees to install all labor and materials according to the Company’s specifications and will guarantee this installation for one year from the acceptance date. All materials labor and etc.; are to be performed by licensed Contractor and paid for by the applicant or developer.

3.  After the one year warranty period, the extension of the water lines will become the

property of and maintained by the Company.

4.  If during the first year after completion and acceptance of line by the Northeast

Public Water Authority, anyone desires to hook on and receive water from this line, then said person shall receive the approval of contractor or person who constructed and paid for the line or shall petition the Board of Directors in writing for an approval to hook on this line and Board of Directors shall meet and decide by a majority of members present. Contractor or persons responsible shall receive at least seven (7) days notice of hearing.

5.  All mains extended that are size 4” or above will be required to be Class C-900 Pipe or even stronger but not any standard class lower, with ductile iron fittings. Size 2” or 3” extended mains will be Class 250 with ductile iron fittings. All mains will be

embedded in sand and a tracer wire will be laid along pipe and extended up to each valve box available.

SERVICES

The Company will install for the connection fee a service line not less than ¾” in size, a corporation cock, saddle, meter and meter setter and labor. The meter will be set in front of the premises to be served or at the closest point as designated by the Company. If the main to which the service line is to be connected is not on the same side of the road that the meter will be set on, there will be an additional road-crossing fee.