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<br />such capacity rights originally were allocated under the City/ <br /> <br />Diamond Shamrock Agreement in that Diamond Shamrock has constructed <br /> <br />pre-treatment facilities/or will have constructed such facilitie~ <br /> <br />prior to the Operative Date of Authority's Treatment Plant for the <br /> <br />treatment of sewage emanating from Diamond Shamrock's said lands <br /> <br />prior to disposition of such sewage in the City's sanitary sewerage <br /> <br />collection and transmission system; therefore, the amount of non- <br /> <br />grant eligible capacity allocated to Diamond Shamrock's lands <br /> <br />under the Diamond Shamrock/City Agreement is no longer required <br /> <br />in the amount specified in said Agreement and the reduction thereof <br /> <br />by reason of sale and conveyance to BAS of the amount specified in <br /> <br />the Diamond Shamrock/BAS Agreement will not affect adversely Diamond <br /> <br />Shamrock's requirements for treatment capacity for its industrial <br /> <br />activities conducted upon its said lands. <br /> <br />4. CONSENT. This Council hereby consents to the sale by <br /> <br />Diamond Shamrock to BAS pursuant to the Diamond Shamrock/BAS <br /> <br />Agreement of non-grant eligible capacity rights in the amount of <br /> <br />.02565 mgd (or 25,650 gallons per day of wastewater volume), 43 <br /> <br />lbs/day BODS' and 43 lbs/day TSS subject to the following conditions: <br /> <br />(a) The treatment capacity rights conveyed pursuant to the <br />Diamond Shamrock/BAS Agreement shall be and hereby is <br />allocated to, and shall be used solely for, the benefit <br />of the Subject Lands and shall provide sewage treatment <br />for no more than 95 single family dwellings located <br />within said lands. <br /> <br />(b) The right to use the Treatment Capacity Rights sold and <br />conveyed to BAS under the Diamond Shamrock/BAS Agreement <br />shall not become effective until and unless the lands <br />described in "Exhibit A" hereof are annexed to the City <br />of Redwood City, and such annexation is completed; <br />provided, however, that nothing contained in this resolution <br />shall be deemed to imply approval of such annexation. <br /> <br />(c) The rights acquired by BAS to treatment of sewage pursuant <br />to the Diamond Shamrock/BAS Agreement shall not accrue <br />and be effective until the Operative Date of Authority's <br />Trea tmen t Plant. . <br /> <br />-3- <br />