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billing cycles in any calendar year, the City may declare a default of <br /> this Agreement. <br /> (d) In addition, for all water taken by ADM in excess of the limits set <br /> forth in Section 4(a), ADM shall pay a penalty as follows: a <br /> surcharge of $1.00 per 1,000 gallons for each 1,000 gallons or <br /> fraction thereof of exceedance in a day. <br /> (e) In the event that the raw water capacity in Lake Decatur shall <br /> decline materially due to weather conditions, excessive usage, or <br /> otherwise, upon twenty-four (24) hours prior notice from the City, <br /> the City may require ADM to reduce its rate of withdrawal from <br /> Lake Decatur. In the event that an emergency or catastrophic <br /> event diminishes the raw water capacity of Lake Decatur, ADM <br /> shall reduce its take from Lake Decatur upon one (1) hour prior <br /> notice from the City. Any reduction to ADM's water consumption <br /> shall be on a pro rata basis with other industrial users of Lake <br /> Decatur water, taking into account the user's Lake Decatur water <br /> usage over the previous twelve (12) months. During any period that <br /> the City imposes water restrictions on ADM or other users in the <br /> community, ADM shall be allowed to use and withdraw more than 6 <br /> MGD from the SWTP at the then current rates and without discount <br /> or penalty to a maximum of 14.0 MGD subject to the City's <br /> mandatory water restrictions placed upon usage by the community <br /> and any physical limitations in the facilities of ADM or the City. <br /> 4 <br />