BY-LAWS

RURAL WATER DISTICT NO. 2

Rogers County, Oklahoma

BY-LAWS

Article I

NAME AND PLACE OF BUSINESS

Section 1. The name of this corporation shall be Rural Water District No. 2 Rogers County, Oklahoma.

Section 2. The principal office of this District shall be located in Rogers County, Oklahoma.

Article II

CORPORATE POWERS

Section 1. The corporate powers of this District shall be vested in the Board of Directors, hereinafter referred to as the Board.

Article III

PURPOSE AND OBJECTIVES

Section 1. The purposes and objectives of this District are as follows:

To acquire water and water rights and to build and acquire pipe lines and other facilities, and to operate the same for the purpose of furnishing water to serve the needs of owners and occupants of land located within the District, and others as authorized by the By-laws.
To borrow money from any Federal or State agency, or from any other source, and to secure said loans by mortgaging or pledging all of the physical assets and revenues and income of the District, including easements and rights-of-way.
To hold such real and personal property as may come into its possession by will, gift, purchase, or otherwise authorized by law, and to acquire and dispose of such real and personal property, including rights-of-way and easements, wherever located, and as may be necessary and convenient for the proper conduct and operation of the business of the District.
To establish rates and impose charges for water furnished to participating members and others.
To enter into contracts for the purpose of accomplishing the purposes of the District with any person or governmental agency.
To cooperate with any person or with any governmental agency in any undertaking designed to further the purposes of the District.
To do and perform any and all acts necessary to desirable for the accomplishment of the purposes of the District, which may lawfully be done by such District under the laws of the State of Oklahoma.

Article IV

WATER USESERS

Section 1. Water shall be supplied only to rural residents of land located within the District. PROVIDED, HOWEVER, that the Board may make water available to the public for purchase at such distribution points as it may establish.

Section 2. No owner of land located within the District shall be eligible to become a water subscriber unless he has first subscribed and paid for one or more Benefit Units. Tenants occupying land located within the District may become water subscribers. PROVIDED, that the owner, or someone on behalf of the owner, has subscribed and paid for one or more benefit Units in favor of the land or premises occupied by the tenant.

Article V

RIGHT TO VOTE

Section 1. Only participating members shall have the right to vote, and each participating member shall be entitled to a single vote, regardless of the number of Benefit Units to which he may have subscribed: PROVIDED, all owners of land located within the District shall be eligible to vote at meetings of landowners until ninety (90) days after a declaration of availability of Benefit Units and unit fees have been entered by the Board in its minutes. There shall be no proxy voting, and no dual ownership of Benefit Units for voting purposes. A participating member may be an individual, frim, partnership, association or corporation.

PARTICIPATING MEMBERS SHALL BE:

(a)Owners of land located within the District who has subscribed to one or more Benefit Units: PROVIDED, payments of charges are current on at least one of the Benefit Units.

Article VI

BENEFIT UNITS

Section 1. The Board shall at the proper time cause a declaration of availability of Benefit Units for subscription to be entered in its minutes and shall establish a unit price for said subscriptions. Each Benefit Unit shall carry with it the obligation of paying a minimum monthly meter charge from the time service is available. The Board in its discretion may from time to time, if the capacities of the District’s facilities permit, make additional Benefit Units available. Subscriptions for Benefit Units shall be given preference, and priority in order in which received. The Board may refuse the subscription for a Benefit unit in favor of a particular tract of land located within the District, or impose special conditions on granting the same if in the judgement of the Board, the granting of said subscription and the furnishing of water pursuant thereto, would impair the service to other water users in that locality or be uneconomical, unfeasible, and place an undue burden on the District. Any landowner who feels himself aggrieved by such denial, or imposition of special conditions, may appeal from the action of the Board to vote of the members at the next regular meeting of the members, or special meeting of the members called for such purpose: PROVIDED, the decision of the Board shall stand, unless ¾ of all participating members vote in favor of a motion to overrule the decision of the Board.

Section 2. Upon the purchase of Benefit Units, the owners of land shall designate the tract of land to which the Benefit Units shall be assigned, and the Benefit Unit shall not be transferred from one tract of land to another within the District without the approval of the Board. The owner of lands subscribing for more than one Benefit unit to be assigned to one tract of land shall at the time of said subscription designate as nearly as practical the location on said tract where he intends to utilize said Benefit Units and no major change in location shall be made without the approval of the Board. Benefit Unit Certificates shall be issued by the Board, signed by the Chairman and Secretary, showing name of owner, and tract of land to which the Benefit Unit is assigned, numbered consecutively in the order in which issued.

Section 3. The consideration paid for Benefit Units shall be considered donations to the District, and shall in no event and under no circumstances be refunded to the subscriber.

Section 4. Benefit Units shall follow the title of the land. Owners may transfer Benefit Units from one tract of land to another tract owned by them within the District, subject however, to the approval of the Board. No transfer in ownership of Benefit Units shall be permitted without approval of the Board. No transfer will be approved unless all charges against the Benefit Unit are paid. All transfers when approved shall be recorded in the books of the District.

Section 5. Each Benefit unit shall entitle the owner not exceed one line from the District’s water system. Each line shall serve not to exceed on residence or business together with the necessary and usual out-building. Provided, The Board may adopt policies, rules and regulations to allow for service to multiple dwellings or multiple business establishments through a single meter under a single Benefit Unit when such service will not diminish services to existing members or otherwise be detrimental to the District.

Section 6. Failure to pay the minimum monthly meter charge, or failure to pay for water used through a meter for a 6 (Six) month time period, shall constitute a forfeiture of the Benefit Unit on behalf of which such failure occurs: PROVIDED, that such Benefit Unit shall be reinstated, if within three months after such failure all back charges are paid in full, plus 6% interest and reasonable parts and labor charges necessary to effect reconnections. Tampering with any Benefit Unit shall constitute a forfeiture of the Benefit Unit.

Article VII

ELECTION OF DIRECTORS

Section 1. The Board of this District shall consist of five (5) member, all whom shall be participating members of the District: PROVIDED, HOWEVER, that the original Board shall consist of owners of land located in the District. The Directors elected at the time of the incorporation of the District shall be elected for staggered terms of one, two, and three years and shall serve until the expiration of the term for which they were elected, as shown by the minutes of the original meeting of the landowners, and until their successors are elected and have qualified. At each annual meeting of the participating members, the participating members shall elect for a term of three years the number of Directors whose terms of office have expired. A Director shall be eligible to succeed himself.

Section 2. Immediately following the annual meeting of the participating members, the Board shall meet and shall elect a Chairman, Vice-Chairman, Secretary and Treasurer, from among themselves, each of whom shall hold office until the next annual meeting and until the election and qualification of his successor unless sooner removed by death, resignation or for other cause. The office of the secretary and treasurer may be held by one person.

Section 3. Any vacancy in the Board, other than from the expiration of a term of office, shall be filled by appointment by the remaining members of the Board. The appointed Director shall serve until the annual meeting. An election shall be held by the membership to fill the directorship vacancy for the remainder of the term. The appointed director shall be eligible for election. The disqualification of a Director as a participating member of the District, or failure of any original Director to become a participating member within 30 days after subscription to Benefit Units are made available through action of the Board, shall operate to disqualify him as a Director and to create a vacancy in the office of the Director.

Section 4. A majority of the Board shall constitute a quorum at any meeting of the Board.

Section 5. Any Director of the District may be removed from office for cause by a vote of not less than ¾ of the participating members of the District at any annual or special meeting called for that purpose. The Director shall be informed in writing of the charges preferred against him at least 10 days before such meeting, whether regular or special, and at the meeting, shall have an opportunity to present witnesses and be heard in person in answer thereto. Officers of the Board may be removed for cause by vote ¾ of the members of the Board. Employees and agents of the District may be discharged or removed from office or employment at any time by action of the Board.

ARTICLE VIII

POWERS AND DUTIES OF DIRECTORS

Section 1. The Board, subject to the restrictions of law, and these By-laws, shall exercise all the powers of the District and without prejudice to or limitation upon their general powers, it is hereby expressly provided that the Board shall have, and is hereby given, full power and authority in respect to the matters as hereinafter set out:

To select and appoint all agents and employees of the District or remove such agents and employees of the District for just cause, prescribe such duties and designate such powers as may not be inconsistent with these By-laws, and fix their compensation and pay for faithful services.
To borrow from any source money, goods, or services and to make and issue notes, and other negotiable and transferable instruments, mortgages, deeds of trust and trust agreements, and to do every act and thing necessary to effectuate the same.
To prescribe, adopt and amend, from time to time, such equitable and uniform rules and regulations, as, in their discretion, may be deemed essential or convenient for the conduct of the business and affairs of the district, and the guidance and control of its agents and employees.
To fix charges to be paid by each water user for services rendered by the District to him, the time of payment, and the manner of collection, and to establish equal rates for farm members and non-farm members according to the amount of services furnished.
To require all officers, agents, and employees, charged with the responsibility for the custody of any funds of the District to give adequate bond, and cost thereof to be paid by the District, and it shall be mandatory upon the Directors to so require.
To select one of more banks to act as depositories of the funds of the District and to determine the manner of receiving, depositing and disbursing the funds of the District in the form of checks, and the person by whom the same shall be signed on behalf of the Chairman, with the power to change such bank or person signing such checks and the form thereof at will.
Prepare annually an estimated budget for the coming year, adjust water rates, if necessary to produce sufficient revenue required by such budget, cause an annual audit of the District records and accounts to be made by a licensed municipal public accountant or a certified public accountant, and make a report on said matters at each annual meeting of participating members.

ARTICLE IX

POWERS AND DUTIES OF MANAGER

Section 1. The Board may employ for the District a manager, who shall have charge of the business of the Association under the general control, supervision and direction of the Board. No Director shall serve as manager. Subject to the approval of the Board, the manager shall employ, supervise and dismiss all agents and employees of the District and fix their compensation. He shall also, so far as practical, conduct Business in such a way that all patrons receive equal service and treatment, deposit in a bank selected by the board, all money belonging to the District, which comes into his possession; maintain his records and accounts in such manner that the true and correct condition of the business may be ascertained therefrom at any time; furnish the Board a current statement of the business and affairs of the District at each scheduled meeting of the Board and at the end of each fiscal year and at such other times and in such forms as the Board may direct; carefully preserve and turn over to his successor all books, record, documents, and correspondence pertaining to the business of the District which may come into his possession; and to perform such other duties as may be prescribed by the Board.

ARTICLE X

DUTIES OF OFFICERS

Section 1. Chairman. The Chairman, who shall be a member of the Board, shall preside over all meetings of the District and the Board, call special meeting of the District and the Board, preform all acts and duties usually performed by an executive and presiding officer, and shall sign all Benefit Unit Certificates and such other papers of the District as he may be authorized or directed to sign by the Board, provided the Board authorize any person to sign checks, on behalf of the District, provided that all checks must be countersigned by the Treasurer. The Chairman shall preform such other duties as may be prescribed by the Board.

Section 2. Vice-Chairman. In the absence or disability of the Chairman, the Vice-Chairman, who shall be a member of the Board, shall perform the duties of the Chairman.

Section 3. Secretary/Treasurer. It shall be the duties of the Secretary/Treasurer, who shall be a member of the Board, to keep a record of the proceedings of the meetings of the Board and of the District. He shall serve, or cause to be served, all notices required to be served by law or the By-laws of the District; in case of his absence, inability, refusal or neglect to do so, then such notices may be served by any member of the Board directed by the Chairman. The Secretary/Treasurer shall designated a bonded employee of the District to receive and account for all funds of the District and deposit the same in some bank designated by the Board as a depository. He shall pay the amounts, or cause them to be paid, out of the depository only on the checks of the Chairman, or someone authorized to sign on the Chairman’s behalf, countersigned by the Secretary/Treasurer or another Board member authorized to sign on his behalf. He shall present at each annual meeting a statement of his account for the past year, and he shall discharge such other duties pertaining to his office as shall be prescribed by the Board.

ARTICLE XI

BOOKS AND RECORDS

Section 1. The books and records of the District, and such papers as may be placed on file by vote of the District or Directors, shall, during all reasonable business hours, be subject to inspection of the participating members and landowners of the District.

ARTICLE XII

ANNUAL MEETING OF PARTICIPATING MEMBERS

Section 1. The annual meeting of the participating members of the District shall be held in the Rural Water District office located at 17261 South 4170 Road, Claremore, Oklahoma, at the hour specified by the Board of Directors, on the second Thursday in January of each year.

Section 2. Special meetings of participating members may be called at any time by the Chairman or upon resolution of the Board, or upon written petition of the Chairman of the Board, signed by 51% of the participating members of the District. The purpose of every special meeting shall be stated in the notice thereof, and no business shall be transacted thereat except such as is specified in the notice.

Section 3. Notice of meeting of participating members of the District shall be given by newspaper and public notice in office window of the District at least 10 days prior to the meeting. Such notice shall state the nature, time, place and purpose of the meeting, but no failure or irregularity of a notice of any annual meeting, regularly held, shall affect any proceeding taken thereat.

Section 4. The participating members present at any meeting of participating members shall constitute a quorum for the purpose of the transacting of business.

Section 5. The order of business at the regular meeting and so far as possible, at all other meetings, shall be:

Call to Order
Proof of Notice of Meeting
Reading and Approval of Minutes of Last Meeting
Report of Officers and Committees
Election of Directors
Unfinished Business
New business
Adjournment

ARTICLE XIII

BOARD MEETINGS

Section 1. The Board shall meet annually, immediately following the meeting of the participating members and may meet at such time as may be determined by the Board, or upon call by the Chairman or any two members of the Board. Notice of all meetings of the Board, other than the annual meeting to be held on the second Thursday in January of each year, shall be by mailing a notice to the last known business or residence address of each Director, at least two days before the holding of such meeting: PROVIDED HOWEVER, that when all the Directors are present at any meeting, however called, or consent in writing that such meeting may be held, the proceedings thereat shall be as valid as though the previous written notice aforesaid has been given.

ARTICLE XIV

MANNER OF ELECTION AND VOTING

Section 1. At all meetings of the District, each participating member, qualified as stated in these By-laws, shall be entitled to vote upon all propositions coming before said District. No cumulative voting shall be permitted and each participating member of the District shall have but one vote.

ARTICLE XV

SEAL

Section 1. The District shall have a corporate seal, consisting of a circle having in its circumference and face the words, “Rural Water District No. 2, Rogers County, Oklahoma,” which shall be in the custody of the Secretary.

ARTICLE XVI

FISCAL YEAR

Section 1. The fiscal year of the District shall begin the first day of July of each year.

ARTICLE XVII

AMENDMENT

Section 1. These By-laws may be repealed or amended by a vote of ¾ of the participating members present at any regular meeting of the District, or at any special meeting of the District called for the purpose except that the participating members shall not have the power to change the purposes of the District so as to impair its rights and powers under the laws of the State of Oklahoma, or to waive any requirement of bond or other provision for the safety and security of the property and funds of the District or its participating members, or to deprive any participating members or landowners of rights and privileges then existing or to so amend the By-laws as to affect a fundamental change in the policies of the District. Notice of any amendment to be made at any regular or special meeting of the participating members must be given at least 10 days before such meeting.

ARTICLE XVIII

BASIS OF OPERATION

Section 1. The District shall at all times be operated on a non-profit basis for the mutual benefit of its participating members.

ARTICLE XIX

BENEFITS AND DUTIES OF MEMBERS

Section 1. The District shall install, maintain, and operate a main distribution pipe line or lines from the source of water supply, and lines from the main distribution pipe line or lines, to the property line of each participating member of the District at which point designated as delivery points, meters to be purchased, installed, owned and maintained by the District shall be placed.

Section 2. Each participating member shall be entitled to purchase from the District, pursuant to such agreement as may from time to time be provided and required by the District and the Board, such water for domestic, livestock, garden and other purposes as a participating member may desire, subject however, to the provisions on these By-laws and such rules and regulations as may be prescribed by the Board. The water delivered to each participating member shall b metered.

Section 3. In the event the total water supply shall be insufficient to meet all the needs of the members and users, or in the event there is a shortage of water, the District may pro-rate the water available among the various members and users on such basis as is deemed equitable by the Board, and may also prescribe a schedule of hours, covering the use of water for garden purposes and require adherence thereto, or prohibit the use of water for garden purposes if at any time that total water supply shall be insufficient to meet all of the needs of all of the participating members for domestic, livestock, garden and other purposes, and the District must first satisfy all the needs of the participating members for domestic purposes before supplying any water for livestock purposes and must satisfy all the participating members for domestic and livestock purposes before supplying water for gardens or other purposes.

ARTICLE XX

PRINTING

Section 1. After adoption, of these amended By-laws, they shall be prepared in pamphlet form, and shall be made available at the Water District’s Office for each participating member.

AFFIDAVIT

STATE OF OKLAHOM)

: SS

COUNTY OF ROGERS)

BILL BRISCOE, ROGER GUSTAFSON, HARVEY KELLEYHAN, W.T. PHILLIPS AND GEORGE V. COTTOM, being first duly sworn, depose and state, each for himself, that his a director of Rural Water District No. 2, Rogers County, Oklahoma, that the foregoing By-laws were adopted at a meeting of the landowners of said District, duly held on the 19^th day of February, 1965, at 7:30 o’clock p.m., that were 113 landowners present in person and that the vote for the adoption of the By-laws was unanimous.

S/ BILL BRISCOE S/ ROGER GUSTAFSON

S/ HARVEY KELLEYHAN S/ W.T. PHILLIPS

S/ GEORGE V. COTTOM

Subscribed and worn to before me this 19^th day of February 1965.

S/ GERALDINE J. CORLEY NOTARY PUBLIC

My commission expires: July 6, 1968

AFFIDAVIT

STATE OF OKLAHOMA)

: SS

COUNTY OF ROGERS)

HARRISON, JR., FRANK MC CULLOUGH, DONALD DENNIS, TOM MOSES AND HERB HAZELWOOD, being first duly sworn, depose and state, each for himself, that he is a director of Rural Water District No. 2, Rogers County, Oklahoma, that the foregoing By-laws were amended at a meeting of the benefit unit certificate owners of said District, duly held on the 9^th day of January, 1992 at 7:00 o’clock p.m., that there were 7 Benefit Unit owners present in person and that the vote for the amendments to the By-laws was unanimous.

AFFIDAVIT

STATE OF OKLAHOMA)

: SS

COUNTY OF ROGERS)

HARRISON, HERB HAZELWOOD, JAMES BRADFIELD, LEON SCOTT, AND JOANNE GREEN, being first duly sworn, depose and state, each for himself, that he is a director of Rural Water District No.2, Rogers County, Oklahoma that the foregoing By-laws were amended at a meeting of the Benefit Unit Certificate owners of said District, duly held on the 10^th day of January, 2002 at 7:00 o’clock p.m., hat there were 14 Benefit Unit owners present in person and that the vote for the amendments to the By-laws was unanimous.

AFFIDAVIT

STATE OF OKLAHOMA)

: SS

COUNTY OF ROGERS)

C.M. HARRISON, BRETT BATTENFIELD, DENNIS PETERS, LONNIE SHERE AND JOANNE GREEN, being first duly sworn, depose and state, each for himself, that he is a director of Rural Water District No.2, Roger County, Oklahoma, that the foregoing By- laws were amended at a meeting of the Benefit Unit Certificate owners of said District, duly held on the 12^th day of January, 2006 at 7:00 o’clock p.m., that there were 47 Benefit Unit owners present in person and that the vote for the amendments to the By-laws was unanimous.

AFFIDAVIT

STATE OF OKLAHOMA)

: SS

COUNTY OF ROGERS)

DENNIS PETERS, BRETT BATTENFIELD, GARY COLLINS, JOANNE GREEN AND LONNIE SHERE, being first duly sworn, depose and state, each for himself, that he is a director of Rural Water District No.2, Rogers County, Oklahoma, that the foregoing By-laws were amended at a meeting of the Benefit Unit Certificate owners of said District, duly held on the 8^th day of January, 2009 at 6:00 o’clock p.m.,. That there were no Benefit Unit owners present to vote for the amendments to the By-laws; Board members vote was unanimous.

AFFIDAVIT

STATE OF OKLAHOMA)

: SS

COUNTY OF ROGERS)

DENNIS PETERS, BRETT BATTENFIELD, GARY COLLINS, JOANNE GREEN, AND LONNIE SHERE, being first duly sworn, depose and state, each for himself, that he is a director of Rural Water District No.2, Rogers County, Oklahoma, that the foregoing By-laws were amended at a meeting of the Benefit Unit Certificate owners of said District, duly held on the 8^th day of January, 2010 at 5:30 o’clock p.m.,. That there were no Benefit Unit owners present to vote for the amendments to the By-laws; Board members vote was unanimous.

AFFIDAVIT

STATE OF OKLAHOMA)

: SS

COUNTY OF ROGERS)

DENNIS PETERS, JOANNE GREEN AND LONNIE SHERE, being first duly sworn, depose and state, each for himself, that he is a director of Rural Water District No.2, Rogers County, Oklahoma, that the foregoing By-laws were amended at a meeting of the Benefit Unit Certificate owners of said District, duly held on the 12^th day of January, 2012 at 5:00 o’clock p.m.,. That there were no Benefit Unit owners present to vote for the amendments to the By-laws; Board members vote was unanimous.

AFFIDAVIT

STATE OF OKLAHOMA)

: SS

COUNTY OF ROGERS)

DENNIS PETERS, LONNIE SHERE, JOANNE GREEN, BRAD FOSTER, being first duly sworn, depose and state, each for himself, that he is a director of Rural Water District No.2, Rogers County, Oklahoma, that the foregoing By-laws were amended at a meeting of the Benefit Unit Certificate owners of said District, duly held on the 9^th day of January, 2014 at 5:10 o’clock p.m.,. That there were no Benefit Unit owners present to vote for the amendments to the By-laws; Board members vote was unanimous.

AFFIDAVIT

STATE OF OKLAHOMA)

: SS

COUNTY OF ROGERS)

CHARLIE KELLEHAN, JOANNE GREEN, ARLENE BROWN, MATT HOLT, being first duly sworn, depose and state, each for himself, that he is a director of Rural Water District No.2, Rogers, County, Oklahoma, that the foregoing By-laws were amended at a meeting of the Benefit Unit Certificate owners of said District, duly held on the 10^th day of January, 2019 at 5:00 o’clock p.m.,. That there were no Benefit Unit owners present to vote for the amendments to the By-laws; Board members vote was unanimous.

RURAL WATER DISTRICT NO.2

ROGERS COUTY, OKLAHOMA

RULES AND REGULATTIONS

These Rules are issued in compliance with the provisions of the Rural Water Districts Act of Oklahoma (82 Okla. St. Ann.§§ 1324.1 -1324.35) and the By-laws of the District and are designed to govern the supplying and taking of water service in a uniform manner for the benefit of the District and its members. They are subject to change from time to time. If a provision of the rules conflicts with a provision of the rate schedule, the provision of the rate schedule will prevail. If any portion of these rules shall be declared invalid by competent authority, such voidance shall not affect the validity of the remaining portions.

DEFINITIONS: The following expressions when used herein will have the meaning stated below:

APPLICANT: Any individual, firm, partnership, corporation or other agency owning land located within the District, applying for water service.
(A) BENEFIT UNIT: A right entitling the holder to one water service connection.

(B) MULTI-USER BENEFIT UNIT: A right, granted at the discretion of the Board, entitling the holder to water service for multiple dwellings or multiple business establishments through a single meter, of the size determined by the board. A Multi-User Benefit Unit may be granted only as allowed by the By-Laws—when such service will not diminish services to existing members or otherwise be detrimental to the District.

1.3 BOARD: The board of Directors of Rural Water District No.2 Rogers County, Oklahoma.

1.4 CONSUMER: Any Individual, firm, partnership, corporation or other agency receiving water from the District’s facilities and owning or occupying land located within the District in favor of which one or more Benefit units have been subscribed and paid for.

1.5 POINT OF DELIVERY: The point of deliver shall be at the meter, unless otherwise specified in the Application for Water Service and Water Users Agreement.

1.6 SERVICE: The term service, when used in connection with the supplying of water, shall mean the availability for use by the consumers of water adequate to meet the consumer’s requirements. Service is deemed available when meter is set or within 90 days of purchase of Benefit Unit Certificate, regardless of whether consumer makes use of it.

1.7 APPLICATION FOR WATER SERVICE AND WATER USERS’ AGREEMENT: The agreement or contract between the consumer and the District, pursuant to which water service is supplied and accepted.

1.8 WATER SERIVE: A water service shall consist of facilities for supplying water to ONE residence or ONE business establishment located on land within the District, except as the context may require with respect to a Multi-User Benefit Unit.

1.9 SUBDIVISIONS: Land divided into tracts for resale by developer.

GENERAL RULES

The supplying and taking of water will be in conformance with these Rules and the applicable rate schedule attached hereto, and filed with the secretary/Treasurer of the district: PROVIDED, HOWEVER, that such rate schedule is subject to change by action of the Board. PROVIDED, further, that if at any time the Board of Directors determines that the total amount derived from the collection of water charges is insufficient for the payment of operating cost, emergency repairs, or debt service, the Board shall increase the minimum water rate for the first month thereafter in an amount sufficient to pay such operating costs, emergency repairs, or debt service.
Applicants for service shall make application to the Business Office of the District. If the application is for transfer of existing Benefit Unit, the application shall include an assignment from the owner as shown on the records of the District (or his successor/personal representative) together with payment of any arrearage accrued against the Benefit Unit; the Board of Directors must approve the transfer before the record owner is fully released and the transfer considered complete. If the application for service is approved by the Board of Directors, the applicant may purchase a Benefit Unit for each water service desired. In each instance, the applicant must sign the standard Application for Water Service and Water Users’ Agreement for an indefinite period. If the application for multi-user service (Multi-User Benefit Unit) is approved by the Board of Directors, the applicant may purchase a Benefit Unit for water service for the number of dwellings or separate establishments included in the application and approved by the Board, and sign the Multi-User Application for Water Service and Water Users’ Agreement for an indefinite period.

Before installing a service extension and providing water available for use, the Board may require the applicant to pipe his home, building, or facility, and be in readiness to accept service.
SERVICE IS FORE SOLE USE OF THE CONSUMER: A standard water service connection is for the sole use of the applicant or 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 permissions of the Board of Directors for the duration of the emergency. I

In the case of a Multi-User Benefit Unit, the connection is for the use of multiple dwellings or multiple businesses, none of which are separately metered; the owner/applicant shall not resell or sub-meter any other users.

AGREEMENTS WITH PUBLIC AND GOVERNMENTAL BODIES: The District through its Board of Directors may make specific water service contract with the Federal Government, that State of Oklahoma, or agencies thereof, school districts and municipal corporations, differing from stipulations set out in the rate schedule and rules.
RIGHT TO ACCESS: Representatives of the District 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 consumers.
CONTINUITY OF SERVICE: The District 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, connections, extensions, or for other necessary work. Efforts will be made to notify consumers who may be affected by such interruptions, but the District will not accept responsibility for losses, which might occur du to such necessary interruptions.

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

METERS, READINGS & BILLING

3.1 WATER METERS will be furnished, installed, owned, inspected, tested, and kept in proper operating condition by the District, without cost to the consumer. A complete record of tests and histories of meters will be kept. Meter tests will be made according to methods of the American Water works Association by the District, as often as deemed necessary by its Board of Directors.

3.2 METER ACCURACY: Service meters whose error do not exceed three percent (3%) 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 that at ten percent (10%) load, unless a consumer’s rate of usage is known to be practically constant in which case the error at such constant use will be used.

3.3 METER LOCATION: Meters shall be set in an accessible place on the outside of buildings, except where otherwise directed by the District. All meters shall be set horizontally and never connected into vertical pipe. Meters set outside of a building shall be placed in a meter box furnished and installed by the District.

3.4 BILLS: Service Bills not paid by the 16^th of the month shall be subject to a late charge set by the Board of Directors. Failure of the District to submit a service bill shall not excuse the consumer (or certificate holder) from his obligation to pay for water used when the bill is submitted.

Failure to pay a bill by the day designated on the cut-off notice will result in the disconnection of the service.

3.5 When the Rules and Regulations of the District provide that water users will read their own water meters and remit payments without notice, water users will read their own water meter on the first day of each month or the earliest date thereafter, and remit the payment of each months water bill not later that the 5^th day of the month following the month for which the bill is due as set forth in the water rate schedule. Bills not paid on the 16^th of the month shall be subject to a late charge set by the Board of Directors. Failure to pay a bill by the first day of the month following the month in which the bill is rendered shall result in discontinuance of the service.

3.6 RECONNECTION CHARGE: The reconnection charge for restoration of service, if reconnection is authorized and approved under the provisions of the By-laws of the District, after each suspension of service because of delinquent payment or for other infraction of these Rules, shall be the unpaid amount charged to date against the consumer’s Benefit Unit, plus a six percent (6%) interest, and a sum to cover reasonable cost of parts and labor necessary to make such reconnection.

3.7 REQUEST METER TESTS: Meter test requested by consumer will be performed, without cost, to the consumer if the meter is found to be in excess of the three (3%) fast. Otherwise, the consumer for whom the requested test was made will be charged for the cost of making the test.

3.8 CONSUMER’S RESPONSIBILITY: The consumer (or in the case of a Multi-use Benefit Unit, the Owner) shall be responsible for any damage to the meter installed for his service, on account of any cause other than normal wear and tear.

3.9 CHANGE OF OCCUPANCY: It shall be the consumer’s responsibility to anticipate changes in occupancy, and to have his Benefit Unit transferred to the new consumer as prescribed in the By-laws. Until the Benefit Unit is formally transferred, the holder as shown in the District records shall be primarily responsible for payment for service; upon his failure to pay, any unpaid charges will be assessed against and deemed a lien against the Benefit Unit. All charges levied against a Benefit Unit must be paid, before the Benefit Unit can be transferred, or service resumed where there has been a suspension.

3.10 CHANGE OF OWNERSHIP: In the case of a Multi-User Benefit Unit, it shall be the holder’s responsibility to anticipate charges of ownership, and to have his Benefit Unit transferred to the new owner as prescribed in the By-laws. Until the Benefit Unit is formally transferred, the holder as shown in the District records shall be primarily responsible for payment for service; upon his failure to pay, any unpaid charges will be assessed against and deemed a lien against the Benefit Unit. All charges levied against a Benefit Unit must be paid, before the Benefit Unit can be transferred, or service resumed where there has been a suspension.

4.0 MAIN EXTENSIONS:

4.1 In extending a water main to service an applicant, the board may at its discretion exercise one of the following options:

(a) If the cost of the extension is less than the average cost of the entire system to each member, and sufficient construction funds are available, the Board may elect to make the extension upon the applicant’s purchase of a Benefit Unit.

(b) If the cost of the extension is greater than the average cost of the entire system to each member, the Board may elect to contribute to the extension in the amount of such average cost, and require the applicant to deposit in cash the additional cost in addition to the price of a Benefit Unit.

(c) In the event that the District does not have funds available to pay for construction in the amount of the average cost per member of the entire system, it may require as a condition of extending service, that the applicant deposit in addition to the price of a Benefit Unit, an amount which may equal the entire cost of the extension.

5.0 SERVICES: The District will install all water service pipes from its mains to the meters on property abutting the travel way along which the main is installed. The District will also install and pay for the District cock, meter and water meter setting. The meter will be set in front of the premises to be served or at the closest point to the consumer’s premises as designated by the District.

6.0 COST OF BENEFIT UNITS: Cost of Benefit Units to be established by Board of Directors; subject to change due to economic demands. Additionally, the cost of meter under a Multi-User Benefit Unit shall be charged to the applicant, if approved by the Board.

7.0 COST OF ROAD BORES: Cost of Road Bore to be paid by Benefit Unit owner and to be established by Board of Directors; subject to change due to economic demands.

8.0 APPLICANTS HAVING EXCESSSIVE REQUIREMENTS: In the event an applicant whose water requirements are found to exceed the District’s ability to supply it from existing plant without adversely affecting service to other consumers to an unreasonable extent, the District will not be obligated to render such service.

9.0 CONNECTION WITH PRIMATIVE WATER SYSTEM: There shall be no physical connection between any private water system and the water system of the District. Representatives of the District shall have the right at all reasonable hours to enter upon consumer’s premises for the purpose of inspection and enforcement of this provision. Violation of this provision shall constitute cause for disconnection of a consumer’s service.

THESE RULES were revised and adopted and unanimously approve at meeting Board of Directors held the 12^th day of January, 2012, at Claremore, Rogers County, Oklahoma, with five (3) members of the Board of Directors present.

POLICIES ADOPTED MAY, 1965

All requests for new service must furnish the District with the DEQ On-site Sewage Disposal Report, the On-site Sewage Treatment Report with 60 days or tap will be removed.

APRIL, 1966

$30.00 Charge for transfer fee.

JULY, 1968

Flush Hydrant Policy

Hydrant will be set at the expense of the member requesting it.
No hydrant will be put on line less a 4” in size.
Hydrant will be installed and blocked under supervision of the District.
All hydrants must be approved by the Board of Directors.
Hydrants will become property of the District after installation.
Hydrant may be removed at the discretion of the Directors, as a consequence of damage, abuse or neglect.
Hydrants may be used only by qualified persons.
Under no circumstance will Rogers County Rural Water District No.2 be held responsible for furnishing water for fire protection and they will not be held liable for any consequences or damages caused by such incident.

MAY, 1983

All new lines and extensions are to be put in by District representative or a contractor, to meet District’s specifications and requirements. If developer chooses not to use the District contactor, lines must be inspected by District inspector.

All new trunk lines will be no less than 4”.

JANUARY 1, 1999

Mobile Home Park Policy

Anyone requesting to install a mobile home park within the boundaries of Rogers County Water District No.2 will be required to purchase a Benefit Unit for each mobile home.

JANUARY, 2002

SUBDIVISONS: Inspections and inspectors of all new lines and specifications to be approved by the Districts Board. There will be a charge, by the linear foot, from the District for all inspection of new lines. This charge will be set by the Board and subject to change due to economic demands.

All developers will be required to leave a set of as-built’s with the District upon final inspection of lines completed.

JANUARY, 2008

REVISED 2017

All water loss, which occurs as a result of a water leak on the customers side of the meter will be calculated on the amount that can specifically be identified by the AutoRead leak detection system OR the consumer’s average water usage from the previous 12-month period. ALL usage exceeding the customers regular water usage will be calculated at the district’s cost plus 10%.

JANUARY 8^,2009

All request for new service or transfer of service must furnish the District with a valid State ID or State Driver’s License AND Deed/Title of Property.

JANUARY 12, 2012

TAMPEING ENFORECMENT POLICY: Multiple incident of meter tampering and/or a pattern of unexplained meter damage or tampering may result in forfeiture of a benefit unit, removal of the meter and denial of future service. Forfeiture may be determined by the board after notice and opportunity for hearing at the request of the affected member. In lieu of forfeiture, or as a condition of reinstatement of service, the board may require such cash bond or deposit as it determines necessary to protect the property and services of the District.

FIRE LINE POLICY: (For Fire Suppression Systems)

The selling of Benefit Units for the purpose of fire suppression systems shall be address on an individual basis and shall be subject to approval by the Board of Directors. The availability of water, location of the service and they type of valve shall be determined by the District’s Engineer prior to Board approval, by reference to the National Fire Code and local building codes, as applicable (“Codes”).
The Customer shall pay a one-time connection fee equal to cost of a benefit unit (cost of a benefit unit on the date of application) and any additional cost incurred during installation. Customer shall be responsible for all maintenance of valves, vaults and any other fixture required by the Codes.
The Customer shall only use the fire line for fire suppression purposes. The usual monthly minimum for each meter shall apply, but water used for fire suppression purposes shall not be billed to the customer. Should any other use of water occur, the customer shall pay of such water used at the District’s highest rate per thousand gallons.

Excessive or significant water use, as determined by the Board in its absolute discretion, will be a basis for termination and removal of the meter/benefit unit installed for fire suppression system.

The District will make no warranties with respect to water service, pressure or volume, and that the service provided for fire lines is solely as an accommodation to Customer/Members. The District’s purpose is to provide potable water for the health, welfare and safety of its patrons, and the District was not formed for the purposes of providing fire suppression services. Otherwise stated, the District does not warrant fire flow. The District shall not be responsible for any loss or damages of any kind whatsoever to Customer, or to Customer’s owners, members, guests, invitees, employees, representatives, agents, partners, subcontractors, subsidiaries, parent organizations, or any other entity (including death), damage to personal property, damage to real property, economic damages, consequential damages, for inconvenience due to inability of the district supply water, or for loss of water service.
Service under this policy shall be engaged by separate Fire Line Agreement, which may be amended from time to time by the Board, provided such agreement remains consistent with this policy or provides equal or more protection for the District.

REVISED DEVELOPMENT LINE EXTENSION POLICY (General Policy)

A proposed subdivision (or development, including but not limited to multi-dwelling or multi-dwelling or multi-business buildings or projects) within the District’s boundaries may create water requirements which exceed the District’s ability to supply water without adversely affecting service to existing or other consumers. Pursuant to the Districts By-laws and Rules, the District is not obligated to furnish water to a subdivision or development. Any developer who proceeds without preliminary agreement under this policy does so at his/her sole risk for lack of adequate water service.
Preliminary approval of water plan for a proposed development or subdivision shall be granted only if the needs of the subdivision can be satisfied by existing facilities or improvement made by agreement between the District and Developer pursuant to this policy.
Agreement by the District to supply water service shall, in any event, be conditioned on availability of water and capacity of the District’s system.
After completion of the development or subdivision, and acceptance by the District as provided herein, each individual tract will be subject to the jurisdiction of the District with respect to water service and issuance of benefit units, and water service made available on a first come, first serve basis.

Any mobile home park consisting of more than five units will be treated as a subdivision, even though separate ownership of tracts is not anticipated.

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