§ 61-40-10 — Industrial water depot and lateral sales

North Dakota § 61-40-10

• Jurisdiction: North Dakota
• Title 61: Waters
• Ch. 61-40: Western Area Water Supply Authority

Text

1. An accounting of industrial water depot and lateral sales collected and distributed by
the authority must be reported to the state water commission on a monthly basis.
Participating member entities shall transfer industrial water depot and lateral sales to
the authority within thirty days of receipt of the revenues. The boards of the authority
and participating member entities must be notified of the sweep of revenues; however,
board approval is not required. Upon the receipt of industrial water depot and lateral
revenues by the authority, the authority shall apply immediately all revenues each
month in the following order:
a. Reimburse the authority for industrial water depot capital improvements and the
cost for delivery of potable or nonpotable water sold at industrial water depots
and lateral lines, at a cost no greater than the participating member, or
submember, if applicable, entity rate at the location of the depot or lateral line.
b. Regular payments on the participating member entity debt as described in the
agreements with the authority as of March 31, 2013, and baseline 2010 industrial
water sales included in and subject to the terms of the authority and participating
member agreements as of March 31, 2013. Baseline 2010 industrial water sales
for the city of Tioga in the year 2013 are limited to the lesser of legally permitted
industrial water sales or the amount in the member agreement.
c. Required monthly payments on state-guaranteed loans. The required transfer
must occur no later than the twentieth day of the following month.
d. Additional principal payment on state-guaranteed loans.
e. Payment to the resources trust fund.
2. If the debt has not been repaid, without the written consent of the state water
commission the authority may not sell, lease, abandon, encumber, or otherwise
dispose of any part of the property used in a water system of the authority if the
property is used to provide revenue. Any requirements on the state-guaranteed loans
for establishment of reserve funds for operation and maintenance or debt service are
waived.
3. The western area water supply authority shall make additional payments on the
infrastructure revolving fund loan, authorized in section 61-40-14, in any month in
which the debt service coverage ratio exceeds one and one-tenth. Debt service
coverage ratio means net income before capital expenditures, interest expense, and
depreciation expense divided by the sum of interest expenses and the required
principal and interest payment.