SECTION A.      RESOLUTION

1.        THE BOARD OF DIRECTORS OF CN ESTABLISHES THAT:

2.        This Tariff of the Mt. Zion Water Supply Corporation, serving Rockwall County consisting of Sections A. through G. and forms inclusive, is adopted and enacted as the current regulations and policies effective as of the 1 day of July, 2002.

3.        Only those pre-existing written contracts or agreements executed by the present or previous Board of Directors shall remain in effect, unless the contract or agreement requires compliance with changes of the tariff from time to time.

4.        The adoption of this tariff does not prohibit or limit the Corporation from enforcing previous penalties or assessments from before the current effective date.

5.        An official copy of this and all policies or records shall be available during regular office hours of the Corporation.  The Secretary of the Corporation shall maintain the original copy as approved and all previous copies for exhibit.

6.        Rules and regulations of state or federal agencies having jurisdiction shall supersede any terms of this policy.  If any section, paragraph, sentence, clause, phrase, word, or words of this policy are declared unconstitutional or invalid for any purpose, the remainder of this policy shall not be affected.

7.        PASSED and APPROVED this 1st day of July, 2002.

President, Mt. Zion Water Supply Corporation

ATTEST:

Secretary, Mt. Zion Water Supply Corporation