Appendix A

NOTICE OF REQUIREMENT TO COMPLY WITH THE SUBDIVISION SERVICE EXTENSION POLICY OF KINGSLAND WATER SUPPLY CORPORATION

Pursuant to Texas Water Code, 13.2502, Kingsland Water Supply Corporation hereby gives notice that any person who subdivides land by dividing any lot, tract, or parcel of land, within the service area of Kingsland Water Supply Corporation, Certificate of Convenience and Necessity No. 12217, in Llano County, into two or more lots or sites for the purpose of sale or development, whether immediate or future, including re-subdivision of land for which a plat has been filed and recorded or requests more than two water or sewer service connections on a single contiguous tract of land must comply with Section F (the "Subdivision Policy") contained in Kingsland Water Supply Corporations tariff policy.

Kingsland Water Supply Corporation is not required to extend retail water utility service to a service applicant in a subdivision where the developer of the subdivision has failed to comply with the Subdivision Policy.

Applicable elements of the Subdivision Policy include:

Evaluation by Kingsland Water Supply Corporation of the impact a proposed subdivision service extension will make on Kingsland Water Supply Corporations water supply system and payments of the costs for this evaluation;

Payment of reasonable costs or fees by the developer for providing water supply capacity;

Payment of fees for reserving water supply service capacity;

Forfeiture of reserved water supply service capacity for failure to pay applicable fees;

Payment of costs of any improvements to Kingsland Water Supply Corporations system that are necessary to provide the water service;

Construction according to design by Kingsland Water Supply Corporation and dedication by the developer of water facilities within the subdivision following inspection.

Kingsland Water Supply Corporations tariff and a map showing Kingsland Water Supply Corporations service area may be reviewed at Kingsland Water Supply Corporations offices located at 1422 West Drive, Kingsland, TX 78639, the tariff/policy and service are map also are filed of record at the Texas Commission on Environmental Quality and may be reviewed by contacting TCEQ, c/o Utility Rates and Services Section, Water Supply Division, P.O. 13087, Austin, Texas 78711.