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(1) OCWD hereby releases each Producer, their officers, <br />directors, employees, agents and representatives, from any and all liability, known or unknown, <br />arising out of, or otherwise attributable to the discovery and/or presence of PFAS in the Santa Ana <br />River, the Basin, Producers' Water Producing Facilities, and each Producers' potable or non - <br />potable water system, before, during or after treatment. Such release shall include, but is not <br />limited to, claims or litigation initiated by third parties against a Producer or OCWD, and any other <br />legal, administrative, or regulatory actions associated with a Producer's performance of obligations <br />under this Agreement (unless attributable to a Producer's sole active negligence or willful <br />misconduct during such performance). <br />(2) This release by OCWD does not pertain in circumstances <br />where liability results, or is alleged to result, from the failure of a Producer to properly operate and <br />maintain the Treatment System constructed per this Agreement. <br />C. Producer's Release of other Producers. <br />(1) Each Producer hereby releases and shall hold the other <br />Producers harmless from liability associated with the presence of PFAS in the Basin. <br />(2) However, this release by each Producer does not pertain to <br />circumstances where liability results, or is alleged to result, from the failure of the other <br />Producer(s) to properly operate and maintain the Treatment System(s) constructed per this <br />Agreement. <br />D. No Admission of Liability. Nothing contained herein shall be <br />deemed an admission of liability by any Party to this Agreement. <br />7.4 Legal Cost Recovery Efforts. <br />A. OCWD anticipates commencing litigation against responsible <br />parties, including chemical manufacturers of PFAS, in order to recover costs from persons <br />responsible for placing PFAS into the stream of commerce and/or the environment where it could <br />make its way into the Basin ("Damages"). The Producers shall support, coordinate, assist and <br />comply with all reasonable OCWD requests regarding OCWD's cost recovery litigation related to <br />pursuit of Damages associated with PFAS. <br />B. OCWD will request each Producer that has sustained Damages to <br />determine if intends to jointly retain counsel ("Shared Litigation Counsel") with OCWD in <br />litigation to recover Damages. Producers who join as co -plaintiffs are "Participating Producers" <br />in OCWD's cost recovery efforts. <br />C. OCWD and Participating Producers will establish a Steering <br />Committee and Executive Committee to direct Shared Litigation Counsel and make litigation <br />decisions. <br />D. OCWD and Participating Producers will enter into an appropriate <br />joint prosecution/common interest agreement to hire Shared Litigation Counsel and establish <br />2629/022499-0087 <br />14979764.1 a04/17R0 -14- <br />