ORANGE COUNTY WATER DISTRICT (2)

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for PFOA and PFOS, the first step in the regulatory process leading to DDW setting enforceable MCLs. As of the Effective Date, DDW projected establishing PHGs for PFOA and PFOS in 2021, with MCLs projected to be established by the Fall of 2023. G. The Parties recognize the necessity of and commit to a high level of coordination to expeditiously design, construct and operate a PEAS treatment system ("Treatment System") to remove PEAS from groundwater extracted by Well #38. H. Until a Treatment System is constructed for Well 438, the City will be purchasing greater amounts of more expensive imported water. I. OCWD and the City mutually desire to enter into this Agreement pursuant to the OCWD Act to document the responsibilities of the Parties in the funding, design, construction and operation of the Well 438 HAS Treatment System. J. OCWD has the authority to "construct, purchase, lease, or otherwise acquire, and to operate and maintain necessary waterworks and other works, machinery, [and] facilities ... useful or necessary to ... protect the quality of the common water supplies of [OCWD] and purposes incidental thereto." OCWD may also perform groundwater cleanup, abatement, or remedial work in cooperation with any other governmental agency, and may initiate cost recovery actions against persons responsible for causing contamination of the Basin, and for its costs in cleaning up or containing contamination or pollution of the Basin. OCWD is also authorized under Section 2(6)(1.) of the OCWD Act to protect and improve water quality within the Basin by entering into contracts with Producers to produce more groundwater from the Basin, while taking less water from alternative non -tributary sources, where OCWD determines that such increased production of groundwater will result in removal of contaminants or pollutants from the Basin that otherwise would not be removed. Specifically, OCWD has authority, "for the common benefit of the district and for the purpose of managing the groundwater basin and managing, replenishing, regulating, and protecting the groundwater supplies within the district" to enter into an agreement with Producers to increase the production of groundwater in lieu of water from an alternative non -tributary source for the purpose of removing contaminants or pollutants from the Basin. OCWD may also "pay from district funds that portion of the cost of the groundwater production as will encourage the production for beneficial use of polluted or contaminated groundwater, as long as that pollution or contamination is impairing the quality of the water supplies within the district and the quality of the water supplies within the district will be improved by that production." K. Well #38 is very important to the City's operations to provide reliable water supplies to its service area. Given OCWD's ongoing implementation of the design and construction of PFAS treatment facilities at other City wells under the OCWD Program, the City has requested that OCWD design and construct necessary PFAS .treatment facilities as quickly as possible for this well under the terms of this Agreement. The Parties therefore agree as follows: 1. The Recitals above are deemed true and correct and are hereby incorporated in this Agreement as though fully set forth herein. The Parties agree that the actions that will be taken 2629/022499-0087 14979764.1 a0810212t -2-