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I <br />b <br />ORIGINAL. <br />d` N, <br />LEASE AGREENIENTFOR COLORED <br />WATER PRODUCTION WELL SITES <br />W4 <br />THIS AGREEMENTis made and entered into this day of <br />1999, by and between the CITY OF SANTA ANA, a Charter City of the <br />,3 <br />State of Califioniia (hereinafter "SANTA ANA") and the IRVINE RANCH WATER DISTRICT, <br />a California water district formed and existing pursuant to Section 34000 et sec <br />— j. ofthe Water <br />Code of` the State of California (hereinafter "IRWD"). <br />R E C I T AL S: <br />I <br />A. The parties hereto, together with Co <br />unty ounty Water District (OCWD"), have <br />entered into that certain "Agreement for Water Production and Transmission Facilities," dated <br />March 18, 1981, as amended by the "Amendment to Agreement for Water Production and <br />Transmission Facilities," dated May 2, 1984 ("First Amendment"), and as amended by the <br />"Second Amendment to Agreement for Water Production and Transmission Facilities," dated <br />September 19, 1990 ("Second Amendment") (hereinafter collectively referred to as the "Project <br />Agreement") which provides for the implementation of project consisting of conjunctive use <br />water wells, pumping, transmission and appurtenant facilities (hereinafter "Project"). <br />B. A Third Amendment of the Project Agreement ("Third Amendn-ient") has been <br />proposed which Would, among other things, raise the equivalent basin f-)roduction percentage for <br />Project water to 28,000 acre-feet per annum provided that any production of non -colored water <br />from the, Project above 20,000 acre-feet per annuin and LIP to 28,000 acre-feet per annum that <br />occurs at -ter the date specified in the Third Amendment that is not matched with an equal aITIOUnt <br />of colored water production from the Project area shall be subject to OCWD's basin equity <br />assessment (FIFA). <br />