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C. SANTA ANA and IRWD wish to facilitate the implementation of the colored <br />water production contemplated by the Third Amendment by making this agreement regarding <br />colored water well sites. <br />D. This Agreement is entered into in recognition of the previous commitments <br />among the parties under the Project Agreement, Nothing contained herein is intended to be <br />construed as concurrence by IRWD with any interpretation of the Project Agreement or this <br />Agreement contrary to its position that the policies and programs of OCWD should afford equal <br />treatment to all producers, <br />E. The payment of consideration by IRWD to SANTA ANA under this Agreement is <br />intended to compensate SANTA ANA for the use of its property as well sites by IRWD. The <br />amount of this compensation is the result of a negotiated agreement between IRWD and SANTA <br />ANA which recognizes the amount of water produced from the Project and the value of these <br />well sites to both parties. <br />WHEREFORE, in consideration of the foregoing and the mutual covenants and promises <br />hereinafter contained and made, and subject to all the terms and conditions hereof, the parties <br />hereto agree as follows: <br />Section 1. SANTA ANA hereby leases to IRWD the sites depicted in Exhibit "A" <br />hereto for three (3) colored water production wells with capacities of 4,000 acre-feet per annum <br />2 <br />