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In order to deliver Recycled Water from IRWD to OCSD during the winter via the intertie, a <br />portion of the Project's distribution system is used. Hence, in this Agreement, the cost of <br />facilities to make deliveries to Project End Users and OCSD via the OCWD/IRWD intertie are <br />prorated as outlined in Exhibit B, Section 5. <br />Groundwater <br />OCWD currently blends groundwater with Recycled Water produced by the tertiary plant to <br />control total dissolved solids (TDS) Ievels. Groundwater is ineligible for payment under this <br />Agreement. In addition, IRWD's groundwater may be pumped from satellite wells located in <br />Santa Ana into the Project's Recycled Water distribution system and conveyed to IRWD via the <br />intertie. IRWD may compensate OCWD for use of Project facilities to wheel groundwater <br />through the system. OCWD will receive water quality benefits in the form of reduced'total <br />dissolved solids levels in Recycled Water delivered to their Newport Beach customers. <br />Payments by IRWD for use of Project facilities to convey groundwater shall be treated as <br />negative capital and operation and maintenance cost values in Exhibits B and C. <br />Distribution System <br />The Project also includes varying diameter Recycled Water pipelines in Fountain Valley, Santa <br />Ana, Huntington Beach, Costa Mesa, Newport Beach, and Huntington Beach. Other facilities <br />include a treated water clearwell and pump station at GARP, storage facilities and booster pump <br />stations in the distribution system to maintain system operation and pressure. <br />End Users <br />Recycled Water from the Project will be used for non -potable landscape, agricultural, <br />commercial and industrial purposes. This amount excludes Recycled Water deliveries (about <br />5,000 AFY) to OCSD, which is not part of this Agreement. <br />Points of Connection <br />Project facilities shall terminate at the points of connection to the potable distribution systems, <br />sewer systems, storm drains, groundwater extraction systems, OCSD Plant Nos. 1 and 2, <br />connection to the OCWD/IRWD Intertie, secondary effluent connection to GARP, and meter <br />connections to the End Users. <br />Agreement 22156 -13- <br />