METROPOLITAN WATER DISTRICT OF SO. CALIF ET AL

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Section 3: Ownership and Responsibilities 3.1 OCWD shall be the sole owner of the Project facilities. Metropolitan, MWDOC, CMWD, and SA have no ownership right, title, security interest or other interest in the Project facilities. 3.2 OCWD shall be solely responsible for all design, environmental compliance, right-of- way acquisitions, permits, construction, and cost of the Project and all modifications thereof. 3.3 OCWD shall be solely responsible for operating and maintaining the Project in accordance with all applicable local, state, and federal laws. Metropolitan, MWDOC, CMWD, and SA shall have no rights, duties or responsibilities for operation and maintenance of the Project. 3.4 OCWD shall install, operate and maintain metering devices for the purpose of measuring the quantity of Recovered Water, Deliveries to OCSD and Allowable Yield delivered to each End User. OCWD shall also provide electrical metering devices to accurately measure the energy used for the Project to determine incurred operation and maintenance costs. Metropolitan shall not pay for electrical energy cost if OCWD fails to install electrical metering devices. 3.5 OCWD shall, at all times during the term of this Agreement, use its best efforts to operate the Project facilities to maximize Allowable Yield on a sustained basis. 3.6 OCWD shall assist Metropolitan in its effort to forecast future Project production and cost. 3.7 OCWD shall notify and provide Metropolitan with copies of relevant agreements if OCWD decides to convey water using Project facilities to any party that is not an End User. Section 4: Billing Process 4.1 Metropolitan shall pay OCWD, through MWDOC, CMWD, and SA, the Final LRP Contribution for the Allowable Yield. 4.2 Metropolitan shall consult with OCWD to determine the Estimated LRP Contribution based on historic cost data and expected Project activities. Reconciliation of the Estimated LRP Contribution and Final LRP Contribution shall be performed by Metropolitan pursuant to Section 5. 4.3 OCWD shall invoice Metropolitan monthly for the Estimated LRP Contribution based upon the Allowable Yield billed to the End Users during the previous month. Metropolitan shall pay OCWD for invoiced Estimated LRP Contribution pursuant to Sections 4.1 and 4,2 by means of a credit included on the next water service invoice issued to MWDOC, CMWD, and SA. Agreement 22156 -5-