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<br />. . <br /> <br />. <br /> <br />. <br /> <br />SECTION 4. OBLIGATIONS OF THE OPERATING PARTY. <br /> <br />4.1. Cooperation Regarding MWD Agreement. The Operating Party shall <br />cooperate in good faith and assist the Program Agency and Member Agency in fulfilling the <br />terms of the MWD Agreement, including the provision of requested assistance to the Program <br />Agency in the design and construction of the Program Well. In this regard, the Operating Party <br />hereby acknowledges that the MWD Agreement provides for a budget of eleven million dollars <br />($11,000,000.00) for the construction of eight program production wells (the "Budget"). The <br />Operating Party shall make reasonable efforts to ensure that the design and construction of the <br />Program Well, in conjunction with the design and construction of the other production wells <br />required under the MWD Agreement, does not exceed the Budget. Notwithstanding, the <br />Program Agency is responsible to provide the necessary funding to construct the program well to <br />the satisfaction of the Operating Party. The design and materials utilized for the program well <br />shall be consistent with the construction of previous wells built by the Operating Party. As <br />between the Member Agency and the Program Agency, Program Agency is ultimately <br />responsible for any cost exceeding the Budget. <br /> <br />4.2. Program Well Site. The Operating Party shall supply, at no cost to the <br />Member Agency, Program Agency, and MWD the use of a site for the construction of the <br />Program Well as shown on Exhibit B. Operating Party shall retain title to said Program Well site <br />subj ect to the Program Agency's right to use said site during the term of this Contract for the <br />purposes set forth herein. Operating Party shall grant to Program Agency an easement to <br />construct and access the Program Well. <br /> <br />4.3. Ownership and Operation and Maintenance. The Operating Party shall <br />own the Program Well and at its sole cost and expense assume the obligation of the MWD <br />Agreement to operate and maintain the Program Well shown in Attachment "B" in as good and <br />efficient condition as upon its construction, ordinary and reasonable wear and depreciation <br />excepted, and otherwise in accordance with industry standards (and applicable standards and <br />requirements of the State of California Department of Water and Resources, in its funding <br />capacity under the MWD Agreement), and as required by the MWD Agreement. The Operating <br />Party is not responsible for reductions in the Program Well capacity resulting from changed <br />groundwater basin water levels. The Operating Party is not responsible for providing wellhead <br />treatment that would be required due to changes in groundwater quality or new drinking water <br />regulations. <br /> <br />4.3.1. The Operating Party shall provide for all normal repairs, renewals, <br />and replacements due to normal wear and tear necessary to the efficient operation ofthe Program <br />Well, and shall provide personnel sufficient in numbers and qualifications to operate and <br />maintain the Program Well. <br /> <br />4.3.2. The Operating Party shall provide requested documentation to the <br />Program Agency regarding said operation and maintenance of the Program Well, including but <br />not limited to any such documentation required under the MWD Agreement. <br /> <br />4.3.3. The Operating Party may use the Program Well for purposes <br />unrelated to the Program so long as such use does not interfere with the Program and the <br /> <br />131/022499-0028 <br />388856.01 a08/28/03 <br /> <br />-4- <br />