MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (3) - 2004

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. . assume the obligation of the MWD Agreement, as provided herein in Section VI.B., to operate and maintain the Program WelIs shown in Attachment "B" in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted, and otherwise in accordance with industry standards (and applicable standards and requirements of the State of California Department of Water and Resources, in its funding capacity under the MWD Agreement), and as required by the MWD Agreement. The Operating Party is not responsible for reductions in the Program Wells capacities resulting ITom changed groundwater basin water Icvels. The Operating Party is not responsible for providing wellhead treatment that would be required due to changes in groundwater quality or new drinking water regulations. In thc event thc averagc concentration (based on an initial and confirmation sample) of any contaminant in the water from thc Program Wells exceeds any state or federal regulatory standard(s) for potable water supply, thc extraction provisions of Paragraph 4.5 and the default provisions of Paragraph 4.6 below shall not apply. Under this scenario, if Operating Party determines it has excess well capacity within it's system that can be utilized for this program, Operating Party will use such to extract the MWD Stored Water. 4.3.1. The Operating Party shall provide for all normal repairs, renewals, and replacements due to normal wear and tear necessary to the efficient operation of the Program Wells, and shall provide personnel sufficient in numbers and qualifications to operate and maintain the Program Wells. 4.3.2. The Operating Party shall provide requested documentation to the Program Agency regarding said operation and maintenance of the Program Wells, including but not limited to any such documentation required under the MWD Agreement. 4.3.3. The Operating Party may use the Program WeIls for purposes unrelated to the Program so long as such use does not interfere with the Program and the Operating Party's MWD Stored Water extraction obligations as set forth in Paragraph 4.5 below. 404. Reports. The Operating Party shall provide any and all budgeting documents and other reports pertaining to the Program Wells and its overall groundwater pumping capacity as may reasonably be required by the Program Agency or the Member Agency. 4.5. Extraction ofMWD Stored Water. Within fifteen (15) days of receiving notification from the Program Agency or the Member Agency to extract MWD Stored Water, the Operating Party shall extract such quantity of MWD Stored Water from the Program Wells or any other existing wells, or be subject to the financial penalty set forth in section XIII.B. of the MWD Agreement unless the Operating Committee recommends other remedies to avoid the penalty. The amount of extraction shall be determined per paragraph 2.5 of this contract which provides for establishing monthly operating yields. The Operating Party shall place such produced MWD Stored Water into the Operating Party's distribution system, and pay for such produced MWD Stored Water at MWD's then-effective rate for fuIl service non-interruptible treated supplies, less the energy and operation and maintenance cost of the weIls, so long as the water extracted from the Program Wells are of sufficient quality to be served as a potable water supply, as determined by all applicable state and/or federal standards, without further treatment except for standard chlorination practices. Operating Party shaIl not be deemed in breach of this requirement unless it fails or refuses, for reasons within its control, to begin extracting the