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THIRD AMENDMENT TO GROUNDWATER STORAGE PROGRAM FUNDING AGREEMENT BY AND AMONG THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, ORANGE COUNTY WATER DISTRICT, AND MUNICIPAL WATER DISTRICT OF ORANGE COUNTY AND AMENDED TO ADD CITY OF ANAHEIM AND CITY OF SANTA ANA FOR THE PURPOSE OF ADJUSTING THE CERTIFICATION AND BILLING PROVISIONS OF THE GROUNDWATER STORAGE PROGRAM THIS THIRD AMENDMENT TO THE GROUNDWATER STORAGE PROGRAM FUNDING AGREEMENT, dated as of June 25, 2003, is entered into on , 2008 by and among The Metropolitan Water District of Southern California (Metropolitan), a public entity of the State of California, the Orange County Water District (OCWD or Program Agency), a water district of the State of California and the Basin Manager for the Orange County Basin, the Municipal Water District of Orange County, a municipal water district of the State of California, (MWDOC or Member Agency), the City of Anaheim (Anaheim), and the City of Santa Ana (Santa Ana) (Anaheim and Santa Ana are described as among the "Operating Parties" under the Agreement). I. RECITALS A. Since execution of the Groundwater Storage Program Funding Agreement by Metropolitan, OCWD and MWDOC in June 2003, and the effective date of the First Amendment on May 1, 2004, and the effective date of the Second Amendment on November 16, 2005, (the Groundwater Storage Program Funding Agreement, as amended by the First Amendment and Second Amendment, is hereby referred to as the "Agreement") the original parties, Metropolitan, OCWD and MWDOC, have reconsidered the storage, extraction and invoicing procedures for storing water within and extracting water from the Orange County Basin and correspondingly allocating such water to and removing such water from the Metropolitan Storage Account. With respect to storage, the Agreement currently provides for MWDOC to certify all stored water whether directly stored or stored in-lieu. Metropolitan then credits the water invoice for MWDOC, referred to as Member Agency under the Agreement, for water allocated to the Metropolitan Storage Account. With respect to extraction, the Agreement currently provides that the Metropolitan water invoice for all water extracted from the Metropolitan Storage Account be billed to MWDOC, with MWDOC paying the invoice and then submitting it to OCWD, the Program Agency under the Agreement, to collect for reimbursement from the Operating Parties, which include two other Metropolitan member agencies, Anaheim and Santa Ana. Because Metropolitan member agencies are among the Operating Parties, administrative difficulties have arisen with these procedures. As a result, this Third Amendment will modify the certification and billings procedures under the Agreement to provide that any participating Metropolitan member agency overlying the Basin may store water in the Metropolitan Storage Account and to provide for direct billing by Metropolitan to each participating Metropolitan member agency. B. The City of Anaheim and the City of Santa Ana are added as parties to the Agreement pursuant to this Third Amendment solely for the purpose of participating in the Agreement with regard to revised certification and billing procedures for Metropolitan member agencies. C. This amendment changes the operation of the Program as follows: 250-3