METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, MUNICIPAL WATER DISTRICT OF ORANGE COUNTY AND ORANGE COUNTY WATER DISTRICT - 2008

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1. Section VI. OPERATING COMMITTEE subsection A.l.a is revised to read: a. Metropolitan shall have the right to: (1) deliver and store imported water supplies in the Orange County Basin ("Program Basin") at up to a rate of 16,500 acre-feet per year and up to 66,000 AF in storage at any time ("Maximum Storage Amount"), subject to higher amounts if approved in advance by Program Agency acting in its capacity as basin manager, and (2) cause Metropolitan stored water in the Program Basin to be produced at a rate of 20,000 AF per year, pursuant to the Exhibit G "Performance Criteria" of this Agreement. L'pon completion of Program extraction wells, if it is determined by Program Agency that the wells are able to produce 22,000 AF per year, the "Performance Criteria" at Exhibit G shall be adjusted accordingly and Metropolitan's right increased to 22,000AF per year. If it is determined that the extraction rate shall officially remain at 20,000 Afper year, Program Agency will work with the Operating Parties during times of requested storage extraction in attempt to achieve 22,000 AF per year. Additionally Program Agency will consider utilizing its available basin management programs in attempt to achieve 22,000 AF per year. However failure to meet this goal will not create any penalties to Program Agency and the Operating Parties. If the cost of the Yorba Linda Feeder Bypass increase beyond X8.72 million, Metropolitan shall not be entitled to any further increases in storage or performance in compensation even if it decides to incur such costs and complete the Bypass. 2. Miscellaneous A. The Agreement is, and shall continue to be, in full force and effect, except as specifically amended by the First Amendment and this Second Amendment. This Second Amendment shall not be construed to be a waiver of any provision of the Agreement, or First Amendment, or a consent to any failure to comply with the Agreement. B. Except as otherwise expressly provided herein, the Agreement is in all respects ratified and confirmed, and nothing contained in this Second Amendment shall, or shall be construed to, modify, invalidate or otherwise affect any provision of the Agreement or any right of the parties arising thereunder. C. This Second Amendment may be executed in as many counterparts as maybe deemed necessary or convenient and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an original, but all such counterparts shall constitute but one and the same agreement. D. This Second Amendment shall be governed by and construed in accordance with the laws of the State of California.