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groundwater production above the BPP during the Project Term shall be produced solely from <br />Well 32 in order to receive partial exemption set forth in Paragraph 2.5 below. <br />1.2. In order to obtain the partial exemption set forth in Paragraph 2.5 below, the City <br />shall blend all groundwater produced from Well 32 with groundwater produced from Well 36 <br />and 39 in such proportions that the blended groundwater does not exceed the primary drinking <br />water standard for nitrate established by USEPA and CDPH, and the City shall deliver the <br />blended groundwater to its customers or to City facilities for potable beneficial uses. <br />1.3. The City shall be responsible for all costs incurred in the operation and <br />maintenance of Well 32, Well 36, Well 39, and all ancillary facilities used for the blending of <br />groundwater produced from such wells and the distribution of that blended groundwater to City <br />customers or facilities for potable beneficial use, including but not limited to labor, materials and <br />power. <br />1.4. The City shall take out and maintain in effect at all times during the term of this <br />Agreement comprehensive general liability insurance in an amount not less than $2 million per <br />occurrence, for bodily injury, death and property damage, naming OCWD as an additional <br />insured under such policy. An endorsement evidencing this insurance coverage shall be <br />furnished to OCWD prior to the City filing with OCWD a petition pursuant to Section 38.1 of <br />the OCWD Act (as outlined in Section 5). If the City is, or becomes, partially or fully self - <br />insured for its public liabilities, a letter executed by the City's Mayor or City Manager stating the <br />City's self - insured status and acknowledging its responsibility to respond to the indemnification <br />of OCWD as provided in Paragraph 5.5 below, may be furnished in lieu of the insurance <br />endorsement. The City shall provide written notice to OCWD of any change in the City's <br />insured or self - insured status during the Project Term within 30 days of the effective date of such <br />change. <br />SECTION 2. PROJECT TERM BASIN EQUITY ASSESSMENT AND <br />REPLENISHMENT ASSESSMENT PAYMENTS <br />2.1. The City shall file water production statements and a basin equity assessment <br />statement in strict compliance with Sections 29(a) and 31.50) of the OCWD Act, respectively, <br />for all groundwater produced by the City during the Project Term, including all groundwater <br />produced from Well 32, Well 36, and Well 39. <br />2.2. On or before the 15th day of each month, during the Project Term, the City shall <br />file with OCWD a monthly report reflecting the quantity of groundwater produced by Well 32 <br />through the end of the preceding calendar month, and the total quantity of groundwater produced <br />by Well 36 and Well 39 to date (through the end of the preceding calendar month) during the <br />Project Term (a "Monthly Project Production Report"). <br />2.3. Concurrently with the filing of the City's basin equity assessment report pursuant <br />to Section 31.50) of the OCWD Act, the City shall file with OCWD a statement, verified by a <br />written declaration under penalty of perjury, setting forth the total amount of groundwater <br />produced from Well 32 during the Project Term (the "Project Production Statement "). <br />City of Santa Ana Agreement <br />...t aoaio2n3 -3- <br />xxxxx. 251 -7 <br />