IRVINE RANCH WATER DISTRICT (3) -1999

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LEASE AGREEMENT FOR COLORED WATER PRODUCTION WELL SITES ORIGINAL d 3 e „ kt THIS AGREEMENT is made and entered into this day of 1999, by and between the CITY OF SANTA ANA, a Charter City of the ,State of California (hereinafter "SANTA ANA") and the IRVINE RANCH WATER DISTRICT, a California water district formed and existing pursuant to Section 34000 et sQ. of the Water Code of the State of California (hereinafter "IR)AD"). RECITALS: A. The parties hereto, together with Orange County Water District (OCWD"), have entered into that certain "Agreement for Water Production and Transmission Facilities," dated March 18, 1981, as amended by the "Amendment to Agreement for Water Production and Transmission Facilities," dated May 2, 1984 ("First Amendment"), and as amended by the "Second Amendment to Agreement for Water Production and Transmission Facilities," dated September 19, 1990 ("Second Amendment") (hereinafter collectively referred to as the "Project Agreement") which provides for the implementation of a project consisting of conjunctive use water wells, pumping, transmission and appurtenant facilities (hereinafter "Project"). B. A Third Amendment of the Project Agreement ("Third Amendment") has been proposed which would, among other things, raise the equivalent basin production percentage for Project water to 28,000 acre-feet per annum provided that any production of non -colored water from the Project above 20,000 acre-feet per annum and up to 28,000 acre-feet per annum that occurs after the date specified in the Third Amendment that is not matched with an equal amount of colored water production from the Project area shall be subject to OCWD's basin equity assessment (BEA).