ORANGE COUNTY WATER DISTRICT (4) - 2015

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groundwater production above the BPP during the Project Term shall be produced solely from Well 32 in order to receive partial exemption set forth in Paragraph 2.5 below. 1.2. In order to obtain the partial exemption set forth in Paragraph 2.5 below, the City shall blend all groundwater produced from Well 32 with groundwater produced from Well 36 and 39 in such proportions that the blended groundwater does not exceed the primary drinking water standard for nitrate established by USEPA and CDPH, and the City shall deliver the blended groundwater to its customers or to City facilities for potable beneficial uses. 1.3. The City shall be responsible for all costs incurred in the operation and maintenance of Well 32, Well 36, Well 39, and all ancillary facilities used for the blending of groundwater produced from such wells and the distribution of that blended groundwater to City customers or facilities for potable beneficial use, including but not limited to labor, materials and power. 1A. The City shall take out and maintain in effect at all times during the term of this Agreement comprehensive general liability insurance in an amount not less than $2 million per occurrence, for bodily injury, death and property damage, naming OCWD as an additional insured under such policy. An endorsement evidencing this insurance coverage shall be furnished to OCWD prior to the City filing with OCWD a petition pursuant to Section 38.1 of the OCWD Act (as outlined in Section 5). If the City is, or becomes, partially or fully self - insured for its public liabilities, a letter executed by the City's Mayor or City Manager stating the City's self - insured status and acknowledging its responsibility to respond to the indemnification of OCWD as provided in Paragraph 5.5 below, may be furnished in lieu of the insurance endorsement. The City shall provide written notice to OCWD of any change in the City's insured or self-insured status during the Project Term within 30 days of the effective date of such change. SECTION 2. PROJECT TERM BASIN EQUITY ASSESSMENT AND REPLENISHMENT ASSESSMENT PAYMENTS 11. The City shall file water production statements and a basin equity assessment statement in strict compliance with Sections 29(a) and 31.50) of the OCWD Act, respectively, for all groundwater produced by the City during the Project Term, including all groundwater produced from Well 32, Well 36, and Well 39. 2.2. On or before the 15th day of each month, during the Project Term, the City shall file with OCWD a monthly report reflecting the quantity of groundwater produced by Well 32 through the end of the preceding calendar month, and the total quantity of groundwater produced by Well 36 and Well 39 to date (through the end of the preceding calendar month) during the Project Term (a "Monthly Project Production Report "). 23. Concurrently with the filing of the City's basin equity assessment report pursuant to Section 31.50) of the OCWD Act, the City shall file with OCWD a statement, verified by a written declaration under penalty of perjury, setting forth the total amount of groundwater produced from Well 32 during the Project Term (the "Project Production Statement"). City of Santa Ana Ageement _ xxxxxx.l x08/02/13 -3 xxxxx.I