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SECTION 4 RESPONSIBILITIES OF NEWPORT BEACH 4.1 General Responsibilities NEWPORT BEACH shall review the Project's plans and financially contribute toward the Project Fund as indicated in Exhibit C2. 4.2 Environmental Review; Permitting NEWPORT BEACH shall comply with all of the commitments and conditions set forth in the environmental documentation, environmental permits, approvals, and applicable agreements obtained for the Project as those commitments and conditions apply to their responsibilities under this Agreement. Notwithstanding the foregoing, NEWPORT BEACH through its designated Project Representative shall review and approve all permit conditions and other resource agency approvals that affect the construction and O &M of the Facilities, or any portion thereof within its jurisdiction and in, on, or about its right -of -way as to its respective compliance with applicable Regulations. 4.3 Design NEWPORT BEACH shall review all draft and final Project design reports, and PS &E submitted for their approval and shall have its Project Representative respond in writing to SANTA ANA as to a submittal's review for approval in a timely manner. Subsequent to approval of the final design, any material design change variance shall require mutual approval by the Project Representatives. 4.4 Right of Way As indicated in the Preliminary Plan (Exhibit B) no pipelines for the Project are proposed to be installed within the public right -of -way of NEWPORT BEACH. However, in the event the final design necessitates the use of public right -of -way and in order to reduce Project costs, provided that a request is in compliance with all permits and regulatory approvals, NEWPORT BEACH shall allow the Project Facilities or portion thereof (including the aforementioned pipelines) to be constructed, operated, and maintained, after an appropriate review, within its respective right of way. Any additional project costs shall be shared by the Parties other than OCWD and IRWD. 4.5 Construction NEWPORT BEACH shall waive any costs or fees with respect to the permits issued by it in furtherance of the Project. The terms and conditions of the permits shall be consistent with this Agreement, and in the case of a conflict, the terms and conditions of this Agreement shall control. Prior to SANTA ANA's construction completion of the Diversion Structure and other Facilities, NEWPORT BEACH shall have its respective Project Representative conduct a walk - through to promptly review the improvements and provide any comments. Upon satisfaction of any and all Santa Ana -Delhi Channel Diversion Project Agreement D15 -013 25G -27 Page 23 of 74