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JDK:bc: 10/10/88 <br />that billing period, a description of the maintenance, repair <br />and replacement activities of RETAILER, and the amount of <br />such actual costs incurred by RETAILER, pursuant to Section <br />4.1 hereinbelow during that billing period, and indicating, <br />for each Project Customer, the current meter reading, the <br />previous meter reading, and the total quantity of Project <br />Water purchased from OCWD and resold by RETAILER to such <br />Project Customer during the billing period. Together with <br />this statement, RETAILER shall transmit to OCWD payment in <br />accordance with paragraphs 2.4 and 2.5 for the Project Water <br />purchased from OCWD by RETAILER and resold by RETAILER to all <br />of the Project Customers during the billing period, after <br />deducting therefrom the actual costs incurred by RETAILER in <br />maintaining, repairing and replacing the Project Water <br />distribution system within RETAILER's boundaries as set forth <br />in Section 4.1 hereinbelow. <br />SECTION THREE: PROJECT WATER QUALITY REGULATIONS <br />3.1 OCWD shall deliver and sell to RETAILER pursuant to <br />this Agreement Project Water that shall conform to all <br />current and future requirements established by the California <br />Regional Water Quality Control Board - Santa Ana Region, and <br />all other federal, state and local agencies having <br />jurisdiction to fix minimum standards for the anticipated <br />landscape irrigation and industrial uses of the Project Water <br />by the Project Customers listed in Exhibit "B" hereto. The <br />anticipated quality of Project Water shall be as shown on <br />Exhibit "D" attached hereto and incorporated herein, or as <br />25B -14 - <br />EXHIBIT 1 <br />