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JDK:bc: 10/10/88 <br />subsequently amended to conform to any future regulatory <br />requirements for such use; provided, however, that OCWD shall <br />not have any obligation to modify the quality of Project <br />Water to meet the needs of any particular Project Customer. <br />3.2 During the term of this Agreement, OCWD shall pay <br />all costs imposed by any and all governmental agencies having <br />jurisdiction over the quality or use of Project Water for the <br />issuance of any permits, licenses or approvals required for <br />the production, treatment, distribution or sale of Project <br />Water. OCWD further shall be responsible for paying any <br />charges, fees, surcharges, assessments or other sums imposed <br />or levied upon Project Water by the Municipal Water District <br />of orange County. <br />3.3 OCWD shall inform RETAILER promptly after becoming <br />aware of any proposed or actual modifications by any agency <br />having jurisdiction over the quality of Project Water to any <br />requirements governing the minimum standards of quality for <br />or use of Project Water, or of any changes in the legally <br />permissible uses which might affect the use of the Project <br />Water sold by OCWD to RETAILER for resale by RETAILER to <br />Project Customers, and OCWD shall bear all costs of <br />conforming to any such future requirements. RETAILER shall <br />have no obligation to pay the cost of meeting any future <br />requirements governing the standards of quality for, or use <br />of, Project Water. <br />25B-15 <br />-13- <br />EXHIBIT 1 <br />