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JDK:bc: 10/10/88 <br />Water, and shall at all times maintain such permit and bear <br />all costs in complying with all present and future provisions <br />thereof and all renewals or subsequent such permits. <br />5.2 OCWD shall promulgate and enforce rules and regula- <br />tions regarding the distribution, delivery and sale of <br />Project Water to RETAILER, and governing the use of Project <br />Water resold by RETAILER to Project Customers (hereinafter, <br />the "Project Rules"). OCWD shall pay all costs incurred in <br />the drafting and preparation of the Project Rules. OCWD <br />shall obtain all requisite certifications and approvals from <br />all federal, state and local agencies having jurisdiction <br />over the production, quality and use of Project Water, <br />including, but not limited to, the California Regional Water <br />Quality Control Board - Santa Ana Region, and the State of <br />California Department of Health, that such Project Rules <br />comply with the regulations, requirements and orders of such <br />regulatory agencies. <br />5.3 OCWD shall transmit to RETAILER such approved <br />Project Rules for adoption by RETAILER, and RETAILER shall, <br />within ninety (90) days after receipt thereof, incorporate <br />the Project Rules into RETAILER's promulgated rules and <br />regulations governing the distribution, delivery and sale of <br />water within the service boundaries of RETAILER. Promptly <br />upon adoption, RETAILER shall transmit to OCWD RETAILER'S <br />adopted Project Rules, and RETAILER shall notify OCWD of any <br />amendments to or modifications of the Project Rules adopted <br />by RETAILER. Should OCWD choose either to make reasonable <br />25B-19 <br />-17- <br />EXHIBIT 1 <br />