ORANGE COUNTY WATER DISTRICT -2017

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basin groundwater production requirements and limitations by OCWD pursuant to Section 31.5 of the OCWD Act. Project Water is hereby established as a separate class of water for the purposes of Section 31.5 of the OCWD Act. 9.6 Conditions Subsequent: The performance of this Agreement is conditioned upon OCWD's continued ability feasibly to produce and distribute Project Water for sale to RETAILER and resale by RETAILER to Project Customers in a cost-effective manner. Subsequent to the date of this Agreement, should OCWD determine in its sole discretion that unanticipated increases in the cost of producing or distributing Project Water or new or modified regulatory requirements governing the production, distribution, quality or use of Project Water render the Green Acres Project economically unfeasible, OCWD may cease production and distribution of Project Water upon ninety (90) days written notice to RETAILER. In the event that OCWD ceases the production and distribution of Project Water pursuant to this paragraph M, this Agreement shall terminate and OCWD shall incur no liability to RETAILER or any Project Customer by reason of the termination of this Agreement or the termination of production and delivery of Project Water. 93 No Duplication of Services IrugWgd or seated: OCWD and RETAILER mutually understand and agree that the construction and operation of the Project Facilities and the distribution and sale of Project Water by OCWD to RETAILER for sale by RETAILER to Project Customers pursuant to this Agreement do not constitute either a duplication of RETAILER's retail water service or a taking of any property of RETAILER within the meaning of Section 1501, et seq„ of the California Public Utilities Code, RETAILER shall have no right to institute any action against OCWD pursuant to Sections 1503, 1504 or 1505.5 of the Public Utilities Code by reason of the construction and operation of the Project Facilities and the distribution and sale of Project Water by OCWD to RETAILER in conformance with this Agreement. 9.8 Warranty: OCWD represents and warrants that under the OCWD Act, OCWD, without the consent of any other public agency water purveyor, may enter into this Agreement to deliver and sell Project Water to RETAILER for resale by RETAILER to Project Customers or lands within the service boundaries of RETAILER. 9.9 onstruction. This Agreement shall be construed according to its plain meaning and as if prepared by all parties hereto. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 9.10 IntegraAM: The parties herein have set forth the whole of their agreement, and the performance of this Agreement constitutes the entire consideration intended herein. 9.11 ucces o s: This Agreement and all of the provisions herein shall be binding upon and inure to the benefit of OCWD and RETAILER, and their respective successors and assigns. 14 of 20