ORANGE COUNTY WATER DISTRICT -2017

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F. In 1991, OCWD began operating a water treatment facility, transmission mains and distribution pipeline system (including mainlines and service lines) and, in some cases, on - site plumbing, known as the "Green Acres Project", for the purpose of reclaiming wastewater received from OCSD (hereinafter, "Project Water") and distributing the Project Water for appropriate landscape irrigation and industrial purposes in order to supplement and conserve the supply of potable groundwater available to the residents and water users within the boundaries of OCWD. OCWD entered into agreements with retail water providers within OCWD's boundaries, including RETAILER, for the distribution and sale of Project Water within the respective boundaries of RETAILER and the other retail water agencies contracting with OCWD for Project Water. OCWD has operated the Green Acres Project continually since 1991; and during that period, RETAILER has continually purchased Project Water for resale to certain customers for landscape irrigation and/or industrial uses. OCWD and RETAILER desire to continue use of the Green Acres Project and its associate Project Water. A plat map depicting the location of the facilities comprising the Green Acres Project which OCWD currently operates and maintains is set forth as Exhibit A hereto. G. OCWD and RETAILER mutually acknowledge that the use of reclaimed water for landscape irrigation is of mutual benefit to OCWD and RETAILER in fulfilling their joint responsibilities for the conservation of water resources in accordance with Sections 13550 and 13551 of the California Water Code. 1I. OCWD and RETAILER mutually desire to terminate their existing Project Water agreement and enter into a new agreement to set forth the terms and conditions wider which OCWD will continue to sell Project Water to RETAILER for resale by RETAILER to appropriate landscape irrigation and industrial water users within the service boundaries of RETAILER, and under which RETAILER will continue to purchase Project Water from OCWD for such resale purposes. NOW, THEREFORE, in consideration of the facts recited above and the terms, covenants and conditions herein contained, the parties hereto agree as follows: SECTION ONE: TERMINATION OF PREVIOUS AGREEMENT 1.1 OCWD and RETAILER mutually agree that the written agreement entered into between OCWD and RETAILER, entitled "AGREEMENT BETWEEN ORANGE COUNTY WATER DISTRICT AND CITY OF SANTA ANA REGARDING DISTRIBUTION AND SALE OF GREEN ACRES PROJECT WATER" and dated September 21, 1988, relating to the construction of the Project Facilities and the sale of Project Water by OCWD to RETAILER for resale to RETAILER's Project Customers, is hereby terminated as of the effective date of this Agreement and superseded by this Agreement. 2 of 20