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and agree that additional non -potable water users within the boundaries of RETAILER may at <br />some future time be served with Project Water and become Project Customers without the <br />necessity of amending this Agreement, provided that a water user within the service boundaries <br />of RETAILER shall become a new Project Customer only with the approval of both OCWD and <br />RETAILER, and provided further, that OCWD shall have the sole discretion to determine <br />whether to expand the Project Facilities or the production and distribution capacity of the Project <br />Facilities to meet any future demand for Project Water that may be generated within the <br />boundaries of RETAILER. All future water users within the service boundaries of RETAILER <br />who become Project Customers shall be subject to the Project Rules as defined in paragraph 6.2 <br />and adopted by RETAILER pursuant to paragraph 6.3 herein below. <br />2.7 The addition of infrastructure to serve future Project Customers shall be approved <br />by OCWD, RETAILER, and pertinent regulatory agencies. Additional infrastructure may <br />include service laterals, mainline pipelines, pump stations, vaults, meters, and other components. <br />Unless authorized in writing by OCWD, the permitting, design, construction, inspection, <br />specialty inspection and materials testing, start-up, on -going regulatory compliance, and those <br />costs described in Paragraph 2.3 shall be performed at no expense to OCWD. The OCWD staff <br />time for review of the design, construction inspection of the additional infrastructure, and <br />assistance in regulatory permitting shall be included in the annual Project Water costs set forth in <br />paragraph 3.2 as components of the Project Water rate charged by OCWD to RETAILER, unless <br />otherwise stipulated in writing by OCWD. OCWD shall cause the Project Facilities within the <br />boundaries of RETAILER. to be constructed in accordance with the construction standards of <br />RETAILER. Addition of infrastructure located within public right-of-way and upstream of the <br />RETAILER meters described in paragraph 2.4 shall become the property of OCWD after written <br />construction acceptance by OCWD, RETAILER, and any other pertinent agency. Additional <br />infrastructure within private property shall not be owned by OCWD, unless authorized in writing <br />by OCWD and pursuant to an easement granted from the land owner to RETAILER and/or <br />OCWD. Unless authorized in writing by OCWD, new RETAILER meters shall be located in the <br />public right-of-way. The regulatory permitting and/or approvals of any future Project Customer <br />site shall be obtained prior to delivery of Project Water to that site. RETAILER shall lead the <br />effort to obtain these permits and/or approvals and OCWD shall assist and coordinate with the <br />RETAILER. <br />2.8 Major expansions to the Project Water distribution system may be performed <br />under a different ownersbip-maintenance model than described in Section 2 if mutually approved <br />and defined in writing by OCWD and RETAILER. <br />SECTION THREE: PURCHASE AND SALE OF PROJECT WATER <br />3.1 RETAILER shall have the exclusive right to purchase Project Water from <br />OCWD, at the point of connection to each Project Customer, and to resell Project Water to the <br />Project Customers shown in Exhibit C, and such other landscape irrigation and industrial water <br />5 of 20 <br />