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Project Customers during the billing period, after deducting therefrom the actual costs incurred <br />by RETAILER in maintaining, repairing and replacing the Project Water distribution system <br />within RETAILER's boundaries as set forth in paragraph 5.1 herein below. <br />SECTION FOUR: PROJECT WATER QUALITY REGULATIONS <br />4.1 OCWD shall deliver and sell to RETAILER pursuant to this Agreement Project <br />Water that conforms to all current and future requirements established by the California Regional <br />Water Quality Control Board -- Santa Ana Region, California State Water Resources Control <br />:Board. Division of Drinking Water, County of Orange Health Care Agency, and all other federal, <br />state and local agencies having jurisdiction to fix minimum standards. The anticipated quality of <br />Project Water is shown on Exhibit E attached hereto and incorporated herein, and this Exhibit E <br />shall subsequently be revised to conform to any future regulatory requirements; provided <br />however, that OCWD shall not have obligation to modify the quality of Project Water to meet <br />the needs of any particular Project Customer. OCWD shall revise Exhibit E if and when OCWD <br />modifies the tertiary treatment technology, disinfection process, and/or introduces OCSD Plant <br />#2 effluent to the OAP treatment process, and provide written notice of such revised Exhibit E to <br />RETAILER. The parties acknowledge that Exhibit E can be revised by OCWD without <br />amending this Agreement after such revision's discussion at the Operating Group. OCWD shall <br />strive to meet or exceed the minimum criteria stated in Exhibit E. <br />44.2 During the term of this Agreement, OCWD shall pay all costs imposed by any <br />and all governmental agencies having jurisdiction over the quality or use of Project Water for the <br />issuance of any permits, licenses or approvals required for the production treatment, distribution <br />or sale of Project Water. If incurred by OCWD, the costs described in this paragraph shall be <br />included in the annual Project costs set forth in paragraph. 3.2 as components of the Project <br />Water rate charged by OCWD to RETAILER. <br />4.3 OCWD shall inform RETAILER promptly after becoming aware of any proposed <br />or actual modifications by any agency having jurisdiction over the quality of Project Water to <br />any requirements governing the minimum standards of quality for or use of Project Water, or of <br />any changes in the legally permissible uses which might affect the use of the Project Water sold <br />by OCWD to RETAILER for resale by RETAILER to Project Customers, and OCWD shall bear <br />all costs of conforming to any such future requirements. If incurred by OCWD, the costs <br />described in this paragraph shall be included in the annual Project costs set forth in paragraph 3.2 <br />as components of the Project Water rate charged by OCWD to RETAILER. <br />4.4 RETAILER shall perform Project Customer inspection and testing in accordance <br />with the Project Rules defined in paragraph 6.2, prepared by OCWD and transmitted to <br />RETAILER who may make additions, as amended from time to time by OCWD, and provide a <br />written record of such activities to OCWD within sixty (60) days of their performance. Expenses <br />for these activities shall not be reimbursed by OCWD. <br />7 of 20 <br />