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wind and wave erosion in Johnson Lake, additional lost hydro generation due to <br />lower head, costs of avoiding recreational impacts, and, with discharges above the <br />normal full canal flow, turbine cavitation damage, tailrace damage, and damage to <br />other components. <br />(3) Upon completion of activities to aid the creation or enhancement of peak, pulse or <br />short-duration high flows, sufficient water will be released from the EA to refill <br />the supply canal/reservoir systems to levels existing prior to the initiation of <br />reregulation and/or bypass activities, and to avoid refilling using the Districts' <br />storage water. Replacement water, including any EA water which is part of the <br />replacement water, will be available for use by the affected District or Districts <br />for power and/or irrigation. Timely replacement of water (as determined by the <br />affected District or Districts) will be arranged between the affected District or <br />Districts and the EA Manager. <br />(4) Similar to the Program's good neighbor policy regarding addressing adverse <br />impacts of the land component of the Program, the Program will address damages <br />to third parties impacted by regulation in the Districts' systems and/or intentional <br />EA bypass, such as fisheries, concessionaires, cabin owner's docks, boats, and <br />shore stations, sand dams, private river facilities and eyuipment, without regard to <br />any liability limitations that the Districts may otherwise have in place under other <br />agreements. The Program shall, prior to implementing operations under this <br />agreement in any water year, take appropriate measures to have in place a liability <br />insurance policy naming the Districts as co-insured to cover at least $1 million in <br />documented claims resulting from reregulation and/or EA bypass activities or <br />shall provide other means of addressing third party impacts that hold the Districts <br />harmless and are acceptable to the Districts. Payments of damages to third parties <br />and cost of the insurance policy or alternatives will be counted toward the $3.081 <br />million budgeted for reregulation and intentional EA bypass. <br />d. The GC will be kept informed of plans for reregulation with or without intentional EA <br />bypass and estimated costs, and will be provided the opportunity for comment through <br />the annual Program AOP process described in section 2 above as follows: <br />(1) As part of the development of the Program AOP described in Attachment 5, <br />Section 1, Subsection 2, the Districts will work cooperatively with the FWS to <br />explore potential water routing and delivery strategies. The EA Manager will <br />annually document the intent to implement reregulation with or without <br />intentional EA bypasss in the draft Program AOP, including the estimated amount <br />of EA water to be intentionally bypassed, the Districts facilities/diversion to be <br />used for reregulation or to be bypassed, and flow conditions anticipated when <br />bypasses would be requested. <br />(2) The Districts will independently provide estimates of their respective lost power <br />production and increased power acquisition costs and any other anticipated costs <br />associated with the proposed reregulation with or without EA bypass within 30 <br />days of receipt of the draft Program AOP for use by the EA Manager in <br />preparation of any revision to the Program AOP. <br />(3) When reporting to the GC on the status of the revised Program AOP per <br />Attachment 5, Section 1, Subsection 21, the Executive Director will particularly <br />note any costs associated with reregulation and/or bypass flows. The GC may <br />August 8, 2006 Water Management Process