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<br />interested buyers and sellers and serve as a mechanism for interested parties to identify <br />each other. <br /> <br />Because there has been no active market in interruptible supply contracts <br />involving C-BT units, there is no "market price" for this type of transaction. A computer <br />program or model to assist in making price determinations could be helpful to both <br />potential buyers and sellers. The board may wish to explore development of such a <br />program, either under the sponsorship of the District and/or Subdistrict or independently <br />by interested parties. <br /> <br />Educational sessions by District staff, concerning the operation and structure of <br />interruptible supply arrangements and designed specifically for parties contemplating <br />entering into interruptible contracts as distinguished from general public information <br />efforts, could be helpful in increasing the comfort level of potential participants. <br />Educational materials for this purpose -- again, more specific than those used for general <br />public information purposes -- could be prepared. <br /> <br />Guidelines for contract approval <br /> <br />. <br /> <br />The District's board would determine what provisions are required in order to <br />comport with the operational requirements of the C-BT and Windy Gap Projects and to <br />protect non-contracting parties. Only provisions regarding these issues would be <br />mandated for all contracts. (Issues as to which a standard approach is recommended are <br />discussed below.) Most basic contract terms, including price, payment structure, and <br />price escalation provisions, would be left to the individual contracting parties to negotiate <br />and agree on. <br /> <br />The issues discussed here are both those that would be required to be included in <br />the contracts, and those that need not be set out in contracts but would be part of the <br />District's guidelines governing review and approval of interruptible supply agreements as <br />acceptable back-up supply for Windy Gap borrowing of C-BT water. <br /> <br />Number of C-BT units required as back-up supply for bonvwing by Windy Gap <br /> <br />In order to avoid injury to C-BT allottees, the Operating Criteria specify that <br />water debts arising from in-lieu deliveries of C-BT waters to Windy Gap must be repaid <br />on an acre-foot for acre-foot basis. The quota available to C.BT allottees in any given <br />year may be as low as one-half acre-foot per unit. Thus, as many as two units may be <br />required in order to repay each acre-foot of water owed. Therefore, the interruptible <br />supply contract on which borrowing is predicated must make two C-BT units available for <br />each acre-foot of water borrowed. The number of units actually transferred when the <br />contract is invoked to repay the debt would be based on the actual quota declared in the <br />year of transfer. <br /> <br />The District's guidelines pertaining to use of interruptible contracts as back-up <br />supply under the Operating Criteria should make clear that borrowing will be permitted <br />only to the extent that two units are available for each acre-foot borrowed. This is an <br /> <br />22 <br />