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<br />b) The price for any additional conserved water will be the same as the price for the base <br />amount of transferred water. <br /> <br />c) Discussions concerning the transfer of additional conserved water may take place within <br />years 4 through 10 of the agreement (during the ramp up period), but the agreement provides that <br />no additional conserved water will be provided to the Authority until on or after year 11 of the <br />transfer agreement. <br /> <br />d) If lID decides to produce additional conserved water the Authority has the right to <br />purchase that water. However, the agreement recognizes that lID may need some of that <br />additional conserved water for other purposes, such as settling disputes with MWD or Coachella. <br />Accordingly, the agreement provides that lID has the right, within the first seven years of the <br />transfer agreement, to exclude water from the amount of additional conserved water made <br />available so as to settle legal disputes with MWD or Coachella. <br /> <br />e) Additional conserved water specifically does not include water generated as a result of the <br />19BB IID-MWD transfer agreement and also does not include water saved by conserving seepage <br />from the All American Canal. <br /> <br />6. Term <br /> <br />a) The initial term of the transfer agreement is 45 years from the effective date (after certain <br />conditions are satisfied or waived). If the agreement is not renewed at the end of the 45 year <br />period the agreement terminates. Any additional conserved water made available by lID to the <br />Authority would also be available during the 45 year initial term of the base transfer agreement. <br /> <br />b) The agreement may be renewed for an additional period of 30 years. Both lID and the <br />Authority have the unilateral right to renew the agreement for the 30 year renewal period. <br />Renewal of the agreement may be avoided by either party if there is a material change in the <br />wheeling arrangement. lID's right to recapture 34,000 acre feet for municipal and industrial <br />purposes goes into effect when the renewal term commences. If the agreement is renewed, then <br />the initial and additional conserved water will be available to the Authority. <br /> <br />c) Although the agreement provides no obligation for either party to continue the transfer <br />agreement beyond 75 years, the agreement provides that lID and the Authority will meet and <br />confer during the latter part of the renewal period in order to discuss the possible continuation of <br />the transfer agreement beyond the end of the renewal period. Any continuation of the agreement <br />beyond the renewal term would be under terms negotiated by the parties at that time. <br /> <br />d) The agreement provides cross "rights of first refusal" to lID and the Authority in regard to <br />post-renewal period transfers. In other words, for a period of ten years after the end of the <br />renewal period, lID has a right of first refusal to supply water to the Authority if the Authority <br />attempts to obtain water elsewhere, and the Authority has a right of first refusal to purchase <br />conserved water from lID ifIID attempts to transfer conserved water elsewhere. <br /> <br />1496 <br /> <br />-3- <br />