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<br />; <br /> <br />" <br /> <br />3. Q: How would this water transfer be accomplished? <br /> <br />A: IID would produce conserved water from on-farm or system projects, which <br /> <br />would be transferred to SDCW A at price that has been negotiated. Under California <br /> <br />State law lID may conserve and transferred water without the loss of the water rights. <br /> <br />4. Q: How much water is involved in this transfer? <br /> <br />A: Twenty thousand acre-feet of conserved water would be transferred in the first <br /> <br />year of the contract. Deliveries would increase in 20,000 acre-foot increments in ensuing <br /> <br />years until they reach a maximum of 200,000 acre-feet in year 10. A minimum of <br /> <br />130,000 acre-feet is prescribed in the agreement. (An acre-foot is about 326,000 gallons- <br /> <br />enough water to meet the annual household needs of two average families.) <br /> <br />5. Q: How long is the contract? <br /> <br />A: lID would continue to conserve water from on-farm and system projects for an <br /> <br />initial term of 45years. Either party may compel renewal for an additional 30 years. lID <br /> <br />has the right to recapture 34,000 acre-feet after 45 years for use in Imperial Valley. lID <br /> <br />and SDCW A may meet and confer to extend the contract past the 75lh year. <br /> <br />6. Q: What is the price for the water and how was it determined? <br /> <br />A: The price for the water to be transferred is indexed to the cost SDCW A pays <br /> <br /> <br />Metropolitan Water District (MWD) for its untreated water supply plus other MWD rates <br /> <br /> <br />and charges, less the cost of wheeling (transporting) the water. There is also a discount <br /> <br /> <br />rate starting at 25% decreasing to 5% in the 17lh year. (See the example below.) This <br /> <br /> <br />price was negotiated to take into account SDCWA's need for a more reliable supply if <br /> <br />water and the cost of conservation for lID and the water users. <br /> <br />1540 <br />