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<br />~ <br /> <br />,J <br /> <br />7. Q: Would the price for the conserved water remain steady throughout the <br /> <br />contract? <br /> <br />A: Either lID or the SDCW A may request a redetermination of the price after the <br /> <br />first 10 years of the contract. As the market for water transfers expands, the price <br /> <br />redetermination wiII be tied to the price of similar water transfers. Until the market <br /> <br />matures, the price will be redetermined based on a comparison with the cost of <br /> <br />comparable transfers, the SDCW A water supply projects and MWD's water rates. <br /> <br />8. Q: What happens if there is a shortage of water on the Colorado River? <br /> <br />A: lID and SDCW A wiII share the shortage on a proportional basis. For example, if <br /> <br />the lID deliveries to SDCW A represents 6% of IID"s total Colorado River annual <br /> <br />supplies, water transferred to SDCW A would be reduced by 6%. <br /> <br />9. Q: What about environmental impacts of the transfer? <br /> <br />A: The environmental impacts are addressed in two parts: the results of conservation <br /> <br />in Imperial Valley and mitigation by SDCW A as a result of transporting the water. <br /> <br />Either of these environmental contingencies could void the contract. The contract places <br /> <br />a $15 milIion cap in the initial environmental evaluation and mitigation, including the <br /> <br />Salton Sea. The cap expands to $30 milIion, including the first $15 million, over the life <br /> <br />of the contract after the effective date of the contract. <br /> <br />1547 <br />