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6.G. - Page 32 of 238 <br />programs, and (b) complies with future legal requirements imposed on the Regional Water <br />System by the federal government, the State, or any other third party as conditions for receiving <br />funding or water supply. <br />D. San Francisco and each Wholesale Customer agree that they will diligently apply <br />their best efforts to use both surface water and groundwater sources located within their <br />respective service areas and available recycled water to the maximum feasible extent, taking <br />into account the environmental impacts, the public health effects and the effects on supply <br />reliability of such use, as well as the cost of developing such sources. <br />3.07. Restrictions on Purchases of Water from Others; Minimum Annual Purchases <br />A. Each Wholesale Customer (except for Alameda County Water District and the <br />cities of Milpitas, Mountain View and Sunnyvale) agrees that it will not contract for, purchase or <br />receive, with or without compensation, directly or indirectly, from any person, corporation, <br />governmental agency or other entity, any water for delivery or use within its service area without <br />the prior written consent of San Francisco. <br />B. The prohibition in subsection A does not apply to: <br />1. recycled water; <br />2. water necessary on an emergency and temporary basis, provided that the <br />Wholesale Customer promptly gives San Francisco notice of the nature of the emergency, the <br />amount of water that has been or is to be purchased, and the expected duration of the <br />emergency; or <br />3. water in excess of a Wholesale Customer's Individual Supply Guarantee. <br />C. Alameda County Water District and the cities of Milpitas, Mountain View and <br />Sunnyvale may purchase water from sources other than San Francisco, provided that San <br />Francisco shall require that each purchase a minimum annual quantity of water from San <br />Francisco. These minimum quantities are set out in Attachment E and shall also be included in <br />the Individual Water Sales Contracts between San Francisco and each of these four Wholesale <br />Customers. The minimum purchase requirement in these Individual Water Sales Contracts will <br />be waived during a Drought or other period of water shortage if the water San Francisco makes <br />available to these Wholesale Customers is less than its minimum purchase quantity. <br />14 <br />15118728.1 <br />363 <br />