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6.G. - Page 44 of 238 <br />Section 6.01 of this Agreement. Operation and maintenance expenses associated with the <br />Participating Pumpers' Existing Facilities that do not provide Regional benefits shall not be <br />included in the Wholesale Revenue Requirement. On a case-by-case basis, the SFPUC may <br />include operation and maintenance expenses associated operation of the Participating <br />Pumpers' Existing Facilities in the Wholesale Revenue Requirement provided that such <br />expenses (1) are solely attributable to Project operations for a Regional benefit and (2) are not <br />caused by the Participating Pumper's failure to operate and maintain its existing wells in a <br />reasonable and prudent manner consistent with water utility industry standards. The SFPUC <br />shall provide the Wholesale Customers with copies of Project Operation and Maintenance <br />Expenses documentation provided by the Participating Pumpers under Section 9.2 of the <br />Project Operating Agreement. <br />E. The Project Mitigation, Monitoring and Reporting Program ("MMRP") adopted by <br />the SFPUC included mitigation measure HY-6 to prevent well interference impacts to the <br />Irrigation Well Owners. In mitigation measure HY-6, the SFPUC agreed to provide standby <br />supplies of Irrigation Well Owner Replacement Water from the Regional Water System, to alter <br />Project operations, and implement other actions (e.g., well replacement) to avoid well <br />interference impacts that require the consent of the Irrigation Well Owners. The SFPUC's <br />Project mitigation and other obligations to the Irrigation Well Owners are memorialized in <br />substantially identical "Groundwater Well Monitoring and Mitigation Agreements" with one or <br />more of the Irrigation Well Owners. For purposes of this Agreement, water supplies, and the <br />capital costs and operations and maintenance expenses associated with providing Irrigation <br />Well Owner Replacement Water and implementing other mitigation actions identified in the <br />Project MMRP, shall be allocated as follows: <br />Irrigation Well Owner Replacement Water shall be limited to a cumulative <br />maximum of 1.76 mgd and shall be delivered only in volumes necessary for mitigating well <br />interference impacts as provided in the Project MMRP. The supply of Irrigation Well Owner <br />Replacement Water by the SFPUC shall not be considered a new water supply commitment to <br />Retail Customers or Wholesale Customers under Section 3.13 of this Agreement. The annual <br />volume of Irrigation Well Owner Replacement Water supplied shall be metered and allocated as <br />water from the Regional Water System during shortages between Retail Customers and <br />Wholesale Customers in proportion to and consistent with the provisions of the Shortage <br />Allocation Plan. All revenue received from Irrigation Well Owners for metered deliveries of <br />Irrigation Well Owner Replacement Water shall be considered revenue related to the sale of <br />N9 <br />15118728.1 <br />375 <br />