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<br />agrees that nothing in this Agreement is intended to affect such prior authorizations, which <br />remain in full force and effect according to their terms. Such authorizations shall be identified in <br />the Individual Water Sales Contracts. <br /> <br />3.04 Permanent Transfers of Individual Supply Guarantees <br />A. A Wholesale Customer that has an Individual Supply Guarantee may transfer a <br />portion of it to one or more other Wholesale Customers, as provided in this section. <br /> <br />B. Transfers of a portion of an Individual Supply Guarantee must be permanent. <br />The minimum quantity that may be transferred is 1/1 Oth of a MGD. <br /> <br />C. Transfers of portions of Individual Supply Guarantees are subject to approval by <br />the SFPUC. SFPUC review is limited to determining (1) whether a proposed transfer complies <br />with the Act, and (2) whether the affected facilities in the Regional Water System have sufficient. <br />capacity to accommodate delivery of the increased amount of water to the proposed transferee. <br /> <br />D. The participants in a proposed transfer shall provide notice to the SFPUC <br />specifying the amount of the Individual Supply Guarantee proposed to be transferred, the <br />proposed effective date of the transfer, which shall not be less than 60 days after the notice is <br />submitted to the SFPUC, and the Individual Supply Guarantees of both participants resulting <br />from the transfer. The SFPUC may require additional information reasonably necessary to <br />evaluate the operational impacts of the transfer. The SFPUC will not unreasonably withhold or <br />delay its approval; if the SFPUC does not act on the notice within 60 days, the transfer will be <br />deemed to have been approved. <br /> <br />E. Within 30 days after the transfer has become effective, both the transferor and <br />the transferee will provide notice to the SFPUC ~nd BAWSCA. By September 30 of each year <br />during the Term, the SFPUC and BAWSCA will prepare an updated Attachment C to reflect <br />transfers occurring during the immediately preceding fiscal year. <br /> <br />F. Amounts transferred will remain subject to pro rata reduction under the <br />circumstances described in Section 3.02. C and according to the formula set forth in <br />Attachment D. <br /> <br />3.05 Restrictions on Resale <br />Each Wholesale Customer agrees that it will not sell any water purchased from San <br />Francisco to a private party for resale by such private party to others in violation of the Act. <br /> <br />-12- <br /> <br />1840795.8 <br />