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<br />in Section 7.04. The Wholesale Customers may dispute the SFPUC's resolution of expense <br />allocations through the arbitration provisions in Section 8.01 of this Agreement. <br /> <br />E. The SFPUC may direct the Participating Pumpers to recover water from the <br />SFPUC basin storage account for any type of shortage referenced in Section 3.11. Water <br />recovered from the SFPUC basin storage account using Regional Program wells may be used <br />for (1) the benefit of all Regional Water System customers; (2) Retail Customers; or (3) one or <br />more of the Participating Pumpers. The Wholesale Revenue Requirement shall only include <br />operation and maintenance expenses incurred due to the oper~tion of Program wells for <br />Regional benefits. <br /> <br />F. All water recovered from the SFPUC basin storage account by the Participating <br />Pumpers and by the SFPUC for delivery to Retail Customers during Shortages caused by <br />Drought shall be used to free up a comparable volume of surface water from the Regional <br />Water System for allocation in accordance with the Tier 1 Shortage Plan. <br /> <br />G. If the Program is terminated for any reason, including breach of the Program <br />agreement by the Participating Pumpers or SFPUC, or due to regulatory action or legal action, <br />then <br /> <br />1. Any water remaining SFPUC Regional storage account shall be used for <br />the benefit of all customers of the Regional Water System; <br /> <br />2. Outstanding eligible operation and maintenance expenses, including <br />costs incurred during recovery of remaining stored water, will be allocated as provided in this <br />section; and <br /> <br />3. The Wholesale Customers will be credited with their share of proceeds <br />from disposition of Program facilities or reimbursed their share of such capital costs for any <br />Program ~acilities which are retained by the SFPUC for Direct Retail benefit and not used for the <br />benefit of the Wholesale Customers, on the basis of (a) original cost less depreciation and <br />outstanding related Indebtedness or (b) original cost less accumulated depreciation for revenue <br />funded Regional Program facilities. <br /> <br />-26- <br /> <br />1840795.8 <br />