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<br />8.06 SFPUC Rules and ReQulations <br />The sale and delivery of all water under this Agreement shall be subject to such of the <br />"Rules and Regulations Governing Water Service to Customers" of the Water Enterprise <br />adopted by the Commission, as those rules and regulations may be amended from time to time, <br />as are (1) applicable to the sale and delivery of water to the Wholesale Customers, (2) <br />reasonable, and (3) not inconsistent with either this Agreement or with an Individual Water <br />Sales Contract. The SFPUC will give the Wholesale Customers notice of any proposal to <br />amend the Rules and Regulations in a manner that would affect the Wholesale Customers. The <br />notice will be delivered at least thirty days in advance of the date on which the proposal is to be <br />considered by the Commission and will be accompanied by the text of the proposed <br />amendment. <br /> <br />8.07 Reservations of, and Limitations on, Claims <br /> <br />A. General Reservation of Raker Act Contentions. The 1984 Agreement <br />resolved a civil action brought against San Francisco by certain of the Wholesale Customers. <br />Plaintiffs in that action contended that they, and other Wholesale Customers that are <br />municipalities or special districts, were "co-grantees" within the meaning of Section 8 of the Act <br />and were entitled to certain rights, benefits and privileges by virtue of that status. San Francisco <br />disputed those claims. <br />Nothing in this Agreement, or in the Individual Water Sales Contracts, shall be construed <br />or interpreted in any way.to affect the ultimate resolution of the controversy between the parties <br />concerning whether any of the Wholesale Customers are "co-grantees" under the Act and, if so, <br />what rights, benefits and privileges accrue to them by reason of that claimed status.. <br /> <br />B. Claims Reserved but .not Assertable DurinQ Term or Portions Thereof. The <br />following claims, which San Francisco disputes, are reserved but may not be asserted during <br />the Term (or portions thereof, as indicated): <br />1. The Wholesale Customers' claim that the Act entitles them to water at <br /> <br />cost. <br /> <br />2. The Wholesale Customers' claim that San Francisco is obligated under <br />the Act or state law to supply them with additfonal water in excess of the Supply Assurance. <br />This claim may not be asserted unless and until San Francisco decides not to meet projected <br /> <br />-77- <br /> <br />1840795.8 <br />