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<br /> 31 <br />2025 Amended and Restated WSA 21945395.2 <br />Proportional Water Use. All volumes of Participating Pumper Replacement Water delivered <br />shall not be construed to affect or increase the Individual Supply Guarantees of these <br />Wholesale Customers or to otherwise entitle them to any claim of water in excess of their <br />Individual Supply Guarantees. <br />D. Any operation and maintenance expenses incurred by the Participating Pumpers <br />and the SFPUC that are related to the operation of Project Facilities and Shared Facilities for <br />Project purposes shall be included as Regional pumping expenses under Section 5.05.B of this <br />Agreement and included as part of the Wholesale Revenue Requirement. For rate setting <br />purposes, estimated Project operation and maintenance expenses shall be used as set forth in <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: