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<br /> 33 <br />2025 Amended and Restated WSA 21945395.2 <br />Owners concerning expense allocations. Project expense documentation, including <br />documentation of negotiation and settlement of disputed costs, will be available for review <br />during the Compliance Audit described in Section 7.04 of this Agreement. The Wholesale <br />Customers may dispute the SFPUC’s resolution of expense allocations through the arbitration <br />provisions in Section 8.01 of this Agreement. <br />G. The SFPUC may direct the Participating Pumpers to recover water from the <br />SFPUC Storage Account for any type of shortage referenced in Section 3.11 of this Agreement. <br />Water recovered from the SFPUC Storage Account using Project Facilities and Shared Facilities <br />may be used for (1) the benefit of all Regional Water System customers; (2) Retail Customers; <br />or (3) one or more of the Participating Pumpers. The Wholesale Revenue Requirement shall <br />only include operation and maintenance expenses incurred due to the operation of Project <br />Facilities and Shared Facilities for Regional benefits, including expenses incurred due to <br />compliance with mitigation measures in the Project MMRP. <br />H. All water recovered during shortages caused by drought from the SFPUC <br />Storage Account for Regional benefit, by the Participating Pumpers and by the SFPUC for <br />delivery to Retail and Wholesale Customers, shall be used to free up a comparable volume of <br />surface water from the Regional Water System for allocation in accordance with the Tier 1 <br />Shortage Plan. <br />I. If the Project is terminated for any reason, including breach of the Project <br />Operating Agreement by one or more of the Participating Pumpers or the SFPUC, a force <br />majeure event as specifically defined by the Project Operating Agreement, or due to regulatory <br />action or legal action, then: <br />1. Any water remaining in the SFPUC Storage Account shall be used for the <br />benefit of all customers of the Regional Water System; <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 3.17 of this Agreement; and <br />3. If Project Facilities are no longer capable of being used for a Regional <br />benefit, the Wholesale Customers will be credited with their share of proceeds from disposition <br />of Project Facilities or reimbursed their share of such capital costs for any Project Facilities <br />which are retained by the SFPUC for Direct Retail benefit and not used for the benefit of the