Authority Exclusions Clause Samples

Authority Exclusions. The Authority's obligation to first offer to purchase Conserved Water as Additional Available Water from the IID before acquiring water from a third party other than MWD does not apply to the following transactions ("Water Quality Transactions" and "Drought Transactions"): (i) Water Quality Transactions. A Water Quality Transaction must satisfy all the following criteria: (A) The Authority must take delivery of the Water Quality-transferred water at Lake Skinner; (B) The Authority must not exchange the Water Quality-transferred water for receipt of any other water between Lake Skinner and the Conveyance Path Terminus; (C) The total dissolved solids ("TDS") of the Water Quality-transferred water as measured at the Water Quality Terminus at the end of every Calendar Year quarter must be less than or equal to four hundred (400) parts per million ("ppm"); (D) The TDS of the Water Quality-transferred water at the Conveyance Path Terminus at the end of every Calendar Year quarter must be less than or equal to the TDS of the Conserved Water transferred by the IID to the Authority under this Agreement, as measured at Lake Havasu; (E) The annual quantity of Water Quality-transferred water received by the Authority as measured at the Conveyance Path Terminus, when aggregated with all other Water Quality-transferred water from Water Quality Transactions, does not exceed the following schedule: (1) Execution Date to Agreement Year 2 - twenty thousand (20,000) AFY (2) Agreement Year 2 - forty thousand (3) Agreement Year 3 - sixty thousand (4) Agreement Year 4 - eighty thousand (5) Agreement Year 5 - one hundred thousand (100,000) AFY (6) Agreement Year 6 to end of Initial Term - one hundred thousand (100,000) AFY; and (F) The wheeling rate to be paid by the Authority must be no more than would be calculated utilizing the methodology of the Base Wheeling Rate until either the satisfaction of the wheeling conditions contained in §§ 7.1(e) and 8.1(e) of the Agreement or two (2) years from the Execution Date, whichever is earlier; and thereafter no more than would be calculated utilizing any lawful wheeling rate methodology.