Interconnection Construction Agreement Sample Clauses

Interconnection Construction Agreement. Promptly after delivery of the White Rock Delivery Notice, the Parties will begin and diligently pursue good faith negotiations over an agreement addressing the interconnection of the pipeline facilities of the El Dorado Parties to SMUD’s existing takeout on the White Rock Penstock, the agreement to cover timing, construction, and equipment necessary for such purpose. Such agreement will be based on, and incorporate, the following principles: (1) SMUD will design, construct, own, maintain and control that portion of the interconnection extending from the existing White Rock Penstock tap to a point immediately downstream of a shutoff valve to enable SMUD to shutoff the flow of water in an emergency or otherwise as may be necessary to protect the White Rock Penstock and other SMUD facilities; (2) The El Dorado Parties will design, construct, own, maintain and control interconnection facilities downstream of the SMUD shutoff valve, which facilities will include a valve to control the rate of flow into the El Dorado Parties’ system and to shut off such flow in an emergency or otherwise as may be necessary to protect the El Dorado Parties’ system; (3) SMUD will have design approval of the interconnection facilities to be constructed by the El Dorado Parties for purposes of determining, in its reasonable discretion, that such facilities do not adversely affect the safety, operation, or maintenance of the White Rock Penstock as it then exists; and (4) SMUD and the El Dorado Parties will, collectively, each bear its own costs associated with the construction of its respective portion of the interconnection facilities.