The Lease Capacity Pool Sample Clauses

The Lease Capacity Pool. Agencies may commit a specific amount of capacity right for lease. The initial commitment to the pool shall be for a five‐year term from the effective date of this Agreement. An Agency may renew or extend its commitment at any time. If an Agency intends not to renew or extend a commitment of capacity to the Lease Pool, it will provide SAWPA notice to that effect not less than 90 days prior to the expiration of the then‐current term of the commitment. SAWPA will provide notification to the Agency of the forthcoming expiration date prior to the start of the 90 day period. Upon completion of the 90‐day period and expiration of the commitment, control of the capacity will revert back to the Agency. The pooled capacity will be marketed and made available to new dischargers or existing dischargers needing additional capacity. A lease agreement between SAWPA and the lessee/discharger must be approved by the SAWPA Commission to establish the terms and conditions of the capacity lease. Lessees will be charged for the capacity lease per Section 3.b.ii. below. All lease revenues will be pooled and distributed annually upon completion of the Fiscal Year, to capacity pool contributors based on the proportional amount contributed. The Parties expect that, if demand for leased capacity is strong, the pool may be expanded in increments. SAWPA will notify the Parties when an additional contribution to the capacity pool is needed. It is the desire of the Parties to contribute to the capacity pool equally thereby lease revenues will be distributed equally among the Parties. If an Agency elects not to contribute equally to the capacity pool their proportionate share of lease revenues will be proportionate to their pool share. It is anticipated that up to 4 MGD may be made available to customers from the Lease Pool.