Water Deliveries. 3.1 The City shall supply the Facility, throughout the Term, by means of the Pipeline and subject only to Water Emergencies and Water Supply Curtailment Conditions, City Water at the Flow Rate. The Flow Rate for each day shall be the amount of City Water that MillerCoors requires, or elects to accept, for operation of the Facility.
3.2 MillerCoors shall have and maintain the right to produce water from the MillerCoors Xxxxx for use at the Facility (i) during the duration of any Water Emergency; (ii) during the duration of any Water Supply Curtailment Condition; (iii) at any time that water use requirements at the Facility (whether in its current configuration or as renovated or expanded) exceed the Flow Rate; and (iv) at such other times as the City and MillerCoors may agree, provided that, in the event that MillerCoors elects not to or otherwise is unable to produce water from the MillerCoors Xxxxx under such circumstances, the limitations on the City’s obligation to deliver City Water set forth in Section 9.5 shall not be affected.
3.3 At any time and from time to time following the first anniversary of the date of this Agreement, but not more frequently than once each calendar year during the Term of this Agreement, either Party may submit a written request to the other Party requesting a meeting to discuss the possibility of reaching an agreement regarding additional or revised operations of the MillerCoors Xxxxx for the extraction, delivery and use of water from said xxxxx. In the event such a written request is made, the Parties shall then engage in good faith negotiations regarding such a possible agreement for a period of 30 days from the date of the written request, unless said period is extended upon mutual consent of both Parties. The determination of each Party as to whether to enter into any agreement pursuant to this paragraph shall be and remain in such Party’s respective sole discretion.
Water Deliveries. Subject to the terms and conditions set forth herein, Xxxxxx hereby agrees to lease to Lessee certain volumes of the Water on the following terms and conditions:
Water Deliveries. The amounts, times, and rates of delivery of water to the Company during any Calendar Year shall be in accordance with operations as determined by the Agency.
(a) Upon initial operation of the Project, the first 1,000 acre-feet of Project Water delivered shall be designated as Operating Reserve and not available for the immediate use of the Company. The Project Allotment for the first Fiscal Year will be reduced by delivery to the Operating Reserve. If after delivery to the Operating Reserve, the remaining Fiscal Year is a partial Fiscal Year, the Project Allotment will be reduced pro rata.
(b) In each subsequent Fiscal Year, Project Water delivered up to the Project Allotment shall be delivered before and deliveries to reserves and immediately available for use by the Company.
(c) In a Fiscal Year, once the Project Allotment has been delivered, the District may deliver additional Project Water for injection and storage as the Drought Reserve or Operating Reserve, but not for immediate use by the Company. The District will designate the amounts to be allocated to the Drought Reserve or the Operating Reserve.
(d) Under certain conditions, the Monterey County Water Resources Agency may request additional irrigation water from Agency sources. When such a request is made, the District may make available to the Company Project Water from the Drought Reserve in order to satisfy the Project Allotment. In no instance shall the Agency reduce Project Water deliveries to make available additional irrigation water to the Monterey County Water Resources Agency from its sources in an amount exceeding the balance available in the Drought Reserve. Only the District, with Agency consent, shall determine how much of the Project Allotment is to be comprised of releases from the Drought Reserve in a Fiscal Year.
(e) During an interruption in Project operations, the District may make available to the Company Project Water from the Operating Reserve in order to satisfy the Project Allotment. Only the District, with Agency consent, shall determine how much of the Project Allotment is to be comprised of releases from the Operating Reserve in a Fiscal Year.
(f) In no event shall the Company withdraw more Project Water than has been delivered.
(g) Failure of the District to deliver to the Company the Project Allotment in a Fiscal Year shall be an event of default subject to remedies as described in Section 20.
Water Deliveries
