Water Quantity A. Water Quantity Commitments Seller will agree to produce and deliver, and the Buyer will agree to take, 56,000 acre-feet per year of Product Water (the “Committed Amount”). The Committed Amount will be reduced by (a) the amount of Product Water purchased by other entities agreed to by the Parties, including without limitation the City of Huntington Beach under the Subject Proposed Term/Condition Huntington Beach Agreement and AES under any direct purchase agreement, and (b) on a year by year basis, any reductions in the quantity of Product Water produced by Seller and for other reasons as permitted under the Contract. The amount of Product Water that Buyer is required to purchase shall never be more than the amount of Product Water that Seller produces and delivers to Buyer; provided that except as otherwise provided in the Contract, Product Water that is not produced or delivered solely due to Buyer’s failure or refusal to take such Product Water will be treated as having been produced and delivered for all purposes under the Contract. For the quantity of Product Water produced and delivered under the Contract, the Buyer will pay a per-acre foot unit charge as set forth in Item 14. B. Payment for Available Water that is Not Taken Payment for Product Water the Buyer does not take will be based on the Delivery Schedule. Seller will make reasonable efforts to mitigate its costs by offering to sell Product Water to third parties during any period in which Buyer is unable to take Product Water. For water that is available but which Buyer does not take, and for which Xxxxxx is unable to deliver to a third party, Buyer will pay a price to be negotiated in the final Contract that covers all of Sellers fixed cost including an appropriate capital charge. C. Delivery Schedule The schedule for periodic deliveries of Product Water (daily, monthly, quarterly) will be mutually agreed to by the Parties prior to the Commercial Operation Date and thereafter on an annual basis. D. Operating Committee Seller, the Operating Contractor, and the Buyer will establish an Operating Committee to address daily flow changes and operations and other items to be set forth in the Contract. E. Water Ownership The Buyer will own all Product Water received and accepted at the Delivery Point.
Water Quantity A. Water Quantity Commitments Seller will agree to produce and deliver, and the Buyer will agree to take, 56,000 acre-feet per year of Product Water (the “Committed Amount”). The Committed Amount will be reduced by (a) the amount of Product Water purchased by other entities agreed to by the Parties, including without limitation the City of Huntington Beach under the Huntington Beach Agreement and AES under any direct purchase agreement, and (b) on a year by year basis, any reductions in the quantity of Product Water produced by Seller and for other reasons as permitted under the
