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entered or intends to enter into a contract with another party that <br /> conveys, leases, assigns, licenses, permits or otherwise transfers all <br /> of any part of the recycled water attributable to City's effluent, or (2) <br /> District derives any other benefit (economic or otherwise) from its use <br /> of City's effluent. If the parties are unable to agree (including the <br /> inability to agree as to whether District derives a benefit from City's <br /> effluent as provided in (2) above), Section 12 (Dispute Resolution) of <br /> the Basic Agreement shall apply. If District intends to convey, lease, <br /> assign, license, permit or otherwise transfer to another party all or any <br /> part of the recycled water attributable to City's effluent, City shall have <br /> the right of first refusal, at the price District has negotiated with the <br /> other party or at District's actual cost to process City's effluent, <br /> whichever is less; <br /> (e) to the extent City's effluent has not been committed or used <br /> as provided in (c) above, nothing provided herein is intended to <br /> prohibit District from disposing City effluent through District's Clean <br /> Water Revival Project if the actual cost to dispose of City's effluent is <br /> less expensive than the actual cost to dispose of City's effluent <br /> through LAVWMA facilities. "Actual cost" does not include any benefit <br /> derived from the use of the demineralized water from District's Clean <br /> Water Revival Project. <br /> (ii) If City chooses to participate in District's Clean Water Revival <br /> Project and participates in the expansion component of LAVWMA's <br /> Expansion Project, Disposal Capacity Rights and, if any, Recycling credits <br /> (and corresponding Disposal Capacity Rights) accruing from District's Clean <br /> Water Revival Project shall be allocated equally between District and City; <br /> and Recycled Water Rights, if any, shall be allocated annually to City and <br /> District in the same proportion as their respective ADWF influent flows bear <br /> to the total ADWF influent flow to District's Treatment Plant. <br /> (iii) If City chooses not to participate in the expansion component of <br /> LAVWMA's Expansion Project, but chooses to participate in District's Clean <br /> Water Revival Project, City shall be allocated sixty percent (60 and District <br /> Agmt -10b 8 <br /> 0/27/97 <br />