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(c) Temporary Use of Funds. In those instances described in Paragraph <br /> 4(b), above, precluding the allocation or expenditure of the net revenues from the <br /> uniform regional connection fee imposed pursuant to Paragraph 10(a) of the Basic <br /> Agreement attributable to City's sewerage service area, District temporarily may <br /> allocate or expend such amounts for District's Clean Water Revival Project in <br /> accordance with the provisions of Paragraph 6(c), below, pertaining to <br /> management by District of such funds so as to avoid adverse financial impact upon <br /> any treatment and /or disposal project proposed by City to which City assigns a <br /> higher priority. In those instances described in said Paragraph 4(b) precluding the <br /> allocation or expenditure of the net revenues from the uniform regional service fee <br /> imposed pursuant to Paragraph 10(b) of the Basic Agreement attributable to City's <br /> sewerage service area, District may nevertheless allocate or expend such amounts <br /> for the operation of District's Clean Water Revival Project unless and until City <br /> decides not to participate in said Project. <br /> (d) Recycling Project Limitations District's Clean Water Revival Project <br /> is currently permitted to operate only as a disposal project. Therefore, all provisions <br /> of Paragraph 4(b) which pertain to the allocation of Recycled Water Rights and <br /> Recycling credits (and corresponding Disposal Capacity Rights) are expressly <br /> subject to the issuance of permit(s) or other approval(s) for operation of District's <br /> Clean Water Revival Project as a Recycling project by RWQCB and DOHS and <br /> approval of such operation as a "project" in compliance with CEQA. <br /> (e) Environmental Considerations,. The parties acknowledge that District has <br /> prepared an engineer's report for submittal to DOHS regarding District's Clean <br /> Water Revival Project which includes a detailed section summarizing the options <br /> considered by District for the disposal of water and the injection or storage of <br /> demineralized water to be produced by District's Clean Water Revival Project and <br /> stating the reasons for selecting specific sites for the construction and operation of <br /> wells for groundwater injection relating to the Project. District shall consult with, and <br /> make presentations to, City's City Council or officers or employees of City, <br /> designated by City, concerning the contents and conclusions of the engineer's <br /> report regarding the well sites. <br /> The parties further acknowledge that, in February 1997, they entered into a <br /> Agmt -10b 10 <br /> 8/27/97 <br />