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6 <br />exclusive Groundwater Sustainability Agency for its boundaries, will provide <br />prompt notice to Contractor where it has reason to believe that any such <br />extraction does not meet this bar. <br />e) Where the Alternate Supply is recycled wastewater treated by a Zone 7 <br />M&I Contractor for reuse as permitted by the State Water Resources <br />Control Board and other agencies with jurisdiction. <br />In addition to the foregoing, Contractor may be excused from its obligation to purchase <br />water solely from Zone 7 or through exercise of its Groundwater Pumping Quota where <br />(1) the Board provides prior written approval for the Contractor to receive Alternate <br />Supply in lieu of Zone 7 deliveries; and (2) the Contractor has compensated Zone 7 for <br />its obligated fixed costs associated with the quantity of Zone 7-delivered water that the <br />Contractor intends to forgo. These fixed costs shall include but are not limited to water <br />facility improvements, water contract obligations, debt service, and other costs <br />ordinarily recovered through the sale of water to Contractor. Contractor written <br />requests to receive an Alternate Supply pursuant to this paragraph shall be promptly <br />considered by Zone 7 and approval shall not be unreasonably withheld. <br />Zone 7 needs to be protected from any obligation to supply water to projects or <br />customers which the Contractor has supplied from sources other than what has been <br />directly purchased from Zone 7. In addition to the protections provided in Section 43, <br />Contractor shall indemnify, save and hold harmless Zone 7 from any and all obligations, <br />liability, responsibility, costs, expenses, or fees associated in any way with any <br />Provided, however, that if Contractor is instructed by Zone 7 to acquire water from <br />5, and which has <br />been previously acquired from third parties as an Alternate Supply pursuant to this <br />Section 9, Zone 7 shall save and hold harmless Contractor from any and all obligations, <br />liability, responsibility, costs, expenses, or fees that may arise from such third parties as <br />a result of that change. <br />10. Measurement of Treated Water Deliveries <br />a) Zone 7 shall measure and record the volumes of water that Zone 7 delivers to <br />Contractor. In the event that a flow meter is inoperable, malfunctioning, or in <br />error (including any testing done under Sections 10(b) or 10(c)), such that water <br />delivery volumes are not accurately recorded or measured within 2%, Zone 7 <br />shall confer with the Contractor prior to making a reasonable estimation of water <br />deliveries to the Contractor during that period of inoperability, malfunction or <br />error, up to a maximum adjustment period of 6 months. <br />b) Zone 7 shall test turnout meters at least annually, consisting of verifying and <br />adjusting meters and associated instrumentation, using a method approved by <br />Zone 7 consistent with meter manufacturer instructions or with industry <br />Page 61 of 214