MUNCICIPAL & INDUSTRIAL WATER SUPPLY

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