MUNCICIPAL & INDUSTRIAL WATER SUPPLY

practices. Results of this testing and adjustments (if any) made to the meter and associated instrumentation shall be provided promptly to Contractor. The Contractor shall have the right to be represented by a qualified observer during any instrumentation and/or meter tests and/or verification. c) Contractor may request additional testing of its turnout meters between Zone 7's regularly scheduled annual testing intervals at Contractor's expense. The testing shall be consistent with standard methods recommended by the meter manufacturer, or other methods consistent with industry practices, as agreed upon by the Contractor and Zone 7. In the event testing demonstrates an error exceeding 2%, the expenses of the test will be assumed by Zone 7. 11. Delivery Schedule of Municipal & Industrial Water Contractor shall submit a preliminary water delivery schedule annually on a form provided by Zone 7. This preliminary water delivery schedule will include: (1) an estimate of the Contractor's demand for treated water and groundwater in excess of its Groundwater Pumping Quota required by Contractor for the succeeding 5 calendar years, set out on a monthly basis; and (2) the anticipated Maximum Day Treated Water Demand from Zone 7 for each such year. Zone 7 shall review Contractor's preliminary water delivery schedule, and shall either approve the schedule or make such revisions as may, in the judgment of Zone 7, be necessary to make deliveries to Contractor. Zone 7 will use its best efforts to meet Contractor's water delivery requests. To the extent water is available to Zone 7, Zone 7 will approve each M&I Contractor's annual delivery schedule for an amount not less than the amount of water set forth in that Contractor's delivery schedule for the prior calendar year. Zone 7 shall identify the reason for any revisions or disapproval of Contractor's delivery request. Zone 7 shall only revise or disapprove Contractor's delivery request for the reasons set forth in Sections 7, 12, 13, and 14. 12. Operational Requirements The Zone 7 system is not designed to serve all M&I Contractors' peak demands simultaneously, and peak deliveries may be curtailed or unintentionally reduced from time to time in response to limitations in system capacity. Zone 7 may at its sole discretion elect to regulate flows, provided, however, that so long as water and Zone 7 system capacity are available, Zone 7 will endeavor to meet all reasonable demands for peak deliveries and will use reasonable diligence to provide a regular and uninterrupted supply of water from its turnout facilities. Zone 7 shall communicate its actions to regulate or reduce flows to the Contractors as soon as reasonably practicable. 7