MUNCICIPAL & INDUSTRIAL WATER SUPPLY

becoming effective. Upon adoption the rate schedule will continue in full force and effect until modified or repealed by the Board. Such rates shall be developed with applicable laws and regulations, including the California Constitution. 30. Recharge Fee In any calendar year, if Contractor exceeds its Groundwater Pumping Quota plus any accumulated carry-over, Contractor shall be assessed a Recharge Fee for each acre foot of water (or portion thereof) in excess of said amount. The Recharge Fee schedule shall be calculated to reflect the cost to Zone 7 of replenishing the Main Basin in the amount of the excess extraction, including but not limited to the cost to purchase or develop the water, as well as the cost to construct, maintain, and operate the facilities needed to import, distribute, store, treat, and recharge said water into the Main Basin for the benefit of each M&I Contractor. The recharge fee shall be charged to Contractor in accordance with the rates included in the adopted rate schedule. Notwithstanding the foregoing, the Recharge Fee may be suspended by Zone 7 in the event that Zone 7 determines that other funding mechanisms are in place that adequately address the costs of replenishing groundwater in the Main Basin. 31. In-Lieu Treated Water Credit Zone 7 shall include an In-Lieu Treated Water Rate in the adopted rate schedule. In any calendar year in which the Contractor has participated in In-Lieu Treated Water deliveries as set forth in Section 27, Zone 7 shall determine the amount of delivered treated water that should be charged at the adopted In-Lieu Treated Water rate. Zone 7 shall reconcile deliveries and credit or make payment to the Contractor the difference between the treated water rate and the In-Lieu Treated Water rate on or before May 1 of the calendar year following such deliveries. Contractor acknowledges that any credits or payments received under this Section are received in-lieu of the Contractor's right to extract its Groundwater Pumping Quota, and Contractor agrees that its Groundwater Pumping Quota and any accumulated carry-over shall be reduced by an amount equivalent to the amount of In-Lieu Treated Water delivered by Zone 7 to Contractor for the year in which the delivery is made. 32. Payments and Invoicing Contractor shall be invoiced on a calendar month basis for treated water deliveries, temporary treated water service, and recharge fees based on the data obtained pursuant to Sections 10 and 26. Contractor shall pay promptly all charges invoiced by Zone 7 for charges incurred in the preceding month and to become due and payable within 30 days from date of invoice. 14