a. Engineer-Manager: The District's Distribution System is under the exclusive management and control of the Engineer-Manager, who is the person appointed by the Board of Directors of the District to manage the affairs of the District pursuant to its direction.  No other person except the Engineer-Manager or his designee shall operate any of the facilities of the District's Distribution System.

b. District Employees:  The Engineer-Manager shall supervise the activities of all District employees in connection with operation and maintenance of the District's Distribution System and all other activities of the District.  The authority of the employees of the District shall be designated by the Engineer-Manager and any controversy between a Water User and a District employee that cannot be settled directly shall be appealed to the Engineer-Manager.  In the event the Engineer-Manager is unable to reach a satisfactory decision, an appeal may be made to the Board of Directors.  The decision of the Board of Directors shall be final and conclusive.

Except in cases of emergency or where otherwise considered impracticable by the Engineer-Manager, the landowner, lessee or person in possession shall first be contacted before entering landowner's property other than upon District easements.

3. WATER SERVICE

a. Surface Water Service Area:  Contract Water Service will be provided only to lands in the District's Surface Water Service, which service area has been amended by the Board of Directors from time to time. The lands included in said Surface Water Service Area at any given time are those certain parcels of real property described in the Exhibits A of those certain water service contracts which have been executed by the District and landowners and are on file in the District office.  Lands within the Surface Water Service Area are shown on a map on file at the District office designated as "Surface Water Service Area," as amended from time to time.  In case of a conflict between the lands described in Exhibit "A" to said certain water service contracts and said map, the description contained in said Exhibits shall govern.  Pursuant to provisions of Division 14 of the California Water Code, an Original Project Assessment in the amount of the estimated costs of the District's project for providing water service to the affected lands was levied upon the lands in the Surface Water Service Area as contemplated by Resolution No. 349 and upon certain other benefited lands in the District and said assessment became final on October 18, 1968.

b. Additions of lands to Surface Water Service Area:  Lands may be added to the Surface Water Service Area pursuant to an application filed with the Board therefor by the owner or owners of said lands, only if: (1) such addition is determined by the Board to be feasible and in the best interests of the District and in accordance with the criteria established in Board Resolution No. 349; (2) the owner or owners of said lands execute a contract with the District for water service for said lands in the form established by Board Resolution No. 69-60; (3) the owner or owners of said lands pay a charge equal to the sum of all charges which would have been paid to the District if said lands had been included within the originally adopted Surface Water Service Area unless said charges have been paid by another parcel of land; and (4) the owner or owners of said lands agree in writing to pay any special charges at such time as calls might be made as hereinafter described, which special charges would be in lieu of calls on the Original Project Assessment on said lands, which charge will be the same as the amount which would be due if the lands subject hereto had received an Original Project Assessment by the same procedures whereby the Assessment was levied on all lands in the District's Adopted Surface Water Service Area and that, at such time as the project may be reassessed, the lands would receive the same treatment as all lands within the District's Adopted Surface Water Service Area.

Lands may also be added to the Surface Water Service Area by amendment of a Water Service Contract so as to increase the area described in Exhibit "A" therein provided the Contract Amount of Water is not increased and provided further that it is determined by the Board that such additions are:  (1) in the best interest of the District, and (2) are not detrimental to other District Water Users.  Any such additions shall be pursuant to an application filed with the Board of Directors by the owner or owners of said lands and each such application will be considered on a case-by-case basis.  Such applications will not be approved unless it is determined that the proposed change does not unduly reduce the effective return flow to the ground water basin and unless it is demonstrated that the final amount of water will be sufficient for the type of crop involved.  In the event the approval of such an application, the original acreage shall be the acreage used in determining the allocation of water pursuant to Section 9 of these Rules and Regulations.

c. Exclusion of Lands From the Surface Water Service Area:  Lands may be excluded from the Surface Water Service Area pursuant to an application filed with the Board therefor only if:  (1) the Board of Directors determines that such exclusion will not be detrimental to the best interests of the District, and (2) the obligations of the contract for water service, if any, binding said lands are assumed by other lands within the District which are added to the Surface Water Service Area as provided in Section 3(b) above.  Assumption of said obligations must be under terms and conditions which will result in no financial loss to the District.

d. Unscheduled Water Service:  Unscheduled water is water made available to a contract Water User in any year in excess of the Contract Amount, delivered through Water User's turnout, as provided in Section 2(f) of the Contract.  Such water may be made available at the request of Water User and is delivered on an interruptible and non-dependable basis.  Such service will be made available if the Board determines that it is in the best interest of the District and will only be made if it does not interfere with the obligations of the District under its Water Service Contracts.

e. Temporary or In-Lieu Water Service: Temporary or In-Lieu Water Service means the delivery of water on an interruptible and non-dependable basis for agricultural use to lands outside the Surface Water Service Area or to lands within that portion of the Surface Water Service Area where District facilities to serve said lands have not been constructed, under conditions established by the Board.  Such temporary or In-Lieu service will be made available if the Board determines that it is in the best interest of the District, will be for a limited period of time and will only be made if it does not interfere with the obligations of the District under its Water Service Contracts.

f. Industrial Water Service:  Industrial Water Service means the delivery of water on an interruptible and non-dependable basis for industrial use, including construction work, and shall be made under conditions established by the Board.  Industrial water service may be made pursuant to provisions for temporary water deliveries or pursuant to long-term contracts for Industrial Water Service. Such industrial water is not a potable water supply and shall not be used for domestic purposes or for human consumption unless specifically authorized by all agencies responsible for administering the Safe Drinking Water Act(s). It will be made available upon such terms as the Board determines is in the best interest of the District, will be for a limited period of time and will only be made if it does not interfere with the obligations of the District under its Water Service Contracts.

Subject to the foregoing, the District may also enter into long-term contracts to provide Industrial Water Service and/or to reserve system capacity which contracts shall be substantially uniform, which contractors are hereinafter referred to as "Industrial Water Users." Water Service pursuant to said contracts shall be subject to water being made available from the District pool established pursuant to Section 10 hereof. Upon finding that sufficient capacity exists within the District distribution system, the District may by contract reserve a portion of such capacity for the conveyance of water for industrial use, whether from supplies available to the District or supplies made available to the Industrial Water User.

g. Supplemental Water: Supplemental water means the water supplies acquired in addition to the water supply available under the Agency contract and includes district wells, Banking programs and water purchases. Supplemental water will be allocated pursuant to these Rules and Regulations up to the Contract Amount of Water in Water Users Water Service Contract. The quantities of Supplemental Water allocated to Water User shall only be available after Water User has submitted a signed order in a form provided by the District for such purposes in which the Water User agrees to the terms and conditions of delivery and payment for Supplemental Water.

a. Annual Water Deliveries:  Unless formally advised by Water User to the contrary, it will be assumed that Water User will desire delivery of his full contract amount of water each year.  The District will make every effort to provide said contract amount of water on a demand basis as requested by Water User but does not assume any obligation if it is unable to do so.  It should be recognized that the District's delivery capability is limited in the month or months of maximum demand by the capacity of the District's distribution facilities and such limitations must be considered in meeting Water User's request.

If Water User wishes to dispose of a portion of his contract amount of water, the District will attempt to do so in accordance with Article 5(k) of the Water Service Contract.  If the allocation of the Contract Amount of Water in any year includes Supplemental Water and the District has not yet acquired or produced the Supplemental Water, it shall be the first water returned to the District for disposal. To the extent Supplemental Water has not already been acquired or produced the Water User shall receive full credit for the cost of the Supplemental Water so returned. To the extent the Supplemental Water has already been acquired or produced said Supplemental Water shall be pooled in accordance with paragraph 9 hereof. If Water User wishes more than his contract amount of water, the District will attempt to meet Water User's request to the extent water can be made available.

The District will notify Water User as to the availability of water and the ability of the District to meet Water User's request from time to time as information is available to the District to do so.

b. Daily Water Orders:  Orders to turn on or to turn off water, or orders to increase or decrease the rate of water delivery, shall be made at the District office through telephone communication, facsimile transmission, e-mail or personal communication from Water User or his designee as provided in these Rules and Regulations.  Water orders shall be placed before 8:00 AM for water service for the following day, and water orders placed after 8:00 AM will be for water service the second succeeding day.  In the event of an emergency, or when a change is in the delivery point within the service area of the same lateral, or when it may otherwise be practical to do so, changes in deliveries may be approved on lesser notice but the District assumes no obligation to do so.  Although the District will make every reasonable effort to comply with the requested water orders, there may be times when, because of system capacity limitations, or limitations in the amount of water available from the Agency, such compliance may not be possible, and the District assumes no obligation therefor.  Orders shall normally be made on the basis of continuous use of water during the 24-hour period commencing between 7:00 AM and 9:00 AM. Provided however, that the Board may establish special conditions for short-run deliveries and/or for deliveries at lower flow rates than for normal irrigation practices.

c. Authorization of Operating Agent:  In the case of leased land, or for any other reason, Water User may execute and file with the District an "Authorization of Operating Agent" form.  This form will authorize the operating agent or his designee to place water orders and shall constitute the consent of the Water User to all charges and the collection thereof, in any manner authorized under the Water Service Contract and by Sections 47181 to 47185 inclusive of the California Water Code.  Said form may authorize operating agent to receive copies of District billings arising from the affected Water Service Contract.  This authorization shall remain in effect until the date of termination stated thereon, or until superseded, or until revoked in writing by Water User or designee.

d. Appointment of Agent:  Where the Water User consists of more than one individual, except husband and wife living at the same address, or when Water User is an entity, e.g., a corporation, state, county or other public agency, Water User shall appoint an agent for the purpose of performing any and all acts to be done by Water User as defined in the Water Service Contract, and for receiving all notices from the District and billings for charges incurred by reason thereof.  The form of the appointment shall be prepared by the District.  The appointment of such an agent will in no way release Water User or his lands from any obligation under the Water Service Contract.

e. Authority of Representative::  Any person acting in any representative capacity as Water User shall furnish evidence of his authority to so act and bind Water User to the satisfaction of the District.  Such representatives shall include a guardian, conservator, administrator, executor, trustee, partner including limited partnership, attorney-in-fact, operator of lands affected by a master operating agreement, and the like.

f. Interruptions in Service:  Attention is directed to Section 3(h) of the Water Service Contracts which provides as follows:  "District may temporarily discontinue or reduce the amount of water to be furnished to Water User as herein provided, for the purpose of investigation, inspection, maintenance, repair or replacement, as may be reasonably necessary, of any of the Project facilities for the furnishing of water to Water User, or of the facilities of the State Water Project, but so far as feasible, District will give Water User due notice in advance of such temporary discontinuance or reduction, except in case of emergency, in which case no notice need be given.  In no event shall any liability accrue against District or any of its officers, agents or employees, for any damage, direct or indirect, arising from such temporary discontinuance or reduction of water deliveries."  In case of emergency shut-off by the District an effort will be made to notify Water User as soon as possible.

g. Emergency Turnoffs by Water User:  Water User may in an emergency, including but not limited to Acts of God, turn off the supply of water at Water User's turnout.  If Water User effects such emergency turnoff he must notify the District office immediately by telephone or in person.  Water User and anyone affecting such an emergency turnoff does thereby agree to assume the defense of an hold harmless the District and its officers, agents and employees from any and all loss, damage, liability, claims or causes of action of every nature whatsoever, for damage to or destruction of property including District's property, or for injury to or death of persons, in any manner, arising out of or incidental to such emergency turnoff.

h. Use of Other Water Supplies:  Water User may use water furnished by District concurrently with water from other sources, provided that Water User can demonstrate to the satisfaction of the Engineer-Manager or his designee that project water is not being used on land other than that for which it is intended, as set forth in the Water Service Contracts and provided in these Rules and Regulations.

i. Waste of Water:  Water delivery may be discontinued by the District for any Water User found to be wasting water either willfully, carelessly, or on account of defective or inadequate ditches or pipelines, or inadequate tailwater facilities, or inadequately prepared land, or improper management, and said water delivery will not be resumed until such conditions are corrected.

j. Farm Turnouts:  Except as hereinafter provided for temporary deliveries of water and as provided in Sections 3(c) and 3(d) of the Water Service Contracts, all deliveries will be made only through District owned and operated turnouts.

k. Connections:  All connections to District's system shall be made in a manner so as to prevent damage from occurring to District's system resulting from operation of Water User's system and so as to prevent water from Water User's system from entering District's system.  Plans for the connection of Water User's system to District's system shall be submitted to the Engineer-Manager or his designee for approval, and no such connection will be permitted until such approval has been given.

l. Combined Turnouts:  In accordance with District's design criteria, water service will be provided to parcels less than twenty acres in size within the Surface Water Service Area only in conjunction with service to an adjacent larger parcel or several adjacent smaller parcels where the total combined area is twenty acres or more.  Such service will be made through a single turnout designated a "Combined Turnout."  Water will be furnished through such a Combined Turnout to a group of Water Users only upon condition that said group of Water Users first files with District an agreement in a form approved by the District, executed by each and every Water User in said group, and providing, among other things, the following:

In the event a parcel served by a single turnout is conveyed to two or more different parties, and each of the parcels is larger than 20 acres, the new owner(s) of the parcel(s) upon which the turnout is not located shall pay for the cost of constructing a new turnout, and any pipeline necessary to serve such turnout, and shall provide to the District a permanent easement in a form acceptable to the District to accommodate such new turnout and pipeline, unless the Board of Directors approves some other arrangement to serve said parcel.

m. Temporary Water Service Deliveries:  As a condition of temporary water service, the owner of lands to be served shall have executed an agreement establishing a convenant running with the land, in a form provided by the District, wherein the landowner expressly acknowledges that the affected lands have no right to firm water service from the District.  Delivery of temporary water service to lands for which such an agreement has been properly executed and recorded will be made in such a manner as may be approved by the Engineer-Manager or his designee.

n. Industrial Water Service Deliveries: For Industrial Water Users with long-term contracts, the District will attempt to provide the full contract amount of water each year from water supplies excess to the needs of the Surface Water Service Area from the District pool established pursuant to Section 10 hereof. To the extent such excess water supplies are not available the District shall be under no obligation to supply water for Industrial Water Service users. However, at such times water is not available from the pool, the District will make District system capacity reserved under the terms of the long-term Industrial Water Service Contract to wheel water supplied to Industrial Water Users from other sources and conveyed to District turnouts from the California Aqueduct. The District will also make its unused California Aqueduct capacity available for conveyance of water supplied by the District or by Industrial Water User under the terms of the long-term Industrial Water Service Contract to the extent such capacity is not being used for other District water deliveries. However, at times when unused California Aqueduct capacity is not available from the District, the Industrial Water User shall be responsible for the delivery of water from the California Aqueduct into District facilities.

In the event an Industrial Water User wants to receive more or less than the quantity of water specified by the contract, it shall notify the District in writing of the difference by January 1, of the year of delivery.

If Industrial Water User orders less than the Contract Amount of Water the District will reserve a correspondingly lower quantity of excess pool water for Industrial Water User for that year. If Industrial Water User orders more than the Contract Amount of Water the District will attempt to meet Industrial Water User's additional request to the extent water can be made available.

The District will notify Industrial Water User as to the availability of water and the ability of the District to meet Industrial Water User's request from time to time as information is available to the District. From January 1 through May 31 of the year of delivery Water Users request for water will be provided from the monthly pools to the extent of availability. If the District is unable to provide for the balance of Industrial Water Users annual request on or before May 31 of the year of delivery Industrial Water Users may secure water from alternate sources for the balance of the year and will not be required to purchase water from subsequent pools.

Absent a long-term contract, delivery of Industrial water will be made in such a manner as may be approved by the Engineer-Manager or his designee.

o. Farming Unit Operation:  Water User may assign all or part of his water entitlement through designated turnouts to a Farming Unit Operation. A Farming Unit Operation is a grouping of two or more parcels of land which is under the ownership or control (by lease or otherwise) of a single Water User which may include Contract and Non-Contract land. Such action authorizes the Farming Unit Operator or his designee to file water schedules, and order water and authorizes District to deliver said water through any of the several turnouts which have been designated by all Water Users similarly assigning water to said Farming Unit Operation. Such assignment shall be on appropriate forms provided by the District and shall remain in effect until the date of termination stated therein, or until superseded, or revoked in writing by Water User or Farming Unit Operator. The Farming Unit Operation may include contract and non-contract lands. However, if non-contract lands are included, the owner of the non-contract lands shall have executed an agreement establishing a covenant running with the land, in a form provided by the District, wherein the landowner expressly acknowledges that the non-contract lands have no right to firm water service from the District. In addition, the owner of the contract lands in the Farming Unit Operation shall execute annual agreements by May 1 or a subsequent date established by the Board establishing the Farming Unit Operation in a form provided by the District, agreeing to the lower priority for purchase of unscheduled water as set forth at 4.p.(2) of the Rules and Regulations, and acknowledging that allocation of water and/or system capacity will be based only on the area of contract land. Water delivered to non-contract land prior to the completion of Farming Unit Operation Agreements shall be made pursuant to conditions for Temporary Water Service.

p. Priority of Requests:  In the event the District is not able to meet all request for water, and without detracting from the provisions of Section 3(b) of the Water Service Contracts, priority of requests shall be considered on the following basis:

(1) Contract Water Service for the Contract Amount of Water in the Agricultural Water Service Contract of Water User, for use upon contract lands and lands within the Water Users Farming Unit Operation, shall receive the first priority.

(2) Unscheduled Water for the amount of unscheduled water requested by a Water User with the priority of such requests in the order as follows:

(3) Industrial Water Service under long-term contracts for the Contract Amount of Water requested in the annual delivery schedule submitted by an Industrial Water User.

(4) Temporary water service for the amount of water requested by temporary Water Users, including temporary industrial water service.

(5) Temporary water service for areas annexed after October 9, 1975, other than where the annexation was coupled with a detachment of an equal number of acres for the amount of water requested by the landowner in said area.

The above priorities are applicable to the allocation of available water at any point in time when the demand exceeds the available water supply. The water supply once allocated in accordance with the above priorities shall remain so allocated notwithstanding any subsequent increase in demand of a higher priority.

q. Supplemental Water: Supplemental Water allocated to Water Users as part of the Contract Amount of Water may be delivered by Water User through Water Users' turnout(s) pursuant to water orders submitted by water user. Provided, however, that the Board may establish special conditions which limit the quantities of Supplemental Water available to Water User on a monthly or seasonal basis.

a. Contract Water Service:  Under conditions of Contract Water Service, Water User shall pay the Water Availability Charge and Water Use Charge as provided in the Water Service Contract.  On or before December 1 of each year, District will notify Water User in writing of the estimated total amount of these charges for the following year, and said total amount shall be paid by Water User in eight equal installments, said installments to become due and payable on the tenth day of the months of February through September.  Provided however, the Board of Directors may elect to delay and or consolidate the payment schedule if information for computing rates is not timely available. On or before July 1 of each year following the first year of Contract Water Service, District will mail to Water User a final accounting of water charges for the previous year.  District will include with said final accounting either (1) a statement of credit owing to Water User for overpayment, or (2) a statement of Water User's additional payment obligation which shall be due and payable on August 1.  Any credit owing to the Water User for overpayment shall first be applied to cure any delinquency outstanding and then may be deducted from the Water User's next installment of Water User's payment obligation to the District.  In the event such credit exceeds the amount of the next installment, then upon written request of Water User, the excess amount may be remitted to Water User.  In the event of a change of ownership, the Board of Directors, upon written request by the current Water User, may authorize that the amount of such credit and any refund if applicable be remitted to the immediately previous Water User; otherwise, the credit/refund shall apply to the current Water User. If the final accounting adjustment reveals that an additional payment is due, that obligation shall be assessed against the then current Water User.

b. Unscheduled Water Service:  Payments for unscheduled water service shall be made at the rate or rates established therefor by the Board.  If the request for unscheduled water service has been made before the Statement of Estimated Annual charges has been completed, the charges for said service will be included in said Statement of Estimated Charges for the year.  If the request is made subsequent thereto, payments shall be made monthly.  Advance payment or establishment of credit may be required.

c. Temporary or In-Lieu Water Service:  Under conditions of temporary or in-lieu water service, payment shall be made each month at the rate or rates and under conditions established by the Board of Directors for such temporary or in-lieu water service.  Advance payment or the establishment of credit by the Water User may be required.

d. Industrial Water Service:  (i) Payment for temporary Industrial Water Service shall be made at the rate or rates and under conditions established by the Board of Directors for such service. Advance payment or the establishment of credit may be required. (ii) In such cases where Industrial Water Service is provided under a water service contract entered pursuant to Section 3(f) hereof in which capacity is made available, then the contract for Industrial Water Service shall provide, in addition to other customary terms, that the water user annually pay a wheeling fee based on the Contract Amount of Water as provided in the Water Service Contract. In years and at times in which Industrial Water is furnished by the District, Industrial Water User shall also pay the Fixed Obligation (F.O.) component of the Water Availability Charge (WAC) and the Water Use Charge (WUC) for water ordered and delivered as provided in the Industrial Water Service contract. Payment for water furnished in excess of the Contract Amount of Water shall be at rates for Temporary Industrial Water Service. In those years and at times in which Industrial Water is not furnished by District the Industrial Water User shall pay only the wheeling fee for water service. The contract may provide that should the F.O. and WUC exceed an indexed water cost that the Industrial Water User may secure its own water supply and the District deliver same upon paying the wheeling fee. Such wheeling fee shall, commencing in 2000, be the higher of $100 per acre-foot of Contract Amount of Water each year of the long-term obligation to make capacity available, or $50 per day of water delivery, adjusted annually by the Consumer Price Index, All Urban Consumers, All Items Index, Western Cities with populations of less than 1,500,000, for December of the calendar year immediately preceding utilizing the index for December 2000 as a base to determine adjustments.

On or before December 1 of each year, District will notify Industrial Water User under long-term water contract in writing of the estimated total amount of these charges for the following year and said total amount shall be paid by Industrial Water Users in four equal quarterly installments. Each installment is to become due and payable on the last day of the first month of each quarter. Provided however that in the event the District is unable to provide water for Industrial Water User or other credits are due to the Industrial Water User the second and subsequent quarterly installment payment for the Water Availability and Water Use Charges will be recomputed by the District and Industrial Water User will be notified of the change. On or before July 1 of each year following the first year of Industrial Water Service, District will mail to Water User a final accounting of water charges for the previous year. District will include with said final accounting either (1) a statement of credit owing to Industrial Water User for overpayment, or (2) a statement of Water User's additional payment obligation which shall be due and payable on August 1. Any credit owing to the Industrial Water User for overpayment may be deducted from the Industrial Water User's next installment of Water User's payment obligation to the District. In the event such credit exceeds the amount of the next installment, then, upon written request of Industrial Water User, it may authorize that the remaining amount of such credit be remitted to the Water User.

e. Supplemental Water: Payments for Supplemental Water shall be made at the rate or rates established therefore by the Board. Payment for Supplemental Water allocated as part of the Contract Amount of Water, for Water User and ordered by Water User shall be spread over the remaining regular monthly payments set forth in the Water Service Contract. Payment for Supplemental Water shall be subject to and a part of a final accounting of costs in the same manner as set forth in paragraph 5a of these Rules and Regulations. Water User shall be entitled to any credit due for overpayment and shall be responsible for any additional payment obligation as a result of underpayment identified in said final accounting adjustment.

f. Delinquency in Payments: Pursuant to Section 5(g) of the Water Service Contract the total amount of water charges of Water User is divided into eight equal installments which are due and payable on the tenth day of each of the months of February through September. If there is a delinquency in payments for water service for any turnout, the District shall impose penalties for such delinquency as follows:

a. Allocation of Water: The water supplies available to the District will be allocated to the District’s Agricultural Contract Water Users as follows:

b. Supplemental Water: The District during years of short supply may obtain water supplies in addition to that available under the Agency Contract, including District wells and Banking Programs. Such water supplies shall be allocated first to provide the full Contract Amount of Water provided for in the contracts for Agricultural Water Service under terms as the Board then determines appropriate and the costs thereof borne by the beneficiaries of such supplies. The method of allocation of Supplemental Water shall be as set forth in the contracts for Agricultural Water Service and recited in paragraph 8(a) above.

c. Industrial Water: Apportionment of water under an Industrial Water Service Contract shall be governed by the terms of that Contract.

d. Conveyance of Ground Water: In any year the District declares a water shortage exists, District facilities may be used to convey ground water for use upon land within the District for agricultural purposes [whether or not the lands to be served are within the common ownership or Farming Operation of the land from which the water is pumped], provided the affected parties enter into an Agreement in a form provided by the District which shall include but not be limited to the following provisions:

i. Nothing therein contained shall be interpreted as a waiver, relinquishment, and/or abandonment of the District’s title to water stored in the underground as a result of the District’s project.

ii. The District shall not involve itself with any disputes regarding the right of a landowner/Water User or others, nor any disputes regarding continuation of such service, nor any dispute regarding payment for such a ground water conveyed, and any landowner/Water User desiring to utilize the District’s facilities for such purposes shall hold the District harmless from any such claims.

iii. Wheeling from one system to another generally is only possible if the water being delivered to the District system is of sufficient quality to discharge into the California Aqueduct as determined by the State. Only to the extent the District is taking delivery of surface water may ground water be delivered to the District and "banked" for later uses with the District at times when the District would be taking delivery of surface water. Such restriction must be applied on a system by system basis unless water quality of the ground water is sufficient to discharge it into the California Aqueduct.

iv. The wheeling charge shall be sufficient to recover all costs to the District associated with the Storage, conveyance and delivery of ground water. The wheeling charge shall be estimated based on available information on costs and estimated quantities of ground water production. The estimated wheeling charge shall be paid by Water User within 30 days of notice. When the final costs are determined by the District, any overpayment will be credited to the Water User, and any additional charge will be paid by Water User within 30 days of notice. The cost of power and energy for pumping shall not be included in the wheeling charge and shall be charged separately based on the unit rate for transferring water between pump zones.

v. Water User shall indemnify and hold the District harmless from any damages resulting from loss of pumped ground water due to causes beyond the control of the District.

vi. The cost of providing connections to District systems, including any protective devices required by District as a condition of such connection, shall be paid from funds deposited by Water User for this purpose in advance of construction.

a. District will not be responsible for the control, carriage, handling, use, disposal or distribution of water delivered to Water User hereunder outside the facilities then being operated and maintained by District.  Water User shall indemnify and shall assume the defense of and hold harmless the District and its officers, agents and employees for any and all loss, damage, liability, claims or causes of action of every nature whatsoever for damage to or destruction of property, including the District's property, for injury to or death of persons, in any manner arising out of or incidental to the control, carriage, handling, use, disposal or distribution of water outside such facilities.

b. Pursuant to the provisions of Section 3 of the Contract dealing with conditions of delivery, place of use of project water, and Water User's liability and indemnification, water delivery may be discontinued by the District for any Water User who permits water delivered by District to escape beyond the boundary of the lands described in said contract whether willfully, carelessly, or on account of defective or inadequate ditches or pipelines, or inadequate tailwater facilities, or inadequately prepared land or improper management, and said water delivery will not be resumed until such conditions are corrected.  For the purposes of administration of this section, for lands included in a Farming Unit Operation as described in Section 4(o) of these Rules and Regulations, the contract lands shall be deemed to include all lands within said Farming Unit Operation; provided, however, that nothing herein contained shall limit or detract from the obligations assumed by Water User.

c. Without obligating District to assume any responsibility therefor, District shall have the right to the use of all waste, seepage, and return flow resulting from water supplied by the District, including but not limited to Project Water, which escapes or is discharged beyond Water User's recovery facilities, if any, and nothing herein contained shall be construed as an abandonment or relinquishment of District of the right to recapture and the use of any such water; Provided however, that nothing herein contained shall limit or detract from the obligations assumed by Water User.

11. CARRYOVER

a. All Water User's contracts with the District for water service shall include a Section 3(m) which is quoted following:

b. During the lifetime of District's adopted project, District will maintain records of ground water level and quality, and, in accordance with Water Storage District Law, if future conditions should indicate the need therefor, will levy a service charge on lands irrigated from ground water and/or seek to have an Assessment Commission appointed to readjust the Original Project Assessment to reflect project benefits to lands within District irrigated from ground water; and such action will be taken in a timely manner in order to maintain financial equity between the Water Users and ground water users in District.

In effecting this policy it is declared that without obligating District to assume any responsibility therefor and without limiting or detracting from the obligations assumed by Water Users in this regard, District shall have the right to the use of all waste, seepage and return flow resulting from Project Water which escapes, percolates or is discharged beyond Water User's recovery facilities, if any, and nothing herein contained shall be construed as an abandonment or relinquishment by District of the right to the recapture, use and benefit of all such water, and any use made of any resultant benefit to ground water conditions arising from project water is made with the consent of the District, which consent is revocable at any time, and such use is not to be considered a use adverse to District's rights nor shall any such use under any circumstances create an estoppel in asserting such rights at any time.

Further in effecting this policy, it is declared that, during all the years that District delivers water to a Water User, to the extent that such Water User shall have reduced his pumping of ground water and shall make use of water so delivered to him by District, any use made of the resultant benefit to ground water conditions is made with the consent of said Water User, which consent is revocable at any time, and such use is not to be considered a use adverse to his right to the continued exercise of his rights to pump and utilize ground water nor shall any use under any circumstances create an estoppel in asserting any such right at any time.

a. Without limiting the provisions of Paragraph 10 of the Water Service Contracts, when land affected by a Water Service Contract is sold or title otherwise transferred to another party, District will be under no obligation to deliver water to such lands until the Water Service Contract is assumed by the new landowner.  Such assumption shall be on forms provided by the District, executed and completed in a manner satisfactory to the District.  In the event of a transfer of ownership as to a portion of the lands described in an Exhibit "A" to a Water Service Contract and in the absence of written instructions from the affected landowner, the Assumption Agreement will be prepared so as to allocate the rights and obligations under said Water Service Contract on an acreage basis.

b. Notwithstanding any transfer or change of ownership, the District shall be entitled to administer a Water Service Contract in reliance upon and in accordance with matters in the files at the District office including but not limited to matters regarding title to land, address of Water User, authorizations, appointments, designations, credits and refunds and the like, until or unless District has received actual notice in writing that any or all of such matters are changed, modified or revoked.

a. The execution by the District of any assignment and/or the giving of its consent to transfer of the rights of a Water User under a Water Service Contract or to a disposal of water by the District pursuant to Rule 10 hereof, shall be without any warranty of title on the part of the District and shall not be interpreted as any representation, express or implied, by or on behalf of District, that such assignment, transfer or disposal is free and clear of outstanding encumbrances.

b. Without attempting to establish or in any manner affect the rights of any person arising from a deed of trust, any person or entity having any interest in a deed of trust on property subject to a Water Service Contract, may file with the District a written request for notice of failure to make the payments required by such Water Service Contract or a request for notice of any specific act that the District may be requested to undertake or to consent to under the Water Service Contract or these Rules and Regulations that such person alleges will detrimentally affect its interest, including but not limited to (1) a request for exclusion from the Surface Water Service Area; (2) a request for written permission to utilize water on lands other than those described in Exhibit "A" to a Water Service Contract for a period in excess of a year; or (3) a request for assignment of rights under Water Service Contract for a period in excess of a year.  Upon receipt of such notice, District shall give such person written notice of default or of any request that it take such action as is set forth in the request for notice, at least fifteen (15) days prior to foreclosure proceedings or prior to such other specified act by the District, unless such person has given written consent to the requested action.  In addition to setting forth the matters as to which notice by the District is requested, the request for such notice shall set forth a legal description of the land affected; the name of the current owner of the fee; the name and address where the requested notice is to be sent and a copy of the deed of trust showing the recording information.  Any notice from the District shall be effective when deposited in the mail, postage prepaid, directed to the address shown in the notice.  Provided however, District may disregard any request for notice which has not been refiled within fifteen (15) days of a written demand therefor by the District mailed in the same manner and with the same effect as hereinabove provided for the notice by the District; Provided further, however, nothing herein provided shall render District liable to any person under any circumstances.