Central Basin, Third Amended Judgment

The original judgment in this action was entered on or about August 27, 1965. Pursuant to the reserved and continuing jurisdiction of the court under the Judgment herein, certain amendments to said Judgment and temporary orders have heretofore been made and entered. Continuing jurisdiction of the court for this action is currently assigned to Hon. Abraham Khan.

The Motion of Plaintiff WATER REPLENISHMENT DISTRICT OF SOUTHERN CALIFORNIA (which originally brought this action under its former name “Central and West Basin Water Replenishment District”), and of defendants, City of Lakewood, City of Long Beach, Golden State Water Company, California Water Service Company, City of Los Angeles, City of Cerritos, City of Downey, City of Signal Hill, Pico Water District, Bellflower-Somerset Mutual Water Company, LaHabra Heights County Water District, City of Norwalk, Orchard Dale Water District, Montebello Land & Water Company, South Montebello Irrigation District, Sativa Los Angeles County Water District, City of Vernon and Central Basin Municipal Water District (“Moving Parties”) herein for further amendments to the Judgment, notice thereof and of the hearing thereon having been duly and regularly given to all parties, came on for hearing in Department 51 of the above-entitled court on December 18, 2013 at 9:00 a.m. before said Hon. Abraham Khan. This “Third Amended Judgment” incorporates amendments and orders heretofore made to the extent presently operable and amendments pursuant to said last mentioned motion. To the extent this Amended Judgment is a restatement of the Judgment as heretofore amended, it is for convenience in incorporating all matters in one document, is not a readjudication of such matters and is not intended to reopen any such matters. As used hereinafter the word “Judgment” shall include the original Judgment entered in this action as amended to date, including this Third Amended Judgment.

There exists in the County of Los Angeles, State of California, an underground water basin or reservoir known and hereinafter referred to as the “Central Basin” or “Basin” described in Appendix “1” to this Judgment.

Within this Judgment, the following terms, words, phrases and clauses are used by the Court with the following meanings:

“Adjudicated Storage Capacity” means 220,000 acre-feet of the Available Dewatered which has been apportioned herein for Individual Storage Accounts and Community Storage.

“Administrative Body” is defined in Section II(A).

“Administrative Year” means the twelve (12) month period beginning July 1 and ending June 30.

“Allowed Pumping Allocation” is that quantity in acre feet which the Court adjudges to be the maximum quantity which a party should be allowed to extract annually from Central Basin as set forth in Part I hereof, which constitutes 80% of such party’s Total Water Right.

“Allowed Pumping Allocation for a particular Administrative Year” and “Allowed Pumping Allocation in the following Administrative Year” and similar clauses, mean the Allowed Pumping Allocation as increased in a particular Administrative Year by any authorized carryovers pursuant to Section III(A) of this Judgment and as reduced by reason of any over extractions in a previous Administrative Year.

“Artificial Replenishment” is the replenishment of Central Basin achieved through the spreading or injection of imported or recycled water for percolation thereof into Central Basin by a governmental agency, including WRD.

“Artificial Replenishment Water” means water captured or procured by WRD to replenish the Basin, either directly by percolating or injecting the water into the Basin, or through in lieu replenishment by substituting surface water (or payment therefor) in lieu of production and use of groundwater.

“Available Dewatered Space” means the total amount of space available to hold groundwater within the Central Basin without causing Material Physical Harm, which space is allocated between Adjudicated Storage Capacity and Basin Operating Reserve.

“Base Water Right” is the highest continuous extractions of water by a party from Central Basin for a beneficial use in any period of five consecutive years after the commencement of overdraft in Central Basin and prior to the commencement of this action, as to which there has been no cessation of use by that party during any subsequent period of five consecutive years. As employed in the above definition, the words “extractions of water by a party” and “cessation of use by that party” include such extractions and cessations by any predecessor or predecessors in interest.

“Basin Operating Reserve” means a total of 110,000 acre feet of Available Dewatered Space available for Basin operations as provided in Section IV(L). The Basin Operating Reserve added to the Adjudicated Storage Capacity equals the amount of Available Dewatered Space.

“Calendar Year” is the twelve month period commencing January 1 of each year and ending December 31 of each year.

“Carryover” is defined in Section III(A).

“Carryover Conversion” means the process of transferring water properly held as Carryover into Stored Water, or the water so converted to Stored Water.

“Central Basin” is the underground basin or reservoir underlying the Central Basin Area, the exterior boundaries of which Central Basin are the same as the exterior boundaries of Central Basin Area.

“Central Basin Area” is the territory described in Appendix “1” to this Judgment and is a segment of the territory comprising Plaintiff District.

“Central Basin Water Rights Panel” means the constituent body of Watermaster consisting of seven (7) Parties elected from among parties holding Allowed Pumping Allocations as provided in Section II(B).

“CEQA” refers to the California Environmental Quality Act, Public Resources Code §§ 21000 et seq.

“Community Storage Pool” is defined in Section IV(E).

“Declared Water Emergency” means a period commencing with the adoption of a resolution of the Board of Directors of WRD declaring that conditions within the Central Basin relating to natural and imported supplies of water are such that, without implementation of the water emergency provisions of this Judgment, the water resources of the Central Basin risk degradation. Such Declaration may be made as provided in Section III(A)(3).

“Disadvantaged Community” means any area that is served by a Water Purveyor and that consists of one or more contiguous census tracts which, based upon the most-recent United States Census data, demonstrates a median household income which is less than eighty percent (80%) of the median household income for all Census Tracts within the state of California. The identification of Disadvantaged Communities shall be made by Watermaster following each decennial census.

“Extraction,” “extractions,” “extracting,” “extracted,” and other variations of the same noun and verb, mean pumping, taking, diverting or withdrawing groundwater by any manner or means whatsoever from Central Basin.

“Imported Water” means water brought into Central Basin Area from a non-tributary source by a party and any predecessors in interest, either through purchase directly from Metropolitan Water District of Southern California (“MWD”), the Central Basin Municipal Water District (“CBMWD”), or any other MWD member agency and additionally, as to the Department of Water and Power of the City of Los Angeles, water brought into the Central Basin Area by that party by means of the Owens River Aqueduct. In the case of water imported for storage by a party pursuant to this Judgment, “Imported Water” means water brought into the Central Basin from any non-tributary source as one method for establishing storage in the Central Basin.

“Imported Water Use Credit” is the annual amount, computed on a calendar year basis, of Imported Water which any party and any predecessors in interest, who have timely made the required filings under Water Code Section 1005.1, have imported into Central Basin Area in any calendar year and subsequent to July 9, 1951, for beneficial use therein, but not exceeding the amount by which that party and any predecessors in interest reduces his or their extractions of groundwater from Central Basin in that calendar year from the level of his or their extractions in the preceding calendar year, or in any prior calendar year not earlier than the calendar year 1950, whichever is the greater.

“Individual Storage Allocation” is defined in Section IV(D).

“Majority Protest” means a written protest filed with the Administrative Body of Watermaster within sixty (60) days following a protested event or decision, which evidences the concurrence of a majority of the Allowed Pumping Allocations held within the Basin as of the date thereof.

“Material Physical Harm” means material physical injury or a material diminution in the quality or quantity of groundwater available within the Basin to support extraction of Total Water Rights or Stored Water, that is demonstrated to be attributable to the placement, recharge, injection, storage or recapture of Stored Water in the Central Basin, including, but not limited to, degradation of water quality, liquefaction, land subsidence and other material physical injury caused by elevated or lowered groundwater levels. Material Physical Harm does not include “economic injury” that results from other than direct physical causes, including any adverse effect on water rates, lease rates, or demand for water. Once fully mitigated, physical injury shall no longer be considered to be material.

“Natural Replenishment” means and includes all processes other than “Artificial Replenishment” by which water may become a part of the groundwater supply of Central Basin.

“Natural Safe Yield” is the maximum quantity of groundwater, not in excess of the long term average annual quantity of Natural Replenishment, which may be extracted annually from Central Basin without eventual depletion thereof or without otherwise causing eventual permanent damage to Central Basin as a source of groundwater for beneficial use, said maximum quantity being determined without reference to Artificial Replenishment.

“Outgoing Watermaster” is the State of California, Department of Water Resources, the Watermaster appointed pursuant to the terms of the Judgment before this Third Amendment. “Overdraft” is that condition of a groundwater basin resulting from extractions in any given annual period or periods in excess of the long term average annual quantity of Natural Replenishment, or in excess of that quantity which may be extracted annually without otherwise causing eventual permanent damage to the basin.

“Party” means a party to this action. Whenever the term “party” is used in connection with a quantitative water right, or any quantitative right, privilege or obligation, or in connection with the assessment for the budget of the Watermaster, it shall be deemed to refer collectively to those parties to whom are attributed a Total Water Right in Part I of this Judgment.

“Person” or “persons” include individuals, partnerships, associations, governmental agencies and corporations, and any and all types of entities.

“Recycled Water” means water that has been reclaimed through treatment appropriate for its intended use in compliance with applicable regulations.

“Regional Disadvantaged Communities Incentive Program” means a program to be developed by Watermaster in the manner provided in Section II(H) of this Judgment, and approved by the Court, whereby a portion of the Community Storage Pool is made available to or for the benefit of Disadvantaged Communities, on a priority basis within the Central Basin.

“Replenishment Assessment” means the replenishment assessment imposed by WRD upon each acre-foot of groundwater extracted from the Central Basin pursuant to WRD’s enabling act, California Water Code §§ 60000 et seq.

“Small Water Producers Group” means a body consisting of parties holding no greater than 5,000 acre-feet of Allowed Pumping Allocation, as set forth on Appendix 3 hereto and as may be modified from time to time by the Group’s own procedures and the requirements set forth in Appendix 3.

“Storage Panel” or “Central Basin Storage Panel” means a bicameral constituent body of Watermaster consisting of (i) the Central Basin Water Rights Panel and (ii) the Board of Directors of WRD.

“Storage Project” means an activity pertaining to the placement, recharge, injection, storage, transfer, or recapture of Stored Water within the Basin, but does not include actions by WRD undertaken in connection with its replenishment activities.

“Stored Water” means water, including Recycled Water, held within Available Dewatered Space as a result of spreading, injection, in-lieu delivery, or Carryover Conversion, where there is an intention to subsequently withdraw the water for reasonable and beneficial use pursuant to this Judgment.

“Total Water Right” is the quantity arrived at in the same manner as in the computation of “Base Water Right,” but including as if extracted in any particular year the Imported Water Use Credit, if any, to which a particular party may be entitled.

“Water” includes only non-saline water, which is that having less than 1,000 parts of chlorides to 1,000,000 parts of water.

“Water Augmentation Project” means pre-approved physical actions and management activities that provide demonstrated appreciable increases in long-term annual groundwater yield in the Basin that are initiated as provided in this Judgment after January 1, 2013.

“Water Purveyor” means a Party (and successors in interest) which sells water to the public, whether a regulated public utility, mutual water company or public entity. As that term is used in Section III(B)(6), “Water Purveyor,” in addition to the foregoing, means a Party which has a connection or connections for the taking of Imported Water through the Metropolitan Water District of Southern California (“MWD”), or through a MWD-member agency, or access to such Imported Water through such connection, and which normally supplies at least a part of its customers’ water needs with such Imported Water.

“Watermaster” is defined in Part II and is comprised of (i) the Administrative Body, (ii) the Central Basin Water Rights Panel, and (iii) the Central Basin Storage Panel. Watermaster, and the various constituent bodies of Watermaster, as designated in this Judgment, exist as a special master pursuant to this Judgment and Watermaster serves at the pleasure of the Court. Nothing herein shall be construed as creating an independent designation of “Watermaster” as a public agency subject to the provisions of CEQA, nor does membership or participation as the designated Watermaster expand any statutory, constitutional, or other powers of the members serving as part of the Watermaster.

“West Coast Basin” is the groundwater basin adjacent to the Central Basin which is the subject of a separate adjudication of groundwater rights in California Water Service Company, et al. v. City of Compton, et al., Los Angeles Superior Court Case No. 506806.

“WRD” or “Water Replenishment District” is the plaintiff herein, the Water Replenishment District of Southern California, a special district of the State of California, which brought this action under its former name, “Central and West Basin Water Replenishment District.” In those instances where any of the above-defined words, terms, phrases or clauses are utilized in the definition of any of the other above-defined words, terms, phrases and clauses, such use is with the same meaning as is above set forth.

Central Basin Basin Third Amended Judgment: I

I. DECLARATION AND DETERMINATION OF WATER RIGHTS OF PARTIES; RESTRICTION ON THE EXERCISE THEREOF.

A. Determination of Rights of Parties.

(1) Each party, except defendants The City of Los Angeles and Department of Water and Power of the City of Los Angeles, whose name is set forth in Appendix 2 and by this reference made a part hereof, and after whose name there appears under the column “Total Water Right” a figure other than “0,” is the owner of and has the right to extract annually groundwater from Central Basin for beneficial use in the quantity set forth after that party’s name under said column “Total Water Right” as of the close of the Administrative Year ending June 30, 2012 in accordance with the Watermaster Reports on file with this Court and the records of the Plaintiff. This tabulation does not take into account additions or subtractions from any Allowed Pumping Allocation of a producer for the 2012-2013 Administrative Year, nor other adjustments not representing change in fee title to water rights, such as leases of water rights, nor does it include the names of lessees of landowners where the lessees are exercising the water rights. The exercise of all water rights is subject, however, to the provisions of this Judgment as hereinafter contained. All of said rights are of the same legal force and effect and are without priority with reference to each other. Each party whose name is set forth in the tabulation in Appendix “2” of this Judgment, and after whose name there appears under the column “Total Water Right” the figure “0,” owns no rights to extract any groundwater from Central Basin, and has no right to extract any groundwater from Central Basin.

(2) Defendant The City of Los Angeles is the owner of the right to extract fifteen thousand (15,000) acre feet per annum of groundwater from Central Basin, but it has the right and ability to purchase or lease additional rights to extract groundwater and increase its Allowed Pumping Allocation. Defendant Department of Water and Power of the City of Los Angeles has no right to extract groundwater from Central Basin except insofar as it has the right, power, duty or obligation on behalf of defendant The City of Los Angeles to exercise the water rights in Central Basin of defendant The City of Los Angeles. The exercise of said rights is subject, however, to the provisions of this Judgment hereafter contained, including but not limited to, sharing with other parties in any subsequent decreases or increases in the quantity of extractions permitted from Central Basin, pursuant to continuing jurisdiction of the Court, on the basis that fifteen thousand (15,000) acre feet (and any increase in its Allowed Pumping Allocation) bears to the Allowed Pumping Allocations of the other parties.

(3) No party to this action is the owner of or has any right to extract groundwater from Central Basin except as herein affirmatively determined.

B. Parties Enjoined as to Quantities of Extractions.

(1) Each party, other than The State of California and The City of Los Angeles and Department of Water and Power of The City of Los Angeles, is enjoined and restrained in any Administrative Year commencing after the date this Judgment becomes final from extracting from Central Basin any quantity of Water greater than the party’s Allowed Pumping Allocation as hereinafter set forth next to the name of the party in the tabulation appearing in Appendix 2 at the end of this Judgment, subject to further provisions of this Judgment. Subject to such further provisions, the officials, agents and employees of The State of California are enjoined and restrained in any such Administrative Year from extracting from Central Basin collectively any quantity of water greater than the Allowed Pumping Allocation of The State of California as hereinafter set forth next to the name of that party in the same tabulation. Each party adjudged and declared above not to be the owner of and not to have the right to extract groundwater from Central Basin is enjoined and restrained in any Administrative Year commencing after the date this Judgment becomes final from extracting any groundwater from Central Basin, except as may be hereinafter permitted to any such party under this Judgment.

(2) The total extraction right for each party includes a party’s Allowed Pumping Allocation (to the extent not transferred by agreement or otherwise), any contractual right acquired through lease or other agreement to extract or use the rights of another party, and any right to extract Stored Water or Carryover as provided in this Judgment. No party may extract in excess of 140% of the sum of (i) the party’s Allowed Pumping Allocation and (ii) the party’s leased water, except upon prior approval by the applicable body of Watermaster as required pursuant to Section IV(J)as provided herein. Upon application, the body specified in Section IV(J) shall approve a party’s request to extract water in excess of such limit, provided there is no Material Physical Harm. Requests to extract water in excess of such limit shall be reviewed and either approved or denied within thirty (30) days of such request.

(3) Defendant The City of Los Angeles is enjoined and restrained in any Administrative Year commencing after the date this Judgment becomes final from extracting from Central Basin any quantity of water greater than fifteen thousand (15,000) acre feet or its Allowed Pumping Allocation, as recognized by the Watermaster, if it acquires additional rights to pump groundwater through purchase or lease, subject to further provisions of this Judgment, including but not limited to, sharing with other parties in any subsequent decreases or increases in the quantity of extractions permitted from Central Basin by parties, pursuant to continuing jurisdiction of the Court, on the basis that fifteen thousand (15,000) acre feet (or the adjusted Allowed Pumping Allocation if additional rights are acquired) bears to the Allowed Pumping Allocations of the other parties. Defendant Department of Water and Power of The City of Los Angeles is enjoined and restrained in any Administrative Year commencing after the date this Judgment becomes final from extracting from Central Basin any quantity of water other than such as it may extract on behalf of defendant The City of Los Angeles, and which extractions, along with any extractions by said City, shall not exceed that quantity permitted by this Judgment to that City in any Administrative Year. Whenever in this Judgment the term “Allowed Pumping Allocation” appears, it shall be deemed to mean as to defendant The City of Los Angeles the quantity of fifteen thousand (15,000) acre feet unless the City of Los Angeles has acquired through purchase or lease right to extract additional groundwater. The limit on extraction as provided in the preceding Section I(B)(1) shall also apply to The City of Los Angeles.

(4) Any rights decreed and adjudicated herein may be transferred, assigned, licensed or leased by the owner thereof provided, however, that no such transfer shall be complete until compliance with the appropriate notice procedures established by Watermaster.

(5) Unless a party elects otherwise, production of water from the Basin for the use or benefit of the parties hereto shall be counted against the party’s total extraction right in the following order: (i) Increased extractions by certain qualified water rights holders pursuant to Section IV(K), (ii) Exchange Pool production, (iii) production of Carryover water, (iv) production of leased water, (v) production of Allowed Pumping Allocation, (vi) production of Stored Water, (vii) production of Drought Carryover (according to Watermaster’s Rules), and (viii) production of water under an agreement with WRD during a period of emergency pursuant to Section III(B)(6).

C. Parties Enjoined as to Export of Extractions.

Except as expressly authorized herein, or upon further order of the Court, all parties are enjoined and restrained from transporting water extracted from the Central Basin outside the boundaries of the Central Basin Area. For purposes of this Section, water supplied by a Water Purveyor to its customers located within any of its service areas contiguous to the Central Basin or within WRD’s service area shall be exempt from the export prohibition of this Section provided that the Water Purveyor also provides water to a service area that overlies the Basin in whole or in part. The foregoing exemption is not made, nor is it related to, a determination of an underflow between the basins, a cost or benefit allocation, or any other factor relating to the allocation of the Replenishment Assessment by WRD. Further, this injunction and restriction does not apply to export of water that will take place pursuant to contractual obligations specifically identified on Appendix 4, nor does it apply to export of Stored Water not having its origin in Carryover Conversion. The export identified on Appendix 4 may continue to the extent that any such extraction does not violate any other provisions of this Judgment, provided however that no such export identified on Appendix 4 shall exceed 5,000 acre-feet in any Year.

Central Basin Basin Third Amended Judgment: II

II. APPOINTMENT OF WATERMASTER; WATERMASTER ADMINISTRATION PROVISIONS.

The particular bodies specified below are, jointly, hereby appointed Watermaster, for an indefinite term, but subject to removal by the Court, to administer this Judgment. Such bodies, which together shall constitute the “Watermaster,” shall have restricted powers, duties and responsibilities as specified herein, it being the court’s intention that particular constituent bodies of Watermaster have only limited and specified powers over certain aspects of the administration of this Judgment. The Outgoing Watermaster will exercise reasonable diligence in the complete transition of Watermaster duties and responsibilities within a reasonable time following entry of this order, and to make available to the new Watermaster all records concerning Watermaster activities. The chair of the Central Basin Water Rights Panel (defined below) shall thereafter represent the Watermaster before the Court.

A. The Administrative Body.

Plaintiff Water Replenishment District of Southern California (“WRD”) is appointed the Administrative Body of the Central Basin Watermaster (“Administrative Body”). In order to assist the Court in the administration of the provisions of this Judgment and to keep the Water Rights Panel and the Court fully advised in the premises, the Administrative Body shall have the following duties, powers and responsibilities:

(1) To Require Reports, Information and Records.

In consultation with the Water Rights Panel, the Administrative Body shall require the parties to furnish such reports, information and records as may be reasonably necessary to determine compliance or lack of compliance by any party with the provisions of this Judgment.

(2) Storage Projects.
The Administrative Body shall exercise such powers as may be specifically granted to it under this Judgment with regard to Stored Water.

(3) Annual Report.
The Administrative Body shall prepare, on or before the 15th day of the fourth month following the end of the preceding Administrative Year, an annual report for the consideration of the Water Rights Panel. The Chair of the Water Rights Panel shall submit to the Court either (1) the annual report prepared by the Administrative Body, following the adoption by the Water Rights Panel, or (2) an annual report separately prepared and adopted by the Water Rights Panel. The annual report prepared by the Administrative Body shall be limited to the following, unless otherwise required by the Court:

(a) Groundwater extractions
(b) Storage Accounts maintained by each party
(c) Status of the Regional Disadvantaged Community Incentive Program, if approved by the Court
(d) Exchange Pool operation
(e) Use of Imported Water
(f) Violations of this Judgment and corrective action taken by bodies of Watermaster having jurisdiction as provided in this Judgment
(g) Change of ownership of Total Water Rights
(h) Watermaster administration costs
(i) Water spread or imported into the Basin
(j) Water Augmentation Projects
(k) Whether the Administrative Body has become aware of the development of a Material Physical Harm, or imminent threat of the development of a Material Physical Harm, as required pursuant to Section IV(B) of this Judgment
(l) Other matters as agreed with the Water Rights Panel
(m) Recommendations, if any.

In consultation with the Water Rights Panel, the Administrative Body shall provide reasonable notice to all parties of all material actions or determinations by Watermaster or any constituent body thereof, and as otherwise provided by this Third Amended Judgment.

(4) Annual Budget and Appeal Procedure in Relation Thereto.

By April 1 of each Administrative Year, the Administrative Body shall prepare a proposed administrative budget for the subsequent year stating the anticipated expense for performing the administrative functions specified in this Judgment (the “Administrative Budget”). The Administrative Body shall mail a copy of the proposed Administrative Budget to each of the Parties at least 60 days before the beginning of each Administrative Year. The Administrative Budget mailed to the Parties shall provide sufficient detail in the Administrative Budget to demonstrate a separation in accounting between the Administrative Budget and WRD’s Replenishment Assessment and operating budget. For the first Administrative Year of operation under this Third Amended Judgment, if the Administrative Body is unable to meet the above time requirement, the Administrative Body shall mail said copies as soon as possible. The first year the Administrative Budget is prepared, the amount of that budget shall not exceed an amount equal to fifty percent (50%) of the 2012-2013 charge for Watermaster service for the Central Basin collected from Parties by the California Department of Water Resources. At all times, the Administrative Body shall maintain a separation in accounting between the Administrative Budget and WRD’s Replenishment Assessment and operating budget. All increases in future budgets for the Administrative Body above the amount set forth above shall be subject to approval by the Water Rights Panel following a public meeting to be held prior to the beginning of the Administrative Year, provided that the approved budget shall not be less than the amount of the first-year budget for the Administrative Body, except upon further order of the Court. Any administrative function by WRD already paid for by the Replenishment Assessment shall not be added as an expense in the Administrative Budget. Similarly, any expense paid for by the Administrative Budget shall not be added to WRD’s operating budget, or otherwise added to the calculation of the Replenishment Assessment. While WRD may approve the proposed Administrative Budget at the same meeting in which WRD adopts its annual Replenishment Assessment or annual budget, the Administrative Body’s budget shall be separate and distinct from the Replenishment Assessment imposed pursuant to Water Code §60317 and WRD’s operating budget.

If approval by the Water Rights Panel is required pursuant to the foregoing, the Water Rights Panel shall act upon the proposed budget within 15 calendar days after the public meeting. If the Water Rights Panel does not approve the budget prior to such deadline, the matter may be appealed to the Court within sixty (60) days. If any Party hereto has any objection to the Administrative Budget, it shall present the same in writing to Watermaster within 15 days after the date of mailing of said tentative budget by the Administrative Body. The Parties shall make the payments otherwise required of them to the Administrative Body even though an appeal of such budget may be pending. Upon any revision by the Court, the Administrative Body shall either remit to the Parties their pro rata portions of any reduction in the budget, or shall credit their accounts with respect to their budget assessments for the next ensuing Administrative Year, as the Court shall direct.

The amount of the Administrative Budget to be assessed to each party shall be determined as follows: If that portion of the final budget to be assessed to the Parties is equal to or less than $20.00 per party then the cost shall be equally apportioned among the Parties. If that portion of the final budget to be assessed to Parties is greater than $20.00 per party then each Party shall be assessed a minimum of $20.00. The amount of revenue expected to be received through the foregoing minimum assessments shall be deducted from that portion of the final budget to be assessed to the Parties and the balance shall be assessed to the Parties having Allowed Pumping Allocation, such balance being divided among them proportionately in accordance with their respective Allowed Pumping Allocation.

Payment of the assessment provided for herein, subject to adjustment by the Court as provided, shall be made by each such party prior to beginning of the Administrative Year to which the assessment relates, or within 40 days after the mailing of the tentative budget, whichever is later. If such payment by any Party is not made on or before said date, the Administrative Body shall add a penalty of 5% thereof to such party’s statement. Payment required of any Party hereunder may be enforced by execution issued out of the Court, or as may be provided by order hereinafter made by the Court, or by other proceedings by the Watermaster or by any Party on the Watermaster’s behalf.

Any money unexpended at the end of any Administrative Year shall be applied to the budget of the next succeeding Administrative Year. The Administrative Body shall maintain no reserves.

Notwithstanding the above, no part of the budget of the Administrative Body shall be assessed to WRD or to any Party who has not extracted water from Central Basin for a period of two successive Administrative Years prior to the Administrative Year in which the tentative budget should be mailed by the Administrative Body under the provisions of this subparagraph (4).

(5) Rules.

The Administrative Body may adopt, and amend from time to time, rules consistent with this Judgment as may be reasonably necessary to carry out duties under the provisions of this Judgment within its particular area of responsibility. The Body shall adopt its first set of rules and procedures within three (3) months following entry of this Third Amended Judgment. The rules shall be effective on such date after the mailing thereof to the Parties as is specified by the Body, but not sooner than thirty (30) days after such mailing.

B. The Central Basin Water Rights Panel.

The Central Basin Water Rights Panel of the Central Basin Watermaster (“Water Rights Panel”) shall consist of seven (7) members, each of which is a Party. The term of each member of the Panel, with the exception of the seat held by the Small Water Producers Group, as provided herein, shall be limited to four years. The Court will make the initial appointments to the Central Basin Water Rights Panel upon motion by Parties consistent with the categories set forth below at or about the time of entry of this Third Amended Judgment, and shall establish a procedure for the staggered terms of such members. Thereafter, elections of members of the Panel shall be held as provided herein. One (1) such member of the Water Rights Panel shall be elected by vote of the Small Water Producers Group conducted in accordance with its own procedures, provided such Group, as of the date of the election, consists of at least five (5) members who are Water Purveyors. One (1) such member of the Water Rights Panel shall be elected by vote of Parties with Allowed Pumping Allocation of less than 5,000 acre-feet who are not members of the Small Water Producers Group or, if the Small Water Producers Group does not then qualify following a continuous six-month period of non-qualification as provided herein, then two (2) such members shall be so selected. One (1) such member of the Water Rights Panel shall be elected by vote of Parties with Allowed Pumping Allocation of at least 5,000 acre-feet but less than 10,000 acre-feet. Three (3) such members of the Water Rights Panel shall be elected by vote of Parties with Allowed Pumping Allocation of 10,000 acre-feet or greater. One (1) such member of the Water Rights Panel shall be elected by a vote of all holders of Allowed Pumping Allocations, with each such holder being entitled to one vote, such member to be elected by a plurality of the votes cast, following a nomination procedure to be established in the Water Rights Panel’s rules. In the event of a tie, the seventh member shall be determined as may be provided in the Water Rights Panel’s rules, or otherwise by the court. Except as otherwise provided in this Section, each such rights holder shall have the right to cast a total number of votes equal to the number of acre-feet of its Allowed Pumping Allocation (rounded to the next highest whole number). With the exception of voting for the seventh member, Parties shall be entitled to vote only for candidates within the category(ies) that represent that Party’s Allowed Pumping Allocation. For example, parties who are members of the Small Water Producers Group are entitled to vote only for the Small Water Producer Group member and the seventh member of the Water Rights Panel, and so on. Parties are not permitted to split votes. The results of such election shall be reported to the Court for confirmation of each member’s appointment to the Water Rights Panel of Watermaster. The elected members of the Water Rights Panel shall be those candidates receiving the highest vote total in their respective categories. The Water Rights Panel shall hold its first meeting within thirty (30) days of the date this Third Amended Judgment becomes final. The Water Rights Panel shall develop rules for its operation consistent with this Judgment. The Water Rights Panel shall take action, including the election of its Chair, by majority vote of its members. Election of the Chair shall occur every two years, with no Party serving as Chair for consecutive terms. Members of the Water Rights Panel shall serve without compensation. All references to Annual Pumping Allocation, as used herein, are as determined by the last published Watermaster report.

(1) The Water Rights Panel shall have the following duties and responsibilities:

(a) Enforcement of Adjudicated Rights. As against the other bodies of Watermaster, the Water Rights Panel shall have exclusive authority to move the Court to take such action as may be necessary to enforce the terms of the Judgment with regard to the extraction of Allowed Pumping Allocation and the maintenance of adjudicated groundwater extraction rights as provided in this Judgment.

(b) Requirement of Measuring Devices. The Water Rights Panel shall require all parties owning or operating any facilities for the extraction of groundwater from Central Basin to install and maintain at all times in good working order at such party’s own expense, appropriate measuring devices at such times and as often as may be reasonable under the circumstances and to calibrate or test such devices.

(c) Inspections by Watermaster. The Water Rights Panel may make inspections of groundwater production facilities, including aquifer storage and recovery facilities, and measuring devices at such times and as often as may be reasonable under the circumstances and to calibrate or test such devices.

(d) Reports. Annually, the Water Rights Panel, in cooperation with the Administrative Body, shall report to the Court, concerning any or all of the following:

(i) Groundwater extractions
(ii) Exchange Pool operation

(iii) Status of the Regional Disadvantaged Community Incentive Program, if approved by the Court

(iv) Violations of this Judgment and corrective action taken or sought

(v) Change of ownership of Total Water Rights

(vi) Assessments made by the Water Rights Panel and any costs incurred

(vii) Whether the Water Rights Panel has become aware of the development of a Material Physical Harm, or imminent threat of the development of a Material Physical Harm, as required pursuant to Section IV(B) of this Judgment

(viii) Recommendations, if any.

As provided in Section II.A(3), the Water Rights Panel may adopt the annual report prepared by the Administrative Body, and submit the same to the Court, or the Water Rights Panel may prepare, adopt and submit to the Court a separate report. The Chair of the Water Rights Panel shall be responsible for reporting to the Court concerning adjudicated water rights issues in the Basin.

(2) Assessment.

The Water Rights Panel shall assess holders of water rights within the Central Basin an annual amount not to exceed $1.00 per acre foot of Allowed Pumping Allocation, by majority vote of the members of the Water Rights Panel. The body may assess a higher amount, subject to being overruled by Majority Protest. The assessment is intended to cover any costs associated with reporting responsibilities, any Judgment enforcement action, and the review of storage projects as a component of the “Storage Panel” as provided below. It is anticipated that this body will rely on the Administrative Body’s staff for the functions related to the Administrative Body’s responsibilities, but the Water Rights Panel may engage its own staff if required in its reasonable judgment. Assessments will constitute a lien on the water right assessed, enforceable as provided in this Judgment.

(3) Rules.

The Water Rights Panel may adopt and amend from time to time, at an open meeting of that Panel, rules consistent with this Judgment as may be reasonably necessary to carry out duties under the provisions of this Judgment within its particular area of responsibility. The Panel shall adopt its first set of rules and procedures within three (3) months following entry of this Third Amended Judgment. The rules shall be effective on such date after the mailing thereof to the Parties as is specified by the Panel, but not sooner than thirty (30) days after such mailing.

C. The Storage Panel.

The Storage Panel of the Central Basin Watermaster (“Storage Panel”) shall be a bicameral body consisting of (i) the Water Rights Panel and (ii) the Board of Directors of WRD. Action by the Storage Panel shall require separate action by a majority of each of its constituent bodies. The Storage Panel shall have the duties and responsibilities specified with regard to the Provisions for the Storage and Extraction of Stored Groundwater as set forth in Part IV and the other provisions of this Judgment.

D. Use of Facilities and Data Collected by Other Governmental Agencies.

Where practicable, the three bodies constituting the Central Basin Watermaster should not duplicate the collection of data relative to conditions of the Central Basin which is then being collected by one or more governmental agencies, but where necessary each such body may collect supplemental data. Where it appears more economical to do so, the Watermaster and its constituent bodies are directed to use such facilities of other governmental agencies as are available to it under either no cost or cost agreements with respect to the receipt of reports, billings to parties, mailings to parties, and similar matters.

E. Appeal from Watermaster Decisions.

Appeals concerning the budget proposed by the Administrative Body shall be governed by Section II(A)(4) of this Judgment. Appeals concerning decisions by the Storage Panel shall be governed by Section IV(P) of this Judgment. With respect to all other objections by a Party to any action or decision by the Watermaster, such objections will be governed by this Section II(E). Any party interested therein who objects to any rule, determination, order or finding made by the Watermaster or any constituent body thereof, may object thereto in writing delivered to the Administrative Body within 30 days after the date the Watermaster, or any constituent body thereof, mails written notice of the making of such rule, determination, order or finding. Within 30 days after such delivery the Watermaster, or the affected constituent body thereof, shall consider said objection and shall amend or affirm his rule, determination, order or finding and shall give notice thereof to all parties. Any such party may file with the Court within 60 days from the date of said notice any objection to such rule, determination, order or finding of the Watermaster, or any constituent body thereof, and bring the same on for hearing before the Court at such time as the Court may direct, after first having served said objection upon all other parties. The Court may affirm, modify, amend or overrule any such rule, determination, order or finding of the Watermaster or its affected constituent body. Any objection under this paragraph shall not stay the rule, determination, order or finding of the Watermaster. However, the Court, by ex parte order, may provide for a stay thereof on application of any interested party on or after the date that any such party delivers to the Watermaster any written objection.

F. Effect of Non-Compliance by Watermaster With Time Provisions.

Failure of the Watermaster to perform any duty, power or responsibility set forth in this Judgment within the time limitation herein set forth shall not deprive the Watermaster or its applicable constituent body of authority to subsequently discharge such duty, power or responsibility, except to the extent that any such failure by the Watermaster may have rendered some otherwise required act by a party impossible.

G. Limitations on Administrative Body.

WRD shall not acquire Central Basin water rights, nor lease Central Basin water or water rights to or from any Party or third party. However, the foregoing shall (i) not be interpreted to restrict WRD’s ability or authority to acquire water from any source for purposes of Artificial or Natural Replenishment or for water quality activities, and (ii) not restrict WRD’s authority under California Water Code Section 60000 et seq. to develop reclaimed, recycled or remediated water for groundwater replenishment activities.

H. Regional Disadvantaged Communities Incentive Program.

The Water Rights Panel, acting through the General Manager of WRD, shall develop a Regional Disadvantaged Communities Incentive Program, pursuant to which a portion of the Community Storage Pool is reserved for the benefit of Disadvantaged Communities within the Central Basin. Nothing in this Judgment, nor the establishment of such a program, shall diminish the rights otherwise granted to Parties under this Judgment, including but not limited to the right to place water in storage in the Community Storage Pool. The Water Rights Panel shall meet within thirty (30) days of its formation to identify and consider potential third-party independent consultants who may be retained to design the program, including those recommended by the General Manager of WRD. The Water Rights Panel shall select a consultant within thirty (30) days thereafter. In the event the General Manager of WRD objects to the selected consultant, in writing, then the Water Rights Panel and the General Manager of WRD shall exchange a list of no more than two (2) consultants each for further consideration. If the Water Rights Panel and the General Manager of WRD are unable to agree to a consultant within an additional thirty (30) days, then the Chair of the Water Rights Panel shall file a request with the Court for an order appointing a consultant. Upon selection of a third-party independent consultant, whether through the Water Rights Panel process or the court process identified herein, the consultant shall design a detailed program and deliver it to the Water Rights Panel within ninety (90) days of the consultant’s retention.

All costs associated with design of the program shall be paid for out of the Water Rights Panel’s assessment, as provided in Section II.B(2). The Water Rights Panel shall present the program to the Court for its review and approval within one year of entry of this Third Amended Judgment. If approved by the Court, the Water Rights Panel, acting through the General Manager of WRD, shall be responsible for administration of the Regional Disadvantaged Communities Incentive Program, including insuring that any funds generated through the program benefit Disadvantaged Communities. Any Storage Project established pursuant to this Program shall have priority to use up to 23,000 acre feet of Available Storage within the Community Storage Pool, as further provided in Section IV.E(2). Watermaster shall report to the Court concerning such program as a part of its annual report.

Central Basin Basin Third Amended Judgment: III

III. PROVISIONS FOR PHYSICAL SOLUTION TO MEET THE WATER REQUIREMENTS IN CENTRAL BASIN.

In order to provide flexibility to the injunction set forth in Part I of the Judgment, and to assist in a physical solution to meet water requirements in Central Basin, the injunction so set forth is subject to the following provisions.

A. Carryover of Portion of Allowed Pumping Allocation.

(1) Amount of Carryover.

Each party adjudged to have a Total Water Right or water rights and who, during a particular Administrative Year, does not extract from Central Basin a total quantity equal to such party’s Allowed Pumping Allocation for the particular Administrative Year, less any allocated subscriptions by such party to the Exchange Pool, or plus any allocated requests by such party for purchase of Exchange Pool water, is permitted to carry over (the “One Year Carryover”) from such Administrative Year the right to extract from Central Basin in the next succeeding Administrative Year so much of said total quantity as it did not extract in the particular Administrative Year, not to exceed (i) the Applicable Percentage of such party’s Allowed Pumping Allocation for the particular Administrative Year, or 20 acre-feet, whichever of said percentage or 20 acre-feet is the larger, less (ii) the total quantity of water then held in that party’s combined Individual and Community Storage accounts, as hereinafter defined, but in no event less than 20% of the party’s Allowed Pumping Allocation for the particular Administrative Year. For purposes of this Section, the “Applicable Percentage” shall be as follows for the years indicated:

For the Administrative Year in which this Third Amended Judgment becomes final: 30% For the next Administrative Year: 40% For the next Administrative Year: 50% For the next Administrative Year and years following: 60%

(2) Conversion of Carryover to Stored Water.

A party having Carryover may, from time to time, elect to convert all or part of such party’s Carryover to Stored Water as authorized herein (“Carryover Conversion”) upon payment of the Replenishment Assessment to WRD. Such Stored Water shall be assigned to that party’s Individual Storage Allocation, if available, and otherwise to the Community Storage Pool.

(3) Declared Water Emergency.

The Board of Directors of WRD may, from time to time, declare a water emergency upon a determination that conditions within the Central Basin relating to natural and imported water supplies are such that, without implementation of the Declared Water Emergency provisions of this subsection, the water resources of the Central Basin risk degradation. In making such declaration, the Board of Directors shall consider any information and requests provided by water producers, purveyors and other affected entities and shall, for that purpose, hold a public hearing in advance of such declaration. A Declared Water Emergency shall extend to the end of the Administrative Year during which such resolution is adopted, unless sooner ended by similar resolution.

(4) Drought Carryover.

Following the declaration of a Declared Water Emergency and until the Declared Water Emergency ends either by expiration or by resolution of the Board of Directors of WRD, each party adjudged to have a Total Water Right or water rights and who, during a particular Administrative Year, does not extract from Central Basin a total quantity equal to such party’s Allowed Pumping Allocation for the particular Administrative Year, less any allocated subscriptions by such party to the Exchange Pool, or plus any allocated requests by such party for purchase of Exchange Pool water, is permitted to carry over (the “Drought 12 Carryover”) from such Administrative Year the right to extract from Central Basin so much of said total quantity as it did not extract during the period of the Declared Water Emergency, to the extent such quantity exceeds the One Year Carryover, not to exceed an additional 35% of such party’s Allowed Pumping Allocation, or additional 35 acre feet, whichever of said 35% or 35 acre feet is the larger, less the amount of such party’s Stored Water. Carryover amounts shall first be allocated to the One Year Carryover and any remaining carryover amount for that year shall be allocated to the Drought Carryover.

(5) Accumulated Drought Carryover.

No further amounts shall be added to the Drought Carryover following the end of the Declared Water Emergency, provided however that in the event another Declared Water Emergency is declared, additional Drought Carryover may be added, to the extent such additional Drought Carryover would not cause the total Drought Carryover to exceed the limits set forth above. The Drought Carryover shall be supplemental to and shall not affect any previous drought carryover acquired by a party pursuant to previous order of the court.

B. When Over-Extractions May be Permitted.

(1) Underestimation of Requirements for Water.

Any party hereto without Stored Water, having an Allowed Pumping Allocation, and not in violation of any provision of this Judgment may extract in an Administrative Year an additional quantity of water not to exceed: (a) 20% of such party’s Allowed Pumping Allocation or 20 acre feet, whichever is greater, and (b) any amount in addition thereto which may be approved in advance by the Water Rights Panel of Watermaster.

(2) Reductions in Allowed Pumping Allocations in Succeeding Years to Compensate for Permissible Overextractions.

Any such party’s Allowed Pumping Allocation for the following Administrative Year shall be reduced by the amount over-extracted pursuant to paragraph 1 above, provided that if the Water Rights Panel determines that such reduction in the party’s Allowed Pumping Allocation in one Administrative Year will impose upon such a party an unreasonable hardship, the said reduction in said party’s Allowed Pumping Allocation shall be prorated over a period of five (5) Administrative Years succeeding that in which the excessive extractions by the party occurred. Application for such relief to the Water Rights Panel must be made not later than the 40th day after the end of the Administrative Year in which such excessive pumping occurred. The Water Rights Panel shall grant such relief if such over-extraction, or any portion thereof, occurred during a period of Declared Water Emergency.

(3) Reductions in Allowed Pumping Allocations for the Next Succeeding Administrative Year to Compensate for Overpumping.

Whenever, pursuant to Section III(B)(1), a party over-extracts in excess of such party’s Allowed Pumping Allocation plus that party’s available One-Year Carryover and any Stored Water held by that party, and such excess has not been approved in advance by the Water Rights Panel, then such party’s Allowed Pumping Allocation for the following Administrative Year shall be reduced by an amount equivalent to its total over-extractions in the particular Administrative Year in which it occurred.

(4) Reports of Certain Over-extractions to the Court.

Whenever a party over-extracts in excess of 20% of such party’s Allowed Pumping Allocation for the particular Administrative Year plus that party’s available One-Year Carryover and any Stored Water held by that party, without having obtained prior approval of the Water Rights Panel, such shall constitute a violation of the Judgment and the Water Rights Panel shall make a written report to the Court for such action as the Court may deem necessary. Such party shall be subject to such injunctive and other processes and action as the Court might otherwise take with regard to any other violation of such Judgment.

(5) Effect of Over-extractions on Rights.

Any party who over-extracts from Central Basin in any Administrative Year shall not acquire any additional rights by reason of such over-extractions; nor shall any required reductions in extractions during any subsequent years reduce the Total Water Right or water rights of any party to the extent said over extractions are in compliance with paragraph 1 above.

(6) Pumping Under Agreement With Plaintiff During Periods of Emergency.

Plaintiff WRD overlies Central Basin and engages in activities of replenishing the groundwaters thereof. Plaintiff by resolution has appropriated for use during emergencies the quantity of 17,000 acre feet of imported and reclaimed water replenished by it into Central Basin, and pursuant to such resolution Plaintiff reserves the right to use or cause the use of such quantity during such emergency periods for the benefit of Water Purveyors.

(a) Notwithstanding any other provision of this Judgment, parties who are Water Purveyors (including successors in interest) are authorized to enter into agreements with Plaintiff for extraction of a portion of Plaintiff’s 17,000 acre-feet of appropriated water, in excess of their respective Allowed Pumping Allocations for the particular Administrative Year when the following conditions are met:

(i) Plaintiff is in receipt of a resolution of the Board of Directors of the Metropolitan Water District of Southern California (“MWD”) that there is an actual or immediately threatened temporary shortage of MWD’s imported water supply compared to MWD’s needs, or a temporary inability to deliver MWD’s imported water supply throughout its area, which will be alleviated by overpumping from Central Basin.

(ii) The Board of Directors of both Plaintiff and Central Basin Municipal Water District by resolutions concur in the resolution of MWD’s Board of Directors, and the Board of Directors of Plaintiff finds in its resolution that the average minimum elevation of water surface among those wells in the Montebello Forebay of the Central Basin designated as Los Angeles County Flood Control District Wells Nos. 1601T, 1564P, 1615P, and 1626L, is at least 43.7 feet above sea level. This computation shall be based upon the most recent “static readings” taken, which shall have been taken not more than four weeks prior. Should any of the wells designated above become destroyed or otherwise be in a condition so that readings cannot be made, or should the owner prevent their use for such readings, the Board of Directors of the Plaintiff may, upon appropriate engineering recommendation, substitute such other well or wells as it may deem appropriate.

(iii) In said resolution, Plaintiff’s Board of Directors sets a public hearing, and notice of the time, place and date thereof (which may be continued from time to time without further notice) is given by First Class Mail to the current designees of the Parties, filed and served in accordance with Section VI(C) of this Judgment. Said notice shall be mailed at least five (5) days before the scheduled hearing date.

(iv) At said public hearing, parties (including successors in interest) are given full opportunity to be heard, and at the conclusion thereof the Board of Directors of Plaintiff by resolution decides to proceed with agreements under this Section III(B)(6).

(b) All such agreements shall be subject to the following requirements, and such others as Plaintiff’s Board of Directors shall require:

(i) They shall be of uniform content except as to quantity involved, and any special provisions considered necessary or desirable with respect to local hydrological conditions or good hydrologic practice.

(ii) They shall be offered to all Water Purveyors, excepting those which Plaintiff’s Board of Directors determines should not overpump because such overpumping would occur in undesirable proximity to a sea water barrier project designed to forestall sea water intrusion, or within or in undesirable proximity to an area within Central Basin wherein groundwater levels are at an elevation where overpumping is under all the circumstances then undesirable.

(iii) The maximum terms for the agreements shall be four (4) months, which agreements shall commence on the same date and end on the same date (and which may be executed at any time within the four-month period), unless an extension thereof is authorized by the Court, under Part V of this Judgment.

(iv) They shall contain provisions requiring that the Water Purveyor executing the agreement pay to the Plaintiff a price in addition to the applicable replenishment assessment determined on the following formula. The normal price per acre-foot of Central Basin Municipal Water District’s (CBMWD) treated domestic and municipal water, as “normal” price of such category of water is defined in Section III(C)(10) (price to be paid for Exchange Pool Water) as of the beginning of the contract term less the deductions set forth in said paragraph 10 for the Administrative Year in which the contract term commences. The agreement shall provide for adjustments in the first of said components for any proportional period of the contract term during which the CBMWD said normal price is changed, and if the agreement straddles two administrative years, the said deductions shall be adjusted for any proportionate period of the contract term in which the amount thereof or of either subcomponent changes for purposes of said paragraph 10. Any price for a partial acre foot shall be computed pro rata. Payments shall be due and payable on the principle that over extractions under the agreement are of the last water pumped in the Administrative Year, and shall be payable as the agreement shall provide.

(v) They shall contain provisions that: (1) All of such agreements (but not less than all) shall be subject to termination by Plaintiff if, in the Judgment of Plaintiff’s Board of Directors, the conditions or threatened conditions upon which they were based have abated to the extent over extractions are no longer considered necessary; and (2) that any individual agreement or agreements may be terminated if the Plaintiff’s Board of Directors finds that adverse hydrologic circumstances have developed as a result of over extractions by any Water Purveyor(s) which have executed said agreements, or for any other reason that Plaintiff’s Board of Directors finds good and sufficient.

(c) Other matters applicable to such agreements and overpumping thereunder are as follows, without need for express provisions in the agreements;

(i) The quantity of overpumping permitted shall be additional to that which the Water Purveyor could otherwise overpump under this Judgment.

(ii) The total quantity of permitted overpumping under all said agreements during said four months shall not exceed seventeen thousand (17,000) acre feet, but the individual Water Purveyor shall not be responsible or affected by any violation of this requirement. That total is additional to over extractions otherwise permitted under this Judgment.

(iii) Only one four month period may be utilized by Plaintiff in entering into such agreements, as to any one emergency or continuation thereof declared by MWD’s Board of Directors under Section III(B)(6)(a).

(iv) If any party claims it is being damaged or threatened with damage by the over extractions by any party to such an agreement, the first party or the Water Rights Panel may seek appropriate action of the Court for termination of any such agreement upon notice of hearing to the party complaining, to the party to said agreement, to the plaintiff, and to any parties who have filed a request for special notice. Any termination shall not affect the obligation of the party to make payments under the agreement for over extractions which did occur thereunder.

(v) Plaintiff shall maintain separate accounting of the proceeds from payments made pursuant to agreements entered into under this Part. Said fund shall be utilized solely for purposes of replenishment in replacement of waters in Central Basin and West Basin.

Plaintiff shall as soon as practicable cause replenishment in Central Basin by the amounts to be overproduced pursuant to this Paragraph 6, whether through spreading, injection, or in lieu agreements.

(vi) Over extractions pursuant to the agreements shall not be subject to the “make up” provisions of the Judgment as amended, provided that if any party fails to make payments as required by the agreement, Plaintiff may require such “make up” under Section III(B)(3) of this Judgment.

(vii) A Water Purveyor under any such agreement may, and is encouraged to enter into appropriate arrangements with customers who have water rights in Central Basin under or pursuant to this Judgment whereby the Water Purveyor will be assisted in meeting the objectives of the agreement.

(7) Exemption for Extractors of Contaminated Groundwater.

Any party herein may petition WRD for a Non-consumptive Water Use Permit as part of a project to remedy or ameliorate groundwater contamination. If the petition is granted as set forth in this paragraph, the petitioner may extract the groundwater as permitted hereinafter, without the production counting against the petitioner’s production rights.

(a) If the Board of WRD determines by Resolution that there is a problem of groundwater contamination that a proposed program will remedy or ameliorate, an operator may make extractions of groundwater to remedy or ameliorate that problem without the production counting against the petitioner’s production rights if the water is not applied to beneficial surface use, its extractions are made in compliance with all the terms and conditions of the Board Resolution, and the Board has determined in the Resolution either of the following:

(i) The groundwater to be extracted is unusable and cannot be economically treated or blended for use with other water.

(ii) The proposed program involves extraction of usable water in the same quantity as will be returned to the underground without degradation of quality.

(b) The Resolution may provide those terms and conditions the Board deems appropriate, including, but not limited to, restrictions on the quantity of the extractions to be so exempted, limitations on time, periodic reviews, requirement of submission of test results from a Board-approved laboratory, and any other relevant terms or conditions.

(c) Upon written notice to the operator involved, the Board may rescind or modify its Resolution. The rescission or modification of the Resolution shall apply to groundwater extractions occurring more than ten (10) days after the rescission or modification. Notice of rescission or modification shall be either mailed first class mail, postage prepaid, at least two weeks prior to the meeting of the Board at which the rescission or modification will be made to the address of record of the operator or personally delivered two weeks prior to the meeting.

(d) The Board’s decision to grant, deny, modify or revoke a permit or to interrupt or stop a permitted project may be appealed to this court within thirty days of the notice thereof to the applicant and upon thirty days’ notice to the designees of all parties herein.

(e) WRD shall monitor and periodically inspect the project for compliance with the terms and conditions for any permit issued pursuant to these provisions.

(f) No party shall recover costs from any other party herein in connection with determinations made with respect to this Part.

(8) “Call” on Carryover Converted to Stored Water.

Where any Party has elected, as permitted by Section III(A)(2), to convert Carryover to Stored Water, any other Party which has not, within the previous ten (10) years, been granted approval to extract Carryover Conversion under this Section III(B)(8) more than five (5) times, may apply to the Storage Panel for the right to extract all or a portion of that Carryover Conversion in the year such Conversion occurs. The Storage Panel shall grant such request, providing there is no Material Physical Harm, if it determines that leased groundwater to meet the applicant’s needs within the Basin cannot be obtained for less than forty-five percent (45%) of MWD’s Imported Water rate for delivery of untreated water to the Central Basin spreading facilities (which rate is presently MWD’s “Full Service Untreated Volumetric Cost, Tier 1”), and that the applicant will fully extract its Allowed Pumping Allocation, Carryover, and Stored Water, if any, in addition to its permitted overextraction under Section III(B)(1), prior to accessing such Carryover Conversion.

Upon such approval, the applicant may thereafter extract such water as provided herein. A Party so extracting groundwater shall fully restore such extracted water (either through under-extraction of its rights or through importing water) during the five-year period following the Year in which the extraction under this Section occurs. Otherwise, the extracting Party shall pay to the Watermaster an amount equal to 100% of MWD’s Imported Water rate for purchase and delivery of untreated water to the Central Basin spreading facilities (which rate is presently MWD’s “Full Service Untreated Volumetric Cost, Tier 1”) whether or not such water is available that year, for the year during which is the fifth anniversary of the year during which such Carryover Conversion extraction occurs, multiplied by the amount of Carryover Conversion so extracted and not restored during such five-year period. Payment shall be made within thirty (30) days of demand by Watermaster. No Replenishment Assessment shall be due on Carryover Conversion so extracted. However, the Party must deposit with the Watermaster an amount equal to the Replenishment Assessment that would otherwise be imposed by WRD upon such extraction. If the party restores the water within the 5-year repayment period, then the Watermaster shall promptly return the deposit to the Party, without interest. If the Party does not restore the water within the 5-year repayment period, the deposit shall be credited towards the Party’s obligation to pay 100% of MWD’s Imported Water rate as required herein.

Should there be multiple requests to so extract Carryover Conversion in the same year, the Storage Panel shall allocate such extraction right such that each requesting party may extract a pro rata portion of the available Carryover Conversion for that year. No party may extract in excess of 2,500 acre feet of groundwater pursuant to this Section III(B)(8) in a single Year. Amounts paid to Watermaster hereunder shall be used by WRD solely for purchase of water for replenishment in the Basin. Watermaster, through the Storage Panel, shall give reasonable notice to the Parties of any application to so extract Carryover Conversion in such manner as the Storage Panel shall determine, including, without limitation, notice by electronic mail or by website posting, at least ten (10) days prior to consideration of any such application.

C. Exchange Pool Provisions.

(1) Definitions.

For purposes of these Exchange Pool provisions, the following words and terms have the following meanings:

(a) “Exchange Pool” is the arrangement hereinafter set forth whereby certain of the parties, (“Exchangees”) may, notwithstanding the other provisions of the Judgment, extract additional water from Central Basin to meet their needs, and certain other of the parties (“Exchangors”), reduce their extractions below their Allowed Pumping Allocations in order to permit such additional extractions by others.

(b) “Exchangor” is one who offers, voluntarily or otherwise, pursuant to subsequent provisions, to reduce its extractions below its Allowed Pumping Allocation in order to permit such additional extractions by others.

(d) “Undue hardship” means unusual and severe economic or operational hardship, other than that arising (i) by reason of any differential in quality that might exist between water extracted from Central Basin and water available for importation or (ii) by reason of any difference in cost to a party in subscribing to the Exchange Pool and reducing its extractions of water from Central Basin in an equivalent amount as opposed to extracting any such quantity itself.

(2) Parties Who May Purchase Water Through the Exchange Pool.

Any party not having existing facilities for the taking of imported water as of the beginning of any Administrative Year, and any party having such facilities as of the beginning of any Administrative Year who is unable, without undue hardship, to obtain, take, and put to beneficial use, through its distribution system or systems existing as of the beginning of the particular Administrative Year, imported water in a quantity which, when added to its Allowed Pumping Allocation for that particular Administrative Year, will meet its estimated needs for that particular Administrative Year, may purchase water from the Exchange Pool, subject to the limitations contained in this Section III(C) (Subpart “C” hereinafter).

(3) Procedure for Purchasing Exchange Pool Water.

Not later than the 40th day following the commencement of each Administrative Year, each such party desiring to purchase water from the Exchange Pool shall file with the Watermaster a request to so purchase, setting forth the amount of water in acre feet that such party estimates that it will require during the then current Administrative Year in excess of the total of:

(a) Its Allowed Pumping Allocation for that particular Administrative Year; and

(b) The imported water, if any, which it estimates it will be able, without undue hardship, to obtain, take and put to beneficial use, through its distribution system or systems existing as of the beginning of that particular Administrative Year.

Any party who as of the beginning of any Administrative Year has existing facilities for the taking of imported water and who makes a request to purchase from the Exchange Pool must provide with such request substantiating data and other proof which, together with any further data and other proof requested by the Water Rights Panel, establishes that such party is unable without undue hardship, to obtain, take and put to beneficial use through its said distribution system or systems a sufficient quantity of imported water which, when added to its said Allowed Pumping Allocation for the particular 1Administrative Year, will meet its estimated needs. As to any such party, the Water Rights Panel shall make a determination whether the party has so established such inability, which determination shall be subject to review by the court under the procedure set forth in Part II of this Judgment. Any party making a request to purchase from the Exchange Pool shall either furnish such substantiating data and other proof, or a statement that such party had no existing facilities for the taking of imported water as of the beginning of that Administrative Year, and in either event a statement of the basis for the quantity requested to be purchased.

(4) Subscriptions to Exchange Pool.

(a) Required Subscription. Each party having existing facilities for the taking of imported water as of the beginning of any Administrative Year hereby subscribed to the Exchange Pool for purposes of meeting Category (a) requests thereon, as more particularly defined in paragraph 5 of this Subpart C, twenty percent (20%) of its Allowed Pumping Allocation, or the quantity of imported water which it is able, without undue hardship, to obtain, take and put to beneficial use through its distribution system or systems existing as of the beginning of the particular Administrative Year in addition to such party’s own estimated needs for imported water during that Administrative Year, whichever is the lesser. A party’s subscription under this subparagraph (a) and subparagraph (b) of this paragraph 4 is sometimes hereinafter referred to as a “required subscription.”

(b) Report to Watermaster Water Rights Panel by Parties withConnections and Unable to Subscribe 20%. Any party having existing facilities for the taking of imported water and estimating that it will be unable, without undue hardship, in that Administrative Year to obtain, take and put to beneficial use through its distribution system or systems existing as of the beginning of that Administrative Year, sufficient imported water to further reduce its extractions from the Central Basin by twenty percent (20%) of its Allowed Pumping Allocation for purposes of providing water to the Exchange Pool must furnish not later than the 40th day following the commencement of such Administrative Year substantiating data and other proof which, together with any further data and other proof requested by the Water Rights Panel, establishes said inability or such party shall be deemed to have subscribed twenty percent (20%) of its Allowed Pumping Allocation for the purpose of providing water to the Exchange Pool. As to any such party so contending such inability, the Water Rights Panel shall make a determination whether the party has so established such inability, which determination shall be subject to review by the Court under the procedure set forth in Part II of this Judgment.

(c) Voluntary Subscriptions. Any party, whether or not having facilities for the taking of imported water, who desires to subscribe to the Exchange Pool a quantity or further quantity of its Allowed Pumping Allocation, may so notify the Water Rights Panel in writing of the quantity of such offer on or prior to the 40th day following the commencement of the particular Administrative Year. Such subscriptions are referred to hereinafter as “voluntary subscriptions.” Any Exchangor who desires that any part of its otherwise required subscription not needed to fill Category (a) requests shall be available for Category (b) requests may so notify the Water Rights Panel in writing on or prior to said 40th day. If all of that Exchangor’s otherwise required subscription is not needed in order to fill Category (a) requests, the remainder of such required subscription not so used, or such part thereof as such Exchangor may designate, shall be deemed to be a voluntary subscription.

(5) Limitations on Purchases of Exchange Pool Water and Allocation of Requests to Purchase Exchange Pool Water Among Exchangors.

(a) Categories of Requests. Two categories of Exchange Pool requests are established as follows:

(i) Category (a) requests. The quantity requested by each Exchangee, whether or not that Exchangee has an Allowed Pumping Allocation, which quantity is not in excess of 150% of its Allowed Pumping Allocation, if any, or 100 acre feet, whichever is greater. Requests or portions thereof within the above criteria are sometimes hereinafter referred to as “Category (a) requests.”

(ii) Category (b) requests. The quantity requested by each Exchangee having an Allowed Pumping Allocation to the extent the request is in excess of 150% of that Allowed Pumping Allocation or 100 acre feet, whichever is greater, and the quantity requested by each Exchangee having no Allowed Pumping Allocation to the extent the request is in excess of 100 acre feet. Portions of requests within the above criteria are sometimes hereinafter referred to as “Category (b) requests.”

(b) Filling of Category (a) Requests. All Exchange Pool subscriptions, required and voluntary, shall be available to fill Category (a) requests. Category (a) requests shall be filled first from voluntary subscriptions, and if voluntary subscriptions should be insufficient to fill all Category (a) requests required subscriptions shall be then utilized to fill Category (a) requests. All Category (a) requests shall be first filled before any Category (b) requests are filled.

(c) Filling of Category (b) Requests. To the extent that voluntary subscriptions have not been utilized in filling Category (a) requests, Category (b) requests shall be filled only out of any remaining voluntary subscriptions. Required subscriptions will then be utilized for the filling of any remaining Category (b) requests.

(d) Allocation of Requests to Subscriptions When Available Subscriptions Exceed Requests. In the event the quantity of subscriptions available for any category of requests exceeds those requests in that category, or exceeds the remainder of those requests in that category, such requests shall be filled out of such subscriptions proportionately in relation to the quantity of each subscription.

(e) Allocation of Subscriptions to Category (b) Requests in the Event of Shortage of Subscriptions. In the event available subscriptions are insufficient to meet Category (b) requests, available subscriptions shall be allocated to each request in the proportion that the particular request bears to the total requests of the particular category.

(6) Additional Voluntary Subscriptions.

If subscriptions available to meet the requests of Exchangees are insufficient to meet all requests, additional voluntary subscriptions may be solicited and received from parties by the Water Rights Panel. Such additional subscriptions shall be allocated first to Category (a) requests to the extent unfilled, and next to Category (b) requests to the extent unfilled. All allocations are to be otherwise in the same manner as earlier provided in paragraph 5 (a) through 5 (e) inclusive.

(7) Effect if Category (a) Requests Exceed Available Subscriptions, Both Required and Voluntary.

In the event that the quantity of subscriptions available to fill Category (a) requests is less than the total quantity of such requests, the Exchangees may, nonetheless, extract the full amount of their Category (a) requests otherwise approved by the Water Rights Panel as if sufficient subscriptions were available. The amounts received by the Water Rights Panel on account of that portion of the approved requests in excess of the total quantities available from Exchangors shall be paid by the Water Rights Panel to WRD in trust for the purpose of purchasing imported water and spreading the same in Central Basin for replenishment thereof. Thereafter WRD may, at any time, withdraw said funds or any part thereof so credited in trust for the aforesaid purpose, or may by the 40th day of any Administrative Year utilize all or any portion of said funds for the purchase of water available from subscriptions by Exchangors in the event the total quantity of such subscriptions exceeds the total quantity of approved requests by parties to purchase Exchange Pool water. To the extent that there is such an excess of available subscriptions over requests and to the extent that the existing credit in favor of WRD is sufficient to purchase such excess quantity at the price established for Exchange Pool purchases during that Administrative Year, the money shall be paid to the Exchangors in the same manner as if another party had made such purchase as an Exchangee. WRD shall not extract any such Exchange Pool water so purchased.

(8) Additional Pumping by Exchangees Pursuant to Exchange Pool Provisions.

An Exchangee may extract from Central Basin in addition to its Allowed Pumping Allocation for a particular Administrative Year that quantity of water which it has requested to purchase from the Exchange Pool during that Administrative Year and which has been allocated to it pursuant to the provisions of paragraphs 5, 6 and 7. The first pumping by an Exchangee in any Administrative Year shall be deemed to be pumping of the party’s allocation of Exchange Pool water.

(9) Reduction in Pumping by Exchangors.

Each Exchangor shall in each Administrative Year reduce its extractions of water from Central Basin below its Allowed Pumping Allocation for the particular year in a quantity equal to the quantity of Exchange Pool requests allocated to it pursuant to the provisions of paragraphs 4, 5, 6 and 7 of this Subpart C.

(10) Price to be Paid for Exchange Pool Water.

The price to be paid by Exchangees and to be paid to Exchangors per acre foot for required and voluntary subscriptions of Exchangors utilized to fill requests on the Exchange Pool by Exchangees shall be the dollar amount computed as follows by the Water Rights Panel for each Administrative Year. The “normal” price as of the beginning of the Administrative Year charged by Central Basin Municipal Water District (CBMWD) for treated MWD (Metropolitan Water District of Southern California) water used for domestic and municipal purposes shall be determined, and if on that date there are any change scheduled during that Administrative Year in CBMWD’s “normal” price for such category of water, the weighted daily “normal” CBMWD price shall be determined and used in lieu of the beginning such price; and there shall be deducted from such beginning or weighted price, as the case may be, the “incremental cost of pumping water in Central Basin” at the beginning of the Administrative Year and any then current rate or rates, of assessments levied on the pumping of groundwater in Central Basin by Plaintiff District and any other governmental agency. The “normal” price charged by CBMWD shall be the highest price of CBMWD for normal service excluding any surcharge or higher rate for emergency deliveries or otherwise failing to comply with CBMWD rates and regulations relating to earlier deliveries. The “incremental cost of pumping water in Central Basin” as of the beginning of the Administrative Year shall be deemed to be the Southern California Edison Company Schedule No. PA-1 rate per kilowatt-hour, including all adjustments and all uniform authorized additions to the basic rate, multiplied by 560 kilowatt-hours per acre-foot, rounded to the nearest dollar (which number of kilowatt-hours has been determined to represent the average energy consumption to pump an acre-foot of water in Central Basin). In applying said PA-1 rate the charge per kilowatt-hour under the schedule shall be employed and if there are any rate blocks then the last rate block shall be employed. Should a change occur in Edison schedule designations, the Water Rights Panel shall employ that applicable to motors used for pumping water by municipal utilities.

(11) Carry-over of Exchange Pool Purchases by Exchangees

An Exchangee who does not extract from Central Basin in a particular Administrative Year a quantity of water equal to the total of (a) its Allowed Pumping Allocation for that particular Administrative Year, reduced by any authorized amount of carryover into the next succeeding Administrative Year pursuant to the provisions of Section III(A) of this Judgment, and (b) the quantity that it purchased from the Exchange Pool for that particular Administrative Year, may carry over into the next succeeding Administrative Year the right to extract from Central Basin a quantity equal to the difference between said total and the quantity actually extracted in that Administrative Year, but not exceeding the quantity purchased from the Exchange Pool for that Administrative Year. Any such carryover shall be in addition to that provided in said Section III(A).

If the “Basinwide Average Exchange Pool Price” in the next succeeding Administrative Year exceeds the “Exchange Pool Price” in the previous Administrative Year any such Exchangee exercising such carryover rights hereinabove provided shall pay to the Watermaster, forthwith upon the determination of the “Exchange Pool Price” in said succeeding Administrative Year, and as a condition to such carryover rights, an additional amount determined by multiplying the number of acre feet of carryover by the difference in “Exchange Pool Price” as between the two Administrative Years. Such additional payment shall be miscellaneous income to the Watermaster which shall be applied by it against that share of the Watermaster’s Administrative Body’s budget to be paid by the parties to this Agreement for the second Administrative Year succeeding that in which the Exchange Pool water was so purchased. For purposes of this paragraph, the term Basinwide Average Exchange Pool Price means the average price per acre foot paid for Exchange Pool water produced within the Central Basin during the year for which such determination is to be made, taking into account all Exchange Pool transactions consummated during that year.

(12) Notification by Watermaster to Exchangors and Exchangees of Exchange Pool Requests and Allocations Thereof and Price of Exchange PoolWater.

Not later than the 65th day after the commencement of each Administrative Year, the Administrative Body of Watermaster shall determine and notify all Exchangors and Exchangees of the total of the allocated requests for Exchange Pool water and shall provide a schedule divided into categories of requests showing the quantity allocated to each Exchangee and a schedule of the allocation of the total Exchange Pool requirements among the Exchangors. Such notification shall also advise Exchangors and Exchangees of the prices to be paid to Exchangors for subscriptions utilized and the Exchange Pool Price for that Administrative Year as determined by the Water Rights Panel. The determinations of the Watermaster in this regard shall be subject to review by the Court in accordance with the procedure set forth in Part II of this Judgment.

(13) Payment by Exchangees.

Each Exchangee shall, on or prior to last day of the third month of each Administrative Year, pay to the Watermaster one-quarter of said price per acre foot multiplied by the number of acre feet of such party’s approved request and shall, on or before the last day of each of the next succeeding three months, pay a like sum to the Watermaster. Such amounts must be paid by each Exchangee regardless of whether or not it in fact extracts or uses any of the water it has requested to purchase from the Exchange Pool.

(14) Payments to Exchangors.

As soon as possible after receipt of moneys from Exchangees, the Watermaster shall remit to the Exchangors their pro rata portions of the amount so received in accordance with the provisions of paragraph 10 above.

(15) Delinquent Payments.

Any amounts not paid on or prior to any due date above shall carry interest at the rate of 1% per month or any part of a month. Any amounts required to be so paid may be enforced by the equitable powers of the Court, including, but not limited to, the injunctive process of the Court. In addition thereto, the Watermaster, as Trustee for the Exchangors and acting through the Water Rights Panel, may enforce such payment by any appropriate legal action, and shall be entitled to recover as additional damages reasonable attorneys’ fees incurred in connection therewith. If any Exchangee shall fail to make any payments required of it on or before 30 days after the last payment is due, including any accrued interest, said party shall thenceforward not be entitled to purchase water from the Exchange Pool in any succeeding Administrative Year except upon order of the Court, upon such conditions as the Court may impose.

Central Basin Basin Third Amended Judgment: IV

IV. PROVISIONS FOR THE STORAGE OF WATER AND THE EXTRACTION OF STORED WATER.

A. Adjudication of Available Dewatered Space, Storage Capacity and Storage Apportionment.

There exists within the Basin a substantial amount of available space which has not been optimally utilized for basin management and for storage of native and imported waters. The Court finds and determines that (i) there is 330,000 acre feet of Available Dewatered Space in the Basin; (ii) use of this Available Dewatered Space will increase reasonable and beneficial use of the Basin by permitting the more efficient procurement and management of Replenishment Water, conjunctive use, and for direct and in-lieu recharge, thereby increasing the prudent storage and recovery of Stored Water for later use by parties to this Judgment, conservation of water and reliability of the water supply available to all Parties; and (iii) use of the Available Dewatered Space pursuant to the terms and conditions of this Judgment will not result in Material Physical Harm.

B. Avoidance of Material Physical Harm.

It is essential that the use of the Available Dewatered Space be undertaken for the greatest public benefit pursuant to uniform, certain, and transparent regulation that encourages the conservation of water and reliability of the water supply, avoids Material Physical Harm, and promotes the reasonable and beneficial use of water. Accordingly, in the event Watermaster becomes aware of the development of a Material Physical Harm, or imminent threat of the development of a Material Physical Harm, relating to the use of the Available Dewatered Space, Watermaster shall, within thirty (30) days thereafter, notice a hearing before the Court and concurrently file a report with the Court, served on all parties, which shall explain the relevant facts then known to Watermaster relating to the Material Physical Harm, or imminent threat thereof, including without limitation, the location of the occurrence, the source or cause, existing and potential physical impacts or consequences of the identified or threatened material Physical Harm, and any recommendations to remediate the identified or threatened Material Physical Harm.

C. Apportionment of Available Dewatered Space.

To fairly balance the needs of the divergent interests of parties having water rights in the Basin, on the one hand, and the replenishment functions of WRD on the other hand, and in consideration of the shared desire and public purpose of removing impediments to the voluntary conservation, storage, exchange and transfer of water, all of the Available Dewatered Space is hereby adjudicated and apportioned into complimentary classifications of Stored Water and a Basin Operating Reserve as set forth in this Part IV. The apportionment contemplates flexible administration of storage capacity where use is apportioned among competing needs, while allowing all Available Dewatered Space to be used from time to time on a “space available” basis, subject to the priorities specified in this Judgment, and as further defined in Section IV(I) of this Judgment. The Court further finds and determines that, of the Available Dewatered Space, there is 220,000 acre-feet of storage capacity in the Central Basin which is presently available (“Adjudicated Storage Capacity”). The use of Adjudicated Storage Capacity as provided in this Judgment will not adversely affect the efficient operation of the Basin or the recharge of water necessary for the production of the parties’ respective Allowed Pumping Allocations. The apportionment of Adjudicated Storage Capacity as provided herein will allow for flexible administration of groundwater storage within the Basin. The Adjudicated Storage Capacity is hereby assigned to Individual Storage Allocations and Community Storage as provided herein, provided however that if all space in a particular classification is fully occupied then, on a “space available” basis, to available space within the other classifications of Adjudicated Storage Capacity and, only then, to available space within Basin Operating Reserve.

The Court further finds and determines that, out of the Available Dewatered Space, there is 110,000 acre feet that should be set aside for use by WRD as a Basin Operating Reserve, provided in Section IV(L), and subject to temporary occupancy by Stored Water as permitted hereunder.

No storage of water shall occur in the Basin except in conformity with this Judgment.

D. Individual Storage Allocation.

Each Party having an adjudicated groundwater extraction right hereunder shall have a priority right to store water in an Individual Storage Account, through conversion of Carryover to Stored Water as provided herein, or by any means authorized by this Judgment, up to a maximum of 50% of such party’s Allowed Pumping Allocation. The cumulative quantity of Adjudicated Storage Capacity subject to individual storage allocation is 108,750 acre-feet. In recognition of prior importation of water which was introduced into the Basin as Stored Water, and which has not yet been extracted, the Court finds and determines that, as of the date of this Order, the following Parties have occupied a portion of their respective Individual Storage Allocations and have all associated rights therein, as follows:

City of Long Beach: 13,076.8 acre-feet

City of Lakewood: 500 acre-feet

City of Downey: 500 acre-feet

City of Cerritos 500 acre-feet

E. Community Storage; Regional Disadvantaged Communities Incentive Program.

In addition to Individual Storage Allocation, a Party that has fully occupied its Individual Storage allocation may, on a first in time, first in right basis (subject to the limits expressed below) place water into storage in the “Community Storage Pool.” The cumulative quantity of Adjudicated Storage Capacity allocated to Community Storage shall be 111,250 acre-feet. So long as there is available capacity in the Community Storage Pool, any Party may store water in the Community Storage Pool through conversion of Carryover to Stored Water as provided herein, or by any other means authorized by this Judgment, provided such Party has first fully occupied that party’s available Individual Storage Allocation.

(1) Parties to this Judgment which, as of January 1, 2013, held Allowed Pumping Allocation of not greater than 5,000 acre-feet shall have a first priority right to occupy, in the aggregate, up to 10,000 acre-feet of storage space within the Central Basin Community Storage Pool, on the basis of first in time, first in right.

(2) Water stored pursuant to the Regional Disadvantaged Communities Incentive Program shall have a second priority right to occupy up to 23,000 acre-feet within the Community Storage Pool, on such terms as shall be determined by the Court.

(3) Any further storage in excess of the maximum quantity of Community Storage will be on a “space-available” interim basis. From time to time, and on a “space-available” basis, the total quantity of water available for storage is permitted to exceed Adjudicated Storage Capacity for the Community Storage Pool on an interim basis. This interim storage may occur if storage capacity exists as a result of unused Adjudicated Storage Capacity within other classifications, or available space exists in the Basin Operating Reserve. Such interim storage, however, is subject to priority rights to such Dewatered Space as provided in this Judgment. A party that seeks to convert the water temporarily held in interim storage to a more firm right, may contract for the use of another party’s Individual Storage Allocation, or may add such water to the Community Storage Pool once space therein becomes available.

(4) After a party occupies available storage capacity within the Community Storage Pool and then withdraws water from the Community Storage Pool, the storing party will be allowed a period of twenty-four (24) months to refill the evacuated storage before the capacity will be determined excess and available for use by other parties. Once the Basin’s Community Storage Pool has been filled for the first time, a party may exercise its twenty-four (24) month refill priority only once, and then only provided there is then capacity available to permit that party to refill the vacated space. Except to the extent Community Storage space may be subject to such priority right to re-fill, all space therein shall be occupied on a first in time, first in right basis.

(5) A party that has occupied storage in the Community Storage Pool for ten (10) consecutive years shall be deemed to extract its Stored Water first in subsequent years (notwithstanding the order of water production set forth in Section I(B)(3)) until its entire Community Storage account has been extracted, but thereafter may again make use of Community Storage on the same terms available to other parties on a first in time, first in right, space-available basis.

(6) Any quantity of water held in the Community Storage Pool for a term greater than ten (10) consecutive years shall be assessed an annual water loss equal to 5% of the lowest quantity of water held within the party’s Community Storage Pool account at any time during the immediately preceding ten-year period. The lowest quantity means the smallest amount of water held by the Party in the Community Storage Pool during any of the preceding ten (10) years, with a new loss calculation being undertaken every year. Water subject to the loss assessment will be deemed dedicated to the Basin Operating Reserve in furtherance of the physical solution without compensation. Water lost to the Basin shall constitute water replenished into the Central Basin for the benefit of all parties

F. Limit on Storage.

Irrespective of the category of storage utilized, each party to this Judgment may not cumulatively have in storage at any time Stored Water totaling more than two hundred percent (200%) of that party’s Allowed Pumping Allocation. Subject to the foregoing, the right to produce Stored Water may be freely transferred to another party to this Judgment, or as otherwise permitted herein.

G. Extractions of Stored Water; Exemption from Replenishment Assessment.

The Court finds and declares that the extraction of Stored Water as permitted hereunder does not constitute “production of groundwater” within the meaning of Water Code Section 60317 and that no Replenishment Assessment shall be levied on the extraction of Stored Water. WRD has stipulated to the same. This determination reflects the practical application of certain provisions of this Judgment concerning storage of water, including, without limitation, understanding the following: (1) payment of the Replenishment Assessment is required upon the conversion of Carryover Water into storage, and; (2) developed water introduced into the Basin for storage by or on behalf of a Party through spreading or injection need not be replenished by WRD and should not be subject to the Replenishment Assessment.

H. Storage Procedure.

The Administrative Body shall (i) prescribe forms and procedures for the orderly reporting of Stored Water, (ii) maintain records of all water stored in the Basin, and (iii) undertake monitoring and modeling of Stored Water as may be reasonably required. As to any Storage Projects that will require review and approval by the Storage Panel, the Administrative Body shall provide appropriate applications, and shall work with project applicants to complete the application documents for presentation to the Storage Panel. The Administrative Body shall be responsible for conducting any groundwater modeling necessary to evaluate a proposed Storage Project. The proponent of a proposed project will bear all costs associated with the review of the application for approval of the project and all costs associated with its implementation. Nothing in this Judgment shall alter the applicant(s) duty to comply with CEQA or to meet other legal requirements as to any proposed Storage Project. Within thirty (30) days after final submission of the storage application documents, the Administrative Body shall provide notice of the storage application (either by electronic mail or U.S. postal mail), together with a copy of the application documents, to all parties possessing an Allowed Pumping Allocation, and to any other person requesting notice thereof. Following notice, any necessary hearings before the Storage Panel shall be conducted as provided in Section IV(O) of this Judgment.

I. Loss of Stored Water/Relative Priority.

To balance the need to protect priority uses of storage and to encourage the full utilization of Adjudicated Storage Capacity and Basin Operating Reserve where it can be accommodated without interference with priority uses, and except as otherwise provided in this Judgment, no water held in any authorized storage account will be deemed lost from that storage account unless the cumulative quantity of water held as Stored Water plus the quantity of water held within the Basin Operating Reserve exceeds 330,000 acre-feet. Where all Adjudicated Storage Capacity and Basin Operating Reserve has been occupied, the first Stored Water to be deemed lost shall be the last water stored as Community Storage. Upon receipt of a bona fide request by another use entitled to priority hereunder, Watermaster shall issue a notice requiring the other parties to evacuate their Stored Water. Any Stored Water that is not evacuated shall be deemed dedicated to the Basin Operating Reserve in furtherance of the physical solution without compensation and accounted for accordingly.

J. Limits on Extraction.

Anything in this Judgment to the contrary notwithstanding, no party shall extract greater than 140% of the sum of (i) the party’s Allowed Pumping Allocation and (ii) the party’s leased water, except upon prior approval by the Water Rights Panel. For this purpose, a party’s total extraction right for a particular year shall include that party’s Allowed Pumping Allocation and any contractual right through lease or other means to utilize the adjudicated rights of another party. Where such proposed extraction would occur within the Central Basin Pressure Area as defined by Watermaster consistent with historical records, the Water Rights Panel shall submit such request for review by the Board of WRD. The Water Rights Panel shall not approve any request for over extraction within the Pressure Area without a written finding by the Board of WRD that such over-extraction will not cause Material Physical Harm. The role of the Board of WRD in this process shall not be read to expand or restrict WRD’s statutory authority. Consideration shall be on an expedited basis.

K. Increased Extractions in the Central Basin for Certain Water Purveyors.

(1) This Court also maintains continuing jurisdiction over the West Coast Basin, which bounds the Central Basin to the west.

(2) Certain Water Purveyors are parties to both this Amended Judgment and the judgment governing the West Coast Basin and serve communities overlying both the Central Basin and the West Coast Basin.

(3) Certain Water Purveyors may exceed their Allowed Pumping Allocation in any Administrative Year, subject to all of the following conditions:

(a) The Water Purveyor is one of the following eligible Parties:

(i) City of Los Angeles

(ii) Golden State Water Company

(iii) California Water Service Company.

(b) Increased extractions pursuant to this Section shall not exceed 5,000 acre-feet per Water Purveyor for the particular Administrative Year.

(c) Increased extractions pursuant to this Section shall not exceed the Water Purveyor’s unused “Adjudicated Rights” in the West Coast Basin.

(d) Increased extractions pursuant to this Section shall not result in Material Physical Harm.

(4) Notwithstanding the foregoing, nothing herein permits extraction of water within the Central Basin in excess of 140% of Allowed Pumping Allocation for the particular Administrative Year, except as otherwise permitted under this Judgment.

(5) Replenishment of any water extracted from the Central Basin pursuant to this Section shall occur exclusively in the Central Basin.

(6) The benefits of this Section are made available only to the certain Water Purveyors that serve communities overlying the Central Basin and communities overlying the West Basin, in recognition of the management of water resources by those Water Purveyors to serve such overlying communities. It is not made, nor is it related to, a determination of an underflow between the basins, a cost or benefit allocation, or any other factor relating to the allocation of the Replenishment Assessment.

L. Special Provisions for Temporary Storage within Community Storage Pool.

The Central Basin Municipal Water District (“CBMWD”) shall take such action as may be necessary to reduce its Allowed Pumping Allocation to five (5) acre-feet or fewer by December 31, 2018, and has agreed, by stipulation, not to acquire any additional Central Basin water rights. Upon application by CBMWD, the Storage Panel may, after making each of the findings required in this subsection, approve storage of water by CBMWD within the Community Storage Pool subject to the stated conditions. The Storage Panel may only authorize such storage after finding each of the following to be true as of the date of such approval:

(1) CBMWD (a) then owns five (5) acre-feet or fewer of Allowed Pumping Allocation, and (b) has not produced water utilizing any extraction rights it holds within the Basin but has only engaged in the sale or leasing of those rights to others.

(2) There is available space for Storage within the Community Storage

(3) CBMWD has identified a source of imported water that may be brought into the Basin and stored underground.

(4) The water identified for storage (a) is unlikely to be acquired by other parties through surface delivery for use within the Basin, and (b) was offered to WRD to purchase for replenishment purposes at the same price that CBMWD otherwise sells imported water to WRD and WRD declined to purchase said water, within a reasonable period of time.

(5) There will be no Material Physical Harm associated with the introduction of the water into storage, or its extraction, in the manner approved by the Storage Panel.

The condition expressed in Section IV(L)(1)(a) above shall not be operative until January 1, 2019, or upon reduction of CBMWD’s Allowed Pumping Allocation to five (5) acre-feet or fewer, whichever first occurs. CBMWD may not extract the Stored Water, and may instead only transfer that Stored Water to a party having extraction rights, or to WRD for replenishment purposes only. Such Stored Water not so transferred within three (3) years following its storage may be purchased by WRD, at its option, for replenishment purposes only, at a price not exceeding the actual cost incurred by CBMWD in importing and storing the water in the first instance, plus a reasonable administrative charge for overhead not exceeding five percent (5%) of the price paid by CBMWD for the water with no other fees or markups imposed by CBMWD. Except as otherwise permitted in this Section, any such Stored Water held by CBMWD for a term greater than three (3) years shall be assessed an annual water loss equal to 10% of the amount of such Stored Water at the end of each year. Water subject to the loss assessment will be deemed dedicated to the Basin Operating Reserve in furtherance of the physical solution without further compensation. The Storage Panel shall grant CBMWD one or more extensions of such term, not exceeding total extensions of three (3) additional years, following public hearing, if the Storage Panel determines that the Stored Water has been actively marketed by CBMWD for transfer to Parties on reasonable terms in the previous year. The Storage Panel may impose such additional reasonable conditions as it determines to be appropriate. Any review by the Storage Panel hereunder shall only occur at a public hearing held following at least 15 days’ (but not more than 30 days’) mailed notice to all Parties to this Judgment, at which hearing an opportunity for public comment shall be afforded in advance of any such decision. However, the Storage Panel may consider an application on shorter notice under exigent circumstances, including the potential loss of the water proposed to be stored if action is not taken sooner. CBMWD shall have the right to appeal any action or inaction by the Storage Panel to this court. The storage and extraction of Stored Water hereunder shall otherwise be subject to all other provisions of this Judgment. The court finds and declares that this subsection constitutes a “court order issued by a court having jurisdiction over the adjudication of groundwater extraction rights within the groundwater basin where storage is sought” within the meaning of Water Code §71610(b)(2)(B). Nothing in this provision impedes CBMWD’s ability to store water pursuant to a contract with an adjudicated groundwater extraction rights holder as permitted by Water Code § 71610(b)(2)(A) and otherwise in accordance with this Judgment.

M. Basin Operating Reserve.

It is in the public interest and in furtherance of the physical solution for WRD to prudently exercise its statutory discretion to purchase, spread, and inject Replenishment Water, to provide for in-lieu replenishment, and otherwise to fulfill its replenishment function within the Basin as provided in Water Code Section 60000 et. seq. Hydrologic, regulatory and economic conditions now prevailing within the State require that WRD be authorized to exercise reasonable discretion and have flexibility in the accomplishment of its replenishment function. Accordingly, WRD may pre-purchase or defer the purchase of Replenishment Water, and may otherwise purchase and manage available sources of Replenishment Water under the most favorable climatic and economic conditions as it may determine reasonable and prudent under the circumstances. It is the intent of the parties to preserve space for such replenishment activities, including capture of natural inflows during wet years, recapture of water when possible, and artificial replenishment when water is available at discounted rate, for the benefit of the Basin and the parties to the Judgment. The Basin Operating Reserve is intended to allow WRD to meet its replenishment needs to make APA available for extraction by all water rights holders. Accordingly, WRD shall have a priority right to occupy up to 110,000 acre-feet of the Available Dewatered Space as the “Basin Operating Reserve” for the acquisition and replenishment of water, or to ensure space remains available in the Basin to capture natural inflows during wet years for the benefit of the parties to the Judgment, to offset over-production. The priority right is not intended to allow WRD to sell or lease stored water, storage, or water rights. To the extent WRD does not require the use of all of such Basin Operating Reserve, that portion of the Basin Operating Reserve that is not then being used shall be available to other Parties to store water on a temporary and space available basis. No Party may use any portion of the Basin Operating Reserve for space available storage unless that Party has already maximized its allowed Storage pursuant to its Individual Storage Allocation and all available Community Storage is already in use. WRD’s failure to use any portion of its Basin Operating Reserve shall not cause forfeiture or create a limitation of its right to make use of the designated space in the future. WRD’s first priority right to this category of space shall be absolute. To the extent that there is a conflict between WRD and a third party regarding the availability of and desire to use any portion of the space available for replenishment up to the maximum limits set forth in this section, the interests of WRD will prevail. If a party other than WRD is using the Basin Operating Reserve space on a “space available” basis and a conflict develops between WRD and the storing party, the storing party will, upon notice from WRD, evacuate the Stored Water within ninety (90) days thereafter. In such event, temporary occupancy within the Basin Operating Reserve shall be first in time, first in right, and the last Party to store water shall be required to evacuate first until adequate space shall be made available within the Basin Operating Reserve to meet WRD’s needs. The storing party or parties assume all risks of waste, spill and loss regardless of the hardship. Stored Water that is not evacuated following WRD’s notice of intent to occupy the Basin Operating Reserve will be deemed dedicated to the Basin Operating Reserve in furtherance of the physical solution without compensation and accounted for accordingly. Nothing herein shall permit WRD to limit or encumber, by contract or otherwise, its right to use the Basin Operating Reserve for Replenishment purposes for any reason, or to make space therein available to any person by any means. Notwithstanding the foregoing, to the extent excess space is available, water evacuated from the Basin Operating Reserve as provided in this Section shall be deemed added to available space within the Individual Storage Allocations and Community Storage Pool, subject to the priority rights otherwise provided in this Judgment.

N. Water Augmentation.

The parties, in coordination with WRD, may undertake projects that add to the long-term reliable yield of the Basin. Innovations and improvements in practices that increase the conservation and maximization of the reasonable and beneficial use of water should be promoted. To the extent that Parties to the Judgment, in coordination with WRD, implement a project that provides additional long-term reliable water supply to the Central Basin, the annual extraction rights in the Central Basin will be increased commensurately in an amount to be determined by the Storage Panel to reflect the actual yield enhancement associated with the project. Augmented supplies of water resulting from such a project may be extracted or stored as permitted in this Judgment in the same manner as other water. Participation in any Water Rights Augmentation Project shall be voluntary. A party may elect to treat a proposed project as a Water Augmentation Project (for the purpose of seeking an increase in that party’s Allowed Pumping Allocation) or may elect to treat such a project as a Storage Project under the other provisions of this Judgment. The terms of participation in any Water Augmentation Project will be at the full discretion of the participating parties. All Water Augmentation Projects will be approved by the Storage Panel.

(1) Participating Parties.

Parties who propose a Water Augmentation Project (“Project Leads”) may do so in their absolute discretion, upon such terms as they may determine. All other parties to this Judgment will be offered an opportunity to participate in the Water Augmentation Project on condition that they share proportionally in common costs and benefits, and assume the obligation to bear exclusively the cost of any improvements that are required to accommodate their individual or particular needs. Notice shall be provided which generally describes the project and the opportunity to participate with sufficient time for deliberation and action by any of these parties who could potentially participate. Disputes over the adequacy of notice shall be referred to the Storage Panel, and then to the Court under its continuing jurisdiction. Parties who elect to participate (“Project Participants”) may do so provided they agree to offer customary written and legally binding assurances that they will bear their proportionate costs attributable to the Water Rights Augmentation Project, or provide other valuable consideration deemed sufficient by the Project Leads and the Project Participants.

(2) Determination of Additional Extraction Rights.

The amount of additional groundwater extraction as a result of a Water Augmentation project will be determined by the Storage Panel, subject to review by the Court. The determination will be based upon substantial evidence which supports the finding that the Water Augmentation project will increase the long term sustainable yield of the respective Basin by an amount at least equal to the proposed increase in extraction rights.

(3) Increase in Extraction Rights.

A party that elects to participate and pays that party’s full pro-rata share of costs associated with any Water Augmentation Project and/or reaches an agreement with other participants based upon other valuable consideration acceptable to the Project Leads and Project Participants, will receive a commensurate increase in extraction rights. Non-participating parties will not receive an increase or a decrease in extraction rights. Any party that elects not to participate will not be required to pay any of the costs attributable to the particular Water Augmentation Project, whether directly or indirectly as a component of the WRD Replenishment Assessment.

(4) Nominal Fluctuations.

Because water made available for Water Rights Augmentation will be produced annually, fluctuations in groundwater levels will be temporary, nominal and managed within the Basin Operating Reserve.

(5) Availability of New Water.

The amount of additional groundwater extraction established as a result of a Water Augmentation Project shall be equal to the quantity of new water in the Basin that is attributable to that Water Augmentation Project. No extraction shall occur and no extraction right shall be established until new water has been actually introduced into the Basin as a result of the Project. Any approval for a Water Augmentation Project shall include provisions (a) requiring regular monitoring to determine the actual amount of such new water made available, (b) requiring make-up water or equivalent payment therefor to the extent that actual water supply augmentation does not meet projections, and (c) adjusting extraction rights attributable to the Water Augmentation Project to match the actual water created. The right to extract augmented water from the Basin resulting from a party’s participation in a Water Augmentation Project shall be accounted for separately and shall not be added to a party’s Allowed Pumping Allocation. No Replenishment Assessment shall be levied against the extraction of augmented water.

(6) Limitation.

Notwithstanding the foregoing, WRD will not obtain any water rights or extraction rights under this Judgment by virtue of its participation in a Water Augmentation Project. If WRD participates in a Water Rights Augmentation Project through funding or other investments, its allocation of new water from the project shall be used to offset its replenishment responsibilities.

O. Limits on Watermaster Review.

It shall not be necessary for Watermaster, or any constituent body thereof, to review or approve any of the following before the affected Party may proceed: (i) exercise of adjudicated water rights consistent with this Judgment, except for extraction above 140% of a Party’s extraction right as set out in Section IV(J) of this Judgment; (ii) replenishment of the Basin with Replenishment Water by WRD consistent with Water Code Section 60000 et seq., including replenishment of water produced by water rights holders through the exercise of adjudicated water rights; (iii) WRD’s operations within the Basin Operating Reserve; (iv) Carryover Conversion or other means of the filling of the Individual Storage Accounts and the Community Storage Pool, as provided in this Judgment, as long as existing water production, spreading, or injection facilities are used; and (v) individual transfers of the right to produce Stored Water as permitted in Section IV(F). All other Storage Projects and all Water Augmentation Projects shall be subject to review and approval as provided herein, including (i) material variances to substantive criteria governing projects exempt from the review and approval process, (ii) modifications to previously approved Storage Projects and agreements, (iii) a party’s proposal for Carryover Conversion in quantities greater than the express apportionment of Adjudicated Storage Capacity on a non-priority, space-available, interim basis, and (iv) Storage, by means other than Carryover Conversion, when new production, spreading, or injection facilities are proposed to be utilized.

P. Hearing Process For Watermaster Review.

The following procedures shall be followed by Watermaster where Watermaster review of storage or extraction of Stored Water is required or permitted under this Judgment:

(1) No later than thirty (30) days after notice has been issued for the storage application, the matter shall be set for hearings before the Storage Panel. A staff report shall be submitted by WRD staff in conjunction with the completed storage application documents and the Water Rights Panel may prepare an independent staff report, if it elects to do so.

(2) The Board of WRD and the Water Rights Panel (sitting jointly as the Storage Panel) shall conduct a joint hearing concerning the storage application.

(3) All Watermaster meetings shall be conducted in the manner prescribed by the applicable Rules and Regulations. The Rules shall provide that all meetings of Watermaster shall be open to water rights holders and that reasonable notice shall be given of all meetings.

(4) The Board of WRD and the Water Rights Panel shall each adopt written findings explaining its decision on the proposed Storage Project, although if both entities reach the same decision on the Storage Project, they shall work together to adopt a uniform set of findings.

(5) Unless both the Board of WRD and the Water Rights Panel approve the Storage Project, the Storage Project application shall be deemed denied (a “Project Denial”). If both the Board of WRD and the Water Rights Panel approve the Storage Project, the Storage Project shall be deemed approved (a “Project Approval”).

Q. Trial Court Review

(1) The applicant may seek the Storage Panel’s reconsideration of a Project Denial. However, there shall be no process for mandatory reconsideration or mediation of a Project Approval or a Project Denial either before the Administrative Body, or before the Water Rights Panel.

(2) Any Party may file an appeal from a Project Approval or Project Denial with this Court, as further described in Section II(F).

(3) In order to (a) promote the full presentation of all relevant evidence before the Storage Panel in connection with its consideration of any proposed Storage Project, (b) achieve an expeditious resolution of any appeal to the Court, and (c) accord the appropriate amount of deference to the expertise of the Storage Panel, the appeal before the Court shall be based solely on the administrative record, subject only to the limited exception in California Code of Civil Procedure section 1094.5(e).

(4) If both the WRD Board and the Water Rights Panel each vote to deny or approve a proposed Storage Project, it shall be an action by the Storage Panel and that decision shall be accorded by the Court deference according to the substantial evidence test. If one of the reviewing bodies votes to approve the proposed Storage Project and the other reviewing body votes to deny the proposed storage project, then the Court’s review shall be de novo, although still restricted to the administrative record. In the case of any de novo Trial Court review, the findings made by the respective Watermaster bodies shall not be accorded any weight independent of the evidence supporting them.

R. Space Available Storage, Relative Priority, and Dedication of “Spilled” Water.

To balance the need to protect priority uses of storage and to encourage the full utilization of Available Dewatered Space within the Adjudicated Storage Capacity and the Basin Operating Reserve, any Party may make interim, temporary use of then currently unused Available Dewatered Space within any category of Adjudicated Storage Capacity, and then if all Adjudicated Storage Capacity is being fully used for Stored Water within the Basin Operating Reserve (“Space-Available Storage”), subject to the following criteria:

(1) Any Party may engage in Space-Available Storage without prior approval from Watermaster provided that the storing Party or Parties shall assume all risks of waste, spill, and loss regardless of the hardship. Whenever the Storage Panel determines that a Party is making use of excess Available Dewatered Space for Space-Available Storage, the Storage Panel shall issue written notice to the Party informing them of the risk of spill and loss.

(2) Whenever the Available Dewatered Space is needed to accommodate the priority use within a respective category of Adjudicated Storage Capacity, or WRD seeks to make use of its priority right to the Basin Operating Reserve to fulfill its replenishment function, the Storage Panel shall issue a notice to evacuate the respective category of Adjudicated Storage Capacity or Basin Operating Reserve, as applicable, within the time-periods set forth within this Amended Judgment. To the extent the Stored Water is not timely evacuated such Stored Water will be placed into any other excess Available Dewatered Space, first within the Adjudicated Storage Capacity, if available, and then if all Adjudicated Storage Capacity is being fully used for Stored Water within the Basin Operating Reserve. If no excess Available Dewatered Space is available within the Basin Operating Reserve, then the Stored Water shall be deemed spilled and will be deemed dedicated to the Basin Operating Reserve in furtherance of the physical solution without compensation and accounted for accordingly. A Party that seeks to convert the Stored Water temporarily held in interim storage as Space-Available Storage to a more firm right, may in its discretion, contract for the use of another Party’s Individual Storage Allocation, or may add such water to the Community Storage Pool once space therein becomes available.

(3) No Stored Water will be deemed abandoned unless the cumulative quantity of water held as Stored Water plus the quantity of water held in the Basin Operating Reserve exceeds 330,000 (three hundred and thirty thousand) acre-feet in the Central Basin.

Central Basin Basin Third Amended Judgment: V

V. CONTINUING JURISDICTION OF THE COURT.

The Court hereby reserves continuing jurisdiction and upon application of any interested party, or upon its own motion, may review and redetermine the following matters and any matters incident thereto:

A. Its determination of the permissible level of extractions from Central Basin in relation to achieving a balanced basin and an economic utilization of Central Basin for groundwater storage, taking into account any then anticipated artificial replenishment of Central Basin by governmental agencies for the purpose of alleviating what would otherwise be annual overdrafts upon Central Basin and all other relevant factors.

B. Whether in accordance with applicable law any party has lost all or any portion of his rights to extract groundwater from Central Basin and, if so, to ratably adjust the Allowed Pumping Allocations of the other parties and ratably thereto any remaining Allowed Pumping Allocation of such party.

C. To remove any Watermaster or constituent body appointed from time to time and appoint a new Watermaster; and to review and revise the duties, powers and responsibilities of the Watermaster or its constituent bodies and to make such other and further provisions and orders of the Court that may be necessary or desirable for the adequate administration and enforcement of the Judgment.

D. To revise the price to be paid by Exchangees and to Exchangors for Exchange Pool purchases and subscriptions.

E. In case of emergency or necessity, to permit extractions from Central Basin for such periods as the Court may determine: (i) ratably in excess of the Allowed Pumping Allocations of the parties; or (ii) on a non-ratable basis by certain parties if either compensation or other equitable adjustment for the benefit of the other parties is provided. Such overextractions may be permitted not only for emergency and necessity arising within Central Basin area, but to assist the remainder of the areas within The Metropolitan Water District of Southern California in the event of temporary shortage or threatened temporary shortage of its imported water supply, or temporary inability to deliver the same throughout its area, but only if the court is reasonably satisfied that no party will be irreparably damaged thereby. Increased energy cost for pumping shall not be deemed irreparable damage. Provided, however, that the provisions of this subparagraph will apply only if the temporary shortage, threatened temporary shortage, or temporary inability to deliver was either not reasonably avoidable by the Metropolitan Water District, or if reasonably avoidable, good reason existed for not taking the steps necessary to avoid it.

F. To review actions of the Watermaster.

G. To assist the remainder of the areas within The Metropolitan Water District of Southern California within the parameter set forth in subparagraph (e) above.

H. To provide for such other matters as are not contemplated by the Judgment and which might occur in the future, and which if not provided for would defeat any or all of the purposes of this Judgment to assure a balanced Central Basin subject to the requirements of Central Basin Area for water required for its needs, growth and development.

The exercise of such continuing jurisdiction shall be after 30 days’ notice to the parties, with the exception of the exercise of such continuing jurisdiction in relation to subparagraphs E and G above, which may be ex parte, in which event the matter shall be forthwith reviewed either upon the Court’s own motion or the motion of any party upon which 30 days’ notice shall be so given. Within ten (10) days of obtaining any ex parte order, the party so obtaining the same shall mail notice thereof to the other parties. If any other party desires Court review thereof, the party obtaining the ex parte order shall bear the reasonable expenses of mailing notice of the proceedings, or may in lieu thereof undertake the mailing. Any contrary or modified decision upon such review shall not prejudice any party who relied on said ex parte order.

Central Basin Basin Third Amended Judgment: VI

VI. GENERAL PROVISIONS.

A. Judgment Constitutes Inter Se Adjudication.

This Judgment constitutes an inter se adjudication of the respective rights of all parties, except as may be otherwise specifically indicated in the listing of the water rights of the parties of this Judgment, or in Appendix “2” hereof. All parties to this Judgment retain all rights not specifically determined herein, including any right, by common law or otherwise, to seek compensation for damages arising out of any act or omission of any person. This Judgment constitutes a “court order” within the meaning of Water Code Section 71610(B)(2)(b).

B. Assignment, Transfer, Etc., of Rights.

Subject to the other provision of this Judgment, and any rules and regulations of the Watermaster requiring reports relative thereto, nothing herein contained shall be deemed to prevent any party hereto from assigning, transferring, licensing or leasing all or any portion of such water rights as it may have with the same force and effect as would otherwise be permissible under applicable rules of law as exist from time to time.

C. Service Upon and Delivery to Parties of Various Papers.

Service of the Judgment on those parties who have executed that certain Stipulation and Agreement for Judgment or who have filed a notice of election to be bound by the Exchange Pool provisions shall be made by first class mail, postage prepaid, addressed to the designee and at the address designated for that purpose in the executed and filed Counterpart of the Stipulation and Agreement for Judgment or in the executed and filed “Notice of Election to be Bound by Exchange Pool Provisions,” as the case may be, or in any substitute designation filed with the Court.

Each party who has not heretofore made such a designation shall, within 30 days after the Judgment shall have been served upon that party, file with the Court, with proof of service of a copy upon the Watermaster, a written designation of the person to whom and the address at which all future notices, determinations, requests, demands, objections, reports and other papers and processes to be served upon that party or delivered to that party are to be so served or delivered.

A later substitute designation filed and served in the same manner by any party shall be effective from the date of filing as to the then future notices, determinations, requests, demands, objections, reports and other papers and processes to be served upon or delivered to that party.

Delivery to or service upon any party by the Watermaster, by any other party, or by the Court, or any item required to be served upon or delivered to a party under or pursuant to the Judgment may be by deposit in the mail, first class, postage prepaid, addressed to the designee and at the address in the latest designation filed by that party.

D. Judgment Does Not Affect Rights, Powers, Etc., of Plaintiff District.

Nothing herein constitutes a determination or adjudication which shall foreclose Plaintiff District from exercising such rights, powers, privileges and prerogatives as it may now have or may hereafter have by reason of provisions of law.

E. Continuation of Order under Interim Agreement.

The order of Court made pursuant to the “Stipulation and Interim Agreement and Petition for Order” shall remain in effect through the Administrative Year in which this Judgment shall become final (subject to the reserved jurisdiction of the Court).

F. Effect of Extractions by Exchangees; Reductions in Extractions.

With regard to Exchange Pool purchases, the first extractions by each Exchangee shall be deemed the extractions of the quantities of water which that party is entitled to extract pursuant to his allocation from the Exchange Pool for that Administrative Year.

Each Exchangee shall be deemed to have pumped his Exchange Pool request so allocated for and on behalf of each Exchangor in proportion to each Exchangor’s subscription to the Exchange Pool which is utilized to meet Exchange Pool requests. No Exchangor shall ever be deemed to have relinquished or lost any of its rights determined in this Judgment by reason of allocated subscriptions to the Exchange Pool. Each Exchangee shall be responsible as between Exchangors and that Exchangee, for any tax or assessment upon the production of groundwater levied for replenishment purposes by WRD or by any other governmental agency with respect to water extracted by such Exchangee by reason of Exchange Pool allocations and purchases. No Exchangor or Exchangee shall acquire any additional rights, with respect to any party to this action, to extract waters from Central Basin pursuant to Water Code Section 1005.1 by reason of the obligations pursuant to and the operation of the Exchange Pool.

G. Judgment Binding on Successors, Etc.

This Judgment and all provisions thereof are applicable to and binding upon not only the parties to this action, but as well to their respective heirs, executors, administrators, successors, assigns, lessees, licensees and to the agents, employees and attorneys in fact of any such persons.

H. Costs.

No party shall recover its costs herein as against any other party.

I. Intervention of Successors in Interest and New Parties.

Any person who is not a party (including but not limited to successors or parties who are bound by this Judgment) and who proposes to produce water from the Basin, store water in the Basin, or exercise water rights of a predecessor may seek to become a party to this Judgment through a Stipulation in Intervention entered into with the Plaintiff. Plaintiff may execute said Stipulation on behalf of the other parties herein, but such Stipulation shall not preclude a party from opposing such intervention at the time of the court hearing thereon. Said Stipulation for Intervention must thereupon be filed with the Court, which will consider an order confirming said intervention following thirty (30) days’ notice to the parties. Thereafter, if approved by the Court, such intervenor shall be a party bound by this Judgment and entitled to the rights and privileges accorded under the physical solution herein.

J. Effect of this Amended Judgment on Orders Filed Herein.

This Third Amended Judgment shall not abrogate such rights of additional carryover of unused water rights as may otherwise exist pursuant to orders herein filed June 2, 1977 and September 29, 1977.

Production	Amount
Total Production	0.00
Storage Withdraws	-0.00
Net Production (Used to calculate next year's OYC)	0.00

Account	Amount
Total Put Into Storage	0.00
Total Individual Storage	0.00
Total Community Storage	0.00
Total Storage	0.00