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. 

(c) “Exchangee” is one who requests permission to extract additional water from Central Basin. 

(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.