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4 <br /> omission by the District or by any of its officers, employees or agents, or any act <br /> wholly outside the control of the City. <br /> 4. The City will continue to cooperate with the District with respect to the operation <br /> of the Project consistent with the requirements of the 1960 and 1981 Agreements <br /> between the parties, as amended in this Supplemental Agreement or thereafter, <br /> and consistent with the priority for the requirements of the City's water supply <br /> system over the requirements for power generation purposes as expressed in those <br /> Agreements or any amendments to those Agreements.The City will cooperate in <br /> and support the District's pending application for a new FERC license for the <br /> Project, any future applications for FERC relicensing, and any other licensing, <br /> regulatory or judicial process required for the Project;provided,that the City <br /> reserves the right to intervene solely for the purpose of protecting the interests of <br /> the City's water supply system in any future FERC licensing processes or in any <br /> other licensing or regulatory processes required for the Project;and provided <br /> further,that the City will not support any other intervenor or stakeholder interests, <br /> demands, study requests or changes,or proposed license conditions, including but <br /> not limited to those of the participating tribes, unless such interests,demands, <br /> study requests or changes, or proposed license conditions coincide with the City's <br /> objective to protect its interests in the water supply system. <br /> 5. The 1960 Agreement shall be amended to strike Article VIII, Section 4 in its <br /> entirety, and the 1981 Agreement shall be amended to strike Article VIII, <br /> Section 4 in its entirety by execution of the"Addendum"attached and appended <br /> as Exhibit 1 to this Supplemental Agreement. <br /> B. OPERATION AND MAINTENANCE COSTS <br /> 1. The City and the District have a joint obligation for the payment of certain <br /> operation and maintenance costs pursuant to Article IV, Section 2 of the 1960 <br /> Agreement between the parties. For all such prior costs incurred through the <br /> period concluding June 30,2006, the City agrees to pay the nonrefundable <br /> amount of($829,043.04)within 30 days of mutual execution of this Supplemental <br /> Agreement as approved by the City Council and the Board of Commissioners <br /> ("Execution Date"). The City's agreement to pay is subject to the City's right to <br /> audit the District's files related to these expenses.This payment shall constitute <br /> payment in full of the City's share of the costs for operation and maintenance in <br /> accordance with Article IV, Section 2, of the 1960 Agreement through and <br /> including June 2006. <br /> 2. Thereafter, from July 1, 2006,pursuant to the provisions of Article IV, Section 2, <br /> • <br /> of the 1960 Agreement,the City and the District have a continuing joint <br /> obligation for the payment of certain operation and maintenance costs.The City's <br /> share of such costs shall be paid within 30 days of the District's quarterly billing, <br /> subject to the City's right to audit those expenses.The first quarterly billing after <br /> the execution of this Supplemental Agreement shall include the City's share of <br /> such costs from July 1, 2006. The District agrees to promptly make all necessary <br /> 3 <br />