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13 <br /> DRAFT— August 21, 2009 <br /> THIRD SUPPLEMENTAL AGREEMENT <br /> BETWEEN PUBLIC UTILITY DISTRICT NO. 1 OF SNOHOMISH COUNTY <br /> AND THE CITY OF EVERETT <br /> THIS THIRD SUPPLEMENTAL AGREEMENT (the"Third Supplemental Agreement") <br /> is made and entered into this day of , 2009, by and between PUBLIC <br /> UTILITY DISTRICT NO.1 OF SNOHOMISH COUNTY (the `District") and the CITY <br /> OF EVERETT, a Washington municipal corporation (the "City"). <br /> WHEREAS, <br /> A. The City and the District previously entered into an Agreement for multipurpose <br /> development of the Sultan River dated July 21, 1960 (the `1960 Agreement"); an <br /> Amended Agreement dated November 17, 1981 (the "1981 Amended <br /> Agreement''); a Supplemental Agreement dated October 17, 2007 (the <br /> `Supplemental Agreement"); and a Second Supplemental Agreement dated March <br /> 21, 2008 (the"Second Supplemental Agreement"). <br /> B. The 50-year license issued by the Federal Power Commission in 1961 for the <br /> Sultan Project, now referred to as the Henry M. Jackson Hydroelectric Project No. <br /> 2157 (the"Project"), will expire in May 2011, and a new license must be obtained <br /> for the Project from the Federal Energy Regulatory Commission (the <br /> "Commission" or"FERC"). <br /> C. On May 29, 2009, the District filed with the Commission a complete and final <br /> application("License Application") for a new FERC license to continue operating <br /> the Project ("New License"). <br /> D_ The District engaged and collaborated with interested parties through settlement <br /> negotiations in the relicensing process_ These negotiations resulted in the Jackson <br /> Hydroelectric Project Settlement Agreement ("FERC Settlement Agreement") <br /> which will be executed on and made and entered into pursuant to FERC <br /> Rule 602, 18 C.F.R. § 385.602,by and among the District; the City; the Tulalip <br /> Tribes; National Marine Fisheries Service ("NMFS"); United States Department <br /> of Agriculture Forest Service("FS"); United States Department of the Interior <br /> Fish and Wildlife Service ("FWS"); United States Department of the Interior <br /> Bureau of Indian Affairs ("BIA"); National Park Service ("NPS"); Washington <br /> Department of Fish and Wildlife; Washington Department of Ecology <br /> ("WDOE"); American Whitewater; and the City of Sultan. <br /> E. The FERC Settlement Agreement includes Proposed License Articles. Proposed <br /> License Articles are the terms and conditions set forth in Appendix 1 of the FERC <br /> Settlement Agreement that the FERC Settlement Agreement Parties will request <br /> FERC include, without Material Modification (as that term is defined in the <br /> FERC Settlement Agreement), in the New License. <br /> 98 <br />