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WHEREAS, under Section 1.11(d)(2) of the EAA Act, the EAA has the authority to enter into contracts; and WHEREAS, it is in the public interest that the EAA and Transferor implement the Conservation Program by entering into this Contract; and WHEREAS, the EAA is authorized by Section 1.22 of the EAA Act to administer a Groundwater Trust for certain purposes; and WHEREAS, the EAA has implemented said Section 1.22 at Subchapter N of its rules and established a Groundwater Trust; and WHEREAS, Transferor desires to transfer into the Groundwater Trust 300 AF /yr of Permit No. P100 -828 as set out in Paragraph 4.0(a) an initial commitment of groundwater to the Conservation Program under the terms and conditions of this Contract; and WHEREAS, this Contract is entered into by the parties in order to achieve the initial objectives of the Conservation Program as set forth in Section 5.1.3.3 of the HCP; and WHEREAS, it is in the public interest that the EAA authorize and accept this transfer into the Groundwater Trust. NOW THEREFORE, for the mutual consideration expressed in this Contract, the Parties agree as follows: 1.0 Definitions As used in this Contract, the following terms shall have the following meanings: 1.1 "Board" means the Board of Directors of the EAA. 1.2 "Conserved Water" means the amount of Permitted Edwards Groundwater Rights, or groundwater from Exempt Wells, that has been physically reserved in the Aquifer during a calendar year for springflow protection as a result of the implementation of conservation services, techniques, or measures identified in Section 5.1.3.2 of the HCP as part of the Conservation Program as determined by order of the Board after consultation with the Regional Conservation Monitoring Committee. 1.3 "Edwards Aquifer" or "Edwards" or "Aquifer" means the Southern (or San Antonio) Segment of the Edwards Aquifer as defined in Section 1.03(1) of the EAA Act within the boundaries of the EAA. 1.4 "Exempt Well" means a well meeting the requirements of Section 711.20 of the EAA's rules.