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<br />3'1H' <br /> <br /> <br />4.2.3. Under the terms of this Contract, the Medina District and the Uvalde <br />District shall not be obligated to pay production fees for water use from <br />the Aquifer up to their Aquifer Management Guideline, .as defined <br />hereinafter in Section 4.9 as being 120,000 acre feet for the Medina <br />District and 160,000 acre feet for the Uvalde District on a per annum <br />basis. <br /> <br />4.2.4. Upon receiving legislative authorization, the Edwards District will assess <br />a reasonable base fee per acre-foot for water use from zero acre-feet to <br />the total acre-feet designated as its Aquifer Management Guideline, as <br />defined in Section 4.9 as being a cumulative total of 370,000 acre feet for <br />the Edwards District, with 325,000 acre feet for all of Bexar County, <br />30,000 acre feet for Comal County, 15,000 acre feet for Hays County on <br />a per annum basis. Fees for water use in excess of the Edwards District's <br />Aquifer Management Guideline will be set on a progressive rate schedule. <br />. The Edwards District may also assess fees on a progressive rate schedule <br />. when its conditions warrant. <br /> <br /> <br />4.3. Production Surchar~e Fees.. The Parties may seek legislative authority to <br />individually decide to levy and collect production surcharge fees for different <br />types of users and uses in times of drought, or other appropriate condition, to <br />finance water supply enhancements, and to distribute produc~ion reductions <br />equitably and cost-effectively among Aquifer users. <br /> <br />4.4. Transport and Export Fees.. Both transport and export fees may be imposed at <br />the discretion of each Party pursuant to Sections 5.11 and 5.12 of this Contract. <br /> <br />4.5. General Obli~ation Bonds and Revenue Bonds. The Parties agree to consider the <br />issuance of general obligation and/or revenue bonds pursuant to their statutory <br />requirements, in order to finance projects to implement this Contract. <br /> <br />, <br />4.6. Makin~ Loans and Grants. The Parties may seek legislative authority to make <br />loans and/or grants to water users within their respective districts in order to <br />implement goals consistent with this Contract. <br /> <br />4.7. Receivin~ Loans and Grants. The parties may currently receive loans and grants <br />under their enabling statutes. <br /> <br />-r <br />4.8. Research Costs. The Parties agree to voluntarily contribute to research projects <br />relating to the hydrology, geology, meteorology and other scientific <br />characteristics and dynamics of the hydrological systems found in the Aquifer. <br />A Party's voluntary contribution toward such research projects will be based upon <br />that Party's expected benefits. <br /> <br />- 4 - <br /> <br />