7.2  Delivery and Acceptance of Treated Water

From the Provisional Operations Start Date until the Termination Date, the Company shall treat and convert the Raw Water into Treated Water and sell and deliver the Treated Water to the Agency at the Delivery Point in the quantities determined in accordance with Section 7.3 (Quantity of Treated Water Supplied) and with the qualities prescribed in Schedule G (Treated Water Specifications). The Treated Water delivered to the Agency shall be measured in accordance with Schedule J (Metering and Measurement Procedures). The Agency shall accept and pay for the Treated Water in accordance with Section 8 (Payment).

If due to its fault or negligence, the Company fails to supply the Treated Water conforming to the quantity and quality required in this Agreement, the Agency shall be entitled to impose a penalty provided for in Section 8.2 (Calculation of Payment) and Schedule L (Tariff) and may enforce payment through the Operating Security if the Company is unable to pay the penalty when due.