Determination of Charge Per Acre-Foot Clause Samples
The 'Determination of Charge Per Acre-Foot' clause defines how the cost for each acre-foot of water delivered or used is calculated under an agreement. Typically, this clause outlines the formula or method for setting the price, which may involve factors such as operational costs, market rates, or regulatory guidelines. For example, it might specify that the charge is reviewed annually and adjusted based on changes in maintenance expenses or water availability. The core function of this clause is to ensure transparency and predictability in pricing, thereby preventing disputes and providing both parties with a clear understanding of their financial obligations.
Determination of Charge Per Acre-Foot. There shall be computed for each calendar year for each aqueduct reach of the Project Transportation Facilities a charge per acre-foot of water which will return to the State the total projected variable operation, maintenance and power costs of the reach for such calendar year. This computation shall be made by dividing such total by the number of acre-feet of Project Water estimated to be delivered from or through the reach to all Contractors during the year.