Annual Volumes. By December 15th of each year, PEF shall notify Tejon of the quantity of Annual Volume and Additional Supply, as applicable, to be delivered to Pastoria and to Groundwater Storage for the following calendar year and the anticipated monthly and daily delivery schedule (“Annual Volume Scheduling Notice”). The Annual Volume Scheduling Notice shall constitute an irrevocable commitment to purchase from Tejon the Annual Volume and Additional Supply (if any) in the quantities set forth therein.

Groundwater Storage Scheduling. By September 1 of each year, PEF may elect to store in Groundwater Storage any amount of the Annual Volume or Additional Supply purchased for that particular year that has not been delivered to Pastoria. By way of example, if PEF committed in its Annual Volume Scheduling Notice to purchase 2,800 AF of Tejon Water and, as of September 1, 2,000 AF had been delivered to Pastoria, PEF could schedule storage of up to 800 AF in Groundwater Storage.

Commencing January 1, 2016, PEF may purchase from Tejon a minimum of 0 acre-feet (“AF”) per calendar year (“AF/A”) and maximum of 2,000 AF/A of Tejon Water, with daily and monthly volumes delivered to Pastoria as scheduled pursuant to this Agreement (“Annual Volume”). The election to purchase any specific quantity of Annual Volume shall be made by PEF in its Annual Volume Scheduling Notice submitted accordance with Section 5.1 below.