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Cascade's conservation management plan may be required to assume a disproportionate <br />reduction in water supply or to pay penalty charges, or both. <br />Section 7.3 Shortages and Emergency. <br />Section 7.3.1 Shortages. Members must respond to water shortages in a <br />collective, shared fashion under a Cascade shortage management plan adopted by the Board. <br />Resources must be shared in a manner that reduces the risk of severe shortages to each <br />Member. Cascade's shortage management plan may include without limitation, a definition <br />and classification of shortages, a shortage contingency plan including mandatory <br />programmatic actions among all Members in the event of shortages, allocation of authority for <br />determining and responding to shortages, and a communications and outreach program for the <br />public. Members shall not be required to implement Cascade's shortage management plan in <br />areas not served by the Supply System. <br />In the event of shortages, Cascade shall reduce or halt Interruptible Supply before <br />invoking the Shortage Management Plan with respect to all Members with a Full Supply <br />Commitment. However, the Board may, by 65% Dual Majority Vote, continue service in the <br />amounts it deems appropriate to one or more Members receiving Interruptible Supply. <br />The Board may require that Members failing to comply with mandatory shortage <br />management programs implemented under Cascade's shortage management plan assume a <br />disproportionate reduction in supply or pay penalty charges, or both. <br />In the event of a Cascade -wide water shortage, Members with Independent Supply <br />may, without penalty, decline to participate in the shortage management program for that <br />shortage by foregoing all supply from Cascade for the duration of the emergency or shortage. <br />Cascade Interlocal Contract -29- <br />Amended and Restated <br />October 26, 2011 <br />