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(2). The Government assumes no responsibility for <br />deviations from estimated rates of sedimentation, or the <br />distribution thereof. Such deviations may cause unequal <br />distribution of sediment reserve storage greater than <br />estimated, and/or encroachment on the total storage at the <br />Project. <br />ITEM 2: Article 5, as amended by Supplemental Agreement No. <br />1, is deleted in its entirety and the following substituted <br />therefore: <br />"ARTICLE 5- PAYMENTS. In consideration of the right to <br />utilize the aforesaid storage space in the Project for <br />municipal and industrial water supply purposes, the City <br />shall pay the following sums to the Government: <br />a. Project First Cost. <br />In accordance with Section 3152 of the Water Resources <br />Development Act of 2007 (wRDA 2007), the Secretary of the <br />Army is directed to accept payment from the City and the <br />City shall repay to the Government in a lump sum payment a <br />total of $3,461,432 which reflects payment in full of <br />monies owed to the United States for 100 percent of the <br />total storage space in the Project between elevations 451.0 <br />and 415.0 above National Geodetic Vertical Datum, which <br />total storage space is estimated to contain 109,600 acre- <br />feet of water supply storage space in Pat Mayse Lake, <br />Texas, after adjustments for sediment deposits under water <br />storage contract DA-34-066-CIVENG-65-1272. The payment <br />shall be due and payable within 30 days after the City is <br />notified by the District Engineer of approval of this <br />Supplemental Agreement. A copy of Section 3152 of WRDA 07 <br />is attached to and made a part of this supplemental <br />agreement as Exhibit E. <br />b. Repair, Rehabilitation, and Replacement (RR&R) <br />Costs. The City will be required to pay 10.526 percent of <br />the cost of joint-use RR&R of Project features. Payment of <br />these costs shall be made either incrementally during <br />construction or in lump sum (including interest during <br />construction at the rate as determined in Section 932 of <br />the Water Resources Development Act of 1986) upon <br />completion of construction. <br />c. Annual Operation and Maintenance (O&M) Expense. <br />The City will be required to pay 23.659 percent of the <br />4 <br />