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Intel

Final Project Agreement -- Terms and Conditions of the FPA (cont.)

  1. WATER USE

     Intel's Ocotillo Site will comply with federal and local requirements relating to the pretreatment and discharge of wastewater. These requirements are set forth in the industrial user permit. The Company has incorporated reporting requirements related to the wastewater pretreatment permit's requirements into the integrated reporting form for the Ocotillo Site (see Section II(G)). In addition, as part of this FPA, Intel will undertake certain water use activities to minimize the Company's use of fresh water, and to maximize the beneficial reuse of treated water, as explained below.

    1. Reuse Of Treated City Water
      • Intel commits to use treated City water for consumptive uses of cooling tower makeup and landscaping at the Ocotillo Site.
      Intel commits to purchase treated water from the City of Chandler-Ocotillo Wastewater Reclamation Facility for the consumptive uses of cooling tower makeup and landscaping at Intel's Ocotillo Site. The blowdown from the cooling towers will be discharged to the sewer line which flows to the City of Chandler-Ocotillo Wastewater Reclamation Facility. The Company will account for the percentage by volume of treated water utilized for these purposes in the consolidated progress reports issued quarterly (see Section II(G)).

    2. Reinjection Of Treated Water
      • Intel commits to the treatment of manufacturing effluent for reuse or for reinjection into the ground water supply.
      Because high quality water is needed for Intel's core manufacturing uses, Intel also commits to purchase fresh water from the City of Chandler for its semiconductor operations. The Company commits to arrange for treatment of the manufacturing effluent that may be reused or, alternatively, reinjected by the City of Chandler into ground water to replenish the aquifer. The Company will account for the percentage by volume of water utilized for these purposes in the consolidated reports issued quarterly (see Section II(G)).

    3. Overall Water Recycling Commitment

      Based on the undertakings identified in paragraphs 1 and 2 above, Intel commits to the following overall recycling of water, either through the direct use of treated effluent water (Paragraph 1) or through the treatment of manufacturing effluent for reuse or for reinjection into ground water supplies (Paragraph 2):

      • Intel commits to use treated effluent water in the semiconductor manufacturing operations for cooling tower makeup and landscaping at the Ocotillo Site. The Company's goal is to achieve 100% use of treated water for these two uses by January 1, 1997.
      • Intel commits to increase the amount of water sent for recycling to the City of Chandler Effluent Treatment and Recharge Facility according to the following timetable:

        • In 1997, [45]% of the total volume of fresh water will be sent to the City's Effluent Treatment and Recharge Facility for recycling.
        • In 1999, [55]% of the total volume of fresh water will be sent to the City's Effluent Treatment and Recharge Facility for recycling.
        • In 2001, [65]% of the total volume of fresh water will be sent to the City's Effluent Treatment and Recharge Facility for recycling.

      The percentage is calculated by the ratio of water volume transferred to the City of Chandler Effluent Treatment and Recharge Facility divided by the volume of fresh water purchased by Intel from the City of Chandler. The Company will account for the percentage by volume of treated water utilized for these purposes in the consolidated reports issued quarterly (see Section II(G)).

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