Agreement between the Cantons of Basel-Landschaft (BL) and Basel-Stadt (BS) concerning the Calculation of the Water Royalty of the Augst Power Station to the Canton of BL and the Water Royalty of the Birsfelden Power Station to the Cantons of BS and BL - Introduction (BS)

1. The Calculation of the Water Fee has so far been carried out according to the following binding principles

a. Augst Power Plant: Water fee to the Canton of Basel-Landschaft in accordance with § 27 of the Basel-Landschaft concession for the establishment and operation of a hydroelectric power plant at Augst-Wyhlen dated April 20, 1907, with a fixed rate of 6 CHF per used gross horsepower.

b. Birsfelden Power Plant: The rates permissible according to the federal concession for the Birsfelden power plant are stipulated as follows in Article 6 of the agreement between the Canton of Basel-Landschaft and the Canton of Basel-Stadt regarding the establishment of a joint-stock company for the construction and operation of a hydroelectric power plant at Birsfelden dated August 29, 1950

1. 6 CHF for the gross performance from 12-10 months of water flow,

2. 4 CHF for the additional performance from 10-8 months of water flow,

3. 2 CHF for further additional performance from less than 8 months of water flow.

2. The Cantons of Basel-Landschaft and Basel-Stadt hereby agree to adjust the future charged water fee rates to the maximum values permissible under the respective Swiss federal regulations as follows

1. For the calculation of the water charge for the Augst power plant to the Canton of BL and for the Birsfelden power plant to the Cantons of BL and BS, the permissible maximum rates in CHF per gross horsepower according to the respective applicable federal regulations and the calculation provisions for determining the gross horsepower relevant for the water charge shall fundamentally apply. Article 19 of the water rights concession granted by the Swiss Federal Council for the Birsfelden power plant remains reserved (water charge calculation for the Birsfelden power plant within the framework of the provisions applicable to the Albbruck-Dogern power plant).

1. In the first 5 years, i.e., from January 1, 1974, to December 31, 1978, there shall be an annual stepwise adjustment of the water rate from the values determined by the concession (Augst) or by the founding contract (Birsfelden) to the maximum rates permissible under Swiss federal regulations as of January 1, 1974. Each step shall amount to one-fifth of the difference between the maximum rates in effect as of January 1, 1974, set by the Federal Council, and the original rates.

2. If, during the transitional period from January 1, 1974, to December 31, 1978, there are further increases in the maximum permissible water rate levels by the Federal Council, these increases shall apply to the water rate of the Augst power plant to BL, and the water rate of the Birsfelden power plant to the Cantons BS and BL only from January 1, 1979, with the maximum values permissible from that date onward.

1. The number of gross horsepower subject to water dues, which belong to the specified performance classes, shall be adopted from calculations already made as follows

a. Augst Power Plant (including replacement for storage from the Birsfelden Power Plant). The usable gross horsepower of the Augst Power Plant shall be adopted from the new Aargau water dues calculation of July 24 / November 21, 1974, based on the Rhine water duration curve from 1946 to 1970 and with the distribution "Canton Aargau = 85.2% / Canton BL = 14.8%," both as constant values until the expiration of the concession on February 6, 1988.

b. Birsfelden Power Plant (excluding the storage replacement of the Birsfelden Power Plant to the impounded works Augst and Wyhlen, but including the storage replacement of the impounding Kembs Power Plant to the Birsfelden Power Plant).

1. From January 1, 1974, to December 31, 1978: The gross horsepower of the Birsfelden Power Plant subject to water dues shall initially be adopted until the end of 1978 from the calculations reviewed by the Basel Electric Utility from the South Baden Government Presidium, Waterways Department, dated July 21, 1972. These horsepower calculations were carried out based on the Swiss calculation regulations applicable in 1972 and are based on the Rhine water duration curve 1941/1965.

2. From January 1, 1979: From January 1, 1979, onwards, the water dues for the Birsfelden Power Plant to the cantons BL and BS shall be based on the then newly conducted calculations of the gross horsepower subject to water dues of the Birsfelden Power Plant.

1. The water royalties owed to the cantons of BL and BS from the present agreement and based on their sovereign shares of the Augst and Birsfelden power plants are payable each year on June 30th for the respective calendar year.

1. This Agreement is executed and signed in two identical copies (one for each contracting party).