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% Section 2 : Second Party shall have the right to make such changes, additions and betterments to or retirements of its existing facilities as Second Party shall consider desirable for the production, transportation and delivery of water into the respective distribution systems of Second Party and Water Company. Section^: The term "water production facilities” as hereinafter used in this agreement shall be deemed to include (a) The water bearing lands and the rights of way outlined in Purple color on "Exhibit A ” for the pipe lines and power lines shown by Green and Yellow lines, respectively, on said exhibit, (b) All water wells, springs, pipe lines, power lines, reser­voirs, settling basins and other structures or facilities loca­ted on said water bearing land and said rights of way T&ieh are used or useful in the production, transmission or delivery of water• (c) Any additions and betterments to the properties mentioned in subparagraphs (a) and (b) hereof which are made by Second Party subsequent to January 1, 1950 pursuant to Section 3 hereof and shall be deemed to exclude any of the above mentioned proper­ties which are retired subsequent to January 1, 1950. Section 4 : It is agreed that the market value of the lands and rights of way mentioned in subparagraph (a) of Section 3 as of January 1, 1950 is #75,900.00. It is agreed that the orig­inal eost of all of the structures and facilities referred to in subparagraph (b) of Section 3 hereof as of January 1, 1950 is