+-----------+----------------------------+-----------------------------+
| ###       | ### EXISTING LANGUAGE      | **NEW LANGUAGE**            |
| EXISTING  |                            |                             |
| ARTICLE N |                            |                             |
| UMBER[^1] |                            |                             |
+===========+============================+=============================+
| Preamble  | THIS CONTRACT, made this   | THIS CONTRACT, made this    |
|           | 6th day of April, 1964, in | \_\_\_\_\_ day of           |
|           | pursuance generally of the | \_\_\_                      |
|           | Act of June 17, 1902 (32   | \_\_\_\_\_\_\_\_\_\_\_\_\_, |
|           | Stat. 388), and, acts      | 2002, in pursuance          |
|           | amendatory or              | generally of the Act of     |
|           | supplementary thereto,     | June 17, 1902 (32 Stat.     |
|           | between THE UNITED STATES  | 388), and acts amendatory   |
|           | OF AMERICA (hereinafter    | or supplementary thereto,   |
|           | referred to as the United  | including, but not limited  |
|           | States), acting through    | to, the Acts of August 26,  |
|           | the Secretary of the       | 1937 (50 Stat. 844), as     |
|           | Interior, and              | amended and supplemented,   |
|           | \_\_\_\_\_\_\_\_\_\_\_\_\_ | August 4, 1939 (53 Stat.    |
|           | (hereinafter referred to   | 1187), as amended and       |
|           | as the Contractor),        | supplemented, July 2, 1956  |
|           |                            | (70 Stat. 483), June 21,    |
|           |                            | 1963 (77 Stat. 68), October |
|           |                            | 12, 1982 (96 Stat. 1262),   |
|           |                            | October 27, 1986 (100 Stat. |
|           |                            | 3050), as amended, and      |
|           |                            | Title XXXIV of the Act of   |
|           |                            | October 30, 1992 (106 Stat. |
|           |                            | 4706), all collectively     |
|           |                            | hereinafter referred to as  |
|           |                            | Federal Reclamation law,    |
|           |                            | between THE UNITED STATES   |
|           |                            | OF AMERICA, hereinafter     |
|           |                            | referred to as the United   |
|           |                            | States, and                 |
|           |                            | \_\_\_\_\_\_\_\_\_\_        |
|           |                            | \_\_\_\_\_\_\_\_\_\_\_\_\_, |
|           |                            | hereinafter referred to as  |
|           |                            | the Contractor, a public    |
|           |                            | agency of the State of      |
|           |                            | California, duly organized, |
|           |                            | existing, and acting        |
|           |                            | pursuant to the laws        |
|           |                            | thereof, with its principal |
|           |                            | place of business in        |
|           |                            | California; (*may change    |
|           |                            | depending on contracting    |
|           |                            | entity*)                    |
+-----------+----------------------------+-----------------------------+
| Ex        | WHEREAS, the United        | WHEREAS, the United States  |
| planatory | States, pursuant to        | has constructed and is      |
| Recitals  | authorizing acts, has      | operating the Central       |
|           | under construction and is  | Valley Project, California, |
|           | operating the Central      | for diversion, storage,     |
|           | Valley Project,            | carriage, distribution and  |
|           | California, for the        | beneficial use, for flood   |
|           | development, conservation, | control, irrigation,        |
|           | and utilization of water   | municipal, domestic,        |
|           | resources in California in | industrial, fish and        |
|           | the Sacramento, the        | wildlife mitigation,        |
|           | American, the San Joaquin, | protection and restoration, |
|           | and the Trinity River      | generation and distribution |
|           | Basins; and                | of electric energy,         |
|           |                            | salinity control,           |
|           | WHEREAS, the Contractor    | navigation and other        |
|           | asserts that it has rights | beneficial uses, of waters  |
|           | to divert, is diverting,   | of the Sacramento River,    |
|           | and will continue to       | the American River, the     |
|           | divert for reasonable      | Trinity River, and the San  |
|           | beneficial use, water from | Joaquin River and their     |
|           | the natural flow of the    | tributaries; and            |
|           | Sacramento River and       |                             |
|           | tributaries thereto, that  | WHEREAS, the Contractor     |
|           | would have been flowing    | asserts that it has rights  |
|           | therein if the Central     | to divert, is diverting,    |
|           | Valley Project were not in | and will continue to divert |
|           | existence; and             | for reasonable beneficial   |
|           |                            | use, water from the natural |
|           | WHEREAS, the construction  | flow of the Sacramento      |
|           | and operation of the       | River and tributaries       |
|           | integrated and coordinated | thereto, that would have    |
|           | Central Valley Project     | been flowing therein if the |
|           | have changed and will      | Central Valley Project were |
|           | further change the regimen | not in existence; and       |
|           | of the Sacramento,         |                             |
|           | American, San Joaquin, and | WHEREAS, the construction   |
|           | Trinity Rivers and the     | and operation of the        |
|           | Sacramento-San Joaquin     | integrated and coordinated  |
|           | Delta from unregulated     | Central Valley Project has  |
|           | flow to regulated flow;    | changed and will further    |
|           | and                        | change the regimen of the   |
|           |                            | Sacramento, American, San   |
|           | WHEREAS, the United States | Joaquin, and Trinity Rivers |
|           | asserts that it has rights | and the Sacramento-San      |
|           | to divert, is diverting,   | Joaquin Delta from          |
|           | and will continue to       | unregulated flow to         |
|           | divert waters from said    | regulated flow; and         |
|           | Rivers and the said Delta  |                             |
|           | in connection with the     | WHEREAS, the United States  |
|           | operation of said Central  | asserts that it has rights  |
|           | Valley Project, and        | to divert, is diverting,    |
|           |                            | and will continue to divert |
|           | WHEREAS, to assure the     | waters from said Rivers and |
|           | Contractor of the          | said Delta in connection    |
|           | enjoyment and use of the   | with the operation of said  |
|           | regulated flow of the said | Central Valley Project, and |
|           | Rivers and the Delta, and  |                             |
|           | to provide for the         | WHEREAS, the Contractor and |
|           | economical operation of    | the United States entered   |
|           | the Central Valley Project | into Contract No.           |
|           | by, and the reimbursement  | \_                          |
|           | to, the United States for  | \_\_\_\_\_\_\_\_\_\_\_\_\_, |
|           | expenditures made for said | as amended, hereinafter     |
|           | Project;                   | referred to as the Existing |
|           |                            | Contract, which established |
|           | NOW, THEREFORE, in         | terms for the delivery to   |
|           | consideration of the       | the Contractor of Central   |
|           | covenants herein           | Valley Project Water and    |
|           | contained, it is agreed as | the quantities of Base      |
|           | follows:                   | Supply the Contractor may   |
|           |                            | divert from the Sacramento  |
|           |                            | River from                  |
|           |                            | \_\_\_\_\_\_\_\_\_\_\_\_    |
|           |                            | through                     |
|           |                            | \_\_\_\_\_\_\_\_\_          |
|           |                            | \_\_\_\_\_\_\_\_\_\_\_\_\_; |
|           |                            | and                         |
|           |                            |                             |
|           |                            | WHEREAS, the Contractor has |
|           |                            | requested the long-term     |
|           |                            | renewal of the Existing     |
|           |                            | Contract, pursuant to the   |
|           |                            | terms of the Existing       |
|           |                            | Contract, Federal           |
|           |                            | Reclamation law, and the    |
|           |                            | laws of the State of        |
|           |                            | California, and the United  |
|           |                            | States has determined that  |
|           |                            | the Contractor has          |
|           |                            | fulfilled all of its        |
|           |                            | obligations under the       |
|           |                            | Existing Contract; and      |
|           |                            |                             |
|           |                            | WHEREAS, to assure the      |
|           |                            | Contractor of the enjoyment |
|           |                            | and use of the regulated    |
|           |                            | flow of the said Rivers and |
|           |                            | the Delta, and to provide   |
|           |                            | for the economical          |
|           |                            | operation of the Central    |
|           |                            | Valley Project by, and the  |
|           |                            | reimbursement to, the       |
|           |                            | United States for           |
|           |                            | expenditures made for said  |
|           |                            | Project;                    |
|           |                            |                             |
|           |                            | NOW, THEREFORE, in          |
|           |                            | consideration of the        |
|           |                            | performance of the herein   |
|           |                            | contained provisions,       |
|           |                            | conditions, and covenants,  |
|           |                            | it is agreed as follows:    |
+-----------+----------------------------+-----------------------------+
| 1\.       | 1\. When used herein,      | 1\. When used herein,       |
| De        | unless otherwise expressed | unless otherwise expressed  |
| finitions | or incompatible with the   | or incompatible with the    |
|           | intent hereof, the term:   | intent hereof, the term:    |
|           |                            |                             |
|           | \(a\) "Secretary" or       | \(a\) "Base Supply" shall   |
|           | "Contracting Officer"      | mean the quantity of water  |
|           | shall mean the Secretary   | established in Articles 3   |
|           | of the United States       | and 5 which the United      |
|           | Department of the Interior | States agrees may be        |
|           | or his duly authorized     | diverted by the Contractor  |
|           | representative;            | from the Sacramento River   |
|           |                            | each month during the       |
|           | \(b\) "Project" shall mean | period April through        |
|           | the Central Valley         | October of each Year        |
|           | Project, California, of    | without payment to the      |
|           | the Bureau of Reclamation; | United States for such      |
|           |                            | quantities diverted;        |
|           | \(c\) "year" shall mean a  |                             |
|           | calendar year;             | \(b\) "Charges" shall mean  |
|           |                            | the payments for Project    |
|           | \(d\) "base supply" shall  | Water required by Federal   |
|           | mean the quantity of water | Reclamation law in addition |
|           | established in Articles 3  | to the Rates specified in   |
|           | and 5 which the United     | this Contract as determined |
|           | States agrees may be       | annually by the Contracting |
|           | diverted by the Contractor | Officer pursuant to this    |
|           | from the Sacramento River  | Contract;                   |
|           | each month during the      |                             |
|           | period April through       | \(c\) "Contract Total"      |
|           | October of each year       | shall mean the sum of the   |
|           | without payment to the     | Base Supply and Project     |
|           | United States for such     | Water available for         |
|           | quantities diverted;       | diversion by the Contractor |
|           |                            | for the period April 1      |
|           | \(e\) "Project water"      | through October 31;         |
|           | shall mean all water       |                             |
|           | diverted or scheduled to   | \(d\) "Critical Year" shall |
|           | be diverted each month     | mean any Year in which      |
|           | during the period April    | either of the following     |
|           | through October of each    | eventualities exists:       |
|           | year by the Contractor     |                             |
|           | from the Sacramento River  | \(1\) The forecasted full   |
|           | which is in excess of the  | natural inflow to Shasta    |
|           | base supply. The United    | Lake for the current Water  |
|           | States recognizes the      | Year, as such forecast is   |
|           | right of the Contractor to | made by the United States   |
|           | make arrangements for      | on or before February 15    |
|           | acquisition of water from  | and reviewed as frequently  |
|           | projects of others than    | thereafter as conditions    |
|           | the United States for      | and information warrant, is |
|           | delivery through the       | equal to or less than three |
|           | Sacramento River and       | million two hundred         |
|           | tributaries subject to     | thousand (3,200,000)        |
|           | agreement between          | acre-feet; or               |
|           | Contractor and the United  |                             |
|           | States as to               | \(2\) The total accumulated |
|           | identification of such     | actual deficiencies below   |
|           | water which water when so  | four million (4,000,000)    |
|           | identified shall not be    | acre-feet in the            |
|           | deemed Project water under | immediately prior Water     |
|           | this contract;             | Year or series of           |
|           |                            | successive prior Water      |
|           | \(f\) "water year" shall   | Years each of which had     |
|           | mean the period commencing | inflows of less than four   |
|           | with October 1 of one year | million (4,000,000)         |
|           | and extending through      | acre-feet, together with    |
|           | September 30 of the next;  | the forecasted deficiency   |
|           |                            | for the current Water Year, |
|           | \(g\) "total supply" shall | exceed eight hundred        |
|           | mean the sum of the base   | thousand (800,000)          |
|           | supply and Project water;  | acre-feet. For the purpose  |
|           |                            | of determining a Critical   |
|           | \(h\) "Critical year"      | Year the computed inflow to |
|           | shall mean any year in     | Shasta Lake under present   |
|           | which either of the        | upstream development above  |
|           | following eventualities    | Shasta Lake shall be used   |
|           | exists:                    | as the full natural inflow  |
|           |                            | to Shasta Lake. In the      |
|           | \(1\) The forecasted full  | event that major            |
|           | natural inflow to Shasta   | construction occurs above   |
|           | Lake for the current water | Shasta Lake after April 1,  |
|           | year, as such forecast is  | 2004, which materially      |
|           | made by the United States  | alters the present regimen  |
|           | on or before February 15   | of the stream systems       |
|           | and reviewed as frequently | contributing to Shasta      |
|           | thereafter as conditions   | Lake, the computed inflow   |
|           | and information warrant,   | to Shasta Lake used to      |
|           | is equal to or less than   | define a Critical Year      |
|           | 3,200,000 acre-feet; or    | will, be adjusted to        |
|           |                            | eliminate the effect of     |
|           | \(2\) The total            | such material alterations.  |
|           | accumulated actual         | After consultation with the |
|           | deficiencies below         | State of California, the    |
|           | 4,000,000 acre-feet in the | National Weather Service,   |
|           | immediately prior water    | and other recognized        |
|           | year or series of          | forecasting agencies, the   |
|           | successive prior water     | Contracting Officer will    |
|           | years each of which had    | select the forecast to be   |
|           | inflows of less than       | used and will make the      |
|           | 4,000,000 acre-feet,       | details of it available to  |
|           | together with the          | the Contractor. The same    |
|           | forecasted deficiency for  | forecasts used by the       |
|           | the current water year,    | United States for the       |
|           | exceed 800,000 acre-feet.  | operation of the Project    |
|           | For the purpose of         | shall be used to make the   |
|           | determining a critical     | forecasts hereunder;        |
|           | year, the computed inflow  |                             |
|           | to Shasta Lake under       | \(e\) "CVPIA" shall mean    |
|           | present upstream           | the Central Valley Project  |
|           | development above Shasta   | Improvement Act, Title      |
|           | Lake shall be used as the  | XXXIV of the Act of October |
|           | full natural inflow to     | 30, 1992 (106 Stat. 4706);  |
|           | Shasta Lake. In the event  |                             |
|           | that major construction    | \(f\) "Eligible Lands"      |
|           | occurs above Shasta Lake   | shall mean all lands to     |
|           | after September 1, 1963,   | which Project Water may be  |
|           | materially alters the      | delivered in accordance     |
|           | present regimen of the     | with Section 204 of the     |
|           | stream systems             | Reclamation Reform Act of   |
|           | contributing to Shasta     | October 12, 1982 (96 Stat.  |
|           | Lake, the computed inflow  | 1263), as amended,          |
|           | to Shasta Lake used to     | hereinafter referred to as  |
|           | define a critical year     | RRA;                        |
|           | will be adjusted to        |                             |
|           | eliminate the effect of    | \(g\) "Excess Lands" shall  |
|           | such material alterations. | mean all lands in excess of |
|           | After consultation with    | the limitations contained   |
|           | the State, the Weather     | in Section 204 of the RRA,  |
|           | Bureau, and other          | other than those lands      |
|           | recognized forecasting     | exempt from acreage         |
|           | agencies, the Contracting  | limitation under Federal    |
|           | Officer will select the    | Reclamation law;            |
|           | forecast to be used and    |                             |
|           | will make the details of   | \(h\) "Full Cost Rate"      |
|           | it available to the        | shall mean that water rate  |
|           | Contractor. The same       | described in Sections       |
|           | forecasts used by the      | 205(a)(3) or 202(3) of the  |
|           | United States for the      | RRA, whichever is           |
|           | operation of the Project   | applicable;                 |
|           | shall be used to make the  |                             |
|           | forecasts hereunder; and   | \(i\) "Ineligible Lands"    |
|           |                            | shall mean all lands to     |
|           | \(i\) "eligible land"      | which Project Water may not |
|           | shall mean nonexcess land  | be delivered in accordance  |
|           | as defined in Article 20   | with Section 204 of the     |
|           | hereof together with       | RRA;                        |
|           | excess land for which      |                             |
|           | valid recordable contracts | \(j\) "Landholder" shall    |
|           | have been executed in      | mean a party that directly  |
|           | accordance with said       | or indirectly owns or       |
|           | Article 20.                | leases nonexempt land, as   |
|           |                            | provided in 43 CFR 426.2;   |
|           |                            |                             |
|           |                            | \(k\) "Project" shall mean  |
|           |                            | the Central Valley Project  |
|           |                            | owned by the United States  |
|           |                            | and managed by the          |
|           |                            | Department of the Interior, |
|           |                            | Bureau of Reclamation;      |
|           |                            |                             |
|           |                            | \(l\) "Project Water" shall |
|           |                            | mean all water diverted or  |
|           |                            | scheduled to be diverted    |
|           |                            | each month during the       |
|           |                            | period April through        |
|           |                            | October of each Year by the |
|           |                            | Contractor from the         |
|           |                            | Sacramento River which is   |
|           |                            | in excess of the Base       |
|           |                            | Supply. The United States   |
|           |                            | recognizes the right of the |
|           |                            | Contractor to make          |
|           |                            | arrangements for            |
|           |                            | acquisition of water from   |
|           |                            | projects of others than the |
|           |                            | United States for delivery  |
|           |                            | through the Sacramento      |
|           |                            | River and tributaries       |
|           |                            | subject to written          |
|           |                            | agreement between           |
|           |                            | Contractor and the United   |
|           |                            | States as to identification |
|           |                            | of such water which water   |
|           |                            | when so identified shall    |
|           |                            | not be deemed Project Water |
|           |                            | under this contract;        |
|           |                            |                             |
|           |                            | \(m\) "Rates" shall mean    |
|           |                            | the payments for Project    |
|           |                            | Water determined annually   |
|           |                            | by the Contracting Officer  |
|           |                            | in accordance with the then |
|           |                            | current applicable water    |
|           |                            | ratesetting policies for    |
|           |                            | the Project, as described   |
|           |                            | in subdivision (a) of       |
|           |                            | Article 8 of this Contract; |
|           |                            |                             |
|           |                            | \(n\) "Secretary" or        |
|           |                            | "Contracting Officer" shall |
|           |                            | mean the Secretary of the   |
|           |                            | Interior, a duly appointed  |
|           |                            | successor, or an authorized |
|           |                            | representative acting       |
|           |                            | pursuant to any authority   |
|           |                            | of the Secretary and        |
|           |                            | through any agency of the   |
|           |                            | Department of the Interior; |
|           |                            |                             |
|           |                            | \(o\) "Water Year" shall    |
|           |                            | mean the period commencing  |
|           |                            | with October 1 of one year  |
|           |                            | and extending through       |
|           |                            | September 30 of the next;   |
|           |                            | and                         |
|           |                            |                             |
|           |                            | \(p\) "Year" shall mean a   |
|           |                            | calendar year.              |
+-----------+----------------------------+-----------------------------+
| 2\. Term  | 2\. This contract shall    | 2\. This contract shall     |
| Of        | remain in effect until and | become effective April 1,   |
| Contract  | including March 31, 2004:  | 2004, and shall remain in   |
|           | [Provided]{.underline},    | effect until and including  |
|           | That under terms and       | March 31, 2044:             |
|           | conditions mutually        | [Provided]{.underline},     |
|           | agreeable to the parties   | That under terms and        |
|           | hereto, renewals may be    | conditions mutually         |
|           | made for successive        | agreeable to the parties    |
|           | periods not to exceed      | hereto, renewals may be     |
|           | forty (40) years each. The | made for successive periods |
|           | terms and conditions of    | not to exceed forty (40)    |
|           | each renewal shall be      | years each. The terms and   |
|           | agreed upon not later than | conditions of each renewal  |
|           | 1 year prior to the        | shall be agreed upon not    |
|           | expiration of the then     | later than one (1) year     |
|           | existing contract:         | prior to the expiration of  |
|           | [Provided]{.underline}     | the then existing contract: |
|           | [further]{.underline},     | [Provided]{.underline}      |
|           | That upon written request  | [further]{.underline}, That |
|           | by the Contractor of the   | upon written request by the |
|           | Secretary made not later   | Contractor of the Secretary |
|           | than 1 year prior to the   | made not later than one (1) |
|           | expiration of this         | year prior to the           |
|           | contract, whenever,        | expiration of this          |
|           | account being taken of the | contract, whenever, account |
|           | amount then credited to    | being taken of the amount   |
|           | the costs of construction  | then credited to the costs  |
|           | of water supply works, the | of construction of water    |
|           | remaining amount of        | supply works, the remaining |
|           | construction costs of      | amount of construction      |
|           | water supply works which   | costs of water supply work  |
|           | is properly assignable for | which is properly           |
|           | ultimate return by the     | assignable for ultimate     |
|           | Contractor as established  | return by the Contractor as |
|           | by the Secretary of the    | established by the          |
|           | Interior pursuant to (3)   | Secretary of the Interior   |
|           | of Section 1 of Public Law | pursuant to (3) of Section  |
|           | 643 (70 Stat. 483),        | 1 of Public Law 643 (70     |
|           | probably can be repaid to  | Stat. 483), probably can be |
|           | the United States within   | repaid to the United States |
|           | the term of a contract     | within the term of a        |
|           | under subsection (d),      | contract under subsection   |
|           | Section 9 of the1939       | (d), Section 9 of the1939   |
|           | Reclamation Project Act    | Reclamation Project Act (53 |
|           | (53 Stat. 1187), this      | Stat. 1187), this contract  |
|           | contract may be converted  | may be converted to a       |
|           | to a contract under said   | contract under said         |
|           | subsection (d) upon terms  | subsection (d) upon terms   |
|           | and conditions mutually    | and conditions mutually     |
|           | agreeable to the United    | agreeable to the United     |
|           | States and the Contractor. | States and the Contractor.  |
|           | Notwithstanding any        | Notwithstanding any         |
|           | provisions of this         | provision of this contract, |
|           | contract, the Contractor   | the Contractor reserves and |
|           | reserves and shall have    | shall have all rights and   |
|           | all rights and benefits    | benefits under Public Law   |
|           | under Public Law 643.      | 643.                        |
+-----------+----------------------------+-----------------------------+
| 3\. Water | 3\. (a) Subject to the     | 3\. (a) Subject to the      |
| To Be     | conditions, limitations,   | conditions, limitations,    |
| Furnished | and provisions hereinafter | and provisions hereinafter  |
| To        | expressed, the Contractor  | expressed, the Contractor   |
| C         | is hereby entitled and     | is hereby entitled and      |
| ontractor | authorized to divert from  | authorized to divert from   |
|           | the Sacramento River, for  | the Sacramento River at the |
|           | beneficial use within the  | locations shown in Exhibit  |
|           | area delineated on Exhibit | A, for beneficial use       |
|           | B, attached hereto and     | within the area delineated  |
|           | made a part hereof, the    | on Exhibit B, (both         |
|           | total supply of water      | Exhibits are attached       |
|           | shown on, and in           | hereto and made a part      |
|           | accordance with the        | hereof), the Contract Total |
|           | schedule contained in      | designated in Exhibit A, or |
|           | Exhibit A, also attached   | any revision thereof, in    |
|           | hereto and made a part     | accordance with the monthly |
|           | hereof, or any revision    | operating schedule required |
|           | thereof as herein          | by Article 3(b) of this     |
|           | provided. The quantity of  | contract. The quantity of   |
|           | any water diverted from    | any water diverted from the |
|           | the Sacramento River to    | Sacramento River for use on |
|           | any lands within the       | any lands delineated on     |
|           | boundaries of the          | Exhibit B, by the owner of  |
|           | Contractor, as delineated  | such lands or otherwise     |
|           | on Exhibit B, by the owner | shall constitute a part of  |
|           | of such lands or otherwise | the Contract Total as shown |
|           | shall constitute a part of | on Exhibit A and shall be   |
|           | the total supply as shown  | subject to all the          |
|           | on Exhibit A, and shall be | provisions of this contract |
|           | subject to all the         | relating to such Contract   |
|           | provisions of this         | Total as if such diversion  |
|           | contract relating to such  | were made by the            |
|           | total supply as if such    | Contractor.                 |
|           | diversion were made by the |                             |
|           | Contractor.                | \(b\) The United States     |
|           |                            | recognizes the need of the  |
|           | \(b\) The United States    | Contractor to vary from     |
|           | recognizes that the        | time to time its monthly    |
|           | beneficial use by the      | diversions of water from    |
|           | Contractor of the total    | the quantities shown in     |
|           | supply may be contingent   | Exhibit A, or any revision  |
|           | upon its developing        | thereof. Before April 1 of  |
|           | demands and that during    | each Year the Contractor    |
|           | the period prior to April  | shall submit a written      |
|           | 1, 1974, it may require a  | schedule to the Contracting |
|           | lesser quantity than that  | Officer indicating the      |
|           | shown on Exhibit A. Prior  | Contract Total to be        |
|           | to April 1 of each year    | diverted by the Contractor  |
|           | during the said period,    | during each month. The      |
|           | the Contractor shall order | United States shall furnish |
|           | from the United States     | water to the Contractor in  |
|           | either the Project water   | accordance with the monthly |
|           | supply as shown in Exhibit | operating schedule or any   |
|           | A or such lesser quantity  | revisions thereof:          |
|           | as it desires each month   | [Provided]{.underline},     |
|           | during the ensuing         | That in no event shall the  |
|           | irrigation season, and     | total quantity scheduled    |
|           | Exhibit A shall be         | for diversion by the        |
|           | considered revised         | Contractor from the         |
|           | accordingly.               | Sacramento River:           |
|           |                            |                             |
|           | \(c\) On April 1, 1974,    | \(1\) During the period     |
|           | the Contractor shall order | April through October       |
|           | from the United States     | exceed the aggregate of the |
|           | either the Project water   | Contract Total for those    |
|           | supply as shown in Exhibit | months shown in Exhibit A   |
|           | A, or such lesser quantity | or any revision thereof;    |
|           | as it desires each month,  |                             |
|           | and Exhibit A shall be     | \(2\) During the period     |
|           | considered revised         | July through September      |
|           | accordingly and shall      | exceed the aggregate of the |
|           | continue in effect during  | Contract Total for those    |
|           | the remaining term hereof. | months shown in Exhibit A   |
|           | The quantities of Project  | or any revision thereof;    |
|           | water diverted from the    | and [Provided]{.underline}, |
|           | Sacramento River for       | [further]{.underline}, That |
|           | beneficial use on the      | with the prior written      |
|           | lands within the           | approval of the Contracting |
|           | boundaries of the          | Officer, water to be        |
|           | Contractor at any time     | diverted in April, May, or  |
|           | thereafter, may be further | June may be diverted in     |
|           | reduced to the extent and  | September or October, or    |
|           | in a manner as may be      | vice versa. The Contractor  |
|           | agreed upon by the         | shall be charged a fee      |
|           | Contractor and the         | based upon the appropriate  |
|           | Contracting Officer.       | components of the water     |
|           |                            | ratesetting policy for the  |
|           | \(d\) The United States    | Project for the Base Supply |
|           | recognizes the need of the | scheduled for diversion in  |
|           | Contractor to vary from    | April, May, or June that is |
|           | time to time its monthly   | diverted in September or    |
|           | deliveries of water from   | October, or vice versa.     |
|           | the quantities shown in    |                             |
|           | Exhibit A, or any revision | \(c\) In the event          |
|           | thereof, and shall furnish | conditions warrant, the     |
|           | water to the Contractor in | Contracting Officer         |
|           | accordance with its        | reserves the right to       |
|           | reasonable needs pursuant  | require the Contractor to   |
|           | to revised monthly         | submit, at least            |
|           | operating schedules to be  | seventy-two (72) hours      |
|           | furnished by it to the     | prior to the beginning of   |
|           | United States before each  | each weekly period, its     |
|           | April 1 and before the 1st | estimate of daily diversion |
|           | day of each month          | requirements for each such  |
|           | thereafter indicating the  | period from the Sacramento  |
|           | total supply to be         | River:                      |
|           | diverted by the Contractor | [Provided]{.underline},     |
|           | during each month:         | [however]{.underline}, That |
|           | [Provided]{.underline},    | changes during any such     |
|           | That in no event shall the | period may be made upon the |
|           | total quantity scheduled   | giving of seventy-two (72)  |
|           | or diverted by the         | hours' notice thereof to    |
|           | Contractor from Sacramento | the Contracting Officer.    |
|           | River:                     |                             |
|           |                            | \(d\) No sale, transfer,    |
|           | \(1\) During the period    | exchange, or other disposal |
|           | April through October      | of any water or the right   |
|           | exceed the aggregate of    | to the use thereof for use  |
|           | the total supply for those | on land other than that     |
|           | months shown in Exhibit A  | shown on Exhibit B shall be |
|           | or any revision thereof;   | made by the Contractor      |
|           | and                        | without:                    |
|           |                            |                             |
|           | \(2\) During the period    | \(1\) First obtaining the   |
|           | July through September     | written consent of the      |
|           | exceed the aggregate of    | Contracting Officer; and    |
|           | the total supply for those |                             |
|           | months shown in Exhibit A  | \(2\) Compliance with all   |
|           | or any revision thereof.   | applicable State and        |
|           |                            | Federal laws, including but |
|           | \(e\) The Contractor       | not limited to the National |
|           | recognizes the             | Environmental Policy Act    |
|           | complexities of operating  | and the Endangered Species  |
|           | Project facilities to make | Act, and applicable         |
|           | water available for        | guidelines or regulations   |
|           | diversion as herein        | then in effect.             |
|           | provided and to perform    |                             |
|           | other functions of the     | \(e\) Nothing herein        |
|           | Project. To facilitate     | contained shall prevent the |
|           | such operations at least   | Contractor from diverting   |
|           | 72 hours prior to the      | water during the months of  |
|           | beginning of each weekly   | November through March for  |
|           | period it shall submit to  | beneficial use on the land  |
|           | the Contracting Officer    | shown on Exhibit B to the   |
|           | its estimate of its        | extent authorized under the |
|           | aggregate and daily        | laws of the State of        |
|           | delivery requirements for  | California.                 |
|           | each such period from the  |                             |
|           | Sacramento River:          | \(f\) The United States     |
|           | [Provided]{.underline},    | assumes no responsibility   |
|           | [however]{.underline},     | for and neither it nor its  |
|           | That changes during any    | officers, agents, or        |
|           | such period may be made    | employees shall have any    |
|           | upon the giving of         | liability for or on account |
|           | a72-hour notice thereof to | of:                         |
|           | the Contracting Officer.   |                             |
|           |                            | \(1\) The quality of water  |
|           | \(f\) No sale or other     | to be diverted by the       |
|           | disposal of any water or   | Contractor;                 |
|           | the right to the use       |                             |
|           | thereof for use on land    | \(2\) The control,          |
|           | other than that shown on   | carriage, handling, use,    |
|           | the Contractor's Exhibit B | disposal, or distribution   |
|           | shall be made by the       | of water diverted by the    |
|           | Contractor without first   | Contractor outside the      |
|           | obtaining the written      | facilities constructed and  |
|           | consent of the United      | then being operated and     |
|           | States thereto.            | maintained by or on behalf  |
|           |                            | of the United States;       |
|           | \(g\) Nothing herein       |                             |
|           | contained shall prevent    | \(3\) Claims of damage of   |
|           | the Contractor from        | any nature whatsoever,      |
|           | diverting water during the | including but not limited   |
|           | months of November through | to, property loss or        |
|           | March for beneficial use   | damage, personal injury, or |
|           | on the land shown on       | death arising out of or     |
|           | Exhibit B to the extent    | connected with the control, |
|           | authorized under the law   | carriage, handling, use,    |
|           | of the State of            | disposal, or distribution   |
|           | California.                | of said water outside of    |
|           |                            | the hereinabove referred to |
|           | \(h\) The United States    | facilities; and             |
|           | assumes no responsibility  |                             |
|           | for and neither it nor its | \(4\) Any damage whether    |
|           | officers, agents, and      | direct or indirect arising  |
|           | employees shall have any   | out of or in any manner     |
|           | liability for or on        | caused by a shortage of     |
|           | account of:                | water whether such shortage |
|           |                            | be on account of errors in  |
|           | \(1\) The control,         | operation, drought, or      |
|           | carriage, handling, use,   | unavoidable causes.         |
|           | disposal, or distribution  |                             |
|           | of said water outside the  |                             |
|           | facilities constructed and |                             |
|           | then being operated and    |                             |
|           | maintained by the United   |                             |
|           | States;                    |                             |
|           |                            |                             |
|           | \(2\) Claims of damage of  |                             |
|           | any nature whatsoever,     |                             |
|           | including but not limited  |                             |
|           | to, property loss or       |                             |
|           | damage, personal injury,   |                             |
|           | or death arising out of or |                             |
|           | connected with the         |                             |
|           | control, carriage,         |                             |
|           | handling, use, disposal,   |                             |
|           | or distribution of said    |                             |
|           | water outside of the       |                             |
|           | hereinabove referred to    |                             |
|           | facilities; and            |                             |
|           |                            |                             |
|           | \(3\) Any damage whether   |                             |
|           | direct or indirect arising |                             |
|           | out of or in any manner    |                             |
|           | caused by a shortage of    |                             |
|           | water whether such         |                             |
|           | shortage be on account of  |                             |
|           | errors in operation,       |                             |
|           | drought, or unavoidable    |                             |
|           | causes.                    |                             |
+-----------+----------------------------+-----------------------------+
| 4\.       | 4\. The United States      | 4\. The United States       |
| Return    | reserves the right to the  | reserves the right to the   |
| Flow      | use of all waste, seepage, | use of all waste, seepage,  |
|           | and return-flow water      | and return flow water       |
|           | derived from water         | derived from water diverted |
|           | diverted by the Contractor | by the Contractor hereunder |
|           | hereunder and which        | and which escapes or is     |
|           | escapes or is discharged   | discharged beyond the       |
|           | beyond the boundaries of   | boundaries of the lands     |
|           | the lands shown on the     | shown on Exhibit B. Nothing |
|           | Contractor's Exhibit B and | herein shall be construed   |
|           | nothing herein shall be    | as an abandonment or a      |
|           | construed as an            | relinquishment by the       |
|           | abandonment or a           | United States of the right  |
|           | relinquishment by the      | to the use of any such      |
|           | United States of any such  | water;                      |
|           | water, but this shall not  | [Provided]{.underline},     |
|           | be construed as claiming   | That this shall not be      |
|           | for the United States any  | construed as claiming for   |
|           | right as waste, seepage,   | the United States any right |
|           | or return flow to water    | to such water which is      |
|           | being used pursuant to     | recovered by the Contractor |
|           | this contract for surface  | pursuant to California law  |
|           | irrigation or underground  | from within the boundaries  |
|           | storage within the said    | of the lands shown on       |
|           | boundaries by the          | Exhibit B, and which is     |
|           | Contractor.                | being used pursuant to this |
|           |                            | contract for surface        |
|           |                            | irrigation or underground   |
|           |                            | storage on the lands shown  |
|           |                            | on Exhibit B by the         |
|           |                            | Contractor. (*Colusa Basin  |
|           |                            | Drain language may be       |
|           |                            | required*)                  |
+-----------+----------------------------+-----------------------------+
| 5\.       | 5\. In a critical year,    | 5\. (a) In any Water Year   |
| Critical  | the Contractor's base      | that (1) the forecasted     |
| Year      | supply and Project water   | full natural inflow to      |
| R         | agreed to be diverted      | Shasta Lake for the current |
| eductions | during the period April    | Water Year, as such         |
|           | through October of the     | forecast is made by the     |
| (Co       | year in which the          | United States on or before  |
| nstraints | principal portion of the   | February 15 and reviewed as |
| on the    | critical year occurs and   | frequently thereafter as    |
| Ava       | each monthly quantity of   | conditions and information  |
| ilability | said period shall be       | warrant, is equal to or     |
| of        | reduced by 25%. The amount | less than three million     |
| W         | of any overpayment by the  | eight hundred thousand      |
| ater)[^2] | Contractor shall, at its   | (3,800,000) acre-feet; or   |
|           | option, be refunded or     | (2) If the total            |
|           | credited upon amounts to   | accumulated actual          |
|           | become due to the United   | deficiencies in the full    |
|           | States from the Contractor | natural inflow to Shasta    |
|           | under the provisions       | Lake in the immediately     |
|           | hereof in the ensuing      | prior Water Year or series  |
|           | year. To the extent of     | of successive prior Water   |
|           | such deficiency such       | Years, each of which had    |
|           | adjustment of overpayment  | inflows of less than four   |
|           | shall constitute the sole  | million (4,000,000)         |
|           | remedy of the Contractor.  | acre-feet, together with    |
|           |                            | the forecasted deficiency   |
|           |                            | for the current Water Year, |
|           |                            | are between 200,000         |
|           |                            | acre-feet and 800,000       |
|           |                            | acre-feet, then the         |
|           |                            | following reductions in the |
|           |                            | Contractor's monthly        |
|           |                            | Contract Total shall be     |
|           |                            | imposed:                    |
|           |                            |                             |
|           |                            | [Deficiency                 |
|           |                            | (acre-feet)]{.underline}    |
|           |                            | [Reduction]{.underline}     |
|           |                            |                             |
|           |                            | 200,000 -- 400,000 10       |
|           |                            | percent                     |
|           |                            |                             |
|           |                            | 400,001 -- 600,000 15       |
|           |                            | percent                     |
|           |                            |                             |
|           |                            | 600,001 -- 800,000 20       |
|           |                            | percent                     |
|           |                            |                             |
|           |                            | \(b\) In a Critical Year,   |
|           |                            | the Contractor's Base       |
|           |                            | Supply and Project Water    |
|           |                            | agreed to be diverted       |
|           |                            | during the period April     |
|           |                            | through October of the Year |
|           |                            | in which the principal      |
|           |                            | portion of the Critical     |
|           |                            | Year occurs and, each       |
|           |                            | monthly quantity of said    |
|           |                            | period shall be reduced by  |
|           |                            | twenty-five percent (25%).  |
|           |                            |                             |
|           |                            | \(c\) The amount of any     |
|           |                            | overpayment by the          |
|           |                            | Contractor shall, at its    |
|           |                            | option, be refunded or      |
|           |                            | credited upon amounts to    |
|           |                            | become due to the United    |
|           |                            | States from the Contractor  |
|           |                            | under the provisions hereof |
|           |                            | in the ensuing Year. To the |
|           |                            | extent of such deficiency   |
|           |                            | such adjustment of          |
|           |                            | overpayment shall           |
|           |                            | constitute the sole remedy  |
|           |                            | of the Contractor.          |
+-----------+----------------------------+-----------------------------+
| 6\. Need  | 6\. In the event the       | 6\. Omitted.                |
| Of        | Contractor in any year     |                             |
| C         | requires a quantity of     |                             |
| ontractor | water in addition to its   |                             |
| For More  | total supply for that      |                             |
| Water     | year, upon receipt from    |                             |
| Than      | the Contractor of:         |                             |
| Agreed    |                            |                             |
| Quantity  | \(a\) A written notice     |                             |
|           | requesting such additional |                             |
|           | water together with a      |                             |
|           | schedule indicating the    |                             |
|           | desired times and          |                             |
|           | quantities for the         |                             |
|           | diversion thereof; and     |                             |
|           |                            |                             |
|           | \(b\) Payment in full      |                             |
|           | therefor at the applicable |                             |
|           | rate,                      |                             |
|           |                            |                             |
|           | the United States shall    |                             |
|           | attempt to make such       |                             |
|           | additional water available |                             |
|           | in accordance with said    |                             |
|           | schedule to the extent     |                             |
|           | that additional water is   |                             |
|           | available as determined by |                             |
|           | the Contracting Officer.   |                             |
|           | The amount of any          |                             |
|           | overpayment by the         |                             |
|           | Contractor, by reason of   |                             |
|           | the additional quantity of |                             |
|           | water being made available |                             |
|           | for diversion by it        |                             |
|           | pursuant to this Article   |                             |
|           | having been less than the  |                             |
|           | quantity requested and     |                             |
|           | paid for, at the option of |                             |
|           | the Contractor, shall be   |                             |
|           | refunded to it or credited |                             |
|           | upon amounts to become due |                             |
|           | to the United States from  |                             |
|           | the Contractor under the   |                             |
|           | provisions hereof in the   |                             |
|           | ensuing year:              |                             |
|           | [Provided]{.underline},    |                             |
|           | That the inability,        |                             |
|           | failure, or refusal of the |                             |
|           | Contractor to divert such  |                             |
|           | additional quantity of     |                             |
|           | water when it is available |                             |
|           | shall not entitle the said |                             |
|           | Contractor to any refund   |                             |
|           | or adjustment of payment.  |                             |
|           | The diversion by the       |                             |
|           | Contractor of such         |                             |
|           | additional quantities of   |                             |
|           | water shall neither        |                             |
|           | entitle nor obligate the   |                             |
|           | Contractor to divert such  |                             |
|           | quantities in subsequent   |                             |
|           | years.                     |                             |
+-----------+----------------------------+-----------------------------+
| 7\. Use   | 7\. Project water          | 6\. (a) Project Water       |
| Of Water  | furnished to the           | furnished to the Contractor |
| Furnished | Contractor pursuant to     | pursuant to this contract   |
| To        | this contract shall not be | shall not be delivered or   |
| C         | delivered or furnished by  | furnished by the Contractor |
| ontractor | the Contractor for any     | for any purposes other than |
|           | purposes other than        | agricultural purposes,      |
|           | agricultural purposes,     | including, but not          |
|           | including, but not         | restricted to, the watering |
|           | restricted to, the         | of livestock, incidental    |
|           | watering of livestock,     | domestic use, or            |
|           | incidental domestic use,   | underground water           |
|           | or underground water       | replenishment without       |
|           | replenishment without      | written consent of the      |
|           | written consent of the     | Contracting Officer.        |
|           | Contracting Officer.       |                             |
|           |                            | \(b\) The Contractor shall  |
|           |                            | comply with requirements    |
|           |                            | applicable to the           |
|           |                            | Contractor in biological    |
|           |                            | opinion(s) prepared as a    |
|           |                            | result of a consultation    |
|           |                            | regarding the execution of  |
|           |                            | this Contract undertaken    |
|           |                            | pursuant to Section 7 of    |
|           |                            | the Endangered Species Act  |
|           |                            | of 1973, as amended, that   |
|           |                            | are within the Contractor's |
|           |                            | legal authority to          |
|           |                            | implement. The Contractor   |
|           |                            | shall comply with the       |
|           |                            | limitations or requirements |
|           |                            | imposed by environmental    |
|           |                            | documentation applicable to |
|           |                            | the Contractor and within   |
|           |                            | its legal authority to      |
|           |                            | implement regarding         |
|           |                            | specific activities,        |
|           |                            | including conversion of     |
|           |                            | Irrigation Water to M&I     |
|           |                            | Water. Nothing herein shall |
|           |                            | be construed to prevent the |
|           |                            | Contractor from challenging |
|           |                            | or seeking judicial relief  |
|           |                            | in a court of competent     |
|           |                            | jurisdiction with respect   |
|           |                            | to any biological opinion   |
|           |                            | or other environmental      |
|           |                            | documentation referred to   |
|           |                            | in this Article.            |
+-----------+----------------------------+-----------------------------+
| 8\. Rate  | 8\. (a) At the time and    | 7\. (a) The Contractor      |
| And       | place hereinafter stated   | shall make payments to the  |
| Method Of | the Contractor shall make  | United States as provided   |
| Payment   | payments to the United     | in this Article for all     |
| For Water | States in each year at the | Project Water shown in      |
|           | agricultural rate of \$2   | Exhibit A of this contract  |
|           | for each acre-foot of      | at Rates and Charges        |
|           | Project water shown in its | established in accordance   |
|           | Exhibit A or for such      | with: (i) the Secretary's   |
|           | lesser quantity to which   | then-current ratesetting    |
|           | that shown in said exhibit | policies for the Project;   |
|           | is reduced at the time and | and (ii) applicable         |
|           | in the manner provided in  | Reclamation law and         |
|           | subdivisions (b) or (c) of | associated rules and        |
|           | Article 3:                 | regulations, or policies:   |
|           | [Provided]{.underline},    | [Provided]{.underline},     |
|           | That if the Contractor     | That if the Contractor      |
|           | desires to use Project     | desires to use Project      |
|           | water for other than       | Water for other than        |
|           | agricultural use the rate  | agricultural use the Rates  |
|           | set forth above will be    | and Charges set forth above |
|           | adjusted by the            | will be adjusted by the     |
|           | Contracting Officer to the | Contracting Officer to the  |
|           | applicable rate for such   | applicable Rates and        |
|           | use. One-half of the total | Charges for such use. The   |
|           | amount of said payment     | Rates and Charges           |
|           | shall be made prior to     | applicable to the           |
|           | April 1 of each year and   | Contractor upon execution   |
|           | the remainder prior to     | of this Contract are set    |
|           | July 1 or such later date  | forth in Exhibit "D", as    |
|           | or dates as may be         | may be revised annually.    |
|           | specified by the United    | The Secretary's ratesetting |
|           | States in a written notice | policies for the Project    |
|           | to the Contractor:         | shall be amended, modified, |
|           | [Provided]{.underline},    | or superseded only through  |
|           | [however]{.underline},     | a public notice and comment |
|           | That if at any time during | procedure.                  |
|           | the year the quantity of   |                             |
|           | Project water diverted by  | \(b\) The Contracting       |
|           | the Contractor shall equal | Officer shall notify the    |
|           | the quantity for which     | Contractor of the Rates and |
|           | payment has been made, the | Charges as follows:         |
|           | Contractor shall pay for   |                             |
|           | the remaining quantity of  | \(1\) Prior to July 1 of    |
|           | such water as shown in     | each Year, the Contracting  |
|           | Exhibit A or the revision  | Officer shall provide the   |
|           | thereof in advance of any  | Contractor an estimate of   |
|           | further diversion of       | the Charges for Project     |
|           | Project water.             | Water that will be applied  |
|           |                            | to the period October 1, of |
|           | \(b\) Each payment to be   | the current Year, through   |
|           | made pursuant to           | September 30, of the        |
|           | subdivision (a) hereof     | following Year, and the     |
|           | shall be made at the       | basis for such estimate.    |
|           | office of the Bureau of    | The Contractor shall be     |
|           | Reclamation, United States | allowed not less than two   |
|           | Department of the          | (2) months to review and    |
|           | Interior, Sacramento,      | comment on such estimates.  |
|           | California, 95811, or at   | On or before September 15   |
|           | such other place as the    | of each Year, the           |
|           | United States may          | Contracting Officer shall   |
|           | designate in a written     | notify the Contractor in    |
|           | notice to the said         | writing of the Charges to   |
|           | Contractor. The Contractor | be in effect during the     |
|           | shall not be relieved of   | period October 1 of the     |
|           | the whole or any part of   | current Year, through       |
|           | its said obligation        | September 30, of the        |
|           | because of its failure,    | following Year, and such    |
|           | refusal, or neglect to     | notification shall revise   |
|           | divert the quantity of     | Exhibit "D."                |
|           | Project water as           |                             |
|           | hereinabove provided.      | \(2\) Prior to October 1 of |
|           |                            | each Year, the Contracting  |
|           |                            | Officer shall make          |
|           |                            | available to the Contractor |
|           |                            | an estimate of the Rates    |
|           |                            | for Project Water for the   |
|           |                            | following Year and the      |
|           |                            | computations and cost       |
|           |                            | allocations upon which      |
|           |                            | those Rates are based. The  |
|           |                            | Contractor shall be allowed |
|           |                            | not less than two (2)       |
|           |                            | months to review and        |
|           |                            | comment on such             |
|           |                            | computations and cost       |
|           |                            | allocations. By December 31 |
|           |                            | of each Year, the           |
|           |                            | Contracting Officer shall   |
|           |                            | provide the Contractor with |
|           |                            | the final Rates to be in    |
|           |                            | effect for the upcoming     |
|           |                            | Year, and such notification |
|           |                            | shall revise Exhibit "D".   |
|           |                            |                             |
|           |                            | \(c\) The Contractor shall  |
|           |                            | pay the United States for   |
|           |                            | Project Water in the        |
|           |                            | following manner:           |
|           |                            |                             |
|           |                            | \(1\) With respect to       |
|           |                            | Rates, prior to May 1 of    |
|           |                            | each Year, the Contractor   |
|           |                            | shall pay the United States |
|           |                            | one-half (1/2) the total    |
|           |                            | amount payable pursuant to  |
|           |                            | subdivision (a) of this     |
|           |                            | Article and the remainder   |
|           |                            | shall be paid prior to July |
|           |                            | 1 or such later date or     |
|           |                            | dates as may be specified   |
|           |                            | by the United States in a   |
|           |                            | written notice to the       |
|           |                            | Contractor:                 |
|           |                            | [Provided]{.underline},     |
|           |                            | [however]{.underline}, That |
|           |                            | if at any time during the   |
|           |                            | Year the amount of Project  |
|           |                            | Water diverted by the       |
|           |                            | Contractor shall equal the  |
|           |                            | amount for which payment    |
|           |                            | has been made, the          |
|           |                            | Contractor shall pay for    |
|           |                            | the remaining amount of     |
|           |                            | such water as shown in      |
|           |                            | Exhibit A in advance of any |
|           |                            | further diversion of        |
|           |                            | Project Water.              |
|           |                            |                             |
|           |                            | \(2\) With respect to       |
|           |                            | Charges, the Contractor     |
|           |                            | shall also make a payment   |
|           |                            | to the United States, in    |
|           |                            | addition to the Rate(s) in  |
|           |                            | subdivision (c)(1) of this  |
|           |                            | Article, at the Charges     |
|           |                            | then in effect, before the  |
|           |                            | end of the month following  |
|           |                            | the month of delivery or    |
|           |                            | transfer. The payments      |
|           |                            | shall be consistent with    |
|           |                            | the quantities of Project   |
|           |                            | Water delivered or          |
|           |                            | transferred. Adjustment for |
|           |                            | overpayment or underpayment |
|           |                            | of Charges shall be made    |
|           |                            | through the adjustment of   |
|           |                            | payments due to the United  |
|           |                            | States for Charges for the  |
|           |                            | next month. Any amount to   |
|           |                            | be paid for past due        |
|           |                            | payment of Charges shall be |
|           |                            | computed pursuant to        |
|           |                            | Article 12 of this          |
|           |                            | Contract.                   |
|           |                            |                             |
|           |                            | \(d\) Payments to be made   |
|           |                            | by the Contractor to the    |
|           |                            | United States under this    |
|           |                            | Contract may be paid from   |
|           |                            | any revenues available to   |
|           |                            | the Contractor.             |
|           |                            |                             |
|           |                            | (d1) (*Contractor           |
|           |                            | Specific*)All revenues      |
|           |                            | received by the United      |
|           |                            | States from the Contractor  |
|           |                            | relating to the delivery of |
|           |                            | Project Water or the        |
|           |                            | delivery of non-Project     |
|           |                            | water through Project       |
|           |                            | facilities shall be         |
|           |                            | allocated and applied in    |
|           |                            | accordance with Federal     |
|           |                            | Reclamation law and the     |
|           |                            | associated rules or         |
|           |                            | regulations, and the then   |
|           |                            | current Project ratesetting |
|           |                            | policies for Irrigation     |
|           |                            | Water.                      |
|           |                            |                             |
|           |                            | \(e\) The Contracting       |
|           |                            | Officer shall keep its      |
|           |                            | accounts pertaining to the  |
|           |                            | administration of the       |
|           |                            | financial terms and         |
|           |                            | conditions of its long-term |
|           |                            | water service and           |
|           |                            | settlement contracts, in    |
|           |                            | accordance with applicable  |
|           |                            | Federal standards, so as to |
|           |                            | reflect the application of  |
|           |                            | Project costs and revenues. |
|           |                            | The Contracting Officer     |
|           |                            | shall, each Year upon       |
|           |                            | request of the Contractor,  |
|           |                            | provide to the Contractor a |
|           |                            | detailed accounting of all  |
|           |                            | Project and Contractor      |
|           |                            | expense allocations, the    |
|           |                            | disposition of all Project  |
|           |                            | and Contractor revenues,    |
|           |                            | and a summary of all water  |
|           |                            | delivery information. The   |
|           |                            | Contracting Officer and the |
|           |                            | Contractor shall enter into |
|           |                            | good faith negotiations to  |
|           |                            | resolve any discrepancies   |
|           |                            | or disputes relating to     |
|           |                            | accountings, reports, or    |
|           |                            | information.                |
|           |                            |                             |
|           |                            | \(f\) The parties           |
|           |                            | acknowledge and agree that  |
|           |                            | the efficient               |
|           |                            | administration of this      |
|           |                            | Contract is their mutual    |
|           |                            | goal. Recognizing that      |
|           |                            | experience has demonstrated |
|           |                            | that mechanisms, policies,  |
|           |                            | and procedures used for     |
|           |                            | establishing Rates and      |
|           |                            | Charges and/or for making   |
|           |                            | and allocating payments,    |
|           |                            | other than those set forth  |
|           |                            | in this Article may be in   |
|           |                            | the mutual best interest of |
|           |                            | the parties, it is          |
|           |                            | expressly agreed that the   |
|           |                            | parties may enter into      |
|           |                            | agreements to modify the    |
|           |                            | mechanisms, policies, and   |
|           |                            | procedures for any of those |
|           |                            | purposes while this         |
|           |                            | Contract is in effect       |
|           |                            | without amendment of this   |
|           |                            | Contract.                   |
|           |                            |                             |
|           |                            | \(g\) For the term of this  |
|           |                            | contract, Rates under the   |
|           |                            | respective ratesetting      |
|           |                            | policies for the Project    |
|           |                            | will be established to      |
|           |                            | recover only reimbursable   |
|           |                            | operation and maintenance   |
|           |                            | (including any deficits)    |
|           |                            | and capital costs of the    |
|           |                            | Project, as those terms are |
|           |                            | used in the then-current    |
|           |                            | Project ratesetting         |
|           |                            | policies, and interest,     |
|           |                            | where appropriate, except   |
|           |                            | in instances where a        |
|           |                            | minimum Rate is applicable  |
|           |                            | in accordance with the      |
|           |                            | relevant Project            |
|           |                            | ratesetting policy.         |
|           |                            | Proposed changes of         |
|           |                            | significance in practices   |
|           |                            | which implement the         |
|           |                            | ratesetting policies for    |
|           |                            | the Project will not be     |
|           |                            | implemented until the       |
|           |                            | Contracting Officer has     |
|           |                            | provided the Contractor an  |
|           |                            | opportunity to discuss the  |
|           |                            | nature, need, and impact of |
|           |                            | the proposed change.        |
|           |                            |                             |
|           |                            | \(h\) Except as provided in |
|           |                            | subsections 3405(a)(1)(B)   |
|           |                            | and 3405(f) of the CVPIA,   |
|           |                            | the Rates for Project Water |
|           |                            | transferred, exchanged, or  |
|           |                            | otherwise disposed of , by  |
|           |                            | the Contractor shall be the |
|           |                            | Contractor's Rates adjusted |
|           |                            | upward or downward to       |
|           |                            | reflect the changed costs   |
|           |                            | of delivery (if any) of the |
|           |                            | transferred, exchanged, or  |
|           |                            | otherwise disposed of       |
|           |                            | Project Water to the        |
|           |                            | transferee's point of       |
|           |                            | delivery in accordance with |
|           |                            | the then-current            |
|           |                            | ratesetting policies for    |
|           |                            | the Project. If the         |
|           |                            | Contractor is receiving     |
|           |                            | lower Rates and Charges     |
|           |                            | because of inability to pay |
|           |                            | and is transferring,        |
|           |                            | exchanging, or otherwise    |
|           |                            | disposing of Project Water  |
|           |                            | to another entity whose     |
|           |                            | Rates and Charges are not   |
|           |                            | adjusted due to inability   |
|           |                            | to pay, the Rates and       |
|           |                            | Charges for transferred,    |
|           |                            | exchanged, or otherwise     |
|           |                            | disposed of Project Water   |
|           |                            | shall be the Contractor's   |
|           |                            | Rates and Charges           |
|           |                            | unadjusted for ability to   |
|           |                            | pay.                        |
|           |                            |                             |
|           |                            | \(i\) Pursuant to the Act   |
|           |                            | of October 27, 1986 (100    |
|           |                            | Stat. 3050), the            |
|           |                            | Contracting Officer is      |
|           |                            | authorized to adjust        |
|           |                            | determinations of ability   |
|           |                            | to pay every five (5)       |
|           |                            | years.                      |
|           |                            |                             |
|           |                            | \(j\) Each payment to be    |
|           |                            | made pursuant to            |
|           |                            | subdivisions (a) and (b) of |
|           |                            | this Article shall be made  |
|           |                            | at the office of the Bureau |
|           |                            | of Reclamation, Mid-Pacific |
|           |                            | Region, File No. 11546, P.O |
|           |                            | Box 6000, San Francisco,    |
|           |                            | California, 94160-1546, or  |
|           |                            | at such other place as the  |
|           |                            | United States may designate |
|           |                            | in a written notice to the  |
|           |                            | said Contractor. Payments   |
|           |                            | shall be made by cash       |
|           |                            | transaction, wire, or any   |
|           |                            | other mechanism as may be   |
|           |                            | agreed to in writing by the |
|           |                            | Contractor and the          |
|           |                            | Contracting Officer. In     |
|           |                            | event there should be a     |
|           |                            | default in the payment of   |
|           |                            | the amount due, the         |
|           |                            | delinquent payment          |
|           |                            | provisions of Article 12    |
|           |                            | shall apply. The Contractor |
|           |                            | shall not be relieved of    |
|           |                            | the whole or any part of    |
|           |                            | its said obligation by, on  |
|           |                            | account of, or              |
|           |                            | notwithstanding, as the     |
|           |                            | case may be:                |
|           |                            |                             |
|           |                            | \(1\) Its failure, refusal, |
|           |                            | or neglect to divert the    |
|           |                            | quantity of Project Water   |
|           |                            | as hereinabove provided;    |
|           |                            |                             |
|           |                            | \(2\) The default in        |
|           |                            | payment to it by any water  |
|           |                            | user of assessments, tolls, |
|           |                            | or other charges levied by  |
|           |                            | or owing to said            |
|           |                            | Contractor;                 |
|           |                            |                             |
|           |                            | \(3\) Any judicial          |
|           |                            | determination that any      |
|           |                            | assessment, toll, or other  |
|           |                            | charge referred to in       |
|           |                            | subsection 8(c)(2) of this  |
|           |                            | Contract is irregular,      |
|           |                            | void, or ineffectual; or    |
|           |                            |                             |
|           |                            | \(4\) Any injunctive        |
|           |                            | process enjoining or        |
|           |                            | restraining the Contractor  |
|           |                            | from making or collecting   |
|           |                            | any such assessment, toll,  |
|           |                            | or other charge referred to |
|           |                            | in subsection 8(c)(2) of    |
|           |                            | this Contract.              |
+-----------+----------------------------+-----------------------------+
| 9\.       | 9\. (a) During the term of | 8\. (a) During the term of  |
| Agreement | this contract and any      | this contract and any       |
| On Water  | renewal thereof:           | renewals thereof:           |
| Q         |                            |                             |
| uantities | \(1\) It shall constitute  | \(1\) It shall constitute   |
|           | full agreement as between  | full agreement as between   |
|           | the United States and the  | the United States and the   |
|           | Contractor as to the       | Contractor as to the        |
|           | quantities of water and    | quantities of water and the |
|           | the allocation thereof     | allocation thereof between  |
|           | between base supply and    | Base Supply and Project     |
|           | Project water which may be | Water which may be diverted |
|           | diverted by the Contractor | by the Contractor from the  |
|           | from the Sacramento River  | Sacramento River for        |
|           | for beneficial use on the  | beneficial use on the land  |
|           | land shown on Exhibit B    | shown on Exhibit B which    |
|           | which said diversion, use, | said diversion, use, and    |
|           | and allocation shall not   | allocation shall not be     |
|           | be disturbed so long as    | disturbed so long as the    |
|           | the Contractor shall       | Contractor shall fulfill    |
|           | fulfill all of its         | all of its obligations      |
|           | obligations hereunder;     | hereunder;                  |
|           |                            |                             |
|           | \(2\) The Contractor shall | \(2\) The Contractor shall  |
|           | not claim any right        | not claim any right against |
|           | against the United States  | the United States in        |
|           | in conflict with the       | conflict with the           |
|           | provisions hereof.         | provisions hereof.          |
|           |                            |                             |
|           | \(b\) Nothing herein       | \(b\) Nothing herein        |
|           | contained is intended to   | contained is intended to or |
|           | or does limit rights of    | does limit rights of the    |
|           | the Contractor against     | Contractor against others   |
|           | others than the United     | than the United States or   |
|           | States or the United       | of the United States        |
|           | States against any person  | against any person other    |
|           | other than the Contractor: | than the Contractor:        |
|           | [Provided]{.underline},    | [Provided]{.underline},     |
|           | [however]{.underline},     | [however]{.underline}, That |
|           | That in the event the      | in the event the            |
|           | Contractor, the United     | Contractor, the United      |
|           | States, or any other       | States, or any other person |
|           | person shall become a      | shall become a party to a   |
|           | party to a general         | general adjudication of     |
|           | adjudication of rights to  | rights to the use of water  |
|           | the use of water of the    | of the Sacramento River     |
|           | Sacramento River system,   | system, this contract shall |
|           | this contract shall not    | not jeopardize the rights   |
|           | jeopardize the rights or   | or position of either party |
|           | position of either party   | hereto or of any other      |
|           | hereto or of any other     | person and the rights of    |
|           | person and the rights of   | all such persons in respect |
|           | all such persons in        | to the use of such water    |
|           | respect to the use of such | shall be determined in such |
|           | water shall be determined  | proceedings the same as if  |
|           | in such proceedings the    | this contract had not been  |
|           | same as if this contract   | entered into, and if final  |
|           | had not been entered into, | judgment in any such        |
|           | and if final judgment in   | general adjudication shall  |
|           | any such general           | determine that the rights   |
|           | adjudication shall         | of the parties hereto are   |
|           | determine that the rights  | different from the rights   |
|           | of the parties hereto are  | as assumed herein, the      |
|           | different from the rights  | United States shall submit  |
|           | as assumed herein, the     | it to the Contractor an     |
|           | United States shall submit | amendment to give effect to |
|           | to the Contractor an       | such judgment and the       |
|           | amendment to give effect   | contract shall be deemed to |
|           | to such judgment and the   | have been amended           |
|           | contract shall be deemed   | accordingly unless within   |
|           | to have been amended       | sixty (60) days after       |
|           | accordingly unless within  | submission of such          |
|           | 60 days after submission   | amendment to the            |
|           | of such amendment to the   | Contractor, the Contractor  |
|           | Contractor, the Contractor | elects to terminate the     |
|           | elects to terminate the    | contract or within the same |
|           | contract or within the     | period of time the parties  |
|           | same period of time the    | agree upon mutually         |
|           | parties agree upon         | satisfactory amendments to  |
|           | satisfactory amendments to | give effect to such         |
|           | give effect to such        | judgment:                   |
|           | judgment.                  | [Provided]{.underline},     |
|           |                            | [further]{.underline}, That |
|           | \(c\) In the event this    | if, during the term of this |
|           | contract terminates, the   | Contract, the Contractor's  |
|           | rights of the parties to   | or the United States' water |
|           | thereafter divert and use  | rights are adjusted or      |
|           | water shall exist as if    | affected, or the            |
|           | this contract had not been | responsibility to meet      |
|           | entered into. The fact     | flow, water quality and/or  |
|           | that, as a compromise      | environmental requirements  |
|           | settlement of a            | under those water rights is |
|           | controversy as to the      | modified (e.g., changes to  |
|           | respective rights of the   | the Delta Water Quality     |
|           | parties to divert and use  | Control Plan and associated |
|           | water and the yield of     | water right actions), by or |
|           | such rights during the     | through any final           |
|           | term hereof, this contract | administrative or judicial  |
|           | places a limit on the      | proceeding, the Contractor  |
|           | total supply to be         | and the United States shall |
|           | diverted annually by the   | negotiate appropriate       |
|           | Contractor during the      | adjustments to this         |
|           | contract term and          | contract.                   |
|           | segregates it into base    |                             |
|           | supply and Project water   | \(c\) In the event this     |
|           | shall not jeopardize the   | contract terminates, the    |
|           | rights or position of      | rights of the parties to    |
|           | either party with respect  | thereafter divert and use   |
|           | to its water rights or the | water shall exist as if     |
|           | yield thereof at all times | this contract had not been  |
|           | after the contract         | entered into; and the fact  |
|           | terminates. It is further  | that as a compromise        |
|           | agreed that the Contractor | settlement of a controversy |
|           | at all times will first    | as to the respective rights |
|           | use water to the use of    | of the parties to divert    |
|           | which it is entitled by    | and use water and the yield |
|           | virtue of its own water    | of such rights during the   |
|           | rights, and neither the    | term hereof, this contract  |
|           | provisions of this         | places a limit on the       |
|           | contract, action taken     | Contract Total to be        |
|           | thereunder, nor payments   | diverted annually by the    |
|           | made thereunder to the     | Contractor during the       |
|           | United States by the       | contract term and           |
|           | Contractor shall be        | segregates it into Base     |
|           | construed as an admission  | Supply and Project Water    |
|           | that any part of the water | shall not jeopardize the    |
|           | used by the Contractor     | rights or position of       |
|           | during the term of this    | either party with respect   |
|           | contract was in fact water | to its water rights or the  |
|           | to which it would not have | yield thereof at all times  |
|           | been entitled under water  | after the contract          |
|           | rights owned by it nor     | terminates. It is further   |
|           | shall receipt of payments  | agreed that the Contractor  |
|           | thereunder by the United   | at all times will first use |
|           | States from the Contractor | water to the use of which   |
|           | be construed as an         | it is entitled by virtue of |
|           | admission that any part of | its own water rights, and   |
|           | the water used by the      | neither the provisions of   |
|           | Contractor during the term | this contract, action taken |
|           | of this contract was in    | thereunder, nor payments    |
|           | fact water to which the    | made thereunder to the      |
|           | District would have been   | United States by the        |
|           | entitled under water       | Contractor shall be         |
|           | rights owned by it.        | construed as an admission   |
|           |                            | that any part of the water  |
|           |                            | used by the Contractor      |
|           |                            | during the term of this     |
|           |                            | contract was in fact water  |
|           |                            | to which it would not have  |
|           |                            | been entitled under water   |
|           |                            | rights owned by it nor      |
|           |                            | shall receipt of payments   |
|           |                            | thereunder by the United    |
|           |                            | States from the Contractor  |
|           |                            | be construed as an          |
|           |                            | admission that any part of  |
|           |                            | the water used by the       |
|           |                            | Contractor during the term  |
|           |                            | of this contract was in     |
|           |                            | fact water to which it      |
|           |                            | would have been entitled    |
|           |                            | under water rights owned by |
|           |                            | it.                         |
+-----------+----------------------------+-----------------------------+
| 10\.      | 10\. (a) All water         | 9\. (a) All water diverted  |
| Me        | diverted by the Contractor | by the Contractor from      |
| asurement | from Sacramento River will | Sacramento River will be    |
| Of Water  | be diverted at the         | diverted at the existing    |
|           | existing point or points   | point or points of          |
|           | of diversion shown on      | diversion shown on Exhibit  |
|           | Exhibit A or at such other | A or at such other points   |
|           | points as may be mutually  | as may be mutually agreed   |
|           | agreed upon in writing by  | upon in writing by the      |
|           | the Contracting Officer    | Contracting Officer and the |
|           | and the Contractor.        | Contractor.                 |
|           |                            |                             |
|           | \(b\) All water diverted   | \(b\) All water diverted    |
|           | from the Sacramento River  | from the Sacramento River   |
|           | pursuant to this contract  | pursuant to this contract   |
|           | will be measured or caused | will be measured or caused  |
|           | to be measured by the      | to be measured by the       |
|           | United States at each      | United States at each point |
|           | point of diversion with    | of diversion with existing  |
|           | existing equipment or      | equipment or equipment to   |
|           | equipment to be installed, | be installed, operated, and |
|           | operated, and maintained   | maintained by the United    |
|           | by the United States,      | States, and/or others,      |
|           | and/or others, under       | under contract with and at  |
|           | contract with and at the   | the option of the United    |
|           | option of the United       | States. The equipment and   |
|           | States. The equipment and  | methods used to make such   |
|           | methods used to make such  | measurement shall be in     |
|           | measurement shall be in    | accordance with sound       |
|           | accordance with sound      | engineering practices. Upon |
|           | engineering practices.     | request of the Contractor,  |
|           | Upon request of the        | the accuracy of such        |
|           | Contractor, the accuracy   | measurements will be        |
|           | of such measurements will  | investigated by the         |
|           | be investigated by the     | Contracting Officer and any |
|           | Contracting Officer and    | errors appearing therein    |
|           | any errors appearing       | will be corrected.          |
|           | therein will be corrected. |                             |
|           |                            | \(c\) The right of ingress  |
|           | \(c\) The right of ingress | to and egress from all      |
|           | to and egress from all     | points of diversion is      |
|           | points of diversion is     | hereby granted to all       |
|           | hereby granted to all      | authorized employees of the |
|           | authorized employees of    | United States. The          |
|           | the United States. The     | Contractor also hereby      |
|           | Contractor also hereby     | grants to the United States |
|           | grants to the United       | the right to install,       |
|           | States the right to        | operate, maintain and       |
|           | install, operate, maintain | replace such equipment on   |
|           | and replace such equipment | diversion or carriage       |
|           | on diversion or carriage   | facilities at each point of |
|           | facilities at each point   | diversion as the            |
|           | of diversion as the        | Contracting Officer deems   |
|           | Contracting Officer deems  | necessary.                  |
|           | necessary.                 |                             |
|           |                            | \(d\) The Contractor shall  |
|           | \(d\) The Contractor shall | not modify, alter, remove,  |
|           | not modify, alter, remove, | or replace diversion        |
|           | or replace diversion       | facilities or do any other  |
|           | facilities or do any other | act which would alter the   |
|           | act which would alter the  | effectiveness or accuracy   |
|           | effectiveness or accuracy  | of the measuring equipment  |
|           | of the measuring equipment | installed by the United     |
|           | installed by the United    | States or its               |
|           | States or its              | representatives unless and  |
|           | representatives unless and | until the Contracting       |
|           | until the Contracting      | Officer has been notified   |
|           | Officer has been notified  | with due diligence and has  |
|           | with due diligence and has | been given an opportunity   |
|           | been given an opportunity  | to modify such measuring    |
|           | to modify such measuring   | equipment in such manner as |
|           | equipment in such manner   | may be necessary or         |
|           | as may be necessary or     | appropriate. In the event   |
|           | appropriate. In the event  | of an emergency the         |
|           | of an emergency the        | Contractor shall notify the |
|           | Contractor shall notify    | United States within a      |
|           | the United States within a | reasonable time thereafter  |
|           | reasonable time thereafter | as to the existence of the  |
|           | as to the existence of the | emergency and the nature    |
|           | emergency and the nature   | and extent of such          |
|           | and extent of such         | modification, alteration,   |
|           | modification, alteration,  | removal, or replacement of  |
|           | removal, or replacement of | diversion facilities.       |
|           | diversion facilities.      |                             |
|           |                            | \(e\) The Contractor shall  |
|           |                            | pay the United States for   |
|           |                            | the costs to repair,        |
|           |                            | relocate, or replace        |
|           |                            | measurement equipment when  |
|           |                            | the Contractor modifies,    |
|           |                            | alters, removes, or         |
|           |                            | replaces diversion or       |
|           |                            | carriage facilities.        |
|           |                            |                             |
|           |                            | \(f\) (*Contractor          |
|           |                            | Specific*) By               |
|           |                            | \_\_\_\_\_\_\_\_\           |
|           |                            | _\_\_\_\_\_\_\_\_\_\[DATE\] |
|           |                            | \_\_\_\_\_\_\_\_, the       |
|           |                            | Contractor shall ensure     |
|           |                            | that, unless the Contractor |
|           |                            | establishes an alternative  |
|           |                            | measurement program         |
|           |                            | satisfactory to the         |
|           |                            | Contracting Officer, all    |
|           |                            | surface water delivered for |
|           |                            | irrigation purposes on the  |
|           |                            | lands delineated on Exhibit |
|           |                            | B is measured at each       |
|           |                            | agricultural turnout. The   |
|           |                            | water measuring devices or  |
|           |                            | water measuring methods of  |
|           |                            | comparable effectiveness    |
|           |                            | must be acceptable to the   |
|           |                            | Contracting Officer. The    |
|           |                            | Contractor shall be         |
|           |                            | responsible for installing, |
|           |                            | operating, and maintaining  |
|           |                            | and repairing all such      |
|           |                            | measuring devices and       |
|           |                            | implementing all such water |
|           |                            | measuring methods at no     |
|           |                            | cost to the United States.  |
|           |                            | The Contractor shall inform |
|           |                            | the Contracting Officer in  |
|           |                            | writing by April 30 of each |
|           |                            | Year of the monthly volume  |
|           |                            | of surface water delivered  |
|           |                            | to the lands delineated on  |
|           |                            | Exhibit B during the        |
|           |                            | previous Year. This         |
|           |                            | information will be used by |
|           |                            | Reclamation to satisfy the  |
|           |                            | water measurement           |
|           |                            | requirements of the         |
|           |                            | Contractor's water          |
|           |                            | conservation plan, as set   |
|           |                            | forth in Article 28 of this |
|           |                            | Contract.                   |
|           |                            |                             |
|           |                            | \(g\) All new surface water |
|           |                            | delivery systems installed  |
|           |                            | within the lands delineated |
|           |                            | on Exhibit B after the      |
|           |                            | effective date of this      |
|           |                            | Contract shall also comply  |
|           |                            | with the measurement        |
|           |                            | provisions described in     |
|           |                            | subdivision (a) of this     |
|           |                            | Article.                    |
+-----------+----------------------------+-----------------------------+
| 11\.      | 11\. (a) The Contracting   | 10\. The parties agree that |
| Rules,    | Officer shall have the     | the delivery of Project     |
| Reg       | right to make, after an    | Water for irrigation use or |
| ulations, | opportunity has been       | use of Federal facilities   |
| And       | offered to the Contractor  | pursuant to this Contract   |
| Deter     | for consultation, rules    | is subject to Federal       |
| minations | and regulations consistent | Reclamation law, including  |
|           | with the provisions of     | but not limited to, the     |
| (Rules    | this contract, the laws of | Reclamation Reform Act of   |
| And       | the United States and the  | 1982 (43 U.S.C.390aa et     |
| Reg       | State of California, and   | seq.), as amended and       |
| ulations) | to add to or modify them   | supplemented, and the rules |
|           | as may be deemed proper    | and regulations promulgated |
|           | and necessary to carry out | by the Secretary of the     |
|           | this contract, and to      | Interior under Federal      |
|           | supply necessary details   | Reclamation law.            |
|           | of its administration      |                             |
|           | which are not covered by   |                             |
|           | express provisions of this |                             |
|           | contract. The Contractor   |                             |
|           | shall observe such rules   |                             |
|           | and regulations.           |                             |
|           |                            |                             |
|           | \(b\) Where the terms of   |                             |
|           | this contract provide for  |                             |
|           | action to be based upon    |                             |
|           | the opinion or             |                             |
|           | determination of either    |                             |
|           | party to this contract,    |                             |
|           | whether or not stated to   |                             |
|           | be conclusive, said terms  |                             |
|           | shall not be construed as  |                             |
|           | permitting such action to  |                             |
|           | be predicated upon         |                             |
|           | arbitrary, capricious, or  |                             |
|           | unreasonable opinions or   |                             |
|           | determinations. In the     |                             |
|           | event the Contractor       |                             |
|           | questions any factual      |                             |
|           | determination made by the  |                             |
|           | Contracting Officer, the   |                             |
|           | findings as to the facts   |                             |
|           | shall be made by the       |                             |
|           | Secretary only after       |                             |
|           | consultation with the      |                             |
|           | Contractor and shall be    |                             |
|           | conclusive upon the        |                             |
|           | parties.                   |                             |
|           |                            |                             |
|           | \(c\) In the event that    |                             |
|           | the United States, as a    |                             |
|           | result of litigation or    |                             |
|           | agreement, or failure to   |                             |
|           | require an agreement,      |                             |
|           | gives substantially more   |                             |
|           | favorable treatment to any |                             |
|           | other diverter from the    |                             |
|           | Sacramento River under     |                             |
|           | similar circumstances than |                             |
|           | that accorded under this   |                             |
|           | contract to the            |                             |
|           | Contractor, the United     |                             |
|           | States agrees to           |                             |
|           | renegotiate this contract  |                             |
|           | to provide comparable      |                             |
|           | treatment to the           |                             |
|           | Contractor hereunder.      |                             |
+-----------+----------------------------+-----------------------------+
| 12\.      | 12\. (a) The obligation of | (*Std. Article*)            |
| General   | the Contractor to pay the  |                             |
| Obl       | United States as provided  | 11\. (a) The obligation of  |
| igation - | in this contract is a      | the Contractor to pay the   |
| Benefits  | general obligation of the  | United States as provided   |
| Co        | Contractor notwithstanding | in this Contract is a       |
| nditioned | the manner in which the    | general obligation of the   |
| Upon      | obligation may be          | Contractor notwithstanding  |
| Payment   | distributed among the      | the manner in which the     |
|           | Contractor's water users   | obligation may be           |
|           | and notwithstanding the    | distributed among the       |
|           | default of individual      | Contractor\'s water users   |
|           | water users in their       | and notwithstanding the     |
|           | obligation to the          | default of individual water |
|           | Contractor.                | users in their obligations  |
|           |                            | to the Contractor.          |
|           | \(b\) The payment of       |                             |
|           | charges becoming due       | \(b\) The payment of        |
|           | hereunder is a condition   | charges becoming due        |
|           | precedent to receiving     | hereunder is a condition    |
|           | benefits under this        | precedent to receiving      |
|           | contract.                  | benefits under this         |
|           |                            | Contract. The United States |
|           |                            | shall not make water        |
|           |                            | available to the Contractor |
|           |                            | through Project facilities  |
|           |                            | during any period in which  |
|           |                            | the Contractor may be in    |
|           |                            | arrears in the advance      |
|           |                            | payment of water rates due  |
|           |                            | the United States. The      |
|           |                            | Contractor shall not        |
|           |                            | furnish water made          |
|           |                            | available pursuant to this  |
|           |                            | Contract for lands or       |
|           |                            | parties which are in        |
|           |                            | arrears in the advance      |
|           |                            | payment of water rates      |
|           |                            | levied or established by    |
|           |                            | the Contractor.             |
|           |                            |                             |
|           |                            | \(c\) With respect to       |
|           |                            | subdivision (b) of this     |
|           |                            | Article, the Contractor     |
|           |                            | shall have no obligation to |
|           |                            | require advance payment for |
|           |                            | water rates which it        |
|           |                            | levies.                     |
+-----------+----------------------------+-----------------------------+
| 13\.      | 13\. The Contractor shall  | (*Standard Article*)        |
| Penalty   | pay a penalty on           |                             |
| For       | installments or charges    | 12\. (a) The Contractor     |
| D         | which become delinquent    | shall be subject to         |
| elinquent | computed at the rate of 1% | interest, administrative    |
| Payments  | per month of the amount of | and penalty charges on      |
| (Charges  | such delinquent            | delinquent installments or  |
| For       | installments or charges    | payments. When a payment is |
| D         | for each day from such     | not received by the due     |
| elinquent | delinquency until paid:    | date, the Contractor shall  |
| Payments) | [Provided]{.underline},    | pay an interest charge for  |
|           | That no penalty shall be   | each day the payment is     |
|           | charged to the Contractor  | delinquent beyond the due   |
|           | unless such delinquency    | date. When a payment        |
|           | continues for more that 30 | becomes sixty (60) days     |
|           | days in which event the    | delinquent, the Contractor  |
|           | penalty shall accrue from  | shall pay an administrative |
|           | the initial date of        | charge to cover additional  |
|           | delinquency.               | costs of billing and        |
|           |                            | processing the delinquent   |
|           |                            | payment. When a payment is  |
|           |                            | delinquent ninety (90) days |
|           |                            | or more, the Contractor     |
|           |                            | shall pay an additional     |
|           |                            | penalty charge of six (6%)  |
|           |                            | percent per year for each   |
|           |                            | day the payment is          |
|           |                            | delinquent beyond the due   |
|           |                            | date. Further, the          |
|           |                            | Contractor shall pay any    |
|           |                            | fees incurred for debt      |
|           |                            | collection services         |
|           |                            | associated with a           |
|           |                            | delinquent payment.         |
|           |                            |                             |
|           |                            | \(b\) The interest charge   |
|           |                            | rate shall be the greater   |
|           |                            | of the rate prescribed      |
|           |                            | quarterly in the Federal    |
|           |                            | Register by the Department  |
|           |                            | of the Treasury for         |
|           |                            | application to overdue      |
|           |                            | payments, or the interest   |
|           |                            | rate of one-half of one     |
|           |                            | (0.5%) percent per month    |
|           |                            | prescribed by Section 6 of  |
|           |                            | the Reclamation Project Act |
|           |                            | of 1939 (Public Law         |
|           |                            | 76-260). The interest       |
|           |                            | charge rate shall be        |
|           |                            | determined as of the due    |
|           |                            | date and remain fixed for   |
|           |                            | the duration of the         |
|           |                            | delinquent period.          |
|           |                            |                             |
|           |                            | \(c\) When a partial        |
|           |                            | payment on a delinquent     |
|           |                            | account is received, the    |
|           |                            | amount received shall be    |
|           |                            | applied, first to the       |
|           |                            | penalty, second to the      |
|           |                            | administrative charges,     |
|           |                            | third to the accrued        |
|           |                            | interest, and finally to    |
|           |                            | the overdue payment.        |
+-----------+----------------------------+-----------------------------+
| 14\.      | 14\. The operation and     | 13\. The operation and      |
| Quality   | maintenance of Project     | maintenance of Project      |
| Of Water  | facilities shall be        | facilities shall be         |
|           | performed in such manner   | performed in such manner as |
|           | as is practicable to       | is practicable to maintain  |
|           | maintain the quality of    | the quality of raw water    |
|           | raw water made available   | made available through such |
|           | through such facilities at | facilities at the highest   |
|           | the highest level          | level reasonably attainable |
|           | reasonably attainable as   | as determined by the        |
|           | determined by the          | Contracting Officer. The    |
|           | Contracting Officer. The   | United States does not      |
|           | United States does not     | warrant the quality of      |
|           | warrant the quality of     | water and is under no       |
|           | water and is under no      | obligation to construct or  |
|           | obligation to construct or | furnish water treatment     |
|           | furnish water treatment    | facilities to maintain or   |
|           | facilities to maintain or  | better the quality of       |
|           | better the quality of      | water.                      |
|           | water.                     |                             |
+-----------+----------------------------+-----------------------------+
| 15\.      | 15\. The Contractor shall, | 14\. The Contractor, in     |
| Water     | within its legal           | carrying out this Contract, |
| Pollution | authority, comply fully    | shall comply fully with all |
| Control   | with all applicable        | applicable water and air    |
|           | Federal laws, orders, and  | pollution laws and          |
| (Water    | regulations, and the laws  | regulations of the United   |
| And Air   | of the State of            | States and the State of     |
| Pollution | California, all as         | California, and shall       |
| Control)  | administered by            | obtain all required permits |
|           | appropriate authorities,   | or licenses from the        |
|           | concerning the pollution   | appropriate Federal, State, |
|           | of streams, reservoirs,    | or local authorities.       |
|           | groundwater, or water      |                             |
|           | courses with respect to    |                             |
|           | thermal pollution or the   |                             |
|           | discharge of refuse,       |                             |
|           | garbage, sewage effluent,  |                             |
|           | industrial waste, oil,     |                             |
|           | mine tailings, mineral     |                             |
|           | salts, or other            |                             |
|           | pollutants.                |                             |
+-----------+----------------------------+-----------------------------+
| 16\.      | 16\. During the            | (*Standard Article*)        |
| Equal     | performance of this        |                             |
| Op        | Contract, the Contractor   | 15\. During the performance |
| portunity | agrees as follows:         | of this Contract, the       |
|           |                            | Contractor agrees as        |
|           | \(a\) The Contractor will  | follows:                    |
|           | not discriminate against   |                             |
|           | any employee or applicant  | \(a\) The Contractor will   |
|           | for employment because of  | not discriminate against    |
|           | race, color, religion,     | any employee or applicant   |
|           | sex, or national origin.   | for employment because of   |
|           | The Contractor will take   | race, color, religion, sex, |
|           | affirmative action to      | or national origin. The     |
|           | ensure that applicants are | Contractor will take        |
|           | employed, and that         | affirmative action to       |
|           | employees are treated      | ensure that applicants are  |
|           | during employment, without | employed, and that          |
|           | regard to their race,      | employees are treated       |
|           | color, religion, sex, or   | during employment, without  |
|           | national origin. Such      | regard to their race,       |
|           | action shall include, but  | color, religion, sex, or    |
|           | not be limited to, the     | national origin. Such       |
|           | following: Employment,     | action shall include, but   |
|           | upgrading, demotion, or    | not be limited to, the      |
|           | transfer; recruitment or   | following: Employment,      |
|           | recruitment advertising;   | upgrading, demotion, or     |
|           | layoff or termination,     | transfer; recruitment or    |
|           | rates of payment or other  | recruitment advertising;    |
|           | forms of compensation; and | layoff or termination,      |
|           | selection for training,    | rates of payment or other   |
|           | including apprenticeship.  | forms of compensation; and  |
|           | The Contractor agrees to   | selection for training,     |
|           | post in conspicuous        | including apprenticeship.   |
|           | places, available to       | The Contractor agrees to    |
|           | employees and applicants   | post in conspicuous places, |
|           | for employment, notices to | available to employees and  |
|           | be provided by the         | applicants for employment,  |
|           | Contracting Officer        | notices to be provided by   |
|           | setting forth the          | the Contracting Officer     |
|           | provisions of this Equal   | setting forth the           |
|           | Opportunity clause.        | provisions of this          |
|           |                            | nondiscrimination clause.   |
|           | \(b\) The Contractor will, |                             |
|           | in all solicitations or    | \(b\) The Contractor will,  |
|           | advertisements for         | in all solicitations or     |
|           | employees placed by or on  | advertisements for          |
|           | behalf of the Contractor,  | employees placed by or on   |
|           | state that all qualified   | behalf of the Contractor,   |
|           | applicants will receive    | state that all qualified    |
|           | consideration for          | applicants will receive     |
|           | employment without         | consideration for           |
|           | discrimination because of  | employment without          |
|           | race, color, religion,     | discrimination because of   |
|           | sex, or national origin.   | race, color, religion, sex, |
|           |                            | or national origin.         |
|           | \(c\) The Contractor will  |                             |
|           | send to each labor union   | \(c\) The Contractor will   |
|           | or representative of       | send to each labor union or |
|           | workers with which it has  | representative of workers   |
|           | a collective bargaining    | with which it has a         |
|           | agreement or other         | collective bargaining       |
|           | contract or understanding, | agreement or other contract |
|           | a notice, to be provided   | or understanding, a notice, |
|           | by the Contracting         | to be provided by the       |
|           | Officer, advising the      | Contracting Officer,        |
|           | labor union or workers\'   | advising the said labor     |
|           | representative of the      | union or workers\'          |
|           | Contractor\'s commitments  | representative of the       |
|           | under this Equal           | Contractor\'s commitments   |
|           | Opportunity clause, and    | under Section 202 of        |
|           | shall post copies of the   | Executive Order 11246 of    |
|           | notice in conspicuous      | September 24, 1965, and     |
|           | places available to        | shall post copies of the    |
|           | employees and applicants   | notice in conspicuous       |
|           | for employment.            | places available to         |
|           |                            | employees and applicants    |
|           | \(d\) The Contractor will  | for employment.             |
|           | comply with all provisions |                             |
|           | of Executive Order No.     | \(d\) The Contractor will   |
|           | 11246 of September 24,     | comply with all provisions  |
|           | 1965, as amended, and of   | of Executive Order No.      |
|           | the rules, regulations,    | 11246 of September 24,      |
|           | and relevant orders of the | 1965, as amended, and of    |
|           | Secretary of Labor.        | the rules, regulations, and |
|           |                            | relevant orders of the      |
|           | \(e\) The Contractor will  | Secretary of Labor.         |
|           | furnish all information    |                             |
|           | and reports required by    | \(e\) The Contractor will   |
|           | said amended Executive     | furnish all information and |
|           | Order and by the rules,    | reports required by said    |
|           | regulations, and orders of | amended Executive Order and |
|           | the Secretary of Labor, or | by the rules, regulations,  |
|           | pursuant thereto, and will | and orders of the Secretary |
|           | permit access to its       | of Labor, or pursuant       |
|           | books, records, and        | thereto, and will permit    |
|           | accounts by the            | access to its books,        |
|           | Contracting Officer and    | records, and accounts by    |
|           | the Secretary of Labor for | the Contracting Officer and |
|           | purposes of investigation  | the Secretary of Labor for  |
|           | to ascertain compliance    | purposes of investigation   |
|           | with such rules,           | to ascertain compliance     |
|           | regulations, and orders.   | with such rules,            |
|           |                            | regulations, and orders.    |
|           | \(f\) In the event of the  |                             |
|           | Contractor\'s              | \(f\) In the event of the   |
|           | noncompliance with the     | Contractor\'s noncompliance |
|           | Equal Opportunity clause   | with the nondiscrimination  |
|           | of this contract or with   | clauses of this Contract or |
|           | any of the said rules,     | with any of the said rules, |
|           | regulations, or orders,    | regulations, or orders,     |
|           | this contract may be       | this Contract may be        |
|           | canceled, terminated, or   | canceled, terminated, or    |
|           | suspended, in whole or in  | suspended, in whole or in   |
|           | part, and the Contractor   | part, and the Contractor    |
|           | may be declared ineligible | may be declared ineligible  |
|           | for further Government     | for further Government      |
|           | contracts in accordance    | contracts in accordance     |
|           | with procedures authorized | with procedures authorized  |
|           | in said amended Executive  | in said amended Executive   |
|           | Order, and such other      | Order, and such other       |
|           | sanctions may be imposed   | sanctions may be imposed    |
|           | and remedies invoked as    | and remedies invoked as     |
|           | provided in said Executive | provided in said Executive  |
|           | Order, or by rule,         | Order, or by rule,          |
|           | regulation, or order of    | regulation, or order of the |
|           | the Secretary of Labor, or | Secretary of Labor, or as   |
|           | as otherwise provided by   | otherwise provided by law   |
|           | law.                       |                             |
|           |                            | \(g\) The Contractor will   |
|           | \(g\) The Contractor will  | include the provisions of   |
|           | include the provisions of  | paragraphs (a) through (g)  |
|           | paragraphs (a) through (g) | in every subcontract or     |
|           | in every subcontract or    | purchase order unless       |
|           | purchase order unless      | exempted by the rules,      |
|           | exempted by the rules,     | regulations, or orders of   |
|           | regulations, or orders of  | the Secretary of Labor      |
|           | the Secretary of Labor     | issued pursuant to Section  |
|           | issued pursuant to Section | 204 of said amended         |
|           | 204 of said amended        | Executive Order, so that    |
|           | Executive Order, so that   | such provisions will be     |
|           | such provisions will be    | binding upon each           |
|           | binding upon each          | subcontractor or vendor.    |
|           | subcontractor or vendor.   | The Contractor will take    |
|           | The Contractor will take   | such action with respect to |
|           | such action with respect   | any subcontract or purchase |
|           | to any subcontract or      | order as may be directed by |
|           | purchase order as the      | the Secretary of Labor as a |
|           | Contracting Officer may    | means of enforcing such     |
|           | direct as a means of       | provisions, including       |
|           | enforcing such provisions, | sanctions for               |
|           | including sanctions for    | noncompliance:              |
|           | noncompliance:             | [Provided,]{.underline}     |
|           | [Provided]{.underline},    | [however]{.underline}, That |
|           | [however]{.underline},     | in the event the Contractor |
|           | That in the event the      | becomes involved in, or is  |
|           | Contractor becomes         | threatened with, litigation |
|           | involved in, or is         | with a subcontractor or     |
|           | threatened with,           | vendor as a result of such  |
|           | litigation with a          | direction, the Contractor   |
|           | subcontractor or vendor as | may request the United      |
|           | a result of such direction | States to enter into such   |
|           | by the Contracting         | litigation to protect the   |
|           | Officer, the Contractor    | interests of the United     |
|           | may request the United     | States.                     |
|           | States to enter into such  |                             |
|           | litigation to protect the  |                             |
|           | interests of the United    |                             |
|           | States.                    |                             |
+-----------+----------------------------+-----------------------------+
| 17\.      | 17\. (a) The Contractor    | (*Standard Article*)        |
| Title VI, | agrees that it will comply |                             |
| Civil     | with Title VI of the Civil | 16\. (a) The Contractor     |
| Rights    | Rights Act of 1964 (78     | shall comply with Title VI  |
| Act Of    | Stat. 241) and all         | of the Civil Rights Act of  |
| 1964      | regulations imposed by or  | 1964 (42 U.S.C. 2000d),     |
|           | pursuant to the Department | Section 504 of the          |
| (C        | of the Interior Regulation | Rehabilitation Act of 1975  |
| ompliance | (43 CFR 17) issued         | (P.L. 93-112, as amended),  |
| With      | pursuant to that title, to | the Age Discrimination Act  |
| Civil     | the end that, in           | of 1975 (42 U.S.C. 6101, et |
| Rights    | accordance with Title VI   | seq.) and any other         |
| Laws And  | of that Act and            | applicable civil rights     |
| Reg       | Regulation, no person in   | laws, as well as with their |
| ulations) | the United States shall,   | respective implementing     |
|           | on the ground of race,     | regulations and guidelines  |
|           | color, or national origin  | imposed by the U.S.         |
|           | be excluded from           | Department of the Interior  |
|           | participation in, be       | and/or Bureau of            |
|           | denied the benefits of, or | Reclamation.                |
|           | be otherwise subjected to  |                             |
|           | discrimination under any   | \(b\) These statutes        |
|           | program or activity for    | require that no person in   |
|           | which the Contractor       | the United States shall, on |
|           | receives financial         | the grounds of race, color, |
|           | assistance from the United | national origin, handicap,  |
|           | States and hereby gives    | or age, be excluded from    |
|           | assurance that it will     | participation in, be denied |
|           | immediately take any       | the benefits of, or be      |
|           | measures to effectuate     | otherwise subjected to      |
|           | this agreement.            | discrimination under any    |
|           |                            | program or activity         |
|           | \(b\) If any real property | receiving financial         |
|           | or structure thereon is    | assistance from the Bureau  |
|           | provided or improved with  | of Reclamation. By          |
|           | the aid of Federal         | executing this Contract,    |
|           | financial assistance       | the Contractor agrees to    |
|           | extended to the Contractor | immediately take any        |
|           | by the United States, this | measures necessary to       |
|           | assurance obligates the    | implement this obligation,  |
|           | Contractor, or in the case | including permitting        |
|           | of any transfer of such    | officials of the United     |
|           | property, any transferee   | States to inspect premises, |
|           | for the period during      | programs, and documents.    |
|           | which the real property or |                             |
|           | structure is used for a    | \(c\) The Contractor makes  |
|           | purpose involving the      | this agreement in           |
|           | provision of similar       | consideration of and for    |
|           | services or benefits. If   | the purpose of obtaining    |
|           | any personal property is   | any and all Federal grants, |
|           | so provided, this          | loans, contracts, property, |
|           | assurance obligates the    | discounts, or other Federal |
|           | Contractor for the period  | financial assistance        |
|           | during which it retains    | extended after the date     |
|           | ownership or possession of | hereof to the Contractor by |
|           | the property. In all other | the Bureau of Reclamation,  |
|           | cases, this assurance      | including installment       |
|           | obligates the Contractor   | payments after such date on |
|           | for the period during      | account of arrangements for |
|           | which the Federal          | Federal financial           |
|           | financial assistance is    | assistance which were       |
|           | extended to it by the      | approved before such date.  |
|           | United States.             | The Contractor recognizes   |
|           |                            | and agrees that such        |
|           | \(c\) This assurance is    | Federal assistance will be  |
|           | given in consideration of  | extended in reliance on the |
|           | and for the purpose of     | representations and         |
|           | obtaining any and all      | agreements made in this     |
|           | Federal grants, loans,     | assurance, and that the     |
|           | contracts, property,       | United States reserves the  |
|           | discounts, or other        | right to seek judicial      |
|           | Federal financial          | enforcement thereof.        |
|           | assistance extended after  |                             |
|           | the date hereof to the     |                             |
|           | Contractor by the United   |                             |
|           | States, including          |                             |
|           | installment payments after |                             |
|           | such date on account of    |                             |
|           | arrangements for Federal   |                             |
|           | financial assistance which |                             |
|           | were approved before such  |                             |
|           | date. The Contractor       |                             |
|           | recognizes and agrees that |                             |
|           | such Federal assistance    |                             |
|           | will be extended in        |                             |
|           | reliance on the            |                             |
|           | representations and        |                             |
|           | agreements made in this    |                             |
|           | assurance, and that the    |                             |
|           | United States shall        |                             |
|           | reserve the right to seek  |                             |
|           | judicial enforcement of    |                             |
|           | this assurance. This       |                             |
|           | assurance is binding on    |                             |
|           | the Contractor, its        |                             |
|           | successors, transferees,   |                             |
|           | and assignees.             |                             |
+-----------+----------------------------+-----------------------------+
| 18\.      | 18\. (a) No Project water  | 18\. Omitted. (Replaced by  |
| Lands Not | diverted by the Contractor | Article 11 \[Rules And      |
| To        | shall be furnished to any  | Regulations\])              |
| Receive   | excess lands as defined in |                             |
| Project   | Article 20 hereof unless   |                             |
| Water     | the owners thereof shall   |                             |
| Furnished | have executed valid        |                             |
| To        | recordable contracts in    |                             |
| C         | form prescribed by the     |                             |
| ontractor | United States, agreeing to |                             |
| By United | the provisions of this     |                             |
| States    | article and Articles 19,   |                             |
| Until     | 20, and 22 hereof,         |                             |
| Owners    | agreeing to the appraisal  |                             |
| Thereof   | provided for in Article 19 |                             |
| Execute   | hereof and that such       |                             |
| Certain   | appraisal shall be made on |                             |
| Contracts | the basis of the actual    |                             |
|           | bona fide value of such    |                             |
|           | lands at the date of the   |                             |
|           | appraisal without          |                             |
|           | reference to the           |                             |
|           | construction of the        |                             |
|           | Project, all as            |                             |
|           | hereinafter provided, and  |                             |
|           | agreeing to the sale of    |                             |
|           | such excess lands under    |                             |
|           | terms and conditions       |                             |
|           | satisfactory to the        |                             |
|           | Secretary and at prices    |                             |
|           | not to exceed those fixed, |                             |
|           | as hereinafter provided.   |                             |
|           | No sale of any excess      |                             |
|           | lands shall carry the      |                             |
|           | right to receive Project   |                             |
|           | water made available       |                             |
|           | pursuant to this contract, |                             |
|           | unless and until the       |                             |
|           | purchase price involved in |                             |
|           | such sale is approved by   |                             |
|           | the Contracting Officer    |                             |
|           | and upon proof of          |                             |
|           | fraudulent representation  |                             |
|           | as to the true             |                             |
|           | consideration involved in  |                             |
|           | such sale the United       |                             |
|           | States may instruct the    |                             |
|           | Contractor by written      |                             |
|           | notice to refuse to        |                             |
|           | furnish any Project water  |                             |
|           | subject to this contract   |                             |
|           | to the land involved in    |                             |
|           | such fraudulent sales and  |                             |
|           | the Contractor thereafter  |                             |
|           | shall not furnish said     |                             |
|           | water to such lands.       |                             |
|           |                            |                             |
|           | \(b\) If Project water     |                             |
|           | diverted by the Contractor |                             |
|           | pursuant to this contract  |                             |
|           | reaches the underground    |                             |
|           | strata of excess land      |                             |
|           | owned by a large           |                             |
|           | landowner, as defined in   |                             |
|           | Article 20, who has not    |                             |
|           | executed a recordable      |                             |
|           | contract and the large     |                             |
|           | landowner pumps such       |                             |
|           | Project water from the     |                             |
|           | underground, the           |                             |
|           | Contractor will not be     |                             |
|           | deemed to have furnished   |                             |
|           | such water to said lands   |                             |
|           | within the meaning of this |                             |
|           | contract if such water     |                             |
|           | reached the underground    |                             |
|           | strata of the aforesaid    |                             |
|           | excess land as an          |                             |
|           | unavoidable result of the  |                             |
|           | furnishing of Project      |                             |
|           | water by the Contractor to |                             |
|           | nonexcess lands, or to     |                             |
|           | excess lands with respect  |                             |
|           | to which a recordable      |                             |
|           | contract has been          |                             |
|           | executed.                  |                             |
+-----------+----------------------------+-----------------------------+
| 19\.      | 19\. (a) The value of the  | 19\. Omitted. (Replaced by  |
| Valuation | excess irrigable lands     | Article 11 \[Rules And      |
| And Sale  | within the District as     | Regulations\])              |
| Of Excess | defined in Article 20,     |                             |
| Lands     | held in private ownership  |                             |
|           | of large landowners as     |                             |
|           | defined in said article,   |                             |
|           | for the purposes of this   |                             |
|           | contract, shall be         |                             |
|           | appraised in a manner to   |                             |
|           | be prescribed by the       |                             |
|           | Secretary. At the option   |                             |
|           | of the large landowner,    |                             |
|           | however, the value of such |                             |
|           | land may be appraised,     |                             |
|           | subject to the approval    |                             |
|           | thereof by the Secretary,  |                             |
|           | by three appraisers. One   |                             |
|           | of said appraisers shall   |                             |
|           | be designated by the       |                             |
|           | Secretary and one shall be |                             |
|           | designated by the          |                             |
|           | Contractor and the two     |                             |
|           | appraisers so appointed    |                             |
|           | shall name the third. If   |                             |
|           | the appraisers so          |                             |
|           | designated by the          |                             |
|           | Secretary and said         |                             |
|           | Contractor are unable to   |                             |
|           | agree upon the appointment |                             |
|           | of the third, the          |                             |
|           | Presiding Justice of the   |                             |
|           | Third District Court of    |                             |
|           | Appeal of the State of     |                             |
|           | California shall be        |                             |
|           | requested to designate the |                             |
|           | third appraiser.           |                             |
|           |                            |                             |
|           | \(b\) The following        |                             |
|           | principles shall govern    |                             |
|           | the appraisal:             |                             |
|           |                            |                             |
|           | \(1\) No value shall be    |                             |
|           | given such lands on        |                             |
|           | account of the existing or |                             |
|           | prospective possibility of |                             |
|           | securing Project water for |                             |
|           | use thereon; and           |                             |
|           |                            |                             |
|           | \(2\) The value of         |                             |
|           | improvements on the land   |                             |
|           | at the time of said        |                             |
|           | appraisal shall be         |                             |
|           | included therein, but also |                             |
|           | shall be set forth         |                             |
|           | separately in such         |                             |
|           | appraisal.                 |                             |
|           |                            |                             |
|           | \(c\) The excess land of   |                             |
|           | any large landowner shall  |                             |
|           | be reappraised in the      |                             |
|           | manner provided in         |                             |
|           | subdivision (a) hereof at  |                             |
|           | the instance of the United |                             |
|           | States or at the request   |                             |
|           | of said landowner. The     |                             |
|           | cost of the first two      |                             |
|           | appraisals of each tract   |                             |
|           | of excess land shall be    |                             |
|           | paid by the United States. |                             |
|           | The cost of each appraisal |                             |
|           | thereafter shall be paid   |                             |
|           | by the party requesting    |                             |
|           | such appraisal.            |                             |
|           |                            |                             |
|           | \(d\) Any improvements     |                             |
|           | made or placed on the      |                             |
|           | appraised land after the   |                             |
|           | appraisal hereinabove      |                             |
|           | provided for and prior to  |                             |
|           | sale of the land by a      |                             |
|           | large landowner shall be   |                             |
|           | appraised in like manner.  |                             |
|           |                            |                             |
|           | \(e\) Excess irrigable     |                             |
|           | land sold by large         |                             |
|           | landowners within the      |                             |
|           | service area of any        |                             |
|           | Contractor shall not carry |                             |
|           | the prerogative to receive |                             |
|           | Project water made         |                             |
|           | available pursuant to this |                             |
|           | contract for such lands    |                             |
|           | and the Contractor agrees  |                             |
|           | to refuse to furnish such  |                             |
|           | water to lands so sold     |                             |
|           | until, in addition to      |                             |
|           | compliance with the other  |                             |
|           | provisions hereof, a       |                             |
|           | verified statement showing |                             |
|           | the sale price upon any    |                             |
|           | such sale shall have been  |                             |
|           | filed with the Contractor  |                             |
|           | and said sale price is not |                             |
|           | in excess of the appraised |                             |
|           | value fixed as provided    |                             |
|           | herein.                    |                             |
|           |                            |                             |
|           | \(f\) The Contractor       |                             |
|           | agrees to take all         |                             |
|           | reasonable steps requested |                             |
|           | by the Contracting Officer |                             |
|           | to ascertain the           |                             |
|           | occurrence and conditions  |                             |
|           | of all sales of irrigable  |                             |
|           | land of large landowners   |                             |
|           | in its service area and to |                             |
|           | inform the Contracting     |                             |
|           | Officer concerning the     |                             |
|           | same.                      |                             |
|           |                            |                             |
|           | \(g\) A true copy of this  |                             |
|           | contract, of each          |                             |
|           | recordable contract        |                             |
|           | executed pursuant to this  |                             |
|           | Article and Articles 18    |                             |
|           | and 20 hereof, and of each |                             |
|           | appraisal made pursuant    |                             |
|           | thereto shall be furnished |                             |
|           | to the Contractor by the   |                             |
|           | United States and shall be |                             |
|           | maintained on file in the  |                             |
|           | office of said Contractor  |                             |
|           | and like copies in such    |                             |
|           | offices of the Bureau of   |                             |
|           | Reclamation as may be      |                             |
|           | designated by the          |                             |
|           | Contracting Officer and    |                             |
|           | shall be made available    |                             |
|           | for examination during the |                             |
|           | usual office hours by all  |                             |
|           | persons who may be         |                             |
|           | interested therein.        |                             |
+-----------+----------------------------+-----------------------------+
| 20\.      | 20\. (a) As used herein,   | 20\. Omitted. (Replaced by  |
| Excess    | the term "excess land"     | Article 11 \[Rules And      |
| Lands     | means that part of the     | Regulations\])              |
|           | irrigable land in excess   |                             |
|           | of 160 acres held within   |                             |
|           | the District in the        |                             |
|           | beneficial ownership of    |                             |
|           | any single person, whether |                             |
|           | a natural person, a        |                             |
|           | corporation, or the        |                             |
|           | beneficiary of a trust     |                             |
|           | approved by the            |                             |
|           | Contracting Officer. With  |                             |
|           | respect to land held in    |                             |
|           | co-ownership, such as      |                             |
|           | tenancy in common, joint   |                             |
|           | tenancy, or community      |                             |
|           | property, the beneficial   |                             |
|           | ownership of each co-owner |                             |
|           | shall be that fraction of  |                             |
|           | the total acreage held in  |                             |
|           | co-ownership which equals  |                             |
|           | the co-owner's fractional  |                             |
|           | interest therein. The term |                             |
|           | "large landowner" means an |                             |
|           | owner of excess lands, and |                             |
|           | the term "nonexcess land"  |                             |
|           | means all irrigable land   |                             |
|           | within the District which  |                             |
|           | is not excess land as      |                             |
|           | defined herein. Lands      |                             |
|           | owned by the State, its    |                             |
|           | political subdivisions,    |                             |
|           | and agencies shall be      |                             |
|           | administered in accordance |                             |
|           | with Public Law 91-310.    |                             |
|           | The provisions of this     |                             |
|           | contract governing         |                             |
|           | beneficial ownership of    |                             |
|           | land and the disposition   |                             |
|           | of excess land may be      |                             |
|           | further defined and        |                             |
|           | clarified consistently     |                             |
|           | with this contract in any  |                             |
|           | recordable contract        |                             |
|           | executed pursuant hereto.  |                             |
|           |                            |                             |
|           | \(b\) Each large landowner |                             |
|           | as a further condition     |                             |
|           | precedent to the           |                             |
|           | prerogative to receive     |                             |
|           | Project water made         |                             |
|           | available pursuant to this |                             |
|           | contract for any of his    |                             |
|           | excess land shall:         |                             |
|           |                            |                             |
|           | \(1\) Execute a valid      |                             |
|           | recordable contract in     |                             |
|           | form prescribed by the     |                             |
|           | United States, agreeing to |                             |
|           | the provisions contained   |                             |
|           | in this article and        |                             |
|           | Articles 18, 19, and 22    |                             |
|           | hereof and agreeing to     |                             |
|           | dispose of excess land in  |                             |
|           | accordance therewith to    |                             |
|           | persons who can take title |                             |
|           | thereto as nonexcess land  |                             |
|           | as herein provided and at  |                             |
|           | a price not to exceed the  |                             |
|           | approved, appraised value  |                             |
|           | of such excess land and    |                             |
|           | within a period of 10      |                             |
|           | years after the date of    |                             |
|           | the execution of said      |                             |
|           | recordable contract and    |                             |
|           | agreeing further that if   |                             |
|           | said land is not so        |                             |
|           | disposed of within said    |                             |
|           | period of 10 years the     |                             |
|           | Secretary shall have the   |                             |
|           | power to dispose of said   |                             |
|           | land at the appraised      |                             |
|           | value thereof fixed as     |                             |
|           | provided herein or such    |                             |
|           | lower price as may be      |                             |
|           | approved by the owner of   |                             |
|           | such land, subject to the  |                             |
|           | same conditions on behalf  |                             |
|           | of such large landowner;   |                             |
|           | and, the Contractor agrees |                             |
|           | that it will refuse to     |                             |
|           | furnish said Project water |                             |
|           | to any large landowner     |                             |
|           | other than for his         |                             |
|           | nonexcess lands until such |                             |
|           | owner meets the conditions |                             |
|           | precedent herein stated;   |                             |
|           | and                        |                             |
|           |                            |                             |
|           | \(2\) Within 30 days after |                             |
|           | the date of notice from    |                             |
|           | the United States          |                             |
|           | requesting such large      |                             |
|           | landowner to designate his |                             |
|           | irrigable lands under the  |                             |
|           | Project which he desires   |                             |
|           | to designate as nonexcess  |                             |
|           | lands, file in the office  |                             |
|           | of the Contractor, in      |                             |
|           | whose service area such    |                             |
|           | large landowner's land is  |                             |
|           | situated, in duplicate,    |                             |
|           | one copy thereof to be     |                             |
|           | furnished by the           |                             |
|           | Contractor to the Bureau   |                             |
|           | of Reclamation, his        |                             |
|           | written designation and    |                             |
|           | description of lands so    |                             |
|           | selected to be nonexcess   |                             |
|           | land and upon failure to   |                             |
|           | do so the Contractor shall |                             |
|           | make such designation and  |                             |
|           | mail a notice thereof to   |                             |
|           | such large landowner, and  |                             |
|           | in the event the           |                             |
|           | Contractor fails to act    |                             |
|           | within such period of time |                             |
|           | as the Contracting Officer |                             |
|           | considers reasonable, such |                             |
|           | designation will be made   |                             |
|           | by the Contracting         |                             |
|           | Officer, who will mail a   |                             |
|           | notice thereof to the      |                             |
|           | Contractor and the large   |                             |
|           | landowner. The large       |                             |
|           | landowner shall become     |                             |
|           | bound by any such action   |                             |
|           | on the part of the         |                             |
|           | Contractor or the          |                             |
|           | Contracting Officer and    |                             |
|           | the Contractor will        |                             |
|           | furnish said Project water |                             |
|           | only to the land so        |                             |
|           | designated to be nonexcess |                             |
|           | land. A large landowner    |                             |
|           | may with the consent of    |                             |
|           | the Contracting Officer    |                             |
|           | designate land other than  |                             |
|           | that previously designated |                             |
|           | as nonexcess land:         |                             |
|           | [Provided]{.underline},    |                             |
|           | That an equal acreage of   |                             |
|           | the land, previously       |                             |
|           | designated as nonexcess    |                             |
|           | shall, upon such new       |                             |
|           | designation, became excess |                             |
|           | land thereafter subject to |                             |
|           | the provisions of this     |                             |
|           | article and of Articles    |                             |
|           | 18, 9 and 22 of this       |                             |
|           | contract and shall be      |                             |
|           | described in an amendment  |                             |
|           | of such recordable         |                             |
|           | contract as may have been  |                             |
|           | executed by the large      |                             |
|           | landowner in the same      |                             |
|           | manner as if such land had |                             |
|           | been excess land at the    |                             |
|           | time of the original       |                             |
|           | designation.               |                             |
+-----------+----------------------------+-----------------------------+
| 21\.      | 21\. In the event that the | 21\. Omitted. (Replaced by  |
| Repeal Or | Congress of the United     | Article 11 \[Rules And      |
| Amendment | States repeals the         | Regulations\])              |
| Of        | so-called excess-land      |                             |
| Federal   | provisions of the Federal  |                             |
| Re        | reclamation laws, or it is |                             |
| clamation | decided by the Supreme     |                             |
| Laws      | Court of the United.       |                             |
|           | States that they are       |                             |
|           | inapplicable to delivery   |                             |
|           | of water to any of the     |                             |
|           | lands shown on Exhibit B   |                             |
|           | or to lands in similar     |                             |
|           | circumstances, Articles    |                             |
|           | 18, 19, 20, and 22 of this |                             |
|           | contract will no longer be |                             |
|           | of any force or effect,    |                             |
|           | or, in the event that the  |                             |
|           | Congress amends the        |                             |
|           | excess-land provisions or  |                             |
|           | other provisions of the    |                             |
|           | Federal Reclamation laws,  |                             |
|           | or if the United States    |                             |
|           | Supreme Court decision is  |                             |
|           | inconsistent with said     |                             |
|           | articles, Reclamation      |                             |
|           | agrees at the option of    |                             |
|           | the District to negotiate  |                             |
|           | amendments of appropriate  |                             |
|           | articles of this contract, |                             |
|           | all consistently with the  |                             |
|           | provisions of such         |                             |
|           | amendment or United States |                             |
|           | Supreme Court decision.    |                             |
+-----------+----------------------------+-----------------------------+
| 22\.      | 22\. (a) Project water     | 17\. (a) Project Water must |
| Mingling  | must of necessity be       | of necessity be transported |
| Of The    | transported by the         | by the Contractor to its    |
| Con       | Contractor to its water    | water users by means of the |
| tractor's | users by means of the same | same works and channels     |
| Project   | works and channels used    | used for the transport of   |
| And       | for the transport of its   | its non-Project Water.      |
| No        | non-Project water.         | Notwithstanding such        |
| n-Project | Notwithstanding such       | mingling of water, the      |
| Water     | mingling of water, the     | provisions of Article 11    |
|           | provisions of Articles 18, | hereof shall be applicable  |
|           | 19, and 20 hereof shall be | only to Project Water, and  |
|           | applicable only to Project | such mingling of water      |
|           | water, and such mingling   | shall not in any manner     |
|           | of water shall not in any  | subject to the provisions   |
|           | manner subject to the      | of Article 11 hereof the    |
|           | provisions of Articles 18, | Contractor's non-Project    |
|           | 19, and 20 hereof the      | water.                      |
|           | Contractor's non-Project   |                             |
|           | water.                     | \(b\) If required in        |
|           |                            | accordance with subdivision |
|           | \(b\) If required in       | (c) of this Article, the    |
|           | accordance with            | Contractor shall install    |
|           | subdivision (c) of this    | and maintain such measuring |
|           | article, the Contractor    | equipment and distribution  |
|           | shall install and maintain | facilities and maintain     |
|           | such measuring equipment   | such records as may be      |
|           | and distribution           | necessary to determine the  |
|           | facilities and maintain    | amounts of water delivered  |
|           | such records as may be     | to Excess Lands served by   |
|           | necessary to determine the | the Contractor. The         |
|           | amounts of water delivered | Contractor shall not within |
|           | to excess lands served by  | any month deliver to        |
|           | the Contractor. Within any | Ineligible Lands water in   |
|           | month the Contractor shall | excess of the non-Project   |
|           | not deliver to lands,      | Water for that month. The   |
|           | which remain subject to    | Contracting Officer or      |
|           | the excess-land provisions | authorized representative   |
|           | herein contained and which | shall have the right at all |
|           | are not covered by         | reasonable times to inspect |
|           | recordable contract, water | such records and measuring  |
|           | in excess of his           | equipment.                  |
|           | non-Project water. The     |                             |
|           | Contracting Officer or his | \(c\) The Contractor will   |
|           | authorized representative  | not be considered in        |
|           | shall have the right at    | violation of the            |
|           | all reasonable times to    | requirement that Project    |
|           | inspect such records and   | Water be delivered only to  |
|           | measuring equipment.       | Eligible Lands during any   |
|           |                            | month of the irrigation     |
|           | \(c\) The Contractor will  | season that the water       |
|           | not be considered in       | requirement for beneficial  |
|           | violation of the           | use on Eligible Lands for   |
|           | requirement that Project   | that month is equal to or   |
|           | water be delivered only to | in excess of the Project    |
|           | eligible land during any   | Water for that month as     |
|           | month of the irrigation    | shown on Exhibit A or any   |
|           | season that the water      | revision thereof pursuant   |
|           | requirement for beneficial | to subdivision (b) of       |
|           | use on eligible land for   | Article 3. The water        |
|           | that month is equal to or  | requirement for beneficial  |
|           | in excess of the Project   | use on Eligible Lands will  |
|           | water for that month as    | be determined by            |
|           | shown on Exhibit A or any  | multiplying:                |
|           | revision thereof pursuant  |                             |
|           | to subdivisions (b) or (c) | \(1\) the number of         |
|           | of Article 3. The water    | irrigable acres of the      |
|           | requirement for beneficial | particular types of crops   |
|           | use on eligible land will  | grown in that year on the   |
|           | be determined by           | acreage designated as       |
|           | multiplying:               | eligible by                 |
|           |                            |                             |
|           | \(1\) the number of        | \(2\) the Unit Duties as    |
|           | irrigable acres of the     | set forth in Exhibit C      |
|           | particular types of crops  | attached hereto and made a  |
|           | grown in that year on the  | part hereof, or by such     |
|           | acreage designated as      | other Unit Duties mutually  |
|           | eligible; by               | agreed upon by the          |
|           |                            | Contractor and the          |
|           | \(2\) the Unit Duties as   | Contracting Officer. In     |
|           | set forth in Exhibit C     | order to make the           |
|           | attached hereto and made a | computation of the water    |
|           | part hereof, or by such    | requirement for Eligible    |
|           | other Unit Duties mutually | Lands, on April 1 of each   |
|           | agreed upon by the         | Year and concurrently with  |
|           | Contractor and the         | its order for water for the |
|           | Contracting Officer.       | irrigation season the       |
|           |                            | Contractor shall designate  |
|           | In order to take the       | the acreage of and type of  |
|           | computation of the water   | crops to be grown on its    |
|           | requirement for eligible   | Eligible Lands that         |
|           | land, on April 1 of each   | irrigation season. During   |
|           | year and concurrently with | any month the water         |
|           | its order for water for    | requirement as above        |
|           | the irrigation season the  | determined for crops        |
|           | Contractor shall designate | growing on Eligible Lands   |
|           | the acreage of and type of | during such month is equal  |
|           | crops to be grown on its   | to or in excess of the      |
|           | eligible land that         | Project Water for that      |
|           | irrigation season. During  | month as provided herein    |
|           | any month the water        | the Contractor shall not be |
|           | requirement as above       | required to measure the     |
|           | determined for crops       | water delivered to Excess   |
|           | growing on eligible land   | Lands. Any month the said   |
|           | during such month is equal | water requirement is less   |
|           | to or in excess of the     | than the amount of Project  |
|           | Project water for that     | Water as provided herein,   |
|           | month as provided herein   | the Contractor will be      |
|           | the Contractor shall not   | required to measure water   |
|           | be required to measure the | delivered to excess land in |
|           | water delivered to excess  | accordance with subdivision |
|           | land. Any month the said   | (b) hereof.                 |
|           | water requirement is less  |                             |
|           | than the amount of Project |                             |
|           | water as provided herein,  |                             |
|           | the Contractor will be     |                             |
|           | required to measure water  |                             |
|           | delivered to excess land   |                             |
|           | in accordance with         |                             |
|           | subdivision (b) hereof.    |                             |
+-----------+----------------------------+-----------------------------+
| 23\.      | 23\. The Contractor shall  | (*Standard Article*)        |
| Books,    | establish and maintain     |                             |
| Records,  | accounts and other books   | 18\. The Contractor shall   |
| And       | and records pertaining to  | establish and maintain      |
| Reports   | its financial              | accounts and other books    |
|           | transactions, land use and | and records pertaining to   |
|           | crop census, water use,    | administration of the terms |
|           | and to such other matters  | and conditions of this      |
|           | as the Contracting Officer | Contract, including: the    |
|           | may require. Reports       | Contractor\'s financial     |
|           | thereon shall be furnished | transactions, water supply  |
|           | to the Contracting Officer | data, and Project land and  |
|           | in such form and on such   | right-of-way agreements;    |
|           | date or dates as he may    | the water users\' land-use  |
|           | require. Subject to        | (crop census), land         |
|           | applicable Federal laws    | ownership, land-leasing and |
|           | and regulations, each      | water use data; and other   |
|           | party shall have the right | matters that the            |
|           | during office hours to     | Contracting Officer may     |
|           | examine and make copies of | require. Reports thereon    |
|           | each other's books and     | shall be furnished to the   |
|           | official records relating  | Contracting Officer in such |
|           | to matters covered by this | form and on such date or    |
|           | contract.                  | dates as the Contracting    |
|           |                            | Officer may require.        |
|           |                            | Subject to applicable       |
|           |                            | Federal laws and            |
|           |                            | regulations, each party to  |
|           |                            | this Contract shall have    |
|           |                            | the right during office     |
|           |                            | hours to examine and make   |
|           |                            | copies of each other's      |
|           |                            | books and official records  |
|           |                            | relating to matters covered |
|           |                            | by this Contract.           |
+-----------+----------------------------+-----------------------------+
| 24\.      | 24\. (a) Unless the        | 19\. (a) Unless the written |
| Change Of | written consent of the     | consent of the United       |
| Place Of  | United States is first     | States is first obtained no |
| Use Or    | obtained no change shall   | change shall be made in the |
| Org       | be made in the place of    | place of water use shown on |
| anization | water use shown on Exhibit | Exhibit B.                  |
|           | B.                         |                             |
|           |                            | \(b\) While this contract   |
|           | \(b\) While this contract  | is in effect, no change     |
|           | is in effect, no change    | shall be made in the area   |
|           | shall be made in the area  | of the Contractor as shown  |
|           | of the Contractor as shown | on its Exhibit B, by        |
|           | on its Exhibit B, by       | inclusion or exclusion of   |
|           | inclusion or exclusion of  | lands, by dissolution,      |
|           | lands, by dissolution,     | consolidation, or merger or |
|           | consolidation, or merger   | otherwise, except upon the  |
|           | or otherwise, except upon  | Contracting Officer's       |
|           | the Contracting Officer's  | written assent thereto.     |
|           | written assent thereto.    |                             |
|           |                            | \(c\) In the event lands    |
|           | \(c\) In the event lands   | are excluded from the area  |
|           | are annexed to or excluded | of the Contractor, as       |
|           | from the area of the       | provided herein, the        |
|           | Contractor, as provided    | quantity of Project Water   |
|           | herein, the quantity of    | to be diverted may be       |
|           | Project water to be        | decreased pursuant to a     |
|           | diverted may be increased  | supplemental agreement to   |
|           | or decreased pursuant to a | be executed in respect      |
|           | supplemental agreement to  | thereto.                    |
|           | be executed in respect     |                             |
|           | thereto.                   |                             |
+-----------+----------------------------+-----------------------------+
| 25\.      | 25\. Consolidation of      | 20\. Consolidation of       |
| Cons      | Contractors may be         | Contractors may be approved |
| olidation | approved by the            | by the Contracting Officer  |
| Of        | Contracting Officer        | provided: (i) the           |
| Co        | provided:                  | Contracting Officer         |
| ntracting |                            | approves the form and       |
| Entities  | \(a\) He approves the form | organization of the         |
|           | and organization of the    | resulting entity and the    |
|           | resulting entity and the   | utilization by it of the    |
|           | utilization by it of the   | Contract Total; and (ii)    |
|           | total supply;              | the obligations of the      |
|           |                            | Contractor are assumed by   |
|           | \(b\) The obligations of   | such entity.                |
|           | the Contractor are assumed |                             |
|           | by such entity. No such    | No such consolidation shall |
|           | consolidation shall be     | be valid unless and until   |
|           | valid unless and until     | approved by the Contracting |
|           | approved by the            | Officer.                    |
|           | Contracting Officer.       |                             |
+-----------+----------------------------+-----------------------------+
| 26\.      | 26\. Any notice, demand,   | (*Standard Article*)        |
| Notices   | or request authorized or   |                             |
|           | required by this contract  | 21\. Any notice, demand, or |
|           | shall be deemed to have    | request authorized or       |
|           | been given when mailed,    | required by this Contract   |
|           | postage prepaid, or        | shall be deemed to have     |
|           | delivered to the Regional  | been given, on behalf of    |
|           | Director, Region 2, Bureau | the Contractor, when        |
|           | of Reclamation, 2800       | mailed, postage prepaid, or |
|           | Cottage Way, Sacramento,   | delivered to the Area       |
|           | California, 95825, on      | Manager, Northern           |
|           | behalf of the United       | California Area Office,     |
|           | States and to the Board of | Bureau of Reclamation,      |
|           | Directors, of the          | 16349 Shasta Dam Blvd.,     |
|           | Contractor,                | Shasta Lake, California,    |
|           | \_\_\                      | 96019, and on behalf of the |
|           | _\_\_\_\_\_\_\_\_\_\_\_\_\ | United States, when mailed, |
|           | _\_\_\_\_\_\_\_\_\_\_\_\_, | postage prepaid, or         |
|           | on behalf of the           | delivered to the Board of   |
|           | Contractor. The            | Directors /City Council of  |
|           | designation of the         | the                         |
|           | addressee or the address   | \_\_\_\_\_\_\_\_\_\_\_      |
|           | given above may be changed | \_\_\_\_\_\_\_\_\_\_\_\_\_. |
|           | by notice given in the     | The designation of the      |
|           | same manner as provided in | addressee or the address    |
|           | this article for other     | may be changed by notice    |
|           | notices.                   | given in the same manner as |
|           |                            | provided in this Article    |
|           |                            | for other notices.          |
+-----------+----------------------------+-----------------------------+
| 27\.      | 27\. The provisions of     | (*Standard Article*)        |
| A         | this Contract shall apply  |                             |
| ssignment | to and bind the successors | 22\. (a) The provisions of  |
| Limited - | and assigns of the parties | this Contract shall apply   |
| S         | hereto, but no assignment  | to and bind the successors  |
| uccessors | or transfer of this        | and assigns of the parties  |
| And       | Contract or any right or   | hereto, but no assignment   |
| Assigns   | interest therein shall be  | or transfer of this         |
| Obligated | valid until approved in    | Contract or any right or    |
|           | writing by the Contracting | interest therein shall be   |
|           | Officer.                   | valid until approved in     |
|           |                            | writing by the Contracting  |
|           |                            | Officer.                    |
|           |                            |                             |
|           |                            | \(b\) The assignment of any |
|           |                            | right or interest in this   |
|           |                            | Contract by either party    |
|           |                            | shall not interfere with    |
|           |                            | the rights or obligations   |
|           |                            | of the other party to this  |
|           |                            | Contract absent the written |
|           |                            | concurrence of said other   |
|           |                            | party.                      |
|           |                            |                             |
|           |                            | \(c\) The Contracting       |
|           |                            | Officer shall not           |
|           |                            | unreasonably condition or   |
|           |                            | withhold his approval of    |
|           |                            | any proposed assignment.    |
+-----------+----------------------------+-----------------------------+
| 28\.      | 28\. (a) No Member of or   | (*Standard Article*)        |
| Officials | Delegate to Congress or    |                             |
| Not To    | Resident Commissioner      | 23\. (a) No Member of or    |
| Benefit   | shall be admitted to any   | Delegate to Congress,       |
|           | share or part of this      | Resident Commissioner, or   |
|           | contract or to any benefit | official of the Contractor  |
|           | that may arise herefrom.   | shall benefit from this     |
|           | This restriction shall not | Contract other than as a    |
|           | be construed to extend to  | water user or landowner in  |
|           | this contract if made with | the same manner as other    |
|           | a corporation or company   | water users or landowners.  |
|           | for its general benefit.   |                             |
|           |                            | \(b\) No officer or member  |
|           | \(b\) No official of the   | of the governing board of   |
|           | Contractor shall receive   | the Contractor shall        |
|           | any benefit that may arise | receive any benefit that    |
|           | by reason of this contract | may arise by reason of this |
|           | other than as a landowner  | contract other than as a    |
|           | within the Project and in  | landowner within the        |
|           | the same manner as other   | Contractor's service area   |
|           | landowners within the      | and in the same manner as   |
|           | Project.                   | other landowners within the |
|           |                            | said service area.          |
+-----------+----------------------------+-----------------------------+
| 29\.      | 29\. The expenditure of    | (*Standard Article*)        |
| C         | any money or the           |                             |
| ontingent | performance of any work by | 24\. The expenditure or     |
| Upon      | the United States          | advance of any money or the |
| Appr      | hereunder which may        | performance of any          |
| opriation | require appropriation of   | obligation of the United    |
| Or        | money by the Congress or   | States under this Contract  |
| Allotment | the allotment of funds     | shall be contingent upon    |
| Of Funds  | shall be contingent upon   | appropriation or allotment  |
|           | such appropriation or      | of funds. Absence of        |
|           | allotment being made. The  | appropriation or allotment  |
|           | failure of the Congress so | of funds shall not relieve  |
|           | to appropriate funds or    | the Contractor from any     |
|           | the absence of any         | obligations under this      |
|           | allotment of funds shall   | Contract. No liability      |
|           | not relieve the Contractor | shall accrue to the United  |
|           | from any obligations under | States in case funds are    |
|           | this contract. No          | not appropriated or         |
|           | liability shall accrue to  | allotted.                   |
|           | the United States in case  |                             |
|           | such funds are not         |                             |
|           | appropriated or allotted.  |                             |
+-----------+----------------------------+-----------------------------+
| 30\.      | 30\. The execution and of  | (*Standard Article*)        |
| Con       | this contract shall be     |                             |
| firmation | authorized or ratified by  | 25\. The Contractor, after  |
| Of        | the qualified electors of  | the execution of this       |
| Contract  | the Contractor at an       | Contract, shall promptly    |
|           | election held for that     | seek to secure a decree of  |
|           | purpose. The Contractor,   | a court of competent        |
|           | after the election and     | jurisdiction of the State   |
|           | upon the execution of this | of California, if           |
|           | Contract, shall promptly   | appropriate, confirming the |
|           | secure a final decree of   | execution of this contract. |
|           | the proper court of the    | The Contractor shall        |
|           | State of California        | furnish the United States a |
|           | approving and confirming   | certified copy of the final |
|           | the contract and decreeing | decree, the validation      |
|           | and adjudging it to be     | proceedings, and all        |
|           | lawful, valid, and binding | pertinent supporting        |
|           | on the Contractor. The     | records of the court        |
|           | Contractor shall furnish   | approving and confirming    |
|           | to the United States a     | this Contract, and          |
|           | certified copy of such     | decreeing and adjudging it  |
|           | decree and of all          | to be lawful, valid, and    |
|           | pertinent supporting       | binding on the Contractor.  |
|           | records.                   | This Contract shall not be  |
|           |                            | binding on the United       |
|           |                            | States until such final     |
|           |                            | decree has been secured.    |
+-----------+----------------------------+-----------------------------+
| 26\.      | Article 18(b): If Project  | 26\. To the extent          |
| Un        | water diverted by the      | applicable, the Contractor  |
| avoidable | Contractor pursuant to     | shall not be deemed to have |
| Gr        | this contract reaches the  | delivered Project Water to  |
| oundwater | underground strata of      | Excess Lands or Ineligible  |
| Pe        | excess land owned by a     | Lands if such lands are     |
| rcolation | large landowner, as        | irrigated with groundwater  |
|           | defined in Article 20, who | that reaches the            |
|           | has not executed a         | underground strata as an    |
|           | recordable contract and    | unavoidable result of the   |
|           | the large landowner pumps  | delivery of Project Water   |
|           | such Project water from    | by the Contractor to        |
|           | the underground, the       | Eligible Lands.             |
|           | Contractor will not be     |                             |
|           | deemed to have furnished   |                             |
|           | such water to said lands   |                             |
|           | within the meaning of this |                             |
|           | contract if such water     |                             |
|           | reached the underground    |                             |
|           | strata of the aforesaid    |                             |
|           | excess land as an          |                             |
|           | unavoidable result of the  |                             |
|           | furnishing of Project      |                             |
|           | water by the Contractor to |                             |
|           | nonexcess lands, or to     |                             |
|           | excess lands with respect  |                             |
|           | to which a recordable      |                             |
|           | contract has been          |                             |
|           | executed.                  |                             |
+-----------+----------------------------+-----------------------------+
| 27\.      | New                        | (*Standard Article*)        |
| Privacy   |                            |                             |
| Act       |                            | 27\. (a) The Contractor     |
| C         |                            | shall comply with the       |
| ompliance |                            | Privacy Act of 1974 (5      |
|           |                            | U.S.C. 552a) (the Act) and  |
|           |                            | the Department of the       |
|           |                            | Interior rules and          |
|           |                            | regulations under the Act   |
|           |                            | (43 CFR 2.45 et seq.) in    |
|           |                            | maintaining Landholder      |
|           |                            | acreage certification and   |
|           |                            | reporting records, required |
|           |                            | to be submitted to the      |
|           |                            | Contractor for compliance   |
|           |                            | with Sections 206 and 228   |
|           |                            | of the Reclamation Reform   |
|           |                            | Act of 1982 (96 Stat.       |
|           |                            | 1266), and pursuant to 43   |
|           |                            | CFR 426.18.                 |
|           |                            |                             |
|           |                            | \(b\) With respect to the   |
|           |                            | application and             |
|           |                            | administration of the       |
|           |                            | criminal penalty provisions |
|           |                            | of the Act (5 U.S.C.        |
|           |                            | 552a(i)), the Contractor    |
|           |                            | and the Contractor\'s       |
|           |                            | employees responsible for   |
|           |                            | maintaining the             |
|           |                            | certification and reporting |
|           |                            | records referenced in (a)   |
|           |                            | above are considered to be  |
|           |                            | employees of the Department |
|           |                            | of the Interior. See 5      |
|           |                            | U.S.C. 552a(m).             |
|           |                            |                             |
|           |                            | \(c\) The Contracting       |
|           |                            | Officer or a designated     |
|           |                            | representative shall        |
|           |                            | provide the Contractor with |
|           |                            | current copies of the       |
|           |                            | Interior Department Privacy |
|           |                            | Act regulations and the     |
|           |                            | Bureau of Reclamation       |
|           |                            | Federal Register Privacy    |
|           |                            | Act System of Records       |
|           |                            | Notice (Acreage             |
|           |                            | Limitation\--Interior,      |
|           |                            | Reclamation-31) which       |
|           |                            | govern the maintenance,     |
|           |                            | safeguarding, and           |
|           |                            | disclosure of information   |
|           |                            | contained in the            |
|           |                            | Landholder\'s certification |
|           |                            | and reporting records.      |
|           |                            |                             |
|           |                            | \(d\) The Contracting       |
|           |                            | Officer shall designate a   |
|           |                            | full-time employee of the   |
|           |                            | Bureau of Reclamation to be |
|           |                            | the System Manager who      |
|           |                            | shall be responsible for    |
|           |                            | making decisions on denials |
|           |                            | pursuant to 43 CFR 2.61 and |
|           |                            | 2.64 amendment requests     |
|           |                            | pursuant to 43 CFR 2.72.    |
|           |                            | The Contractor is           |
|           |                            | authorized to grant         |
|           |                            | requests by individuals for |
|           |                            | access to their own         |
|           |                            | records.                    |
|           |                            |                             |
|           |                            | \(e\) The Contractor shall  |
|           |                            | forward promptly to the     |
|           |                            | System Manager each         |
|           |                            | proposed denial of access   |
|           |                            | under 43 CFR 2.64; and each |
|           |                            | request for amendment of    |
|           |                            | records filed under 43 CFR  |
|           |                            | 2.71; notify the requester  |
|           |                            | accordingly of such         |
|           |                            | referral; and provide the   |
|           |                            | System Manager with         |
|           |                            | information and records     |
|           |                            | necessary to prepare an     |
|           |                            | appropriate response to the |
|           |                            | requester. These            |
|           |                            | requirements do not apply   |
|           |                            | to individuals seeking      |
|           |                            | access to their own         |
|           |                            | certification and reporting |
|           |                            | forms filed with the        |
|           |                            | Contractor pursuant to 43   |
|           |                            | CFR 426.18, unless the      |
|           |                            | requester elects to cite    |
|           |                            | the Privacy Act as a basis  |
|           |                            | for the request.            |
+-----------+----------------------------+-----------------------------+
| 28\.      | New                        | 28\. (a) Prior to the       |
| Water     |                            | diversion of Project Water, |
| Con       |                            | the Contractor shall be     |
| servation |                            | implementing an effective   |
|           |                            | water conservation and      |
|           |                            | efficiency program based on |
|           |                            | the Contractor\'s water     |
|           |                            | conservation plan that has  |
|           |                            | been determined by the      |
|           |                            | Contracting Officer to meet |
|           |                            | the conservation and        |
|           |                            | efficiency criteria for     |
|           |                            | evaluating water            |
|           |                            | conservation plans          |
|           |                            | established under Federal   |
|           |                            | law. The water conservation |
|           |                            | and efficiency program      |
|           |                            | shall contain definite      |
|           |                            | water conservation          |
|           |                            | objectives, appropriate     |
|           |                            | economically feasible water |
|           |                            | conservation measures, and  |
|           |                            | time schedules for meeting  |
|           |                            | those objectives. Continued |
|           |                            | diversion of Project Water  |
|           |                            | pursuant to this Contract   |
|           |                            | shall be contingent upon    |
|           |                            | the Contractor's continued  |
|           |                            | implementation of such      |
|           |                            | water conservation program. |
|           |                            | In the event the            |
|           |                            | Contractor\'s water         |
|           |                            | conservation plan or any    |
|           |                            | revised water conservation  |
|           |                            | plan completed pursuant to  |
|           |                            | subdivision (d) of Article  |
|           |                            | 28 of this Contract have    |
|           |                            | not yet been determined by  |
|           |                            | the Contracting Officer to  |
|           |                            | meet such criteria, due to  |
|           |                            | circumstances which the     |
|           |                            | Contracting Officer         |
|           |                            | determines are beyond the   |
|           |                            | control of the Contractor,  |
|           |                            | Project Water deliveries    |
|           |                            | shall be made under this    |
|           |                            | Contract so long as the     |
|           |                            | Contractor diligently works |
|           |                            | with the Contracting        |
|           |                            | Officer to obtain such      |
|           |                            | determination at the        |
|           |                            | earliest practicable date,  |
|           |                            | and thereafter the          |
|           |                            | Contractor immediately      |
|           |                            | begins implementing its     |
|           |                            | water conservation and      |
|           |                            | efficiency program in       |
|           |                            | accordance with the time    |
|           |                            | schedules therein.          |
|           |                            |                             |
|           |                            | \(b\) The Contractor shall  |
|           |                            | submit to the Contracting   |
|           |                            | Officer a report on the     |
|           |                            | status of its               |
|           |                            | implementation of the water |
|           |                            | conservation plan on the    |
|           |                            | reporting dates specified   |
|           |                            | in the then existing        |
|           |                            | conservation and efficiency |
|           |                            | criteria established under  |
|           |                            | Federal law.                |
|           |                            |                             |
|           |                            | \(c\) At five (5)-year      |
|           |                            | intervals, the Contractor   |
|           |                            | shall revise its water      |
|           |                            | conservation plan to        |
|           |                            | reflect the then current    |
|           |                            | conservation and efficiency |
|           |                            | criteria for evaluating     |
|           |                            | water conservation plans    |
|           |                            | established under Federal   |
|           |                            | law and submit such revised |
|           |                            | water management plan to    |
|           |                            | the Contracting Officer for |
|           |                            | review and evaluation. The  |
|           |                            | Contracting Officer will    |
|           |                            | then determine if the water |
|           |                            | conservation plan meets     |
|           |                            | Reclamation's then current  |
|           |                            | conservation and efficiency |
|           |                            | criteria for evaluating     |
|           |                            | water conservation plans    |
|           |                            | established under Federal   |
|           |                            | law.                        |
|           |                            |                             |
|           |                            | \(e\) If the Contractor is  |
|           |                            | engaged in direct           |
|           |                            | ground-water recharge, such |
|           |                            | activity shall be described |
|           |                            | in the Contractor's water   |
|           |                            | conservation plan.          |
+-----------+----------------------------+-----------------------------+
| # 29.     | New                        | 29\. (a) Where the terms of |
| Opinions  |                            | this Contract provide for   |
| And Deter |                            | actions to be based upon    |
| minations |                            | the opinion or              |
|           |                            | determination of either     |
|           |                            | party to this Contract,     |
|           |                            | said terms shall not be     |
|           |                            | construed as permitting     |
|           |                            | such action to be           |
|           |                            | predicated upon arbitrary,  |
|           |                            | capricious, or unreasonable |
|           |                            | opinions or determinations. |
|           |                            | Both parties,               |
|           |                            | notwithstanding any other   |
|           |                            | provisions of this          |
|           |                            | Contract, expressly reserve |
|           |                            | the right to seek relief    |
|           |                            | from and appropriate        |
|           |                            | adjustment for any such     |
|           |                            | arbitrary, capricious, or   |
|           |                            | unreasonable opinion or     |
|           |                            | determination. Each opinion |
|           |                            | or determination by either  |
|           |                            | party shall be provided in  |
|           |                            | a timely manner. Nothing in |
|           |                            | subdivision (a) of Article  |
|           |                            | 30 of this Contract is      |
|           |                            | intended to or shall affect |
|           |                            | or alter the standard of    |
|           |                            | judicial review applicable  |
|           |                            | under federal law to any    |
|           |                            | opinion or determination    |
|           |                            | implementing a specific     |
|           |                            | provision of federal law    |
|           |                            | embodied in statute or      |
|           |                            | regulation.                 |
|           |                            |                             |
|           |                            | \(b\) The Contracting       |
|           |                            | Officer shall have the      |
|           |                            | right to make               |
|           |                            | determinations necessary to |
|           |                            | administer this Contract    |
|           |                            | that are consistent with    |
|           |                            | the provisions of this      |
|           |                            | Contract, the laws of the   |
|           |                            | United States and of the    |
|           |                            | State of California, and    |
|           |                            | the rules and regulations   |
|           |                            | promulgated by the          |
|           |                            | Secretary of the Interior.  |
|           |                            | Such determinations shall   |
|           |                            | be made in consultation     |
|           |                            | with the Contractor to the  |
|           |                            | extent reasonably           |
|           |                            | practicable.                |
+-----------+----------------------------+-----------------------------+
| 30\.      | New                        | 30\. (a) In addition to all |
| C         |                            | other payments to be made   |
| ontractor |                            | by the Contractor pursuant  |
| To Pay    |                            | to this Contract, the       |
| Certain   |                            | Contractor shall pay to the |
| Misc      |                            | United States, within sixty |
| ellaneous |                            | (60) days after receipt of  |
| Costs     |                            | a bill and detailed         |
|           |                            | statement submitted by the  |
|           |                            | Contracting Officer to the  |
|           |                            | Contractor for such         |
|           |                            | specific items of direct    |
|           |                            | cost incurred by the United |
|           |                            | States for work requested   |
|           |                            | by the Contractor           |
|           |                            | associated with this        |
|           |                            | Contract plus indirect      |
|           |                            | costs in accordance with    |
|           |                            | applicable Bureau of        |
|           |                            | Reclamation policies and    |
|           |                            | procedures. All such        |
|           |                            | amounts referred to in this |
|           |                            | Article shall not exceed    |
|           |                            | the amount agreed to in     |
|           |                            | writing in advance by the   |
|           |                            | Contractor. This Article    |
|           |                            | shall not apply to costs    |
|           |                            | for routine contract        |
|           |                            | administration.             |
|           |                            |                             |
|           |                            | \(b\) All advances for      |
|           |                            | miscellaneous costs         |
|           |                            | incurred for work requested |
|           |                            | by the Contractor pursuant  |
|           |                            | to Article 31 of this       |
|           |                            | Contract shall be adjusted  |
|           |                            | to reflect the actual costs |
|           |                            | when the work has been      |
|           |                            | completed. If the advances  |
|           |                            | exceed the actual costs     |
|           |                            | incurred, the difference    |
|           |                            | will be refunded to the     |
|           |                            | Contractor. If the actual   |
|           |                            | costs exceed the            |
|           |                            | Contractor\'s advances, the |
|           |                            | Contractor will be billed   |
|           |                            | for the additional costs    |
|           |                            | pursuant to Article 31 of   |
|           |                            | this Contract.              |
+-----------+----------------------------+-----------------------------+
| 31\.      | New                        | 31\. The waiver by either   |
| Waiver Of |                            | party to this contract as   |
| Default   |                            | to any default shall not be |
|           |                            | construed as a waiver of    |
|           |                            | any other default or as     |
|           |                            | authority of the other      |
|           |                            | party to continue such      |
|           |                            | default or to make, do, or  |
|           |                            | perform, or not to make,    |
|           |                            | do, or perform, as the case |
|           |                            | may be, any act or thing    |
|           |                            | which would constitute a    |
|           |                            | default.                    |
+-----------+----------------------------+-----------------------------+

[^1]: Certain Articles appearing in the Existing contract have been
    omitted from the Draft contract. Articles covering the same topic
    may not have the same Article number.

[^2]: Titles of Articles covering the same topic may change between the
    existing contract and the draft contract.