Draft Procedures and Forms to Be Used in Administering the Sacramento
River Settlement Contracts

(NCAO DRAFT 10-31-02)

[Standard Form Contractors]{.underline}

1\. Before April 1, the Contractor is required to submit a written
schedule to the Contracting Officer indicating the quantity of Base
Supply and Project Water to be diverted by the Contractor during each
month. (See Addendum A, Water Schedule) \[Article 3(c)\]

If the schedule varies from the monthly water quantities in Exhibit A of
the contract, the Contracting Officer will verify that the scheduled
quantities for the contract period (April through October) and the
critical period (July through August for Anderson-Cottonwood ID and
Glenn-Colusa ID; July through September for all others) do not exceed
the maximum quantities in Exhibit A.

\[Article 3(c)(2)(i) and (ii)\]

2\. On April 1 of each Year and concurrently with its water schedule for
the irrigation season, the Contractor is required to provide information
to the Contracting Officer necessary to calculate the water requirement
on Eligible Land. Form LS-924, Summary of Water Requirements for Crops
Grown on Eligible Land is to be used for that purpose. (See Addendum B,
LS-924)

The Contracting Officer will compare the monthly water requirements for
Eligible Land shown in Column 7 of Form LS-924 with the monthly
quantities of Project Water on Exhibit A or scheduled revision. If in
any month the Project Water scheduled exceeds the water requirement for
Eligible Land, the Contractor is to be informed in writing to install
equipment to measure the water diversions to Ineligible Land in
accordance with the mingling provision of the contract.

\[Article 18(c)\]

3\. Prior to May 1, the Contracting Officer will send a bill to each
contractor for 1/2 the total amount payable. (See Addendum C, Example of
1^st^ half-payment) \[Article 8(c)(1)\]

4\. Prior to July 1, the Contracting Officer will send a bill to each
contractor for the remaining amount payable. (See Addendum D, Example of
2^nd^ half-payment)

\[Article 8(c)(1)\]

5\. If at any time during the Year, the amount of Project Water diverted
equals 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 further Project Water diversions. \[Article 8(c)(1)\]

Draft Procedures and Forms to Be Used in Administering the Sacramento
River Settlement Contracts (page 2)

(NCAO DRAFT 10-31-02)

6\. The allocation of actual water diversions between Base Supply and
Project Water shall be based on the following procedures (See Addendum
E, Example of Fiscal Accounting of Monthly Diversions with Base Supply
Rescheduling):

\(a\) All diversions will be accounted for on a monthly basis.

\(b\) The Contracting Officer will accomplish measurement of water
diversions on the first day of each month.

\(c\) Water diversions will be allocated first to the Base Supply
quantity and then to the Project Water quantity available for that month
as specified in Exhibit A of the contract.

> \(i\) An exception to this methodology will be made if the quantity of
> Project Water diverted exceeds the water requirement for Eligible Land
> and there is sufficient Base Supply to cover the quantity of the
> diversion above the Eligible Land requirement.
>
> \(ii\) If there is not sufficient Base Supply available, the
> Contracting Officer must make up the difference with Project Water.
> The Contractor shall pay Reclamation the applicable Full-Cost Rate and
> Charge, unadjusted for ability to pay, for each acre-foot of Project
> Water diverted to Ineligible Land*.*

\(d\) The Contracting Officer will provide a statement of water
diversions to the Contractor no later than the 10^th^ of the month
following the month in which the water is diverted.

\(e\) The Contractor will advise the Contracting Officer, in writing, no
later than the 15^th^ of the month following the month in which the
water is diverted, of the source of water diverted in excess of the Base
Supply and Project Water quantities available for that month.

\(f\) The Contractor will remit payment to the Contracting Officer for
the rescheduling fee required by Article 3(c)(1) before the end of the
month following the month into which Base Supply is rescheduled from
another month. No rescheduling fee applies to Project Water moved into a
month from another month.

\(g\) The Contractor will remit payment to the Contracting Officer for
Restoration Fund Charges required by Article 3(c)(2) before the end of
the month following the month of delivery or transfer of Project Water.

Draft Procedures and Forms to Be Used in Administering the Sacramento
River Settlement Contracts (page 3)

(NCAO DRAFT 10-31-02)

\(h\) In addition to Base Supply and Project Water, any other water to
be diverted must be identified in the schedule to be submitted by the
Contractor to the Contracting Officer prior to diversion of that other
water. \[Article 3(b)\]