AG and M&I 

SCC Draft 10/22-2004 

SCC Draft 09/30-2004 

SCC Draft 08/19-2004 

SCC Draft 07/21-2004 

Contract No. 

 14-06-200-7773A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

SAN LUIS WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM SAN LUIS UNIT AND DELTA DIVISION

Table of Contents

Article No. Title Page No.

 Preamble ................................................................................................................. 1 

 Explanatory Recitals............................................................................................ 2-6 

 1 Definitions .........................................................................................................6-11

 2 Term of Contract.............................................................................................. 11-15

 3 Water to be Made Available and Delivered to the Contractor ........................ 15-19 

 4 Time for Delivery of Water ............................................................................. 19-20 

 5 Point of Diversion and Responsibility for Distribution of Water.................... 21-23 

 6 Measurement of Water Within the Contractor’s Service Area........................ 23-25 

 7 Rates and Method of Payment for Water......................................................... 25-32 

 8 Non-Interest Bearing Operation and Maintenance Deficits ................................. 32 

 9 Sales, Transfers, or Exchanges of Water ......................................................... 32-34 

 10 Application of Payments and Adjustments...................................................... 34-35 

 11 Temporary Reductions--Return Flows ............................................................ 35-36 

 12 Constraints on the Availability of Water ......................................................... 36-39 

 13 Unavoidable Groundwater Percolation................................................................. 39 

 14 Rules and Regulations .......................................................................................... 39 

 15 Water and Air Pollution Control........................................................................... 39 

 16 Quality of Water .............................................................................................. 39-40 

 17 Water Acquired by the Contractor Other Than From the United States ......... 40-43 

 18 Opinions and Determinations ............................................................................... 44 

 19 Coordination and Cooperation......................................................................... 44-46 

 20 Charges for Delinquent Payments ................................................................... 46-47
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Contract No. 14-06-200-7773A-LTR1 

 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity............................................................................................ 47-48 

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 48 

 23 Compliance With Civil Rights Laws and Regulations .................................... 48-49 

 24 Privacy Act Compliance .................................................................................. 49-50 

 25 Contractor to Pay Certain Miscellaneous Costs ................................................... 50 

 26 Water Conservation ......................................................................................... 50-52 

 27 Existing or Acquired Water or Water Rights........................................................ 52 

 28 Operation and Maintenance by San Luis & Delta-Mendota 

 Water Authority ....................................................................................... 52-54 

 28.1 Operation and Maintenance by California Department of 

 Water Resources ......................................................................................... 54-56 

 28.2 Pumping Plants, Power for Pumping Plants, and Transfer 

 of Operation and Maintenance to the Contractor......................................... 56-60 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 60 

 30 Books, Records, and Reports........................................................................... 60-61 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 61 

 32 Severability ...................................................................................................... 61-62 

 33 Resolution of Disputes.......................................................................................... 62 

 34 Officials Not to Benefit......................................................................................... 63 

 35 Changes in Contractor’s Service Area.................................................................. 63 

 36 Federal Laws......................................................................................................... 63 

 37 Notices .................................................................................................................. 64

 38 Confirmation of Contract...................................................................................... 64 

 Signature Page ...................................................................................................... 65 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
SCC Draft 10/22-2004 

SCC Draft 09/30-2004 

SCC Draft 08/19-2004 

SCC Draft 07/21-2004 

Contract No. 

 14-06-200-7773A-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

6 AND

7 SAN LUIS WATER DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM SAN LUIS UNIT AND DELTA DIVISION

10 THIS CONTRACT, made this _____ day of ____________________, 2005, in pursuance 

11 generally of the Act of June 17, 1902 (32 Stat. 388), and acts amendatory or supplementary thereto, 

12 including, but not limited to, the Acts of August 26, 1937 (50 Stat. 844), as amended and 

13 supplemented, August 4, 1939 (53 Stat. 1187), as amended and supplemented, July 2, 1956 (70 Stat. 

14 483), June 3, 1960 (74 Stat. 156), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), 

15 October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV of the Act of October 30, 1992 

16 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, between THE 

17 UNITED STATES OF AMERICA, hereinafter referred to as the United States, and SAN LUIS 

18 WATER DISTRICT, hereinafter referred to as the Contractor, a public agency of the State of 

19 California, duly organized, existing, and acting pursuant to the laws thereof; 

20 WITNESSETH, That: 
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21 EXPLANATORY RECITALS

[1st 22 ] WHEREAS, the United States has constructed and is operating the Central Valley 

23 Project (Project), California, for diversion, storage, carriage, distribution and beneficial use, for flood 

24 control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection and 

25 restoration, generation and distribution of electric energy, salinity control, navigation and other 

26 beneficial uses, of waters of the Sacramento River, the American River, the Trinity River, and the 

27 San Joaquin River and their tributaries; and 

[2nd 28 ] WHEREAS, the United States constructed the Delta Division Facilities, including the 

29 San Luis Unit facilities (which include the San Luis Canal and Dos Amigos Pumping Plant), which 

30 will be used in part for the furnishing of water to the Contractor pursuant to the terms of this 

31 Contract; and 

[3rd 32 ] WHEREAS, the rights to Project Water were acquired by the United States pursuant 

33 to California law for operation of the Project; and 

[4th 34 ] WHEREAS, the Contractor and the United States entered into Contract 

35 No. 14-06-200-7773A, as amended , which established terms for the delivery to the Contractor of 

36 Project Water from January 1, 1975, through December 31, 2008, hereinafter referred to as the 

37 Existing Contract; and 

38 [4.1] WHEREAS, the Existing Contract originally provided that the Contracting Officer 

39 would make available for delivery to the Contractor 128,000 acre-feet of Project Water for irrigation 

40 and M&I purposes each year, but was subsequently revised by mutual agreement of the Contracting 

41 Officer and the Contractor to provide that the Contracting Officer would make available for delivery 
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42 to the Contractor 125,080 acre-feet of Project Water for irrigation and M&I purposes each year; and 

[5th 43 ] WHEREAS, the United States and the Contractor have pursuant to Subsection 

44 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into a 

45 binding agreement identified as Binding Agreement No. 14-06-200-7773A-BA, which sets out the 

46 terms pursuant to which the Contractor agreed to renew the Existing Contract before the expiration 

47 date after completion of the Programmatic Environmental Impact Statement (PEIS) and other 

48 appropriate environmental documentation and negotiation of a renewal contract; and which also sets 

49 out the consequences of a subsequent decision not to renew: and 

[6th 50 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal the 

51 Existing Contract following completion of appropriate environmental documentation, including a 

52 PEIS pursuant to the National Environmental Policy Act (NEPA) analyzing the direct and indirect 

53 impacts and benefits of implementing the CVPIA and the potential renewal of all existing contracts 

54 for Project Water; and 

[7th 55 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

56 environmental review necessary to provide for long-term renewal of the Existing Contract; and 

[8th 57 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

58 Contract, pursuant to the terms of the Existing Contract, Federal Reclamation law, and the laws of the 

59 State of California, for water service from the Project; and 

[9th 60 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

61 its obligations under the Existing Contract; and 
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[10th 62 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

63 Officer that the Contractor has utilized the Project Water supplies available to it for reasonable and 

64 beneficial use and expects to utilize fully for reasonable and beneficial use the quantity of Project 

65 Water to be made available to it pursuant to this Contract; and 

[11th 66 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

67 agricultural areas within California for more than 50 years, and is considered by the Contractor as an 

68 essential portion of its water supply; and 

[12th 69 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

70 depend upon the continued availability of water, including water service from the Project; and 

71 [12.1] WHEREAS, the United States Court of Appeals for the Ninth Circuit has held that 

72 Section 1(a) of the San Luis Act, Public Law 86-488, 74 Stat. 156, imposes on the Secretary a duty to 

73 provide drainage service to the San Luis Unit; and 

74 [12.2] WHEREAS, the Contractor and the Contracting Officer recognize that adequate 

75 drainage service is required to maintain agricultural production within certain areas served with 

76 Project Water made available under this Contract and all renewals thereof; and 

[12.3] WHEREAS, the Contacting Officer intends, to the extent appropriated funds are 

available, to develop and implement effective solutions to drainage problems in the San Luis Unit; and 

77 

78 [12.4] WHEREAS, the Contracting Officer and the Contractor acknowledge: that such 

79 drainage solutions may involve actions not originally contemplated and/or the construction or use of

80 facilities other than the San Luis Drain; that the Contractor is investing in drainage solutions for lands 
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81 within its boundaries that would be considered by the Contracting Officer in determine drainage 

82 solutions; and that the existing ratesetting policy as it relates to the allocation and collection of 

83 drainage costs may require amendment to recognize those investments by the Contractor and other 

84 relevant circumstances; and 

[13th 85 ] WHEREAS, the Secretary intends through coordination, cooperation, and partnerships 

86 to pursue measures to improve water supply, water quality, and reliability of the Project for all 

87 Project purposes; and 

[14th 88 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

89 provide for reliable Project Water supplies; to control costs of those supplies; to achieve repayment 

90 of the Project as required by law; to guard reasonably against Project Water shortages; to achieve a 

91 reasonable balance among competing demands for use of Project Water; and to comply with all 

92 applicable environmental statutes, all consistent with the legal obligations of the United States 

93 relative to the Project; and 

94 [14.1] WHEREAS, the parties intend by this Contract to develop a more cooperative 

95 relationship in order to achieve their mutual goals; and 

[15th 96 ] WHEREAS, the Contractor has utilized or may utilize transfers, contract assignments, 

97 rescheduling and conveyance of Project Water and non-Project water under this Contract as tools to 

98 minimize the impacts of Conditions of Shortage and to maximize the beneficial use of water; and 

99 [15.1] WHEREAS, the parties desire and intend that this Contract not provide a disincentive 
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100 to the Contractor in continuing to carry out the beneficial activities set out in the Explanatory Recital 

101 immediately above; and 

[16th 102 ] WHEREAS, the United States and the Contractor are willing to enter into this 

103 Contract pursuant to Federal Reclamation law on the terms and conditions set forth below; 

104 NOW, THEREFORE, in consideration of the mutual and dependent covenants herein 

105 contained, it is hereby mutually agreed by the parties hereto as follows: 

106 DEFINITIONS

107 1. When used herein unless otherwise distinctly expressed, or manifestly incompatible 

108 with the intent of the parties as expressed in this Contract, the term: 

109 (a) “Calendar Year” shall mean the period January 1 through December 31, both 

110 dates inclusive; 

111 (b) “Charges” shall mean the payments required by Federal Reclamation law in 

112 addition to the Rates and Tiered Pricing Component specified in this Contract as determined annually 

113 by the Contracting Officer pursuant to this Contract; 

114 (c) “Condition of Shortage” shall mean a condition respecting the Project during 

115 any Year such that the Contracting Officer is unable to deliver sufficient water to meet the Contract 

116 Total; 

117 (d) “Contracting Officer” shall mean the Secretary of the Interior’s duly 

118 authorized representative acting pursuant to this Contract or applicable Federal Reclamation law or 
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119 regulation; 

120 (e) “Contract Total” shall mean the maximum amount of water to which the 

121 Contractor is entitled under subdivision (a) of Article 3 of this Contract; 

122 (f) “Contractor's Service Area" shall mean the area to which the Contractor is 

123 permitted to provide Project Water under this Contract as described in Exhibit “A” attached hereto, 

124 which may be modified from time to time in accordance with Article 35 of this Contract without 

125 amendment of this Contract; 

126 (g) “CVPIA” shall mean the Central Valley Project Improvement Act, Title 

127 XXXIV of the Act of October 30, 1992 (106 Stat. 4706); 

128 (g.1) “Delta Division Facilities” shall mean those existing and future Project 

129 facilities in and south of the Sacramento-San Joaquin Rivers Delta, including, but not limited to, the 

130 Tracy Pumping Plant, the O’Neill Forebay, the O’Neill Pumping/Generating Plant, and the San Luis 

131 Reservoir, used to divert, store and convey water to those Project Contractors entitled to receive 

132 water conveyed through the Delta-Mendota Canal; 

133 (h) “Eligible Lands” shall mean all lands to which Irrigation Water may be 

134 delivered in accordance with Section 204 of the Reclamation Reform Act of October 12, 1982 (96 

135 Stat. 1263), as amended, hereinafter referred to as RRA; 

136 (i) “Excess Lands” shall mean all lands in excess of the limitations contained in 

137 Section 204 of the RRA, other than those lands exempt from acreage limitation under Federal 
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138 Reclamation law; 

139 (j) “Full Cost Rate” shall mean an annual rate, as determined by the Contracting 

140 Officer that shall amortize the expenditures for construction properly allocable to the Project 

141 irrigation or M&I functions, as appropriate, of facilities in service including all Operation and 

142 Maintenance (O&M) deficits funded, less payments, over such periods as may be required under 

143 Federal Reclamation law, or applicable contract provisions. Interest will accrue on both the 

144 construction expenditures and funded O&M deficits from October 12, 1982, on costs outstanding at 

145 that date, or from the date incurred in the case of costs arising subsequent to October 12, 1982, and 

146 shall be calculated in accordance with subsections 202(3)(B) and (3)(C) of the RRA. The Full-Cost 

147 Rate includes actual operation, maintenance, and replacement costs consistent with Section 426.2 of 

148 the Rules and Regulations for the RRA; 

149 (k) “Ineligible Lands” shall mean all lands to which Irrigation Water may not be 

150 delivered in accordance with Section 204 of the RRA; 

151 (l) “Irrigation Full Cost Water Rate” shall mean the Full Cost Rate applicable to 

152 the delivery of Irrigation Water; 

153 (m) “Irrigation Water” shall mean water made available from the Project that is 

154 used primarily in the production of agricultural crops or livestock, including domestic use incidental 

155 thereto, and watering of livestock; 

156 (n) “Landholder” shall mean a party that directly or indirectly owns or leases 

157 nonexempt land, as provided in 43 CFR 426.2; 

158 (o) “Municipal and Industrial (M&I) Water” shall mean Project Water, other than 
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159 Irrigation Water, made available to the Contractor. M&I Water shall include water used for human 

160 use and purposes such as the watering of landscaping or pasture for animals (e.g., horses) which are 

161 kept for personal enjoyment or water delivered to landholdings operated in units of less than five 

162 acres unless the Contractor establishes to the satisfaction of the Contracting Officer that the use of 

163 water delivered to any such landholding is a use described in subdivision (m) of this Article; 

164 (p) “M&I Full Cost Water Rate” shall mean the Full Cost Rate applicable to the 

165 delivery of M&I Water; 

166 (q) “Operation and Maintenance” or “O&M" shall mean normal and reasonable 

167 care, control, operation, repair, replacement (other than capital replacement), and maintenance of 

168 Project facilities; 

169 (r) “Operating Non-Federal Entity” shall mean the entity(ies), its (their) 

170 successors or assigns, which has (have) the obligation to operate and maintain all or a portion of the 

171 Delta Division Facilities pursuant to written agreement(s) with the United States. When this Contract 

172 was 

173 entered into, the Operating Non-Federal Entity(ies) was (were) the San Luis & Delta-Mendota Water 

174 Authority and, with respect to San Luis Unit facilities, the California Department of Water 

175 Resources; 

176 (s) “Project” shall mean the Central Valley Project owned by the United States 

177 and managed by the Department of the Interior, Bureau of Reclamation; 

178 (t) “Project Contractors” shall mean all parties who have water service contracts 
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179 for Project Water from the Project with the United States pursuant to Federal Reclamation law; 

180 (u) “Project Water” shall mean all water that is developed, diverted, stored, or 

181 delivered by the Secretary in accordance with the statutes authorizing the Project and in accordance 

182 with the terms and conditions of water rights acquired pursuant to California law; 

183 (v) “Rates” shall mean the payments determined annually by the Contracting 

184 Officer in accordance with the then current applicable water ratesetting policies for the Project, as 

185 described in subdivision (a) of Article 7 of this Contract; 

186 (w) “Recent Historic Average” shall mean the most recent five year average of the 

187 final forecast of Water Made Available to the Contractor pursuant to this Contract or its preceding 

188 contract(s); 

189 (x) “Secretary” shall mean the Secretary of the Interior, a duly appointed 

190 successor, or an authorized representative acting pursuant to any authority of the Secretary and 

191 through any agency of the Department of the Interior; 

192 (y) “Tiered Pricing Component” shall be the incremental amount to be paid for 

193 each acre-foot of Water Delivered as described in subdivision (j) of Article 7 of this Contract; 

194 (z) “Water Delivered” or “Delivered Water” shall mean Project Water diverted for 

195 use by the Contractor at the point(s) of delivery approved by the Contracting Officer; 

196 (aa) “Water Made Available” shall mean the estimated amount of Project Water 

197 that can be delivered to the Contractor for the upcoming Year as declared by the Contracting Officer, 

198 pursuant to subdivision (a) of Article 4 of this Contract; 

199 (bb) “Water Scheduled” shall mean Project Water made available to the Contractor 
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200 for which times and quantities for delivery have been established by the Contractor and Contracting 

201 Officer, pursuant to subdivision (b) of Article 4 of this Contract; and 

202 (cc) "Year" shall mean the period from and including March 1 of each Calendar 

203 Year through the last day of February of the following Calendar Year. 

204 TERM OF CONTRACT 

205 2. (a) This Contract shall be effective March 1, 2005, through February 28, 2030, 

206 and supercedes the Existing Contract . In the event the Contractor wishes to renew this Contract 

207 beyond February 28, 2030, the Contractor shall submit a request for renewal in writing to the 

208 Contracting Officer no later than two years prior to the date this Contract expires. The renewal of 

209 this Contract insofar as it pertains to the furnishing of Irrigation Water to the Contractor shall be 

210 governed by subdivision (b) of this Article, and the renewal of this Contract insofar as it pertains to 

211 the furnishing of M&I Water to the Contractor shall be governed by subdivision (c) of this Article. 

212 (b) (1) Under terms and conditions of a renewal contract that are mutually 

213 agreeable to the parties hereto, and upon a determination by the Contracting Officer that at the time 

214 of contract renewal the conditions set forth in subdivision (b)(2) of this Article are met, and subject to 

215 Federal and State law, this Contract, insofar as it pertains to the furnishing of Irrigation Water to the 

216 Contractor, shall be renewed for a period of 25 years. 

217 (2) The conditions which must be met for this Contract to be renewed are 

218 (i) the Contractor has prepared a water conservation plan that has been determined by the Contracting 

219 Officer in accordance with Article 26 of this Contract to meet the conservation and efficiency criteria 

220 for evaluating such plans established under Federal law; (ii) the Contractor is implementing an 
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221 effective water conservation and efficiency program based on the Contractor’s water conservation 

222 plan as required by Article 26 of this Contract; (iii) the Contractor is operating and maintaining all 

223 water measuring devices and implementing all water measurement methods as approved by the 

224 Contracting Officer pursuant to Article 6 of this Contract; (iv) the Contractor has reasonably and 

225 beneficially used the Project Water supplies made available to it and, based on projected demands, is 

226 reasonably anticipated and expects fully to utilize for reasonable and beneficial use the quantity of 

227 Project Water to be made available to it pursuant to such renewal; (v) the Contractor is complying 

228 with all terms and conditions of this Contract; and (vi) the Contractor has the physical and legal 

229 ability to deliver Project Water. 

230 (3) The terms and conditions of the renewal contract described in 

231 subdivision (b)(1) of this Article and any subsequent renewal contracts shall be developed consistent 

232 with the parties’ respective legal rights and obligations, and in consideration of all relevant facts and 

233 circumstances, as those circumstances exist at the time of renewal, including, without limitation, the 

234 Contractor’s need for continued delivery of Project Water; environmental conditions affected by 

235 implementation of the Contract to be renewed, and specifically changes in those conditions that 

236 occurred during the life of the Contract to be renewed; the Secretary’s progress toward achieving the 

237 purposes of the CVPIA as set out in Section 3402 and in implementing the specific provisions of the 

238 CVPIA; and current and anticipated economic circumstances of the region served by the Contractor. 

239 (c) This Contract, insofar as it pertains to the furnishing of M&I Water to the 

240 Contractor, shall be renewed successive periods of up to 40 years each, which periods shall be 

241 consistent with the then-existing Reclamation-wide policy, under terms and conditions mutually 
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242 agreeable to the parties and consistent with Federal and State law. The Contractor shall be afforded 

243 the opportunity to comment to the Contracting Officer on the proposed adoption and application of 

244 any revised policy applicable to the delivery of M&I Water that would limit the term of any 

245 subsequent renewal contract with the Contractor for the furnishing of M&I Water to less than 40 

246 years. 

247 (d) The Contracting Officer shall make a determination ten years after the date of 

248 execution of this Contract, and every five years thereafter during the term of this Contract, of whether 

249 a conversion of the relevant portion of this Contract to a contract under subsection 9(d) of the 

250 Reclamation Project Act of 1939 can be accomplished pursuant to the Act of July 2, 1956 (70 Stat 

251 483). The Contracting Officer shall also make a determination ten years after the date of execution 

252 of this Contract and every five years thereafter during the term of this Contract of whether a 

253 conversion of the relevant portion of this Contract to a contract under subsection 9(c)(1) of the 

254 Reclamation Project Act of 1939 can be accomplished. Notwithstanding any provision of this 

255 Contract, the Contractor reserves and shall have all rights and benefits under the Act of July 2, 1956 

256 (70 Stat. 483). The Contracting Officer anticipates that during the term of this Contract, all 

257 authorized Project construction expected to occur will have occurred, and on that basis the 

258 Contracting Officer agrees upon such completion to allocate all costs that are properly assignable to 

259 the Contractor, and agrees further that, at any time after such allocation is made, and subject to 

260 satisfaction of the condition set out in this subdivision, this Contract shall, at the request of the 

261 Contractor, be converted to a contract under subsection 9(d) or 9(c)(1), whichever is applicable, of 

262 the Reclamation Project Act of 1939, subject to applicable Federal law and under stated terms and 
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263 conditions mutually agreeable to the Contractor and the Contracting Officer. A condition for such 

264 conversion to occur shall be a determination by the Contracting Officer that, account being taken of 

265 the amount credited to return by the Contractor as provided for under Federal Reclamation law, the 

266 remaining amount of construction costs assignable for ultimate return by the Contractor can probably 

267 be repaid to the United States within the term of a contract under subsection 9(d) or 9(c)(1), 

268 whichever is applicable. If the remaining amount of costs that are properly assignable to the 

269 Contractor cannot be determined during the term of this Contract, the Contracting Officer shall notify 

270 the Contractor, and provide the reason(s) why such a determination could not be made. Further, the 

271 Contracting Officer shall make such a determination as soon thereafter as possible so as to permit, 

272 upon request of the Contractor and satisfaction of the condition set out above, conversion to a 

273 contract under subsection 9(d) or 9(c)(1), whichever is applicable. In the event such determination of 

274 costs has not been made at a time which allows conversion of this Contract during the term of this 

275 Contract or the Contractor has not requested conversion of this Contract within such term, the parties 

276 shall incorporate in any subsequent renewal contract as described in subdivision (b) of this Article a 

277 provision that carries forth in substantially identical terms the provisions of this subdivision. 

278 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

279 3. (a) During each Year, consistent with all applicable State water rights, permits, 

280 and licenses, Federal law, and subject to the provisions set forth in Articles 11 and 12 of this 

281 Contract, the Contracting Officer shall make available for delivery to the Contractor 125,080 acre282 feet of Project Water for irrigation and M&I purposes. Water Delivered to the Contractor in 

283 accordance with this subdivision shall be scheduled and paid for pursuant to the provisions of 
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284 Articles 4 and 7 of this Contract. 

285 (b) Because the capacity of the Project to deliver Project Water has been 

286 constrained in recent years and may be constrained in the future due to many factors including 

287 hydrologic conditions and implementation of Federal and State laws, the likelihood of the Contractor 

288 actually receiving the amount of Project Water set out in subdivision (a) of this Article in any given 

289 Year is uncertain. The Contracting Officer’s modeling referenced in the PEIS projected that the 

290 Contract Total set forth in this Contract will not be available to the Contractor in many years. During 

291 the most recent five years, the Recent Historic Average of Water Made Available to the Contractor 

292 was 82,303 acre-feet. Nothing in subdivision (b) of this Article shall affect the rights and obligations 

293 of the parties under any provision of this Contract. 

294 (c) The Contractor shall utilize the Project Water in accordance with all applicable 

295 legal requirements. 

296 (c.1) In the event any Project Contractor (other than a Cross Valley Contractor) that 

297 receives Project Water through the Delta Division Facilities obtains a contractual agreement that the 

298 Contracting Officer shall make Project Water available at a point or points of delivery in or north of 

299 the Delta, at the request of the Contractor and upon completion of any required environmental 

300 documentation, this Contract shall be amended to provide for deliveries in or north of the Delta on 

301 mutually agreeable terms. Such amendments to the Contract shall be limited solely to those changes 

302 made necessary by the addition of such alternate points of delivery in or north of the Delta; 

303 Provided, That the Contracting Officer’s use of the Harvey O. Banks Pumping Plant to deliver 

304 Project Water does not trigger this right of amendment. 
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305 (d) The Contractor shall make reasonable and beneficial use of all water furnished 

306 pursuant to this Contract. Groundwater recharge programs (direct, indirect, or in lieu), groundwater 

307 banking programs, surface water storage programs, and other similar programs utilizing Project 

308 Water or other water furnished pursuant to this Contract conducted within the Contractor’s Service 

309 Area which are consistent with applicable State law and result in use consistent with Federal 

310 Reclamation law will be allowed; Provided, That any direct recharge program(s) is (are) described in 

311 the Contractor’s water conservation plan submitted pursuant to Article 26 of this Contract; Provided, 

312 further, That such water conservation plan demonstrates sufficient lawful uses exist in the 

313 Contractor’s Service Area so that using a long-term average, the quantity of Delivered Water is 

314 demonstrated to be reasonable for such uses and in compliance with Federal Reclamation law. 

315 Groundwater recharge programs, groundwater banking programs, surface water storage programs, 

316 and other similar programs utilizing Project Water or other water furnished pursuant to this Contract 

317 conducted outside the Contractor’s Service Area may be permitted upon written approval of the 

318 Contracting Officer, which approval will be based upon environmental documentation, Project Water 

319 rights, and Project operational concerns. The Contracting Officer will address such concerns in 

320 regulations, policies, or guidelines. 

321 (e) The Contractor shall comply with requirements applicable to the Contractor in 

322 biological opinion(s) prepared as a result of a consultation regarding the execution of this Contract 

323 undertaken pursuant to Section 7 of the Endangered Species Act of 1973 (ESA), as amended, that are 

324 within the Contractor’s legal authority to implement. The Existing Contract, which evidences in 

325 excess of 30 years of diversions for irrigation and/or M&I purposes of the quantities of water 
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326 provided in subdivision (a) of Article 3 of this Contract, will be considered in developing an 

327 appropriate baseline for the biological assessment(s) prepared pursuant to the ESA, and any other 

328 needed environmental review. Nothing herein shall be construed to prevent the Contractor from 

329 challenging or seeking judicial relief in a court of competent jurisdiction with respect to any 

330 biological opinion or other environmental documentation referred to in this Article.

331 (f) Following the declaration of Water Made Available under Article 4 of this 

332 Contract, the Contracting Officer will make a determination whether Project Water, or other water 

333 available to the Project, can be made available to the Contractor in addition to the Contract Total 

334 under this Article during the Year without adversely impacting other Project Contractors. At the 

335 request of the Contractor, the Contracting Officer will consult with the Contractor prior to making 

336 such a determination. If the Contracting Officer determines that Project Water, or other water 

337 available to the Project, can be made available to the Contractor, the Contracting Officer will 

338 announce the availability of such water and shall so notify the Contractor as soon as practical. The 

339 Contracting Officer will thereafter meet with the Contractor and other Project Contractors capable of 

340 taking such water to determine the most equitable and efficient allocation of such water. If the 

341 Contractor requests the delivery of any quantity of such water, the Contracting Officer shall make 

342 such water available to the Contractor in accordance with applicable statutes, regulations, guidelines, 

343 and policies. Subject to existing long-term contractual commitments, water rights and operational 

344 constraints, long-term Project Contractors shall have a first right to acquire such water, including 

345 Project Water made available pursuant to Section 215 of the RRA. 

346 (g) The Contractor may request permission to reschedule for use during the 
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347 subsequent Year some or all of the Water Made Available to the Contractor during the current Year, 

348 referred to as “rescheduled water.” The Contractor may request permission to use during the current 

349 Year a quantity of Project Water which may be made available by the United States to the Contractor 

350 during the subsequent Year referred to as “preuse.” The Contracting Officer’s written approval may 

351 permit such uses in accordance with applicable statutes, regulations, guidelines, and policies. 

352 (h) The Contractor’s right pursuant to Federal Reclamation law and applicable 

353 State law to the reasonable and beneficial use of Water Delivered pursuant to this Contract during the 

354 term thereof and any subsequent renewal contracts, as described in Article 2 of this Contract, during 

355 the terms thereof shall not be disturbed so long as the Contractor shall fulfill all of its obligations 

356 under this Contract and any renewals thereof. Nothing in the preceding sentence shall affect the 

357 Contracting Officer’s ability to impose shortages under Article 11 or subdivision (b) of Article 12 of 

358 this Contract or applicable provisions of any subsequent renewal contracts. 

359 (i) Project Water furnished to the Contractor pursuant to this Contract may be 

360 delivered for purposes other than those described in subdivisions (m) and (o) of Article 1 of this 

361 Contract upon written approval by the Contracting Officer in accordance with the terms and 

362 conditions of such approval. 

363 (j) The Contracting Officer shall make reasonable efforts to protect the water 

364 rights necessary for the Project and to provide the water available under this Contract. The 

365 Contracting Officer shall not object to participation by the Contractor, in the capacity and to the 

366 extent permitted by law, in administrative proceedings related to the Project Water rights; Provided, 

367 that the Contracting Officer retains the right to object to the substance of the Contractor’s position in 
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368 such a proceeding; Provided, further, That in such proceedings the Contracting Officer shall 

369 recognize the Contractor has a legal right under the terms of this Contract to use Project Water. 

370 TIME FOR DELIVERY OF WATER

371 4. (a) On or about February 20 of each Calendar Year, the Contracting Officer shall 

372 announce the Contracting Officer’s expected declaration of the Water Made Available. Such 

373 declaration will be expressed in terms of both Water Made Available and the Recent Historic 

374 Average and will be updated monthly, and more frequently if necessary, based on then-current 

375 operational and hydrologic conditions and a new declaration with changes, if any, to the Water Made 

376 Available will be made. The Contracting Officer shall provide forecasts of Project operations and the 

377 basis of the estimate, with relevant supporting information, upon the written request of the 

378 Contractor. Concurrently with the declaration of the Water Made Available, the Contracting Officer 

379 shall provide the Contractor with the updated Recent Historic Average. 

380 (b) On or before each March 1 and at such other times as necessary, the Contractor 

381 shall submit to the Contracting Officer a written schedule, satisfactory to the Contracting Officer, 

382 showing the monthly quantities of Project Water to be delivered by the United States to the 

383 Contractor pursuant to this Contract for the Year commencing on such March 1. The Contracting 

384 Officer shall use all reasonable means to deliver Project Water according to the approved schedule 

385 for the Year commencing on such March 1. 

386 (c) The Contractor shall not schedule Project Water in excess of the quantity of 

387 Project Water the Contractor intends to put to reasonable and beneficial use within the Contractor's 

388 Service Area or to sell, transfer or exchange pursuant to Article 9 of this Contract during any Year. 
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389 (d) Subject to the conditions set forth in subdivision (a) of Article 3 of this 

390 Contract, the United States shall deliver Project Water to the Contractor in accordance with the initial 

391 schedule submitted by the Contractor pursuant to subdivision (b) of this Article, or any written 

392 revision(s) thereto satisfactory to the Contracting Officer, submitted within a reasonable time prior to 

393 the date(s) on which the requested change(s) is/are to be implemented. 

394 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

395 5. (a) Project Water scheduled pursuant to subdivision (b) of Article 4 of this 

396 Contract shall be delivered to the Contractor at Project facilities and any additional point or points of 

397 delivery either on Project facilities or another location or locations mutually agreed to in writing by 

398 the Contracting Officer and the Contractor. 

399 (b) The Contracting Officer, either directly or indirectly through its written 

400 agreements(s) with the Operating Non-Federal Entity(ies), shall make all reasonable efforts to 

401 maintain sufficient flows and levels of water in the Project facilities to deliver Project Water to the 

402 Contractor at the point or points of delivery established pursuant to subdivision (a) of this Article. 

403 (c) The Contractor shall deliver Irrigation Water in accordance with any 

404 applicable land classification provisions of Federal Reclamation law and the associated regulations. 

405 The Contractor shall not deliver Project Water to land outside the Contractor's Service Area unless 

406 approved in advance by the Contracting Officer. 

407 (d) All Water Delivered to the Contractor pursuant to this Contract shall be 

408 measured and recorded with equipment furnished, installed, operated, and maintained by the 

409 Contracting Officer either directly or indirectly through its written agreements(s) with the Operating 
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410 Non-Federal Entity(ies), unless undertaken by the Contractor with the consent of the Contracting 

411 Officer at the point or points of delivery established pursuant to subdivision (a) of this Article. Upon 

412 the request of either party to this Contract, the Contracting Officer shall investigate, or cause to be 

413 investigated by the appropriate Operating Non-Federal Entity (ies) the accuracy of such 

414 measurements and shall take any necessary steps to adjust any errors appearing therein. For any 

415 period of time when accurate measurements have not been made, the Contracting Officer shall 

416 consult with the Contractor and the appropriate Operating Non-Federal Entity(ies), if any, prior to 

417 making a final determination of the quantity delivered for that period of time. 

418 (e) Absent a separate contrary written agreement with the Contractor, neither the 

419 Contracting Officer nor any Operating Non-Federal Entity(ies) shall be responsible for the control, 

420 carriage, handling, use, disposal, or distribution of Water Delivered to the Contractor pursuant to this 

421 Contract beyond the point or points of delivery established pursuant to subdivision (a) of this Article. 

422 The Contractor shall indemnify the United States, its officers, employees, agents, and assigns on 

423 account of damage or claim of damage of any nature whatsoever for which there is legal 

424 responsibility, including property damage, personal injury, or death arising out of or connected with 

425 the control, carriage, handling, use, disposal, or distribution of such Water Delivered beyond such 

426 point or points of delivery except for any damage or claim arising out of: (i) acts or omissions of the 

427 Contracting Officer or any of its officers, employees, agents, and assigns, including the Operating 

428 Non-Federal Entity(ies) with the intent of creating the situation resulting in any damage or claim; (ii) 

429 willful misconduct of the Contracting Officer or any of its officers, employees, agents, and assigns, 

430 including the Operating Non-Federal Entity(ies); (iii) negligence of the Contracting Officer or any of 
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431 its officers, employees, agents, and assigns including the Operating Non-Federal Entity(ies); (iv) a 

432 malfunction of facilities owned and/or operated by the United States or the Operating Non-Federal 

433 Entity(ies); or (v) failure of the United States, its officers, employees, agents and assigns, including 

434 the Operating Non-Federal Entity(ies), to provide drainage service. 

435 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

436 6. (a) The Contractor has established a measuring program satisfactory to the 

437 Contracting Officer. The Contractor shall ensure that all surface water delivered for irrigation 

438 purposes within the Contractor’s Service Area is measured at each agricultural turnout and such 

439 water delivered for M&I purposes is measured at each M&I service connection. The water 

440 measuring devices or water measuring methods of comparable effectiveness must be acceptable to 

441 the Contracting Officer. The Contractor shall be responsible for installing, operating, and 

442 maintaining and repairing all such measuring devices and implementing all such water measuring 

443 methods at no cost to the United States. The Contractor shall use the information obtained from such 

444 water measuring devices or water measuring methods to ensure its proper management of the water; 

445 to bill water users for water delivered by the Contractor; and, if applicable, to record water delivered 

446 for M&I purposes by customer class as defined in the Contractor’s water conservation plan provided 

447 for in Article 26 of this Contract. Nothing herein contained, however, shall preclude the Contractor 

448 from establishing and collecting any charges, assessments, or other revenues authorized by California 

449 law. The Contractor shall include a summary of all its annual surface water deliveries in the annual 

450 report described in subdivision (c) of Article 26. 
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451 (b) To the extent the information has not otherwise been provided, upon execution 

452 of this Contract, the Contractor shall provide to the Contracting Officer a written report describing 

453 the measurement devices or water measuring methods being used or to be used to implement 

454 subdivision (a) of this Article and identifying the agricultural turnouts and the M&I service 

455 connections or alternative measurement programs approved by the Contracting Officer, at which such 

456 measurement devices or water measuring methods are being used, and, if applicable, identifying the 

457 locations at which such devices and/or methods are not yet being used including a time schedule for 

458 implementation at such locations. The Contracting Officer shall advise the Contractor in writing 

459 within 60 days as to the adequacy and necessary modifications, if any, of the measuring devices or 

460 water measuring methods identified in the Contractor’s report and if the Contracting Officer does not 

461 respond in such time, they shall be deemed adequate. If the Contracting Officer notifies the 

462 Contractor that the measuring devices or methods are inadequate, the parties shall within 60 days 

463 following the Contracting Officer’s response, negotiate in good faith the earliest practicable date by 

464 which the Contractor shall modify said measuring devices and/or measuring methods as required by 

465 the Contracting Officer to ensure compliance with subdivision (a) of this Article. 

466 (c) All new surface water delivery systems installed within the Contractor's 

467 Service Area after the effective date of this Contract shall also comply with the measurement 

468 provisions described in subdivision (a) of this Article. 

469 (d) The Contractor shall inform the Contracting Officer and the State of California 

470 in writing by April 30 of each Year of the monthly volume of surface water delivered within the 

471 Contractor’s Service Area during the previous Year. 
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472 (e) The Contractor shall inform the Contracting Officer and the Operating NonFederal Entity on or before the 20th 473 calendar day of each month of the quantity of Irrigation Water 

474 and M&I Water taken during the preceding month. 

475 RATES AND METHOD OF PAYMENT FOR WATER

476 7. (a) The Contractor shall pay the United States as provided in this Article for all 

477 Delivered Water at Rates, Charges, and the Tiered Pricing Component established in accordance 

478 with: (i) the Secretary’s ratesetting policy for Irrigation Water adopted in 1988 and the Secretary’s 

479 then-existing ratesetting policy for M&I Water. Such ratesetting policies shall be amended, 

480 modified, or superceded only through a public notice and comment procedure; (ii) applicable Federal 

481 Reclamation law and associated rules and regulations, or policies; and (iii) other applicable 

482 provisions of this Contract. Payments shall be made by cash transaction, electronic funds transfer, or 

483 any other mechanism as may be agreed to in writing by the Contractor and the Contracting Officer. 

484 The Rates, Charges, and Tiered Pricing Component applicable to the Contractor upon execution of 

485 this Contract are set forth in Exhibit “B,” as may be revised annually. 

486 (b) The Contracting Officer shall notify the Contractor of the Rates, Charges, and 

487 Tiered Pricing Components as follows: 

488 (1) Prior to July 1 of each Calendar Year, the Contracting Officer shall 

489 provide the Contractor an estimate of the Charges for Project Water that will be applied to the period 

490 October 1, of the current Calendar Year, through September 30, of the following Calendar Year, and 

491 the basis for such estimate. The Contractor shall be allowed not less than two months to review and 
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492 comment on such estimates. On or before September 15 of each Calendar Year, the Contracting 

493 Officer shall notify the Contractor in writing of the Charges to be in effect during the period October 

494 1 of the current Calendar Year, through September 30, of the following Calendar Year, and such 

495 notification shall revise Exhibit “B.” 

496 (2) Prior to October 1 of each Calendar Year, the Contracting Officer shall 

497 make available to the Contractor an estimate of the Rates and Tiered Pricing Component for Project 

498 Water for the following Year and the computations and cost allocations upon which those Rates are 

499 based. The Contractor shall be allowed not less than two months to review and comment on such 

500 computations and cost allocations. By December 31 of each Calendar Year, the Contracting Officer 

501 shall provide the Contractor with the final Rates and Tiered Pricing Component to be in effect for the 

502 upcoming Year, and such notification shall revise Exhibit “B”.

503 (c) At the time the Contractor submits the initial schedule for the delivery of 

504 Project Water for each Year pursuant to subdivision (b) of Article 4 of this Contract, the Contractor 

505 shall make an advance payment to the United States equal to the total amount payable pursuant to the 

506 applicable Rate(s) set under subdivision (a) of this Article, for the Project Water scheduled to be 

507 delivered pursuant to this Contract during the first two calendar months of the Year. Before the end 

508 of the first month and before the end of each calendar month thereafter, the Contractor shall make an 

509 advance payment to the United States, at the Rate(s) set under subdivision (a) of this Article, for the 

510 Water Scheduled to be delivered pursuant to this Contract during the second month immediately 

511 following. Adjustments between advance payments for Water Scheduled and payments at Rates due 

512 for Water Delivered shall be made before the end of the following month; Provided, That any revised 
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513 schedule submitted by the Contractor pursuant to Article 4 of this Contract which increases the 

514 amount of Water Delivered pursuant to this Contract during any month shall be accompanied with 

515 appropriate advance payment, at the Rates then in effect, to assure that Project Water is not delivered 

516 to the Contractor in advance of such payment. In any month in which the quantity of Water 

517 Delivered to the Contractor pursuant to this Contract equals the quantity of Water Scheduled and paid 

518 for by the Contractor, no additional Project Water shall be delivered to the Contractor unless and 

519 until an advance payment at the Rates then in effect for such additional Project Water is made. Final 

520 adjustment between the advance payments for the Water Scheduled and payments for the quantities 

521 of Water Delivered during each Year pursuant to this Contract shall be made as soon as practicable 

522 but no later than April 30th of the following Year, or sixty days after the delivery of Project Water 

523 rescheduled under subdivision (g) of Article 3 of this Contract if such water is not delivered by the 

524 last day of February. 

525 (d) The Contractor shall also make a payment in addition to the Rate(s) in 

526 subdivision (c) of this Article to the United States for Water Delivered, at the Charges and the 

527 appropriate Tiered Pricing Component then in effect, before the end of the month following the 

528 month of delivery; Provided, That the Contractor may be granted an exception from the Tiered 

529 Pricing Component pursuant to subdivision (j) (2) of this Article. The payments shall be consistent 

530 with the quantities of Irrigation Water and M&I Water Delivered as shown in the water delivery 

531 report for the subject month prepared by the Operating Non-Federal Entity(ies) or, if there is no 

532 Operating Non-Federal Entity, by the Contracting Officer. The water delivery report shall be deemed 

533 a bill for the payment of Charges and the applicable Tiered Pricing Component for Water Delivered. 
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534 Adjustment for overpayment or underpayment of Charges shall be made through the adjustment of 

535 payments due to the United States for Charges for the next month. Any amount to be paid for past 

536 due payment of Charges and the Tiered Pricing Component shall be computed pursuant to Article 20 

537 of this Contract. 

538 (e) The Contractor shall pay for any Water Delivered under subdivision (a), (f), or 

539 (g) of Article 3 of this Contract as determined by the Contracting Officer pursuant to applicable 

540 statutes, associated regulations, any applicable provisions of guidelines or ratesetting policies; 

541 Provided, That the Rate for Water Delivered under subdivision (d) of Article 3 of this Contract shall 

542 be no more than the otherwise applicable Rate for Irrigation Water or M&I Water under subdivision 

543 (a) of this Article. 

544 (f) Payments to be made by the Contractor to the United States under this 

545 Contract may be paid from any revenues available to the Contractor. 

546 (g) All revenues received by the United States from the Contractor relating to the 

547 delivery of Project Water or the delivery of non-Project water through Project facilities shall be 

548 allocated and applied in accordance with Federal Reclamation law and the associated rules or 

549 regulations, and the then current Project ratesetting policies for M&I Water or Irrigation Water. 

550 (h) The Contracting Officer shall keep its accounts pertaining to the administration 

551 of the financial terms and conditions of its long-term contracts, in accordance with applicable Federal 

552 standards, so as to reflect the application of Project costs and revenues. The Contracting Officer 

553 shall, each Year upon request of the Contractor, provide to the Contractor a detailed accounting of all 

554 Project and Contractor expense allocations, the disposition of all Project and Contractor revenues, 
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555 and a summary of all water delivery information. The Contracting Officer and the Contractor shall 

556 enter into good faith negotiations to resolve any discrepancies or disputes relating to accountings, 

557 reports, or information. 

558 (i) The parties acknowledge and agree that the efficient administration of this 

559 Contract is their mutual goal. Recognizing that experience has demonstrated that mechanisms, 

560 policies, and procedures used for establishing Rates, Charges, and the Tiered Pricing Component, 

561 and/or for making and allocating payments, other than those set forth in this Article may be in the 

562 mutual best interest of the parties, it is expressly agreed that the parties may enter into agreements to 

563 modify the mechanisms, policies, and procedures for any of those purposes while this Contract is in 

564 effect without amending this Contract. 

565 (j) (1) Beginning at such time as deliveries of Project Water in a Year exceed 

566 80 percent of the Contract Total, then before the end of the month following the month of delivery 

567 the Contractor shall make an additional payment to the United States equal to the applicable Tiered 

568 Pricing Component. The Tiered Pricing Component for the amount of Water Delivered in excess of 

569 80 percent of the Contract Total, but less than or equal to 90 percent of the Contract Total, shall equal 

570 one-half of the difference between the Rate established under subdivision (a) of this Article and the 

571 Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, whichever is applicable. The Tiered 

572 Pricing Component for the amount of Water Delivered which exceeds 90 percent of the Contract 

573 Total shall equal the difference between (i) the Rate established under subdivision (a) of this Article 

574 and (ii) the Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, whichever is applicable. 

575 For all Water Delivered pursuant to subdivision (a) of Article 3 of this Contract which is in excess of 
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576 80 percent of the Contract Total, this increment shall be deemed to be divided between Irrigation 

577 Water and M&I Water in the same proportion as actual deliveries of each bear to the cumulative total 

578 Water Delivered. 

579 (2) Subject to the Contracting Officer’s written approval, the Contractor 

580 may request and receive an exemption from such Tiered Pricing Component for Project Water 

581 delivered to produce a crop which the Contracting Officer determines will provide significant and 

582 quantifiable habitat values for waterfowl in fields where the water is used and the crops are produced; 

583 Provided, That the exemption from the Tiered Pricing Component for Irrigation Water shall apply 

584 only if such habitat values can be assured consistent with the purposes of the CVPIA through binding 

585 agreements executed with or approved by the Contracting Officer prior to use of such water. 

586 (3) For purposes of determining the applicability of the Tiered Pricing 

587 Component pursuant to this Article, Water Delivered shall include Project Water that the Contractor 

588 transfers to others but shall not include Project Water transferred to the Contractor, nor shall it 

589 include the additional water provided to the Contractor under the provisions of subdivision (f) of 

590 Article 3 of this Contract. 

 

591 (k) For the term of this Contract, Rates applied under the respective ratesetting 

592 policies will be established to recover only reimbursable O&M (including any deficits) and capital 

593 costs of the Project, as those terms are used in the then-current Project ratesetting policies, and 

594 interest, where appropriate, except in instances where a minimum Rate is applicable in accordance 

595 with the relevant Project ratesetting policy. Changes of significance in practices which implement 
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596 the Contracting Officer’s ratesetting policies will not be implemented until the Contracting Officer 

597 has provided the Contractor an opportunity to discuss the nature, need, and impact of the proposed 

598 change. 

599 (l) Except as provided in subsections 3405(a) (1) (B) and 3405(f) of the CVPIA, 

600 the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates, in

601 accordance with the applicable Project ratesetting policy, adjusted upward or downward to reflect the 

602 changed costs if any, incurred by the Contracting Officer in the delivery of the transferred Project 

603 Water to the transferee’s point of delivery. If the Contractor is receiving lower Rates and Charges 

604 because of inability to pay and is transferring Project Water to another entity whose Rates and 

605 Charges are not adjusted due to inability to pay, the Rates and Charges for transferred Project Water 

606 shall not be adjusted to reflect the Contractor’s inability to pay. 

607 (m) Pursuant to the Act of October 27, 1986 (100 Stat. 3050), the Contracting 

608 Officer is authorized to adjust determinations of ability to pay every 5 years. 

609 (n) With respect to the Rates for M&I Water, the Contractor asserts that it is not 

610 legally obligated to pay any Project deficits claimed by the United States to have accrued as of the 

611 date of this Contract or deficit-related interest charges thereon. By entering into this Contract, the 

612 Contractor does not waive any legal rights or remedies that it may have with respect to such disputed 

613 issues. Notwithstanding the execution of this Contract and payments made hereunder, the Contractor 

614 may challenge in the appropriate administrative or judicial forums: (1) the existence, computation, or 

615 imposition of any deficit charges accruing during the term of the Existing Contract and any preceding 

616 interim renewal contracts, if applicable; (2) interest accruing on any such deficits; (3) the inclusion of 
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617 any such deficit charges or interest in the Rates; (4) the application by the United States of payments 

618 made by the Contractor under its Existing Contract and any preceding interim renewal contracts, if 

619 applicable; and (5) the application of such payments in the Rates. The Contracting Officer agrees 

620 that the Contractor shall be entitled to the benefit of any administrative or judicial ruling in favor of 

621 any Project M&I contractor on any of these issues, and credits for payments heretofore made, 

622 provided that the basis for such ruling is applicable to the Contractor. 

623 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

624 8. The Contractor and the Contracting Officer concur that, as of the effective date of this 

625 Contract, the Contractor has no non-interest bearing O&M deficits and shall have no further liability 

626 therefore. 

627 SALES, TRANSFERS, OR EXCHANGES OF WATER

628 9. (a) The right to receive Project Water provided for in this Contract may be sold, 

629 transferred, or exchanged to others for reasonable and beneficial uses within the State of California if 

630 such sale, transfer, or exchange is authorized by applicable Federal and State laws, and applicable 

631 guidelines or regulations then in effect. No sale, transfer, or exchange of Project Water under this 

632 Contract may take place without the prior written approval of the Contracting Officer, except as 

633 provided for in subdivision (b) of this Article, and no such sales, transfers, or exchanges shall be 

634 approved absent all appropriate environmental documentation, including but not limited to, 

635 documents prepared pursuant to the NEPA and ESA. Such environmental documentation should 

636 include, as appropriate, an analysis of groundwater impacts and economic and social effects, 

637 including environmental justice, of the proposed water transfers on both the transferor and transferee. 
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638 (b) In order to facilitate efficient water management by means of water transfers of 

639 the type historically carried out among Project Contractors located within the same geographical area 

640 and to allow the Contractor to participate in an accelerated water transfer program during the term of 

641 this Contract, the Contracting Officer shall prepare, as appropriate, all necessary environmental 

642 documentation, including but not limited to, documents prepared pursuant to NEPA and ESA, 

643 analyzing annual transfers within such geographical areas and the Contracting Officer shall 

644 determine whether such transfers comply with applicable law. Following the completion of the 

645 environmental documentation, such transfers addressed in such documentation shall be conducted 

646 with advance notice to the Contracting Officer, but shall not require prior written approval by the 

647 Contracting Officer. Such environmental documentation and the Contracting Officer’s compliance 

648 determination shall be reviewed every five years and updated, as necessary, prior to the expiration of 

649 the then existing five year period. All subsequent environmental documentation shall include an 

650 alternative to 

651 evaluate not less than the quantity of Project Water historically transferred within the same 

652 geographical area. 

653 (c) For a water transfer to qualify under subdivision (b) of this Article, such water 

654 transfer must: (i) be for irrigation purposes for lands irrigated within the previous three years, for 

655 M&I use, groundwater recharge, groundwater banking, or similar groundwater activities, surface 

656 water storage, or fish and wildlife resources; not lead to land conversion; and be delivered to 

657 established cropland, wildlife refuges, groundwater basins or M&I use; (ii) occur within a single 
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658 Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water through existing 

659 facilities with no new construction or modifications to facilities and be between existing Project 

660 Contractors and/or the Contractor and the United States, Department of the Interior; and (v) comply 

661 with all applicable Federal, State, and local or tribal laws and requirements imposed for protection of 

662 the environment and Indian Trust Assets, as defined under Federal law. 

663 APPLICATION OF PAYMENTS AND ADJUSTMENTS

664 10. (a) The amount of any overpayment by the Contractor of the Contractor’s O&M, 

665 capital, and deficit (if any) obligations for the Year shall be applied first to any current liabilities of 

666 the Contractor arising out of this Contract then due and payable. Overpayments of more than $1,000 

667 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such overpayment at 

668 the option of the Contractor, may be credited against amounts to become due to the United States by 

669 the Contractor. With respect to overpayment, such refund or adjustment shall constitute the sole 

670 remedy of the Contractor or anyone having or claiming to have the right to the use of any of the 

671 Project Water supply provided for herein. All credits and refunds of overpayments shall be made 

672 within 30 days of the Contracting Officer obtaining direction as to how to credit or refund such 

673 overpayment in response to the notice to the Contractor that it has finalized the accounts for the Year 

674 in which the overpayment was made. 

675 (b) All advances for miscellaneous costs incurred for work requested by the 

676 Contractor pursuant to Article 25 of this Contract shall be adjusted to reflect the actual costs when 

677 the work has been completed. If the advances exceed the actual costs incurred, the difference will be 

678 refunded to the Contractor. If the actual costs exceed the Contractor's advances, the Contractor will 
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679 be billed for the additional costs pursuant to Article 25. 

680 TEMPORARY REDUCTIONS--RETURN FLOWS

681 11. (a) Subject to: (i) the authorized purposes and priorities of the Project and the 

682 requirements of Federal law and (ii) the obligations of the United States under existing contracts, or 

683 renewals thereof, providing for water deliveries from the Project, the Contracting Officer shall make 

684 all reasonable efforts to optimize Project Water deliveries to the Contractor as provided in this 

685 Contract. 

686 (b) The Contracting Officer or Operating Non-Federal Entity(ies) may temporarily 

687 discontinue or reduce the quantity of Water Delivered to the Contractor as herein provided for the 

688 purposes of investigation, inspection, maintenance, repair, or replacement of any of the Project 

689 facilities or any part thereof necessary for the delivery of Project Water to the Contractor, but so far 

690 as feasible the Contracting Officer or Operating Non-Federal Entity(ies) will give the Contractor due 

691 notice in advance of such temporary discontinuance or reduction, except in case of emergency, in 

692 which case no notice need be given; Provided, That the United States shall use its best efforts to 

693 avoid any discontinuance or reduction in such service. Upon resumption of service after such 

694 reduction or discontinuance, and if requested by the Contractor, the United States will, if possible, 

695 deliver the quantity of Project Water which would have been delivered hereunder in the absence of 

696 such discontinuance or reduction. 

697 (c) The United States reserves the right to all seepage and return flow water 

698 derived from Water Delivered to the Contractor hereunder which escapes or is discharged beyond the 

699 Contractor's Service Area; Provided, That this shall not be construed as claiming for the United 
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700 States any right to seepage or return flow being put to reasonable and beneficial use pursuant to this 

701 Contract within the Contractor’s Service Area by the Contractor or those claiming by, through, or 

702 under the Contractor. 

703 CONSTRAINTS ON THE AVAILABILITY OF WATER

704 12. (a) In its operation of the Project, the Contracting Officer will use all reasonable 

705 means to guard against a Condition of Shortage in the quantity of water to be made available to the 

706 Contractor pursuant to this Contract. In the event the Contracting Officer determines that a 

707 Condition of Shortage appears probable, the Contracting Officer will notify the Contractor of said 

708 determination as soon as practicable. 

709 (b) If there is a Condition of Shortage because of errors in physical operations of 

710 the Project, drought, other physical causes beyond the control of the Contracting Officer or actions 

711 taken by the Contracting Officer to meet legal obligations then, except as provided in subdivision (a) 

712 of Article 18 of this Contract, no liability shall accrue against the United States or any of its officers, 

713 agents, or employees for any damage, direct or indirect, arising therefrom. 

714 (c) In any Year in which there may occur a Condition of Shortage for any of the 

715 reasons specified in subdivision (b) of this Article, and subject to subdivision (d) of this Article, the 

716 Contracting Officer will first allocate the available Project Water consistent with the Central Valley 

717 Project M&I Water Shortage Policy in its form on the effective date of this Contract for determining 

718 the amount of Project Water available for delivery to the Project Contractors. Subject to the 

719 foregoing allocation, in any year in which there may occur a Condition of Shortage, the Contracting 

720 Officer shall then apportion Project Water among the Contractor and others entitled to Project Water 
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721 from Delta Division Facilities under long-term water service or repayment contracts (or renewals 

722 thereof or binding commitments therefore) in force on February 28, 2005, as follows: 

723 (1) The Contracting Officer shall make an initial and subsequent 

724 determination as necessary of the total quantity of Project Water estimated to be scheduled or actually 

725 scheduled under subdivision (b) of Article 4 of this Contract and under all other long-term water 

726 service or repayment contracts then in force for the delivery of Project Water by the United States 

727 from Delta Division Facilities during the relevant Year, the quantity so determined being hereinafter 

728 referred to as the scheduled total; 

 

729 (2) A determination shall be made of the total quantity of Project Water 

730 that is available for meeting the scheduled total, the quantity so determined being hereinafter referred 

731 to as the available supply; 

732 (3) The total quantity of Project Water estimated to be scheduled or 

733 actually scheduled by the Contractor during the relevant Year, under subdivision (b) of Article 4 

734 hereof, shall be divided by the scheduled total, the quotient thus obtained being hereinafter referred to 

735 as the Contractor’s proportionate share; and 

736 (4) The available supply shall be multiplied by the Contractor’s 

737 proportionate share and the result shall be the quantity of Project Water made available by the United 

738 States to the Contractor for the relevant Year in accordance with the schedule developed by the 

739 Contracting Officer under subdivision (c)(1) of this Article 12, but in no event shall such amount 
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740 exceed the Contract Total. In the event the Contracting Officer subsequently determines that the 

741 Contracting Officer can increase or needs to decrease the available supply for delivery from Delta 

742 Division Facilities to long-term water service and repayment Contractors during the relevant Year, 

743 such additions or reductions to the available supply shall be apportioned consistent with 

744 subparagraphs (1) through (4), inclusive. 

745 (d) By entering into this Contract, the Contractor does not waive any legal rights 

746 or remedies it may have to file or participate in any administrative or judicial proceeding contesting 

747 (i) the sufficiency of the Central Valley Project M&I Water Shortage Policy; (ii) the substance of 

748 such a policy; (iii) the applicability of such a policy; or (iv) the manner in which such policy is 

749 implemented in order to allocate Project Water between municipal and industrial and irrigation 

750 purposes; Provided, That the Contractor has commenced any such judicial challenge or any 

751 administrative procedures necessary to institute any judicial challenge within 6 months of the policy 

752 becoming final. By agreeing to the foregoing, the Contracting Officer does not waive any legal 

753 defenses or remedies that it may have to assert in such a proceeding. Nothing contained herein shall 

754 be interpreted to validate or invalidate the M&I Water Shortage Policy. 

755 UNAVOIDABLE GROUNDWATER PERCOLATION

756 13. To the extent applicable, the Contractor shall not be deemed to have delivered 

757 Irrigation Water to Excess Lands or Ineligible Lands within the meaning of this Contract if such 

758 lands are irrigated with groundwater that reaches the underground strata as an unavoidable result of 

759 the delivery of Irrigation Water by the Contractor to Eligible Lands. 
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760 RULES AND REGULATIONS

761 14. The parties agree that the delivery of Irrigation Water or use of Federal facilities 

762 pursuant to this Contract is subject to Federal Reclamation law, including but not limited to, the 

763 Reclamation Reform Act of 1982 (43 U.S.C.390aa et seq.), as amended and supplemented, and the 

764 rules and regulations promulgated by the Secretary of the Interior under Federal Reclamation law. 

765 WATER AND AIR POLLUTION CONTROL

766 15. The Contractor, in carrying out this Contract, shall comply with all applicable water 

767 and air pollution laws and regulations of the United States and the State of California, and shall 

768 obtain all required permits or licenses from the appropriate Federal, State, or local authorities. 

769 QUALITY OF WATER

770 16. (a) Project facilities used to deliver Project Water to the Contractor pursuant to 

771 this Contract shall be operated and maintained to enable the United States to deliver Project Water to 

772 the Contractor in accordance with the water quality standards specified in subsection 2(b) of the Act 

773 of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of October 27, 1986 (100 Stat. 

774 3050) or other existing Federal laws. The United States is under no obligation to construct or furnish 

775 water treatment facilities to maintain or to improve the quality of Water Delivered to the Contractor 

776 pursuant to this Contract. The United States does not warrant the quality of Water Delivered to the 

777 Contractor pursuant to this Contract. 

778 (b) The O&M of Project facilities shall be performed in such manner as is 

779 practicable to maintain the quality of raw water made available through such facilities at the highest 

780 level reasonably attainable as determined by the Contracting Officer. The Contractor shall be 

781 responsible for compliance with all State and Federal water quality standards applicable to surface 

782 and subsurface agricultural drainage discharges generated through the use of Federal or Contractor 

783 facilities or Project Water provided by the Contractor within the Contractor's Service Area. 
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784 (c) The Contracting Officer shall notify the Contractor in writing when drainage 

785 service becomes available. Thereafter, the Contracting Officer shall provide drainage service to the 

786 Contractor at rates established pursuant to the then-existing ratesetting policy for irrigation water; 

787 Provided, that such ratesetting policy shall be amended, modified, or superceded only through the 

788 process described in subdivision (a) of Article 7 of this Contract. 

789 WATER ACQUIRED BY THE CONTRACTOR

790 OTHER THAN FROM THE UNITED STATES

791 17. (a) Water or water rights now owned or hereafter acquired by the Contractor other 

792 than from the United States and Irrigation Water furnished pursuant to the terms of this Contract may 

793 be simultaneously transported through the same distribution facilities of the Contractor subject to the 

794 following: (i) if the facilities utilized for commingling Irrigation Water and non-Project water were 

795 constructed without funds made available pursuant to Federal Reclamation law, the provisions of 

796 Federal Reclamation law will be applicable only to the Landholders of lands which receive Irrigation 

797 Water; (ii) the eligibility of land to receive Irrigation Water must be established through the 

798 certification requirements as specified in the Acreage Limitation Rules and Regulations (43 CFR Part 

799 426); (iii) the water requirements of Eligible Lands within the Contractor's Service Area can be 

800 established and the quantity of Irrigation Water to be utilized is less than or equal to the quantity 

801 necessary to irrigate such Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation 

802 Water and non-Project water are/were constructed with funds made available pursuant to Federal 

803 Reclamation law, the non-Project water will be subject to the acreage limitation provisions of Federal 

804 Reclamation law, unless the Contractor pays to the United States the incremental fee described in 43 

805 CFR 426.15. In determining the incremental fee, the Contracting Officer will calculate annually the 
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806 cost to the Federal Government, including interest, of storing or delivering non-Project water, which 

807 for purposes of this Contract shall be determined as follows: The quotient shall be the unpaid 

808 distribution system costs divided by the total irrigable acreage within the Contractor’s Service Area. 

809 The incremental fee per acre is the mathematical result of such quotient times the interest rate 

810 determined using Section 202 (3) of the Act of October 12, 1982 (96 Stat. 1263). Such incremental 

811 fee will be charged to each acre of excess or full cost land within the Contractor’s Service Area that 

812 receives non-Project water through Federally financed or constructed facilities. The incremental fee 

813 calculation methodology will continue during the term of this Contract absent the promulgation of a 

814 contrary Reclamation-wide rule, regulation or policy adopted after the Contractor has been afforded 

815 the opportunity to review and comment on the proposed rule, regulation or policy. If such rule, 

816 regulation or policy is adopted it shall supercede this provision. 

817 (b) Water or water rights now owned or hereafter acquired by the Contractor, 

818 other than from the United States may be stored, conveyed and/or diverted through Project facilities, 

819 subject to the completion of appropriate environmental documentation, with the approval of the 

820 Contracting Officer and the execution of any contract determined by the Contracting Officer to be 

821 necessary, consistent with the following provisions: 

822 (1) The Contractor may introduce non-Project water into Project facilities 

823 and deliver said water to lands within the Contractor’s Service Area, including Ineligible Lands, 

824 subject to payment to the United States and/or to any applicable Operating Non-Federal Entity of an 

825 appropriate rate as determined by the applicable Project ratesetting policy, the RRA, and the Project 

826 use power policy, if such Project use power policy is applicable, each as amended, modified or 
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827 superceded from time to time. 

828 (2) Delivery of such non-Project water in and through Project facilities 

829 shall only be allowed to the extent such deliveries do not: (i) interfere with other Project purposes as 

830 determined by the Contracting Officer; (ii) reduce the quantity or quality of water available to other 

831 Project Contractors; (iii) interfere with the delivery of contractual water entitlements to any other 

832 Project Contractors; or (iv) interfere with the physical maintenance of the Project facilities. 

833 (3) Neither the United States nor the Operating Non-Federal Entity(ies) 

834 shall be responsible for control, care or distribution of the non-Project water before it is introduced 

835 into or after it is delivered from the Project facilities. The Contractor hereby releases and agrees to 

836 defend and indemnify the United States and the Operating Non-Federal Entity(ies), and their 

837 respective officers, agents, and employees, from any claim for damage to persons or property, direct 

838 or indirect, resulting from the act(s) of the Contractor, its officers, employees, agents, or assigns, in 

839 (i) extracting or diverting non-Project water from any source, or (ii) diverting such non-Project water 

840 into Project facilities. 

841 (4) Diversion of such non-Project water into Project facilities shall be 

842 consistent with all applicable laws, and if involving groundwater, consistent with any applicable 

843 groundwater management plan for the area from which it was extracted. 

844 (5) After Project purposes are met, as determined by the Contracting 

845 Officer, the United States and Project Contractors entitled to Project Water from Delta Division 

846 Facilities shall share priority to utilize the remaining capacity of the facilities declared to be 

847 available by the Contracting Officer for conveyance and transportation of non-Project water prior to 

Formatted: Indent: First line: 0"

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848 any such remaining capacity being made available to non-Project contractors. Other Project 

849 Contractors shall have a second priority to any remaining capacity of facilities declared to be 

850 available by the Contracting Officer for conveyance and transportation of non-Project water prior to 

851 any such remaining capacity being made available to non-Project contractors. 

852 OPINIONS AND DETERMINATIONS

853 18. (a) Where the terms of this Contract provide for actions to be based upon the 

854 opinion or determination of either party to this Contract, said terms shall not be construed as 

855 permitting such action to be predicated upon arbitrary, capricious, or unreasonable opinions or 

856 determinations. Both parties, notwithstanding any other provisions of this Contract, expressly 

857 reserve the right to seek relief from and appropriate adjustment for any such arbitrary, capricious, or 

858 unreasonable opinion or determination. Each opinion or determination by either party shall be 

859 provided in a timely manner. Nothing in this subdivision (a) of this Article is intended to or shall 

860 affect or alter the standard of judicial review applicable under Federal law to any opinion or 

861 determination implementing a specific provision of Federal law embodied in statute or regulation. 

862 (b) The Contracting Officer shall have the right to make determinations necessary 

863 to administer this Contract that are consistent with the provisions of this Contract, the laws of the 

864 United States and of the State of California, and the rules and regulations promulgated by the 

865 Secretary of the Interior. Such determinations shall be made in consultation with the Contractor to 

866 the extent reasonably practicable. 
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867 COORDINATION AND COOPERATION

868 19. (a) In order to further their mutual goals and objectives, the Contracting Officer 

869 and the Contractor shall communicate, coordinate, and cooperate with each other, and with other 

870 affected Project Contractors, in order to improve the operation and management of the Project. The 

871 communication, coordination, and cooperation regarding operations and management shall include, 

872 but not be limited to, any action which will or may materially affect the quantity or quality of Project 

873 Water supply, the allocation of Project Water supply, and Project financial matters including, but not 

874 limited to, budget issues. The communication, coordination, and cooperation provided for hereunder 

875 shall extend to all provisions of this Contract. Each party shall retain exclusive decision making 

876 authority for all actions, opinions, and determinations to be made by the respective party. 

877 (b) Within 120 days following the effective date of this Contract, the Contractor, 

878 other affected Project Contractors, and the Contracting Officer shall arrange to meet with interested 

879 Project Contractors to develop a mutually agreeable, written Project-wide process, which may be 

880 amended as necessary separate and apart from this Contract. The goal of this process shall be to 

881 provide, to the extent practicable, the means of mutual communication and interaction regarding 

882 significant decisions concerning Project operation and management on a real-time basis. 

883 (c) In light of the factors referred to in subdivision (b) of Article 3 of this 

884 Contract, it is the intent of the Secretary to improve water supply reliability. To carry out this intent: 

885 (1) The Contracting Officer will, at the request of the Contractor, assist in 

886 the development of integrated resource management plans for the Contractor. Further, the 

887 Contracting Officer will, as appropriate, seek authorizations for implementation of partnerships to 
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888 improve water supply, water quality, and reliability. 

889 (2) The Secretary will, as appropriate, pursue program and project 

890 implementation and authorization in coordination with Project Contractors to improve the water 

891 supply, water quality, and reliability of the Project for all Project purposes. 

892 (3) The Secretary will coordinate with Project Contractors and the State of 

893 California to seek improved water resource management. 

894 (4) The Secretary will coordinate actions of agencies within the 

895 Department of the Interior that may impact the availability of water for Project purposes. 

896 (5) The Contracting Officer shall periodically, but not less than annually, 

897 hold division level meetings to discuss Project operations, division level water management 

898 activities, and other issues as appropriate. 

899 (d) Without limiting the contractual obligations of the Contracting Officer under 

900 the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 

901 Contracting Officer’s ability to communicate, coordinate, and cooperate with the Contractor or other 

902 interested stakeholders or to make decisions in a timely fashion as needed to protect health, safety, or 

903 the physical integrity of structures or facilities. 

904 CHARGES FOR DELINQUENT PAYMENTS

905 20. (a) The Contractor shall be subject to interest, administrative and penalty charges 

906 on delinquent installments or payments. When a payment is not received by the due date, the 

907 Contractor shall pay an interest charge for each day the payment is delinquent beyond the due date. 

908 When a payment becomes 60 days delinquent, the Contractor shall pay an administrative charge to 

909 cover additional costs of billing and processing the delinquent payment. When a payment is 

910 delinquent 90 days or more, the Contractor shall pay an additional penalty charge of six percent per 

911 year for each day the payment is delinquent beyond the due date. Further, the Contractor shall pay 

912 any fees incurred for debt collection services associated with a delinquent payment. 
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913 (b) The interest charge rate shall be the greater of the rate prescribed quarterly in 

914 the Federal Register by the Department of the Treasury for application to overdue payments, or the 

915 interest rate of one-half of one percent per month prescribed by Section 6 of the Reclamation Project 

916 Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due date and 

917 remain fixed for the duration of the delinquent period. 

918 (c) When a partial payment on a delinquent account is received, the amount 

919 received shall be applied, first to the penalty, second to the administrative charges, third to the 

920 accrued interest, and finally to the overdue payment. 

921 EQUAL OPPORTUNITY

922 21. During the performance of this Contract, the Contractor agrees as follows: 

923 (a) The Contractor will not discriminate against any employee or applicant for 

924 employment because of race, color, religion, sex, or national origin. The Contractor will take 

925 affirmative action to ensure that applicants are employed, and that employees are treated during 

926 employment, without regard to their race, color, religion, sex, or national origin. Such action shall 

927 include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

928 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

929 compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

930 conspicuous places, available to employees and applicants for employment, notices to be provided by 

931 the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

932 (b) The Contractor will, in all solicitations or advertisements for employees placed 

933 by or on behalf of the Contractor, state that all qualified applicants will receive consideration for 

934 employment without discrimination because of race, color, religion, sex, or national origin. 

935 (c) The Contractor will send to each labor union or representative of workers with 

936 which it has a collective bargaining agreement or other contract or understanding, a notice, to be 

937 provided by the Contracting Officer, advising the said labor union or workers' representative of the 

938 Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and 

939 shall post copies of the notice in conspicuous places available to employees and applicants for 

940 employment. 

941 (d) The Contractor will comply with all provisions of Executive Order 

942 No. 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders of 

943 the Secretary of Labor. 

944 (e) The Contractor will furnish all information and reports required by said 

945 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 
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946 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting Officer 

947 and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, 

948 regulations, and orders. 

949 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

950 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

951 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared ineligible 

952 for further Government contracts in accordance with procedures authorized in said amended 

953 Executive Order, and such other sanctions may be imposed and remedies invoked as provided in said 

954 Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided 

955 by law. 

956 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

957 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

958 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

959 provisions will be binding upon each subcontractor or vendor. The Contractor will take such action 

960 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

961 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That 

962 in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor 

963 or vendor as a result of such direction, the Contractor may request the United States to enter into such 

964 litigation to protect the interests of the United States. 

965 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

966 22. (a) The obligation of the Contractor to pay the United States as provided in this 

967 Contract is a general obligation of the Contractor notwithstanding the manner in which the obligation 

968 may be distributed among the Contractor's water users and notwithstanding the default of individual 

969 water users in their obligations to the Contractor. 

970 (b) The payment of charges becoming due hereunder is a condition precedent to 

971 receiving benefits under this Contract. The United States shall not make water available to the 

972 Contractor through Project facilities during any period in which the Contractor may be in arrears in 

973 the advance payment of water rates due the United States. The Contractor shall not furnish water 

974 made available pursuant to this Contract for lands or parties which are in arrears in the advance 

975 payment of water rates levied or established by the Contractor. 

976 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

977 obligation to require advance payment for water rates which it levies. 

978 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

979 
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980 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 (42 

981 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the Age 

982 Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights laws, as 

983 well as with their respective implementing regulations and guidelines imposed by the U.S. 

984 Department of the Interior and/or Bureau of Reclamation. 

985 (b) These statutes require that no person in the United States shall, on the grounds 

986 of race, color, national origin, handicap, or age, be excluded from participation in, be denied the 

987 benefits of, or be otherwise subjected to discrimination under any program or activity receiving 

988 financial assistance from the Bureau of Reclamation. By executing this Contract, the Contractor 

989 agrees to immediately take any measures necessary to implement this obligation, including 

990 permitting officials of the United States to inspect premises, programs, and documents. 

991 (c) The Contractor makes this agreement in consideration of and for the purpose 

992 of obtaining any and all Federal grants, loans, contracts, property discounts, or other Federal financial 

993 assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, including 

994 installment payments after such date on account of arrangements for Federal financial assistance 

995 which were approved before such date. The Contractor recognizes and agrees that such Federal 

996 assistance will be extended in reliance on the representations and agreements made in this Article, 

997 and that the United States reserves the right to seek judicial enforcement thereof. 

998 PRIVACY ACT COMPLIANCE

999 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) (the 

1000 Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et seq.) in 

1001 maintaining Landholder acreage certification and reporting records, required to be submitted to the 

1002 Contractor for compliance with Sections 206 and 228 of the Reclamation Reform Act of 1982 (96 

1003 Stat. 1266), and pursuant to 43 CFR 426.18. 

1004 (b) With respect to the application and administration of the criminal penalty 

1005 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees responsible 

1006 for maintaining the certification and reporting records referenced in (a) above are considered to be 

1007 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

1008 (c) The Contracting Officer or a designated representative shall provide the 

1009 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau of 

1010 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

1011 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

1012 contained in the Landholder's certification and reporting records. 

1013 (d) The Contracting Officer shall designate a full-time employee of the Bureau of 

1014 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

1015 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 
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1016 authorized to grant requests by individuals for access to their own records. 

1017 (e) The Contractor shall forward promptly to the System Manager each proposed 

1018 denial of access under 43 CFR 2.64; and each request for amendment of records filed under 43 CFR 

1019 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

1020 information and records necessary to prepare an appropriate response to the requester. These 

1021 requirements do not apply to individuals seeking access to their own certification and reporting forms 

1022 filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the Privacy 

1023 Act as a basis for the request. 

1024 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1025 25. In addition to all other payments to be made by the Contractor pursuant to this 

1026 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1027 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

1028 direct cost incurred by the United States for work requested by the Contractor associated with this 

1029 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

1030 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

1031 writing in advance by the Contractor. This Article shall not apply to costs for routine contract 

1032 administration. 

1033 WATER CONSERVATION

1034 26. (a) Prior to the delivery of water provided from or conveyed through Federally 

1035 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

1036 implementing an effective water conservation and efficiency program based on the Contractor's water 

1037 conservation plan that has been determined by the Contracting Officer to meet the conservation and 

1038 efficiency criteria for evaluating water conservation plans established under Federal law. The water 

1039 conservation and efficiency program shall contain definite water conservation objectives, appropriate 
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1040 economically feasible water conservation measures, and time schedules for meeting those objectives. 

1041 Continued Project Water delivery pursuant to this Contract shall be contingent upon the Contractor’s 

1042 continued implementation of such water conservation program. In the event the Contractor's water 

1043 conservation plan or any revised water conservation plan completed pursuant to subdivision (d) of 

1044 this Article 26 have not yet been determined by the Contracting Officer to meet such criteria, due to 

1045 circumstances which the Contracting Officer determines are beyond the control of the Contractor, 

1046 water deliveries shall be made under this Contract so long as the Contractor diligently works with the 

1047 Contracting Officer to obtain such determination at the earliest practicable date, and thereafter the 

1048 Contractor immediately begins implementing its water conservation and efficiency program in 

1049 accordance with the time schedules therein. 

1050 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1051 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

1052 the Best Management Practices identified by the time frames issued by the California Urban Water 

1053 Conservation Council for such M&I Water unless any such practice is determined by the Contracting 

1054 Officer to be inappropriate for the Contractor. 

1055 (c) The Contractor shall submit to the Contracting Officer a report on the status of 

1056 its implementation of the water conservation plan on the reporting dates specified in the then existing 

1057 conservation and efficiency criteria established under Federal law. 

1058 (d) At five year intervals, the Contractor shall revise its water conservation plan to 

1059 reflect the then current conservation and efficiency criteria for evaluating water conservation plans 

1060 established under Federal law and submit such revised water management plan to the Contracting 
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1061 Officer for review and evaluation. The Contracting Officer will then determine if the water 

1062 conservation plan meets Reclamation’s then current conservation and efficiency criteria for 

1063 evaluating water conservation plans established under Federal law. 

1064 (e) If the Contractor is engaged in direct groundwater recharge, such activity shall 

1065 be described in the Contractor’s water conservation plan. 

1066 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1067 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

1068 Contract shall not be applicable to or affect non-project water or water rights now owned or hereafter 

1069 acquired by the Contractor or any user of such water within the Contractor's Service Area. Any such 

1070 water shall not be considered Project Water under this Contract. In addition, this Contract shall not 

1071 be construed as limiting or curtailing any rights which the Contractor or any water user within the 

1072 Contractor's Service Area acquires or has available under any other contract pursuant to Federal 

1073 Reclamation law. 

1074 OPERATION AND MAINTENANCE BY SAN LUIS & DELTA-MENDOTA WATER 

1075 AUTHORITY

1076 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

1077 responsibility for funding a portion of the costs of such O&M, have been transferred to the San Luis 

1078 & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement (8-07-

1079 20-X0354) between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

1080 Water Authority. That separate agreement shall not interfere with or affect the rights or obligations 

1081 of the Contractor or the United States hereunder. 

1082 (b) The Contracting Officer has previously notified the Contractor in writing that 
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1083 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

1084 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

1085 Contractor shall pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1086 Authority, or to any successor approved by the Contracting Officer under the terms and conditions of 

1087 the separate agreement between the United States and Operating Non-Federal Entity San Luis & 

1088 Delta-Mendota Water Authority, described in subdivision (a) of this Article, all rates, charges, or 

1089 assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

1090 Entity San Luis & Delta-Mendota Water Authority, or such successor determines, sets, or establishes 

1091 for the O&M of the portion of the Project facilities operated and maintained by Operating Non1092 Federal Entity San Luis & Delta-Mendota Water Authority, or such successor. Such direct payments 

1093 to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

1094 not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

1095 of the Project Rates, Charges, and Tiered Pricing Components except to the extent the Operating 

1096 Non-Federal Entity collects payments on behalf of the United States in accordance with subdivision 

1097 (a) of this Article. 

1098 (c) For so long as the O&M of any portion of the Project facilities serving the 

1099 Contractor is performed by Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1100 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 

1101 Rates for Water Delivered under this Contract representing the cost associated with the activity being 

1102 performed by Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or its 

1103 successor. 
Contract No. 14-06-200-7773A-LTR1 

 

52

1104 (d) In the event the O&M of the Project facilities operated and maintained by 

1105 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

1106 United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

1107 in writing, and present to the Contractor a revised Exhibit “B” which shall include the portion of the 

1108 Rates to be paid by the Contractor for Project Water under this Contract representing the O&M costs 

1109 of the portion of such Project facilities which have been re-assumed. The Contractor shall, thereafter, 

1110 in the absence of written notification from the Contracting Officer to the contrary, pay the Rates, 

1111 Charges, and the Tiered Pricing Component specified in the revised Exhibit “B” directly to the 

1112 United States in compliance with Article 7 of this Contract. 

1113 OPERATION AND MAINTENANCE BY CALIFORNIA DEPARTMENT OF WATER 

1114 RESOURCES

1115 

1116 28.1 (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

1117 responsibility for funding a portion of the costs of such O&M, have been transferred to the California 

1118 Department of Water Resources, an Operating Non-Federal Entity by a separate agreement (14-06-

1119 200-9755) between the United States and Operating Non-Federal Entity California Department of 

1120 Water Resources. This separate agreement shall not interfere with or affect the rights or obligations 

1121 of the Contractor or the United States hereunder. 

1122 (b) The Contracting Officer has previously notified the Contractor in writing that 

1123 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

1124 Operating Non-Federal Entity California Department of Water Resources, and the Contractor shall 

1125 pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or to any 

1126 successor approved by the Contracting Officer under the terms and conditions of the separate 
Contract No. 14-06-200-7773A-LTR1 

 

53

1127 agreement between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

1128 Water Authority, described in subdivision (a) of Article 28 of this Contract, all rates, charges, or 

1129 assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

1130 Entity California Department of Water Resources, or such successor determines, sets, or establishes 

1131 for the O&M of the portion of the Project facilities operated and maintained by Operating Non1132 Federal Entity California Department of Water Resources, or such successor. Such direct payments 

1133 to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

1134 not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

1135 of the Project Rates, Charges, and Tiered Pricing Components except to the extent the Operating 

1136 Non-Federal Entity collects payments on behalf of the United States in accordance with the separate 

1137 agreement identified in subdivision (a) of Article 28 of this Contract. 

1138 (c) For so long as the O&M of any portion of the Project facilities serving the 

1139 Contractor is performed by Operating Non-Federal Entity California Department of Water Resources, 

1140 or any successor thereto, the Contracting Officer shall adjust those components of the Rates for 

1141 Water Delivered under this Contract representing the cost associated with the activity being 

1142 performed by Operating Non-Federal Entity California Department of Water Resources, or its 

1143 successor. 

1144 (d) In the event the O&M of the Project facilities operated and maintained by 

1145 Operating Non-Federal Entity California Department of Water Resources is re-assumed by the 

1146 United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 
Contract No. 14-06-200-7773A-LTR1 

 

54

1147 in writing, and present to the Contractor a revised Exhibit “B” which shall include the portion of the 

1148 Rates, Charges, and Tiered Pricing Component(s) to be paid by the Contractor for Project Water 

1149 under this Contract representing the O&M costs of the portion of such Project facilities which have 

1150 been re-assumed. The Contractor shall, thereafter, in the absence of written notification from the 

1151 Contracting Officer to the contrary, pay the Rates, Charges, and Tiered Pricing Component(s) 

1152 specified in the revised Exhibit “B” directly to the United States in compliance with Article 7 of this 

1153 Contract. 

1154 PUMPING PLANTS, POWER FOR PUMPING PLANTS, AND TRANSFER

1155 OF OPERATION AND MAINTENANCE TO THE CONTRACTOR

 

1156 28.2. (a) The United States shall furnish and install pumping plants and furnish the 

1157 amount of Project power the Contracting Officer determines is necessary to deliver Project Water to 

1158 the Contractor from the Delta-Mendota and San Luis Canals at the point(s) of delivery identified 

1159 pursuant to subdivision (a) of Article 5 at heads and elevations sufficient to irrigate by gravity the 

1160 areas within the Contractor’s Service Area below 700 feet mean sea level elevation. 

1161 (b) With advance approval of the Contracting Officer, the Contractor may, at its 

1162 own expense, furnish and install pumping facilities, and related electrical equipment, to enable it to 

1163 divert and deliver Project Water from the Delta-Mendota and San Luis Canals before the United 

1164 States furnishes and installs all the pumping plants referred to in subdivision (a) of this Article. The 

1165 United States shall furnish the amount of Project power needed to operate such pumping facilities; 

1166 Provided, That the Contractor maintains an agreement with an entity to convey such power to such 

1167 facilities, and the Contractor agrees to pay any and all charges assessed by that entity for such 

1168 service. 
Contract No. 14-06-200-7773A-LTR1 

 

55

1169 (c) The furnishing of power by the United States shall be in conformance with 

1170 operating criteria, rules, and regulations, including the project use power policy, established by the 

1171 Contracting Officer; Provided, That any such operating criteria, rules, and regulations, including the 

1172 project use power policy, established by the Contracting Officer shall not excuse the United States 

1173 from its obligation under subdivision (a) of this Article. Such operating criteria, rules, and 

1174 regulations shall be developed in cooperation with the Contractor and shall be based on acceptable 

1175 irrigation management practices and the power generation capacity available to the United States for 

1176 the furnishing of Project water to the Contractor. 

1177 (d) The Contractor hereby agrees to operate and maintain, at its own expense, all 

1178 of the pumping facilities described in subdivisions (a) and (b) of this Article in such a manner that 

1179 they remain in good and efficient condition; Provided, That the United States shall finance the costs 

1180 of all major replacements that the Contracting Officer determines are needed. 

1181 (e) The Contracting Officer or his representative shall at all times have access to 

1182 and may inspect and investigate the pumping facilities for the purpose of ascertaining if they are 

1183 being kept in safe and proper operating condition. 

1184 (f) No change in any of the pumping facilities, which in the opinion of the 

1185 Contracting Officer is substantial, shall be made by the Contractor without first obtaining the written 

1186 consent of the Contracting Officer. The Contractor promptly shall make any and all repairs and 

1187 replacements to the pumping facilities which in the opinion of the Contracting Officer are necessary. 

1188 In the event the Contractor neglects or fails to make such repairs and replacements or in the event of 

1189 operation by the United States of the pumping facilities pursuant to subdivision (i) of this Article, the 
Contract No. 14-06-200-7773A-LTR1 

 

56

1190 United States may cause the repairs and replacements to be made and the cost thereof, as determined 

1191 by the Contracting Officer, shall be paid by the Contractor to the United States upon notice of the 

1192 payment due but not later than April 1 of the year following that during which such work was 

1193 completed. 

1194 (g) In the event the Contracting Officer determines that the Contractor has not 

1195 properly cared for, operated, and maintained said pumping facilities or has failed to comply with any 

1196 of the provisions of this Article, then at the election of the Contracting Officer the United States may 

1197 take over from the Contractor the care and O&M of the pumping facilities by giving written notice to 

1198 the Contractor of such election and the effective date thereof. Thereafter during the period of 

1199 operation by the United States the Contractor shall pay to the United States in advance of the use of 

1200 such pumping facilities the Contractor’s share of the cost of O&M thereof and replacements 

1201 therefore, as fixed in notices from the Contracting Officer. In the event such advances are inadequate 

1202 to properly care for, operate, and maintain the pumping facilities to the end of any year, the 

1203 Contracting Officer may give written notice of a supplemental O&M charge and the Contractor shall 

1204 pay such amount on or before the date specified in said notice. Any amount of such advances 

1205 remaining unexpended or unobligated, at the option of the Contractor, either shall be refunded or 

1206 credited upon amounts to become due to the United States from the Contractor under the provisions 

1207 of this Contract in subsequent years. The pumping facilities so taken back by the United States may 

1208 be returned to the Contractor upon the furnishing to the Contractor of a written 90-day notice of 

1209 intention to retransfer. 

1210 (h) The Contractor shall hold the United States, its officers and employees 
Contract No. 14-06-200-7773A-LTR1 

 

57

1211 harmless from every and all claim for damages to persons or property arising out of or connected 

1212 with the Contractor’s O&M of the pumping facilities referred to in this Article; Provided, That 

1213 nothing contained herein shall be construed as an assumption of liability by the Contractor to parties 

1214 other than the United States with respect to such matters. 

1215 (i) During the time the pumping facilities are operated and maintained by the 

1216 Contractor, in addition to all other payments to be made by the Contractor under this Contract, the 

1217 Contractor shall pay to the United States pursuant to Article 25 hereof, costs incurred by the United 

1218 States for work associated with the pumping facilities under this Contract normally charged by the 

1219 United States to water users and properly and equitably chargeable to the Contractor. 

1220 (j) The Contracting Officer may make review of any part or all of the pumping 

1221 facilities being operated by the Contractor pursuant to this Article to assist the Contractor in 

1222 assessing the condition of facilities and the adequacy of the maintenance program(s). The 

1223 Contracting Officer shall prepare reports based on the examinations, inspections or audits, and 

1224 furnish copies of such reports and any recommendations to the Contractor. The Contractor shall 

1225 reimburse the actual cost 

1226 incurred by the United States in making O&M examinations, inspections, and audits, and preparing 

1227 associated reports and recommendations. 

1228 (k) If deemed necessary by the Contracting Officer or requested by the Contractor, 

1229 special inspections of the pumping facilities being operated by the Contractor and of the Contractor’s 

1230 books and records may be made to ascertain the extent of any O&M deficiencies, to determine the 
Contract No. 14-06-200-7773A-LTR1 

 

58

1231 remedial measures required for their correction, and to assist the Contractor in solving specific 

1232 problems. Any special inspection or audit shall, except in a case of emergency, be made after written 

1233 notice to the Contractor and the actual cost thereof shall be paid by the Contractor to the United 

1234 States.

1235 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1236 29. The expenditure or advance of any money or the performance of any obligation of the 

1237 United States under this Contract shall be contingent upon appropriation or allotment of funds. 

1238 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

1239 under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

1240 or allotted. 

1241 BOOKS, RECORDS, AND REPORTS

1242 30. (a) The Contractor shall establish and maintain accounts and other books and 

1243 records pertaining to administration of the terms and conditions of this Contract, including: the 

1244 Contractor's financial transactions, water supply data, and Project land and right-of-way agreements; 

1245 the water users' land-use (crop census), land ownership, land-leasing and water use data; and other 

1246 matters that the Contracting Officer may require. Reports thereon shall be furnished to the 

1247 Contracting Officer in such form and on such date or dates as the Contracting Officer may require. 

1248 Subject to applicable Federal laws and regulations, each party to this Contract shall have the right 

1249 during office hours to examine and make copies of the other party's books and records relating to 

1250 matters covered by this Contract. 

1251 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

1252 records, or other information shall be requested from the Contractor by the Contracting Officer unless 

1253 such books, records, or information are reasonably related to the administration or performance of 

1254 this Contract. Any such request shall allow the Contractor a reasonable period of time within which 

1255 to provide the requested books, records, or information. 

1256 (c) At such time as the Contractor provides information to the Contracting Officer 

1257 pursuant to subdivision (a) of this Article, a copy of such information shall be provided to the 

1258 Operating Non-Federal Entity. 
Contract No. 14-06-200-7773A-LTR1 

 

59

1259 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1260 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1261 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1262 therein shall be valid until approved in writing by the Contracting Officer. 

1263 (b) The assignment of any right or interest in this Contract by either party shall not 

1264 interfere with the rights or obligations of the other party to this Contract absent the written 

1265 concurrence of said other party. 

1266 (c) The Contracting Officer shall not unreasonably condition or withhold approval 

1267 of any proposed assignment. 

1268 SEVERABILITY

1269 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1270 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1271 association or other form of organization whose primary function is to represent parties to Project 

1272 contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1273 enforceability of a provision included in this Contract and said person, entity, association, or 

1274 organization obtains a final court decision holding that such provision is legally invalid or 

1275 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

1276 parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

1277 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

1278 within three months thereafter promptly agree on the appropriate revision(s). The time periods 

1279 specified above may be extended by mutual agreement of the parties. Pending the completion of the 

1280 actions designated above, to the extent it can do so without violating any applicable provisions of 
Contract No. 14-06-200-7773A-LTR1 

 

60

1281 law, the United States shall continue to make the quantities of Project Water specified in this 

1282 Contract available to the Contractor pursuant to the provisions of this Contract which were not found 

1283 to be legally invalid or unenforceable in the final court decision. 

1284 RESOLUTION OF DISPUTES

1285 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

1286 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

1287 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

1288 any matter to the Department of Justice, the party shall provide to the other party 30 days’ written 

1289 notice of the intent to take such action; Provided, That such notice shall not be required where a 

1290 delay in commencing an action would prejudice the interests of the party that intends to file suit. 

1291 During the 30 day notice period, the Contractor and the Contracting Officer shall meet and confer in 

1292 an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

1293 waive or abridge any right or remedy that the Contractor or the United States may have. 

OFFICIALS NOT TO BENEFIT

1294 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1295 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1296 manner as other water users or landowners. 

1297 CHANGES IN CONTRACTOR’S SERVICE AREA

1298 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

1299 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

1300 except upon the Contracting Officer's written consent. 

1301 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1302 Officer will notify the Contractor of any additional information required by the Contracting Officer 
Contract No. 14-06-200-7773A-LTR1 

 

61

1303 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1304 timely completion of the process. Such process will analyze whether the proposed change is likely 

1305 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of 

1306 the Contractor to pay for Project Water furnished under this Contract or to pay for any Federally1307 constructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

1308 Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply with 

1309 the NEPA and the ESA. The Contractor will be responsible for all costs incurred by the Contracting 

1310 Officer in this process, and such costs will be paid in accordance with Article 25 of this Contract. 

FEDERAL LAWS

1311 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1312 validity or application in connection with the performance of the terms and conditions of this 

1313 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

1314 terms and conditions of this Contract unless and until relief from application of such Federal law or 

1315 regulation to the implementing provision of the Contract is granted by a court of competent 

1316 jurisdiction. 

1317 NOTICES

1318 37. Any notice, demand, or request authorized or required by this Contract shall be 

1319 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 

1320 to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, CA 93721, and on 

1321 behalf of the United States, when mailed, postage prepaid, or delivered to the Board of Directors of 

the San Luis Water District, 1015 6th 1322 Street, Los Banos, California 93635. The designation of the 

1323 addressee or the address may be changed by notice given in the same manner as provided in this 

1324 Article for other notices. 

1325 CONFIRMATION OF CONTRACT

1326 38. The Contractor, after the execution of this Contract, shall promptly seek to secure a 

1327 decree of a court of competent jurisdiction of the State of California, confirming the execution of this 

1328 Contract. The Contractor shall furnish the United States a certified copy of the final decree, the 

1329 validation proceedings, and all pertinent supporting records of the court approving and confirming 

1330 this Contract, and decreeing and adjudging it to be lawful, valid, and binding on the Contractor. 
Contract No. 14-06-200-7773A-LTR1 

 

62

1331 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

1332 year first above written. 

1333 THE UNITED STATES OF AMERICA 

1334 By: _________________________________________ 

1335 Regional Director, Mid-Pacific Region 

1336 Bureau of Reclamation 

1337 (SEAL) 

1338 SAN LUIS WATER DISTRICT 

1339 By: _________________________________________ 

1340 President of the Board of Directors 

1341 Attest: 

1342 By: _________________________________ 

1343 Secretary of the Board of Directors 

1344 (H:\pub 440\LTRC\Final Draft LTRC’s – Fresno, Tracy\10-22-04 San Luis WD Final Draft LTRC 

1345 with exhibits.doc) 
!

SALT SLOUGH

LOS BAN O S CREEK

PANOCHE C REEK

1

·|}þ52

1

·|}þ65

·|}þ33

·|}þ33

§ ̈¦5

SAN LU IS RES

LITTLE PA NOC HE CREEK

SAN LUIS RESERVOIR

O`NEILL FOREBAY

LOS BANOS RESERVOIR

MUD SLOUGH

LITTLE PANOCHE RESERVOIR

BIG WATER LAKE

BIG BUTTONWILLOW LAKE

UPPER RUTH LAKE

OLSON POND

LOWER RUTH LAKE

LOS BANOS CREEK

LITTLE BUTTONWILLOW LAKE

MMEERRCCEEDD CCOO

FFRREESSNNOO CCOO

SSAANN BBEENNIITTOO CCOO

T11S R8E

T12S R8E

T10S R8E

T11S R9E

T10S R9E

T13S R8E

T9S R8E

T14S R8E T14S R9E T14S R11E

T9S R9E

T12S R11E

T13S R11E

T11S R11E

T14S R10E

T11S R12E

T13S R9E

T10S R11E

T12S R12E

T11S R10E T11S R13E

T13S R10E

T13S R13E

T12S R13E

T13S R12E

T10S R10E T10S R12E

T14S R13E

T10S R13E

T14S R12E

T12S R10E

T9S R10E T9S R11E T9S R12E

T12S R9E

T9S R13E

T15S R13E T15S R8E T15S R9E T15S R12E T15S R10E T15S R11E

LOS BANOS

MAIN C ANAL

O UTSIDE CANAL

SAN LUIS DRAIN DELTA-MENDOTA CANAL

CA LIFORNIA AQUEDUCT-SAN LUIS

ARROYO CANAL

SAN LUIS CANAL

SANTA FE CANAL

SAN LUIS WASTEWAY

San Luis Water District

" 0 2.5 5

Miles
Contract No. 14-06-200-7773A-LTR1 

 

EXHIBIT B

SAN LUIS WATER DISTRICT

Water Rates and Charges 2004 Rates Per Acre-Foot

 Irrigation Water Irrigation Water M&I Water

COST-OF-SERVICE (COS) RATES: SLC DMC

Capital Rates: $19.80 $10.50 ($10.97) 

 

O&M Rates: 

 Water Marketing $7.59 $7.59 $5.01 

 Storage $5.83 $5.83 $6.38 

 Conveyance * * 

 Direct Pumping (Project Use Energy) $2.51 

 Tracy Pumping * * 

 San Luis Drain 

 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing 

TOTAL COST-OF-SERVICE RATES (COS): $35.73 $23.92 $15.00 

M&I FULL-COST RATE: ($6.47) 

FULL-COST RATES: 

Section 202(3) Rate is applicable to a Qualified Recipient or 

to a Limited Recipient receiving irrigation water on or before 

October 1, 1981. $53.54 $35.56 

205 FULL-COST RATES: 

Section 205(a)(3) Rate is applicable to a Qualified Recipient 

or to a Limited Recipient that did not receive irrigation water 

on or before October 1, 1981. $63.99 $42.63 

 

Tiered Pricing Component >80% <=90% of Contract 

 Total [Full Cost Rate - COS Rate /2]: 

 

Tiered Pricing Component >90% of Contract 

 Total [Full Cost Rate - COS Rate]: 

 

SURCHARGES UNDER P.L. 102-575 

TO RESTORATION FUND** $7.82 $7.82 $15.64 

* Conveyance and Conveyance Pumping Operation and maintenance costs were removed 

 for ratesetting purposes and are to be billed directly to the water authorities. 

** The surcharges are payments in addition to the water rates and were determined pursuant 

 to Title XXXIV of Public Law 102-575. Restoration fund surcharges under P.L. 102-575 

 are on a fiscal year basis (10/1-9/30).