M&I Only 

SCC Draft 10/22-2004 

SCC Draft 09/30-2004 

SCC Draft 08/19-2004 

SCC Draft 01/05-2004 

R. O. Draft 09/23-2003 CVP M&I Form of Contract 

R. O. Draft 08/19-2004 San Luis Unit Form of Contract 

Contract No. 

14-06-200-8033A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND STATE OF CALIFORNIA PROVIDING FOR PROJECT WATER SERVICE

 TO THE MENDOTA WATERFOWL MANAGEMENT AREA HEADQUARTERS

FROM SAN LUIS UNIT AND DELTA DIVISION

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals ............................................................................................2-5 

 1 Definitions ...........................................................................................................5-9 

 2 Term of Contract..............................................................................................10-11 

 3 Water to be Made Available and Delivered to the Contractor ........................11-15 

 4 Time for Delivery of Water .............................................................................15-16 

 5 Point of Diversion and Responsibility for Distribution of Water....................17-18 

 6 Measurement of Water Within the Contractor’s Service Area........................19-20 

 7 Rates and Method of Payment for Water.........................................................21-26 

 8 Non-Interest Bearing Operation and Maintenance Deficits ................................. 26 

 9 Sales, Transfers, or Exchanges of Water .........................................................26-28 

 10 Application of Payments and Adjustments......................................................28-29 

 11 Temporary Reductions--Return Flows ............................................................29-30 

 12 Constraints on the Availability of Water .........................................................30-31 

 13 Unavoidable Groundwater Percolation................................................................. 31 

 14 Rules and Regulations .......................................................................................... 32 

 15 Water and Air Pollution Control........................................................................... 32 

 16 Quality of Water ................................................................................................... 32 

 17 Water Acquired by the Contractor Other Than From the United States .........33-34 

 18 Opinions and Determinations ............................................................................... 35 

 19 Coordination and Cooperation.........................................................................35-37 

Contract No. 14-06-200-8033A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 20 Charges for Delinquent Payments ...................................................................37-38 

 21 Equal Opportunity............................................................................................38-39 

 22 General Obligation--Benefits Conditioned Upon Payment.............................39-40 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 40 

 24 Privacy Act Compliance ....................................................................................... 40 

 25 Contractor to Pay Certain Miscellaneous Costs ..............................................40-41 

 26 Water Conservation .........................................................................................41-42 

 27 Existing or Acquired Water or Water Rights...................................................42-43 

 28 Operation and Maintenance by San Luis & Delta-Mendota Water Authority 43-45 

 28.1 Operation and Maintenance by California Department of Water Resources ..45-47 

 28.2 Operation and Maintenance by Westlands Water District ..............................47-49 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 49 

 30 Books, Records, and Reports................................................................................ 49 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 50 

 32 Severability ......................................................................................................50-51 

 33 Resolution of Disputes.......................................................................................... 51 

 34 Officials Not to Benefit......................................................................................... 51 

 35 Changes in Contractor’s Service Area.............................................................51-52 

 36 Federal Laws......................................................................................................... 52 

 37 Notices .................................................................................................................. 52

 38 Confirmation of Contract...................................................................................... 53 

 Signature Page ...................................................................................................... 53 

 Exhibit A - Omitted 

Exhibit B - Rates and Charges

SCC Draft 10/22-2004 

SCC Draft 09/30-2004 

SCC Draft 08/19-2004 

SCC Draft 01/05-2004 

R. O. Draft 09/23-2003 CVP M&I Form of Contract 

R. O. Draft 08/19-2004 San Luis Unit Form of Contract 

Contract No. 

14-06-200-8033A-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 STATE OF CALIFORNIA PROVIDING FOR PROJECT WATER SERVICE

7 TO THE MENDOTA WATERFOWL MANAGEMENT AREA HEADQUARTERS

8 FROM SAN LUIS UNIT AND DELTA DIVISION

9 THIS CONTRACT, made this _____ day of ____________________, 2005, in 

10 pursuance generally of the Act of June 17, 1902 (32 Stat. 388), and acts amendatory or 

11 supplementary thereto, including, but not limited to, the Acts of August 26, 1937 (50 Stat. 844), 

12 as amended and supplemented, August 4, 1939 (53 Stat. 1187), as amended and supplemented, 

13 June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 (100 Stat. 3050), 

14 as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all collectively 

15 hereinafter referred to as Federal Reclamation law, between THE UNITED STATES OF 

16 AMERICA, hereinafter referred to as the United States, and the State of California, represented 

17 by the California Department of Fish and Game, hereinafter referred to as the Contractor, a 

18 public agency of the State of California, duly organized, existing, and acting pursuant to the laws 

19 thereof, with its principal place of business in Sacramento, California; 

20 WITNESSETH, That: 

21 EXPLANATORY RECITALS
Contract No. 14-06-200-8033A-LTR1 

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

23 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 

27 the San Joaquin River and their tributaries; and 

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

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

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

31 this Contract; and 

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

33 pursuant to California law for operation of the Project; and 

 [4th 34 ] WHEREAS, the Contractor and the United States entered into Contract No. 14-

35 06-200-8033A, which established terms for the delivery to the Contractor of Project Water from 

36 January 1, 1976 through December 31, 2008, hereinafter referred to as the Existing Contract; and 

 [5th 37 ] WHEREAS, the United States and the Contractor have pursuant to Subsection 

38 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into a 

39 binding agreement identified as Binding Agreement No. 14-06-200-8033A-BA, which sets out 

40 the terms pursuant to which the Contractor agreed to renew the Existing Contract before the 

41 expiration date after completion of the Programmatic Environmental Impact Statement (PEIS) 

42 and other appropriate environmental documentation and negotiation of a renewal contract; and 
Contract No. 14-06-200-8033A-LTR1 

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43 which also sets out the consequences of a subsequent decision not to renew: and 

[6th 44 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal the 

45 Existing Contract following completion of appropriate environmental documentation, including 

46 a PEIS pursuant to the National Environmental Policy Act (NEPA) analyzing the direct and 

47 indirect impacts and benefits of implementing the CVPIA and the potential renewal of all 

48 existing contracts for Project Water; and 

[7th 49 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

[8th 51 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

53 of the State of California, for water service from the Central Valley Project; and 

[9th 54 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

55 of its obligations under the Existing Contract; and 

[10th 56 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

57 Contracting Officer that the Contractor has utilized the Project Water supplies available to it for 

58 reasonable and beneficial use and/or has demonstrated projected future demand for water use 

59 such that the Contractor has the capability and expects to utilize fully for reasonable and 

60 beneficial use the quantity of Project Water to be made available to it pursuant to this Contract; 

61 and 

[11th 62 ] WHEREAS, water obtained from the Central Valley Project has been relied upon 
Contract No. 14-06-200-8033A-LTR1 

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63 by urban areas within California for more than fifty (50) years, and is considered by the 

64 Contractor as an essential portion of its water supply; and 

[12th 65 ] WHEREAS, the economies of regions within the Central Valley Project, 

66 including the Contractor=s, depend upon the continued availability of water, including water 

67 service from the Central Valley Project; and 

[13th 68 ] WHEREAS, in the CALFED Programmatic Record of Decision, dated August 28, 

69 2000, the United States and the State of California adopted a general target of continuously 

70 improving Delta water quality for all uses. The CALFED Agencies= target for providing safe, 

71 reliable, and affordable drinking water in a cost-effective way, is to achieve either: (a) average 

72 concentrations at Clinton Forebay and other southern and central Delta drinking water intakes of 

73 50 ug/L bromide and 3.0 mg/L total organic carbon, or (b) an equivalent level of public health 

74 protection using a cost-effective combination of alternative source waters, source control and 

75 treatment technologies; and 

76 [14th] WHEREAS, the parties intend by this Contract to develop a more cooperative 

77 relationship in order to achieve their mutual goals; and 

78 [14.1] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

80 repayment of the Project as required by law; to guard reasonably against Project Water 

81 shortages; to achieve a reasonable balance among competing demands for use of Project Water; 

82 and to 
Contract No. 14-06-200-8033A-LTR1 

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83 comply with all applicable environmental statutes, all consistent with the legal obligations of the 

84 United States relative to the Project; and 

[15th 85 ] WHEREAS, the Contractor has utilized or may utilize transfers, contract 

86 assignments, rescheduling and conveyance of Project Water and non-Project water under this 

87 Contract as tools to minimize the impacts of Conditions of Shortage and to maximize the 

88 beneficial use of water; and 

89 [15.1] WHEREAS, the parties desire and intend that this Contract not provide a 

90 disincentive to the Contractor in continuing to carry out the beneficial activities set out in the 

91 Explanatory Recital immediately above; and 

[16th 92 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

96 DEFINITIONS

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

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

99 (a) ACalendar Year@ shall mean the period January 1 through December 31, 

100 both dates inclusive; 

101 (b) ACharges@ shall mean the payments required by Federal Reclamation law 

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

103 annually by the Contracting Officer pursuant to this Contract; 
Contract No. 14-06-200-8033A-LTR1 

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104 (c) ACondition of Shortage@ shall mean a condition respecting the Project 

105 during any Year such that the Contracting Officer is unable to deliver sufficient water to meet 

106 the Contract Total; 

107 (d) AContracting Officer@ shall mean the Secretary of the Interior=s duly 

108 authorized representative acting pursuant to this Contract or applicable Federal Reclamation law 

109 or regulation; 

110 (e) AContract Total@ shall mean the maximum amount of water to which the 

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

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

113 permitted to provide Project Water under this Contract which is referred to as the headquarters of 

114 the Mendota Wildlife Area. The headquarters consists of five houses, a conference hall, and a 

115 workshop, all of which are located at 4333 South Santa Fe Grade, Mendota, California, 

116 approximately one acre of land, which may be modified from time to time in accordance with 

117 Article 35 of this Contract without amendment of this Contract; 

118 (g) ACVPIA@ shall mean the Central Valley Project Improvement Act, Title 

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

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

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

122 the Tracy Pumping Plant, the O’Neill Forebay, the O’Neill Pumping/Generating Plant, and the 

123 San Luis Reservoir, used to divert, store and convey water to those Project Contractors entitled 

124 to receive water conveyed through the Delta-Mendota Canal; 
Contract No. 14-06-200-8033A-LTR1 

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125 (h-i) Omitted; 

126 (j) "Full Cost Rate" shall mean an annual rate, as determined by the 

127 Contracting Officer that shall amortize the expenditures for construction properly allocable to the 

128 Project Irrigation or M&I functions, as appropriate, of facilities in service including all operation 

129 and maintenance deficits funded, less payments, over such periods as may be required under 

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

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

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

133 and shall be calculated in accordance with subsections 202(3)(B) and (3)(C) of the RRA. The 

134 Full-Cost Rate includes actual operation, maintenance, and replacement costs consistent with 

135 Section 426.2 of the Rules and Regulations for the RRA; 

136 (k-l) Omitted; 

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

138 is used primarily in the production of agricultural crops or livestock, including domestic use 

139 incidental thereto, and watering of livestock; 

140 (n) Omitted; 

141 (o) “Municipal and Industrial (M&I) Water” shall mean Project Water, other 

142 than Irrigation Water, made available to the Contractor. M&I Water shall include water used for 

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

144 which are kept for personal enjoyment or water delivered to landholdings operated in units of 

145 less than five acres unless the Contractor establishes to the satisfaction of the Contracting Officer 
Contract No. 14-06-200-8033A-LTR1 

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146 that the use of water delivered to any such landholding is a use described in subdivision (m) of 

147 this Article; 

148 (p) AM&I Full Cost Water Rate@ shall mean the Full Cost Rate applicable to 

149 the delivery of M&I Water;

150 (q) AOperation and Maintenance@ or AO&M" shall mean normal and 

151 reasonable care, control, operation, repair, replacement (other than Capital replacement), and 

152 maintenance of Project facilities; 

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

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

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

156 Contract was entered into, the Operating Non-Federal Entity(ies) was (were) the San Luis & 

157 Delta-Mendota Water Authority and, with respect to the San Luis Unit facilities, the California 

158 Department of Water Resources, and Westlands Water District; 

159 (s) AProject@ shall mean the Central Valley Project owned by the United 

160 States and managed by the Department of the Interior, Bureau of Reclamation; 

161 (t) AProject Contractors@ shall mean all parties who have water service 

162 contracts for Project Water from the Project with the United States pursuant to Federal 

163 Reclamation law; 

164 (u) AProject Water@ shall mean all water that is developed, diverted, stored, or 

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

166 accordance with the terms and conditions of water rights acquired pursuant to California law; 
Contract No. 14-06-200-8033A-LTR1 

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167 (v) ARates@ shall mean the payments determined annually by the Contracting 

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

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

170 (w) ARecent Historic Average@ shall mean the most recent five year average of 

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

172 preceding contract(s); 

173 (x) ASecretary@ shall mean the Secretary of the Interior, a duly appointed 

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

175 through any agency of the Department of the Interior; 

176 (y) ATiered Pricing Component@ shall be the incremental amount to be paid 

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

178 (z) AWater Delivered@ or ADelivered Water@ shall mean Project Water diverted 

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

180 (aa) AWater Made Available@ shall mean the estimated amount of Project 

181 Water that can be delivered to the Contractor for the upcoming Year as declared by the 

182 Contracting Officer, pursuant to subdivision (a) of Article 4 of this Contract; 

183 (bb) AWater Scheduled@ shall mean Project Water made available to the 

184 Contractor for which times and quantities for delivery have been established by the Contractor 

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

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

187 Calendar Year through the last day of February of the following Calendar Year. 
Contract No. 14-06-200-8033A-LTR1 

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188 TERM OF CONTRACT

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

190 2045. This Contract, when effective, supersedes the Existing Contract. In the event the 

191 Contractor wishes to renew the Contract beyond February 28, 2045, the Contractor shall submit 

192 a request for renewal in writing to the Contracting Officer no later than two years prior to the 

193 date this Contract expires. 

194 (b) Omitted. 

195 (c) This Contract shall be renewed for successive periods of up to 40 years 

196 each, which periods shall be consistent with then-existing policy, under terms and conditions 

197 mutually agreeable to the parties and consistent with Federal and State law. The Contractor shall 

198 be afforded the opportunity to comment to the Contracting Officer on the proposed adoption and 

199 application of any revised policy applicable to the delivery of Project M&I Water that would 

200 limit the term of any subsequent renewal contract with the Contractor for the furnishing of M&I 

201 Water to less than 40 years. 

202 (d) The Contracting Officer shall make a determination 10 years after the date 

203 of execution of this Contract, and every 5 years thereafter during the term of this Contract, of 

204 whether a conversion to a contract under subsection (c)(1) of Section 9 of the Reclamation 

205 Project Act of 1939 can be accomplished. The Contracting Officer anticipates that during the 

206 term of this contract, all authorized project construction expected to occur will have occurred, 

207 and on that basis the Contracting Officer agrees upon such completion to allocate all costs that 

208 are properly assignable to the Contractor, and agrees further that, at any time after such 
Contract No. 14-06-200-8033A-LTR1 

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209 allocation is made, and subject to satisfaction of the conditions set out in this subdivision of this 

210 Article, this contract shall, at the request of the Contractor, be converted to a contract under said 

211 subsection (c)(1) of Section 9, subject to applicable Federal law and under stated terms and 

212 conditions mutually agreeable to the Contractor and the Contracting Officer. A condition for 

213 such conversion to occur shall be a determination by the Contracting Officer that, account being 

214 taken of the amount credited to return by the Contractor as provided for under Federal 

215 Reclamation law, the remaining amount of construction costs assignable for ultimate return by 

216 the Contractor can probably be repaid to the United States within the term of a contract under 

217 said subsection (c)(1) of Section 9. If the remaining amount of costs that are properly assignable 

218 to the Contractor cannot be determined during the term of this Contract, the Contracting Officer 

219 shall notify the Contractor, and provide the reason(s) why such a determination could not be 

220 made. Further, the Contracting Officer shall make such a determination as soon thereafter as 

221 possible so as to permit, upon request of the Contractor and satisfaction of the conditions set out 

222 above, conversion to a contract under said subsection (c)(1) of Section 9. 

223 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

226 this Contract, the Contracting Officer shall make available for delivery to the Contractor 10 acre227 feet of water for M&I purposes. The Water Delivered to the Contractor in accordance with this 

228 subdivision shall be scheduled and paid for pursuant to the provisions of Articles 4 and 7 of this 

229 Contract. 
Contract No. 14-06-200-8033A-LTR1 

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230 (b) Because the capacity of the Central Valley Project to deliver Project 

231 Water has been constrained in recent years and may be constrained in the future due to many 

232 factors including hydrologic conditions and implementation of Federal and State laws, the 

233 likelihood of the Contractor actually receiving the amount of water set out in subdivision (a) of 

234 this Article in any given Year is uncertain. The Contracting Officer=s most recent modeling 

235 referenced in the PEIS projected that Contract Total set forth in this Contract will not be 

236 available to the Contractor in many years. During the most recent five years, the Recent Historic 

237 Average of water made available to the Contractor was 10 acre-feet. Nothing in subdivision (b) 

238 of this Article shall affect the rights and obligations of the parties under any provision of this 

239 Contract. 

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

241 applicable legal requirements. 

242 (d) The Contractor shall make reasonable and beneficial use of all water 

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

244 groundwater banking programs, surface water storage programs, and other similar programs 

245 utilizing Project Water or other water furnished pursuant to this Contract conducted within the 

246 Contractor’s Service Area which are consistent with applicable State law and result in use 

247 consistent with Federal Reclamation law will be allowed; Provided, That any direct recharge 

248 program(s) is (are) described in the Contractor’s water conservation plan submitted pursuant to 

249 Article 26 of this Contract; Provided, further, That such water conservation plan demonstrates 

250 sufficient lawful uses exist in the Contractor’s Service Area so that using a long-term average, 
Contract No. 14-06-200-8033A-LTR1 

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251 the quantity of Delivered Water is demonstrated to be reasonable for such uses and in 

252 compliance with Federal Reclamation law. Groundwater recharge programs, groundwater 

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

254 Water or other water furnished pursuant to this Contract conducted outside the Contractor’s 

255 Service Area may be permitted upon written approval of the Contracting Officer, which approval 

256 will be based upon environmental documentation, Project Water rights, and Project operational 

257 concerns. The Contracting Officer will address such concerns in regulations, policies, or 

258 guidelines. 

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

260 Contractor in biological opinion(s) prepared as a result of a consultation regarding the execution 

261 of this Contract undertaken pursuant to Section 7 of the Endangered Species Act (ESA) of 1973, 

262 as amended, that are within the Contractor=s legal authority to implement. The Existing 

263 Contract, which evidences in excess of 29 years of diversions for M&I purposes of the quantities 

264 of water provided in subdivision (a) of Article 3 of this Contract, will be considered in 

265 developing an appropriate baseline for the biological assessment prepared pursuant to the ESA, 

266 and any other needed environmental review. Nothing herein shall be construed to prevent the 

267 Contractor from challenging or seeking judicial relief in a court of competent jurisdiction with 

268 respect to any biological opinion or other environmental documentation referred to in this 

269 Article. 

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

271 Contact, the Contracting Officer will make a determination whether Project Water, or other 
Contract No. 14-06-200-8033A-LTR1 

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272 water available to the Project, can be made available to the Contractor in addition to the Contract 

273 Total under Article 3 of this Article during the Year without adversely impacting other Project 

274 Contractors. At the request of the Contractor, the Contracting Officer will consult with the 

275 Contractor prior to making such a determination. If the Contracting Officer determines that 

276 Project Water, or other water available to the Project, can be made available to the Contractor, 

277 the Contracting Officer will announce the availability of such water and shall so notify the 

278 Contractor as soon as practical. The Contracting Officer will thereafter meet with the Contractor 

279 and other Project Contractors capable of taking such water to determine the most equitable and 

280 efficient allocation of such water. If the Contractor requests the delivery of any quantity of such 

281 water, the Contracting Officer shall make such water available to the Contractor in accordance 

282 with applicable statutes, regulations, guidelines, and policies. 

283 (g) The Contractor may request permission to reschedule for use during the 

284 subsequent Year some or all of the Water Made Available to the Contractor during the current 

285 Year referred to as “rescheduled water”. The Contractor may request permission to use during 

286 the current Year a quantity of Project Water which may be made available by the United States 

287 to the Contractor during the subsequent Year referred to as ”preuse”. The Contracting Officer’s 

288 written approval may permit such uses in accordance with applicable statutes, regulations, 

289 guidelines, and policies. Subject to existing long-term contractual commitments, water rights 

290 and operational constraints, long-term Project Contractors shall have a first right to acquire such 

291 water, including Project Water made available pursuant to Section 215 of the RRA. 

292 (h) The Contractors= right pursuant to Federal Reclamation law and applicable 
Contract No. 14-06-200-8033A-LTR1 

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

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

295 Contract, during the terms thereof shall not be disturbed so long as the Contractor shall fulfill all 

296 of its obligations under this Contract and any renewals thereof. Nothing in the preceding 

297 sentence shall affect the Contracting Officer=s ability to impose shortages under Article 11 or 

298 subdivision (b) of Article 12 of 

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

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

301 delivered for purposes other than those described in subdivision (o) of Article 1 of this Contract 

302 upon written approval by the Contracting Officer in accordance with the terms and conditions of 

303 such approval. 

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

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

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

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

308 Provided, that the Contracting Officer retains the right to object to the substance of the 

309 Contractor’s position in such a proceeding; Provided further, That in such proceedings the 

310 Contracting Officer shall recognize the Contractor has a legal right under the terms of this 

311 Contract to use Project Water. 

312 TIME FOR DELIVERY OF WATER

313 4. (a) On or about February 20 of each Calendar Year, the Contracting Officer 
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314 shall announce the Contracting Officer=s expected declaration of the Water Made Available. 

315 Such declaration will be expressed in terms of both Water Made Available and the Recent 

316 Historic Average and will be updated monthly, and more frequently if necessary, based on then317 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

318 Water Made Available will be made. The Contracting Officer shall provide forecasts of Project 

319 operations and the basis of the estimate, with relevant supporting information, upon the written 

320 request of the Contractor. Concurrently with the declaration of the Water Made Available, the 

321 Contracting Officer shall provide the Contractor with the updated Recent Historic Average. 

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

323 Contractor shall submit to the Contracting Officer a written schedule, satisfactory to the 

324 Contracting Officer, showing the monthly quantities of Project Water to be delivered by the 

325 United States to the Contractor pursuant to this Contract for the Year commencing on such 

326 March 1. The Contracting Officer shall use all reasonable means to deliver Project Water 

327 according to the approved schedule for the Year commencing on such March 1. 

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

329 of Project Water the Contractor intends to put to reasonable and beneficial use within the 

330 Contractor's Service Area or to sell, transfer or exchange pursuant to Article 9 of this Contract 

331 during any Year. 

332 (d) Subject to the conditions set forth in subdivision (a) of Article 3 of this 

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

334 initial schedule submitted by the Contractor pursuant to subdivision (b) of this Article, or any 
Contract No. 14-06-200-8033A-LTR1 

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335 written revision(s), thereto satisfactory to the Contracting Officer, submitted within a reasonable 

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

337 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

339 Contract shall be delivered to the Contractor at Project facilities and any additional point or 

340 points of delivery either on Project facilities or another location or locations mutually agreed to 

341 in writing by the Contracting Officer and the Contractor. 

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

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

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

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

346 Article. 

347 (c) The Contractor shall not deliver Project Water to land outside the 

348 Contractor's Service Area unless approved in advance by the Contracting Officer. 

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

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

351 Contracting Officer either directly or indirectly through its written agreements(s) with the 

352 Operating Non-Federal Entity(ies), unless undertaken by the Contractor with the consent of the 

353 Contracting Officer at the point or points of delivery established pursuant to subdivision (a) of 

354 this Article. Upon the request of either party to this Contract, the Contracting Officer shall 
Contract No. 14-06-200-8033A-LTR1 

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355 investigate, or cause to be investigated by the appropriate Operating Non-Federal Entity(ies) the 

356 accuracy of such measurements and shall take any necessary steps to adjust any errors appearing 

357 therein. For any period of time when accurate measurements have not been made, the 

358 Contracting Officer shall consult with the Contractor and the appropriate Operating Non-Federal 

359 Entity(ies), if any, prior to making a final determination of the quantity delivered for that period 

360 of time. 

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

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

363 control, carriage, handling, use, disposal, or distribution of Water Delivered to the Contractor 

364 pursuant to this Contract beyond the point or points of delivery established pursuant to 

365 subdivision (a) of this Article. The Contractor shall indemnify the United States, its officers, 

366 employees, agents, and assigns on account of damage or claim of damage of any nature 

367 whatsoever for which there is legal responsibility, including property damage, personal injury, or 

368 death arising out of or connected with the control, carriage, handling, use, disposal, or 

369 distribution of such Water Delivered beyond such point or points of delivery except for any 

370 damage or claim arising out of: (i) acts or omissions of the Contracting Officer or any of its 

371 officers, employees, agents, and assigns, including any responsible Operating Non-Federal 

372 Entity(ies), with the intent of creating the situation resulting in any damage or claim; (ii) willful 

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

374 including any responsible Operating Non-Federal Entity; (iii) negligence of the Contracting 

375 Officer or any of its officers, employees, agents, and assigns including the Operating Non-
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376 Federal Entity(ies); or (iv) damage or claims resulting from a malfunction of facilities owned 

377 and/or operated by the United States or responsible Operating Non-Federal Entity(ies). 

378 MEASUREMENT OF WATER WITHIN THE SERVICE AREA

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

380 Contracting Officer. The Contractor shall ensure that, unless the Contractor establishes an 

381 alternative measurement program satisfactory to the Contracting Officer, all surface water 

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

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

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

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

386 measuring methods at no cost to the United States. The Contractor shall use the information 

387 obtained from such water measuring devices or water measuring methods to ensure its proper 

388 management of the water; to bill water users for water delivered by the Contractor; and, if 

389 applicable, to record water delivered for M&I purposes by customer class as defined in the 

390 Contractor’s water conservation plan provided for in Article 26 of this Contract. Nothing herein 

391 contained, however, shall preclude the Contractor from establishing and collecting any charges, 

392 assessments, or other revenues authorized by California law. The Contractor shall include a 

393 summary of all its annual surface water deliveries in the annual report described in subdivision 

394 (c) of Article 26. 

395 (b) To the extent the information has not otherwise been provided, upon 
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396 execution of this Contract, the Contractor shall provide to the Contracting Officer a written 

397 report describing the measurement devices or water measuring methods being used or to be used 

398 to implement subdivision (a) of this Article and identifying the M&I service connections or 

399 alternative measurement programs approved by the Contracting Officer, at which such 

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

401 the locations at which such devices and/or methods are not yet being used including a time 

402 schedule for implementation at such locations. The Contracting Officer shall advise the 

403 Contractor in writing within 60 days as to the adequacy, and necessary modifications, if any, of 

404 the measuring devices or water measuring methods identified in the Contractor=s report and if the 

405 Contracting Officer does not respond in such time, they shall be deemed adequate. If the 

406 Contracting Officer notifies the Contractor that the measuring devices or methods are 

407 inadequate, the parties shall within 60 days following the Contracting Officer>s response, 

408 negotiate in good faith the earliest practicable date by which the Contractor shall modify said 

409 measuring devices and/or measuring methods as required by the Contracting Officer to ensure 

410 compliance with subdivision (a) of this Article. 

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

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

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

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

415 California in writing by April 30 of each Year of the monthly volume of surface water delivered 

416 within the Contractor=s Service Area during the previous Year. 
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417 (e) The Contractor shall inform the Contracting Officer and the Operating 

418 Non-Federal Entity on or before the 20th calendar day of each month of the quantity of M&I 

419 Water taken during the preceding month. 

420 RATES AND METHOD OF PAYMENT FOR WATER

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

422 all Delivered Water at Rates, Charges, and the Tiered Pricing Component established in 

423 accordance with: (i) the Secretary’s then-existing ratesetting policy for M&I Water. Such 

424 ratesetting policies shall be amended, modified, or superceded only through a public notice and 

425 comment procedure; (ii) applicable Federal Reclamation law and associated rules and 

426 regulations, or policies; and (iii) other applicable provisions of this Contract. Payments shall be 

427 made by cash transaction, electronic funds transfer, or any other mechanism as may be agreed to 

428 in writing by the Contractor and the Contracting Officer. The Rates, Charges, and Tiered Pricing 

429 Component applicable to the Contractor upon execution of this Contract are set forth in Exhibit 

430 “B,” as may be revised annually. 

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

432 and Tiered Pricing Components as follows: 

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

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

435 period October 1, of the current Calendar Year, through September 30, of the following Calendar 

436 Year, and the basis for such estimate. The Contractor shall be allowed not less than two months 

437 to review and comment on such estimates. On or before September 15 of each Calendar Year, 
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438 the Contracting Officer shall notify the Contractor in writing of the Charges to be in effect 

439 during the period October 1 of the current Calendar Year, through September 30, of the 

440 following Calendar Year, and such notification shall revise Exhibit “B.” 

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

442 shall make available to the Contractor an estimate of the Rates and Tiered Pricing Components 

443 for Project Water for the following Year and the computations and cost allocations upon which 

444 those Rates are based. The Contractor shall be allowed not less than two months to review and 

445 comment on such computations and cost allocations. By December 31 of each Calendar Year, 

446 the Contracting Officer shall provide the Contractor with the final Rates and Tiered Pricing 

447 Components to be in effect for the upcoming Year, and such notification shall revise Exhibit 

448 “B.” 

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

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

451 Contractor shall make an advance payment to the United States equal to the total amount payable 

452 pursuant to the applicable Rate(s) set under subdivision (a) of this Article, for the Project Water 

453 scheduled to be delivered pursuant to this Contract during the first two calendar months of the 

454 Year. Before the end of the first month and before the end of each calendar month thereafter, the 

455 Contractor shall make an advance payment to the United States, at the Rate(s) set under 

456 subdivision (a) of this Article, for the Water Scheduled to be delivered pursuant to this Contract 

457 during the second month immediately following. Adjustments between advance payments for 

458 Water Scheduled and payments at Rates due for Water Delivered shall be made before the end of 
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459 the following month; Provided, That any revised schedule submitted by the Contractor pursuant 

460 to Article 4 of this Contract which increases the amount of Water Delivered pursuant to this 

461 Contract during any month shall be accompanied with appropriate advance payment, at the Rates 

462 then in effect, to assure that Project Water is not delivered to the Contractor in advance of such 

463 payment. In any month in which the quantity of Water Delivered to the Contractor pursuant to 

464 this Contract equals the quantity of Water Scheduled and paid for by the Contractor, no 

465 additional Project Water shall be delivered to the Contractor unless and until an advance 

466 payment at the Rates then in effect for such additional Project Water is made. Final adjustment 

467 between the advance payments for the Water Scheduled and payments for the quantities of 

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

469 but no later than April 30th of the following Year, or (60) days after the delivery of Project 

470 Water rescheduled under subdivision (g) of Article 3 of this Contract if such water is not 

471 delivered by the last day of February. 

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

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

474 appropriate Tiered Pricing Component then in effect, before the end of the month of delivery. 

475 The payments shall be consistent with the quantities of M&I Water Delivered as shown in the 

476 water delivery report for the subject month prepared by the Operating Non-Federal Entity or, if 

477 there is no Operating Non-Federal Entity, by the Contracting Officer. The water delivery report 

478 shall be deemed a bill for the payment of Charges and the applicable Tiered Pricing Component 

479 for Water Delivered. Adjustment for overpayment or underpayment of Charges shall be made 
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480 through the adjustment of payments due to the United States for Charges for the next month. 

481 Any amount to be paid for past due payment of Charges and the Tiered Pricing Component shall 

482 be computed pursuant to Article 20 of this Contract. 

483 (e) The Contractor shall pay for any Water Delivered under subdivision (d), 

484 (f), or (g) of Article 3 of this Contract as determined by the Contracting Officer pursuant to 

485 applicable statutes, associated regulations, any applicable provisions of guidelines or ratesetting 

486 policies; Provided, That the Rate for Water Delivered under subdivision (d) or (f) of Article 3 of 

487 this Contract shall be no more than the otherwise applicable Rate for M&I Water under 

488 subdivision (a) of this Article. 

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

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

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

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

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

494 regulations, and the then current Project ratesetting policies for M&I Water. 

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

496 administration of the financial terms and conditions of its long-term contracts, in accordance 

497 with applicable Federal standards, so as to reflect the application of Project costs and revenues. 

498 The Contracting Officer shall, each Year upon request of the Contractor, provide to the 

499 Contractor a detailed accounting of all Project and Contractor expense allocations, the 

500 disposition of all Project and Contractor revenues, and a summary of all water delivery 
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501 information. The Contracting Officer and the Contractor shall enter into good faith negotiations 

502 to resolve any discrepancies or disputes relating to accountings, reports, or information. 

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

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

505 policies, and procedures used for establishing Rates, Charges, and Tiered Pricing Components, 

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

507 the mutual best interest of the parties, it is expressly agreed that the parties may enter into 

508 agreements to modify the mechanisms, policies, and procedures for any of those purposes while 

509 this Contract is in effect without amending this Contract. 

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

511 exceed 80 percent of the Contract Total, then before the end of the month following the month of 

512 delivery the Contractor shall make an additional payment to the United States equal to the 

513 applicable Tiered Pricing Component. The Tiered Pricing Component for the amount of Water 

514 Delivered in excess of 80 percent of the Contract Total, but less than or equal to 90 percent of 

515 the Contract Total, shall equal the one-half of the difference between the Rate established under 

516 subdivision (a) of this Article and the M&I Full Cost Water Rate. The Tiered Pricing 

517 Component for the amount of Water Delivered which exceeds 90 percent of the Contract Total 

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

519 and (ii) the M&I Full Cost Water Rate. 

520 (2) Omitted. 
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521 (3) For purposes of determining the applicability of the Tiered Pricing 

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

523 Contractor transfers to others but shall not include Project Water transferred and delivered to the 

524 Contractor, nor shall it include the additional water provided to the Contractor under the 

525 provisions of subdivision (f) of Article 3 of this Contract. 

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

527 ratesetting policies will be established to recover only reimbursable O&M (including any 

528 deficits) and capital costs of the Project, as those terms are used in the then-current Project 

529 ratesetting policies, and interest, where appropriate, except in instances where a minimum Rate 

530 is applicable in accordance with the relevant Project ratesetting policy. Changes of significance 

531 in practices which implement the Contracting Officer’s ratesetting policies will not be 

532 implemented until the Contracting Officer has provided the Contractor an opportunity to discuss 

533 the nature, need, and impact of the proposed change. 

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

535 CVPIA, the Rates for Project Water transferred by the Contractor shall be the Contractor=s Rates 

536 adjusted upward or downward to reflect the changed costs of delivery (if any) of the transferred 

537 Project Water to the transferee=s point of delivery in accordance with the then applicable CVP 

538 Ratesetting Policy. 

539 (m) Omitted. 

540 (n) Omitted

541 8. Omitted. 
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542 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

544 sold, transferred, or exchanged to others for reasonable and beneficial uses within the State of 

545 California if such sale, transfer, or exchange is authorized by applicable Federal and State laws, 

546 and applicable guidelines or regulations then in effect. No sale, transfer, or exchange of Project 

547 Water under this Contract may take place without the prior written approval of the Contracting 

548 Officer, except as provided for in subdivision (b) of this Article, and no such sales, transfers, or 

549 exchanges shall be approved absent all appropriate environmental documentation, including but 

550 not limited to documents prepared pursuant to the NEPA and the ESA. Such environmental 

551 documentation should include, as appropriate, an analysis of groundwater impacts and economic 

552 and social effects, including environmental justice, of the proposed water transfers on both the 

553 transferor and transferee. 

554 (b) In order to facilitate efficient water management by means of water 

555 transfers of the type historically carried out among Project Contractors located within the same 

556 geographical area and to allow the Contractor to participate in an accelerated water transfer 

557 program during the term of this Contract, the Contracting Officer shall prepare, as appropriate, 

558 all necessary environmental documentation including, but not limited to documents prepared 

559 pursuant to the NEPA and the ESA analyzing annual transfers within such geographical areas 

560 and the Contracting Officer shall determine whether such transfers comply with applicable law. 

561 Following the completion of the environmental documentation, such transfers addressed in such 

562 documentation shall be conducted with advance notice to the Contracting Officer, but shall not 
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563 require prior written approval by the Contracting Officer. Such environmental documentation 

564 and the Contracting Officer=s compliance determination shall be reviewed every five years and 

565 updated, as necessary, prior to the expiration of the then existing five-year period. All 

566 subsequent environmental documentation shall include an alternative to evaluate not less than 

567 the quantity of Project Water historically transferred within the same geographical area. 

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

569 water transfer must: (i) be for irrigation purposes for lands irrigated within the previous three (3) 

570 years, for M&I use, groundwater recharge, groundwater banking, or similar groundwater 

571 activities, surface water storage, or fish and wildlife resources; not lead to land conversion; and 

572 be delivered to established cropland, wildlife refuges, groundwater basins or M&I use; (ii) occur 

573 within a single Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water 

574 through existing facilities with no new construction or modifications to facilities and be between 

575 existing Project Contractors and/or the Contractor and the United States, Department of the 

576 Interior; and (v) comply with all applicable Federal, State, and local or tribal laws and 

577 requirements imposed for protection of the environment and Indian Trust Assets, as defined 

578 under Federal law. 

579 APPLICATION OF PAYMENTS AND ADJUSTMENTS

580 10. (a) The amount of any overpayment by the Contractor of the Contractor=s 

581 O&M, capital, and deficit (if any) obligations for the Year shall be applied first to any current 

582 liabilities of the Contractor arising out of this Contract then due and payable. Overpayments of 

583 more than $1,000 shall be refunded at the Contractor=s request. In lieu of a refund, any amount 
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584 of such overpayment at the option of the Contractor, may be credited against amounts to become 

585 due to the United States by the Contractor. With respect to overpayment, such refund or 

586 adjustment shall constitute the sole remedy of the Contractor or anyone having or claiming to 

587 have the right to the use of any of the Project Water supply provided for herein. All credits and 

588 refunds of overpayments shall be made within 30 days of the Contracting Officer obtaining 

589 direction as to how to credit or refund such overpayment in response to the notice to the 

590 Contractor that it has finalized the accounts for the Year in which the overpayment was made. 

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

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

593 when the work has been completed. If the advances exceed the actual costs incurred, the 

594 difference will be refunded to the Contractor. If the actual costs exceed the Contractor's 

595 advances, the Contractor will be billed for the additional costs pursuant to Article 25. 

596 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

599 or renewals thereof, providing for water deliveries from the Project, the Contracting Officer shall 

600 make all reasonable efforts to optimize Project Water deliveries to the Contractor as provided in 

601 this Contract. 

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

603 temporarily discontinue or reduce the quantity of Water Delivered to the Contractor as herein 

604 provided for the purposes of investigation, inspection, maintenance, repair, or replacement of 
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605 any of the Project facilities or any part thereof necessary for the delivery of Project Water to the 

606 Contractor, but so far as feasible the Contracting Officer or Operating Non-Federal Entity(ies) 

607 will give the Contractor due notice in advance of such temporary discontinuance or reduction, 

608 except in case of emergency, in which case no notice need be given; Provided, That the United 

609 States shall use its best efforts to avoid any discontinuance or reduction in such service. Upon 

610 resumption of service after such reduction or discontinuance, and if requested by the Contractor, 

611 the United States will, if possible, deliver the quantity of Project Water which would have been 

612 delivered hereunder in the absence of such discontinuance or reduction. 

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

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

615 beyond the Contractor's Service Area; Provided, That this shall not be construed as claiming for 

616 the United States any right as seepage or return flow being put to reasonable and beneficial use 

617 pursuant to this Contract within the Contractor=s Service Area by the Contractor or those 

618 claiming by, through, or under the Contractor. 

619 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

621 reasonable means to guard against a Condition of Shortage in the quantity of water to be made 

622 available to the Contractor pursuant to this Contract. In the event the Contracting Officer 

623 determines that a Condition of Shortage appears probable, the Contracting Officer will notify the 

624 Contractor of said determination as soon as practicable. 

625 (b) If there is a Condition of Shortage because of errors in physical operations 
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626 of the Project, drought, other physical causes beyond the control of the Contracting Officer or 

627 actions taken by the Contracting Officer to meet legal obligations then, except as provided in 

628 subdivision (a) of Article 18 of this Contract, no liability shall accrue against the United States or 

629 any of its officers, agents, or employees for any damage, direct or indirect, arising therefrom. 

630 (c) Omitted. 

631 (d) Project Water furnished under this Contract will be allocated in 

632 accordance with the then-existing Project M&I Water Shortage Policy. Such policy shall be 

633 amended, modified, or superseded only through a public notice and comment procedure. 

634 (e) By entering into this Contract, the Contractor does not waive any legal 

635 rights or remedies it may have to file or participate in any administrative or judicial proceeding 

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

637 substance of such a policy; (iii) the applicability of such a policy; or (iv) the manner in which 

638 such policy is implemented in order to allocate Project Water between M&I and irrigation 

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

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

641 policy becoming final. By agreeing to the foregoing, the Contracting Officer does not waive any 

642 legal defenses or remedies that it may have to assert in such a proceeding. Nothing contained 

643 herein shall be interpreted to validate or invalidate the Central Valley Project M&I Water 

644 Shortage Policy. 

645 13. Omitted. 
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646 RULES AND REGULATIONS

647 14. The parties agree that the delivery of M&I Water or use of Federal facilities 

648 pursuant to this Contract is subject to the applicable provisions of Federal Reclamation law and 

649 any applicable rules and regulations promulgated by the Secretary of the Interior under such law. 

650 WATER AND AIR POLLUTION CONTROL

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

652 water and air pollution laws and regulations of the United States and the State of California, and 

653 shall obtain all required permits or licenses from the appropriate Federal, State, or local 

654 authorities. 

655 QUALITY OF WATER 

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

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

658 Water to the Contractor in accordance with the water quality standards specified in subsection 

659 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

660 October 27, 1986 (100 Stat. 3050) or other existing Federal laws. The United States is under no 

661 obligation to construct or furnish water treatment facilities to maintain or to improve the quality 

662 of Water Delivered to the Contractor pursuant to this Contract. The United States does not 

663 warrant the quality of Water Delivered to the Contractor pursuant to this Contract. 

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

665 practicable to maintain the quality of raw water made available through such facilities at the 
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666 highest level reasonably attainable as determined by the Contracting Officer. 

667 WATER ACQUIRED BY THE CONTRACTOR

668 OTHER THAN FROM THE UNITED STATES

669 17. (a) Omitted. 

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

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

672 facilities, subject to the completion of appropriate environmental documentation, with the 

673 approval of the Contracting Officer and the execution of any contract determined by the 

674 Contracting Officer to be necessary, consistent with the following provisions: 

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

676 facilities and deliver said water to lands within the Contractor’s Service Area, subject to payment 

677 to the United States and/or to any applicable Operating Non-Federal Entity of an appropriate rate 

678 as determined by the CVP Ratesetting Policy and the RRA each as amended, modified or 

679 superceded from time to time. In addition, if electrical power is required to pump non-Project 

680 water through the facilities, the Contractor shall be responsible for obtaining the necessary 

681 power and paying the necessary charges therefore. 

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

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

684 purposes as determined by the Contracting Officer; (ii) reduce the quantity or quality of water 

685 available to other Project water service contractors; (iii) interfere with the delivery of contractual 
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686 water entitlements to any other Project water service contractors; or (iv) interfere with the 

687 physical maintenance of the Project facilities. 

688 (3) Neither the United States nor the Operating Non-Federal 

689 Entity(ies) shall be responsible for control, care or distribution of the non-Project water before it 

690 is introduced into or after it is delivered from the Project facilities. The Contractor hereby 

691 releases and agrees to defend and indemnify the United States and the Operating Non-Federal 

692 Entity(ies), and their respective officers, agents, and employees, from any claim for damage to 

693 persons or property, direct or indirect, resulting from the acts(s) the Contractor or its officers, 

694 employees, agents, or assigns, in (i) extracting or diverting non-Project water from any source, or 

695 (ii) diverting such non-Project water into Project facilities. 

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

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

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

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

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

701 Division Facilities shall share priority to utilize the remaining capacity of the facilities declared 

702 to be available by the Contracting Officer for conveyance and transportation of non-Project 

703 water prior to any such remaining capacity being made available to non-Project contractors. 

704 Other Project Contractors shall have a second priority to any remaining capacity of facilities 

705 declared to be available by the Contracting Officer for conveyance and transportation of non706 Project water prior to any such remaining capacity being made available to non-Project 
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707 contractors. 

708 OPINIONS AND DETERMINATIONS

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

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

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

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

713 reserve the right to seek relief from and appropriate adjustment for any such arbitrary, 

714 capricious, or unreasonable opinion or determination. Each opinion or determination by either 

715 party shall be provided in a timely manner. Nothing in this subdivision (a) of this Article is 

716 intended to or shall affect or alter the standard of judicial review applicable under Federal law to 

717 any opinion or determination implementing a specific provision of Federal law embodied in 

718 statute or regulation. 

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

720 necessary to administer this Contract that are consistent with the expressed and implied 

721 provisions of this Contract, the laws of the United States and of the State of California, and the 

722 rules and regulations promulgated by the Secretary of the Interior. Such determinations shall be 

723 made in consultation with the Contractor to the extent reasonably practicable.

724 COORDINATION AND COOPERATION

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

726 Officer and the Contractor shall communicate, coordinate, and cooperate with each other, and 
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727 with other affected Project Contractors, in order to improve the operation and management of the 

728 Project. The communication, coordination, and cooperation regarding operations and 

729 management shall include, but not be limited to, any action which will or may materially affect 

730 the quantity or quality of Project Water supply, the allocation of Project Water supply, and 

731 Project financial matters including, but not limited to, budget issues. The communication, 

732 coordination, and cooperation provided for hereunder shall extend to all provisions of this 

733 Contract. Each party shall retain exclusive decision making authority for all actions, opinion, 

734 and determinations to be made by the respective party. 

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

736 Contractor, other affected Project Contractors, and the Contracting Officer shall arrange to meet 

737 with interested Project Contractors to develop a mutually agreeable, written Project-wide 

738 process, which may be amended as necessary separate and apart from this Contract. The goal of 

739 this process shall be to provide, to the extent practicable, the means of mutual communication 

740 and interaction regarding significant decisions concerning Project operation and management on 

741 a real-time basis. 

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

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

744 intent: 

745 (1) The Contracting Officer will, at the request of the Contractor, 

746 assist in the development of integrated resource management plans for the Contractor. Further, 

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

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

750 implementation and authorization in coordination with Project Contractors to improve the water 

751 supply, water quality, and reliability of the Project for all Project purposes. 

752 (3) The Secretary will coordinate with Project Contractors and the 

753 State of California to seek improved water resource management. 

754 (4) The Secretary will coordinate actions of agencies within the 

755 Department of the Interior that may impact the availability of water for Project purposes. 

756 (5) The Contracting Officer shall periodically, but not less than 

757 annually, hold division level meetings to discuss Project operations, division level water 

758 management activities, and other issues as appropriate. 

759 (d) Without limiting the contractual obligations of the Contracting Officer 

760 under the other Articles of this Contract, nothing in this Article shall be construed to limit or 

761 constrain the Contracting Officer=s ability to communicate, coordinate, and cooperate with the 

762 Contractor or other interested stakeholders or to make decisions in a timely fashion as needed to 

763 protect health, safety, or physical integrity of structures or facilities. 

764 CHARGES FOR DELINQUENT PAYMENTS

765 20. (a) The Contractor shall be subject to interest, administrative and penalty 

766 charges on delinquent installments or payments. When a payment is not received by the due 

767 date, the Contractor shall pay an interest charge for each day the payment is delinquent beyond 

768 the due date. When a payment becomes sixty (60) days delinquent, the Contractor shall pay an 

769 administrative charge to cover additional costs of billing and processing the delinquent payment. 

770 When a payment is delinquent ninety (90) days or more, the Contractor shall pay an additional 
Contract No. 14-06-200-8033A-LTR1 

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771 penalty charge of six (6%) percent per year for each day the payment is delinquent beyond the 

772 due date. Further, the Contractor shall pay any fees incurred for debt collection services 

773 associated with a delinquent payment. 

774 (b) The interest charge rate shall be the greater of the rate prescribed quarterly 

775 in the Federal Register by the Department of the Treasury for application to overdue payments, 

776 or the interest rate of one-half of one (0.5%) percent per month prescribed by Section 6 of the 

777 Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate shall be 

778 determined as of the due date and remain fixed for the duration of the delinquent period. 

779 (c) When a partial payment on a delinquent account is received, the amount 

780 received shall be applied, first to the penalty, second to the administrative charges, third to the 

781 accrued interest, and finally to the overdue payment. 

782 EQUAL OPPORTUNITY

783 21. During the performance of this Contract, the Contractor agrees as follows: 

784 (a) The Contractor will not discriminate against any employee or applicant for 

785 employment because of race, color, religion, sex, or national origin. The Contractor will take 

786 affirmative action to ensure that applicants are employed, and that employees are treated during 

787 employment, without regard to their race, color, religion, sex, or national origin. Such action 

788 shall include, but not be limited to, the following: Employment, upgrading, demotion, or 

789 transfer; recruitment or recruitment advertising; layoff or termination, rates of payment or other 

790 forms of compensation; and selection for training, including apprenticeship. The Contractor 

791 agrees to post in conspicuous places, available to employees and applicants for employment, 

792 notices to be provided by the Contracting Officer setting forth the provisions of this 

793 nondiscrimination clause. 

794 (b) The Contractor will, in all solicitations or advertisements for employees 

795 placed by or on behalf of the Contractor, state that all qualified applicants will receive 

796 consideration for employment without discrimination because of race, color, religion, sex, or 

797 national origin. 

798 (c) The Contractor will send to each labor union or representative of workers 

799 with which it has a collective bargaining agreement or other contract or understanding, a notice, 

800 to be provided by the Contracting Officer, advising the said labor union or workers' 

801 representative of the Contractor's commitments under Section 202 of Executive Order 11246 of 

802 September 24, 1965, and shall post copies of the notice in conspicuous places available to 

803 employees and applicants for employment. 
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804 (d) The Contractor will comply with all provisions of Executive Order No. 

805 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders of 

806 the Secretary of Labor. 

807 (e) The Contractor will furnish all information and reports required by said 

808 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

809 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

810 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with 

811 such rules, regulations, and orders. 

812 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

813 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

814 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

815 ineligible for further Government contracts in accordance with procedures authorized in said 

816 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

817 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

818 otherwise provided by law. 

819 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

820 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

821 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

822 provisions will be binding upon each subcontractor or vendor. The Contractor will take such 

823 action with respect to any subcontract or purchase order as may be directed by the Secretary of 

824 Labor as a means of enforcing such provisions, including sanctions for noncompliance: 

825 Provided, however, That in the event the Contractor becomes involved in, or is threatened with, 

826 litigation with a subcontractor or vendor as a result of such direction, the Contractor may request 

827 the United States to enter into such litigation to protect the interests of the United States. 

828 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

829 22. (a) The obligation of the Contractor to pay the United States as provided in 

830 this Contract is a general obligation of the Contractor notwithstanding the manner in which the 

831 obligation may be distributed among the Contractor's water users and notwithstanding the default 

832 of individual water users in their obligations to the Contractor. 

833 (b) The payment of charges becoming due hereunder is a condition precedent 

834 to receiving benefits under this Contract. The United States shall not make water available to the 

835 Contractor through Project facilities during any period in which the Contractor may be in arrears 

836 in the advance payment of water rates due the United States. The Contractor shall not furnish 
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837 water made available pursuant to this Contract for lands or parties which are in arrears in the 

838 advance payment of water rates levied or established by the Contractor.(c) With respect to 

839 subdivision (b) of this Article, the Contractor shall have no obligation to require advance 

840 payment for water rates which it levies. 

841 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

842 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 

843 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

844 Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights 

845 laws, as well as with their respective implementing regulations and guidelines imposed by the 

846 U.S. Department of the Interior and/or Bureau of Reclamation. 

847 (b) These statutes require that no person in the United States shall, on the 

848 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be 

849 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

850 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

851 Contractor agrees to immediately take any measures necessary to implement this obligation, 

852 including permitting officials of the United States to inspect premises, programs, and documents. 

853 (c) The Contractor makes this agreement in consideration of and for the 

854 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or other 

855 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of 

856 Reclamation, including installment payments after such date on account of arrangements for 

857 Federal financial assistance which were approved before such date. The Contractor recognizes 

858 and agrees that such Federal assistance will be extended in reliance on the representations and 

859 agreements made in this Article, and that the United States reserves the right to seek judicial 

860 enforcement thereof. 

861 24. Omitted. 

862 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

863 25. In addition to all other payments to be made by the Contractor pursuant to this 

864 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

865 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 
Contract No. 14-06-200-8033A-LTR1 

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866 of direct cost incurred by the United States for work requested by the Contractor associated with 

867 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

868 and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

869 to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

870 contract administration. 

871 WATER CONSERVATION

872 26. (a) Prior to the delivery of water provided from or conveyed through 

873 Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor 

874 shall be implementing an effective water conservation and efficiency program based on the 

875 Contractor's water conservation plan that has been determined by the Contracting Officer to meet 

876 the conservation and efficiency criteria for evaluating water conservation plans established under 

877 Federal law. The water conservation and efficiency program shall contain definite water 

878 conservation objectives, appropriate economically feasible water conservation measures, and 

879 time schedules for meeting those objectives. Continued Project Water delivery pursuant to this 

880 Contract shall be contingent upon the Contractor=s continued implementation of such water 

881 conservation program. In the event the Contractor's water conservation plan or any revised 

882 water conservation plan completed pursuant to subdivision (d) of this Article 26 have not yet 

883 been determined by the Contracting Officer to meet such criteria, due to circumstances which the 

884 Contracting Officer determines are beyond the control of the Contractor, water deliveries shall 

885 be made under this Contract so long as the Contractor diligently works with the Contracting 

886 Officer to obtain such determination at the earliest practicable date, and thereafter the Contractor 
Contract No. 14-06-200-8033A-LTR1 

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887 immediately begins implementing its water conservation and efficiency program in accordance 

888 with the time schedules therein. 

889 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

890 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall 

891 implement the Best Management Practices identified by the time frames issued by the California 

892 Urban Water Conservation Council for such M&I Water unless any such practice is determined 

893 by the Contracting Officer to be inappropriate for the Contractor. 

894 (c) The Contractor shall submit to the Contracting Officer a report on the 

895 status of its implementation of the water conservation plan on the reporting dates specified in the 

896 then existing conservation and efficiency criteria established under Federal law. 

897 (d) At five-year intervals, the Contractor shall revise its water conservation 

898 plan to reflect the then current conservation and efficiency criteria for evaluating water 

899 conservation plans established under Federal law and submit such revised water management 

900 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

901 determine if the water conservation plan meets Reclamation=s then current conservation and 

902 efficiency criteria for evaluating water conservation plans established under Federal law. 

903 (e) If the Contractor is engaged in direct groundwater recharge, such activity 

904 shall be described in the Contractor=s water conservation plan. 

905 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

906 27. Except as specifically provided in Article 17 of this Contract, the provisions of 
Contract No. 14-06-200-8033A-LTR1 

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907 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

908 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

909 Area. Any such water shall not be considered Project Water under this Contract. In addition, 

910 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

911 any water user within the Contractor's Service Area acquires or has available under any other 

912 contract pursuant to Federal Reclamation law. 

913 OPERATION AND MAINTENANCE BY SAN LUIS & DELTA-MENDOTA WATER 

914 AUTHORITY

915 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

916 and responsibility for funding a portion of the costs of such O&M, have been transferred to the 

917 San Luis & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate 

918 agreement (8-07-20-X0354) between the United States and the Operating Non-Federal Entity 

919 San Luis & Delta-Mendota Water Authority. That separate agreement shall not interfere with or 

920 affect the rights or obligations of the Contractor or the United States hereunder. 

921 (b) The Contracting Officer has previously notified the Contractor in writing 

922 that the O&M of a portion of the Project facilities which serve the Contractor has been 

923 transferred to the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, 

924 and therefore, the Contractor shall pay directly to the Operating Non-Federal Entity San Luis & 

925 Delta-Mendota Water Authority, or to any successor approved by the Contracting Officer under 

926 the terms and conditions of the separate agreement between the United States and the Operating 

927 Non-Federal Entity San Luis & Delta-Mendota Water Authority, described in subdivision (a) of 

928 this Article, all rates, charges, or assessments of any kind, including any assessment for reserve 
Contract No. 14-06-200-8033A-LTR1 

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929 funds, which the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or 

930 such successor determines, sets, or establishes for the O&M of the portion of the Project 

931 facilities operated and maintained by the Operating Non-Federal Entity or such successor. Such 

932 direct payments to the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

933 Authority, or such successor shall not relieve the Contractor of its obligation to pay directly to 

934 the United States the Contractor’s share of the Project Rates, Charges, and Tiered Pricing 

935 Component(s) except to the extent the Operating Non-Federal Entity collects payments on behalf 

936 of the United States in accordance with the separate agreement identified in subdivision (a) of 

937 this Article. 

938 (c) For so long as the O&M of any portion of the Project facilities serving the 

939 Contractor is performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

940 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 

941 Rates for Water Delivered under this Contract representing the cost associated with the activity 

942 being performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

943 Authority, or its successor. 

944 (d) In the event the O&M of the Project facilities operated and maintained by 

945 the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by 

946 the United States during the term of this Contract, the Contracting Officer shall so notify the 

947 Contractor, in writing, and present to the Contractor a revised Exhibit ”B” which shall include 

948 the portion of the Rates to be paid by the Contractor for Project Water under this Contract 

949 representing the O&M costs of the portion of such Project facilities which have been re-
Contract No. 14-06-200-8033A-LTR1 

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950 assumed. The Contractor shall, thereafter, in the absence of written notification from the 

951 Contracting Officer to the contrary, pay the Rates, Charges, and the Tiered Pricing Component 

952 specified in the revised Exhibit ”B” directly to the United States in compliance with Article 7 of 

953 this Contract. 

954 OPERATION AND MAINTENANCE BY CALIFORNIA DEPARTMENT OF WATER 

955 RESOURCES

956 28.1 (a) The O&M of a portion of the Project facilities which serve the Contractor, 

957 and responsibility for funding a portion of the costs of such O&M, have been transferred to the 

958 California Department of Water Resources, an Operating Non-Federal Entity by a separate 

959 agreement (14-06-200-9755) between the United States and Operating Non-Federal Entity 

960 California Department of Water Resources. This separate agreement shall not interfere with or 

961 affect the rights or obligations of the Contractor or the United States hereunder. 

962 (b) The Contracting Officer has previously notified the Contractor in writing 

963 that the O&M of a portion of the Project facilities which serve the Contractor has been 

964 transferred to Operating Non-Federal Entity California Department of Water Resources, and the 

965 Contractor shall pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water 

966 Authority, or to any successor approved by the Contracting Officer under the terms and 

967 conditions of the separate agreement between the United States and Operating Non-Federal 

968 Entity San Luis & Delta-Mendota Water Authority, described in subdivision (a) of Article 28 of 

969 this Contract, all rates, charges, or assessments of any kind, including any assessment for reserve 

970 funds, which Operating Non-Federal Entity California Department of Water Resources, or such 

971 successor determines, sets, or establishes for the O&M of the portion of the Project facilities 
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972 operated and maintained by Operating Non-Federal Entity California Department of Water 

973 Resources, or such successor. Such direct payments to Operating Non-Federal Entity San Luis 

974 & Delta-Mendota Water Authority, or such successor shall not relieve the Contractor of its 

975 obligation to pay directly to the United States the Contractor’s share of the Project Rates, 

976 Charges, and Tiered Pricing Components except to the extent the Operating Non-Federal Entity 

977 collects payments on behalf of the United States in accordance with the separate agreement 

978 identified in subdivision (a) of Article 28 of this Contract. 

979 (c) For so long as the O&M of any portion of the Project facilities serving the 

980 Contractor is performed by Operating Non-Federal Entity California Department of Water 

981 Resources, or any successor thereto, the Contracting Officer shall adjust those components of the 

982 Rates for Water Delivered under this Contract representing the cost associated with the activity 

983 being performed by Operating Non-Federal Entity California Department of Water Resources, or 

984 its successor. 

985 (d) In the event the O&M of the Project facilities operated and maintained by 

986 Operating Non-Federal Entity California Department of Water Resources is re-assumed by the 

987 United States during the term of this Contract, the Contracting Officer shall so notify the 

988 Contractor, in writing, and present to the Contractor a revised Exhibit “B” which shall include 

989 the portion of the Rates, Charges, and the Tiered Pricing Component to be paid by the 

990 Contractor for Project Water under this Contract representing the O&M costs of the portion of 

991 such Project facilities which have been re-assumed. The Contractor shall, thereafter, in the 

992 absence of written notification from the Contracting Officer to the contrary, pay the Rates, 
Contract No. 14-06-200-8033A-LTR1 

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993 Charges, and the Tiered Pricing Component specified in the revised Exhibit “B” directly to the 

994 United States in compliance with Article 7 of this Contract. 

995 OPERATION AND MAINTENANCE BY WESTLANDS WATER DISTRICT

996 28.2 (a) The O&M of a portion of the Project facilities which serve the 

997 Contractor, and responsibility for funding a portion of the costs of such O&M, have been 

998 transferred to the Westlands Water District, the Operating Non-Federal Entity Westlands Water 

999 District by a separate contract (14-06-200-2020A) between the United States and Westlands 

1000 Water District, the Operating Non-Federal Entity Westlands Water District. That above 

1001 referenced contract shall not interfere with or affect the rights or obligations of the Contractor or 

1002 the United States hereunder. 

1003 (b) The Contracting Officer has previously notified the Contractor in writing 

1004 that the O&M of a portion of the Project facilities which serve the Contractor has been 

1005 transferred to the Operating Non-Federal Entity Westlands Water District. Therefore, the 

1006 Contractor has entered into a separate agreement with the Operating Non-Federal Entity 

1007 Westlands Water District providing the terms and conditions pursuant to which the Operating 

1008 Non-Federal Entity Westlands Water District will deliver Project Water to the Contractor 

1009 through the portion of the Project facilities operated and maintained by the Operating Non1010 Federal Entity Westlands Water District, including the amount(s) the Contractor is to pay the 

1011 Operating Non-Federal Entity Westlands Water District for that service. The Contractor shall 

1012 pay directly to the Operating Non-Federal Entity Westlands Water District , or to any successor 

1013 approved by the Contracting Officer, all rates, charges, or assessments of any kind, including 
Contract No. 14-06-200-8033A-LTR1 

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1014 any assessment for reserve funds, described in the separate agreement referred to above or any 

1015 amendatory or replacement agreement approved by the Contracting Officer, which the Operating 

1016 Non-Federal Entity Westlands Water District and or such successor determines, sets, or 

1017 establishes for the Operating Non-Federal Entity Westlands Water District or such successor. 

1018 Such direct payments to the Operating Non-Federal Entity Westlands Water District or such 

1019 successor shall not relieve the Contractor of its obligation to pay directly to the United States the 

1020 Contractor=s share of the Project Rates, Charges, and Tiered Pricing Components referred to in 

1021 this Contract. 

1022 (c) For so long as the O&M of any portion of the Project facilities serving the 

1023 Contractor is performed by the Operating Non-Federal Entity Westlands Water District , or any 

1024 successor thereto, the Contracting Officer shall adjust those components of the Rates for Water 

1025 Delivered under this Contract representing the cost associated with the activity being performed 

1026 by the Operating Non-Federal Entity Westlands Water District or its successor. 

1027 (d) In the event the O&M of the Project facilities operated and maintained by 

1028 the Operating Non-Federal Entity Westlands Water District is re-assumed by the United States 

1029 during the term of this Contract, the Contracting Officer shall so notify the Contractor, in 

1030 writing, and present to the Contractor a revised Exhibit AB@ which shall include the portion of the 

1031 Rates, Charges, and Tiered Pricing Component(s) to be paid by the Contractor for Project Water 

1032 under this Contract representing the O&M costs of the portion of such Project facilities which 

1033 have been re-assumed. The Contractor shall, thereafter, in the absence of written notification 

1034 from the Contracting Officer to the contrary, pay the Rates, Charges, and the Tiered Pricing 
Contract No. 14-06-200-8033A-LTR1 

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1035 Component specified in the revised Exhibit AB@ directly to the United States in compliance with 

1036 Article 7 of this Contract. 

1037 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1038 29. The expenditure or advance of any money or the performance of any obligation of 

1039 the United States under this Contract shall be contingent upon appropriation or allotment of 

1040 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

1041 obligations under this Contract. No liability shall accrue to the United States in case funds are 

1042 not appropriated or allotted. 

1043 BOOKS, RECORDS, AND REPORTS

1044 30. (a) The Contractor shall establish and maintain accounts and other books and 

1045 records pertaining to administration of the terms and conditions of this Contract, including: the 

1046 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1047 agreements; water use data; and other matters that the Contracting Officer may require. Reports 

1048 thereon shall be furnished to the Contracting Officer in such form and on such date or dates as 

1049 the Contracting Officer may require. Subject to applicable Federal laws and regulations, each 

1050 party to this Contract shall have the right during office hours to examine and make copies of the 

1051 other party's books and records relating to matters covered by this Contract. 

1052 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

1053 books, records, or other information shall be requested from the Contractor by the Contracting 

1054 Officer unless such books, records, or information are reasonably related to the administration or 

1055 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1056 time within which to provide the requested books, records, or information. 

1057 (c) At such time as the Contractor provides information to the Contracting 

1058 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided 

1059 to the Operating Non-Federal Entity(ies). 
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1060 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1061 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1062 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1063 therein shall be valid until approved in writing by the Contracting Officer. 

1064 (b) The assignment of any right or interest in this Contract by either party 

1065 shall not interfere with the rights or obligations of the other party to this Contract absent the 

1066 written concurrence of said other party. 

1067 (c) The Contracting Officer shall not unreasonably condition or withhold 

1068 approval of any proposed assignment. 

1069 SEVERABILITY

1070 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

1071 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

1072 an association or other form of organization whose primary function is to represent parties to 

1073 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1074 enforceability of a provision included in this Contract and said person, entity, association, or 

1075 organization obtains a final court decision holding that such provision is legally invalid or 

1076 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

1077 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

1078 final court decision identify by mutual agreement the provisions in this Contract which must be 

1079 revised and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

1080 The time periods specified above may be extended by mutual agreement of the parties. Pending 

1081 the completion of the actions designated above, to the extent it can do so without violating any 
Contract No. 14-06-200-8033A-LTR1 

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1082 applicable provisions of law, the United States shall continue to make the quantities of Project 

1083 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

1084 Contract which were not found to be legally invalid or unenforceable in the final court decision. 

1085 RESOLUTION OF DISPUTES

1086 33. Should any dispute arise concerning any provisions of this Contract, or the 

1087 parties= rights and obligations thereunder, the parties shall meet and confer in an attempt to 

1088 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

1089 Officer referring any matter to Department of Justice, the party shall provide to the other party 

1090 30 days= written notice of the intent to take such action; Provided, That such notice shall not be 

1091 required where a delay in commencing an action would prejudice the interests of the party that 

1092 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

1093 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

1094 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

1095 United States may have. 

1096 OFFICIALS NOT TO BENEFIT

1097 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1098 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1099 manner as other water users or landowners. 

1100 CHANGES IN CONTRACTOR=S SERVICE AREA

1101 35. (a) While this Contract is in effect, no change may be made in the 

1102 Contractor's Service Area by inclusion or exclusion of lands, dissolution, consolidation, merger, 

1103 or otherwise, except upon the Contracting Officer's written consent. 

1104 (b) Within 30 days of receipt of a request for such a change, the Contracting 
Contract No. 14-06-200-8033A-LTR1 

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1105 Officer will notify the Contractor of any additional information required by the Contracting 

1106 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

1107 schedule for timely completion of the process. Such process will analyze whether the proposed 

1108 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

1109 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

1110 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

1111 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

1112 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

1113 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

1114 be paid in accordance with Article 25 of this Contract. 

1115 FEDERAL LAWS

1116 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1117 the validity or application in connection with the performance of the terms and conditions of this 

1118 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1119 the terms and conditions of this Contract unless and until relief from application of such Federal 

1120 law or regulation to the implementing provision of the Contract is granted by a court of 

1121 competent jurisdiction. 

1122 NOTICES

1123 37. Any notice, demand, or request authorized or required by this Contract shall be 

1124 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1125 delivered to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, 

1126 California 97321, and on behalf of the United States, when mailed, postage prepaid, or delivered 

1127 to the California Department of Fish and Game, Office of General Council, 1416 Ninth Street, 

1128 12th Floor, Sacramento, California 95814. The designation of the addressee or the address may 

1129 be changed by notice given in the same manner as provided in this Article for other notices. 

1130 CONFIRMATION OF CONTRACT
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1131 38. The Contractor, after the execution of this Contract, shall furnish to the 

1132 Contracting Officer evidence that pursuant to the law of the State of California, the Contractor is 

1133 a legally constituted entity and the contract is lawful, valid, and binding on the Contractor. This 

1134 contract shall not be binding on the United States until such evidence has been provided to the 

1135 Contracting Officers satisfaction. 

1136 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day 

1137 and year first above written. 

1138 THE UNITED STATES OF AMERICA 

1139 By: ______________________________________ 

1140 Regional Director, Mid-Pacific Region 

1141 Bureau of Reclamation 

1142 (SEAL) 

1143 CALIFORNIA DEPARTMENT OF FISH & 

1144 GAME 

1145 By: ______________________________________ 

1146 Director 

1147 (H:\pub 440\LTRC\Final Draft LTRC’s – Fresno, Tracy\10-22-04 CA Fish and Game Final Draft 

1148 LTRC with exhibits.doc 

Contract No. 14-06-200-8033A-LTR1 

EXHIBIT B

CALIFORNIA DEPARTMENT OF FISH AND GAME

Water Rates and Charges]

 2004 Rates Per Acre-Foot

 M&I Water

COST-OF-SERVICE (COS) RATE:

Capital Rate: $16.81 

 

O&M Rates: 

 Water Marketing $5.01 

 Storage $6.38 

 Conveyance * 

 Direct Pumping (Project Use Energy) 

 Tracy Pumping * 

 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing $9.63 

 

CFO/PFR Adj Rate: ** $1.75 

TOTAL COST-OF-SERVICE RATES (COS): $39.58 

CONTRACT RATE: *** $13.14 

M&I FULL-COST RATE: $49.99 

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**** $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. 

** Rate represents the Chief Financial Officer (CFO) adjustment and Provision for 

 Replacement (PFR) credit for option 2 cost deferment to be distributed over a 

 5-year period beginning with 2003 water rates. 
Contract No. 14-06-200-8033A-LTR1 

*** Water deliveries are to be paid at the contract rate. Contract rate consists of the 

 total O&M rate plus the CFO/PFR adjusted rate component. 

**** 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).