416526.1

Redline of Changes Proposed by Contractors1

Article Language changes

1(o) “Municipal and Industrial (M&I) Water” shall mean water made available from the Project Water, other than 

Irrigation Water, made available to the Contractor. . . .

1(p) “M&I Full Cost Water Rate” shall mean the annual rate, which, as determined by the Contracting Officer, shall 

amortize the expenditures for construction allocable to Project M&I facilities in service, including, O&M deficits 

funded, less payments, over such periods as may be required under Federal Reclamation law with interest accruing from 

the dates such costs were first incurred plus the applicable rate for the O&M of such Project facilities. Interest rates 

used in the calculation of the M&I Full Cost Rate shall comply with the Interest Rate methodology contained in Section 

202 (3) (B) and (C) of the Reclamation Reform Act of October 12, 1982 (96 Stat. 1263), as amended. Any O&M rate 

required under Federal Reclamation law shall be collected in addition to the M&I Full Cost Water Rate;

3(d) The Contractor shall make reasonable and beneficial use of all Project Water or other water furnished pursuant to this 

Contract. Groundwater recharge programs (direct, indirect or in lieu), groundwater banking programs, surface water 

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

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

consistent with Reclamation law will be allowed; Provided, That any direct direct recharge program(s) is (are) 

described in the Contractor’s Water Conservation Plan submitted pursuant to Article 26 of this Contract; Provided, 

further, That such Water Conservation Plan demonstrates sufficient lawful uses exist in the Contractor’s Service Area 

so that using a long-term average, the quantity of Delivered Water is demonstrated to be reasonable for such uses and in 

compliance with Reclamation Law. Groundwater recharge programs, groundwater banking programs, surface water 

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

conducted outside the Contractor’s Service Area may be permitted upon written approval of the Contracting Officer, 

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

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

4(a) On or about February 20 of each Calendar Year, the Contracting Officer shall announce the Contracting Officer’s 

expected declaration of the Water Made Available. The declaration will be updated monthly, and more frequently if 

necessary, based on then-current operational and hydrologic conditions and a new declaration with changes, if any, to 

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

basis of the estimate, with relevant supporting information, upon the written request of the Contractor. Concurrently 

 

1

 Except as noted by italics, these changes were presented by American River Division Contractors and accepted by Reclamation negotiators. Italics indicate 

newly proposed clarifications.
416526.1

with the declaration of the Water Made Available, the Contracting Officer shall provide the Contractor with the updated 

Recent Historic Average. The declaration of Project operations will be expressed in terms of both Water Made 

Available and the Recent Historic Average.

17(b) Water or water rights now owned or hereafter acquired by the Contractor, other than from the United States or adverse 

to the Project or its contractors (i.e. non-Project Water), may be stored, conveyed and/or diverted through Project 

facilities, subject to the completion of appropriate environmental documentation, with the approval of the Contracting 

Officer and the execution of any contract determined by the Contracting Officer to be necessary, consistent with the 

following provisions . . . .

17(b)(3) Neither the United States nor the Operating Non-Federal Entity shall be responsible for control, care or distribution of 

the non-project water before it is introduced into or after it is delivered from the Project facilities. The Contractor 

hereby releases and agrees to defend and indemnify the United States and the Operating Non-Federal Entity, and their 

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

resulting from Contractor’s diversion or extraction of non-project water from any source except for claims for damage 

to persons or property arising out of (i) acts or omissions of the Contracting Officer or its officers, employees, 

agents, or assigns with the intent of creating the situation resulting in any damage or claim; (ii) willful 

misconduct of the Contracting Officer or any of its officers, employees, agents, or assigns; or (iii) sole negligence 

of the Contracting Officer or any of its officers, employees, agents, or assigns..

17(b)(4) Diversion of such non-project water into Project facilities shall be consistent with all applicable laws, and if involving 

groundwater, consistent with any groundwater management plan applicable to the Contractor for the area from which 

it was extracted.

17(b)(5) After Project purposes are met, as determined by the Contracting Officer, the United States and the all Project 

Contractors shall have equal share priority to utilize the remaining capacity of the facilities declared to be available by 

the Contracting Officer for conveyance and transportation of non-project water prior to any such remaining capacity 

being made available to non-project contractors.

19(d) Without limiting the contractual obligations of the Contracting Officer hereunder, n Nothing in this Contract shall be 

construed to limit or constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 

Contractor or other interested stakeholders or to make decisions in a timely fashion as needed to protect health, safety, 

or physical integrity of structures or facilities. Nothing in this Article shall be construed to limit , or the Contracting 

Officer’s ability to comply with applicable laws.

26(e) If the Contractor is engaged in direct direct groundwater recharge, such activity shall be described in the Contractor’s 

water conservation plan. Such Water Conservation Plan shall demonstrate sufficient lawful uses exist in the 

Contractor’s Service Area so that using a long term av× ̧1ye, the quantity of Delivered Water is demonstrated to 

be reasonable for such uses and in compliance with Reclamation law.
416526.1