M&I Only 

R. O. CVP-Wide Draft 4/19-2004 

Centerville CSD Draft 3/01-2004 

Centerville CSD Draft 7/22-2003 

Centerville CSD Draft 6/16/2003 

Sac.Valley Division Draft 5/28-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

14-06-200-3367X-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

AND

CENTERVILLE COMMUNITY SERVICES DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM THE TRINITY RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals ............................................................................................ 2-4 

 1 Definitions............................................................................................................ 4-7 

 2 Term of Contract.................................................................................................. 7-9 

 3 Water to be Made Available and Delivered to the Contractor........................... 9-12 

 4 Time for Delivery of Water ............................................................................. 12-13 

 5 Point of Diversion and Responsibility for Distribution of Water.................... 13-14 

 6 Measurement of Water Within the Contractor’s Service Area........................ 14-15 

 7 Rates and Method of Payment for Water......................................................... 15-20 

 8 Non-Interest Bearing Operation and Maintenance Deficits...................................21 

 9 Sales, Transfers, or Exchanges of Water ......................................................... 21-22 

 10 Application of Payments and Adjustments...................................................... 22-23 

 11 Temporary Reductions--Return Flows ............................................................ 23-24 

 12 Constraints on the Availability of Water ......................................................... 24-25 

 13 Unavoidable Groundwater Percolation..................................................................25 

 14 Rules and Regulations............................................................................................25 

 15 Water and Air Pollution Control............................................................................25 

 16 Quality of Water ....................................................................................................25 

 17 Water Acquired by the Contractor Other Than From the United States.......... 26-27 

 18 Opinions and Determinations ................................................................................27 

 19 Coordination and Cooperation......................................................................... 28-29 

 20 Charges for Delinquent Payments ................................................................... 29-30 
Contract No. 14-06-200-3367X-LTR1 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity............................................................................................ 30-31 

 22 General Obligation--Benefits Conditioned Upon Payment ...................................31 

 23 Compliance With Civil Rights Laws and Regulations .................................... 31-32 

 24 Privacy Act Compliance ........................................................................................32 

 25 Contractor to Pay Certain Miscellaneous Costs.....................................................32 

 26 Water Conservation ......................................................................................... 32-33 

 27 Existing or Acquired Water or Water Rights.........................................................34 

 28 Operation and Maintenance by Operating Non-Federal Entity ....................... 34-35 

 29 Contingent on Appropriation or Allotment of Funds ............................................35 

 30 Books, Records, and Reports........................................................................... 35-36 

 31 Assignment Limited--Successors and Assigns Obligated .....................................36 

 32 Severability ...................................................................................................... 36-37 

 33 Resolution of Disputes...........................................................................................37 

 34 Officials Not to Benefit..........................................................................................37 

 35 Changes in Contractor’s Service Area............................................................. 37-38 

 36 Federal Laws..........................................................................................................38 

 37 Notices ...................................................................................................................38 

 38 Confirmation of Contract.......................................................................................39 

 Signature Page .......................................................................................................39 

 

 Exhibit A - Map of Contractor’s Service Area 

 

 Exhibit B - Rates and Charges 

 
M&I Only 

R. O. CVP-Wide Draft 4/19-2004 

Centerville CSD Draft 3/01-2004 

Centerville CSD Draft 7/22-2003 

Centerville CSD Draft 7/18-2003 

Centerville CSD Draft 6/16-2003 

Sac.Valley Division Draft 5/28-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

14-06-2000-3367X-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

6 AND

7 CENTERVILLE COMMUNITY SERVICES DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE TRINITY RIVER DIVISION

10 

11 THIS CONTRACT, made this _____ day of ____________________, 20___, in 

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

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

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

15 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 

16 (100 Stat. 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all 

17 collectively hereinafter referred to as Federal Reclamation law, between THE UNITED STATES 

18 OF AMERICA, hereinafter referred to as the United States, and CENTERVILLE COMMUNITY 

19 SERVICES DISTRICT, hereinafter referred to as the Contractor, a public agency of the State of 

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

21 WITNESSETH, That:
Contract No. 14-06-200-3367X-LTR1 

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22 EXPLANATORY RECITALS

 [1st 23 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

25 flood control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection and 

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

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

28 San Joaquin River and their tributaries; and 

 [2nd 29 ] WHEREAS, the United States constructed the Clear Creek South Unit facilities, 

30 including the Muletown Conduit, which will be used in part for the furnishing of water to the 

31 Contractor pursuant to the terms of this Contract; and 

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

33 to California law for operation of the Project; and 

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

35 No. 14-06-200-3367X, which established terms for the delivery to the Contractor of Project Water 

36 from the Muletown Conduit through December 31, 2004, hereinafter referred to as the “Existing 

37 Contract”; and 

 [5th 38 ] WHEREAS, the United States and the Contractor have, pursuant to subsection 

39 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into a 

40 binding agreement identified as Binding Agreement No. 14-06-200-3367A-BA, which sets out the 

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

42 date after completion of a programmatic environmental impact statement and other appropriate 

43 environmental documentation and negotiation of a renewal contract, and which also sets out the 

44 consequences of a subsequent decision not to renew; and 

 [6th 45 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

47 programmatic environmental impact statement (PEIS) pursuant to the National Environmental 
Contract No. 14-06-200-3367X-LTR1 

3

48 Policy Act (NEPA), analyzing the direct and indirect impacts and benefits of implementing the 

49 CVPIA and the potential renewal of all existing contracts for Project Water; and 

 [7th 50 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 52 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 55 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

56 its obligations under the Existing Contract; and 

 [10th 57 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

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

59 beneficial use and/or has demonstrated projected future demand for water use such that the 

60 Contractor has the capability and expects to utilize fully for reasonable and beneficial use the 

61 quantity of Project Water to be made available to it pursuant to this Contract; and 

 [11th 62 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

64 an essential portion of its water supply; and 

 [12th 65 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

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

67 [12.1] WHEREAS, the Contractor has made and will continue to make substantial capital 

68 investments in diversion and treatment facilities, and requires a consistent, predictable quality of 

69 raw water in order to meet Safe Drinking Water Act requirements for its municipal customers, and 

70 to provide a consistent and predictable quality of water for its industrial customers; and 

 [13th 71 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

72 partnerships to pursue measures to improve water supply, water quality, and reliability of the 

73 Project for all Project purposes; and 
Contract No. 14-06-200-3367X-LTR1 

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74 [13.1] WHEREAS, the Contractor is located in the region of the Redding Groundwater 

75 Basin, and it is the desire of both the United States and the Contractor to facilitate the cooperative 

76 efforts of local water service agencies to develop the Redding Groundwater Basin for conjunctive 

77 management and use with Project Water supplies, to maximize the reasonable beneficial use of 

78 water for the water service agencies and their customers in the region; and 

 [14th 79 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

84 relative to the Project; and 

 [15th 85 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

86 relationship in order to achieve their mutual goals; and 

 [16th 87 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

91 DEFINITIONS

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

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

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

95 dates inclusive; 

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

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

98 annually by the Contracting Officer pursuant to this Contract; 
Contract No. 14-06-200-3367X-LTR1 

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

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

101 Total; 

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

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

104 regulation; 

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

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

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

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

109 hereto, which may be modified from time to time in accordance with Article 35 of this Contract 

110 without amendment of this Contract; 

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

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

113 (h) Omitted; 

114 (i) Omitted; 

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

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

117 irrigation or M&I functions, as appropriate, of facilities in service including all O&M deficits 

118 funded, less payments, over such periods as may be required under Federal Reclamation law, or 

119 applicable contract provisions. Interest will accrue on both the construction expenditures and 

120 funded O&M deficits from October 12, 1982, on costs outstanding at that date, or from the date 

121 incurred in the case of costs arising subsequent to October 12, 1982, and shall be calculated in 

122 accordance with subsections 202(3)(B) and (3)(C) of the Reclamation Reform Act of October 12, 

123 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA. The Full Cost Rate includes 

124 actual operation, maintenance, and replacement costs consistent with Section 426.2 of the Rules and 

125 Regulations for the RRA; 
Contract No. 14-06-200-3367X-LTR1 

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126 (k) Omitted; 

127 (l) Omitted; 

128 (m) Omitted; 

129 (n) Omitted; 

130 (o) “Municipal and Industrial (M&I) Water” shall mean Project Water made 

131 available to the Contractor for purposes other than the commercial production of agricultural crops 

132 or livestock; 

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

134 delivery of M&I Water; 

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

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

137 Project facilities; 

138 (r) “Operating Non-Federal Entity" shall mean the Clear Creek Community 

139 Services District, its successors or assigns, a non-Federal entity which has the obligation to operate 

140 and maintain all or a portion of the Clear Creek South Unit facilities pursuant to an agreement with 

141 the United States, and which may have funding obligations with respect thereto; 

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

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

144 (t) “Project Contractors” shall mean all parties who have water service contracts 

145 for Project Water from the Project with the United States pursuant to Federal Reclamation law; 

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

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

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

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

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

151 described in subdivision (a) of Article 7 of this Contract; 
Contract No. 14-06-200-3367X-LTR1 

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

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

154 preceding contract(s); 

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

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

157 through any agency of the Department of the Interior; 

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

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

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

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

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

163 that can be delivered to the Contractor for the upcoming Year as declared by the Contracting 

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

165 (bb) “Water Scheduled” shall mean Project Water made available to the 

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

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

168 (cc) “Year” shall mean the period from and including March 1 of each Calendar 

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

170 TERM OF CONTRACT 

171 2. (a) This Contract shall be effective March 1, 20___, through February 28, 

172 20___, and supercedes the Existing Contract. In the event the Contractor wishes to renew this 

173 Contract beyond February 28, 20___, the Contractor shall submit a request for renewal in writing to 

174 the Contracting Officer no later than two years prior to the date this Contract expires. 

175 (b) Omitted. 

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

177 which periods shall be consistent with then-existing Reclamation-wide policy, under terms and 

178 conditions mutually agreeable to the parties and consistent with Federal and State law. The 
Contract No. 14-06-200-3367X-LTR1 

8

179 Contractor shall be afforded the opportunity to comment to the Contracting Officer on the proposed 

180 adoption and application of any revised policy applicable to the delivery of M&I Water that would 

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

182 Water to less than 40 years. 

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

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

185 whether a conversion to a contract under subsection 9(c)(l) of Section 9 of the Reclamation Project 

186 Act of 1939 can be accomplished. The Contracting Officer anticipates that during the term of this 

187 Contract, all authorized Project construction expected to occur will have occurred, and on that basis 

188 the Contracting Officer agrees upon such completion to allocate all costs that are properly 

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

190 subject to satisfaction of the condition set out in this subdivision, this Contract shall, at the request 

191 of the Contractor, be converted to a contract under said subsection 9(c)(1), of the Reclamation 

192 Project Act of 1939, subject to applicable Federal law and under stated terms and conditions 

193 mutually agreeable to the Contractor and the Contracting Officer. A condition for such conversion 

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

195 credited to return by the Contractor as provided for under Federal Reclamation law, the remaining 

196 amount of construction costs assignable for ultimate return by the Contractor can probably be repaid 

197 to the United States within the term of a contract under said subsection 9(c)(1). If the remaining 

198 amount of costs that are properly assignable to the Contractor cannot be determined during the term 

199 of this Contract, the Contracting Officer shall notify the Contractor, and provide the reason(s) why 

200 such a determination could not be made. Further, the Contracting Officer shall make such a 

201 determination as soon thereafter as possible so as to permit, upon request of the Contractor and 

202 satisfaction of the condition set out above, conversion to a contract under said subsection 9(c)(1). 
Contract No. 14-06-200-3367X-LTR1 

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203 In the event such determination of costs has not been made at a time which allows conversion of 

204 this Contract during the term of this Contract or the Contractor has not requested conversion of this 

205 Contract within such term, the parties shall incorporate in any subsequent renewal contract as 

206 described in subdivision (b) of this Article a provision that carries forth in substantially identical 

207 terms the provisions of this subdivision. 

208 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

211 Contract, the Contracting Officer shall make available for delivery to the Contractor 2,900 acre-feet 

212 of Project Water for M&I purposes. Water Delivered to the Contractor in accordance with this 

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

214 Contract. 

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

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

217 hydrologic conditions and implementation of Federal and State laws, the likelihood of the 

218 Contractor actually receiving the amount of Project Water set out in subdivision (a) of this Article 

219 in any given Year is uncertain. The Contracting Officer’s modeling referenced in the PEIS 

220 projected that the Contract Total set forth in this Contract will not be available to the Contractor in 

221 many years. During the most recent five years, the Recent Historic Average of water made 

222 available to the Contractor was 2,668 acre-feet. Nothing in subdivision (b) of this Article shall 

223 affect the rights and obligations of the parties under any provision of this Contract. 

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

225 applicable legal requirements. 

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

227 furnished pursuant to this Contract. Ground-water recharge programs (direct, indirect, or in lieu), 

228 ground-water banking programs, surface water storage programs, and other similar programs 
Contract No. 14-06-200-3367X-LTR1 

10

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

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

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

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

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

234 sufficient lawful uses exist in the Contractor’s Service Area so that using a long-term average, the 

235 quantity of Delivered Water is demonstrated to be reasonable for such uses and in compliance with 

236 Federal Reclamation law. Ground-water recharge programs, water banking programs, surface water 

237 storage programs, and other similar programs utilizing Project Water or other water furnished 

238 pursuant to this Contract conducted outside the Contractor’s Service Area may be permitted upon 

239 written approval of the Contracting Officer, which approval will be based upon environmental 

240 documentation, Project Water rights, and Project operational concerns. The Contracting Officer 

241 will address such concerns in regulations, policies, or guidelines. 

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

243 in biological opinion(s) prepared as a result of a consultation regarding the execution of this 

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

245 amended, that are within the Contractor’s legal authority to implement. The Existing Contract, 

246 which evidences in excess of 37 years of diversions for M&I purposes of the quantities of water 

247 provided in subdivision (a) of Article 3 of this Contract, will be considered in developing an 

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

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

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

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

252 (f) As soon as possible following each declaration of Water Made Available 

253 under Article 4 of this Contract, the Contracting Officer will make a determination whether Project 

254 Water, or other water available to the Project, can be made available to the Contractor in addition to 

255 the Contract Total under Article 3 of this Contract during the Year without adversely impacting 
Contract No. 14-06-200-3367X-LTR1 

11

256 other Project Contractors. At the request of the Contractor, the Contracting Officer will consult 

257 with the Contractor prior to making such a determination. If the Contracting Officer determines 

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

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

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

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

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

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

264 applicable statutes, regulations, guidelines, and policies. 

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

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

267 referred to as “carryover.” The Contractor may request permission to use during the current Year a 

268 quantity of Project Water which may be made available by the United States to the Contractor 

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

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

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

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

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

274 during the terms thereof shall not be disturbed so long as the Contractor shall fulfill all of its 

275 obligations under this Contract and any renewals thereof. Nothing in the preceding sentence shall 

276 affect the Contracting Officer’s ability to impose shortages under Article 11 or subdivision (b) of 

277 Article 12 of this Contract or applicable provisions of any subsequent renewal contracts. 

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

279 delivered for other than M&I purposes upon written approval by the Contracting Officer in 

280 accordance with the terms and conditions of such approval. 

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

282 rights necessary for the Project and to provide the water available under this Contract. The 
Contract No. 14-06-200-3367X-LTR1 

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

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

285 That the Contracting Officer retains the right to object to the substance of the Contractor’s position 

286 in such a proceeding; Provided further, That in such proceedings the Contracting Officer shall 

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

288 TIME FOR DELIVERY OF WATER

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

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

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

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

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

294 Made Available will be made. The Contracting Officer shall provide forecasts of Project operations 

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

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

297 Officer shall provide the Contractor with the updated Recent Historic Average. 

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

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

300 Officer, showing the monthly quantities of Project Water to be delivered by the United States to the 

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

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

303 for the Year commencing on such March 1. 

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

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

306 Service Area or to sell, transfer, or exchange pursuant to Article 9 of this Contract during any Year. 

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

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

309 initial schedule submitted by the Contractor pursuant to subdivision (b) of this Article, or any 
Contract No. 14-06-200-3367X-LTR1 

13

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

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

312 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

314 Contract shall be delivered to the Contractor at Station 376+50 of the Muletown Conduit and any 

315 additional point or points of delivery either on Project facilities or another location or locations 

316 mutually agreed to in writing by the Contracting Officer and the Contractor. 

317 (b) The Contracting Officer, the Operating Non-Federal Entity, or other 

318 appropriate entity as designated by the Contracting Officer (hereinafter referred to as the “Other 

319 Appropriate Entity”) shall make all reasonable efforts to maintain sufficient flows and levels of 

320 water in the Muletown Conduit to deliver Project Water to the Contractor at specific turnouts 

321 established pursuant to subdivision (a) of this Article. 

322 (c) Omitted. 

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

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

325 States or the Operating Non-Federal Entity at the point or points of delivery established pursuant to 

326 subdivision (a) of this Article. Upon the request of either party to this Contract, the Contracting 

327 Officer shall investigate, or cause to be investigated by the responsible Operating Non-Federal 

328 Entity, the accuracy of such measurements and shall take any necessary steps to adjust any errors 

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

330 Contracting Officer shall consult with the Contractor and the responsible Operating Non-Federal 

331 Entity prior to making a final determination of the quantity delivered for that period of time. 

332 (e) Neither the Contracting Officer nor any Operating Non-Federal Entity shall 

333 be responsible for the control, carriage, handling, use, disposal, or distribution of Water Delivered 

334 to the Contractor pursuant to this Contract beyond the delivery points specified in subdivision (a) of 

335 this Article. The Contractor shall indemnify the United States, its officers, employees, agents, and 

336 assigns on account of damage or claim of damage of any nature whatsoever for which there is legal 
Contract No. 14-06-200-3367X-LTR1 

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

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

339 delivery points, except for any damage or claim arising out of (i) acts or omissions of the 

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

341 Non-Federal Entity, with the intent of creating the situation resulting in any damage or claim, (ii) 

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

343 including the Operating Non-Federal Entity, (iii) negligence of the Contracting Officer or any of its 

344 officers, employees, agents, or assigns including the Operating Non-Federal Entity, or (iv) damage 

345 or claims resulting from a malfunction of facilities owned and/or operated by the United States or 

346 responsible Operating Non-Federal Entity. 

347 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

349 Contracting Officer. The Contractor shall ensure that all surface water delivered for M&I purposes 

350 is measured at each M&I service connection. The water measuring devices or water measuring 

351 methods of comparable effectiveness must be acceptable to the Contracting Officer. The Contractor 

352 shall be responsible for installing, operating, and maintaining and repairing all such measuring 

353 devices and implementing all such water measuring methods at no cost to the United States. The 

354 Contractor shall use the information obtained from such water measuring devices or water 

355 measuring methods to ensure its proper management of the water, to bill water users for water 

356 delivered by the Contractor; and, if applicable, to record water delivered for M&I purposes by 

357 customer class as defined in the Contractor’s water conservation plan provided for in Article 26 of 

358 this Contract. Nothing herein contained, however, shall preclude the Contractor from establishing 

359 and collecting any charges, assessments, or other revenues authorized by California law. The 

360 Contractor shall include a summary of all its annual surface water deliveries in the annual report 

361 described in subdivision (c) of Article 26. 

362 (b) To the extent the information has not otherwise been provided, upon 

363 execution of this Contract, the Contractor shall provide to the Contracting Officer a written report 
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364 describing the measurement devices or water measuring methods being used or to be used to 

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

366 measurement programs approved by the Contracting Officer, at which such measurement devices or 

367 water measuring methods are being used, and, if applicable, identifying the locations at which such 

368 devices and/or methods are not yet being used including a time schedule for implementation at such 

369 locations. The Contracting Officer shall advise the Contractor in writing within 60 days as to the 

370 adequacy and necessary modifications, if any, of the measuring devices or water measuring 

371 methods identified in the Contractor’s report and if the Contracting Officer does not respond in such 

372 time, they shall be deemed adequate. If the Contracting Officer notifies the Contractor that the 

373 measuring devices or methods are inadequate, the parties shall within 60 days following the 

374 Contracting Officer‘s response, negotiate in good faith the earliest practicable date by which the 

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

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

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

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

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

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

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

382 within the Contractor’s Service Area during the previous Year. 

383 (e) The Contractor shall inform the Contracting Officer and the Operating NonFederal Entity on or before the 10th 384 calendar day of each month of the quantity of M&I Water taken 

385 during the preceding month. 

386 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

390 shall be amended, modified, or superceded only through a public notice and comment procedure; 
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391 (ii) applicable Federal Reclamation law and associated rules and regulations, or policies; and (iii) 

392 other applicable provisions of this Contract. Payments shall be made by cash transaction, electronic 

393 funds transfer, or any other mechanism as may be agreed to in writing by the Contractor and the 

394 Contracting Officer. The Rates, Charges, and Tiered Pricing Component applicable to the 

395 Contractor upon execution of this Contract are set forth in Exhibit “B,” as may be revised annually. 

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

397 Tiered Pricing Component as follows: 

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

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

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

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

402 review and comment on such estimates. On or before September 15 of each Calendar Year, the 

403 Contracting Officer shall notify the Contractor in writing of the Charges to be in effect during the 

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

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

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

407 shall make available to the Contractor an estimate of the Rates and Tiered Pricing Component for 

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

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

410 on such computations and cost allocations. By December 31 of each Calendar Year, the 

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

412 to be in effect for the upcoming Year, and such notification shall revise Exhibit “B.” 

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

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

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

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

417 delivered pursuant to this Contract during the first two calendar months of the Year. Before the end 
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418 of the first month and before the end of each calendar month thereafter, the Contractor shall make 

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

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

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

422 due for Water Delivered shall be made before the end of the following month; Provided, That any 

423 revised schedule submitted by the Contractor pursuant to Article 4 of this Contract which increases 

424 the amount of Water Delivered pursuant to this Contract during any month shall be accompanied 

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

426 delivered to the Contractor in advance of such payment. In any month in which the quantity of 

427 Water Delivered to the Contractor pursuant to this Contract equals the quantity of Water Scheduled 

428 and paid for by the Contractor, no additional Project Water shall be delivered to the Contractor 

429 unless and until an advance payment at the Rates then in effect for such additional Project Water is 

430 made. Final adjustment between the advance payments for the Water Scheduled and payments for 

431 the quantities of Water Delivered during each Year pursuant to this Contract shall be made as soon 

432 as practicable, but no later than April 30th of the following Year, or 60 days after the delivery of 

433 Project Water carried over under subdivision (g) of Article 3 of this Contract if such water is not 

434 delivered by the last day of February. 

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

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

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

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

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

440 with the quantities of M&I Water Delivered as shown in the water delivery report for the subject 

441 month prepared by the Operating Non-Federal Entity/Entities or by the Contracting Officer. The 

442 water delivery report shall be deemed a bill for the payment of Charges and the applicable Tiered 

443 Pricing Component for Water Delivered. Adjustment for overpayment or underpayment of Charges 

444 shall be made through the adjustment of payments due to the United States for Charges for the next 
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445 month. Any amount to be paid for past due payment of Charges and the Tiered Pricing Component 

446 shall be computed pursuant to Article 20 of this Contract. 

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

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

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

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

451 be no more than the otherwise applicable Rate for M&I Water under subdivision (a) of this Article. 

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

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

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

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

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

457 regulations, and the then-current Project ratesetting policy for M&I Water. 

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

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

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

461 Contracting Officer shall, each Year upon request of the Contractor, provide to the Contractor a 

462 detailed accounting of all Project and Contractor expense allocations, the disposition of all Project 

463 and Contractor revenues, and a summary of all water delivery information. The Contracting Officer 

464 and the Contractor shall enter into good faith negotiations to resolve any discrepancies or disputes 

465 relating to accountings, reports, or information. 

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

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

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

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

470 mutual best interest of the parties, it is expressly agreed that the parties may enter into agreements 
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471 to modify the mechanisms, policies, and procedures for any of those purposes while this Contract is 

472 in effect without amending this Contract. 

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

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

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

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

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

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

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

480 for the amount of Water Delivered which exceeds 90 percent of the Contract Total shall equal the 

481 difference between (i) the Rate established under subdivision (a) of this Article and (ii) the M&I 

482 Full Cost Water Rate. 

483 (2) Omitted. 

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

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

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

487 shall it include the additional water provided to the Contractor under the provisions of subdivision 

488 (f) of Article 3 of this Contract. 

489 (k) For the term of this Contract, Rates under the respective ratesetting policies 

490 will be established to recover only reimbursable O&M (including any deficits) and capital costs of 

491 the Project, as those terms are used in the then-current Project ratesetting policies, and interest, 

492 where appropriate, except in instances where a minimum Rate is applicable in accordance with the 

493 relevant Project ratesetting policy. Changes of significance in practices which implement the 

494 Contracting Officer’s ratesetting policies will not be implemented until the Contracting Officer has 

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

496 change. 
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497 (l) Except as provided in subsections 3405(a)(1)(B) and 3405(f) of the CVPIA, 

498 the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates adjusted 

499 adjusted or downward to reflect the changed costs, if any, incurred by the Contracting Officer in the 

500 delivery of the transferred Project Water to the transferee’s point of delivery in accordance with the 

501 then applicable Project ratesetting policy. If the Contractor is receiving lower Rates and Charges 

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

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

504 shall be the Contractor’s Rates and Charges and will not be adjusted to reflect the Contractor’s 

505 inability to pay. 

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

507 Officer is authorized to adjust determinations of ability to pay every five years. 

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

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

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

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

512 disputed issues. Notwithstanding the execution of this Contract, and payments made hereunder, the 

513 Contractor may challenge in the appropriate administrative or judicial forums: (1) the existence, 

514 computation, or imposition of any deficit charges accruing during the term of the Existing Contract 

515 and any preceding interim renewal contracts, if applicable; (2) interest accruing on any such 

516 deficits; (3) the inclusion of any such deficit charges or interest in the Rates; (4) the application by 

517 the United States of payments made by the Contractor under its Existing Contract and any 

518 preceding interim renewal contracts, if applicable; and (5) the application of such payments in the 

519 Rates. The Contracting Officer agrees that the Contractor shall be entitled to the benefit of any 

520 administrative or judicial ruling in favor of any Project M&I contractor on any of these issues, and 

521 credits for payments heretofore made, Provided, That the basis for such ruling is applicable to the 

522 Contractor. 
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523 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

526 liability therefor. 

527 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

536 include, as appropriate, an analysis of ground-water impacts and economic and social effects, 

537 including environmental justice, of the proposed water transfers on both the transferor and 

538 transferee. 

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

540 of the type historically carried out among Project Contractors located within the same geographical 

541 area and to allow the Contractor to participate in an accelerated water transfer program during the 

542 term of this Contract, the Contracting Officer shall prepare, as appropriate, all necessary 

543 environmental documentation including, but not limited to, documents prepared pursuant to NEPA 

544 and ESA, analyzing annual transfers within such geographical areas, and the Contracting Officer 

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

546 the environmental documentation, such transfers addressed in such documentation shall be 

547 conducted with advance notice to the Contracting Officer, but shall not require prior written 

548 approval by the Contracting Officer. Such environmental documentation and the Contracting 

549 Officer’s compliance determination shall be reviewed every five years and updated, as necessary, 
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550 prior to the expiration of the then-existing five-year period. All subsequent environmental 

551 documentation shall include an alternative to evaluate not less than the quantity of Project Water 

552 historically transferred within the same geographical area. 

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

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

555 for M&I use, ground-water recharge, water banking, similar groundwater activities, surface water 

556 storage, or fish and wildlife resources; not lead to land conversion; and be delivered to established 

557 cropland, wildlife refuges, ground-water basins or M&I use; (ii) occur within a single Year; (iii) 

558 occur between a willing seller and a willing buyer; (iv) convey water through existing facilities with 

559 no new construction or modifications to facilities and be between existing Project Contractors 

560 and/or the Contractor and the United States, Department of the Interior; and (v) comply with all 

561 applicable Federal, State, and local or tribal laws and requirements imposed for protection of the 

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

563 (d) For the purpose of determining whether Section 3405(a)(1)(M) of the CVPIA 

564 applies to the Contractor as a transferor or transferee of Project Water, the Contracting Officer 

565 acknowledges that the Contractor is within a county, watershed, or other area of origin, as those 

566 terms are utilized under California law, of water that constitutes the natural flow of the Sacramento 

567 River and its tributaries above the confluence of the American and Sacramento Rivers. 

568 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

571 the Contractor arising out of this Contract then due and payable. Overpayments of more than 

572 $1,000 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such 

573 overpayment, at the option of the Contractor, may be credited against amounts to become due to the 

574 United States by the Contractor. With respect to overpayment, such refund or adjustment shall 

575 constitute the sole remedy of the Contractor or anyone having or claiming to have the right to the 

576 use of any of the Project Water supply provided for herein. All credits and refunds of overpayments 
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577 shall be made within 30 days of the Contracting Officer obtaining direction as to how to credit or 

578 refund such overpayment in response to the notice to the Contractor that it has finalized the 

579 accounts for the Year in which the overpayment was made. 

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

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

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

583 be refunded to the Contractor. If the actual costs exceed the Contractor's advances, the Contractor 

584 will be billed for the additional costs pursuant to Article 25. 

585 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

590 Contract. 

591 (b) The Contracting Officer or Operating Non-Federal Entity/Entities may 

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

593 provided for the purposes of investigation, inspection, maintenance, repair, or replacement of any of 

594 the Project facilities or any part thereof necessary for the delivery of Project Water to the 

595 Contractor, but so far as feasible the Contracting Officer or Operating Non-Federal Entity will give 

596 the Contractor due notice in advance of such temporary discontinuance or reduction, except in case 

597 of emergency, in which case no notice need be given; Provided, That the United States shall use its 

598 best efforts to avoid any discontinuance or reduction in such service. Upon resumption of service 

599 after such reduction or discontinuance, and if requested by the Contractor, the United States will, if 

600 possible, deliver the quantity of Project Water which would have been delivered hereunder in the 

601 absence of such discontinuance or reduction. 

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

603 derived from Water Delivered to the Contractor hereunder which escapes or is discharged beyond 
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604 the Contractor's Service Area; Provided, That this shall not be construed as claiming for the United 

605 States any right to seepage or return flow being put to reasonable and beneficial use pursuant to this 

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

607 under the Contractor. 

608 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

613 determination as soon as practicable. 

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

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

616 taken by the Contracting Officer to meet legal obligations then, except as provided in subdivision 

617 (a) of Article 18 of this Contract, no liability shall accrue against the United States or any of its 

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

619 (c) Omitted. 

620 (d) Project Water furnished under this long-term renewal contract will be 

621 allocated in accordance with the then-existing Project M&I Water Shortage Policy. Such policy 

622 shall be amended, modified, or superceded only through a public notice and comment procedure. 

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

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

625 (i) the sufficiency of the manner in which any Project M&I Water Shortage Policy adopted after the 

626 effective date of this Contract was promulgated; (ii) the substance of such a policy; or (iii) the 

627 applicability of such a policy. By agreeing to the foregoing, the Contracting Officer does not waive 

628 any legal defenses or remedies that it may then have to assert in such a proceeding. 
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629 UNAVOIDABLE GROUNDWATER PERCOLATION

630 13. Omitted. 

631 RULES AND REGULATIONS

632 14. The parties agree that the delivery of Project Water or use of Federal facilities 

633 pursuant to this Contract is subject to Federal Reclamation law, as amended and supplemented, and 

634 the rules and regulations promulgated by the Secretary of the Interior under Federal Reclamation 

635 law. 

636 WATER AND AIR POLLUTION CONTROL

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

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

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

640 QUALITY OF WATER

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

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

643 to the Contractor in accordance with the water quality standards specified in subsection 2(b) of the 

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

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

646 furnish water treatment facilities to maintain or to improve the quality of Water Delivered to the 

647 Contractor pursuant to this Contract. The United States does not warrant the quality of Water 

648 Delivered to the Contractor pursuant to this Contract. 

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

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

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

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

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

654 facilities or Project Water provided by the Contractor within the Contractor's Service Area. 
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655 WATER ACQUIRED BY THE CONTRACTOR

656 OTHER THAN FROM THE UNITED STATES

657 17. (a) Omitted. 

658 (b) Except as provided in Contract Nos. 00-WC-20-1719-A and 

659 00-WC-20-1708, water or water rights now owned or hereafter acquired by the Contractor, other 

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

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

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

663 necessary, consistent with the following provisions: 

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

665 and deliver said water to lands within the Contractor’s Service Area subject to payment to the 

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

667 determined by the applicable Project ratesetting policy, the RRA, and the Project use power policy, 

668 if such Project use power policy is applicable, each as amended, modified, or superceded from time 

669 to time. 

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

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

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

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

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

675 (3) Neither the United States nor the Operating Non-Federal Entity shall 

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

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

678 defend and indemnify the United States and the Operating Non-Federal Entity, and their respective 

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

680 indirect, resulting from the acts of the Contractor, its officers’, employees’, agents’ or assigns’, 
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681 act(s) in (i) extracting or diverting non-Project water from any source, or (ii) diverting such non682 Project water into Project facilities. 

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

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

685 ground-water management plan for the area from which it was extracted. 

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

687 Officer, the United States and the Contractor shall share priority to utilize the remaining capacity of 

688 the facilities declared to be available by the Contracting Officer for conveyance and transportation 

689 of non-Project water prior to any such remaining capacity being made available to non-Project 

690 contractors. 

691 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

698 provided in a timely manner. Nothing in subdivision (a) of Article 18 of this Contract is intended to 

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

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

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

702 necessary to administer this Contract that are consistent with the provisions of this Contract, the 

703 laws of the United States and of the State of California, and the rules and regulations promulgated 

704 by the Secretary of the Interior. Such determinations shall be made in consultation with the 

705 Contractor to the extent reasonably practicable. 
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706 COORDINATION AND COOPERATION

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

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

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

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

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

712 Project Water supply, the allocation of Project Water supply, and Project financial matters 

713 including, but not limited to, budget issues. The communication, coordination, and cooperation 

714 provided for hereunder shall extend to all provisions of this Contract. Each party shall retain 

715 exclusive decision making authority for all actions, opinions, and determinations to be made by the 

716 respective party. 

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

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

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

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

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

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

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

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

725 intent: 

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

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

728 Contracting Officer will, as appropriate, seek authorizations for implementation of partnerships to 

729 improve water supply, water quality, and reliability. 

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

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

732 supply, water quality, and reliability of the Project for all Project purposes. 
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733 (3) The Secretary will coordinate with Project Contractors and the State 

734 of California to seek improved water resource management. 

735 (3.1) The Secretary and the Contractor desire to work together to maximize 

736 the reasonable beneficial use of water for their mutual benefit. As a consequence, the Secretary and 

737 the Contractor will work in partnership and with others in the region of the Redding Groundwater 

738 Basin, including other Contractors in the Shasta and Trinity Divisions of the Project, to facilitate the 

739 better integration with the region of the Redding Groundwater Basin of all water supplies including, 

740 but not limited to, the better management and integration of surface water and groundwater, 

741 transfers and exchanges of water, the development and better utilization of surface water storage, 

742 the effective utilization of waste, seepage and return flow water, and other operational and 

743 management options that may be identified in the future. 

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

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

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

747 hold division level meetings to discuss Project operations, division level water management 

748 activities, and other issues as appropriate. 

749 (d) Without limiting the contractual obligations of the Contracting Officer under 

750 the other Articles of this Contract nothing in this Article shall be construed to limit or constrain the 

751 Contracting Officer’s ability to communicate, coordinate, and cooperate with the Contractor or 

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

753 safety, or the physical integrity of structures or facilities. 

754 CHARGES FOR DELINQUENT PAYMENTS

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

756 on delinquent installments or payments. When a payment is not received by the due date, the 

757 Contractor shall pay an interest charge for each day the payment is delinquent beyond the due date. 

758 When a payment becomes sixty (60) days delinquent, the Contractor shall pay an administrative 

759 charge to cover additional costs of billing and processing the delinquent payment. When a payment 

760 is delinquent ninety (90) days or more, the Contractor shall pay an additional penalty charge of six 

761 (6%) percent per year for each day the payment is delinquent beyond the due date. Further, the 
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762 Contractor shall pay any fees incurred for debt collection services associated with a delinquent 

763 payment. 

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

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

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

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

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

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

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

771 accrued interest, and finally to the overdue payment. 

772 EQUAL OPPORTUNITY

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

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

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

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

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

778 include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

779 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

780 compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

781 conspicuous places, available to employees and applicants for employment, notices to be provided 

782 by the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

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

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

785 for employment without discrimination because of race, color, religion, sex, or national origin. 

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

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

788 be provided by the Contracting Officer, advising the said labor union or workers' representative of 

789 the Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, 

790 and shall post copies of the notice in conspicuous places available to employees and applicants for 

791 employment. 

792 (d) The Contractor will comply with all provisions of Executive Order 

793 No. 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders of 

794 the Secretary of Labor. 

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

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

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

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

799 rules, regulations, and orders. 
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800 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

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

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

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

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

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

806 otherwise provided by law. 

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

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

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

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

811 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

812 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

813 That in the event the Contractor becomes involved in, or is threatened with, litigation with a 

814 subcontractor or vendor as a result of such direction, the Contractor may request the United States 

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

816 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

820 individual water users in their obligations to the Contractor. 

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

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

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

824 the advance payment of water rates due the United States. The Contractor shall not furnish water 

825 made available pursuant to this Contract for lands or parties which are in arrears in the advance 

826 payment of water rates levied or established by the Contractor. 

827 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

828 obligation to require advance payment for water rates which it levies. 

829 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

831 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

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

833 as well as with their respective implementing regulations and guidelines imposed by the U.S. 

834 Department of the Interior and/or Bureau of Reclamation. 

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

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

837 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 
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838 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

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

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

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

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

843 financial assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, 

844 including installment payments after such date on account of arrangements for Federal financial 

845 assistance which were approved before such date. The Contractor recognizes and agrees that such 

846 Federal assistance will be extended in reliance on the representations and agreements made in this 

847 Article, and that the United States reserves the right to seek judicial enforcement thereof. 

848 PRIVACY ACT COMPLIANCE

849 24. Omitted. 

850 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

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

853 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

854 direct cost incurred by the United States for work requested by the Contractor associated with this 

855 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

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

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

858 administration. 

859 WATER CONSERVATION

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

861 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

862 implementing an effective water conservation and efficiency program based on the Contractor's 

863 water conservation plan that has been determined by the Contracting Officer to meet the 

864 conservation and efficiency criteria for evaluating water conservation plans established under 

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

866 conservation objectives, appropriate economically feasible water conservation measures, and time 

867 schedules for meeting those objectives. Continued Project Water delivery pursuant to this Contract 
Contract No. 14-06-200-3367X-LTR1 

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868 shall be contingent upon the Contractor’s continued implementation of such water conservation 

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

870 plan completed pursuant to subdivision (d) of Article 26 of this Contract have not yet been 

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

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

873 made under this Contract so long as the Contractor diligently works with the Contracting Officer to 

874 obtain such determination at the earliest practicable date, and thereafter the Contractor immediately 

875 begins implementing its water conservation and efficiency program in accordance with the time 

876 schedules therein. 

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

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

879 the Best Management Practices identified by the time frames issued by the California Urban Water 

880 Conservation Council for such M&I Water unless any such practice is determined by the 

881 Contracting Officer to be inappropriate for the Contractor. 

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

883 of its implementation of the water conservation plan on the reporting dates specified in the then 

884 existing conservation and efficiency criteria established under Federal law. 

885 (d) At five-year intervals, the Contractor shall revise its water conservation plan 

886 to reflect the then-current conservation and efficiency criteria for evaluating water conservation 

887 plans established under Federal law and submit such revised water management plan to the 

888 Contracting Officer for review and evaluation. The Contracting Officer will then determine if the 

889 water conservation plan meets Reclamation’s then-current conservation and efficiency criteria for 

890 evaluating water conservation plans established under Federal law. 

891 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

892 shall be described in the Contractor’s water conservation plan. 
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893 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

894 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

895 Contract shall not be applicable to or affect non-Project water or water rights now owned or 

896 hereafter acquired by the Contractor or any user of such water within the Contractor's Service Area. 

897 Any such water shall not be considered Project Water under this Contract. In addition, this Contract 

898 shall not be construed as limiting or curtailing any rights which the Contractor or any water user 

899 within the Contractor's Service Area acquires or has available under any other contract pursuant to 

900 Federal Reclamation law. 

901 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

902 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

903 and responsibility for funding a portion of the costs of such O&M, have been transferred to the 

904 Operating Non-Federal Entity by separate agreement between the United States and the Operating 

905 Non-Federal Entity. That separate agreement shall not interfere with or affect the rights or 

906 obligations of the Contractor or the United States hereunder. 

907 (b) The Contracting Officer has previously notified the Contractor in writing that 

908 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to the 

909 Operating Non-Federal Entity, and therefore, the Contractor shall pay directly to the Operating 

910 Non-Federal Entity, or to any successor approved by the Contracting Officer under the terms and 

911 conditions of the separate agreement between the United States and the Operating Non-Federal 

912 Entity described in subdivision (a) of this Article, all rates, charges, or assessments of any kind, 

913 including any assessment for reserve funds, which the Operating Non-Federal Entity or such 

914 successor determines, sets, or establishes for the O&M of the portion of the Project facilities 

915 operated and maintained by the Operating Non-Federal Entity or such successor. Such direct 

916 payments to the Operating Non-Federal Entity or such successor shall not relieve the Contractor of 

917 its obligation to pay directly to the United States the Contractor’s share of the Project Rates, 

918 Charges, and Tiered Pricing Component(s) except to the extent the Operating Non-Federal Entity 
Contract No. 14-06-200-3367X-LTR1 

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919 collects payments on behalf of the United States in accordance with the separate agreement 

920 identified in subdivision (a) of this Article. 

921 (c) For so long as the O&M of any portion of the Project facilities serving the 

922 Contractor is performed by the Operating Non-Federal Entity, or any successor thereto, the 

923 Contracting Officer shall adjust those components of the Rates for Water Delivered under this 

924 Contract representing the cost associated with the activity being performed by the Operating 

925 Non-Federal Entity or its successor. 

926 (d) In the event the O&M of the Project facilities operated and maintained by 

927 the Operating Non-Federal Entity is re-assumed by the United States during the term of this 

928 Contract, the Contracting Officer shall so notify the Contractor, in writing, and present to the 

929 Contractor a revised Exhibit “B” which shall include the portion of the Rates to be paid by the 

930 Contractor for Project Water under this Contract representing the O&M costs of the portion of 

931 such Project facilities which have been re-assumed. The Contractor shall, thereafter, in the 

932 absence of written notification from the Contracting Officer to the contrary, pay the Rates, 

933 Charges, and Tiered Pricing Component(s) specified in the revised Exhibit “B” directly to the 

934 United States in compliance with Article 7 of this Contract. 

935 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

936 29. The expenditure or advance of any money or the performance of any obligation of 

937 the United States under this Contract shall be contingent upon appropriation or allotment of 

938 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

939 obligations under this Contract. No liability shall accrue to the United States in case funds are 

940 not appropriated or allotted. 

941 BOOKS, RECORDS, AND REPORTS

942 30. (a) The Contractor shall establish and maintain accounts and other books and 

943 records pertaining to administration of the terms and conditions of this Contract, including: the 

944 Contractor's financial transactions, water supply data, and Project land and right-of-way 

945 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

946 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

947 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

948 Officer may require. Subject to applicable Federal laws and regulations, each party to this
Contract No.14-06-200-3367X- LTR1 

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949 Contract shall have the right during office hours to examine and make copies of the other party's 

950 books and records relating to matters covered by this Contract 

951 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

952 books, records, or other information shall be requested from the Contractor by the Contracting 

953 Officer unless such books, records, or information are reasonably related to the administration or 

954 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

955 time within which to provide the requested books, records, or information. 

956 (c) At such time as the Contractor provides information to the Contracting 

957 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided 

958 to the Operating Non-Federal Entity. 

959 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

960 31. (a) The provisions of this Contract shall apply to and bind the successors and 

961 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

962 therein shall be valid until approved in writing by the Contracting Officer. 

963 (b) The assignment of any right or interest in this Contract by either party 

964 shall not interfere with the rights or obligations of the other party to this Contract absent the 

965 written concurrence of said other party. 

966 (c) The Contracting Officer shall not unreasonably condition or withhold his 

967 approval of any proposed assignment. 

968 SEVERABILITY

969 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

970 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

971 an association or other form of organization whose primary function is to represent parties to 

972 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

973 enforceability of a provision included in this Contract and said person, entity, association, or 

974 organization obtains a final court decision holding that such provision is legally invalid or 

975 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

976 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 
Contract No.14-06-200-3367X- LTR1 

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977 final court decision identify by mutual agreement the provisions in this Contract which must be 

978 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

979 The time periods specified above may be extended by mutual agreement of the parties. Pending 

980 the completion of the actions designated above, to the extent it can do so without violating any 

981 applicable provisions of law, the United States shall continue to make the quantities of Project 

982 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

983 Contract which were not found to be legally invalid or unenforceable in the final court decision. 

984 RESOLUTION OF DISPUTES

985 33. Should any dispute arise concerning any provisions of this Contract, or the 

986 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

987 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

988 Officer referring any matter to Department of Justice, the party shall provide to the other party 

989 30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

990 required where a delay in commencing an action would prejudice the interests of the party that 

991 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

992 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

993 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

994 United States may have. 

995 OFFICIALS NOT TO BENEFIT

996 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

997 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

998 manner as other water users or landowners. 

999 CHANGES IN CONTRACTOR’S SERVICE AREA

1000 35. (a) While this Contract is in effect, no change may be made in the 

1001 Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

1002 or otherwise, except upon the Contracting Officer's written consent. 

1003 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1004 Officer will notify the Contractor of any additional information required by the Contracting 
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1005 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

1006 schedule for timely completion of the process. Such process will analyze whether the proposed 

1007 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

1008 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

1009 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

1010 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

1011 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

1012 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

1013 be paid in accordance with Article 25 of this Contract. 

1014 FEDERAL LAWS

1015 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1016 the validity or application in connection with the performance of the terms and conditions of this 

1017 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1018 the terms and conditions of this Contract unless and until relief from application of such Federal 

1019 law or regulation to the implementing provision of the Contract is granted by a court of 

1020 competent jurisdiction. 

1021 NOTICES

1022 37. Any notice, demand, or request authorized or required by this Contract shall be 

1023 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1024 delivered to the Area Manager, Bureau of Reclamation, Northern California Area Office, 16349 

1025 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalf of the United States, when 

1026 mailed, postage prepaid, or delivered to the Board of Directors of the Centerville Community 

1027 Services District, 8930 Placer Road, P.O. Box 990431, Redding, California 96099. The 

1028 designation of the addressee or the address may be changed by notice given in the same manner 

1029 as provided in this Article for other notices. 
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1030 CONFIRMATION OF CONTRACT

1031 38. The Contractor, after the execution of this Contract, shall furnish to the 

1032 Contracting Officer evidence that pursuant to the laws of the State of California, the Contractor 

1033 is a legally constituted entity and the contract is lawful, valid, and binding on the Contractor. 

1034 This Contract shall not be binding on the United States until such evidence has been provided to 

1035 the Contracting Officer’s satisfaction. 

1036 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

1037 the day and year first above written. 

1038 THE UNITED STATES OF AMERICA 

1039 By: ______________________________________ 

1040 Regional Director, Mid-Pacific Region 

1041 Bureau of Reclamation 

1042 CENTERVILLE COMMUNITY 

1043 SERVICES DISTRICT 

 

1044 By: ______________________________________ 

1045 President of the Board of Directors 

1046 Attest: 

1047 By: _______________________________ 

1048 Secretary of the Board of Directors 

1049 (I:\LTRC\Draft LTRC\04-19-2004 Centerville CSD Final Draft Contract.doc) 
Contract No.14-06-200-3367X- LTR1 

EXHIBIT A

[Map or Description of Contractor’s Service Area]
Contract No.14-06-200-3367X- LTR1 

EXHIBIT B 

2004 Water Rates and Charges 

Centerville Community Services District– Clear Creek South

 M&I COST OF SERVICE RATES:

 Capital Rate: $ 8.52 

 O&M Rates: 

Water Marketing 5.01 

 Storage 6.38 

 Deficit Rate: 6.41 

 CFO/PRF Adjustment Rate 1/ 0.03

 TOTAL $26.36 

 M&I FULL COST RATE: $32.36

 CHARGES UNDER P.L. 102-575 TO THE

 RESTORATION FUND 2/ 

 Restoration Payments (3407(d)(2)(A)) $15.64

1/ Chief Financial Officer (CFO) adjustment and Provision for Replacement (PFR) expense is 

being distributed over a 5-year period beginning in FY 2003 for those contractors that requested 

those costs be deferred. 

2/ Restoration fund charges are payments in addition to the water rates and were determined 

pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges are on a fiscal year 

basis (10/1 - 9/30).