AG and M&I 

T.O. Draft 09/29-2004 

T.O. Draft 09/27-2004 

T.O. Draft 01/06-2004 

R.O. Final Delta Division Form 09/14-2004 

R.O. Delta Division Form 07/23-2004 

R.O. Draft 07/22-2004 

CVP-Wide Form 05/23-2004 

Delta Division 

Contract No. 

 14-06-200-8092-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

 BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

BROADVIEW WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM THE DELTA DIVISION

Table of Contents

Article No. Title Page No.

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

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

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

 2 Term of Contract................................................................................................9-12

 3 Water to be Made Available and Delivered to the Contractor.........................12-16 

 4 Time for Delivery of Water .............................................................................16-17 

 5 Point of Diversion and Responsibility for Distribution of Water.................... 17-19 

 6 Measurement of Water Within the Contractor’s Service Area........................ 19-21 

 7 Rates and Method of Payment for Water.........................................................21-27 

 8 Non-Interest Bearing Operation and Maintenance Deficits.................................. 28 

 9 Sales, Transfers, or Exchanges of Water .........................................................28-29 

 10 Application of Payments and Adjustments......................................................29-30 

 11 Temporary Reductions--Return Flows ............................................................ 30-31 

 12 Constraints on the Availability of Water ......................................................... 31-33 

 13 Unavoidable Groundwater Percolation............................................................ 33-34 

 14 Rules and Regulations........................................................................................... 34 

 15 Water and Air Pollution Control........................................................................... 34 

 16 Quality of Water .............................................................................................. 34-35 

 17 Water Acquired by the Contractor Other Than From the United States..........35-37
Contract No. 14-06-200-8092-LTR1 

Table of Contents - continued

Article No. Title Page No.

 18 Opinions and Determinations ............................................................................... 38 

 19 Coordination and Cooperation......................................................................... 38-40 

 20 Charges for Delinquent Payments ........................................................................ 40 

 21 Equal Opportunity............................................................................................40-41 

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 42 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 42 

 24 Privacy Act Compliance ..................................................................................42-43 

 25 Contractor to Pay Certain Miscellaneous Costs.................................................... 43 

 26 Water Conservation .........................................................................................44-45 

 27 Existing or Acquired Water or Water Rights........................................................ 45 

 28 Operation and Maintenance by Operating Non-Federal Entity ....................... 45-47 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 47 

 30 Books, Records, and Reports........................................................................... 47-48 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 48 

 32 Severability ......................................................................................................48-49 

 33 Resolution of Disputes.......................................................................................... 49 

 34 Officials Not to Benefit......................................................................................... 49 

 35 Changes in Contractor’s Service Area.................................................................. 50 

 36 Federal Laws......................................................................................................... 50 

 37 Notices .............................................................................................................50-51 

 38 Confirmation of Contract...................................................................................... 51 

 Signature Page ...................................................................................................... 51 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
T.O. Draft 09/29-2004 

T.O. Draft 09/27-2004 

T.O. Draft 01/06-2004 

R.O. Final Delta Division Form 09/14-2004 

R.O. Delta Division Form 07/23-2004 

R.O. Draft 07/22-2004 

CVP-Wide Form 05/23-2004 

Delta Division 

Contract No. 

 14-06-200-8092-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 BROADVIEW WATER DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE DELTA DIVISION

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

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

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

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

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

15 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all 

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

17 OF AMERICA, hereinafter referred to as the United States, and BROADVIEW WATER 

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

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

20 WITNESSETH, That:
Contract No. 14-06-200-8092-LTR1 

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21 EXPLANATORY RECITALS

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

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

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

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

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

27 San Joaquin River and their tributaries; and 

 [2nd 28 ] WHEREAS, the United States constructed the Delta-Mendota Canal and 

29 related facilities, which will be used in part for the furnishing of water to the Contractor pursuant to 

30 the terms of this Contract; and 

 [3rd 31 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

 [4th 33 ] WHEREAS, the Contractor and the United States entered into Contract 

34 No. 14-06-200-8092, as amended, which established terms for the delivery to the Contractor of 

35 Project Water from the Delta Division Facilities from November 27, 1959, through February 28, 

36 1995; and 

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

38 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

39 interim renewal contract(s) identified as Contract No(s). 14-06-200-8092-IR1, 14-06-200-8092-IR2, 

40 14-06-200-8092-IR3, 14-06-200-8092-IR4, 14-06-200-8092-IR5, 14-06-200-8092-IR6, 14-06-200-

41 8092-IR7, 14-06-200-8092-IR8, the current of which is hereinafter referred to as the Existing 

42 Contract, which provided for the continued water service to the Contractor from March 1, 1995, 

43 through February 28, 2006; and 
Contract No. 14-06-200-8092-LTR1 

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

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

46 programmatic environmental impact statement (PEIS) pursuant to the National Environmental 

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

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

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

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

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

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

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

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

55 its obligations under the Existing Contract; and 

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

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

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

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

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

 [11th 61 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

63 an essential portion of its water supply; and 

 [12th 64 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

65 depend upon the continued availability of water, including water service from the Project; and 
Contract No. 14-06-200-8092-LTR1 

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 [13th 66 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

68 Project for all Project purposes; and 

 [14th 69 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

74 relative to the Project; and 

 [15th 75 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

76 relationship in order to achieve their mutual goals; and 

77 [15.1] WHEREAS, the Contractor has utilized or may utilize transfers, contract 

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

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

80 use of water; and 

81 [15.2] WHEREAS, the parties desire and intend that this Contract not provide a 

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

83 Explanatory Recital immediately above; and 

 [16th 84 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

87 contained, it is hereby mutually agreed by the parties hereto as follows: 
Contract No. 14-06-200-8092-LTR1 

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88 DEFINITIONS

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

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

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

92 dates inclusive; 

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

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

95 annually by the Contracting Officer pursuant to this Contract; 

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

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

98 Total; 

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

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

101 regulation; 

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

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

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

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

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

107 amendment of this Contract; 

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

109 XXXIV of the Act of October 30, 1992 (106 Stat. 4706); 
Contract No. 14-06-200-8092-LTR1 

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

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

112 Tracy Pumping Plant, the O’Neill Pumping/Generating Plant, and the San Luis Reservoir, used to 

113 divert, store, and convey water to those Project Contractors entitled to receive water conveyed 

114 through the Delta-Mendota Canal; 

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

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

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

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

119 Section 204 of the RRA, other than those lands exempt from acreage limitation under Federal 

120 Reclamation law; 

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

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

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

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

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

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

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

128 accordance with subsections 202(3)(B) and (3)(C) of the RRA. The Full Cost Rate includes actual 

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

130 Regulations for the RRA; 

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

132 delivered in accordance with Section 204 of the RRA; 
Contract No. 14-06-200-8092-LTR1 

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

134 the delivery of Irrigation Water; 

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

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

137 thereto, and watering of livestock; 

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

139 nonexempt land, as provided in 43 CFR 426.2; 

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

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

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

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

144 than five acres unless the Contractor establishes to the satisfaction of the Contracting Officer that 

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

146 Article; 

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

148 delivery of M&I Water; 

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

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

151 Project facilities; 

152 (r) “Operating Non-Federal Entity” shall mean the entity, its successors or 

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

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

155 entered into, the Operating Non-Federal Entity was the San Luis & Delta-Mendota Water Authority. 
Contract No. 14-06-200-8092-LTR1 

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

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

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

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

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

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

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

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

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

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

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

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

168 preceding contract(s); 

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

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

171 through any agency of the Department of the Interior; 

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

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

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

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

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

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

178 Officer, pursuant to subdivision (a) of Article 4 of this Contract; 
Contract No. 14-06-200-8092-LTR1 

9

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

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

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

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

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

184 TERM OF CONTRACT

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

and supercedes the Existing Contract. 186 In the event the Contractor wishes to renew this Contract 

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

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

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

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

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

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

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

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

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

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

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

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

199 Contracting Officer in accordance with Article 26 of this Contract to meet the conservation and 

200 efficiency criteria for evaluating such plans established under Federal law; (ii) the Contractor is 

201 implementing an effective water conservation and efficiency program based on the Contractor’s 
Contract No. 14-06-200-8092-LTR1 

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202 water conservation plan as required by Article 26 of this Contract; (iii) the Contractor is operating 

203 and maintaining all water measuring devices and implementing all water measurement methods as 

204 approved by the Contracting Officer pursuant to Article 6 of this Contract; (iv) the Contractor has 

205 reasonably and beneficially used the Project Water supplies made available to it and, based on 

206 projected demands, is reasonably anticipated and expects to fully utilize for reasonable and 

207 beneficial use the quantity of Project Water to be made available to it pursuant to such renewal; (v) 

208 the Contractor is complying with all terms and conditions of this Contract; and (vi) the Contractor 

209 has the physical and legal ability to deliver Project Water. 

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

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

212 consistent with the parties’ respective legal rights and obligations, and in consideration of all 

213 relevant facts and circumstances, as those circumstances exist at the time of renewal, including, 

214 without limitation, the Contractor’s need for continued delivery of Project Water; environmental 

215 conditions affected by implementation of the Contract to be renewed, and specifically changes in 

216 those conditions that occurred during the life of the Contract to be renewed; the Secretary’s progress 

217 toward achieving the purposes of the CVPIA as set out in Section 3402 and in implementing the 

218 specific provisions of the CVPIA; and current and anticipated economic circumstances of the region 

219 served by the Contractor. 

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

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

222 consistent with the then-existing Reclamation-wide policy, under terms and conditions mutually 

223 agreeable to the parties and consistent with Federal and State law. The Contractor shall be afforded 

224 the opportunity to comment to the Contracting Officer on the proposed adoption and application of 
Contract No. 14-06-200-8092-LTR1 

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

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

227 years. 

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

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

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

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

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

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

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

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

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

237 (70 Stat. 483). The Contracting Officer anticipates that during the term of this Contract, all 

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

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

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

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

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

243 the Reclamation Project Act of 1939, subject to applicable Federal law and under stated terms and 

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

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

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

247 remaining amount of construction costs assignable for ultimate return by the Contractor can 
Contract No. 14-06-200-8092-LTR1 

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248 probably be repaid to the United States within the term of a contract under subsection 9(d) or 

249 9(c)(1), whichever is applicable. If the remaining amount of costs that are properly assignable to 

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

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

252 Further, the Contracting Officer shall make such a determination as soon thereafter as possible so as 

253 to permit, upon request of the Contractor and satisfaction of the conditions set out above, 

254 conversion to a contract under subsection 9(d) or 9(c)(1), whichever is applicable. In the event such 

255 determination of costs has not been made at a time which allows conversion of this Contract during 

256 the term of this Contract or the Contractor has not requested conversion of this Contract within such 

257 term, the parties shall incorporate in any subsequent renewal contract as described in subdivision (b) 

258 of this Article a provision that carries forth in substantially identical terms the provisions of this 

259 subdivision. 

260 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

263 Contract, the Contracting Officer shall make available for delivery to the Contractor 27,000 acre264 feet of Project Water for irrigation and M&I purposes. Water Delivered to the Contractor in 

265 accordance with this subdivision shall be scheduled and paid for pursuant to the provisions of 

266 Articles 4 and 7 of this Contract. 

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

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

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

270 Contractor actually receiving the amount of Project Water set out in subdivision (a) of this Article in 
Contract No. 14-06-200-8092-LTR1 

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

272 that the Contract Total set forth in this Contract will not be available to the Contractor in many 

273 years. During the most recent five years, the Recent Historic Average of Water Made Available to 

274 the Contractor was 17,766 acre-feet. Nothing in subdivision (b) of this Article shall affect the rights 

275 and obligations of the parties under any provision of this Contract. 

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

277 applicable legal requirements. 

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

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

280 that the Contracting Officer shall make Project Water available at a point or points of delivery in or 

281 north of the Delta, at the request of the Contractor and upon completion of any required 

282 environmental documentation, this Contract shall be amended to provide for deliveries in or north 

283 of the Delta on mutually agreeable terms. Such amendments to the Contract shall be limited solely 

284 to those changes made necessary by the addition of such alternate points of delivery in or north of 

285 the Delta; Provided, That the Contracting Officer’s use of the Harvey O. Banks Pumping Plant to 

286 deliver Project Water does not trigger this right of amendment. 

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

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

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

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

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

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

293 (are) described in the Contractor’s water conservation plan submitted pursuant to Article 26 of this 
Contract No. 14-06-200-8092-LTR1 

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294 Contract; Provided, further, That such water conservation plan demonstrates sufficient lawful uses 

295 exist in the Contractor’s Service Area so that using a long-term average, the quantity of Delivered 

296 Water is demonstrated to be reasonable for such uses and in compliance with Federal Reclamation 

297 law. Groundwater recharge programs, groundwater banking programs, surface water storage 

298 programs, and other similar programs utilizing Project Water or other water furnished pursuant to 

299 this Contract conducted outside the Contractor’s Service Area may be permitted upon written 

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

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

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

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

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

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

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

307 which evidences in excess of 45 years of diversions for irrigation and/or M&I purposes of the 

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

309 developing an appropriate baseline for biological assessment(s) prepared pursuant to the ESA, and 

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

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

312 respect to any biological opinion or other environmental documentation referred to in this Article.

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

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

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

316 under this Article during the Year without adversely impacting other Project Contractors. At the 
Contract No. 14-06-200-8092-LTR1 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

333 approval may permit such uses in accordance with applicable statutes, regulations, guidelines, and 

334 policies. 

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

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

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

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

339 obligations under this Contract and any renewals thereof. Nothing in the preceding sentence shall 
Contract No. 14-06-200-8092-LTR1 

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

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

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

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

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

345 conditions of such approval. 

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

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

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

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

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

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

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

353 TIME FOR DELIVERY OF WATER

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

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

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

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

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

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

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

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

362 Officer shall provide the Contractor with the updated Recent Historic Average. 
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363 (b) On or before each March 1 and at such other times as necessary, the 

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

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

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

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

368 for the Year commencing on such March 1. 

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

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

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

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

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

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

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

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

377 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

379 Contract shall be delivered to the Contractor at a point or points and any additional point or points 

380 of delivery either on Project facilities or another location or locations mutually agreed to in writing 

381 by the Contracting Officer and the Contractor: Provided, That prior to furnishing Project Water to 

382 the Contractor on the San Luis Canal at about milepost 108.20, the Contractor shall obtain all 

383 necessary permits and/or licenses for the construction of the turnout facility on the San Luis Canal 

384 and complete the construction thereof. The Contracting Officer shall cooperate with the Contractor 

385 in obtaining any necessary permits and/or licenses. 
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386 (b) The Contracting Officer, either directly or indirectly through its written 

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

388 maintain sufficient flows and levels of water in Project facilitiesto deliver Project Water to the 

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

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

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

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

393 approved in advance by the Contracting Officer. 

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

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

396 Contracting Officer either directly or indirectly through its written agreement(s) with the Operating 

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

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

399 Upon the request of either party to this Contract, the Contracting Officer shall investigate, or cause 

400 to be investigated by the appropriate Operating Non-Federal Entity(ies), the accuracy of such 

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

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

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

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

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

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

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

408 this Contract beyond the point or points of delivery established pursuant to subdivision (a) of this 
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409 Article. The Contractor shall indemnify the United States, its officers, employees, agents, and 

410 assigns on account of damage or claim of damage of any nature whatsoever for which there is legal 

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

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

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

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

415 Operating Non-Federal Entity(ies), with the intent of creating the situation resulting in any damage 

416 or claim; (ii) willful misconduct of the Contracting Officer or any of its officers, employees, agents, 

417 and assigns, including the Operating Non-Federal Entity(ies); (iii) negligence of the Contracting 

418 Officer or any of its officers, employees, agents, and assigns including the Operating Non-Federal 

419 Entity(ies); or (iv) a malfunction of facilities owned and/or operated by the United States or the 

420 Operating Non-Federal Entity(ies). 

421 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

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

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

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

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

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

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

430 such water measuring devices or water measuring methods to ensure its proper management of the 

431 water, to bill water users for water delivered by the Contractor; and, if applicable, to record water 
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432 delivered for M&I purposes by customer class as defined in the Contractor’s water conservation 

433 plan provided for in Article 26 of this Contract. Nothing herein contained, however, shall preclude 

434 the Contractor from establishing and collecting any charges, assessments, or other revenues 

435 authorized by California law. The Contractor shall include a summary of all its annual surface 

436 water deliveries in the annual report described in subdivision (c) of Article 26. 

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

438 execution of this Contract, the Contractor shall provide to the Contracting Officer a written report 

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

440 implement subdivision (a) of this Article and identifying the agricultural turnouts and the M&I 

441 service connections or alternative measurement programs approved by the Contracting Officer, at 

442 which such measurement devices or water measuring methods are being used, and, if applicable, 

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

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

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

446 measuring devices or water measuring methods identified in the Contractor’s report and if the 

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

448 Contracting Officer notifies the Contractor that the measuring devices or methods are inadequate, 

449 the parties shall within 60 days following the Contracting Officer’s response, negotiate in good faith 

450 the earliest practicable date by which the Contractor shall modify said measuring devices and/or 

451 measuring methods as required by the Contracting Officer to ensure compliance with subdivision 

452 (a) of this Article. 
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453 (c) All new surface water delivery systems installed within the Contractor's 

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

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

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

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

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

459 (e) The Contractor shall inform the Contracting Officer and the Operating 

460 Non-Federal Entity on or before the 20th calendar day of each month of the quantity of Irrigation 

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

462 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

466 then-existing ratesetting policy for M&I Water, which ratesetting policies shall be amended, 

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

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

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

470 or any other mechanism as may be agreed to in writing by the Contractor and the Contracting 

471 Officer. The Rates, Charges, and Tiered Pricing Component applicable to the Contractor upon 

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

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

474 Tiered Pricing Component as follows: 
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475 (1) Prior to July 1 of each Calendar Year, the Contracting Officer shall 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

497 the Water Scheduled to be delivered pursuant to this Contract during the second month immediately 
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498 following. Adjustments between advance payments for Water Scheduled and payments at Rates 

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

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

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

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

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

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

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

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

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

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

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

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

511 delivered by the last day of February. 

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

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

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

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

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

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

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

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

520 deemed a bill for the payment of Charges and the applicable Tiered Pricing Component for Water 
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521 Delivered. Adjustment for overpayment or underpayment of Charges shall be made through the 

522 adjustment of payments due to the United States for Charges for the next month. Any amount to be 

523 paid for past due payment of Charges and the Tiered Pricing Component shall be computed 

524 pursuant to Article 20 of this Contract. 

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

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

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

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

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

530 (a) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

542 and Contractor revenues, and a summary of all water delivery information. The Contracting Officer 
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543 and the Contractor shall enter into good faith negotiations to resolve any discrepancies or disputes 

544 relating to accountings, reports, or information. 

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

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

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

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

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

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

551 effect without amending this Contract. 

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

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

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

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

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

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

558 subdivision (a) of this Article and the Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, 

559 whichever is applicable. The Tiered Pricing Component for the amount of Water Delivered which 

560 exceeds 90 percent of the Contract Total shall equal the difference between (i) the Rate established 

561 under subdivision (a) of this Article and (ii) the Irrigation Full Cost Water Rate or M&I Full Cost 

562 Water Rate, whichever is applicable. For all Water Delivered pursuant to subdivision (a) of Article 

563 3 of this Contract which is in excess of 80 percent of the Contract Total, this increment shall be 

564 deemed to be divided between Irrigation Water and M&I Water in the same proportion as actual 

565 deliveries of each bear to the cumulative total Water Delivered.
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566 (2) Subject to the Contracting Officer’s written approval, the Contractor 

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

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

569 quantifiable habitat values for waterfowl in fields where the water is used and the crops are 

570 produced; Provided, That the exemption from the Tiered Pricing Component for Irrigation Water 

571 shall apply only if such habitat values can be assured consistent with the purposes of the CVPIA 

572 through binding agreements executed with or approved by the Contracting Officer prior to use of 

573 such water. 

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

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

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

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

578 Article 3 of this Contract. 

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

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

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

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

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

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

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

586 change. 

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

588 the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates, in 
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589 accordance with the applicable Project ratesetting policy, adjusted upward or downward to reflect 

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

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

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

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

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

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

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

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

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

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

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

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

602 Contractor may challenge in the appropriate administrative or judicial forums; (1) the existence, 

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

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

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

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

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

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

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

610 credits for payments heretofore made, provided that the basis for such ruling is applicable to the 

611 Contractor. 
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612 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

615 liability therefore. 

616 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

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

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

627 transferee. 

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

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

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

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

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

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

634 shall determine whether such transfers comply with applicable law. Following the completion of 
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635 the environmental documentation, such transfers addressed in such documentation shall be 

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

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

638 Officer’s compliance determination shall be reviewed every five years and updated, as necessary, 

639 prior to the expiration of the then existing five-year period. All subsequent environmental 

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

641 historically transferred within the same geographical area. 

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

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

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

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

646 established cropland, wildlife refuges, groundwater basins, or M&I use; (ii) occur within a single 

647 Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water through existing 

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

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

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

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

652 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

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

656 $1,000 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such 

657 overpayment at the option of the Contractor may be credited against amounts to become due to the 
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658 United States by the Contractor. With respect to overpayment, such refund or adjustment shall 

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

660 use of any of the Project Water supply provided for herein. All credits and refunds of overpayments 

661 shall be made within 30 days of the Contracting Officer obtaining direction as to how to credit or 

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

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

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

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

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

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

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

669 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

674 Contract. 

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

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

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

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

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

680 give the Contractor due notice in advance of such temporary discontinuance or reduction, except in 
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681 case of emergency, in which case no notice need be given; Provided, That the United States shall 

682 use its best efforts to avoid any discontinuance or reduction in such service. Upon resumption of 

683 service after such reduction or discontinuance, and if requested by the Contractor, the United States 

684 will, if possible, deliver the quantity of Project Water which would have been delivered hereunder 

685 in the absence of such discontinuance or reduction. 

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

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

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

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

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

691 under the Contractor. 

692 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

697 determination as soon as practicable. 

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

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

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

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

702 officers, agents, or employees for any damage, direct or indirect, arising therefrom. 
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703 (c) In any Year in which there may occur a Condition of Shortage for any of the 

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

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

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

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

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

709 Officer shall then apportion Project Water among the Contractor and others entitled to Project 

710 Water from Delta Division Facilities under long-term water service or repayment contracts (or 

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

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

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

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

715 water service or repayment contracts then in force for the delivery of Project Water by the United 

716 States from Delta Division Facilities during the relevant Year, the quantity so determined being 

717 hereinafter referred to as the scheduled total; 

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

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

720 referred to as the available supply; 

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

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

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

724 to as the Contractor’s proportionate share; and 
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725 (4) The available supply shall be multiplied by the Contractor’s 

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

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

728 the Contracting Officer under subdivision (c) (1) of this Article, but in no event shall such amount 

729 exceed the Contract Total. In the event the Contracting Officer subsequently determines that the 

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

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

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

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

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

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

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

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

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

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

740 administrative procedures necessary to institute any judicial challenge within six months of the 

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

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

743 shall be interpreted to validate or invalidate the Central Valley Project M&I Water Shortage Policy. 

744 UNAVOIDABLE GROUNDWATER PERCOLATION

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

746 Irrigation Water to Excess Lands or Ineligible Lands within the meaning of this Contract if such 
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747 lands are irrigated with groundwater that reaches the underground strata as an unavoidable result of 

748 the delivery of Irrigation Water by the Contractor to Eligible Lands. 

749 RULES AND REGULATIONS

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

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

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

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

754 WATER AND AIR POLLUTION CONTROL

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

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

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

 

758 QUALITY OF WATER

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

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

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

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

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

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

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

766 Delivered to the Contractor pursuant to this Contract. 

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

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

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

770 responsible for compliance with all State and Federal water quality standards applicable to surface 
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771 and subsurface agricultural drainage discharges generated through the use of Federal or Contractor 

772 facilities or Project Water provided by the Contractor within the Contractor's Service Area. 

773 (c) Omitted. 

774 WATER ACQUIRED BY THE CONTRACTOR

775 OTHER THAN FROM THE UNITED STATES

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

777 other than from the United States and Irrigation Water furnished pursuant to the terms of this 

778 Contract may be simultaneously transported through the same distribution facilities of the 

779 Contractor subject to the following: (i) if the facilities utilized for commingling Irrigation Water 

780 and non-Project water were constructed without funds made available pursuant to Federal 

781 Reclamation law, the provisions of Federal Reclamation law will be applicable only to the 

782 Landholders of lands which receive Irrigation Water; (ii) the eligibility of land to receive Irrigation 

783 Water must be established through the certification requirements as specified in the Acreage 

784 Limitation Rules and Regulations (43 CFR Part 426); (iii) the water requirements of Eligible Lands 

785 within the Contractor's Service Area can be established and the quantity of Irrigation Water to be 

786 utilized is less than or equal to the quantity necessary to irrigate such Eligible Lands; and (iv) if the 

787 facilities utilized for commingling Irrigation Water and non-Project water are/were constructed with 

788 funds made available pursuant to Federal Reclamation law, the non-Project water will be subject to 

789 the acreage limitation provisions of Federal Reclamation law, unless the Contractor pays to the 

790 United States the incremental fee described in 43 CFR 426.15. In determining the incremental fee, 

791 the Contracting Officer will calculate annually the cost to the Federal Government, including 

792 interest of storing or delivering non-Project water, which for purposes of this Contract shall be 

793 determined as follows: The quotient shall be the unpaid distribution system costs divided by the 

794 total irrigable acreage within the Contractor’s Service Area. The incremental fee per acre is the 
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795 mathematical result of such quotient times the interest rate determined using Section 202 (3) of the 

796 Act of October 12, 1982 (96 Stat. 1263). Such incremental fee will be charged to each acre of 

797 excess or full cost land within the Contractor’s Service Area that receives non-Project water through 

798 Federally financed or constructed facilities. The incremental fee calculation methodology will 

799 continue during the term of this Contract absent the promulgation of a contrary Reclamation-wide 

800 rule, regulation, or policy adopted after the Contractor has been afforded the opportunity to review 

801 and comment on the proposed rule, regulation, or policy. If such rule, regulation, or policy is 

802 adopted it shall supercede this provision. 

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

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

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

806 of the Contracting Officer and the execution of any contract determined by the Contracting Officer 

807 to be necessary, consistent with the following provisions: 

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

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

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

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

812 use power policy, if such Project use power policy is applicable, each as amended, modified, or 

813 superceded from time to time. 

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

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

816 as determined by the Contracting Officer; (ii) reduce the quantity or quality of water available to 
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817 other Project Contractors; (iii) interfere with the delivery of contractual water entitlements to any 

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

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

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

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

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

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

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

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

826 water into Project facilities. 

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

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

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

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

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

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

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

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

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

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

837 any such remaining capacity being made available to non-Project contractors. 
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838 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

852 Contractor to the extent reasonably practicable. 

853 COORDINATION AND COOPERATION

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

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

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

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

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

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

860 including, but not limited to, budget issues. The communication, coordination, and cooperation 
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861 provided for hereunder shall extend to all provisions of this Contract. Each party shall retain 

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

863 respective party. 

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

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

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

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

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

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

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

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

872 intent: 

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

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

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

876 improve water supply, water quality, and reliability. 

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

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

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

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

881 of California to seek improved water resource management. 

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

883 Department of the Interior that may impact the availability of water for Project purposes. 
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884 (5) The Contracting Officer shall periodically, but not less than annually, 

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

886 activities, and other issues as appropriate. 

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

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

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

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

891 safety or the physical integrity of structures or facilities. 

892 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

899 (6%) percent per year for each day the payment is delinquent beyond the due date. Further, the 

900 Contractor shall pay any fees incurred for debt collection services associated with a delinquent 

901 payment. 

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

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

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

905 Project Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due 

906 date and remain fixed for the duration of the delinquent period. 

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

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

909 accrued interest, and finally to the overdue payment. 

910 EQUAL OPPORTUNITY

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

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

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

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

915 employment, without regard to their race, color, religion, sex, or national origin. Such action shall 
Contract No. 14-06-200-8092-LTR1 

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

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

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

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

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

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

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

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

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

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

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

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

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

929 employment. 

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

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

932 the Secretary of Labor. 

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

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

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

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

937 rules, regulations, and orders. 

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

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

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

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

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

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

944 otherwise provided by law. 

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

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

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

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

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

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

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

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

953 to enter into such litigation to protect the interests of the United States. 
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954 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

958 individual water users in their obligations to the Contractor. 

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

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

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

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

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

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

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

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

967 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

969 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

986 PRIVACY ACT COMPLIANCE

987 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) 

988 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et 

989 seq.) in maintaining Landholder acreage certification and reporting records, required to be 
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990 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation Reform 

991 Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

992 (b) With respect to the application and administration of the criminal penalty 

993 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees responsible 

994 for maintaining the certification and reporting records referenced in (a) above are considered to be 

995 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

996 (c) The Contracting Officer or a designated representative shall provide the 

997 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau of 

998 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

999 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

1000 contained in the Landholder's certification and reporting records. 

1001 (d) The Contracting Officer shall designate a full-time employee of the Bureau of 

1002 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

1003 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

1004 authorized to grant requests by individuals for access to their own records. 

1005 (e) The Contractor shall forward promptly to the System Manager each proposed 

1006 denial of access under 43 CFR 2.64; and each request for amendment of records filed under 43 CFR 

1007 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

1008 information and records necessary to prepare an appropriate response to the requester. These 

1009 requirements do not apply to individuals seeking access to their own certification and reporting 

1010 forms filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the 

1011 Privacy Act as a basis for the request. 

1012 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1013 25. In addition to all other payments to be made by the Contractor pursuant to this 

1014 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1015 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

1016 direct cost incurred by the United States for work requested by the Contractor associated with this 

1017 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

1018 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

1019 writing in advance by the Contractor. This Article shall not apply to costs for routine contract 

1020 administration. 
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1021 WATER CONSERVATION

1022 26. (a) Prior to the delivery of water provided from or conveyed through Federally 

1023 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

1024 implementing an effective water conservation and efficiency program based on the Contractor's 

1025 water conservation plan that has been determined by the Contracting Officer to meet the 

1026 conservation and efficiency criteria for evaluating water conservation plans established under 

1027 Federal law. The water conservation and efficiency program shall contain definite water 

1028 conservation objectives, appropriate economically feasible water conservation measures, and time 

1029 schedules for meeting those objectives. Continued Project Water delivery pursuant to this Contract 

1030 shall be contingent upon the Contractor’s continued implementation of such water conservation 

1031 program. In the event the Contractor's water conservation plan or any revised water conservation 

1032 plan completed pursuant to subdivision (d) of Article 26 of this Contract have not yet been 

1033 determined by the Contracting Officer to meet such criteria, due to circumstances which the 

1034 Contracting Officer determines are beyond the control of the Contractor, water deliveries shall be 

1035 made under this Contract so long as the Contractor diligently works with the Contracting Officer to 

1036 obtain such determination at the earliest practicable date, and thereafter the Contractor immediately 

1037 begins implementing its water conservation and efficiency program in accordance with the time 

1038 schedules therein. 

1039 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1040 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

1041 the Best Management Practices identified by the time frames issued by the California Urban Water 

1042 Conservation Council for such M&I Water unless any such practice is determined by the 

1043 Contracting Officer to be inappropriate for the Contractor. 
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1044 (c) The Contractor shall submit to the Contracting Officer a report on the status 

1045 of its implementation of the water conservation plan on the reporting dates specified in the then 

1046 existing conservation and efficiency criteria established under Federal law. 

1047 (d) At five-year intervals, the Contractor shall revise its water conservation plan 

1048 to reflect the then current conservation and efficiency criteria for evaluating water conservation 

1049 plans established under Federal law and submit such revised water management plan to the 

1050 Contracting Officer for review and evaluation. The Contracting Officer will then determine if the 

1051 water conservation plan meets Reclamation’s then current conservation and efficiency criteria for 

1052 evaluating water conservation plans established under Federal law. 

1053 (e) If the Contractor is engaged in direct groundwater recharge, such activity 

1054 shall be described in the Contractor’s water conservation plan. 

1055 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1056 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

1057 Contract shall not be applicable to or affect non-Project water or water rights now owned or 

1058 hereafter acquired by the Contractor or any user of such water within the Contractor's Service Area. 

1059 Any such water shall not be considered Project Water under this Contract. In addition, this Contract 

1060 shall not be construed as limiting or curtailing any rights which the Contractor or any water user 

1061 within the Contractor's Service Area acquires or has available under any other contract pursuant to 

1062 Federal Reclamation law. 

1063 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

1064 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1065 and responsibility for funding a portion of the costs of such O&M, have been transferred to the San 

1066 Luis & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement 
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1067 (8-07-20-X0354) between the United States and the Operating Non-Federal Entity San Luis 

1068 & Delta-Mendota Water Authority. That separate agreement shall not interfere with or affect the 

1069 rights or obligations of the Contractor or the United States hereunder. 

1070 (b) The Contracting Officer has previously notified the Contractor in writing that 

1071 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to the 

1072 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

1073 Contractor shall pay directly to the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1074 Authority, or to any successor approved by the Contracting Officer under the terms and conditions 

1075 of the separate agreement between the United States and the Operating Non-Federal Entity San Luis 

1076 & Delta-Mendota Water Authority described in subdivision (a) of this Article, all rates, charges, or 

1077 assessments of any kind, including any assessment for reserve funds, which the Operating Non1078 Federal Entity San Luis & Delta-Mendota Water Authority or such successor determines, sets, or 

1079 establishes for the O&M of the portion of the Project facilities operated and maintained by the 

1080 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority or such successor. Such 

1081 direct payments to the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority or 

1082 such successor shall not relieve the Contractor of its obligation to pay directly to the United States 

1083 the Contractor’s share of the Project Rates, Charges, and Tiered Pricing Component except to the 

1084 extent the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority collects 

1085 payments on behalf of the United States in accordance with the separate agreement identified in 

1086 subdivision (a) of this Article. 

1087 (c) For so long as the O&M of any portion of the Project facilities serving the 

1088 Contractor is performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water

1089 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 
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1090 Rates for Water Delivered under this Contract representing the cost associated with the activity 

1091 being performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority

1092 or its successor. 

1093 (d) In the event the O&M of the Project facilities operated and maintained by the 

1094 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

1095 United States during the term of this Contract, the Contracting Officer shall so notify the 

1096 Contractor, in writing, and present to the Contractor a revised Exhibit “B” which shall include the 

1097 portion of the Rates to be paid by the Contractor for Project Water under this Contract representing 

1098 the O&M costs of the portion of such Project facilities which have been re-assumed. The 

1099 Contractor shall, thereafter, in the absence of written notification from the Contracting Officer to the 

1100 contrary, pay the Rates, Charges, and Tiered Pricing Component specified in the revised Exhibit 

1101 “B” directly to the United States in compliance with Article 7 of this Contract. 

1102 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1103 29. The expenditure or advance of any money or the performance of any obligation of 

1104 the United States under this Contract shall be contingent upon appropriation or allotment of funds. 

1105 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

1106 under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

1107 or allotted. 

1108 BOOKS, RECORDS, AND REPORTS

1109 30. (a) The Contractor shall establish and maintain accounts and other books and 

1110 records pertaining to administration of the terms and conditions of this Contract, including: the 

1111 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1112 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

1113 data; and other matters that the Contracting Officer may require. Reports thereon shall be furnished 

1114 to the Contracting Officer in such form and on such date or dates as the Contracting Officer may 

1115 require. Subject to applicable Federal laws and regulations, each party to this Contract shall have 

1116 the right during office hours to examine and make copies of the other party's books and records 

1117 relating to matters covered by this Contract. 
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1118 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

1119 records, or other information shall be requested from the Contractor by the Contracting Officer 

1120 unless such books, records, or information are reasonably related to the administration or 

1121 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1122 time within which to provide the requested books, records, or information. 

1123 (c) At such time as the Contractor provides information to the Contracting 

1124 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided to 

1125 the Operating Non-Federal Entity. 

1126 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1127 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1128 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1129 therein shall be valid until approved in writing by the Contracting Officer. 

1130 (b) The assignment of any right or interest in this Contract by either party shall 

1131 not interfere with the rights or obligations of the other party to this Contract absent the written 

1132 concurrence of said other party. 

1133 (c) The Contracting Officer shall not unreasonably condition or withhold 

1134 approval of any proposed assignment. 

1135 SEVERABILITY

1136 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1137 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1138 association or other form of organization whose primary function is to represent parties to Project 

1139 contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1140 enforceability of a provision included in this Contract and said person, entity, association, or 

1141 organization obtains a final court decision holding that such provision is legally invalid or 
Contract No. 14-06-200-8092-LTR1 

49

1142 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

1143 parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

1144 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

1145 within three months thereafter promptly agree on the appropriate revision(s). The time periods 

1146 specified above may be extended by mutual agreement of the parties. Pending the completion of 

1147 the actions designated above, to the extent it can do so without violating any applicable provisions 

1148 of law, the United States shall continue to make the quantities of Project Water specified in this 

1149 Contract available to the Contractor pursuant to the provisions of this Contract which were not 

1150 found to be legally invalid or unenforceable in the final court decision. 

1151 RESOLUTION OF DISPUTES

1152 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

1153 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

1154 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

1155 any matter to the Department of Justice, the party shall provide to the other party 30 days’ written 

1156 notice of the intent to take such action; Provided, That such notice shall not be required where a 

1157 delay in commencing an action would prejudice the interests of the party that intends to file suit. 

1158 During the 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in 

1159 an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

1160 waive or abridge any right or remedy that the Contractor or the United States may have. 

1161 OFFICIALS NOT TO BENEFIT

1162 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1163 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1164 manner as other water users or landowners. 
Contract No. 14-06-200-8092-LTR1 

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1165 CHANGES IN CONTRACTOR’S SERVICE AREA

1166 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

1167 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

1168 except upon the Contracting Officer's written consent. 

1169 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1170 Officer will notify the Contractor of any additional information required by the Contracting Officer 

1171 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1172 timely completion of the process. Such process will analyze whether the proposed change is likely 

1173 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability 

1174 of the Contractor to pay for Project Water furnished under this Contract or to pay for any Federally1175 constructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

1176 Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply 

1177 with the NEPA and the ESA. The Contractor will be responsible for all costs incurred by the 

1178 Contracting Officer in this process, and such costs will be paid in accordance with Article 25 of this 

1179 Contract.

1180 FEDERAL LAWS

1181 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1182 validity or application in connection with the performance of the terms and conditions of this 

1183 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

1184 terms and conditions of this Contract unless and until relief from application of such Federal law or 

1185 regulation to the implementing provision of the Contract is granted by a court of competent 

1186 jurisdiction. 

1187 NOTICES

1188 37. Any notice, demand, or request authorized or required by this Contract shall be 

1189 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 
Contract No. 14-06-200-8092-LTR1 

51

1190 to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, Califronia 

1191 93721, and on behalf of the United States, when mailed, postage prepaid, or delivered to the Board 

1192 of Directors of the Broadview Water District, P. O. Box 95, Firebaugh, California 93622. The 

1193 designation of the addressee or the address may be changed by notice given in the same manner as 

1194 provided in this Article for other notices. 

1195 CONFIRMATION OF CONTRACT

1196 38. The Contractor, after the execution of this Contract, shall promptly seek to secure a 

1197 decree of a court of competent jurisdiction of the State of California, confirming the execution of 

1198 this Contract. The Contractor shall furnish the United States a certified copy of the final decree, the 

1199 validation proceedings, and all pertinent supporting records of the court approving and confirming 

1200 this Contract, and decreeing and adjudging it to be lawful, valid, and binding on the Contractor. 

1201 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

1202 year first above written. 

1203 THE UNITED STATES OF AMERICA 

1204 By: ________________________________________ 

1205 Regional Director, Mid-Pacific Region 

1206 Bureau of Reclamation 

1207 (SEAL) 

1208 BROADVIEW WATER DISTRICT 

1209 By: ________________________________________ 

1210 President of the Board of Directors 

1211 Attest: 

1212 By: _______________________________ 

1213 Secretary of the Board of Directors 

1214 (H:\pub 440\lTRC\Final Draft LTRC’s – Fresno, Tracy\09-29-04 Broadview WD Final Draft LTRC 

1215 with exhibits.doc)
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F R E S N O C O F R E S N O C O

Broadview W.D. Contract No. 14-06-200-8092-LTR1

EXHIBIT A

Contractor's Service Area

District Boundary

0 1 0.5

Miles

Date: October 1, 2004

File Name: N:\districts\contracts\broadview\broadview.mxd

Note: The Public Land Survey depicted here

was digitized from USGS topographic maps.
Contract No. 14-06-200-8092-LTR1 

EXHIBIT B 

[Initial Rates and Charges] 

Note: Rates and Charges are 2004 rates. This exhibit will be updated prior to execution of the 

 contract to reflect the current Rates and Charges. 

2004 Rates per Acre-Foot Irrigation M&I COST-OF-SERVICE RATES: Water Water

 DMC SLC 

Capital Rates $ 9.66 $26.24 

O&M Rates: 

 Water Marketing 7.59 5.01 

Storage 5.83 6.38 

Conveyance 

Conveyance Pumping 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing 1.44 

CFO/PFR Adj. Rate 1/ 1.54 3.51

TOTAL COST-OF-SERVICE-RATES $24.62 $42.58

FULL-COST RATES

Section 202(3) Rate is applicable to a 

 Qualified Recipient or to a Limited 

 Recipient receiving irrigation water 

 on or before October 1, 1981. $37.23 

Section 205(a)(3) Rate is 

 applicable to a Limited Recipient that 

 did not receive irrigation water on or before October 1, 1981. $44.33 

CHARGES UNDER P.L. 102-575 TO RESTORATION FUND 2/ 

 Restoration Payments (3407(d)(2)(A)) $ 7.82 $15.64 

1/ Rate represents Chief Financial Officers (CFO) adjustment and Provision for Replacement 

(PFR) credit for option 2 cost deferment to be distributed over 5-year period beginning with 2003 

water rates. 

 

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).