Irrigation and M&I 

Contract No. 

14-06-200-495A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

WESTLANDS WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

SAN LUIS UNIT AND DELTA DIVISION

Table of Contents

Article No. Title Page No.

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

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

 1 Definitions .........................................................................................................6-10 

 2 Term of Contract..............................................................................................11-14

 3 Water to be Made Available and Delivered to the Contractor ........................14-19 

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

 5 Point of Diversion and Responsibility for Distribution of Water....................20-22 

 6 Measurement of Water Within the Contractor’s Service Area........................22-24 

 7 Rates and Method of Payment for Water.........................................................24-30 

 8 Non-Interest Bearing Operation and Maintenance Deficits ................................. 31 

 9 Sales, Transfers, or Exchanges of Water .........................................................31-32 

 10 Application of Payments and Adjustments......................................................32-33 

 11 Temporary Reductions--Return Flows ............................................................33-34 

 12 Constraints on the Availability of Water .........................................................34-37 

 13 Unavoidable Groundwater Percolation................................................................. 37 

 14 Rules and Regulations .......................................................................................... 37 

 15 Water and Air Pollution Control........................................................................... 37 

 16 Quality of Water ................................................................................................... 38 

 17 Water Acquired by the Contractor Other Than From the United States .........39-41 

 18 Opinions and Determinations ............................................................................... 42 

 19 Coordination and Cooperation.........................................................................42-44 

 20 Charges for Delinquent Payments ........................................................................ 44
Contract No. 14-06-200-495A-LTR1 

 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity............................................................................................45-46 

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 46 

 23 Compliance With Civil Rights Laws and Regulations ....................................46-47 

 24 Privacy Act Compliance ....................................................................................... 47 

 25 Contractor to Pay Certain Miscellaneous Costs ................................................... 48 

 26 Water Conservation .........................................................................................48-49 

 27 Existing or Acquired Water or Water Rights........................................................ 50 

 28 Operation and Maintenance by San Luis & Delta-Mendota Water Authority 50-52 

 28.1 Operation and Maintenance by California Department of Water Resources ..52-54 

 28.2 Operation and Maintenance by the Contractor................................................54-56 

 28.3 Pumping Plants, Power for Pumping Plants, and Transfer of Operation and 

 Maintenance to the Contractor..................................................................56-60 

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

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

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

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

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

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

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

 36 Federal Laws....................................................................................................63-64 

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

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

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

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
Contract No. 

14-06-200-495A-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 WESTLANDS WATER DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE FROM

9 SAN LUIS UNIT AND DELTA DIVISION

10 THIS CONTRACT, made this _____ day of ____________________, 2006, in pursuance 

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

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

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

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

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

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

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

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

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

20 WITNESSETH, That: 
Contract No. 14-06-200-495A-LTR1 

 

2

21 EXPLANATORY RECITALS

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

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

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

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

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

27 San Joaquin River and their tributaries; and 

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

29 San Luis Unit facilities (which include the San Luis Canal, Coalinga Canal, Pleasant Valley Pumping 

30 Plant, and Dos Amigos Pumping Plant), which will be used in part for the furnishing of water to the 

31 Contractor pursuant to the terms of this Contract; and 

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

33 to California law for operation of the Project; and 

[4th 34 ] WHEREAS, the terms and conditions pursuant to which Project Water is to be 

35 delivered to the Contractor through December 31, 2007, are addressed in the Contract Between the 

36 United States and Westlands Water District Providing for Water Service, dated June 5, 1963, and the 

37 Stipulated Judgment in the lawsuit entitled Barcellos and Wolfsen, Inc., v. Westlands Water District, 

38 Civ. No. F-79-106-EDP (E.D. Cal.), as consolidated with Westlands Water District v. United States 

39 of America, Civ. No. F-81-245-EDP (E.D. Cal.), entered on December 30, 1986, hereinafter referred 

40 to as the Existing Contract; and 

[5th 41 ] WHEREAS, the United States and the Contractor have pursuant to Subsection 
Contract No. 14-06-200-495A-LTR1 

 

3

42 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

43 binding agreements identified as Binding Agreement No. 14-06-200-495A-BA, and Binding 

44 Agreement No. CV 79-106-EDP-BA, which set out the terms pursuant to which the Contractor 

45 agreed to renew the Existing Contract before the expiration date after completion of the 

46 Programmatic Environmental Impact Statement (PEIS) and other appropriate environmental 

47 documentation and negotiation of a renewal contract; and which also set out the consequences of 

48 subsequent decisions not to renew; and 

[6th 49 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

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

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

53 for Project Water; and 

54 [6.1] WHEREAS, the Contractor has been assigned the rights and interests to Project Water 

55 under certain other contracts providing for Project Water service and the quantity of Project Water so 

56 assigned are incorporated into this Contract; and 

[7th 57 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

[8th 59 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

[9th 62 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

63 its obligations under the Existing Contract; and 
Contract No. 14-06-200-495A-LTR1 

 

4

[10th 64 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

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

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

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

[11th 68 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

70 essential portion of its water supply; and 

[12th 71 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

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

73 [12.1] WHEREAS, the United States Court of Appeals for the Ninth Circuit has held that 

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

75 provide drainage service to the San Luis Unit; and 

76 [12.2] WHEREAS, the Contractor and the Contracting Officer recognize that adequate 

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

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

79 [12.3] WHEREAS, the Contacting Officer intends, to the extent appropriated funds are 

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

81 [12.4] WHEREAS, the Contracting Officer and the Contractor acknowledge that such 

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

83 facilities, other than the San Luis Drain; that the Contractor is investing in drainage solutions for

84 lands within its boundaries that should be considered by the Contracting Officer in determining 

85 drainage solutions; and that the existing ratesetting policy as it relates to the allocation and collection 
Contract No. 14-06-200-495A-LTR1 

 

5

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

87 relevant circumstances; and

[13th 88 ] WHEREAS, the Secretary intends through coordination, cooperation, and partnerships 

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

90 Project purposes; and 

[14th 91 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

96 relative to the Project; and 

97 [14.1] WHEREAS, the parties intend by this Contract to develop a more cooperative 

98 relationship in order to achieve their mutual goals; and 

[15th 99 ] WHEREAS, the Contractor has utilized or may utilize transfers, contract assignments, 

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

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

102 [15.1] WHEREAS, the parties desire and intend that this Contract not provide a disincentive 

103 to the Contractor in continuing to carry out the beneficial activities set out in the Explanatory Recital 

104 immediately above; and 

[16th 105 ] WHEREAS, the United States and the Contractor are willing to enter into this 
Contract No. 14-06-200-495A-LTR1 

 

6

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

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

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

109 DEFINITIONS

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

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

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

113 dates inclusive; 

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

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

116 by the Contracting Officer pursuant to this Contract; 

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

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

119 Total; 

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

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

122 regulation; 

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

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

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

126 permitted to provide Project Water under this Contract as described in Exhibit “A” attached hereto, 
Contract No. 14-06-200-495A-LTR1 

 

7

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

128 amendment of this Contract; 

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

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

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

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

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

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

135 water conveyed through the Delta-Mendota Canal; 

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

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

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

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

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

141 Reclamation law; 

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

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

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

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

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

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

148 that date, or from the date incurred in the case of costs arising subsequent to October 12, 1982, and 
Contract No. 14-06-200-495A-LTR1 

 

8

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

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

151 the Rules and Regulations for the RRA; 

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

153 delivered in accordance with Section 204 of the RRA; 

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

155 the delivery of Irrigation Water; 

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

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

158 thereto, and watering of livestock; 

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

160 nonexempt land, as provided in 43 CFR 426.2; 

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

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

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

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

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

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

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

168 delivery of M&I Water; 

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

170 care, control, operation, repair, replacement (other than capital replacement), and maintenance of 
Contract No. 14-06-200-495A-LTR1 

 

9

171 Project facilities; 

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

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

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

175 was entered into, the Operating Non-Federal Entities were the San Luis & Delta-Mendota Water 

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

177 Resources, and the Contractor; 

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

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

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

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

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

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

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

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

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

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

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

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

190 contract(s); 

191 (x) “Secretary” shall mean the Secretary of the Interior, a duly appointed 
Contract No. 14-06-200-495A-LTR1 

 

10

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

193 through any agency of the Department of the Interior; 

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

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

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

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

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

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

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

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

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

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

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

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

206 TERM OF CONTRACT

207 2. (a) This Contract shall be effective March 1, 2006, through February 28, 2031, 

208 and supersedes the Existing Contract. In the event the Contractor wishes to renew this Contract 

209 beyond February 28, 2031, the Contractor shall submit a request for renewal in writing to the 

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

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

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

213 the furnishing of M&I Water to the Contractor shall be governed by subdivision (c) of this Article. 
Contract No. 14-06-200-495A-LTR1 

 

11

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

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

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

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

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

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

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

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

222 for evaluating such plans established under Federal law; (ii) the Contractor is implementing an 

223 effective water conservation and efficiency program based on the Contractor’s water conservation 

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

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

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

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

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

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

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

231 ability to deliver Project Water. 

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

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

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

235 circumstances, as those circumstances exist at the time of renewal, including, without limitation, the 
Contract No. 14-06-200-495A-LTR1 

 

12

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

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

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

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

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

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

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

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

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

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

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

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

248 years. 

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

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

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

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

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

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

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

256 Reclamation Project Act of 1939 can be accomplished. Notwithstanding any provision of this 
Contract No. 14-06-200-495A-LTR1 

 

13

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

258 (70 Stat. 483). The Contracting Officer anticipates that during the term of this Contract, all 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

278 shall incorporate in any subsequent renewal contract as described in subdivision (b) of this Article a 
Contract No. 14-06-200-495A-LTR1 

 

14

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

280 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

Contracting Officer shall make available for delivery to the Contractor 1,150,000 1 283 acre-feet of 

284 Project Water for irrigation and M&I purposes. Water Delivered to the Contractor in accordance 

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

286 this Contract. 

 

1 "This amount may increase before this Contract is executed due to contract assignments. The expected maximum increase in the 

Contract total is 38,490 acre-feet."
Contract No. 14-06-200-495A-LTR1 

 

15

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

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

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

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

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

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

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

294 was 756,700 acre-feet. Nothing in this subdivision (b) of this Article shall affect the rights and 

295 obligations of the parties under any provision of this Contract. 

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

297 legal requirements. 

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

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

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

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

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

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

304 made necessary by the addition of such alternate points of delivery in or north of the Delta; Provided, 

305 That the Contracting Officer’s use of the Harvey O. Banks Pumping Plant to deliver Project Water 

306 does not trigger this right of amendment. 

307 (d) The Contractor shall make reasonable and beneficial use of all water furnished 
Contract No. 14-06-200-495A-LTR1 

 

16

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

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

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

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

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

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

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

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

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

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

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

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

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

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

322 regulations, policies, or guidelines. 

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

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

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

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

327 excess of 38 years of diversions for irrigation and/or M&I purposes of the quantities of Project Water 

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

329 appropriate baseline for the biological assessment(s) prepared pursuant to the ESA, and any other 
Contract No. 14-06-200-495A-LTR1 

 

17

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

350 referred to as “rescheduled water.” The Contractor may request permission to use during the current 
Contract No. 14-06-200-495A-LTR1 

 

18

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

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

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

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

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

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

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

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

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

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

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

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

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

364 conditions of such approval. 

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

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

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

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

369 that the Contracting Officer retains the right to object to the substance of the Contractor’s position in 

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

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

372 TIME FOR DELIVERY OF WATER
Contract No. 14-06-200-495A-LTR1 

 

19

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

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

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

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

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

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

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

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

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

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

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

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

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

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

387 for the Year commencing on such March 1. 

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

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

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

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

392 Contract, the United States shall deliver Project Water to the Contractor in accordance with the initial 
Contract No. 14-06-200-495A-LTR1 

 

20

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

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

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

396 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

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

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

400 the Contracting Officer and the Contractor. 

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

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

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

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

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

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

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

408 approved in advance by the Contracting Officer. 

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

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

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

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

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

414 the request of either party to this Contract, the Contracting Officer shall investigate, or cause to be 
Contract No. 14-06-200-495A-LTR1 

 

21

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

432 including the Operating Non-Federal Entity(ies); (iii) negligence of the Contracting Officer or any of 

433 its officers, employees, agents, and assigns including the Operating Non-Federal Entity(ies); (iv) a 

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

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

436 the Operating Non-Federal Entity(ies), to provide drainage service. 
Contract No. 14-06-200-495A-LTR1 

 

22

437 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

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

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

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

443 the Contracting Officer. The Contractor shall be responsible for installing, operating, maintaining, 

444 and repairing all such measuring devices and implementing all such water measuring methods at no 

445 cost to the United States. The Contractor shall use the information obtained from such water 

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

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

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

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

450 establishing and collecting any charges, assessments, or other revenues authorized by California law. 

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

452 described in subdivision (c) of Article 26 of this Contract. 

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

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

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

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

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

458 measurement devices or water measuring methods are being used, and, if applicable, identifying the 
Contract No. 14-06-200-495A-LTR1 

 

23

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

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

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

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

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

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

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

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

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

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

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

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

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

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

473 Contractor’s Service Area during the previous Year. 

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

Non-Federal Entity(ies) on or before the 20th 475 calendar day of each month of the quantity of Irrigation 

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

477 RATES AND METHOD OF PAYMENT FOR WATER

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

479 Delivered Water at Rates, Charges, and the Tiered Pricing Component established in accordance 
Contract No. 14-06-200-495A-LTR1 

 

24

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

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

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

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

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

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

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

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

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

489 Tiered Pricing Component as follows: 

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

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

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

493 the basis for such estimate. The Contractor shall be allowed not less than two months to review and 

494 comment on such estimates. On or before September 15 of each Calendar Year, the Contracting 

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

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

497 such notification shall revise Exhibit “B.” 

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

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

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

501 based. The Contractor shall be allowed not less than two months to review and comment on such 
Contract No. 14-06-200-495A-LTR1 

 

25

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

523 of Water Delivered during each Year pursuant to this Contract shall be made as soon as practicable 
Contract No. 14-06-200-495A-LTR1 

 

26

524 but no later than April 30th of the following Year, or 60 days after the delivery of Project Water 

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

526 last day of February. 

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

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

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

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

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

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

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

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

535 a bill for the payment of Charges and the applicable Tiered Pricing Component for Water Delivered. 

536 Adjustment for overpayment or underpayment of Charges shall be made through the adjustment of 

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

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

539 of this Contract. 

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

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

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

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

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

545 (a) of this Article. 
Contract No. 14-06-200-495A-LTR1 

 

27

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

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

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

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

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

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

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

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

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

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

556 Project and Contractor expense allocations, the disposition of all Project and Contractor revenues, 

557 and a summary of all water delivery information. The Contracting Officer and the Contractor shall 

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

559 reports, or information. 

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

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

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

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

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

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

566 effect without amending this Contract. 

567 (j) (1) Beginning at such time as deliveries of Project Water in a Year exceed 
Contract No. 14-06-200-495A-LTR1 

 

28

568 80 percent of the Contract Total, then before the end of the month following the month of delivery 

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

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

571 80 percent of the Contract Total, but less than or equal to 90 percent of the Contract Total, shall equal 

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

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

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

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

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

577 For all Water Delivered pursuant to subdivision (a) of Article 3 of this Contract which is in excess of 

578 80 percent of the Contract Total, this increment shall be deemed to be divided between Irrigation 

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

580 Water Delivered. Solely for the purpose of calculating the Tiered Pricing Component, the Full Cost 

581 Rate shall not include the interest component of the Contractor's water distribution system 

582 constructed by the United States and covered by Repayment Contract No. 14-06-200-2020A entered 

583 into pursuant to 43 USC 485h(d). 

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

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

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

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

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

589 only if such habitat values can be assured consistent with the purposes of the CVPIA through binding 
Contract No. 14-06-200-495A-LTR1 

 

29

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

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

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

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

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

595 Article 3 of this Contract. 

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

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

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

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

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

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

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

603 change. 

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

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

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

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

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

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

610 Charges are not adjusted due to inability to pay, the Rates and Charges for transferred Project Water 
Contract No. 14-06-200-495A-LTR1 

 

30

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

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

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

614 (n) Omitted. 

615 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

618 therefore. 

619 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

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

629 including environmental justice, of the proposed water transfers on both the transferor and transferee. 

630 (b) In order to facilitate efficient water management by means of water transfers of 
Contract No. 14-06-200-495A-LTR1 

 

31

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

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

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

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

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

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

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

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

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

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

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

642 alternative to evaluate not less than the quantity of Project Water historically transferred within the 

643 same geographical area. 

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

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

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

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

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

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

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

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

652 with all applicable Federal, State, and local or tribal laws and requirements imposed for protection of 
Contract No. 14-06-200-495A-LTR1 

 

32

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

654 APPLICATION OF PAYMENTS AND ADJUSTMENTS

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

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

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

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

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

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

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

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

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

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

665 in which the overpayment was made. 

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

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

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

669 refunded to the Contractor. If the actual costs exceed the Contractor's advances, the Contractor will 

670 be billed for the additional costs pursuant to Article 25 of this Contract. 

671 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

674 renewals thereof, providing for water deliveries from the Project, the Contracting Officer shall make 
Contract No. 14-06-200-495A-LTR1 

 

33

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

676 Contract. 

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

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

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

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

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

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

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

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

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

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

687 such discontinuance or reduction. 

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

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

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

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

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

693 under the Contractor. 

694 CONSTRAINTS ON THE AVAILABILITY OF WATER

695 12. (a) In its operation of the Project, the Contracting Officer will use all reasonable 
Contract No. 14-06-200-495A-LTR1 

 

34

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

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

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

699 determination as soon as practicable. 

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

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

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

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

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

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

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

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

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

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

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

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

712 from Delta Division Facilities under long-term water service or repayment contracts (or renewals 

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

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

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

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

717 service or repayment contracts then in force for the delivery of Project Water by the United States 
Contract No. 14-06-200-495A-LTR1 

 

35

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

719 referred to as the scheduled total; 

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

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

722 to as the available supply; 

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

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

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

726 as the Contractor’s proportionate share; and 

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

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

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

730 Contracting Officer under subdivision (c)(1) of this Article 12, but in no event shall such amount 

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

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

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

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

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

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

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

738 (i) the sufficiency of the Central Valley Project M&I Water Shortage Policy; (ii) the substance of 
Contract No. 14-06-200-495A-LTR1 

 

36

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

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

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

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

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

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

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

746 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

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

751 RULES AND REGULATIONS

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

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

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

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

756 WATER AND AIR POLLUTION CONTROL

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

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

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

760 QUALITY OF WATER
Contract No. 14-06-200-495A-LTR1 

 

37

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

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

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

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

765 3050) or other existing Federal laws. The United States is under no obligation to construct or furnish 

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

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

768 Contractor pursuant to this Contract. 

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

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

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

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

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

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

775 (c) The Contracting Officer shall notify the Contractor in writing when drainage 

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

777 Contractor at rates established pursuant to the then-existing ratesetting policy for Irrigation Water; 

778 Provided, That such ratesetting policy shall be amended, modified, or superseded only through the 

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

780 WATER ACQUIRED BY THE CONTRACTOR

781 OTHER THAN FROM THE UNITED STATES
Contract No. 14-06-200-495A-LTR1 

 

38

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

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

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

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

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

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

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

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

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

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

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

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

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

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

796 CFR 426.15. In determining the incremental fee, the Contracting Officer will calculate annually the 

797 cost to the Federal Government, including interest, of storing or delivering non-Project water, which 

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

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

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

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

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

803 receives non-Project water through Federally financed or constructed facilities. The incremental fee 
Contract No. 14-06-200-495A-LTR1 

 

39

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

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

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

807 regulation, or policy is adopted it shall supersede this provision. 

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

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

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

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

812 necessary, consistent with the following provisions: 

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

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

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

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

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

818 superseded from time to time. 

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

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

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

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

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

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

825 shall be responsible for control, care or distribution of the non-Project water before it is introduced 
Contract No. 14-06-200-495A-LTR1 

 

40

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

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

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

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

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

831 into Project facilities. 

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

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

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

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

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

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

838 by the Contracting Officer for conveyance and transportation of non-Project water prior to any such 

839 remaining capacity being made available to non-Project contractors. Other Project Contractors shall 

840 have a second priority to any remaining capacity of facilities declared to be available by the 

841 Contracting Officer for conveyance and transportation of non-Project water prior to any such 

842 remaining capacity being made available to non-Project contractors. 

843 OPINIONS AND DETERMINATIONS

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

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

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

847 determinations. Both parties, notwithstanding any other provisions of this Contract, expressly 
Contract No. 14-06-200-495A-LTR1 

 

41

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

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

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

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

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

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

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

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

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

857 the extent reasonably practicable. 

858 COORDINATION AND COOPERATION

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

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

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

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

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

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

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

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

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

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

869 other affected Project Contractors, and the Contracting Officer shall arrange to meet with interested 
Contract No. 14-06-200-495A-LTR1 

 

42

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

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

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

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

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

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

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

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

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

879 improve water supply, water quality, and reliability. 

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

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

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

883 (3) The Secretary will coordinate with Project Contractors and the State of 

884 California to seek improved water resource management. 

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

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

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

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

889 activities, and other issues as appropriate. 

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

891 the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 
Contract No. 14-06-200-495A-LTR1 

 

43

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

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

894 the physical integrity of structures or facilities. 

895 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

899 When a payment becomes 60 days delinquent, the Contractor shall pay an administrative charge to 

900 cover additional costs of billing and processing the delinquent payment. When a payment is 

901 delinquent 90 days or more, the Contractor shall pay an additional penalty charge of six percent per 

902 year for each day the payment is delinquent beyond the due date. Further, the Contractor shall pay 

903 any fees incurred for debt collection services associated with a delinquent payment. 

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

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

906 interest rate of one-half of one percent per month prescribed by Section 6 of the Reclamation Project 

907 Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due date and 

908 remain fixed for the duration of the delinquent period. 

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

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

911 accrued interest, and finally to the overdue payment. 

912 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

922 the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

923 (b) The Contractor will, in all solicitations or advertisements for employees placed 
Contract No. 14-06-200-495A-LTR1 

 

44

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

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

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

927 which it has a collective bargaining agreement or other contract or understanding, a notice, to be 

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

929 Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and 

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

931 employment. 

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

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

934 the Secretary of Labor. 

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

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

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

938 and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, 

939 regulations, and orders. 

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

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

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

943 for further Government contracts in accordance with procedures authorized in said amended 

944 Executive Order, and such other sanctions may be imposed and remedies invoked as provided in said 

945 Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided 

946 by law. 

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

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

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

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

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

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

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

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

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

956 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

959 may be distributed among the Contractor's water users and notwithstanding the default of individual 

960 water users in their obligations to the Contractor. 
Contract No. 14-06-200-495A-LTR1 

 

45

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

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

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

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

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

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

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

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

969 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

970 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 (42 

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

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

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

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

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

976 of race, color, national origin, handicap, or age, be excluded from participation in, be denied the 

977 benefits of, or be otherwise subjected to discrimination under any program or activity receiving 

978 financial assistance from the Bureau of Reclamation. By executing this Contract, the Contractor 

979 agrees to immediately take any measures necessary to implement this obligation, including 

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

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

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

983 assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, including 

984 installment payments after such date on account of arrangements for Federal financial assistance 

985 which were approved before such date. The Contractor recognizes and agrees that such Federal 

986 assistance will be extended in reliance on the representations and agreements made in this Article, 

987 and that the United States reserves the right to seek judicial enforcement thereof. 

988 PRIVACY ACT COMPLIANCE

989 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) (the 

990 Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et seq.) in 

991 maintaining Landholder acreage certification and reporting records, required to be submitted to the 

992 Contractor for compliance with Sections 206 and 228 of the Reclamation Reform Act of 1982 (96 

993 Stat. 1266), and pursuant to 43 CFR 426.18. 

994 (b) With respect to the application and administration of the criminal penalty 
Contract No. 14-06-200-495A-LTR1 

 

46

995 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees responsible 

996 for maintaining the certification and reporting records referenced in (a) above are considered to be 

997 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

998 (c) The Contracting Officer or a designated representative shall provide the 

999 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau of 

1000 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

1001 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

1002 contained in the Landholder's certification and reporting records. 

1003 (d) The Contracting Officer shall designate a full-time employee of the Bureau of 

1004 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

1005 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

1006 authorized to grant requests by individuals for access to their own records. 

1007 (e) The Contractor shall forward promptly to the System Manager each proposed 

1008 denial of access under 43 CFR 2.64; and each request for amendment of records filed under 43 CFR 

1009 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

1010 information and records necessary to prepare an appropriate response to the requester. These 

1011 requirements do not apply to individuals seeking access to their own certification and reporting forms 

1012 filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the Privacy 

1013 Act as a basis for the request. 

1014 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1015 25. In addition to all other payments to be made by the Contractor pursuant to this 

1016 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1017 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

1018 direct cost incurred by the United States for work requested by the Contractor associated with this 

1019 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

1020 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

1021 writing in advance by the Contractor. This Article shall not apply to costs for routine contract 

1022 administration. 
Contract No. 14-06-200-495A-LTR1 

 

47

1023 WATER CONSERVATION

1024 26. (a) Prior to the delivery of water provided from or conveyed through Federally 

1025 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

1026 implementing an effective water conservation and efficiency program based on the Contractor's water 

1027 conservation plan that has been determined by the Contracting Officer to meet the conservation and 

1028 efficiency criteria for evaluating water conservation plans established under Federal law. The water 

1029 conservation and efficiency program shall contain definite water conservation objectives, appropriate 

1030 economically feasible water conservation measures, and time schedules for meeting those objectives. 

1031 Continued Project Water delivery pursuant to this Contract shall be contingent upon the Contractor’s 

1032 continued implementation of such water conservation program. In the event the Contractor's water 

1033 conservation plan or any revised water conservation plan completed pursuant to subdivision (d) of 

1034 this Article 26 have not yet been determined by the Contracting Officer to meet such criteria, due to 

1035 circumstances which the Contracting Officer determines are beyond the control of the Contractor, 

1036 water deliveries shall be made under this Contract so long as the Contractor diligently works with the 

1037 Contracting Officer to obtain such determination at the earliest practicable date, and thereafter the 

1038 Contractor immediately begins implementing its water conservation and efficiency program in 

1039 accordance with the time schedules therein. 

1040 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1041 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

1042 the Best Management Practices identified by the time frames issued by the California Urban Water 

1043 Conservation Council for such M&I Water unless any such practice is determined by the Contracting 

1044 Officer to be inappropriate for the Contractor. 
Contract No. 14-06-200-495A-LTR1 

 

48

1045 (c) The Contractor shall submit to the Contracting Officer a report on the status of 

1046 its implementation of the water conservation plan on the reporting dates specified in the then-existing 

1047 conservation and efficiency criteria established under Federal law. 

1048 (d) At five-year intervals, the Contractor shall revise its water conservation plan to 

1049 reflect the then-current conservation and efficiency criteria for evaluating water conservation plans 

1050 established under Federal law and submit such revised water management plan to the Contracting 

1051 Officer for review and evaluation. The Contracting Officer will then determine if the water 

1052 conservation plan meets Reclamation’s then-current conservation and efficiency criteria for 

1053 evaluating water conservation plans established under Federal law. 

1054 (e) If the Contractor is engaged in direct groundwater recharge, such activity shall 

1055 be described in the Contractor’s water conservation plan. 

1056 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1057 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

1058 Contract shall not be applicable to or affect non-Project water or water rights now owned or hereafter 

1059 acquired by the Contractor or any user of such water within the Contractor's Service Area. Any such 

1060 water shall not be considered Project Water under this Contract. In addition, this Contract shall not 

1061 be construed as limiting or curtailing any rights which the Contractor or any water user within the 

1062 Contractor's Service Area acquires or has available under any other contract pursuant to Federal 

1063 Reclamation law. 

1064 OPERATION AND MAINTENANCE BY 

1065 SAN LUIS & DELTA-MENDOTA WATER AUTHORITY

1066 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, and 
Contract No. 14-06-200-495A-LTR1 

 

49

1067 responsibility for funding a portion of the costs of such O&M, have been transferred to the San Luis 

1068 & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement (8-07-

1069 20-X0354) between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

1070 Water Authority. That separate agreement shall not interfere with or affect the rights or obligations 

1071 of the Contractor or the United States hereunder. 

1072 (b) The Contracting Officer has previously notified the Contractor in writing that 

1073 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

1074 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

1075 Contractor shall pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1076 Authority, or to any successor approved by the Contracting Officer under the terms and conditions of 

1077 the separate agreement between the United States and Operating Non-Federal Entity San Luis & 

1078 Delta-Mendota Water Authority, described in subdivision (a) of this Article, all rates, charges, or 

1079 assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

1080 Entity San Luis & Delta-Mendota Water Authority, or such successor determines, sets, or establishes 

1081 for the O&M of the portion of the Project facilities operated and maintained by Operating Non1082 Federal Entity San Luis & Delta-Mendota Water Authority, or such successor. Such direct payments 

1083 to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

1084 not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

1085 of the Project Rates, Charges, and Tiered Pricing Components except to the extent the Operating 

1086 Non-Federal Entity collects payments on behalf of the United States in accordance with subdivision 

1087 (a) of this Article. 

1088 (c) For so long as the O&M of any portion of the Project facilities serving the 
Contract No. 14-06-200-495A-LTR1 

 

50

1089 Contractor is performed by Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1090 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 

1091 Rates for Water Delivered under this Contract representing the cost associated with the activity being 

1092 performed by Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or its 

1093 successor. 

1094 (d) In the event the O&M of the Project facilities operated and maintained by 

1095 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

1096 United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

1097 in writing, and present to the Contractor a revised Exhibit “B” which shall include the portion of the 

1098 Rates to be paid by the Contractor for Project Water under this Contract representing the O&M costs 

1099 of the portion of such Project facilities which have been re-assumed. The Contractor shall, thereafter, 

1100 in the absence of written notification from the Contracting Officer to the contrary, pay the Rates, 

1101 Charges, and the Tiered Pricing Component specified in the revised Exhibit “B” directly to the 

1102 United States in compliance with Article 7 of this Contract. 

1103 OPERATION AND MAINTENANCE BY 

1104 CALIFORNIA DEPARTMENT OF WATER RESOURCES

1105 28.1 (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

1106 responsibility for funding a portion of the costs of such O&M, have been transferred to the California 

1107 Department of Water Resources, an Operating Non-Federal Entity by a separate agreement (14-06-

1108 200-9755) between the United States and Operating Non-Federal Entity California Department of 

1109 Water Resources. This separate agreement shall not interfere with or affect the rights or obligations 

1110 of the Contractor or the United States hereunder. 
Contract No. 14-06-200-495A-LTR1 

 

51

1111 (b) The Contracting Officer has previously notified the Contractor in writing that 

1112 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

1113 Operating Non-Federal Entity California Department of Water Resources, and the Contractor shall 

1114 pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or to any 

1115 successor approved by the Contracting Officer under the terms and conditions of the separate 

1116 agreement between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

1117 Water Authority, described in subdivision (a) of Article 28 of this Contract, all rates, charges, or 

1118 assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

1119 Entity California Department of Water Resources, or such successor determines, sets, or establishes 

1120 for the O&M of the portion of the Project facilities operated and maintained by Operating Non1121 Federal Entity California Department of Water Resources, or such successor. Such direct payments 

1122 to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

1123 not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

1124 of the Project Rates, Charges, and Tiered Pricing Components except to the extent the Operating 

1125 Non-Federal Entity collects payments on behalf of the United States in accordance with the separate 

1126 agreement identified in subdivision (a) of Article 28 of this Contract. 

1127 (c) For so long as the O&M of any portion of the Project facilities serving the 

1128 Contractor is performed by Operating Non-Federal Entity California Department of Water Resources, 

1129 or any successor thereto, the Contracting Officer shall adjust those components of the Rates for 

1130 Water Delivered under this Contract representing the cost associated with the activity being 

1131 performed by Operating Non-Federal Entity California Department of Water Resources, or its 

1132 successor. 
Contract No. 14-06-200-495A-LTR1 

 

52

1133 (d) In the event the O&M of the Project facilities operated and maintained by 

1134 Operating Non-Federal Entity California Department of Water Resources is re-assumed by the 

1135 United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

1136 in writing, and present to the Contractor a revised Exhibit “B” which shall include the portion of the 

1137 Rates, Charges, and the Tiered Pricing Component to be paid by the Contractor for Project Water 

1138 under this Contract representing the O&M costs of the portion of such Project facilities which have 

1139 been re-assumed. The Contractor shall, thereafter, in the absence of written notification from the 

1140 Contracting Officer to the contrary, pay the Rates, Charges, and Tiered Pricing Component(s) 

1141 specified in the revised Exhibit “B” directly to the United States in compliance with Article 7 of this 

1142 Contract. 

1143 OPERATION AND MAINTENANCE BY THE CONTRACTOR

1144 28.2 (a) During the term of this Contract, the Contractor shall act as the Operating 

1145 Non-Federal Entity for a portion of the Project facilities which serves the Department of Fish and 

1146 Game, the City of Huron, and the City of Coalinga, including but not limited to the Coalinga Canal 

1147 System, which consists in part of the Coalinga Canal and turnouts and Pleasant Valley Pumping 

1148 Plant. The Contractor, without expense to the United States, shall care for, operate, and maintain 

1149 such portion of the Project facilities for the furnishing of water to the Department of Fish and Game, 

1150 the City of Huron, and the City of Coalinga in full compliance with Federal Reclamation law and in 

1151 such manner that they will remain in good and efficient condition; Provided, That the United States 

1152 shall finance the costs of all major replacements of such facilities that the Contracting Officer 

1153 determines are needed; Provided further, That if the Department of Fish and Game, the City of 

1154 Huron, or the City of Coalinga fails to pay to the Contractor in advance such entity’s share of the 
Contract No. 14-06-200-495A-LTR1 

 

53

1155 O&M costs, consistent with any agreements between the Contractor and the Department of Fish and 

1156 Game, the City of Huron, or the City of Coalinga, respectively, the Contractor shall be relieved of its 

1157 obligation to the O&M of such facilities for the benefit of the non-paying entity. 

1158 (b) The Contracting Officer previously notified the Department of Fish and Game, 

1159 the City of Huron, and the City of Coalinga in writing that the O&M of a portion of the Project 

1160 facilities which serves the Department of Fish and Game, the City of Huron, and the City of Coalinga 

1161 has been transferred to the Contractor. Therefore, the Department of Fish and Game and the City of 

1162 Huron have entered, and the City of Coalinga is expected to enter, separate agreements with the 

1163 Contractor providing the terms and conditions pursuant to which the Contractor will operate and 

1164 maintain a portion of the Project facilities which serves the Department of Fish and Game, the City of 

1165 Huron, and the City of Coalinga, including the amount(s) the Department of Fish and Game, the City 

1166 of Huron, and the City of Coalinga are to pay the Contractor for that service. Consistent with any 

1167 such agreements, the Department of Fish and Game, the City of Huron, and the City of Coalinga shall 

1168 pay directly to the Contractor all rates, charges, or assessments of any kind, including any assessment 

1169 for reserve funds, which the Contractor sets, or establishes for a portion of the Project facilities which 

1170 serves the Department of Fish and Game, the City of Huron, and the City of Coalinga and is operated 

1171 and maintained by the Contractor. Such direct payments to the Contractor shall not relieve the 

1172 Contractor of its obligation to pay directly to the United States the Department of Fish and Game, the 

1173 City of Huron, and the City of Coalinga its share of the Project Rates, Charges, and Tiered Pricing 

1174 Components referred to in this Contract. 

1175 (c) For so long as the O&M for a portion of the Project facilities which serves the 

1176 Department of Fish and Game, the City of Huron, and the City of Coalinga is performed by the 
Contract No. 14-06-200-495A-LTR1 

 

54

1177 Contractor, the Contracting Officer shall adjust those components of the Rates for Water Delivered 

1178 under the Contracts representing the cost associated with the activity being performed by the 

1179 Contractor. 

1180 (d) The United States may re-assume O&M for a portion of the Project facilities 

1181 which serves the Department of Fish and Game, the City of Huron, and the City of Coalinga. In that 

1182 event, the Contracting Officer shall so notify the Department of Fish and Game, the City of Huron, 

1183 and the City of Coalinga, in writing, and present to the Contractor a revised Exhibit “B” which shall 

1184 include the portion of the Rates, Charges, and Tiered Pricing Component(s) to be paid by the 

1185 Department of Fish and Game, the City of Huron, and the City of Coalinga for Project Water under 

1186 this Contract representing the O&M costs for a portion of the Project facilities which serves the 

1187 Department of Fish and Game, the City of Huron, and the City of Coalinga. The Department of Fish 

1188 and Game, the City of Huron, and the City of Coalinga shall, thereafter, in the absence of written 

1189 notification from the Contracting Officer to the contrary, pay the Rates, Charges, and Tiered Pricing 

1190 Component(s) specified in the revised Exhibit “B” directly to the United States in compliance with 

1191 Article 7 of their contracts. The Contractor shall, thereafter, be relieved of all of its obligations under 

1192 this Article 28.2. 

1193 PUMPING PLANTS, POWER FOR PUMPING PLANTS, AND TRANSFER

1194 OF OPERATION AND MAINTENANCE TO THE CONTRACTOR

 

1195 28.3. (a) The United States shall furnish and install pumping plants and furnish the 

1196 amount of Project power the Contracting Officer determines is necessary to deliver Project Water to 

1197 the Contractor from the Delta-Mendota, San Luis, and Coalinga Canals, including the Pleasant 

1198 Valley Pumping Plant, at the point(s) of delivery identified pursuant to subdivision (a) of Article 5 of 
Contract No. 14-06-200-495A-LTR1 

 

55

1199 this Contract at heads and elevations sufficient to irrigate by gravity the areas within the Contractor’s 

1200 Service Area below 700 feet mean sea level elevation. 

1201 (b) With advance approval of the Contracting Officer, the Contractor may, at its 

1202 own expense, furnish and install pumping facilities, and related electrical equipment, to enable it to 

1203 divert and deliver Project Water from the Delta-Mendota, San Luis, and Coalinga Canals and the 

1204 Pleasant Valley Pumping Plant before the United States furnishes and installs all the pumping plants 

1205 referred to in subdivision (a) of this Article. The United States shall furnish the amount of Project 

1206 power needed to operate such pumping facilities; Provided, That the Contractor maintains an 

1207 agreement with an entity to convey such power to such facilities, and the Contractor agrees to pay 

1208 any and all charges assessed by that entity for such service. 

1209 (c) The furnishing of power by the United States shall be in conformance with 

1210 operating criteria, rules, and regulations, including the project use power policy, established by the 

1211 Contracting Officer; Provided, That any such operating criteria, rules, and regulations, including the 

1212 project use power policy, established by the Contracting Officer shall not excuse the United States 

1213 from its obligation under subdivision (a) of this Article. Such operating criteria, rules, and 

1214 regulations shall be developed in cooperation with the Contractor and shall be based on acceptable 

1215 irrigation management practices and the power generation capacity available to the United States for 

1216 the furnishing of Project water to the Contractor. 

1217 (d) The Contractor hereby agrees to operate and maintain, at its own expense, all 

1218 of the pumping facilities described in subdivisions (a) and (b) of this Article in such a manner that 

1219 they remain in good and efficient condition; Provided, That the United States shall finance the costs 

1220 of all major replacements that the Contracting Officer determines are needed. 
Contract No. 14-06-200-495A-LTR1 

 

56

1221 (e) The Contracting Officer or his representative shall at all times have access to 

1222 and may inspect and investigate the pumping facilities for the purpose of ascertaining if they are 

1223 being kept in safe and proper operating condition. 

 

1224 (f) No change in any of the pumping facilities, which in the opinion of the 

1225 Contracting Officer is substantial, shall be made by the Contractor without first obtaining the written 

1226 consent of the Contracting Officer. The Contractor shall promptly make any and all repairs and 

1227 replacements to the pumping facilities which in the opinion of the Contracting Officer are necessary. 

1228 In the event the Contractor neglects or fails to make such repairs and replacements or in the event of 

1229 operation by the United States of the pumping facilities pursuant to subdivision (g) of this Article, 

1230 the United States may cause the repairs and replacements to be made and the cost thereof, as 

1231 determined by the Contracting Officer, shall be paid by the Contractor to the United States upon 

1232 notice of the payment due but not later than April 1 of the year following that during which such 

1233 work was completed. 

1234 (g) In the event the Contracting Officer determines that the Contractor has not 

1235 properly cared for, operated, and maintained said pumping facilities or has failed to comply with any 

1236 of the provisions of this Article, then at the election of the Contracting Officer the United States may 

1237 take over from the Contractor the care and O&M of the pumping facilities by giving written notice to 

1238 the Contractor of such election and the effective date thereof. Thereafter, during the period of 

1239 operation by the United States, the Contractor shall pay to the United States in advance of the use of 

1240 such pumping facilities the Contractor’s share of the cost of O&M thereof and replacements 

1241 therefore, as fixed in notices from the Contracting Officer. In the event such advances are inadequate 
Contract No. 14-06-200-495A-LTR1 

 

57

1242 to properly care for, operate, and maintain the pumping facilities to the end of any year, the 

1243 Contracting Officer may give written notice of a supplemental O&M charge and the Contractor shall 

1244 pay such amount on or before the date specified in said notice. Any amount of such advances 

1245 remaining unexpended or unobligated, at the option of the Contractor, either shall be refunded or 

1246 credited upon amounts to become due to the United States from the Contractor under the provisions 

1247 of this Contract in subsequent years. The pumping facilities so taken back by the United States may 

1248 be returned to the Contractor upon the furnishing to the Contractor of a written 90-day notice of 

1249 intention to retransfer. 

1250 (h) The Contractor shall hold the United States, its officers, and employees 

1251 harmless from every and all claim for damages to persons or property arising out of or connected 

1252 with the Contractor’s O&M of the pumping facilities referred to in this Article; Provided, That 

1253 nothing contained herein shall be construed as an assumption of liability by the Contractor to parties 

1254 other than the United States with respect to such matters. 

1255 (i) During the time the pumping facilities are operated and maintained by the 

1256 Contractor, in addition to all other payments to be made by the Contractor under this Contract, the 

1257 Contractor shall pay to the United States pursuant to Article 25 hereof, costs incurred by the United 

1258 States for work associated with the pumping facilities under this Contract normally charged by the 

1259 United States to water users and properly and equitably chargeable to the Contractor. 

1260 (j) The Contracting Officer may make review of any part or all of the pumping 

1261 facilities being operated by the Contractor pursuant to this Article to assist the Contractor in 

1262 assessing the condition of facilities and the adequacy of the maintenance program(s). The 

1263 Contracting Officer shall prepare reports based on the examinations, inspections or audits, and 
Contract No. 14-06-200-495A-LTR1 

 

58

1264 furnish copies of such reports and any recommendations to the Contractor. The Contractor shall 

1265 reimburse the actual cost 

1266 incurred by the United States in making O&M examinations, inspections, and audits, and preparing 

1267 associated reports and recommendations. 

1268 (k) If deemed necessary by the Contracting Officer or requested by the Contractor, 

1269 special inspections of the pumping facilities being operated by the Contractor and of the Contractor’s 

1270 books and records may be made to ascertain the extent of any O&M deficiencies, to determine the 

1271 remedial measures required for their correction, and to assist the Contractor in solving specific 

1272 problems. Any special inspection or audit shall, except in a case of emergency, be made after written 

1273 notice to the Contractor and the actual cost thereof shall be paid by the Contractor to the United 

1274 States.

1275 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1276 29. The expenditure or advance of any money or the performance of any obligation of the 

1277 United States under this Contract shall be contingent upon appropriation or allotment of funds. 

1278 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

1279 under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

1280 or allotted. 

1281 BOOKS, RECORDS, AND REPORTS

1282 30. (a) The Contractor shall establish and maintain accounts and other books and 

1283 records pertaining to administration of the terms and conditions of this Contract, including: the 

1284 Contractor's financial transactions, water supply data, and Project land and right-of-way agreements; 

1285 the water users' land-use (crop census), land ownership, land-leasing and water use data; and other 

1286 matters that the Contracting Officer may require. Reports thereon shall be furnished to the 

1287 Contracting Officer in such form and on such date or dates as the Contracting Officer may require. 

1288 Subject to applicable Federal laws and regulations, each party to this Contract shall have the right 

1289 during office hours to examine and make copies of the other party's books and records relating to 

1290 matters covered by this Contract. 
Contract No. 14-06-200-495A-LTR1 

 

59

1291 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

1292 records, or other information shall be requested from the Contractor by the Contracting Officer unless 

1293 such books, records, or information are reasonably related to the administration or performance of 

1294 this Contract. Any such request shall allow the Contractor a reasonable period of time within which 

1295 to provide the requested books, records, or information. 

1296 (c) At such time as the Contractor provides information to the Contracting Officer 

1297 pursuant to subdivision (a) of this Article, a copy of such information shall be provided to the 

1298 Operating Non-Federal Entity. 

1299 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1300 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1301 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1302 therein shall be valid until approved in writing by the Contracting Officer. 

1303 (b) The assignment of any right or interest in this Contract by either party shall not 

1304 interfere with the rights or obligations of the other party to this Contract absent the written 

1305 concurrence of said other party. 

1306 (c) The Contracting Officer shall not unreasonably condition or withhold approval 

1307 of any proposed assignment. 

1308 SEVERABILITY

1309 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1310 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1311 association or other form of organization whose primary function is to represent parties to Project 

1312 contracts, brings an action in a court of competent jurisdiction challenging the legality or 
Contract No. 14-06-200-495A-LTR1 

 

60

1313 enforceability of a provision included in this Contract and said person, entity, association, or 

1314 organization obtains a final court decision holding that such provision is legally invalid or 

1315 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

1316 parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

1317 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

1318 within three months thereafter promptly agree on the appropriate revision(s). The time periods 

1319 specified above may be extended by mutual agreement of the parties. Pending the completion of the 

1320 actions designated above, to the extent it can do so without violating any applicable provisions of 

1321 law, the United States shall continue to make the quantities of Project Water specified in this 

1322 Contract available to the Contractor pursuant to the provisions of this Contract which were not found 

1323 to be legally invalid or unenforceable in the final court decision. 

1324 RESOLUTION OF DISPUTES

1325 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

1326 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

1327 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

1328 any matter to the Department of Justice, the party shall provide to the other party 30 days’ written 

1329 notice of the intent to take such action; Provided, That such notice shall not be required where a 

1330 delay in commencing an action would prejudice the interests of the party that intends to file suit. 

1331 During the 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in 

1332 an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

1333 waive or abridge any right or remedy that the Contractor or the United States may have. 
Contract No. 14-06-200-495A-LTR1 

 

61

1334 OFFICIALS NOT TO BENEFIT

1335 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1336 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1337 manner as other water users or landowners. 

1338 CHANGES IN CONTRACTOR’S SERVICE AREA

1339 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

1340 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

1341 except upon the Contracting Officer's written consent. 

1342 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1343 Officer will notify the Contractor of any additional information required by the Contracting Officer 

1344 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1345 timely completion of the process. Such process will analyze whether the proposed change is likely 

1346 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of 

1347 the Contractor to pay for Project Water furnished under this Contract or to pay for any Federally1348 constructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

1349 Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply with 

1350 the NEPA and the ESA. The Contractor will be responsible for all costs incurred by the Contracting 

1351 Officer in this process, and such costs will be paid in accordance with Article 25 of this Contract. 

1352 FEDERAL LAWS

1353 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1354 validity or application in connection with the performance of the terms and conditions of this 

1355 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

1356 terms and conditions of this Contract unless and until relief from application of such Federal law or 

1357 regulation to the implementing provision of the Contract is granted by a court of competent 
Contract No. 14-06-200-495A-LTR1 

 

62

1358 jurisdiction. 

1359 NOTICES

1360 37. Any notice, demand, or request authorized or required by this Contract shall be 

1361 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 

1362 to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, California 93721, 

1363 and on behalf of the United States, when mailed, postage prepaid, or delivered to the Board of 

1364 Directors of the Westlands Water District, P. O. Box 6056, Fresno, California 93703-6056. The 

1365 designation of the addressee or the address may be changed by notice given in the same manner as 

1366 provided in this Article for other notices. 

1367 CONFIRMATION OF CONTRACT

1368 38. The Contractor, after the execution of this Contract, shall promptly seek to secure a 

1369 decree of a court of competent jurisdiction of the State of California, confirming the execution of this 

1370 Contract. The Contractor shall furnish the United States a certified copy of the final decree, the 

1371 validation proceedings, and all pertinent supporting records of the court approving and confirming 

1372 this Contract, and decreeing and adjudging it to be lawful, valid, and binding on the Contractor. 
Contract No. 14-06-200-495A-LTR1 

 

63

1373 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

1374 year first above written. 

1375 

1376 THE UNITED STATES OF AMERICA 

1377 By: _________________________________________ 

1378 Regional Director, Mid-Pacific Region 

1379 Bureau of Reclamation 

1380 (SEAL) 

1381 WESTLANDS WATER DISTRICT 

1382 By: _________________________________ 

1383 President of the Board of Directors 

1384 Attest: 

1385 By: __________________________________ 

1386 Secretary of the Board of Directors 

1387 (H:\pub 440\LTRC\Final Draft LTRC’s – Fresno, Tracy\11-01-04 Westlands Water District Final 

1388 Draft LTRC with exhibits.doc) 
Contract No. 14-06-200-495A-LTR1

 EXHIBIT A

 [Map or Description of Service Area] 
Contract No. 14-06-200-495A-LTR1

EXHIBIT B

WESTLANDS WATER DISTRICT

2005 Water Rates and Charges

2005 Rates Per Acre-Foot

 Irrigation Water Irrigation Water M&I Water

COST-OF-SERVICE (COS) RATES: SLC DMC

Capital Rates: $15.78 $ 6.52 $18.72 

 

O&M Rates: 

 Water Marketing $ 6.61 $ 6.61 $ 3.89 

 Storage $ 5.93 $ 5.93 $ 6.67 

 Conveyance * * 

 Direct Pumping (Project Use Energy) $ 2.60 $ 2.39 

 Tracy Pumping * * 

 San Luis Drain $ 0.71 

 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing 

TOTAL COS RATES: $31.63 $19.06 $31.67 

 

M&I FULL-COST RATE: $42.58 

 

Tiered Pricing Component >80% <=90% of Contract 

 Total [Full Cost Rate - COS Rate /2]: 

Tiered Pricing Component >90% of Contract 

 Total [Full Cost Rate - COS Rate]: 

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. $55.20 $43.32 

 

205 FULL-COST RATES: 

SECTION 205(a)(3) Rate is applicable to a Qualified Recipient 

or to a Limited Recipient that did not receive irrigation water on 

or before October 1, 1981. $70.01 $56.47 

 

SURCHARGES UNDER P.L. 102-575 

TO RESTORATION FUND** $ 7.93 $ 7.93 $15.87 

* Conveyance and Conveyance Pumping Operation and maintenance costs were removed for ratesetting 

purposes and are to be billed directly to the water authorities. 

** The surcharges are payments in addition to the water rates and were determined pursuant to Title XXXIV of 

Public Law 102-575. Restoration fund surcharges under P.L. 102-575 are on a fiscal year basis 

(10/1-9/30). 
Contract No. 14-06-200-495A-LTR1