M&I Only 

R. O. CVP-Wide Draft 6/22-2004 

Forest Service (Centimudi) Draft 3/11-2004 

Forest Service (Centimudi) Draft 3/08-2004 

Contract No. 

14-06-200-3464A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

MEMORANDUM OF AGREEMENT WITH THE FOREST SERVICE

 FOR DIVERSION OF WATER

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals............................................................................................ 1-4 

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

 2 Term of Contract.................................................................................................. 7-8

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

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

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

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

 7 Rates and Method of Payment for Water......................................................... 14-20 

 8 Non-Interest Bearing Operation and Maintenance Deficits ................................. 20 

 9 Sales, Transfers, or Exchanges of Water .............................................................. 20 

 10 Application of Payments and Adjustments........................................................... 20 

 11 Temporary Reductions--Return Flows ................................................................. 20 

 12 Constraints on the Availability of Water ......................................................... 21-22 

 13 Unavoidable Groundwater Percolation................................................................. 22 

 14 Rules and Regulations .......................................................................................... 22 

 15 Water and Air Pollution Control........................................................................... 22 

 16 Quality of Water .............................................................................................. 22-23 

 17 Water Acquired by the Contractor Other Than From the United States .............. 23 

 18 Opinions and Determinations .......................................................................... 23-24 

 19 Coordination and Cooperation......................................................................... 24-26 

 20 Charges for Delinquent Payments ........................................................................ 26 
Contract No. 14-06-200-3464A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity................................................................................................. 26 

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 26 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 26 

 24 Privacy Act Compliance ....................................................................................... 26 

 25 --Contractor to Pay Certain Miscellaneous Costs............................................ 26-27 

 26 Water Conservation ......................................................................................... 27-28 

 27 Existing or Acquired Water or Water Rights........................................................ 28 

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

 29 Contingent on Appropriation or Allotment of Funds ...................................... 28-29 

 30 Books, Records, and Reports................................................................................ 29 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 29 

 32 Severability ...................................................................................................... 29-30 

 33 Resolution of Disputes.......................................................................................... 30 

 34 Officials Not to Benefit......................................................................................... 30 

 35 Changes in Contractor’s Service Area............................................................. 30-31 

 36 Federal Laws......................................................................................................... 30 

 37 Notices .................................................................................................................. 31

 38 Confirmation of Contract...................................................................................... 31 

 Signature Page ...................................................................................................... 32 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
M&I Only 

R. O. CVP-Wide Draft 6/22-2004 

Forest Service (Centimudi) Draft 3/11-2004 

Forest Service (Centimudi) Draft 3/08-2004 

Contract No. 

14-06-200-3464A-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 MEMORANDUM OF AGREEMENT WITH THE FOREST SERVICE

6 FOR DIVERSION OF WATER

7 THIS Memorandum of Agreement (MOA), made this _____ day of 

8 ____________________, 20___, in pursuance generally of the Act of June 17, 1902 (32 Stat. 

9 388), and acts amendatory or supplementary thereto, including, but not limited to, the Acts of 

10 August 26, 1937 (50 Stat. 844), as amended and supplemented, August 4, 1939 (53 Stat. 1187), 

11 as amended and supplemented, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), 

12 October 12, 1982 (96 Stat. 1263), October 27, 1986 (100 Stat. 3050), as amended, and Title 

13 XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all collectively hereinafter referred to 

14 as Federal Reclamation law, between THE UNITED STATES OF AMERICA, hereinafter 

15 referred to as the United States, and the FOREST SERVICE, United States Department of 

16 Agriculture, hereinafter referred to as the Contractor, represented by the Regional Forester, 

17 California Region; 

18 WITNESSETH, THAT: 

19 EXPLANATORY RECITALS

 [1st 20 ] WHEREAS, the United States has constructed and is operating the Central Valley 

21 Project (Project), California, for diversion, storage, carriage, distribution and beneficial use, for 
Contract No. 14-06-200-3464A-LTR1 

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

23 and restoration, generation and distribution of electric energy, salinity control, navigation and 

24 other beneficial uses, of waters of the Sacramento River, the American River, the Trinity River, 

25 and the San Joaquin River and their tributaries; and 

 [2nd 26 ] WHEREAS, the United States constructed the Shasta Dam pumping facilities and 

27 the Toyon Pipeline, hereinafter collectively referred to as the Shasta Division facilities, which 

28 will be used in part for the furnishing of water to the Contractor pursuant to the terms of this 

29 MOA; and 

 [3rd 30 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

32 [3.1] WHEREAS, the Contractor has a continuing need of a water supply from the 

33 Shasta Division facilities for municipal, industrial, and domestic use to its Centimudi Marina 

34 Project which is located on Shasta Lake in Section 14, Township 33 North, Range 5 West, 

35 Mt. Diablo Meridian; and 

 [4th 36 ] WHEREAS, the Contractor and the United States entered into Contract 

37 No. 14-06-200-3464A, which established terms for the delivery to the Contractor of Project 

38 Water from the Shasta Division facilities from November 8, 1967, until terminated by mutual 

39 agreement of Reclamation and the Contractor, hereinafter referred to as the “Existing Contract”; 

40 and 

 [5th 41 ] WHEREAS, the United States and the Contractor have, pursuant to subsection 

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

43 binding agreement, identified as Binding Agreement No. 14-06-200-3464A-BA, which sets out 

44 the terms pursuant to which the Contractor agreed to renew the Existing Contract before its 
Contract No. 14-06-200-3464A-LTR1 

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45 expiration date after completion of a programmatic environmental impact statement and other 

46 appropriate environmental documentation and negotiation of a renewal contract, and which also 

47 sets out the consequences of a subsequent decision not to renew; and 

 [6th 48 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

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

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

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

 [7th 53 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 55 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 58 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

59 of its obligations under the Existing Contract; and 

 [10th 60 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

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

62 reasonable and beneficial use and, based upon a needs analysis cooperatively prepared by the 

63 Contracting Officer and the Contractor, has demonstrated projected future demand for water use 

64 that exceeds the Contract Total to be made available to it pursuant to this MOA; and 

 [11th 65 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

67 as an essential portion of its water supply; and 
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 [12th 68 ] WHEREAS, the United States and the Contractor are willing to enter into this 

69 MOA pursuant to Federal Reclamation law on the terms and conditions set forth below. 

70 NOW, THEREFORE, in consideration of the mutual covenants herein contained, 

71 it is agree as follows: 

72 DEFINITIONS

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

74 incompatible with the intent of the parties as expressed in this MOA, the term: 

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

76 both dates inclusive; 

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

78 in addition to the Rates and Tiered Pricing Component specified in this MOA as determined 

79 annually by the Contracting Officer pursuant to this MOA; 

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

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

82 Contract Total; 

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

84 authorized representative acting pursuant to this MOA or applicable Federal Reclamation law or 

85 regulation; 

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

87 Contractor is entitled under subdivision (a) of Article 3 of this MOA; 

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

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

90 which may be modified from time to time in accordance with Article 35 of this MOA without 

91 amendment of this MOA; 
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92 (g) “CVPIA” shall mean the Central Valley Project Improvement Act, Title 

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

94 (h) Omitted; 

95 (i) Omitted; 

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

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

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

99 deficits funded, less payments, over such periods as may be required under Federal Reclamation 

100 law, or applicable contract provisions. Interest will accrue on both the construction expenditures 

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

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

103 in accordance with subsections 202(3)(B) and (3)(C) of the Reclamation Reform Act of 

104 October 12, 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA. The Full Cost 

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

106 of the Rules and Regulations for the RRA; 

107 (k) Omitted; 

108 (l) Omitted; 

109 (m) Omitted; 

110 (n) Omitted; 

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

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

113 crops or livestock; 

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

115 the delivery of M&I Water; 
Contract No. 14-06-200-3464A-LTR1 

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

117 reasonable care, control, operation, repair, replacement (other than capital replacement), and 

118 maintenance of Project facilities; 

119 (r) Omitted; 

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

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

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

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

124 Reclamation law; 

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

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

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

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

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

130 as described in subdivision (a) of Article 7 of this MOA; 

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

132 the final forecast of Water Made Available to the Contractor pursuant to this MOA or its 

133 preceding contract(s); 

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

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

136 through any agency of the Department of the Interior; 

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

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

139 (z) “Water Delivered” or “Delivered Water” shall mean Project Water 

140 diverted for use by the Contractor at the point(s) of delivery approved by the Contracting 

141 Officer; 
Contract No. 14-06-200-3464A-LTR1 

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

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

144 Contracting Officer, pursuant to subdivision (a) of Article 4 of this MOA; 

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

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

147 and Contracting Officer, pursuant to subdivision (b) of Article 4 of this MOA; and 

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

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

150 TERM OF CONTRACT

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

152 20___, and supercedes the Existing Contract. In the event the Contractor wishes to renew this 

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

154 the Contracting Officer no later than two years prior to the date this MOA expires. 

155 (b) Omitted. 

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

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

158 conditions mutually agreeable to the parties and consistent with Federal and State law. The 

159 Contractor shall be afforded the opportunity to comment to the Contracting Officer on the 

160 proposed adoption and application of any revised policy applicable to the delivery of M&I Water 

161 that would limit the term of any subsequent renewal contract with the Contractor for the 

162 furnishing of M&I Water to less than 40 years. 

163 (d) The Contracting Officer shall make a determination ten years after the 

164 date of execution of this Contract, and every five years thereafter during the term of this 
Contract No. 14-06-200-3464A-LTR1 

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165 Contract, of whether a conversion to a contract under said subsection (c)(1) of Section 9 of the 

166 Reclamation Project Act of 1939 can be accomplished. The Contracting Officer anticipates that 

167 during the term of this Contract, all authorized Project construction expected to occur will have 

168 occurred, and on that basis the Contracting Officer agrees upon such completion to allocate all 

169 costs that are properly assignable to the Contractor, and agrees further that, at any time after such 

170 allocation is made, and subject to satisfaction of the condition set out in this subdivision, this 

171 Contract shall, at the request of the Contractor, be converted to a contract under said subsection 

172 9(c)(1), subject to applicable Federal law and under stated terms and conditions mutually 

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

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

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

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

177 probably be repaid to the United States within the term of a contract under said subsection 

178 9(c)(1). If the remaining amount of costs that are properly assignable to the Contractor cannot be 

179 determined during the term of this Contract, the Contracting Officer shall notify the Contractor, 

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

181 Officer shall make such a determination as soon thereafter as possible so as to permit, upon 

182 request of the Contractor and satisfaction of the condition set out above, conversion to a contract 

183 under said subsection 9(c)(1). In the event such determination of costs has not been made at a 

184 time which allows conversion of this Contract during the term of this Contract or the Contractor 

185 has not requested conversion of this Contract within such term, the parties shall incorporate in 

186 any subsequent renewal contract as described in subdivision (b) of this Article a provision that 

187 carries forth in substantially identical terms the provisions of this subdivision. 
Contract No. 14-06-200-3464A-LTR1 

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188 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

191 this MOA, the Contracting Officer shall make available for delivery to the Contractor 10 acre192 feet of Project Water for M&I purposes. Water Delivered to the Contractor in accordance with 

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

194 this MOA. 

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

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

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

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

199 Article in any given Year is uncertain. The Contracting Officer’s modeling referenced in the 

200 PEIS projected that the Contract Total set forth in this MOA will not be available to the 

201 Contractor in many years. During the most recent five years, the Recent Historic Average of 

202 water made available to the Contractor was 9 acre-feet. Nothing in subdivision (b) of this Article 

203 shall affect the rights and obligations of the parties under any provision of this MOA. 

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

205 applicable legal requirements. 

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

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

208 ground-water banking programs, surface water storage programs, and other similar programs 

209 utilizing Project Water or other water furnished pursuant to this MOA conducted within the 

210 Contractor’s Service Area which are consistent with applicable State law and result in use 
Contract No. 14-06-200-3464A-LTR1 

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

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

213 Article 26 of this MOA; Provided, further, That such water conservation plan demonstrates 

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

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

216 compliance with Federal Reclamation law. Ground-water recharge programs, ground-water 

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

218 Water or other water furnished pursuant to this MOA conducted outside the Contractor’s Service 

219 Area may be permitted upon written approval of the Contracting Officer, which approval will be 

220 based upon environmental documentation, Project Water rights, and Project operational 

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

222 guidelines. 

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

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

225 of this MOA undertaken pursuant to Section 7 of the Endangered Species Act of 1973 (ESA), as 

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

227 which evidences in excess of 36 years of diversions for irrigation and/or M&I purposes of the 

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

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

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

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

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

233 Article. 
Contract No. 14-06-200-3464A-LTR1 

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

235 under Article 4 of this MOA, the Contracting Officer will make a determination whether Project 

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

237 to the Contract Total under Article 3 of this MOA during the Year without adversely impacting 

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

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

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

241 Contractor, the Contracting Officer will announce the availability of such water and shall so 

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

243 Contractor and other Project Contractors capable of taking such water to determine the most 

244 equitable and efficient allocation of such water. If the Contractor requests the delivery of any 

245 quantity of such water, the Contracting Officer shall make such water available to the Contractor 

246 in accordance with applicable statutes, regulations, guidelines, and policies. 

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

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

249 Year, referred to as “carryover.” The Contractor may request permission to use during the 

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

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

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

253 guidelines, and policies. 

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

255 State law to the reasonable and beneficial use of Water Delivered pursuant to this MOA during 

256 the term thereof and any subsequent renewal contracts, as described in Article 2 of this MOA, 
Contract No. 14-06-200-3464A-LTR1 

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

258 obligations under this MOA and any renewals thereof. Nothing in the preceding sentence shall 

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

260 Article 12 of this MOA or applicable provisions of any subsequent renewal contracts. 

261 (i) Project Water furnished to the Contractor pursuant to this MOA may be 

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

263 accordance with the terms and conditions of such approval. 

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

265 rights necessary for the Project and to provide the water available under this MOA. The 

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

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

268 Provided, That the Contracting Officer retains the right to object to the substance of the 

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

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

271 to use Project Water. 

272 TIME FOR DELIVERY OF WATER

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

274 shall announce the Contracting Officer’s expected declaration of the Water Made Available. 

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

276 Historic Average and will be updated monthly, and more frequently if necessary, based on then277 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

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

279 operations and the basis of the estimate, with relevant supporting information, upon the written 
Contract No. 14-06-200-3464A-LTR1 

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

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

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

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

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

285 United States to the Contractor pursuant to this MOA for the Year commencing on such March 

286 1. The Contracting Officer shall use all reasonable means to deliver Project Water according to 

287 the approved schedule for the Year commencing on such March 1. 

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

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

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

291 during any Year. 

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

293 MOA, the United States shall deliver Project Water to the Contractor in accordance with the 

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

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

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

297 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

299 MOA shall be delivered to the Contractor at Station 24___ of the Toyon Pipeline and any 

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

301 mutually agreed to in writing by the Contracting Officer and the Contractor. 
Contract No. 14-06-200-3464A-LTR1 

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302 (b) The Contracting Officer shall make all reasonable efforts to maintain 

303 sufficient flows and levels of water in Shasta Reservoir to deliver Project Water to the Contractor 

304 at specific turnouts established pursuant to subdivision (a) of this Article. 

305 (c) Omitted. 

306 (d) All Water Delivered to the Contractor pursuant to this MOA shall be 

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

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

309 Article. Upon the request of either party to this MOA, the Contracting Officer shall investigate 

310 the accuracy of such measurements and shall take any necessary steps to adjust any errors 

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

312 Contracting Officer shall consult with the Contractor prior to making a final determination of the 

313 quantity delivered for that period of time. 

314 (e) The Contracting Officer shall not be responsible for the control, carriage, 

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

316 MOA beyond the delivery points specified in subdivision (a) of this Article. 

317 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

318 6. Omitted. 

319 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

323 ratesetting policy shall be amended, modified, or superceded only through a public notice and 

324 comment procedure; (ii) applicable Federal Reclamation law and associated rules and 
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325 regulations, or policies; and (iii) other applicable provisions of this MOA. Payments shall be 

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

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

328 Component applicable to the Contractor upon execution of this MOA are set forth in Exhibit 

329 “B,” as may be revised annually. 

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

331 and Tiered Pricing Component as follows: 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

346 Component to be in effect for the upcoming Year, and such notification shall revise Exhibit “B.” 
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347 (c) At the time the Contractor submits the initial schedule for the delivery of 

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

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

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

351 to be delivered pursuant to this MOA during the first two calendar months of the Year. Before 

352 the end of the first month and before the end of each calendar month thereafter, the Contractor 

353 shall make an advance payment to the United States, at the Rate(s) set under subdivision (a) of 

354 this Article, for the Water Scheduled to be delivered pursuant to this MOA during the second 

355 month immediately following. Adjustments between advance payments for Water Scheduled 

356 and payments at Rates due for Water Delivered shall be made before the end of the following 

357 month; Provided, That any revised schedule submitted by the Contractor pursuant to Article 4 of 

358 this MOA which increases the amount of Water Delivered pursuant to this MOA during any 

359 month shall be accompanied with appropriate advance payment, at the Rates then in effect, to 

360 assure that Project Water is not delivered to the Contractor in advance of such payment. In any 

361 month in which the quantity of Water Delivered to the Contractor pursuant to this MOA equals 

362 the quantity of Water Scheduled and paid for by the Contractor, no additional Project Water shall 

363 be delivered to the Contractor unless and until an advance payment at the Rates then in effect for 

364 such additional Project Water is made. Final adjustment between the advance payments for the 

365 Water Scheduled and payments for the quantities of Water Delivered during each Year pursuant 

366 to this MOA shall be made as soon as practicable, but no later than April 30th of the following 

367 Year, or 60 days after the delivery of Project Water carried over under subdivision (g) of Article 

368 3 of this MOA if such water is not delivered by the last day of February. 
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369 (d) The Contractor shall also make a payment in addition to the Rate(s) in 

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

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

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

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

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

375 the subject month prepared by the Contracting Officer. The water delivery report shall be 

376 deemed a bill for the payment of Charges and the applicable Tiered Pricing Component for 

377 Water Delivered. Adjustment for overpayment or underpayment of Charges shall be made 

378 through the adjustment of payments due to the United States for Charges for the next month. 

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

380 be computed pursuant to Article 20 of this MOA. 

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

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

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

384 policies; Provided, That the Rate for Water Delivered under subdivision (f) of Article 3 of this 

385 MOA shall be no more than the otherwise applicable Rate for M&I Water under subdivision (a) 

386 of this Article. 

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

388 MOA may be paid from any revenues available to the Contractor. 

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

390 the delivery of Project Water or the delivery of non-Project water through Project facilities shall 
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391 be allocated and applied in accordance with Federal Reclamation law and the associated rules or 

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

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

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

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

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

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

398 disposition of all Project and Contractor revenues, and a summary of all water delivery 

399 information. The Contracting Officer and the Contractor shall enter into good faith negotiations 

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

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

402 MOA is their mutual goal. Recognizing that experience has demonstrated that mechanisms, 

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

404 Component, and/or for making and allocating payments, other than those set forth in this Article 

405 may be in the mutual best interest of the parties, it is expressly agreed that the parties may enter 

406 into agreements to modify the mechanisms, policies, and procedures for any of those purposes 

407 while this MOA is in effect without amending this MOA. 

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

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

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

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

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

413 Contract Total, shall equal one-half of the difference between the Rate established under 
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414 subdivision (a) of this Article and the M&I Full Cost Water Rate. The Tiered Pricing 

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

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

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

418 (2) Omitted. 

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

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

421 Contractor transfers to others but shall not include Project Water transferred to the Contractor, 

422 nor shall it include the additional water provided to the Contractor under the provisions of 

423 subdivision (f) of Article 3 of this MOA. 

424 (k) For the term of this MOA, Rates under the respective ratesetting policies 

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

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

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

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

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

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

431 proposed change. 

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

433 CVPIA, the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates 

434 adjusted upward or downward to reflect the changed costs, if any, incurred by the Contracting 

435 Officer in the delivery of the transferred Project Water to the transferee’s point of delivery in 

436 accordance with the then applicable Project ratesetting policy. If the Contractor is receiving 

437 lower Rates and Charges because of inability to pay and is transferring Project Water to another 

438 entity whose Rates and Charges are not adjusted due to inability to pay, the Rates and Charges 
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439 for transferred Project Water shall be the Contractor’s Rates and Charges and will not be 

440 adjusted to reflect the Contractor’s inability to pay. 

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

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

443 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

444 8. Omitted. 

445 SALES, TRANSFERS, OR EXCHANGES OF WATER

446 9. Omitted. 

447 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

448 10. (a) The amount of any overpayment by the Contractor of the Contractor’s 

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

450 liabilities of the Contractor arising out of this MOA then due and payable. Overpayments of 

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

452 of such overpayment, at the option of the Contractor, may be credited against amounts to become 

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

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

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

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

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

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

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

460 Contractor pursuant to Article 25 of this MOA shall be adjusted to reflect the actual costs when 

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

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

463 Contractor will be billed for the additional costs pursuant to Article 25. 
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464 TEMPORARY REDUCTIONS--RETURN FLOWS

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

466 requirements of Federal law; and (ii) the obligations of the United States under existing 

467 contracts, or renewals thereof, providing for water deliveries from the Project, the Contracting 

468 Officer shall make all reasonable efforts to optimize Project Water deliveries to the Contractor as 

469 provided in this MOA. 

470 (b) The Contracting Officer may temporarily discontinue or reduce the 

471 quantity of Water Delivered to the Contractor as herein provided for the purposes of 

472 investigation, inspection, maintenance, repair, or replacement of any of the Project facilities or 

473 any part thereof necessary for the delivery of Project Water to the Contractor, but so far as 

474 feasible the Contracting Officer will give the Contractor due notice in advance of such temporary 

475 discontinuance or reduction, except in case of emergency, in which case no notice need be given; 

476 Provided, That the United States shall use its best efforts to avoid any discontinuance or 

477 reduction in such service. Upon resumption of service after such reduction or discontinuance, 

478 and if requested by the Contractor, the United States will, if possible, deliver the quantity of 

479 Project Water which would have been delivered hereunder in the absence of such discontinuance 

480 or reduction. 

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

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

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

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

485 pursuant to this MOA within the Contractor’s Service Area by the Contractor or those claiming 

486 by, through, or under the Contractor. 

487 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

489 reasonable means to guard against a Condition of Shortage in the quantity of water to be made 
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490 available to the Contractor pursuant to this MOA. In the event the Contracting Officer 

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

492 Contractor of said determination as soon as practicable. 

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

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

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

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

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

498 (c) Omitted. 

499 (d) Project Water furnished under this MOA will be allocated in accordance 

500 with the then-existing Project M&I Water Shortage Policy. Such policy shall be amended, 

501 modified, or superceded only through a public notice and comment procedure. 

502 UNAVOIDABLE GROUNDWATER PERCOLATION

503 13. Omitted. 

504 RULES AND REGULATIONS

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

506 pursuant to this MOA is subject to Federal Reclamation law, as amended and supplemented, and 

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

508 law. 

509 WATER AND AIR POLLUTION CONTROL

510 15. The Contractor, in carrying out this MOA, shall comply with all applicable water 

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

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

513 QUALITY OF WATER

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

515 to this MOA shall be operated and maintained to enable the United States to deliver Project 
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516 Water to the Contractor in accordance with the water quality standards specified in subsection 

517 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of October 

518 27, 1986 (100 Stat. 3050) or other existing Federal laws. The United States is under no 

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

520 of Water Delivered to the Contractor pursuant to this MOA. The United States does not warrant 

521 the quality of Water Delivered to the Contractor pursuant to this MOA. 

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

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

524 highest level reasonably attainable as determined by the Contracting Officer. The Contractor 

525 shall be responsible for compliance with all State and Federal water quality standards applicable 

526 to surface and subsurface agricultural drainage discharges generated through the use of Federal 

527 or Contractor facilities or Project Water provided by the Contractor within the Contractor's 

528 Service Area. 

529 WATER ACQUIRED BY THE CONTRACTOR

530 OTHER THAN FROM THE UNITED STATES

531 17. Omitted. 

532 OPINIONS AND DETERMINATIONS

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

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

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

536 determinations. Both parties, notwithstanding any other provisions of this MOA, expressly 

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

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

539 provided in a timely manner. Nothing in subdivision (a) of Article 18 of this MOA is intended to 
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540 or shall affect or alter the standard of judicial review applicable under Federal law to any opinion 

541 or determination implementing a specific provision of Federal law embodied in statute or 

542 regulation. 

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

544 necessary to administer this MOA that are consistent with the provisions of this MOA, the laws 

545 of the United States and of the State of California, and the rules and regulations promulgated by 

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

547 Contractor to the extent reasonably practicable. 

548 COORDINATION AND COOPERATION

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

550 Officer and the Contractor shall communicate, coordinate, and cooperate with each other, and 

551 with other affected Project Contractors, in order to improve the operation and management of the 

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

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

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

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

556 coordination, and cooperation provided for hereunder shall extend to all provisions of this MOA. 

557 Each party shall retain exclusive decision making authority for all actions, opinions, and 

558 determinations to be made by the respective party. 

559 (b) Within 120 days following the effective date of this MOA, the Contractor, 

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

561 interested Project Contractors to develop a mutually agreeable, written Project-wide process, 

562 which may be amended as necessary separate and apart from this MOA. The goal of this process 
Contract No. 14-06-200-3464A-LTR1 

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563 shall be to provide, to the extent practicable, the means of mutual communication and interaction 

564 regarding significant decisions concerning Project operation and management on a real-time 

565 basis. 

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

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

568 intent: 

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

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

571 the Contracting Officer will, as appropriate, seek authorizations for implementation of 

572 partnerships to improve water supply, water quality, and reliability. 

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

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

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

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

577 State of California to seek improved water resource management. 

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

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

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

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

582 management activities, and other issues as appropriate. 

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

584 under the other Articles of this MOA nothing in this Article shall be construed to limit or 

585 constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 
Contract No. 14-06-200-3464A-LTR1 

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

587 protect health, safety, or the physical integrity of structures or facilities. 

588 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

594 When a payment is delinquent ninety (90) days or more, the Contractor shall pay an additional 

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

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

597 associated with a delinquent payment. 

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

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

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

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

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

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

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

605 accrued interest, and finally to the overdue payment. 

606 EQUAL OPPORTUNITY

607 21. Omitted. 

608 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

609 22. Omitted. 

610 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

611 23. Omitted. 

612 PRIVACY ACT COMPLIANCE

613 24. Omitted. 

614 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

616 MOA, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 
Contract No. 14-06-200-3464A-LTR1 

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

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

619 this MOA plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

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

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

622 administration. 

623 WATER CONSERVATION

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

625 Federally constructed or Federally financed facilities pursuant to this MOA, the Contractor shall 

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

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

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

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

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

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

632 MOA shall be contingent upon the Contractor’s continued implementation of such water 

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

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

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

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

637 made under this MOA so long as the Contractor diligently works with the Contracting Officer to 

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

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

640 with the time schedules therein. 

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

642 Article 3 of this MOA equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 
Contract No. 14-06-200-3464A-LTR1 

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643 the Best Management Practices identified by the time frames issued by the California Urban 

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

645 Contracting Officer to be inappropriate for the Contractor. 

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

647 status of its implementation of the water conservation plan on the reporting dates specified in the 

648 then existing conservation and efficiency criteria established under Federal law. 

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

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

651 conservation plans established under Federal law and submit such revised water management 

652 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

653 determine if the water conservation plan meets Reclamation’s then-current conservation and 

654 efficiency criteria for evaluating water conservation plans established under Federal law. 

655 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

656 shall be described in the Contractor’s water conservation plan. 

657 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

658 27. Except as specifically provided in Article 17 of this MOA, the provisions of this 

659 MOA shall not be applicable to or affect non-Project water or water rights now owned or 

660 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

661 Area. Any such water shall not be considered Project Water under this MOA. In addition, this 

662 MOA shall not be construed as limiting or curtailing any rights which the Contractor or any 

663 water user within the Contractor's Service Area acquires or has available under any other 

664 contract pursuant to Federal Reclamation law. 

665 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

666 28. Omitted. 

667 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

668 29. The expenditure or advance of any money or the performance of any obligation of 

669 the United States under this MOA shall be contingent upon appropriation or allotment of funds. 
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670 Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

671 obligations under this MOA. No liability shall accrue to the United States in case funds are not 

672 appropriated or allotted. 

673 BOOKS, RECORDS, AND REPORTS

674 30. (a) The Contractor shall establish and maintain accounts and other books and 

675 records pertaining to administration of the terms and conditions of this MOA. Reports thereon 

676 shall be furnished to the Contracting Officer in such form and on such date or dates as the 

677 Contracting Officer may require. Subject to applicable Federal laws and regulations, each party 

678 to this MOA shall have the right during office hours to examine and make copies of the other 

679 party's books and records relating to matters covered by this MOA. 

680 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

681 31. (a) The provisions of this MOA shall apply to and bind the successors and 

682 assigns of the parties hereto, but no assignment or transfer of this MOA or any right or interest 

683 therein shall be valid until approved in writing by the Contracting Officer. 

684 (b) The assignment of any right or interest in this MOA by either party shall 

685 not interfere with the rights or obligations of the other party to this MOA absent the written 

686 concurrence of said other party. 

687 (c) The Contracting Officer shall not unreasonably condition or withhold his 

688 approval of any proposed assignment. 

689 SEVERABILITY

690 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

691 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

692 an association or other form of organization whose primary function is to represent parties to 

693 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

694 enforceability of a provision included in this MOA and said person, entity, association, or 

695 organization obtains a final court decision holding that such provision is legally invalid or 

696 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 
Contract No. 14-06-200-3464A-LTR1 

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697 the parties to this MOA shall use their best efforts to (i) within 30 days of the date of such final 

698 court decision identify by mutual agreement the provisions in this MOA which must be revised, 

699 and (ii) within three months thereafter promptly agree on the appropriate revision(s). The time 

700 periods specified above may be extended by mutual agreement of the parties. Pending the 

701 completion of the actions designated above, to the extent it can do so without violating any 

702 applicable provisions of law, the United States shall continue to make the quantities of Project 

703 Water specified in this MOA available to the Contractor pursuant to the provisions of this MOA 

704 which were not found to be legally invalid or unenforceable in the final court decision. 

705 RESOLUTION OF DISPUTES

706 33. Should any dispute arise concerning any provisions of this MOA, or the parties’ 

707 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

708 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer 

709 referring any matter to Department of Justice, the party shall provide to the other party 30 days’ 

710 written notice of the intent to take such action; Provided, That such notice shall not be required 

711 where a delay in commencing an action would prejudice the interests of the party that intends to 

712 file suit. During the 30-day notice period, the Contractor and the Contracting Officer shall meet 

713 and confer in an attempt to resolve the dispute. Except as specifically provided, nothing herein is 

714 intended to waive or abridge any right or remedy that the Contractor or the United States may 

715 have. 

716 OFFICIALS NOT TO BENEFIT

717 34. Omitted. 

718 CHANGES IN CONTRACTOR’S SERVICE AREA

719 35. (a) While this MOA is in effect, no change may be made in the Contractor's 

720 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or 

721 otherwise, except upon the Contracting Officer's written consent. 

722 (b) Within 30 days of receipt of a request for such a change, the Contracting 

723 Officer will notify the Contractor of any additional information required by the Contracting 
Contract No. 14-06-200-3464A-LTR1 

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724 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

725 schedule for timely completion of the process. Such process will analyze whether the proposed 

726 change is likely to: (i) result in the use of Project Water contrary to the terms of this MOA; (ii) 

727 impair the ability of the Contractor to pay for Project Water furnished under this MOA or to pay 

728 for any Federally-constructed facilities for which the Contractor is responsible; and (iii) have an 

729 impact on any Project Water rights applications, permits, or licenses. In addition, the 

730 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

731 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

732 be paid in accordance with Article 25 of this MOA. 

733 FEDERAL LAWS

734 36. By entering into this MOA, the Contractor does not waive its rights to contest the 

735 validity or application in connection with the performance of the terms and conditions of this 

736 MOA of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

737 terms and conditions of this MOA unless and until relief from application of such Federal law or 

738 regulation to the implementing provision of the Contract is granted by a court of competent 

739 jurisdiction. 

740 NOTICES

741 37. Any notice, demand, or request authorized or required by this MOA shall be 

742 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

743 delivered to the Area Manager, Bureau of Reclamation, Northern California Area Office, 16349 

744 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalf of the United States, when 

745 mailed, postage prepaid, or delivered to the Forest Supervisor, U. S. Forest Service, 3644 Avtech 

746 Parkway, Redding, California 96002. The designation of the addressee or the address may be 

747 changed by notice given in the same manner as provided in this Article for other notices. 

748 CONFIRMATION OF CONTRACT

749 38. Omitted. 
Contract No. 14-06-200-3464A-LTR1 

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750 IN WITNESS WHEREOF, the parties hereto have executed this MOA as of the day and 

751 year first above written. 

752 THE UNITED STATES OF AMERICA 

753 By: ______________________________________ 

754 Regional Director, Mid-Pacific Region 

755 Bureau of Reclamation 

756 UNITED STATES DEPARTMENT 

757 OF AGRICULTURE

758 By: ______________________________________ 

759 Regional Forester 

760 (I:\LTRC\Draft LTRC\06-22-2004 Forest Service – Centimudi Final LTRC Draft Contract.doc) 
Contract No. 14-06-200-3464A-LTR1 

EXHIBIT A 

Map of Contractor’s Service Area

United States Forest Service
Contract No. 14-06-200-3464A-LTR1 

EXHIBIT B 

2004 Water Rates and Charges

United States Forest Service

 

 M&I 

COST OF SERVICE RATES:

Capital Rates $1.93 

O&M Rates: 

Water Marketing 5.01 

Storage 6.38 

Deficit Rates: 

Interest Bearing 0.32 

CFO/PRF Adj. Rate 2/ 2.29 

TOTAL (Minimum Rate =$15.00) $15.92 

M&I FULL-COST RATE: $17.04

 

CHARGES UNDER P.L. 102-575 TO THE

RESTORATION FUND 1/ 

Restoration Payments (3407(d)(2)(A)) $15.64 

1/ Restoration fund charges are payments in addition to the water rates and were determined 

pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges are on a fiscal year 

basis (10/1 - 9/30). 

2/ Chief Financial Officer (CFO) adjustment and Provision for Replacement (PFR) expense is 

being distributed over a 5-year period beginning in FY 2003 for those contractors that requested 

those costs be deferred.