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Contract No. 

Standard Irrigation District Form 

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UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

WATER RIGHTS SETTLEMENT CONTRACT BETWEEN THE UNITED STATES 

AND 

___________________________________________________ 

DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES 

SETTLING WATER RIGHTS DISPUTES AND

 PROVIDING FOR PROJECT WATER SERVICE AND AGREEMENT ON 

DIVERSION OF WATER

Table of Contents

Article No. Title Page No. 

Preamble 1 

Explanatory Recitals 2-3 

1 Definitions 3-6 

2 Term of Contract 6-7 

3 Water to be Furnished to Contractor 7-9 10

4 Return Flow 9 10-11

5 Constraints on the Availability of Water 10-11-12

6 Integrated Water Management and Partnerships 12-13 

6 7 Use of Water Furnished to Contractor 11 13

7 8 Rate and Method of Payment for Water 11-16 14-18

8 9 Agreement on Water Quantities 16-18 19-21

9 10 Measurement of Water 18-20 21-23

10 11 Rules and Regulations 20-21 23

11 12 General Obligation – Benefits Conditioned 

Upon Payment 21 23-24

12 13 Charges For Delinquent Payments 21 24

13 14 Quality of Water 22 24-25

14 15 Water and Air Pollution Control 22 25

15 16 Equal Opportunity 22-23 25-26

16 17 Compliance With Civil Rights Laws 

And Regulations 23-24 26-27
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Table of Contents – continued

Article No. Title Page No.

17 18 Mingling of Contractor’s Project and 

Non-Project Water 24-25 27-28

18 19 Books, Records, and Reports 25-26 28

19 20 Change Of Place Of Use Or Organization 26 28-29

20 21 Consolidation Of Contracting Entities 26 29

21 22 Notices 26-27 29

22 23 Assignment Limited – Successors and 

Assigns Obligated 27 29-30

23 24 Officials Not to Benefit 27 30

24 25 Contingent Upon Appropriation or 

Allotment of Funds 27 30

25 26 Confirmation of Contract 27 30

26 27 Unavoidable Groundwater Percolation 28 30

27 28 Privacy Act Compliance 28 31

28 29 Water Conservation 29-30 31-33

29 30 Opinions And Determinations 30-31 33

30 31 Contractor to Pay Certain Miscellaneous Costs 31 34

31 32 Waiver of Default 31 34

 Signatures 32 35

Exhibit A Schedule of Monthly Diversions of Water 

Exhibit B Map of Contractor’s Ownership 

Exhibit C Unit Duties 

Exhibit D Rates and Charges 
1 R.O. Draft 05/15-2002 

2 Contract No. 

3 Standard Irrigation District Form 

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7 UNITED STATES 

8 DEPARTMENT OF THE INTERIOR 

9 BUREAU OF RECLAMATION 

10 Central Valley Project, California 

11 

12 WATER RIGHTS SETTLEMENT CONTRACT BETWEEN THE UNITED STATES 

13 AND 

14 _______________________________________________ 

15 DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES 

16 SETTLING WATER RIGHTS DISPUTES AND

17 PROVIDING FOR PROJECT WATER SERVICE AND AGREEMENT ON 

18 DIVERSION OF WATER

19 

20 

21 THIS CONTRACT, hereinafter referred to as “Settlement Contract,” is 

22 entered into by THE UNITED STATES OF AMERICA, hereinafter referred to as the 

23 United States, made this _____ day of ____________________, 2002, in pursuance

24 pursuant to the applicable authority granted to it generally of in the Act of June 17, 1902 

25 (32 Stat. 388), and acts amendatory or supplementary thereto, including, but not limited 

26 to, the Acts of August 26, 1937 (50 Stat. 844), as amended and supplemented, August 4, 

27 1939 (53 Stat. 1187), as amended and supplemented, including but not limited to Sections

28 9 and 14 thereto, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 

29 1982 (96 Stat. 1262), October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV 

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

31 Federal Reclamation law, between THE UNITED STATES OF AMERICA, hereinafter 

32 referred to as the United States, and _______________________, hereinafter referred to 

33 as the Contractor, a public agency of the State of California, duly organized, existing, and 
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1 acting pursuant to the laws thereof, with its principal place of business in California; 

2 (may change depending on contracting entity) 

3 WITNESSETH, That that: 

4 EXPLANATORY RECITALS

[1st] 5 WHEREAS, the United States has constructed and is operating the Central 

6 Valley Project, California, for multiple purposes pursuant to its statutory authority, for 

7 diversion, storage, carriage, distribution and beneficial use, for flood control, irrigation, 

8 municipal, domestic, industrial, fish and wildlife mitigation, protection and restoration, 

9 generation and distribution of electric energy, salinity control, navigation and other 

10 beneficial uses, of waters of the Sacramento River, the American River, the Trinity River, 

11 and the San Joaquin River and their tributaries; and 

[2nd] 12 WHEREAS, the Contractor asserts that it has rights to divert, is diverting, 

13 and will continue to divert for reasonable beneficial use, water from the natural flow of 

14 the Sacramento River and tributaries thereto, that would have been flowing therein if the 

15 Central Valley Project were not in existence; and [Contractor Specific – “Other” Rights”]

[3rd] 16 WHEREAS, the construction and operation of the integrated and 

17 coordinated Central Valley Project has changed and will further change the regimen of 

18 the Sacramento, American, San Joaquin, and Trinity Rivers and the Sacramento-San 

19 Joaquin Delta from unregulated flow to regulated flow; and 

[4th] 20 WHEREAS, the United States asserts that it has rights to divert, is diverting, 

21 and will continue to divert waters from said Rivers and said Delta in connection with the 

22 operation of said Central Valley Project, and 
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[5th] 1 WHEREAS, the Contractor and the United States had a dispute over the 

2 nature, extent and relative priority of their respective water rights of the parties to divert 

3 and use water from the regulated flow of the Sacramento River which threatened to result 

4 in the initiation of an adjudication of the relevant stream systems litigation, and as a 

5 means to settle that dispute entered into Contract No. ______________, as amended, 

6 hereinafter referred to as the Existing Contract, which established terms for the delivery 

7 to the Contractor of Central Valley Project Water, and the quantities of Base Supply the 

8 United States and the Contractor agreed may has a right to be diverted by the Contractor

9 from the Sacramento River pursuant to such contract. from ____________ through 

10 March 31, 2004; and 

6th 11 WHEREAS, although the United States and the Contractor and the United 

12 States have a current dispute over the meaning and intent of Articles 9 and 5 of the 

13 Existing Contract, including litigation, but nonetheless without prejudicing the respective 

14 parties’ positions with respect to that litigation has requested desire to enter into the long15 term renewal of the Existing Contract, disagree with respect to the authority of the United 

16 States to change the quantities of Base Supply and/or Project water specified in this 

17 Contract from the quantities specified in the Existing Contract. That dispute is being 

18 litigated in a lawsuit entitled GCID v. United States of America, Civ. No. S-01-1816 

19 GEB/JFM (E.D. CA). Both the Contractor and the United States are willing to agree to 

20 the dismissal of that lawsuit without waiving or otherwise prejudicing their respective 

21 right to assert whatever arguments and defenses either of them believe is appropriate if 

22 that issue is subsequently litigated and enter into this Settlement Contract, pursuant to the 

23 terms of the Existing Contract, Federal Reclamation law, and the laws of the State of 
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1 California, and the United States has determined that the Contractor has Parties have

2 fulfilled all of its their respective obligations under the Existing Contract; and

7th 3 WHEREAS, to assure the Contractor of the enjoyment and use of the 

4 regulated flow of the said Rivers and the Delta, and to provide for the economical 

5 operation of the Central Valley Project by, and the reimbursement to, the United States 

6 for expenditures made for said Project; 

7 NOW, THEREFORE, in consideration of the performance of the herein 

8 contained provisions, conditions, and covenants, it is agreed as follows:

9 DEFINITIONS

10 1. When used herein, unless otherwise expressed or incompatible with the intent 

11 hereof, the term: 

12 (a) “Base Supply” shall mean the quantity of water established in Articles 3 

13 and 5 which the United States agrees may be diverted by that the Contractor has a right to 

14 divert from the Sacramento River each month during the period April through October of 

15 each Year without payment to the United States for such quantities diverted; 

16 (b) “Charges” shall mean the payments for Project Water as determined 

17 annually by the Contracting Officer which the Contractor is required by Federal 

18 Reclamation law agreed to pursuant to this Settlement Contract to pay to the United 

19 States in addition to the “Rates” specified in this Contract. The nature and extent type 

20 and amount of each Charges as well as categories of Charges is shall be specified in the 

21 attached Exhibit “D” as determined annually by the Contracting Officer pursuant to this 

22 Contract; 
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1 (c) “Contract Total” shall mean the sum of the Base Supply and Project 

2 Water available for diversion by the Contractor for the period April 1 through October 

3 31; 

4 (d) “Critical Year” shall mean any Year in which either of the following 

5 eventualities exists: 

6 (1) The forecasted full natural inflow to Shasta Lake for the current Water 

7 Year, as such forecast is made by the United States on or before February 15 and 

8 reviewed as frequently thereafter as conditions and information warrant, is equal to or 

9 less than three 3.2 million two hundred thousand (3,200,000) acre-feet; or 

10 (2) The total accumulated actual deficiencies below four 4 million 

11 (4,000,000) acre-feet in the immediately prior Water Year or series of successive prior 

12 Water Years each of which had inflows of less than four 4 million (4,000,000) acre-feet, 

13 together with the forecasted deficiency for the current Water Year, exceed eight hundred 

14 thousand (800,000) acre-feet. For the purpose of determining a Critical Year the 

15 computed inflow to Shasta Lake as it would have existed under present upstream 

16 development above Shasta Lake as of September 1, 1963 shall be used as the full natural 

17 inflow to Shasta Lake. In the event that major construction occurs above Shasta Lake 

18 after April 1, 2004, September 1, 1963, which materially alters the present regimen of the 

19 stream systems contributing to Shasta Lake, the computed inflow to Shasta Lake used to 

20 define a Critical Year will, be adjusted to eliminate the effect of such material alterations. 

21 After consultation with the State of California, the National Weather Service, and other 

22 recognized forecasting agencies, the Contracting Officer will select the forecast to be 

23 used and will make the details of it available to the Contractor. The same forecasts used 
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1 by the United States for the operation of the Project shall be used to make the forecasts 

2 hereunder; 

3 (e) “CVPIA” shall mean the Central Valley Project Improvement Act, Title 

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

5 (f) “Eligible Lands” shall mean all lands to which Project Water may be 

6 delivered in accordance with Section 204 of the Reclamation Reform Act of October 12, 

7 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA;

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

9 in Section 204 of the RRA, other than those lands exempt from acreage limitation under 

10 Federal Reclamation law; 

11 (h) “Full Cost Rate” shall mean that water rate described in Sections 

12 205(a)(3) or 202(3) of the RRA, whichever is applicable; 

13 (i) “Ineligible Lands” shall mean all lands to which Project Water may not be 

14 delivered in accordance with Section 204 of the RRA; 

15 (j) “Landholder” shall mean a party that directly or indirectly owns or leases 

16 nonexempt land, as provided in 43 CFR 426.2; 

17 (k) “Project” shall mean the Central Valley Project owned by the United 

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

19 (l) “Project Water” shall mean all water diverted or scheduled to be diverted 

20 each month during the period April through October of each Year by the Contractor from 

21 the Sacramento River which is in excess of the Base Supply. The United States 

22 recognizes the right of the Contractor to make arrangements for acquisition of water from 

23 projects of others than the United States for delivery through the Sacramento River and 
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1 tributaries subject to written agreement between Contractor and the United States as to 

2 identification of such water which water when so identified shall not be deemed Project 

3 Water under this contract Settlement Contract; 

4 (m) “Rates” shall mean the payments for Project Water determined annually 

5 by the Contracting Officer in accordance with the then current applicable water 

6 ratesetting policies for the Project, as described in subdivision (a) of Article 8 of this 

7 Settlement Contract; 

8 (n) “Secretary” or “Contracting Officer” shall mean the Secretary of the 

9 Interior, a duly appointed successor, or an authorized representative acting pursuant to 

10 any authority of the Secretary and through any agency of the Department of the Interior; 

11 (o) “Water Year” shall mean the period commencing with October 1 of one 

12 year and extending through September 30 of the next; and 

13 (p) “Year” shall mean a calendar year. 

14 TERM OF SETTLEMENT CONTRACT

15 2. (a) This contract Settlement Contract shall become effective April 1, 2004, 

16 and shall remain in effect until and including March 31, 2044: Provided, That that under 

17 terms and conditions mutually agreeable to the parties hereto, renewals may be made for 

18 successive periods not to exceed forty (40) years each. The terms and conditions of each 

19 renewal shall be agreed upon not later than one (1) year prior to the expiration of the then 

20 existing contract Settlement Contract:. 

21 (b) Provided further, That that, With respect to Project Water and the portions of 

22 this Settlement Contract pertaining thereto, uUpon written request by the Contractor of 

23 the Secretary made not later than one (1) year prior to the expiration of this contract
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1 Settlement Contract, whenever, account being taken of the amount then credited to the 

2 costs of construction of water supply works, the remaining amount of construction costs 

3 of water supply work which is properly assignable for ultimate return by the Contractor 

4 as established by the Secretary of the Interior pursuant to (3) of Section 1 of Public Law 

5 643 (70 Stat. 483), probably can be repaid to the United States within the term of a 

6 contract under subsection 9(d) , of Section 9 of the 1939 Reclamation Project Act (53 

7 Stat. 1187), the relevant portions of then this contract Settlement Contract may be 

8 converted to a contract under said subsection 9(d) upon terms and conditions mutually 

9 agreeable to the United States and the Contractor. The Secretary shall make a 

10 determination 10 years after the date of execution of this Contract, and every five years 

11 thereafter, of whether a conversion to a contract under said subsection 9(d) can be 

12 accomplished pursuant to Public Law 643. Notwithstanding any provision of this 

13 contract Settlement Contract, the Contractor reserves and shall have all rights and 

14 benefits under Public Law 643. 

15 WATER TO BE FURNISHED TO CONTRACTOR

16 3. (a) Subject to the conditions, limitations, and provisions hereinafter expressed, 

17 the Contractor is hereby entitled and authorized to divert from the Sacramento River at 

18 the locations shown in identified on Exhibit A and shown on Exhibit B, for beneficial use 

19 within the area delineated on Exhibit B, (both Exhibits are attached hereto and made a 

20 part hereof), the Contract Total designated in Exhibit A, or any revision thereof, in 

21 accordance with the monthly operating schedule required by Article 3(bc) of this contract 

22 Settlement Contract. The quantity of any surface water diverted under this Settlement 

23 Contract from the Sacramento River, during the period April through October, for use on 
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1 any lands delineated on Exhibit B, by the owner of such lands or otherwise shall 

2 constitute a part of the Contract Total as shown on Exhibit A and shall be subject to all 

3 the provisions of this contract Settlement Contract relating to such Contract Total as if 

4 such diversion were made by the Contractor. 

5 [NOTE: contractor-specific language dealing with individual water rights may be 

6 needed.]

7 (b) The Contractor may have acquired rights to divert water from the 

8 Sacramento River during the period April through October, which were obtained after the 

9 date of execution of the Existing Contract. All diversions made from the Sacramento 

10 River, pursuant to such rights, during the period April through October, shall not be 

11 considered a part of the quantity of Base Supply and Project Water specified in Exhibit 

12 A; Provided, that the quantities diverted pursuant to the above rights shall be identified 

13 on the schedule submitted pursuant to Article 3(c) below.

14 (bc) The United States recognizes the need of the Contractor to vary from 

15 time to time its monthly diversions of water from the quantities shown in Exhibit A, or 

16 any revision thereof. Before April 1 and before the first day of each month thereafter of 

17 each Year , the Contractor shall submit a written schedule to the Contracting Officer 

18 indicating the Contract Total to be diverted by the Contractor during each month under 

19 this contract . The United States shall furnish water to the Contractor in accordance with 

20 the monthly operating schedule or any revisions thereof. However, the United States 

21 recognizes the need of the Contractor to change from time to time its monthly diversions 

22 of water from the quantities shown in Exhibit A; the Contractor may make such changes 

23 provided: 
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1 (1) that for the quantity of Base Supply diverted in excess of the monthly 

2 quantity shown on Exhibit A, the Contractor shall be charged a fee based upon the 

3 appropriate components of the Project ratesetting policy. 

4 (2) Such changes shall be subject to the prior written approval of the 

5 Contracting Officer. 

6 (3) Provided, That that in no event shall the total quantity scheduled for 

7 diversion by the Contractor from the Sacramento River: 

8 (i) During the period April through October exceed the aggregate of the 

9 Contract Total for those months shown in Exhibit A or any revision thereof; 

10 (ii) During the period July through September exceed the aggregate of the 

11 Contract Total for those months shown in Exhibit A or any revision thereof; .and

12 Provided, further, That that with the prior written approval of the Contracting Officer, 

13 water to be diverted may be diverted in. The Contractor shall be charged a fee based 

14 upon the appropriate components of the water ratesetting policy for the Project for the 

15 Base Supply scheduled for diversion in April, May, or June that is diverted in September 

16 or October, or vice versa 

17 (cd) In the event conditions warrant, the Contracting Officer reserves the 

18 right to require the Contractor to submit, at least seventy-two (72) hours prior to the 

19 beginning of each weekly period, its estimate of daily diversion requirements for each 

20 such period from the Sacramento River: Provided, however, That that changes during 

21 any such period may be made upon the giving of seventy-two (72) hours’ notice thereof 

22 to the Contracting Officer. 
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1 (de) No sale, transfer, exchange, or other disposal of any of the Contract 

2 Total designated in Exhibit A water Project Water (including transfers through 

3 forbearance of diversions) or the right to the use thereof for use on land other than that 

4 shown on Exhibit B shall be made by the Contractor without: 

5 (1) First obtaining the written consent of the Contracting Officer; and 

6 (2) Compliance with all applicable State and Federal laws, including but 

7 not limited to the National Environmental Policy Act and the Endangered Species Act, 

8 and applicable guidelines or regulations then in effect. 

9 (e) The sale, transfer, exchange, or other disposal of any Base Supply or the 

10 right to the use thereof for use on land other than that shown on Exhibit B shall be made 

11 by the Contractor in compliance with all applicable State laws.

12 (e f) Nothing herein contained shall prevent the Contractor from diverting 

13 water during the months of November through March for beneficial use on the land 

14 shown on Exhibit B or elsewhere to the extent authorized under the laws of the State of 

15 California. 

16 (f g) The United States assumes no responsibility for and neither it nor its 

17 officers, agents, or employees shall have any liability for or on account of: 

18 (1) The quality of water to be diverted by the Contractor; 

19 (2) The control, carriage, handling, use, disposal, or distribution of water 

20 diverted by the Contractor outside the facilities constructed and then being operated and 

21 maintained by or on behalf of the United States; 

22 (3) Claims of damage of any nature whatsoever, including but not limited 

23 to, property loss or damage, personal injury, or death arising out of or connected with the 
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1 control, carriage, handling, use, disposal, or distribution of said water outside of the 

2 hereinabove referred to facilities; and 

3 (4) Any damage whether direct or indirect arising out of or in any manner 

4 caused by a shortage of water whether such shortage be on account of errors in operation, 

5 drought, or unavoidable causes. 

6 RETURN FLOW

7 4. The United States reserves the right to the use of all Nothing herein shall be 

8 construed as an abandonment or a relinquishment by the United States of any right it may 

9 have the right to the use of any such water Project Water waste, seepage, and return flow 

10 water derived from water Project Water diverted by the Contractor hereunder and which 

11 escapes or is discharged beyond the boundaries of the lands shown on Exhibit B; Nothing 

12 herein shall be construed as an abandonment or a relinquishment by the United States the 

13 right to the use of any such water Project Water; Provided, That that this shall not be 

14 construed as claiming for the United States any right to such water Project Water which 

15 is recovered by the Contractor pursuant to California law from within the boundaries of 

16 the lands shown on Exhibit B, and which is being used pursuant to this contract

17 Settlement Contract for surface irrigation or underground storage on the lands shown on 

18 Exhibit B by the Contractor, nor is it intended to apply to waste, seepage, and return flow 

19 water derived from Base Supply or other non-Project Water diverted or otherwise 

20 obtained by Contractor. (Colusa Basin Drain language may be required) 

21 CONSTRAINTS ON THE AVAILABILITY OF WATER

22 5. (a) In any Water Year that (1) the forecasted full natural inflow to Shasta Lake 

23 for the current Water Year, as such forecast is made by the United States on or before 
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1 February 15 and reviewed as frequently thereafter as conditions and information warrant, 

2 is equal to or less than three 3.8 million eight hundred thousand (3,800,000) acre-feet; or 

3 (2) If the total accumulated actual deficiencies in the full natural inflow to Shasta Lake in 

4 the immediately prior Water Year or series of successive prior Water Years, each of 

5 which had inflows of less than four 4 million (4,000,000) acre-feet, together with the 

6 forecasted deficiency for the current Water Year, are between 200,000 acre-feet and 

7 800,000 acre-feet, then the following reductions in the Contractor’s monthly Contract 

8 Total shall be imposed:

9 Deficiency (acre-feet) Reduction

10 200,000 – 400,000 10 percent

11 400,001 – 600,000 15 percent

12 600,001 – 800,000 20 percent

13 

14 (b) In consideration for the reductions in the Contractor’s monthly Contract 

15 Total imposed pursuant to the provisions of Article 5(a) above, the United States shall 

16 pay Contractor as follows:

17 Reduction Per Acre-Foot Compensation

18 10 percent $ X

19 15 percent $ Y for quantities from 10-15%

20 20 percent $ Z for quantities from 15-20%

21 

22 The dollar per-acre compensation shall be tied to or indexed to the increase of 

23 rates for Project Water or CPI [or other].

24 (a c) In a Critical Year, the Contractor’s Base Supply and Project Water 

25 agreed to be diverted during the period April through October of the Year in which the 

26 principal portion of the Critical Year occurs and, each monthly quantity of said period 

27 shall be reduced by twenty-five percent (25 percent %). 
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1 (b d) The amount of any overpayment by the Contractor shall, at its option, 

2 be refunded or credited upon amounts to become due to the United States from the 

3 Contractor under the provisions hereof in the ensuing Year. To the extent of such 

4 deficiency such adjustment of overpayment shall constitute the sole remedy of the 

5 Contractor. 

6 INTEGRATED WATER MANAGEMENT AND PARTNERSHIPS

7 6. The Contractor and United States desire to work together to maximize the 

8 reasonable beneficial use of water to for their mutual benefit. As a consequence, the 

9 United States and the Contractor will work in partnership and with Contractor and others 

10 within the Sacramento Valley, including other Contractors with Settlement Contracts, to 

11 facilitate the better integration within the Sacramento Valley of all water supplies 

12 including, but not limited to, the better management and integration of surface water and 

13 groundwater, the development and better utilization of surface water storage, the 

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

15 management options that may be identified in the future. This will include, but not be 

16 limited to, the continuation of the Sacramento River Settlement Contractors’ pooling 

17 agreements, the agreements with respect to use and re-use of water within the Colusa 

18 Basin Drain, and the Basin-Wide Water Management Plan process. 

19 USE OF WATER FURNISHED TO CONTRACTOR

20 6 7. (a) Project Water furnished to the Contractor pursuant to this contract

21 Settlement Contract shall not be delivered or furnished by the Contractor for any 

22 purposes other than agricultural purposes without the written consent of the Contracting 

23 Officer. , including, For purposes of this contract, “agricultural purposes” includes, but is
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1 not restricted to, the watering of livestock, incidental domestic use including related

2 landscape irrigation, or underground water replenishment without written consent of the 

3 Contracting Officer. 

4 (b) Assuming a base-line that includes in excess of 40 years of diversions for 

5 agricultural uses of the quantities of water provided for in Article 3, tThe Contractor shall 

6 comply with requirements applicable to the Contractor in biological opinion(s) prepared 

7 as a result of a consultation regarding the execution of this Settlement Contract 

8 undertaken pursuant to Section 7 of the Endangered Species Act of 1973, as amended, 

9 that are within the Contractor’s legal authority to implement. The Contractor shall 

10 comply with the limitations or requirements imposed by environmental documentation 

11 applicable to the Contractor and within its legal authority to implement regarding specific 

12 activities, including conversion of Irrigation Water to M&I Water. Nothing herein shall 

13 be construed to prevent the Contractor from challenging or seeking judicial relief in a 

14 court of competent jurisdiction with respect to any biological opinion or other 

15 environmental documentation referred to in this Article. 

16 RATE AND METHOD OF PAYMENT FOR WATER

17 7 8. (a) The Contractor shall make payments to the United States as provided in 

18 this Article for all Project Water shown in Exhibit A as follows: 

19 (1) seventy-five percent of the amount shown as Project Water shall be 

20 paid for by the Contractor in each Year; and in addition

21 (2) the Contractor shall pay for Project Water actually diverted in excess 

22 of seventy-five percent of the amount shown as Project Water. of this contract 

23 Settlement Contract and which is actually diverted by Contractor 
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1 Such payments shall be at Rates and Charges established in accordance with: 

2 (i) the Secretary’s then-current ratesetting policies for the Project; and (ii) applicable 

3 Reclamation law and associated rules and regulations, or policies.: Provided, Tthat if the 

4 Contractor desires to use Project Water for other than agricultural use the Rates and 

5 Charges set forth above will be adjusted by the Contracting Officer to the applicable 

6 Rates and Charges for such use. The Rates and Charges applicable to the Contractor 

7 upon execution of this Settlement Contract are set forth in Exhibit “D”, as may be revised 

8 annually. The Secretary’s ratesetting policies for the Project shall be amended, modified, 

9 or superseded only through a public notice and comment procedure. 

10 (b) The Contracting Officer shall notify the Contractor of the Rates and 

11 Charges as follows: 

12 [(1) Prior to July 1 of each Year, the Contracting Officer shall provide the 

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

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

15 basis for such estimate. The Contractor shall be allowed not less than two (2) months to 

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

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

18 during the period October 1 of the current Year, through September 30, of the following 

19 Year, and such notification shall revise Exhibit “D.” 

20 (2) Prior to October 1 of each Year, the Contracting Officer shall make 

21 available to the Contractor an estimate of the Rates for Project Water for the following 

22 Year and the computations and cost allocations upon which those Rates are based. The 

23 Contractor shall be allowed not less than two (2) months to review and comment on such 
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1 computations and cost allocations. By December 31 of each Year, the Contracting 

2 Officer shall provide the Contractor with the final Rates to be in effect for the upcoming 

3 Year, and such notification shall revise Exhibit “D”. 

4 (c) The Contractor shall pay the United States for Project Water in the 

5 following manner: 

6 (1) With respect to Rates, prior to May 1 of each Year, the Contractor 

7 shall pay the United States one-half (1/2) the total amount payable pursuant to 

8 subdivision (a) of this Article and the remainder shall be paid prior to July 1 or such later 

9 date or dates as may be specified by the United States in a written notice to the 

10 Contractor: Provided, however, That that if at any time during the Year the amount of 

11 Project Water diverted by the Contractor shall equal the amount for which payment has 

12 been made, the Contractor shall pay for the remaining amount of such water as shown in 

13 Exhibit A in advance of any further diversion of Project Water. 

14 (2) With respect to Charges, the Contractor shall also make a payment to 

15 the United States, in addition to the Rate(s) in subdivision (c)(1) of this Article, at the 

16 Charges then in effect, before the end of the month following the month of delivery or 

17 transfer. The payments shall be consistent with the quantities of Project Water delivered 

18 or transferred. Adjustment for overpayment or underpayment of Charges shall be made 

19 through the adjustment of payments due to the United States for Charges for the next 

20 month. Any amount to be paid for past due payment of Charges shall be computed 

21 pursuant to Article 12 13 of this contract Settlement Contract. 

22 (d) Payments to be made by the Contractor to the United States under this 

23 contract Settlement Contract may be paid from any revenues available to the Contractor. 
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1 (d1) (Contractor Specific)All revenues received by the United States from 

2 the Contractor relating to the delivery of Project Water or the delivery of non-Project 

3 water through Project facilities shall be allocated and applied in accordance with Federal 

4 Reclamation law and the associated rules or regulations, and the then current Project 

5 ratesetting policies for Irrigation Water. 

6 (e) In order to allow Contractor to monitor the development of Rates and 

7 Charges, tThe Contracting Officer shall keep its accounts pertaining to the administration 

8 of the financial terms and conditions of its long-term water service and Settlement

9 Contracts, in accordance with applicable Federal standards, so as to reflect the application 

10 of Project costs and revenues. The Contracting Officer shall, each Year upon request of 

11 the Contractor, provide to the Contractor a detailed accounting of all Project and 

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

13 and a summary of all water delivery information. The Contracting Officer and the 

14 Contractor shall enter into good faith negotiations to resolve any discrepancies or 

15 disputes relating to accountings, reports, or information. 

16 (f) The parties acknowledge and agree that the efficient administration of this 

17 Settlement Contract is their mutual goal. Recognizing that experience has demonstrated 

18 that mechanisms, policies, and procedures used for establishing Rates and Charges and/or 

19 for making and allocating payments, other than those set forth in this Article may be in 

20 the mutual best interest of the parties, it is expressly agreed that the parties may enter into 

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

22 while this Settlement Contract is in effect without amendment of this Settlement

23 Contract. 
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1 (g) For the term of this contract Settlement Contract, Rates under the 

2 respective ratesetting policies for the Project will be established to recover only 

3 reimbursable operation and maintenance (including any deficits) and capital costs of the 

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

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

6 accordance with the relevant Project ratesetting policy. Proposed changes of significance 

7 in practices which implement the ratesetting policies for the Project will not be 

8 implemented until the Contracting Officer has provided the Contractor an opportunity to 

9 discuss the nature, need, and impact of the proposed change. 

10 (h) Except as provided in subsections [3405(a)(1)(B) and 3405(f)] of the 

11 CVPIA, the Rates for Project Water transferred, exchanged, or otherwise disposed of, by 

12 the Contractor shall be the Contractor’s Rates adjusted upward or downward to reflect the 

13 changed costs of delivery (if any) of the transferred, exchanged, or otherwise disposed of 

14 Project Water to the transferee’s point of delivery in accordance with the then-current 

15 ratesetting policies for the Project. Except as provided in subsection 3407(d)(2)(A) of the 

16 CVPIA, the Charges for Project Water transferred, exchanged, or otherwise disposed of, 

17 by the Contractor shall be the Contractor’s Charges specified in Exhibit D. If the 

18 Contractor is receiving lower Rates and Charges because of inability to pay and is 

19 transferring, exchanging, or otherwise disposing of Project Water to another entity whose 

20 Rates and Charges are not adjusted due to inability to pay, the Rates and Charges for 

21 transferred, exchanged, or otherwise disposed of Project Water shall be the Contractor’s 

22 Rates and Charges unadjusted for ability to pay. 
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1 (i) Pursuant to the Act of October 27, 1986 (100 Stat. 3050), the Contracting 

2 Officer is authorized to adjust determinations of ability to pay every five (5) years. 

3 (j) Each payment to be made pursuant to subdivisions (a) and (b) of this 

4 Article shall be made at the office of the Bureau of Reclamation, Mid-Pacific Region, 

5 File No. 11546, P.O Box 6000, San Francisco, California, 94160-1546, or at such other 

6 place as the United States may designate in a written notice to the said Contractor. 

7 Payments shall be made by cash transaction, wire, or any other mechanism as may be 

8 agreed to in writing by the Contractor and the Contracting Officer. In event there should 

9 be a default in the payment of the amount due, the delinquent payment provisions of 

10 Article 12 13 shall apply. The Contractor shall not be relieved of the whole or any part of 

11 its said obligation by, on account of, or notwithstanding, as the case may be: 

12 (1) Its failure, refusal, or neglect to divert seventy-five percent of the 

13 quantity of Project Water as hereinabove provided shown on Exhibit A; 

14 (2) The default in payment to it by any water user of assessments, tolls, or 

15 other charges levied by or owing to said Contractor; 

16 (3) Any judicial determination that any assessment, toll, or other charge 

17 referred to in subsection 8(c)(2) of this Settlement Contract is irregular, void, or 

18 ineffectual; or 

19 (4) Any injunctive process enjoining or restraining the Contractor from 

20 making or collecting any such assessment, toll, or other charge referred to in subsection 

21 8(c)(2) of this Settlement Contract.
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1 AGREEMENT ON WATER QUANTITIES

2 8 9. (a) During the term of this contract Settlement Contract and any renewals 

3 thereof: 

4 (1) It shall constitute full agreement as between the United States and the 

5 Contractor as to the quantities of water and the allocation thereof between Base Supply 

6 and Project Water which may be diverted by the Contractor from the Sacramento River 

7 for beneficial use on the land shown on Exhibit B which said diversion, use, and 

8 allocation shall not be disturbed so long as the Contractor shall fulfill all of its obligations 

9 hereunder; 

10 (2) The Contractor Neither party shall not claim any right against the 

11 United States other in conflict with the provisions of Article 9(a)(1) hereof, nor shall the 

12 United States claim any right against the Contractor in conflict with the provisions 

13 hereof.

14 (b) Nothing herein contained is intended to or does limit rights of the 

15 Contractor against others than the United States or of the United States against any 

16 person other than the Contractor: Provided, however, That that in the event the 

17 Contractor, the United States, or any other person shall become a party to a general 

18 adjudication of rights to the use of water of the Sacramento River system, this contract

19 Settlement Contract shall not jeopardize the rights or position of either party hereto or of 

20 any other person and the rights of all such persons in respect to the use of such water 

21 shall be determined in such proceedings the same as if this contract Settlement Contract

22 had not been entered into, and if final judgment in any such general adjudication shall 

23 determine that the rights of the parties hereto are different from the rights as assumed 
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1 herein, the United States shall submit it to the Contractor parties shall negotiate an 

2 amendment to give effect to such judgment. In the event the parties are unable to agree 

3 on an appropriate amendment they shall, within 60 days of determining that there is an 

4 impasse, employ the services of a neutral mediator to assist in resolving the impasse. The 

5 cost of the mediation will be shared equally. A failure to reach agreement on an 

6 amendment within 60 days of the end of mediation will cause the immediate termination 

7 of this Settlement Contract. and the contract shall be deemed to have been amended 

8 accordingly unless within sixty (60) days after submission of such amendment to the 

9 Contractor, the Contractor elects to terminate the contract or within the same period of 

10 time the parties agree upon mutually satisfactory amendments to give effect to such 

11 judgment: Provided, further, That if, during the term of this Contract, the Contractor’s or 

12 the United States’ water rights are adjusted or affected, or the responsibility to meet flow, 

13 water quality and/or environmental requirements under those water rights is modified 

14 (e.g., changes to the Delta Water Quality Control Plan and associated water right 

15 actions), by or through any final administrative or judicial proceeding, the Contractor and 

16 the United States shall negotiate appropriate adjustments to this contract. In the event the 

17 parties are unable to agree on an appropriate amendment they shall, within 60 days of 

18 determining that there is an impasse, employ the services of a neutral mediator to assist in 

19 resolving the impasse. The cost of the mediation will be shared equally. A failure to 

20 reach agreement on an amendment within 60 days of the end of mediation will cause the 

21 immediate termination of this Settlement Contract.

22 (c) In the event this contract Settlement Contract terminates, the rights of the 

23 parties to thereafter divert and use water shall exist as if this contract Settlement Contract
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1 had not been entered into; and the fact that as a compromise settlement of a controversy 

2 as to the respective rights of the parties to divert and use water and the yield of such 

3 rights during the term hereof, this contract Settlement Contract places a limit on the 

4 Contract Total to be diverted annually by the Contractor during the contract Settlement 

5 Contract term and segregates it into Base Supply and Project Water shall not jeopardize 

6 the rights or position of either party with respect to its water rights or the yield thereof at 

7 all times after the contract Settlement Contract terminates. It is further agreed that the 

8 Contractor at all times will first use water to the use of which it is entitled by virtue of its 

9 own water rights, and neither the provisions of this contract Settlement Contract, action 

10 taken thereunder, nor payments made thereunder to the United States by the Contractor 

11 shall be construed as an admission that any part of the water used by the Contractor 

12 during the term of this contract Settlement Contract was in fact water to which it would 

13 not have been entitled under water rights owned by it nor shall receipt of payments 

14 thereunder by the United States from the Contractor be construed as an admission that 

15 any part of the water used by the Contractor during the term of this contract Settlement 

16 Contract was in fact water to which it would have been entitled under water rights owned 

17 by it. 

18 Contractors’ proposed language changes were received on July 9, 2002, but we have 

19 not had the opportunity to review. We will discuss the proposed language at the 

20 next negotiations session.

21 MEASUREMENT OF WATER

22 9 10. (a) All water diverted by the Contractor from the Sacramento River will be 

23 diverted at the existing point or points of diversion shown on Exhibit A or at such other 
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1 points as may be mutually agreed upon in writing by the Contracting Officer and the 

2 Contractor. 

3 (b) All water diverted from the Sacramento River pursuant to this contract

4 Settlement Contract will be measured or caused to be measured by the United States at 

5 each point of diversion with existing equipment or equipment to be installed, operated, 

6 and maintained by the United States, and/or others, under contract with and at the option 

7 of the United States. The equipment and methods used to make such measurement shall 

8 be in accordance with sound engineering practices. Upon request of the Contractor, the 

9 accuracy of such measurements will be investigated by the Contracting Officer and any 

10 errors appearing therein will be corrected. 

11 (c) The right of ingress to and egress from all points of diversion is hereby 

12 granted to all authorized employees of the United States. The Contractor also hereby 

13 grants to the United States the right to install, operate, maintain and replace such 

14 equipment on diversion or carriage facilities at each point of diversion as the Contracting 

15 Officer deems necessary. 

16 (d) The Contractor shall not modify, alter, remove, or replace diversion 

17 facilities or do any other act which would alter the effectiveness or accuracy of the 

18 measuring equipment installed by the United States or its representatives unless and until 

19 the Contracting Officer has been notified with due diligence and has been given an 

20 opportunity to modify such measuring equipment in such manner as may be necessary or 

21 appropriate. In the event of an emergency the Contractor shall notify the United States 

22 within a reasonable time thereafter as to the existence of the emergency and the nature 
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1 and extent of such modification, alteration, removal, or replacement of diversion 

2 facilities. 

3 (e) Unless the Contractor has itself already incurred the relevant expenses, t

4 The Contractor shall pay the United States for the costs to repair, relocate, or replace 

5 measurement equipment when the Contractor modifies, alters, removes, or replaces 

6 diversion or carriage facilities. 

7 (f) (Contractor Specific) By __________________[DATE] ________, the 

8 Contractor shall ensure that, unless the Contractor establishes an alternative measurement 

9 program satisfactory to the Contracting Officer, all surface water delivered for irrigation 

10 purposes on the lands delineated on Exhibit B is measured at each agricultural turnout. 

11 The water measuring devices or water measuring methods of comparable effectiveness 

12 must be acceptable to the Contracting Officer. The Contractor shall be responsible for 

13 installing, operating, and maintaining and repairing all such measuring devices and 

14 implementing all such water measuring methods at no cost to the United States. The 

15 Contractor shall inform the Contracting Officer in writing by April 30 of each Year of the 

16 monthly volume of surface water delivered to the lands delineated on Exhibit B during 

17 the previous Year. This information will be used by Reclamation to satisfy the water 

18 measurement requirements of the Contractor’s water conservation plan, as set forth in 

19 Article 28 of this Contract. 

20 (g) All new surface water delivery systems installed within the lands 

21 delineated on Exhibit B after the effective date of this Contract shall also comply with the 

22 measurement provisions described in this Article. 
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1 RULES AND REGULATIONS

2 10 11. The parties agree that the delivery of Project Water for irrigation use or 

3 use of Federal facilities pursuant to this Settlement Contract is subject to Federal 

4 Reclamation law, including but not limited to, the Reclamation Reform Act of 1982 (43 

5 U.S.C.390aa et seq.), as amended and supplemented, and the rules and regulations 

6 promulgated by the Secretary of the Interior under Federal Reclamation law. 

7 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

8 

9 11 12. (a) The obligation of the Contractor to pay the United States as provided 

10 in this Settlement Contract is a general obligation of the Contractor notwithstanding the 

11 manner in which the obligation may be distributed among the Contractor's water users 

12 and notwithstanding the default of individual water users in their obligations to the 

13 Contractor. 

14 

15 (b) The payment of Charges becoming due hereunder is a condition precedent 

16 to receiving benefits under this Settlement Contract. The United States shall not make 

17 water available to the Contractor through Project facilities during any period in which the 

18 Contractor may be in arrears in the advance payment of water Rates due the United 

19 States. The Contractor shall not furnish water made available pursuant to this Settlement

20 Contract for lands or parties which are in arrears in the advance payment of water rates 

21 levied or established by the Contractor. 

22 

23 (c) With respect to subdivision (b) of this Article, the Contractor shall have 

24 no obligation to require advance payment for water Rates which it levies. 

25 

26 CHARGES FOR DELINQUENT PAYMENTS

27 

28 12 13. (a) The Contractor shall be subject to interest, administrative and penalty 

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

30 due date, the Contractor shall pay an interest charge for each day the payment is 

31 delinquent beyond the due date. When a payment becomes sixty (60) days delinquent, 

32 the Contractor shall pay an administrative charge to cover additional costs of billing and 

33 processing the delinquent payment. When a payment is delinquent ninety (90) days or 

34 more, the Contractor shall pay an additional penalty charge of six (6%) percent per year 

35 for each day the payment is delinquent beyond the due date. Further, the Contractor shall 

36 pay any fees incurred for debt collection services associated with a delinquent payment. 

37 

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

39 in the Federal Register by the Department of the Treasury for application to overdue 

40 payments, or the interest rate of one-half of one (0.5%) percent per month prescribed by 
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1 Section 6 of the Reclamation Project Act of 1939 (Public Law 76-260). The interest 

2 charge rate shall be determined as of the due date and remain fixed for the duration of the 

3 delinquent period. 

4 

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

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

7 to the accrued interest, and finally to the overdue payment. 

8 

9 QUALITY OF WATER

10 13 14. The operation and maintenance of Project facilities shall be performed in 

11 such manner as is practicable to maintain the quality of raw water made available through 

12 such facilities at the highest level reasonably attainable as determined by the Contracting 

13 Officer. The United States does not warrant the quality of water and is under no 

14 obligation to construct or furnish water treatment facilities to maintain or better the 

15 quality of water. 

16 WATER AND AIR POLLUTION CONTROL

17 14 15. The Contractor, in carrying out this Settlement Contract, shall comply 

18 with all applicable water and air pollution laws and regulations of the United States and 

19 the State of California, and shall obtain all required permits or licenses from the 

20 appropriate Federal, State, or local authorities. 

21 EQUAL OPPORTUNITY

22 

23 15 16. During the performance of this Settlement Contract, the Contractor agrees 

24 as follows: 

25 

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

27 for employment because of race, color, religion, sex, or national origin. The Contractor 

28 will take affirmative action to ensure that applicants are employed, and that employees 

29 are treated during employment, without regard to their race, color, religion, sex, or 

30 national origin. Such action shall include, but not be limited to, the following: 

31 Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; 

32 layoff or termination, rates of payment or other forms of compensation; and selection for 

33 training, including apprenticeship. The Contractor agrees to post in conspicuous places, 
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1 available to employees and applicants for employment, notices to be provided by the 

2 Contracting Officer setting forth the provisions of this nondiscrimination clause. 

3 

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

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

6 consideration for employment without discrimination because of race, color, religion, 

7 sex, or national origin. 

8 

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

10 with which it has a collective bargaining agreement or other contract or understanding, a 

11 notice, to be provided by the Contracting Officer, advising the said labor union or 

12 workers' representative of the Contractor's commitments under Section 202 of Executive 

13 Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous 

14 places available to employees and applicants for employment. 

15 

16 (d) The Contractor will comply with all provisions of Executive Order No. 

17 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant 

18 orders of the Secretary of Labor. 

19 

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

21 amended Executive Order and by the rules, regulations, and orders of the Secretary of 

22 Labor, or pursuant thereto, and will permit access to its books, records, and accounts by 

23 the Contracting Officer and the Secretary of Labor for purposes of investigation to 

24 ascertain compliance with such rules, regulations, and orders. 

25 

26 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

27 clauses of this Settlement Contract or with any of the said rules, regulations, or orders, 

28 this Settlement Contract may be canceled, terminated, or suspended, in whole or in part, 

29 and the Contractor may be declared ineligible for further Government contracts in 

30 accordance with procedures authorized in said amended Executive Order, and such other 

31 sanctions may be imposed and remedies invoked as provided in said Executive Order, or 

32 by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. 

33 

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

35 in every subcontract or purchase order unless exempted by the rules, regulations, or 

36 orders of the Secretary of Labor issued pursuant to Section 204 of said amended 

37 Executive Order, so that such provisions will be binding upon each subcontractor or 

38 vendor. The Contractor will take such action with respect to any subcontract or purchase 

39 order as may be directed by the Secretary of Labor as a means of enforcing such 

40 provisions, including sanctions for noncompliance: Provided, however, That that in the 

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

42 subcontractor or vendor as a result of such direction, the Contractor may request the 

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

44 

45 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

46 (For Districts Only) 
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1 

2 16 17. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 

3 1964 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as 

4 amended), the Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other 

5 applicable civil rights laws, as well as with their respective implementing regulations and 

6 guidelines imposed by the U.S. Department of the Interior and/or Bureau of Reclamation. 

7 

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

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

10 in, be denied the benefits of, or be otherwise subjected to discrimination under any 

11 program or activity receiving financial assistance from the Bureau of Reclamation. By 

12 executing this Settlement Contract, the Contractor agrees to immediately take any 

13 measures necessary to implement this obligation, including permitting officials of the 

14 United States to inspect premises, programs, and documents. 

15 

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

17 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or 

18 other Federal financial assistance extended after the date hereof to the Contractor by the 

19 Bureau of Reclamation, including installment payments after such date on account of 

20 arrangements for Federal financial assistance which were approved before such date. 

21 The Contractor recognizes and agrees that such Federal assistance will be extended in 

22 reliance on the representations and agreements made in this Article, and that the United 

23 States reserves the right to seek judicial enforcement thereof. 

24 

25 MINGLING OF CONTRACTOR’S PROJECT AND NON-PROJECT WATER

26 17 18. (a) Project Water must of necessity be transported by the Contractor to its 

27 water users by means of the same works and channels used for the transport of its non28 Project Water including Base Supply. Notwithstanding such mingling of water, the 

29 provisions of Article 11 hereof shall be applicable only to Project Water, and such 

30 mingling of water shall not in any manner subject to the provisions of Article 11 hereof 

31 the Contractor’s non-Project water including Base Supply. 

32 (b) If required in accordance with subdivision (c) of this Article, the 

33 Contractor shall install and maintain such measuring equipment and distribution facilities 

34 and maintain such records as may be necessary to determine the amounts of water 

35 delivered to Excess Lands served by the Contractor. The Contractor shall not within any 
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1 month deliver to Ineligible Lands water in excess of the non-Project Water, including 

2 Base Supply, for that month. The Contracting Officer or authorized representative shall 

3 have the right at all reasonable times to inspect such records and measuring equipment. 

4 (c) The Contractor will not be considered in violation of the requirement that 

5 Project Water be delivered only to Eligible Lands during any month of the irrigation 

6 season that the water requirement for beneficial use on Eligible Lands for that month is 

7 equal to or in excess of the Project Water for that month as shown on Exhibit A or any 

8 revision thereof pursuant to subdivision (b) of Article 3. The water requirement for 

9 beneficial use on Eligible Lands will be determined by multiplying: 

10 (1) the number of irrigable acres of the particular types of crops grown in 

11 that year on the acreage designated as eligible by 

12 (2) the Unit Duties as set forth in Exhibit C attached hereto and made a 

13 part hereof, or by such other Unit Duties mutually agreed upon by the Contractor and the 

14 Contracting Officer. In order to make the computation of the water requirement for 

15 Eligible Lands, on April 1 of each Year and concurrently with its order for water for the 

16 irrigation season, the Contractor shall designate the acreage of and type of crops to be 

17 grown on its Eligible Lands that irrigation season. During any month the water 

18 requirement as above determined for crops growing on Eligible Lands during such month 

19 is equal to or in excess of the Project Water for that month as provided herein the 

20 Contractor shall not be required to measure the water delivered to Excess Lands. Any 

21 month the said water requirement is less than the amount of Project Water as provided 

22 herein, the Contractor will be required to measure water delivered to excess land in 

23 accordance with subdivision (b) hereof. 
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1 BOOKS, RECORDS, AND REPORTS

2 18 19. The Contractor shall establish and maintain accounts and other books and 

3 records pertaining to administration of the terms and conditions of this Settlement

4 Contract, including: the Contractor's financial transactions, water supply data, and 

5 Project land and right-of-way agreements; the water users' land-use (crop census), land 

6 ownership, land-leasing and water use data; and other matters that the Contracting 

7 Officer may require. Reports thereon shall be furnished to the Contracting Officer in 

8 such form and on such date or dates as the Contracting Officer may require. Subject to 

9 applicable Federal laws and regulations, each party to this Settlement Contract shall have 

10 the right during office hours to examine and make copies of each other’s books and 

11 official records relating to matters covered by this Settlement Contract. 

12 

13 CHANGE OF PLACE OF USE OR ORGANIZATION

14 19 20. (a) Unless the written consent of the United States is first obtained 

15 consulted no change shall be made in the place of water use shown on Exhibit B. 

16 (b) While this contract Settlement Contract is in effect, no change shall be 

17 made in the area of the Contractor as shown on its Exhibit B, by inclusion or exclusion of 

18 lands, by dissolution, consolidation, or merger or otherwise, except upon unless the 

19 Contracting Officer’s written assent thereto Officer is first consulted. 

20 (c) In the event lands are excluded from the area of the Contractor, as 

21 provided herein, the quantity of Project Water to be diverted may be decreased pursuant 

22 to a supplemental agreement to be executed in respect thereto. 

23 CONSOLIDATION OF CONTRACTING ENTITIES

24 

25 20 21. Consolidation of Contractors may will be approved by the Contracting 

26 Officer upon request provided: (i) the Contracting Officer approves the form and 

27 organization of the resulting entity and the utilization by it of the Contract Total; and (ii) 

28 the obligations of the Contractors are assumed by such the resulting entity. 

29 No such consolidation shall be valid unless and until approved by the Contracting 

30 Officer. 
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1 NOTICES

2 21 22. Any notice, demand, or request authorized or required by this Settlement

3 Contract shall be deemed to have been given, on behalf of the Contractor, when mailed, 

4 postage prepaid, or delivered to the Area Manager, Northern California Area Office, 

5 Bureau of Reclamation, 16349 Shasta Dam Blvd., Shasta Lake, California, 96019, and on 

6 behalf of the United States, when mailed, postage prepaid, or delivered to the Board of 

7 Directors /City Council of the ________________________. The designation of the 

8 addressee or the address may be changed by notice given in the same manner as provided 

9 in this Article for other notices. 

10 

11 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

12 

13 22 23. (a) The provisions of this Settlement Contract shall apply to and bind the 

14 successors and assigns of the parties hereto, but no assignment or transfer of this 

15 Settlement Contract or any right or interest therein shall be valid until approved in writing 

16 by the Contracting Officer. 

17 

18 (b) The assignment of any right or interest in this Settlement Contract by 

19 either party shall not interfere with the rights or obligations of the other party to this 

20 Settlement Contract absent the written concurrence of said other party. 

21 

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

23 approval of any proposed assignment. 

24 

25 OFFICIALS NOT TO BENEFIT

26 

27 23 24. (a) No Member of or Delegate to Congress, Resident Commissioner, or 

28 official of the Contractor shall benefit from this Settlement Contract other than as a water 

29 user or landowner in the same manner as other water users or landowners. 

30 

31 (b) No officer or member of the governing board of the Contractor shall 

32 receive any benefit that may arise by reason of this contract Settlement Contract other 

33 than as a landowner within the Contractor’s service area and in the same manner as other 

34 landowners within the said service area. 

35 

36 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS

37 

38 24 25. The expenditure or advance of any money or the performance of any 

39 obligation of the United States under this Settlement Contract shall be contingent upon 

40 appropriation or allotment of funds. Absence of appropriation or allotment of funds shall 

41 not relieve the Contractor from any obligations under this Settlement Contract. No 

42 liability shall accrue to the United States in case funds are not appropriated or allotted. 

43 

44 CONFIRMATION OF SETTLEMENT CONTRACT
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1 25 26. The Contractor, after the execution of this Settlement Contract, shall 

2 promptly seek to secure a decree of a court of competent jurisdiction of the State of 

3 California, if appropriate, confirming the execution of this contract Settlement Contract. 

4 The Contractor shall furnish the United States a certified copy of the final decree, the 

5 validation proceedings, and all pertinent supporting records of the court approving and 

6 confirming this Settlement Contract, and decreeing and adjudging it to be lawful, valid, 

7 and binding on the Contractor. This Settlement Contract shall not be binding on the 

8 United States until such final decree has been secured. 

9 

10 UNAVOIDABLE GROUNDWATER PERCOLATION

11 26 27. To the extent applicable, the Contractor shall not be deemed to have 

12 delivered Project Water to Excess Lands or Ineligible Lands if such lands are irrigated 

13 with groundwater that reaches the underground strata as an unavoidable result of the 

14 delivery of Project Water by the Contractor to Eligible Lands. 

15 PRIVACY ACT COMPLIANCE

16 

17 27 28. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 

18 552a) (the Act) and the Department of the Interior rules and regulations under the Act (43 

19 CFR 2.45 et seq.) in maintaining Landholder acreage certification and reporting records, 

20 required to be submitted to the Contractor for compliance with Sections 206 and 228 of 

21 the Reclamation Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

22 

23 (b) With respect to the application and administration of the criminal penalty 

24 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees 

25 responsible for maintaining the certification and reporting records referenced in (a) above 

26 are considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

27 

28 (c) The Contracting Officer or a designated representative shall provide the 

29 Contractor with current copies of the Interior Department Privacy Act regulations and the 

30 Bureau of Reclamation Federal Register Privacy Act System of Records Notice (Acreage 

31 Limitation--Interior, Reclamation-31) which govern the maintenance, safeguarding, and 

32 disclosure of information contained in the Landholder's certification and reporting 

33 records. 

34 

35 (d) The Contracting Officer shall designate a full-time employee of the 

36 Bureau of Reclamation to be the System Manager who shall be responsible for making 

37 decisions on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 

38 43 CFR 2.72. The Contractor is authorized to grant requests by individuals for access to 

39 their own records. 

40 
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1 (e) The Contractor shall forward promptly to the System Manager each 

2 proposed denial of access under 43 CFR 2.64; and each request for amendment of records 

3 filed under 43 CFR 2.71; notify the requester accordingly of such referral; and provide 

4 the System Manager with information and records necessary to prepare an appropriate 

5 response to the requester. These requirements do not apply to individuals seeking access 

6 to their own certification and reporting forms filed with the Contractor pursuant to 43 

7 CFR 426.18, unless the requester elects to cite the Privacy Act as a basis for the request. 

8 

9 Contractors’ proposed language changes were received on July 9, 2002, but 

10 we have not had the opportunity to review. We will discuss the proposed 

11 language at the next negotiations session.

12 

13 WATER CONSERVATION

14 28 29. [TO BE REPLACED]. (a) Prior to the diversion of Project Water, the 

15 Contractor shall be implementing an effective water conservation and efficiency program 

16 based on the Contractor's water conservation plan that has been determined by the 

17 Contracting Officer to meet the conservation and efficiency criteria for evaluating water 

18 conservation plans established under Federal law. The water conservation and efficiency 

19 program shall contain definite water conservation objectives, appropriate economically 

20 feasible water conservation measures, and time schedules for meeting those objectives. 

21 Continued diversion of Project Water pursuant to this Settlement Contract shall be 

22 contingent upon the Contractor’s continued implementation of such water conservation 

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

24 conservation plan completed pursuant to subdivision (c) of Article 28 29 of this 

25 Settlement Contract have not yet been determined by the Contracting Officer to meet 

26 such criteria, due to circumstances which the Contracting Officer determines are beyond 

27 the control of the Contractor, Project Water deliveries shall be made under this 

28 Settlement Contract so long as the Contractor diligently works with the Contracting 

29 Officer to obtain such determination at the earliest practicable date, and thereafter the 
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1 Contractor immediately begins implementing its water conservation and efficiency 

2 program in accordance with the time schedules therein. 

3 (b) The Contractor shall submit to the Contracting Officer a report on the 

4 status of its implementation of the water conservation plan on the reporting dates 

5 specified in the then existing conservation and efficiency criteria established under 

6 Federal law. 

7 (c) At five (5)-year intervals, the Contractor shall revise its water 

8 conservation plan to reflect the then current conservation and efficiency criteria for 

9 evaluating water conservation plans established under Federal law and submit such 

10 revised water management plan to the Contracting Officer for review and evaluation. 

11 The Contracting Officer will then determine if the water conservation plan meets 

12 Reclamation’s then current conservation and efficiency criteria for evaluating water 

13 conservation plans established under Federal law. 

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

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

16 OPINIONS AND DETERMINATIONS

17 

18 29 30. (a) Where the terms of this Settlement Contract provide for actions to be 

19 based upon the opinion or determination of either party to this Settlement Contract, said 

20 terms shall not be construed as permitting such action to be predicated upon arbitrary, 

21 capricious, or unreasonable opinions or determinations. Both parties, notwithstanding 

22 any other provisions of this Settlement Contract, expressly reserve the right to seek relief 

23 from and appropriate adjustment for any such arbitrary, capricious, or unreasonable 

24 opinion or determination. Each opinion or determination by either party shall be 
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1 provided in a timely manner. Nothing in subdivision (a) of Article 29 30 of this 

2 Settlement Contract is intended to or shall affect or alter the standard of judicial review 

3 applicable under federal law to any opinion or determination implementing a specific 

4 provision of federal law embodied in statute or regulation. 

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

6 necessary to administer this Settlement Contract that are consistent with the provisions of 

7 this Settlement Contract, the laws of the United States and of the State of California, and 

8 the rules and regulations promulgated by the Secretary of the Interior. Such 

9 determinations shall be made in consultation with the Contractor to the extent reasonably 

10 practicable. 

11 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

12 30 31. (a) In addition to all other payments to be made by the Contractor 

13 pursuant to this Settlement Contract, the Contractor shall pay to the United States, within 

14 sixty (60) days after receipt of a bill and detailed statement submitted by the Contracting 

15 Officer to the Contractor for such specific items of direct cost incurred by the United 

16 States for work requested by the Contractor associated with this Settlement Contract plus 

17 indirect costs in accordance with applicable Bureau of Reclamation policies and 

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

19 agreed to in writing in advance by the Contractor. This Article shall not apply to costs 

20 for routine contract Settlement Contract administration. 

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

22 Contractor pursuant to Article 30 of this Settlement Contract shall be adjusted to reflect 

23 the actual costs when the work has been completed. If the advances exceed the actual 
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1 costs incurred, the difference will be refunded to the Contractor. If the actual costs 

2 exceed the Contractor's advances, the Contractor will be billed for the additional costs 

3 pursuant to Article 30 31 of this Settlement Contract. 

4 WAIVER OF DEFAULT

5 31 32. The waiver by either party to this contract Settlement Contract as to any 

6 default shall not be construed as a waiver of any other default or as authority of the other 

7 party to continue such default or to make, do, or perform, or not to make, do, or perform, 

8 as the case may be, any act or thing which would constitute a default. 
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1 IN WITNESS WHEREOF, the parties hereto have executed this contract 

2 Settlement Contract as of the day and year first hereinabove written. 

3 

4 THE UNITED STATES OF AMERICA 

5 

6 

7 

8 By: __________________________ 

9 Regional Director, Mid-Pacific Region 

10 Bureau of Reclamation 

11 

12 

13 (SEAL) 

14 

15 

16 (Contractor) 

17 

18 

19 By:______________________________ 

20 President 

21 

22 

23 ATTEST: 

24 

25 

26 ________________________________ 

27 Secretary 

28 

29 

30 (I:\sac river renewal\Sac R Std Form 7-10.doc) 
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1 2002 Water Rates and Charges for Contract No. ##-##-###-##### 

2 Contractor Name - Sacramento River

3 

4 

5 

6 Per Acre-Foot 

7 

8 COST OF SERVICE RATES: 

9 

10 Capital Rates $4.24 

11 

12 O&M Rates: 

13 

14 Water Marketing $5.66 

15 Storage $4.87 

16 

17 Deficit Rates: 

18 

19 Interest Bearing $3.34 

20 

21 TOTAL $18.11 

22 

23 FULL-COST RATES: 

24 

25 Section 202(3) Rate is applicable to a 

26 Qualified Recipient or to a Limited 

27 Recipient receiving irrigation water 

28 on or before October 1, 1981. $22.12 

29 

30 Section 205(a)(3) Rate is 

31 applicable to a Limited Recipient that 

32 did not receive irrigation water on or 

33 before October 1, 1981. $24.47 

34 

35 

36 CHARGES UNDER P.L. 102-575 TO THE 

37 RESTORATION FUND 1/ 

38 

39 Restoration Payments (3407(d)(2)(A)) $7.54 

40 

41 

42 1/ Restoration fund charges are payments in addition to the water rates and were 

43 determined pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges 

44 are on a fiscal year basis (10/1 - 9/30).