M&I Only 

Stonyford (County of Colusa) 4/28-2004 

R. O. CVP-Wide Draft 3/18-2004 

Stonyford (County of Colusa) 3/01-2004 

Stonyford (County of Colusa) 7/22-2003 

Stonyford (County of Colusa) 6/27-2003 

R. O. Final CVP-Wide 6/10-2003 

Sac.Valley Division Draft 5/28-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

4-07-20-W0348 -LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

AND

COUNTY OF COLUSA

PROVIDING FOR PROJECT WATER SERVICE TO THE TOWN OF STONYFORD

FROM THE BLACK BUTTE PROJECT

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals ............................................................................................ 2-5 

 1 Definitions............................................................................................................ 5-8 

 2 Term of Contract................................................................................................8-10 

 3 Water to be Made Available and Delivered to the Contractor.........................10-13 

 4 Time for Delivery of Water .............................................................................13-14 

 5 Point of Diversion and Responsibility for Distribution of Water....................14-15 

 6 Measurement of Water Within the Contractor’s Service Area........................15-17 

 7 Rates and Method of Payment for Water.........................................................17-22 

 8 Non-Interest Bearing Operation and Maintenance Deficits.................................. 22 

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

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

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

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

 13 Unavoidable Groundwater Percolation................................................................. 24 

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

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

 16 Quality of Water .............................................................................................. 25-26 

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

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

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

 20 Charges for Delinquent Payments ...................................................................29-30 
Contract No. 4-07-20-W0348-LTR1 

Table of Contents - continued

Article No. Title Page No.

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

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

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

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

 25 Contractor to Pay Certain Miscellaneous Costs............................................... 32-33 

 26 Water Conservation .........................................................................................33-34 

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

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

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

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

 31 Assignment Limited--Successors and Assigns Obligated ...............................35-36 

 32 Severability ........................................................................................................... 36 

 33 Resolution of Disputes.....................................................................................36-37 

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

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

 36 Federal Laws....................................................................................................37-38 

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

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

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

 

 Exhibit A - Map of Contractor’s Service Area 

 

 Exhibit B - Rates and Charges 

 
M&I Only 

Stonyford (County of Colusa) 4/28-2004 

R. O. CVP-Wide Draft 3/18-2004 

Stonyford (County of Colusa) 3/01-2004 

Stonyford (County of Colusa) 7/22-2003 

Stonyford (County of Colusa) 6/27-2003 

R. O. Final CVP-Wide 6/10-2003 

Sac.Valley Division Draft 5/28-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

4-07-20-W0348 -LTR1 

1 

2 

3 UNITED STATES 

4 DEPARTMENT OF THE INTERIOR 

5 BUREAU OF RECLAMATION 

6 Central Valley Project, California 

7 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

8 AND

9 COUNTY OF COLUSA

10 PROVIDING FOR PROJECT WATER SERVICE TO THE TOWN OF STONYFORD

11 FROM THE BLACK BUTTE PROJECT

 

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

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

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

15 as amended and supplemented, August 4, 1939 (53 Stat. 1187), as amended and supplemented, 

16 July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), 

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

18 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, between 

19 THE UNITED STATES OF AMERICA, hereinafter referred to as the United States, and 

20 COUNTY OF COLUSA, a political subdivision of the State of California, duly organized, 

21 existing, and acting pursuant to the laws thereof; 

22 WITNESSETH, That: 
Contract No. 4-07-20-W0348-LTR1 

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23 EXPLANATORY RECITALS

 [1st 24 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

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

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

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

29 and the San Joaquin River and their tributaries; and 

30 [1.1] WHEREAS, the United States constructed the Orland Project which is being 

31 operated by the Orland Unit Water Users’ Association pursuant to Contract No. 14-06-200-3502 

32 dated August 26, 1954, as amended by the contract dated August 24, 1960; and 

 [2nd 33 ] WHEREAS, the United States constructed the Black Butte Dam and Reservoir 

34 which were integrated into the Project and which will be used in part for the furnishing of water 

35 to the Contractor pursuant to the terms of this Contract; and 

36 [2.1] WHEREAS, the water rights of all lands and the use thereof within the watershed 

37 of Stony Creek and its tributaries were adjudicated by the U.S. District Court for the Northern 

38 District of California, Second Division in the United States of America, v. H.C. Angle, et al., 

39 Equity No. 30, hereinafter referred to as the Angle Decree and said rights are administered by 

40 said courts; and 

41 [2.2] WHEREAS, the Contractor has obtained from the State of California Water 

42 Resources Control Board (SWRCB) a Permit 20308 pursuant to "Application No. 27382 to 

43 Appropriate Unappropriated Water", hereinafter referred to as Permit 20308, to appropriate 

44 water by pumping water from the underflow of Stony Creek on the condition, among others, that 

45 such diversion of water is allowed only so long as a water exchange contract between the 

46 Contractor and the United States is in effect; and 
Contract No. 4-07-20-W0348-LTR1 

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47 [2.3] WHEREAS, the United States is willing to make water stored in Black Butte 

48 Reservoir available to the Contractor below the confluence of Little Stony Creek and Stony 

49 Creek from the East Park Reservoir of the Orland Project pursuant to the exchange Contract 

50 No. 14-06-200-1020A, dated June 26, 1964, between the United States and the Orland Unit 

51 Water Users’ Association; and 

52 [2.4] WHEREAS, the United States and the County of Colusa recognize that no water 

53 is physically made available under this Contract in the reach of Stony Creek between the 

54 confluence of Little Stony Creek and Stony Creek and the point of diversion under Permit 

55 20308; and 

 [3rd 56 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

 [4th 58 ] WHEREAS, the Contractor and the United States entered into Contract 

59 No. 4-07-20-W0348, which established terms for the delivery to the Contractor of Project Water 

60 from the Black Butte Project from February 14, 1984, through February 13, 2024, hereinafter 

61 referred to as the “Existing Contract”; and 

 [5th 62 ] WHEREAS, the United States and the Contractor have, pursuant to subsection 

63 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into a 

64 binding agreement identified as Binding Agreement No. 4-07-20-W0348-BA, which sets out the 

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

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

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

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

 [6th 69 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

71 programmatic environmental impact statement (PEIS) pursuant to the National Environmental 
Contract No. 4-07-20-W0348-LTR1 

4

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

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

 [7th 74 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 76 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 79 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

80 of its obligations under the Existing Contract; and 

 [10th 81 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

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

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

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

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

 [11th 86 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

88 as an essential portion of its water supply; and 

 [12th 89 ] WHEREAS, the economies of regions within the Project, including the 

90 Contractor’s, depend upon the continued availability of water, including water service from the 

91 Project; and 

 [13th 92 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

94 Project for all Project purposes; and 

 [14th 95 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

97 repayment of the Project as required by law; to guard reasonably against Project Water 
Contract No. 4-07-20-W0348-LTR1 

5

98 shortages; to achieve a reasonable balance among competing demands for use of Project Water; 

99 and to comply with all applicable environmental statutes, all consistent with the legal obligations 

100 of the United States relative to the Project; and 

 [15th 101 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

102 relationship in order to achieve their mutual goals; and 

 [16th 103 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

107 DEFINITIONS

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

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

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

111 both dates inclusive; 

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

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

114 annually by the Contracting Officer pursuant to this Contract; 

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

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

117 Contract Total; 

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

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

120 or regulation; 

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

122 Contractor is entitled under subdivision (a) of Article 3 of this Contract; 
Contract No. 4-07-20-W0348-LTR1 

6

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

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

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

126 without amendment of this Contract; 

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

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

129 (h) Omitted; 

130 (i) Omitted; 

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

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

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

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

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

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

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

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

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

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

141 of the Rules and Regulations for the RRA; 

142 (k) Omitted; 

143 (l) Omitted; 

144 (m) Omitted; 

145 (n) Omitted; 

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

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

148 crops or livestock; 
Contract No. 4-07-20-W0348-LTR1 

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

150 the delivery of M&I Water; 

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

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

153 maintenance of Project facilities; 

154 (r) Omitted; 

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

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

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

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

159 Reclamation law; 

160 (u) “Project Water” shall mean all water, including water stored in Black 

161 Butte Reservoir and made available from East Park Reservoir of the Orland Project to be 

162 furnished below the confluence of Little Stony Creek and Stony Creek to downstream water 

163 users to replace their water right entitlement water diverted upstream by the Contractor, that is 

164 developed, diverted, stored, or delivered by the Secretary in accordance with the statutes 

165 authorizing the Project and in accordance with the terms and conditions of water rights acquired 

166 pursuant to California law; 

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

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

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

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

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

172 preceding contract(s); 
Contract No. 4-07-20-W0348-LTR1 

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

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

175 through any agency of the Department of the Interior; 

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

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

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

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

180 Officer; 

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

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

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

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

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

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

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

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

189 TERM OF CONTRACT

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

191 20___, and supercedes the Existing Contract. In the event the Contractor wishes to renew this 

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

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

194 (b) Omitted. 

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

196 each, which periods shall be consistent with then-existing Reclamation-wide policy, under terms 

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

198 Contractor shall be afforded the opportunity to comment to the Contracting Officer on the 
Contract No. 4-07-20-W0348-LTR1 

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

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

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

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

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

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

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

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

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

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

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

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

211 9(c)(1), subject to applicable Federal law and under stated terms and conditions mutually 

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

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

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

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

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

217 9(c)(1). If the remaining amount of costs that are properly assignable to the Contractor cannot be 

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

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

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

221 request of the Contractor and satisfaction of the condition set out above, conversion to a contract 
Contract No. 4-07-20-W0348-LTR1 

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

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

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

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

226 carries forth in substantially identical terms the provisions of this subdivision. 

227 (e) The Contractor recognizes that this Contract is subject to the terms and 

228 conditions of Contract No. 14-06-200-1020A, between the United States and the Orland Unit 

229 Water Users’ Association. In the event that Contract No. 14-06-200-1020A is terminated, this 

230 Contract shall also be considered terminated. 

231 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

232 3. (a) During the term of this Contract, consistent with all applicable State water 

233 rights, permits, and licenses, Federal law, and subject to the provisions set forth in Articles 11 

234 and 12 of this Contract, the Contracting Officer shall make available for delivery to the 

235 Contractor a maximum of 40 acre-feet of Project Water annually for M&I purposes. Provided,

236 That the Contracting Officer shall not be obligated to deliver more than 10 acre-feet of Project 

237 Water annually until Permit 20308 is amended or modified by the SWRCB to allow delivery of 

238 more than 10 acre-feet of Project Water. Upon such amendment or modification, the Contractor 

239 may request, and the Contracting Officer shall be obligated to deliver to the Contractor such 

240 additional amounts of Project Water, up to the above-stated Contractor’s maximum entitlement 

241 as authorized by the SWRCB; Provided, further, That the requirements of Federal law, if any, 

242 which apply to the delivery and use of such additional quantities of Project Water have been met. 

243 Water Delivered to the Contractor in accordance with this subdivision shall be scheduled and 

244 paid for pursuant to the provisions of Articles 4 and 7 of this Contract. Water Made Available 

245 pursuant to this Contract shall be released by the United States from East Park Reservoir in Little 

246 Stony Creek, when necessary to replace the water under the prior rights of downstream users 

247 below the confluence of Little Stony Creek and Stony Creek when the Contractor is diverting 
Contract No. 4-07-20-W0348-LTR1 

11

248 water pursuant to Permit 20308. Water Made Available under this Contract is not available for 

249 sale or other method of disposal by the Contractor. 

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

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

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

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

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

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

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

257 water made available to the Contractor was nine acre-feet. Nothing in subdivision (b) of this 

258 Article shall affect the rights and obligations of the parties under any provision of this Contract. 

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

260 applicable legal requirements. 

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

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

263 lieu), ground-water banking programs, surface water storage programs, and other similar 

264 programs utilizing Project Water or other water furnished pursuant to this Contract conducted 

265 within the Contractor’s Service Area which are consistent with applicable State law and result in 

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

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

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

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

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

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

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

273 Water or other water furnished pursuant to this Contract conducted outside the Contractor’s 
Contract No. 4-07-20-W0348-LTR1 

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274 Service Area may be permitted upon written approval of the Contracting Officer, which approval 

275 will be based upon environmental documentation, Project Water rights, and Project operational 

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

277 guidelines. 

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

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

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

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

282 Contract, which evidences in excess of 19 years of diversions for M&I purposes of the quantities 

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

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

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

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

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

288 Article. 

289 (f) Omitted. 

290 (g) Omitted. 

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

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

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

294 Contract, during the terms thereof shall not be disturbed so long as the Contractor shall fulfill all 

295 of its obligations under this Contract and any renewals thereof. Nothing in the preceding 

296 sentence shall affect the Contracting Officer’s ability to impose shortages under Article 11 or 

297 subdivision (b) of Article 12 of this Contract or applicable provisions of any subsequent renewal 

298 contracts. 
Contract No. 4-07-20-W0348-LTR1 

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

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

301 accordance with the terms and conditions of such approval. 

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

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

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

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

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

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

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

309 Contract to use Project Water. 

310 TIME FOR DELIVERY OF WATER

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

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

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

314 Historic Average and will be updated monthly, and more frequently if necessary, based on then315 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

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

317 operations and the basis of the estimate, with relevant supporting information, upon the written 

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

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

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

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

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

323 United States to the Contractor pursuant to this Contract for the Year commencing on such 
Contract No. 4-07-20-W0348-LTR1 

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324 March 1. The Contracting Officer shall use all reasonable means to deliver Project Water 

325 according to the approved schedule for the Year commencing on such March 1. 

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

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

328 Contractor's Service Area. 

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

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

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

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

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

334 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

335 5. (a) The Contractor intends to divert 10 acre-feet of Project Water during the 

336 period September 15 of each Year to April 15 of the succeeding Year from wells near the 

337 community of Stonyford pursuant to Permit 20308. 

338 (b) The Contracting Officer or other appropriate entity as designated by the 

339 Contracting Officer (hereinafter referred to as the “Other Appropriate Entity”) shall make all 

340 reasonable efforts to maintain sufficient levels of water in Black Butte Reservoir and East Park 

341 Reservoir to deliver Project Water to the Contractor. 

342 (c) Omitted. 

343 (d) Water diverted by the Contractor from its wells near the community of 

344 Stonyford pursuant to Permit 20308 shall be measured and recorded with equipment furnished, 

345 installed, operated, and maintained by the Contractor at or near the wells. Upon the request of 

346 either party to this Contract, the Contracting Officer shall investigate the accuracy of such 

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

348 period of time when accurate measurements have not been made, the Contracting Officer shall 
Contract No. 4-07-20-W0348-LTR1 

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349 consult with the Contractor prior to making a final determination of the quantity delivered for 

350 that period of time. 

351 (e) (1) The construction, operation, and maintenance of all tunnels, 

352 pipelines, pumps, canals, storage tanks, distribution lines, and other facilities required to divert, 

353 measure, convey, and distribute water and the expense thereof shall be the responsibility of the 

354 Contractor. 

355 (2) The Contracting Officer shall not be responsible for the control, 

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

357 this Contract beyond the delivery points specified in subdivision (a) of this Article. The 

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

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

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

361 with the control, carriage, handling, use, disposal, or distribution of such Water Delivered

362 beyond such delivery points, except for any damage or claim arising out of (i) acts or omissions 

363 of the Contracting Officer or any of its officers, employees, agents, or assigns, with the intent of 

364 creating the situation resulting in any damage or claim, (ii) willful misconduct of the Contracting 

365 Officer or any of its officers, employees, agents, or assigns, (iii) negligence of the Contracting 

366 Officer or any of its officers, employees, agents, or assigns, or (iv) damage or claims resulting 

367 from a malfunction of facilities owned and/or operated by the United States. 

368 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

370 Contracting Officer. The Contractor shall ensure that water delivered for M&I purposes is 

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

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

373 Contractor shall be responsible for installing, operating, and maintaining and repairing all such 

374 measuring devices and implementing all such water measuring methods at no cost to the United 
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375 States. The Contractor shall use the information obtained from such water measuring devices or 

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

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

378 by customer class as defined in the Contractor’s water conservation plan provided for in 

379 Article 26 of this Contract. Nothing herein contained, however, shall preclude the Contractor 

380 from establishing and collecting any charges, assessments, or other revenues authorized by 

381 California law. The Contractor shall include a summary of all its annual water deliveries in the 

382 annual report described in subdivision (c) of Article 26. 

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

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

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

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

387 alternative measurement programs approved by the Contracting Officer, at which such 

388 measurement devices or water measuring methods are being used, and, if applicable, identifying 

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

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

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

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

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

394 Contracting Officer notifies the Contractor that the measuring devices or methods are 

395 inadequate, the parties shall within 60 days following the Contracting Officer‘s response, 

396 negotiate in good faith the earliest practicable date by which the Contractor shall modify said 

397 measuring devices and/or measuring methods as required by the Contracting Officer to ensure 

398 compliance with subdivision (a) of this Article. 
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399 (c) All new water delivery systems installed within the Contractor's Service 

400 Area after the effective date of this Contract shall also comply with the measurement provisions 

401 described in subdivision (a) of this Article. 

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

403 California in writing by April 30 of each Year of the monthly volume of water delivered within 

404 the Contractor’s Service Area during the previous Year. 

 (e) The Contractor shall inform the Contracting Officer on or before the 10th 405 

406 calendar day of each month of the quantity of M&I Water taken during the preceding month. 

407 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

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

412 comment procedure; (ii) applicable Federal Reclamation law and associated rules and 

413 regulations, or policies; and (iii) other applicable provisions of this Contract. Payments shall be 

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

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

416 Component applicable to the Contractor upon execution of this Contract are set forth in Exhibit 

417 “B,” as may be revised annually. 

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

419 and Tiered Pricing Component as follows: 

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

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

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

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

424 to review and comment on such estimates. On or before September 15 of each Calendar Year, 
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425 the Contracting Officer shall notify the Contractor in writing of the Charges to be in effect during 

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

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

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

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

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

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

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

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

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

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

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

437 Contractor shall make an advance payment to the United States equal to the total amount payable 

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

439 scheduled to be delivered pursuant to this Contract during the first two calendar months of the 

440 Year. Before the end of the first month and before the end of each calendar month thereafter, the 

441 Contractor shall make an advance payment to the United States, at the Rate(s) set under 

442 subdivision (a) of this Article, for the Water Scheduled to be delivered pursuant to this Contract 

443 during the second month immediately following. Adjustments between advance payments for 

444 Water Scheduled and payments at Rates due for Water Delivered shall be made before the end of 

445 the following month; Provided, That any revised schedule submitted by the Contractor pursuant 

446 to Article 4 of this Contract which increases the amount of Water Delivered pursuant to this 

447 Contract during any month shall be accompanied with appropriate advance payment, at the Rates 

448 then in effect, to assure that Project Water is not delivered to the Contractor in advance of such 

449 payment. In any month in which the quantity of Water Delivered to the Contractor pursuant to 

450 this Contract equals the quantity of Water Scheduled and paid for by the Contractor, no 
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451 additional Project Water shall be delivered to the Contractor unless and until an advance 

452 payment at the Rates then in effect for such additional Project Water is made. Final adjustment 

453 between the advance payments for the Water Scheduled and payments for the quantities of Water 

454 Delivered during each Year pursuant to this Contract shall be made as soon as practicable, but no 

455 later than April 30th of the following Year, or 60 days after the delivery of Project Water carried 

456 over under subdivision (g) of Article 3 of this Contract if such water is not delivered by the last 

457 day of February. 

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

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

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

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

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

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

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

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

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

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

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

469 be computed pursuant to Article 20 of this Contract. 

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

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

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

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

474 Contract shall be no more than the otherwise applicable Rate for M&I Water under subdivision 

475 (a) of this Article. 
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476 (f) Payments to be made by the Contractor to the United States under this 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

496 while this Contract is in effect without amending this Contract. 

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

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

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

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

501 Delivered in excess of 80 percent of the Contract Total, but less than or equal to 90 percent of the 
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502 Contract Total, shall equal one-half of the difference between the Rate established under 

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

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

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

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

507 (2) Omitted. 

508 (3) Omitted. 

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

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

511 capital costs of the Project, as those terms are used in the then-current Project ratesetting 

512 policies, and interest, where appropriate, except in instances where a minimum Rate is applicable 

513 in accordance with the relevant Project ratesetting policy. Changes of significance in practices 

514 which implement the Contracting Officer’s ratesetting policies will not be implemented until the 

515 Contracting Officer has provided the Contractor an opportunity to discuss the nature, need, and 

516 impact of the proposed change. 

517 (l) Omitted. 

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

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

520 (n) With respect to the Rates for M&I Water, the Contractor asserts that it is 

521 not legally obligated to pay any Project deficits claimed by the United States to have accrued as 

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

523 Contract, the Contractor does not waive any legal rights or remedies that it may have with 

524 respect to such disputed issues. Notwithstanding the execution of this Contract, and payments 

525 made hereunder, the Contractor may challenge in the appropriate administrative or judicial 

526 forums: (1) the existence, computation, or imposition of any deficit charges accruing during the 

527 term of the Existing Contract and any preceding interim renewal contracts, if applicable; 
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528 (2) interest accruing on any such deficits; (3) the inclusion of any such deficit charges or interest 

529 in the Rates; (4) the application by the United States of payments made by the Contractor under 

530 its Existing Contract and any preceding interim renewal contracts, if applicable; and (5) the 

531 application of such payments in the Rates. The Contracting Officer agrees that the Contractor 

532 shall be entitled to the benefit of any administrative or judicial ruling in favor of any Project 

533 M&I contractor on any of these issues, and credits for payments heretofore made, Provided, That 

534 the basis for such ruling is applicable to the Contractor. 

535 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

538 liability therefor. 

539 SALES, TRANSFERS, OR EXCHANGES OF WATER

540 9. Omitted. 

541 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

544 liabilities of the Contractor arising out of this Contract then due and payable. Overpayments of 

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

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

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

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

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

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

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

552 Contractor that it has finalized the accounts for the Year in which the overpayment was made. 
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553 (b) All advances for miscellaneous costs incurred for work requested by the 

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

555 when the work has been completed. If the advances exceed the actual costs incurred, the 

556 difference will be refunded to the Contractor. If the actual costs exceed the Contractor's 

557 advances, the Contractor will be billed for the additional costs pursuant to Article 25. 

558 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

563 provided in this Contract. 

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

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

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

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

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

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

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

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

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

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

574 or reduction. 

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

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

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

578 the United States any right to seepage or return flow being put to reasonable and beneficial use 
Contract No. 4-07-20-W0348-LTR1 

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579 pursuant to this Contract within the Contractor’s Service Area by the Contractor or those 

580 claiming by, through, or under the Contractor. 

581 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

583 reasonable means to guard against a Condition of Shortage in the quantity of water to be made 

584 available to the Contractor pursuant to this Contract. In the event the Contracting Officer 

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

586 Contractor of said determination as soon as practicable. 

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

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

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

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

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

592 (c) Omitted. 

593 (d) Project Water furnished under this Contract will be allocated in 

594 accordance with the then-existing Project M&I Water Shortage Policy. Such policy shall be 

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

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

597 rights or remedies it may have to file or participate in any administrative or judicial proceeding 

598 contesting (i) the sufficiency of the manner in which any Project M&I Water Shortage Policy 

599 adopted after the effective date of this Contract was promulgated; (ii) the substance of such a 

600 policy; or (iii) the applicability of such a policy. By agreeing to the foregoing, the Contracting 

601 Officer does not waive any legal defenses or remedies that it may then have to assert in such a 

602 proceeding. 

603 UNAVOIDABLE GROUNDWATER PERCOLATION

604 13. Omitted. 
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605 RULES AND REGULATIONS

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

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

608 and the rules and regulations promulgated by the Secretary of the Interior under Federal 

609 Reclamation law. 

610 WATER AND AIR POLLUTION CONTROL

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

612 water and air pollution laws and regulations of the United States and the State of California, and 

613 shall obtain all required permits or licenses from the appropriate Federal, State, or local 

614 authorities. 

615 QUALITY OF WATER

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

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

618 Water to the Contractor in accordance with the water quality standards specified in subsection 

619 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

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

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

622 of Water Delivered to the Contractor pursuant to this Contract. The United States does not 

623 warrant the quality of Water Delivered to the Contractor pursuant to this Contract. 

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

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

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

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

628 to surface and subsurface agricultural drainage discharges generated through the use of Federal 
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629 or Contractor facilities or Project Water provided by the Contractor within the Contractor's 

630 Service Area. 

631 WATER ACQUIRED BY THE CONTRACTOR

632 OTHER THAN FROM THE UNITED STATES

633 17. (a) Omitted. 

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

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

636 facilities, subject to the completion of appropriate environmental documentation, with the 

637 approval of the Contracting Officer and the execution of any contract determined by the 

638 Contracting Officer to be necessary, consistent with the following provisions: 

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

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

641 to the United States of an appropriate rate as determined by the applicable Project ratesetting 

642 policy, the RRA, and the Project use power policy, if such Project use power policy is applicable, 

643 each as amended, modified, or superceded from time to time. 

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

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

646 purposes as determined by the Contracting Officer; (ii) reduce the quantity or quality of water 

647 available to other Project Contractors; (iii) interfere with the delivery of contractual water 

648 entitlements to any other Project Contractors; or (iv) interfere with the physical maintenance of 

649 the Project facilities. 

650 (3) The United States shall not be responsible for control, care, or 

651 distribution of the non-Project water before it is introduced into or after it is delivered from the 

652 Project facilities. The Contractor hereby releases and agrees to defend and indemnify the United 

653 States and its respective officers, agents, and employees, from any claim for damage to persons 

654 or property, direct or indirect, resulting from the acts of the Contractor, its officers’, employees’, 
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655 agents’ or assigns’, act(s) in (i) extracting or diverting non-Project water from any source, or (ii) 

656 diverting such non-Project water into Project facilities. 

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

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

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

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

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

662 of the facilities declared to be available by the Contracting Officer for conveyance and 

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

664 non-Project contractors. 

665 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

673 intended to or shall affect or alter the standard of judicial review applicable under Federal law to 

674 any opinion or determination implementing a specific provision of Federal law embodied in 

675 statute or regulation. 

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

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

678 laws of the United States and of the State of California, and the rules and regulations 

679 promulgated by the Secretary of the Interior. Such determinations shall be made in consultation 

680 with the Contractor to the extent reasonably practicable. 
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681 COORDINATION AND COOPERATION

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

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

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

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

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

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

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

689 coordination, and cooperation provided for hereunder shall extend to all provisions of this 

690 Contract. Each party shall retain exclusive decision making authority for all actions, opinions, 

691 and determinations to be made by the respective party. 

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

693 Contractor, other affected Project Contractors, and the Contracting Officer shall arrange to meet 

694 with interested Project Contractors to develop a mutually agreeable, written Project-wide 

695 process, which may be amended as necessary separate and apart from this Contract. The goal of 

696 this process shall be to provide, to the extent practicable, the means of mutual communication 

697 and interaction regarding significant decisions concerning Project operation and management on 

698 a real-time basis. 

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

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

701 intent: 

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

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

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

705 partnerships to improve water supply, water quality, and reliability. 
Contract No. 4-07-20-W0348-LTR1 

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

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

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

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

710 State of California to seek improved water resource management. 

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

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

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

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

715 management activities, and other issues as appropriate. 

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

717 under the other Articles of this Contract nothing in this Article shall be construed to limit or 

718 constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 

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

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

721 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

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

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

730 associated with a delinquent payment. 

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

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

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

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

735 determined as of the due date and remain fixed for the duration of the delinquent period. 
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736 (c) When a partial payment on a delinquent account is received, the amount 

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

738 accrued interest, and finally to the overdue payment. 

739 EQUAL OPPORTUNITY

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

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

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

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

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

745 shall include, but not be limited to, the following: Employment, upgrading, demotion, or 

746 transfer; recruitment or recruitment advertising; layoff or termination, rates of payment or other 

747 forms of compensation; and selection for training, including apprenticeship. The Contractor 

748 agrees to post in conspicuous places, available to employees and applicants for employment, 

749 notices to be provided by the Contracting Officer setting forth the provisions of this 

750 nondiscrimination clause. 

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

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

753 consideration for employment without discrimination because of race, color, religion, sex, or 

754 national origin. 

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

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

757 to be provided by the Contracting Officer, advising the said labor union or workers' 

758 representative of the Contractor's commitments under Section 202 of Executive Order 11246 of 

759 September 24, 1965, and shall post copies of the notice in conspicuous places available to 

760 employees and applicants for employment. 

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

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

763 of the Secretary of Labor. 

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

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

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

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

768 such rules, regulations, and orders. 

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

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

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

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

773 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 
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774 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

775 otherwise provided by law. 

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

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

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

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

780 action with respect to any subcontract or purchase order as may be directed by the Secretary of 

781 Labor as a means of enforcing such provisions, including sanctions for noncompliance: 

782 Provided, however, That in the event the Contractor becomes involved in, or is threatened with, 

783 litigation with a subcontractor or vendor as a result of such direction, the Contractor may request 

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

785 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

789 of individual water users in their obligations to the Contractor. 

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

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

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

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

794 water made available pursuant to this Contract for lands or parties which are in arrears in the 

795 advance payment of water rates levied or established by the Contractor. 

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

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

798 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

800 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

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

802 laws, as well as with their respective implementing regulations and guidelines imposed by the 

803 U.S. Department of the Interior and/or Bureau of Reclamation. 

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

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

806 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

807 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

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

809 including permitting officials of the United States to inspect premises, programs, and documents. 
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810 (c) The Contractor makes this agreement in consideration of and for the 

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

812 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of 

813 Reclamation, including installment payments after such date on account of arrangements for 

814 Federal financial assistance which were approved before such date. The Contractor recognizes 

815 and agrees that such Federal assistance will be extended in reliance on the representations and 

816 agreements made in this Article, and that the United States reserves the right to seek judicial 

817 enforcement thereof. 

818 PRIVACY ACT COMPLIANCE

819 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) 

820 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et 

821 seq.) in maintaining Landholder acreage certification and reporting records, required to be 

822 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation 

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

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

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

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

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

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

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

830 of Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--

831 Interior, Reclamation-31) which govern the maintenance, safeguarding, and disclosure of 

832 information contained in the Landholder's certification and reporting records. 

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

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

835 on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The 

836 Contractor is authorized to grant requests by individuals for access to their own records. 

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

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

839 under 43 CFR 2.71; notify the requester accordingly of such referral; and provide the System 

840 Manager with information and records necessary to prepare an appropriate response to the 

841 requester. These requirements do not apply to individuals seeking access to their own 

842 certification and reporting forms filed with the Contractor pursuant to 43 CFR 426.18, unless the 

843 requester elects to cite the Privacy Act as a basis for the request. 

844 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

846 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 
Contract No. 4-07-20-W0348-LTR1 

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

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

849 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

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

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

852 contract administration. 

853 WATER CONSERVATION

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

855 Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor 

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

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

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

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

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

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

862 Contract shall be contingent upon the Contractor's continued implementation of such water 

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

864 conservation plan completed pursuant to subdivision (d) of Article 26 of this Contract have not 

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

866 the Contracting Officer determines are beyond the control of the Contractor, water deliveries 

867 shall be made under this Contract so long as the Contractor diligently works with the Contracting 

868 Officer to obtain such determination at the earliest practicable date, and thereafter the Contractor 
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869 immediately begins implementing its water conservation and efficiency program in accordance 

870 with the time schedules therein. 

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

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

873 implement the Best Management Practices identified by the time frames issued by the California 

874 Urban Water Conservation Council for such M&I Water unless any such practice is determined 

875 by the Contracting Officer to be inappropriate for the Contractor. 

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

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

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

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

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

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

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

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

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

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

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

887 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

888 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

889 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

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

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

892 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

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

894 contract pursuant to Federal Reclamation law. 
Contract No. 4-07-20-W0348-LTR1 

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895 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

896 28. Omitted. 

897 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

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

899 the United States under this Contract shall be contingent upon appropriation or allotment of 

900 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

901 obligations under this Contract. No liability shall accrue to the United States in case funds are 

902 not appropriated or allotted. 

903 BOOKS, RECORDS, AND REPORTS

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

905 records pertaining to administration of the terms and conditions of this Contract, including: the 

906 Contractor's financial transactions, water supply data, and Project land and right-of-way 

907 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

908 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

909 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

910 Officer may require. Subject to applicable Federal laws and regulations, each party to this 

911 Contract shall have the right during office hours to examine and make copies of the other party's 

912 books and records relating to matters covered by this Contract. 

913 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

914 books, records, or other information shall be requested from the Contractor by the Contracting 

915 Officer unless such books, records, or information are reasonably related to the administration or 

916 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

917 time within which to provide the requested books, records, or information. 

918 (c) Omitted. 

919 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

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

921 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

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

923 (b) The assignment of any right or interest in this Contract by either party 

924 shall not interfere with the rights or obligations of the other party to this Contract absent the 

925 written concurrence of said other party. 
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926 (c) The Contracting Officer shall not unreasonably condition or withhold his 

927 approval of any proposed assignment. 

928 SEVERABILITY

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

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

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

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

933 enforceability of a provision included in this Contract and said person, entity, association, or 

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

935 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

936 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

937 final court decision identify by mutual agreement the provisions in this Contract which must be 

938 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

939 The time periods specified above may be extended by mutual agreement of the parties. Pending 

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

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

942 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

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

944 RESOLUTION OF DISPUTES

945 33. Should any dispute arise concerning any provisions of this Contract, or the 

946 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

947 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

948 Officer referring any matter to Department of Justice, the party shall provide to the other party 

949 30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

950 required where a delay in commencing an action would prejudice the interests of the party that 

951 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 
Contract No. 4-07-20-W0348-LTR1 

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952 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

953 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

954 United States may have. 

955 OFFICIALS NOT TO BENEFIT

956 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

957 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

958 manner as other water users or landowners. 

959 CHANGES IN CONTRACTOR’S SERVICE AREA

960 35. (a) While this Contract is in effect, no change may be made in the 

961 Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

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

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

964 Officer will notify the Contractor of any additional information required by the Contracting 

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

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

967 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

968 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

969 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

970 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

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

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

973 be paid in accordance with Article 25 of this Contract. 

974 FEDERAL LAWS

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

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

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

978 the terms and conditions of this Contract unless and until relief from application of such Federal 
Contract No. 4-07-20-W0348-LTR1 

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979 law or regulation to the implementing provision of the Contract is granted by a court of 

980 competent jurisdiction. 

981 NOTICES

982 37. Any notice, demand, or request authorized or required by this Contract shall be 

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

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

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

986 mailed, postage prepaid, or delivered to the Board of Supervisors of the County of Colusa, 546 

987 Jay Street, Colusa, California 95932. The designation of the addressee or the address may be 

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

989 CONFIRMATION OF CONTRACT

990 38. The Contractor, after the execution of this Contract, shall furnish the Contracting 

991 Officer evidence that pursuant to the laws of the State of California, the Contractor is a legally 

992 constituted entity and the Contract is lawful, valid, and binding on the Contractor. This Contract 

993 shall not be binding on the United States until such evidence has been provided to the 

994 Contracting Officer’s satisfaction. 
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995 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

996 the day and year first above written. 

997 THE UNITED STATES OF AMERICA 

998 By: ______________________________________ 

999 Regional Director, Mid-Pacific Region 

1000 Bureau of Reclamation 

1001 COUNTY OF COLUSA 

1002 By: ______________________________________ 

1003 Chairperson of the Board of Supervisors 

1004 Attest: 

1005 By: _________________________________ 

1006 Secretary of the Board of Supervisors 
Contract No. 4-07-20-W0348-LTR1 

EXHIBIT A

[Map or Description of Contractor’s Service Area]
Contract No. 4-07-20-W0348-LTR1 

EXHIBIT B 

2004 Water Rates and Charges 

County of Colusa (Town of Stonyford) – Black Butte Project

 M&I COST OF SERVICE RATES: Per Acre Foot

 Capital Rate: $ 7.27 

 O&M Rates: 

Water Marketing 5.01 

 Storage 6.38 

 Deficit Rate: 1.65 

 CFO/PRF Adjustment Rate 1/ 2.57

 TOTAL $22.88 

 M&I FULL COST RATE: $27.20

 CHARGES UNDER P.L. 102-575 TO THE

 RESTORATION FUND 2/ 

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

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

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

those costs be deferred. 

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

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

basis (10/1 - 9/30).