AG and M&I 

T.O. Final Draft 09/14-2004 

T.O. Draft 08/02-2004 

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

R.O. Draft 07/22-2004 

CVP-Wide Form 05/23-2004 

Delta Division 

Contract No. 

 14-06-200-7823-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

ORO LOMA WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM THE DELTA DIVISION

Table of Contents

Article No. Title Page No.

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

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

 1 Definitions............................................................................................................ 4-9 

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

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

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

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

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

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

 8 Non-Interest Bearing Operation and Maintenance Deficits.................................. 27 

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

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

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

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

 13 Unavoidable Groundwater Percolation................................................................. 33 

 14 Rules and Regulations........................................................................................... 33 

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

 16 Quality of Water ................................................................................................... 34 

 17 Water Acquired by the Contractor Other Than From the United States..........34-37 

 18 Opinions and Determinations ..........................................................................37-38 

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

 20 Charges for Delinquent Payments ........................................................................ 40
Contract No. 14-06-200-7823-LTR1 

Table of Contents - continued

Article No. Title Page No.

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

 22 General Obligation--Benefits Conditioned Upon Payment .............................41-42 

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

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

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

 26 Water Conservation .........................................................................................43-45 

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

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

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

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

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

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

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

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

 35 Changes in Contractor’s Service Area............................................................. 49-50 

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

 37 Notices .................................................................................................................. 50

 38 Confirmation of Contract...................................................................................... 50 

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

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
T.O. Final Draft 09/14-2004 

T.O. Draft 08/02-2004 

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

R.O. Draft 07/22-2004 

CVP-Wide Form 05/23-2004 

Delta Division 

Contract No. 

 14-06-200-7823-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

6 AND

7 ORO LOMA WATER DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE DELTA DIVISION

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

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

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

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

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

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

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

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

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

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

20 WITNESSETH, That: 

21 EXPLANATORY RECITALS

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

23 Project (Project), California, for diversion, storage, carriage, distribution and beneficial use, for
Contract No. 14-06-200-7823-LTR1 

2

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

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

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

27 San Joaquin River and their tributaries; and 

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

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

30 terms of this Contract; and 

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

32 to California law for operation of the Project; and 

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

34 No. 14-06-200-7823, which established terms for the delivery to the Contractor of Project Water 

35 from the Delta Division Facilities from April 7, 1959, through February 28, 1995; and 

 [5th 36 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

37 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

38 interim renewal contract(s) identified as Contract No(s). 14-06-200-7823-IR1, 14-06-200-7823-IR2, 

39 14-06-200-7823-IR3, 14-06-200-7823-IR4, 14-06-200-7823-IR5, 14-06-200-7823-IR6, 14-06-200-

40 7823-IR7, and 14-06-200-7823-IR8, the current of which is hereinafter referred to as the Existing 

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

42 through February 28, 2006; and 

 [6th 43 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

45 programmatic environmental impact statement (PEIS) pursuant to the National Environmental 
Contract No. 14-06-200-7823-LTR1 

3

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

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

 [7th 48 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 50 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 53 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

54 its obligations under the Existing Contract; and 

 [10th 55 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

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

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

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

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

 [11th 60 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

62 an essential portion of its water supply; and 

 [12th 63 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

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

 [13th 65 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

67 Project for all Project purposes; and 
Contract No. 14-06-200-7823-LTR1 

4

 [14th 68 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

73 relative to the Project; and 

 [15th 74 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

75 relationship in order to achieve their mutual goals; and 

76 [15.1] WHEREAS, the Contractor has utilized or may utilize transfers, contract 

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

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

79 use of water; and 

80 [15.2] WHEREAS, the parties desire and intend that this Contract not provide a 

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

82 Explanatory Recital immediately above; and 

 [16th 83 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

87 DEFINITIONS

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

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

 
Contract No. 14-06-200-7823-LTR1 

5

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

91 dates inclusive; 

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

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

94 annually by the Contracting Officer pursuant to this Contract; 

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

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

97 Total; 

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

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

100 regulation; 

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

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

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

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

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

106 amendment of this Contract; 

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

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

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

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

111 Tracy Pumping Plant, the O’Neill Pumping/Generating Plant, and the San Luis Reservoir, used to 
Contract No. 14-06-200-7823-LTR1 

6

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

113 through the Delta-Mendota Canal; 

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

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

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

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

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

119 Reclamation law; 

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

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

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

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

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

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

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

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

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

129 Regulations for the RRA; 

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

131 delivered in accordance with Section 204 of the RRA; 

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

133 the delivery of Irrigation Water; 
Contract No. 14-06-200-7823-LTR1 

7

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

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

136 thereto, and watering of livestock; 

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

138 nonexempt land, as provided in 43 CFR 426.2; 

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

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

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

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

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

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

Article; 

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

140 delivery of M&I Water; 

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

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

143 Project facilities; 

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

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

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

147 Contract was entered into, the Operating Non-Federal Entity was the San Luis & Delta-Mendota 

148 Water Authority. 
Contract No. 14-06-200-7823-LTR1 

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

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

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

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

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

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

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

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

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

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

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

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

161 preceding contract(s); 

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

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

164 through any agency of the Department of the Interior; 

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

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

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

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

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

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

171 Officer, pursuant to subdivision (a) of Article 4 of this Contract; 
Contract No. 14-06-200-7823-LTR1 

9

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

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

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

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

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

177 TERM OF CONTRACT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

194 implementing an effective water conservation and efficiency program based on the Contractor’s 
Contract No. 14-06-200-7823-LTR1 

10

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

212 served by the Contractor. 

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

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

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

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

217 the opportunity to comment to the Contracting Officer on the proposed adoption and application of 
Contract No. 14-06-200-7823-LTR1 

11

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

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

220 years. 

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

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

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

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

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

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

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

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

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

230 (70 Stat. 483). The Contracting Officer anticipates that during the term of this Contract, all 

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

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

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

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

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

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

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

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

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

240 remaining amount of construction costs assignable for ultimate return by the Contractor can 
Contract No. 14-06-200-7823-LTR1 

12

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

242 9(c)(1), whichever is applicable. If the remaining amount of costs that are properly assignable to 

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

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

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

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

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

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

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

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

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

252 subdivision. 

253 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

256 Contract, the Contracting Officer shall make available for delivery to the Contractor 4,600 acre-feet 

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

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

259 of this Contract. 

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

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

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

263 Contractor actually receiving the amount of Project Water set out in subdivision (a) of this Article in 
Contract No. 14-06-200-7823-LTR1 

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

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

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

267 the Contractor was 3,027 acre-feet. Nothing in subdivision (b) of this Article shall affect the rights 

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

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

270 applicable legal requirements. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

286 (are) described in the Contractor’s water conservation plan submitted pursuant to Article 26 of this 
Contract No. 14-06-200-7823-LTR1 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

309 under this Article during the Year without adversely impacting other Project Contractors. At the 
Contract No. 14-06-200-7823-LTR1 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

327 policies. 

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

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

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

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

332 obligations under this Contract and any renewals thereof. Nothing in the preceding sentence shall 
Contract No. 14-06-200-7823-LTR1 

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

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

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

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

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

338 conditions of such approval. 

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

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

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

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

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

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

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

346 TIME FOR DELIVERY OF WATER

 4. (a) On or about February 20th 347 of each Calendar Year, the Contracting Officer 

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

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

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

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

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

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

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

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

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

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

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

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

361 for the Year commencing on such March 1. 

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

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

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

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

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

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

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

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

370 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

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

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

374 by the Contracting Officer and the Contractor. 

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

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

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

378 Contractor at the point or points of delivery established pursuant to subdivision (a) of this Article. 
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379 (c) The Contractor shall deliver Irrigation Water in accordance with any 

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

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

382 approved in advance by the Contracting Officer. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

398 Article. The Contractor shall indemnify the United States, its officers, employees, agents, and 

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

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

401 the control, carriage, handling, use, disposal, or distribution of such Water Delivered beyond such 
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402 point or points of delivery, except for any damage or claim arising out of: (i) acts or omissions of 

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

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

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

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

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

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

409 Operating Non-Federal Entity(ies). 

410 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

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

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

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

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

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

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

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

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

421 delivered for M&I purposes by customer class as defined in the Contractor’s water conservation 

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

423 the Contractor from establishing and collecting any charges, assessments, or other revenues 
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424 authorized by California law. The Contractor shall include a summary of all its annual surface 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

441 (a) of this Article. 

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

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

444 provisions described in subdivision (a) of this Article. 
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445 (d) The Contractor shall inform the Contracting Officer and the State of 

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

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

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

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

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

451 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

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

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

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

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

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

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

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

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

463 Tiered Pricing Component as follows: 

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

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

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

467 Year, and the basis for such estimate. The Contractor shall be allowed not less than two months to 
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468 review and comment on such estimates. On or before September 15 of each Calendar Year, the 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

490 the amount of Water Delivered pursuant to this Contract during any month shall be accompanied 
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491 with appropriate advance payment, at the Rates then in effect, to assure that Project Water is not 

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

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

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

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

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

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

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

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

500 delivered by the last day of February. 

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

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

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

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

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

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

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

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

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

510 Delivered. Adjustment for overpayment or underpayment of Charges shall be made through the 

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

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

513 pursuant to Article 20 of this Contract. 
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514 (e) The Contractor shall pay for any Water Delivered under subdivision (a), (f), 

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

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

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

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

519 (a) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

531 and Contractor revenues, and a summary of all water delivery information. The Contracting Officer 

532 and the Contractor shall enter into good faith negotiations to resolve any discrepancies or disputes 

533 relating to accountings, reports, or information. 

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

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

536 policies, and procedures used for establishing Rates, Charges, and Tiered Pricing Component, 
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537 and/or for making and allocating payments, other than those set forth in this Article may be in the 

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

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

540 effect without amending this Contract. 

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

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

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

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

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

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

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

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

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

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

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

552 3 of this Contract which is in excess of 80 percent of the Contract Total, this increment shall be 

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

554 deliveries of each bear to the cumulative total Water Delivered 

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

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

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

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

559 produced; Provided, That the exemption from the Tiered Pricing Component for Irrigation Water 
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560 shall apply only if such habitat values can be assured consistent with the purposes of the CVPIA 

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

562 such water. 

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

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

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

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

567 Article 3 of this Contract. 

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

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

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

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

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

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

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

575 change. 

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

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

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

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

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

581 Charges because of inability to pay and is transferring Project Water to another entity whose Rates 
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582 and Charges are not adjusted due to inability to pay, the Rates and Charges for transferred Project 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

600 Contractor. 

601 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

604 liability therefore. 
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605 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

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

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

616 transferee. 

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

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

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

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

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

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

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

624 the environmental documentation, such transfers addressed in such documentation shall be 

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

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

627 Officer’s compliance determination shall be reviewed every five years and updated, as necessary, 
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628 prior to the expiration of the then existing five-year period. All subsequent environmental 

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

630 historically transferred within the same geographical area. 

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

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

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

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

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

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

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

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

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

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

641 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

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

645 $1,000 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such 

646 overpayment at the option of the Contractor may be credited against amounts to become due to the 

647 United States by the Contractor. With respect to overpayment, such refund or adjustment shall 

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

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

650 shall be made within 30 days of the Contracting Officer obtaining direction as to how to credit or 
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651 refund such overpayment in response to the notice to the Contractor that it has finalized the 

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

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

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

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

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

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

658 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

663 Contract. 

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

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

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

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

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

669 give the Contractor due notice in advance of such temporary discontinuance or reduction, except in 

670 case of emergency, in which case no notice need be given; Provided, That the United States shall 

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

672 service after such reduction or discontinuance, and if requested by the Contractor, the United States 
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673 will, if possible, deliver the quantity of Project Water which would have been delivered hereunder 

674 in the absence of such discontinuance or reduction. 

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

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

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

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

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

680 under the Contractor. 

681 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

686 determination as soon as practicable. 

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

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

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

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

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

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

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

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

695 Project M&I Water Shortage Policy in its form on the effective date of this Contract for determining 
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696 the amount of Project Water available for delivery to the Project Contractors. Subject to the 

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

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

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

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

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

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

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

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

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

706 hereinafter referred to as the scheduled total; 

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

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

709 referred to as the available supply; 

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

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

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

713 to as the Contractor’s proportionate share; and 

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

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

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

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

718 exceed the Contract Total. In the event the Contracting Officer subsequently determines that the 
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719 Contracting Officer can increase or needs to decrease the available supply for delivery from Delta 

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

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

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

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

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

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

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

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

728 purposes; Provided, that the Contractor has commenced any such judicial challenge or any 

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

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

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

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

733 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

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

738 RULES AND REGULATIONS

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

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

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

742 rules and regulations promulgated by the Secretary of the Interior under Federal Reclamation law. 
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743 WATER AND AIR POLLUTION CONTROL

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

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

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

 

747 QUALITY OF WATER

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

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

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

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

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

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

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

755 Delivered to the Contractor pursuant to this Contract. 

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

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

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

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

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

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

762 (c) Omitted. 

763 WATER ACQUIRED BY THE CONTRACTOR

764 OTHER THAN FROM THE UNITED STATES

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

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

767 Contract may be simultaneously transported through the same distribution facilities of the 
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768 Contractor subject to the following: (i) if the facilities utilized for commingling Irrigation Water 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

783 total irrigable acreage within the Contractor’s Service Area. The incremental fee per acre is the 

784 mathematical result of such quotient times the interest rate determined using Section 202 (3) of the 

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

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

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

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

789 rule, regulation, or policy adopted after the Contractor has been afforded the opportunity to review 
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790 and comment on the proposed rule, regulation, or policy. If such rule, regulation, or policy is 

791 adopted it shall supercede this provision. 

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

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

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

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

796 to be necessary, consistent with the following provisions: 

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

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

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

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

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

802 superceded from time to time. 

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

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

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

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

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

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

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

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

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

812 respective officers, agents, and employees, from any claim for damage to persons or property, direct 
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813 or indirect, resulting from the act(s) of the Contractor, its officers, employees, agents, or assigns, in 

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

815 water into Project facilities. 

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

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

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

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

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

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

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

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

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

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

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

827 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

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

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

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

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

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

841 Contractor to the extent reasonably practicable. 

842 COORDINATION AND COOPERATION

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

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

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

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

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

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

849 including, but not limited to, budget issues. The communication, coordination, and cooperation 

850 provided for hereunder shall extend to all provisions of this Contract. Each party shall retain 

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

852 respective party. 

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

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

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

856 amended as necessary separate and apart from this Contract. The goal of this process shall be to 
Contract No. 14-06-200-7823-LTR1 

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857 provide, to the extent practicable, the means of mutual communication and interaction regarding 

858 significant decisions concerning Project operation and management on a real-time basis. 

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

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

861 intent: 

862 (1) The Contracting Officer will, at the request of the Contractor, assist in 

863 the development of integrated resource management plans for the Contractor. Further, the 

864 Contracting Officer will, as appropriate, seek authorizations for implementation of partnerships to 

865 improve water supply, water quality, and reliability. 

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

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

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

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

870 of California to seek improved water resource management. 

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

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

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

874 hold division level meetings to discuss Project operations, division level water management 

875 activities, and other issues as appropriate. 

876 (d) Without limiting the contractual obligations of the Contracting Officer under 

877 the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 

878 Contracting Officer’s ability to communicate, coordinate, and cooperate with the Contractor or 
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879 other interested stakeholders or to make decisions in a timely fashion as needed to protect health, 

880 safety or the physical integrity of structures or facilities. 

881 CHARGES FOR DELINQUENT PAYMENTS

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

883 on delinquent installments or payments. When a payment is not received by the due date, the 

884 Contractor shall pay an interest charge for each day the payment is delinquent beyond the due date. 

885 When a payment becomes sixty (60) days delinquent, the Contractor shall pay an administrative 

886 charge to cover additional costs of billing and processing the delinquent payment. When a payment 

887 is delinquent ninety (90) days or more, the Contractor shall pay an additional penalty charge of six 

888 (6%) percent per year for each day the payment is delinquent beyond the due date. Further, the 

889 Contractor shall pay any fees incurred for debt collection services associated with a delinquent 

890 payment. 

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

892 the Federal Register by the Department of the Treasury for application to overdue payments, or the 

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

894 Project Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due 

895 date and remain fixed for the duration of the delinquent period. 

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

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

898 accrued interest, and finally to the overdue payment. 

899 EQUAL OPPORTUNITY

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

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

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

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

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

905 include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

906 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

907 compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

908 conspicuous places, available to employees and applicants for employment, notices to be provided 

909 by the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

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

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

912 for employment without discrimination because of race, color, religion, sex, or national origin. 

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

914 with which it has a collective bargaining agreement or other contract or understanding, a notice, to 
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915 be provided by the Contracting Officer, advising the said labor union or workers' representative of 

916 the Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, 

917 and shall post copies of the notice in conspicuous places available to employees and applicants for 

918 employment. 

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

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

921 the Secretary of Labor. 

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

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

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

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

926 rules, regulations, and orders. 

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

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

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

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

931 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

932 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

933 otherwise provided by law. 

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

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

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

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

938 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

939 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

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

941 subcontractor or vendor as a result of such direction, the Contractor may request the United States 

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

943 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

947 individual water users in their obligations to the Contractor. 

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

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

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

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

952 made available pursuant to this Contract for lands or parties which are in arrears in the advance 

953 payment of water rates levied or established by the Contractor. 
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954 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

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

956 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

958 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

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

960 as well as with their respective implementing regulations and guidelines imposed by the U.S. 

961 Department of the Interior and/or Bureau of Reclamation. 

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

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

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

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

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

967 including permitting officials of the United States to inspect premises, programs, and documents. 

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

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

970 financial assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, 

971 including installment payments after such date on account of arrangements for Federal financial 

972 assistance which were approved before such date. The Contractor recognizes and agrees that such 

973 Federal assistance will be extended in reliance on the representations and agreements made in this 

974 Article, and that the United States reserves the right to seek judicial enforcement thereof. 

975 PRIVACY ACT COMPLIANCE

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

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

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

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

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

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

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

983 for maintaining the certification and reporting records referenced in (a) above are considered to be 

984 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

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

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

987 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

988 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

989 contained in the Landholder's certification and reporting records. 
Contract No. 14-06-200-7823-LTR1 

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

991 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

992 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

993 authorized to grant requests by individuals for access to their own records. 

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

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

996 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

997 information and records necessary to prepare an appropriate response to the requester. These 

998 requirements do not apply to individuals seeking access to their own certification and reporting 

999 forms filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the 

1000 Privacy Act as a basis for the request. 

1001 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1002 25. In addition to all other payments to be made by the Contractor pursuant to this 

1003 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1004 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

1005 direct cost incurred by the United States for work requested by the Contractor associated with this 

1006 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

1007 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

1008 writing in advance by the Contractor. This Article shall not apply to costs for routine contract 

1009 administration. 

1010 WATER CONSERVATION

1011 26. (a) Prior to the delivery of water provided from or conveyed through Federally 

1012 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

1013 implementing an effective water conservation and efficiency program based on the Contractor's 

1014 water conservation plan that has been determined by the Contracting Officer to meet the 

1015 conservation and efficiency criteria for evaluating water conservation plans established under 

1016 Federal law. The water conservation and efficiency program shall contain definite water 

1017 conservation objectives, appropriate economically feasible water conservation measures, and time 
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1018 schedules for meeting those objectives. Continued Project Water delivery pursuant to this Contract 

1019 shall be contingent upon the Contractor’s continued implementation of such water conservation 

1020 program. In the event the Contractor's water conservation plan or any revised water conservation 

1021 plan completed pursuant to subdivision (d) of Article 26 of this Contract have not yet been 

1022 determined by the Contracting Officer to meet such criteria, due to circumstances which the 

1023 Contracting Officer determines are beyond the control of the Contractor, water deliveries shall be 

1024 made under this Contract so long as the Contractor diligently works with the Contracting Officer to 

1025 obtain such determination at the earliest practicable date, and thereafter the Contractor immediately 

1026 begins implementing its water conservation and efficiency program in accordance with the time 

1027 schedules therein. 

1028 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1029 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

1030 the Best Management Practices identified by the time frames issued by the California Urban Water 

1031 Conservation Council for such M&I Water unless any such practice is determined by the 

1032 Contracting Officer to be inappropriate for the Contractor. 

1033 (c) The Contractor shall submit to the Contracting Officer a report on the status 

1034 of its implementation of the water conservation plan on the reporting dates specified in the then 

1035 existing conservation and efficiency criteria established under Federal law. 

1036 (d) At five-year intervals, the Contractor shall revise its water conservation plan 

1037 to reflect the then current conservation and efficiency criteria for evaluating water conservation 

1038 plans established under Federal law and submit such revised water management plan to the 

1039 Contracting Officer for review and evaluation. The Contracting Officer will then determine if the 
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1040 water conservation plan meets Reclamation’s then current conservation and efficiency criteria for 

1041 evaluating water conservation plans established under Federal law. 

1042 (e) If the Contractor is engaged in direct groundwater recharge, such activity 

1043 shall be described in the Contractor’s water conservation plan. 

1044 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1045 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

1046 Contract shall not be applicable to or affect non-Project water or water rights now owned or 

1047 hereafter acquired by the Contractor or any user of such water within the Contractor's Service Area. 

1048 Any such water shall not be considered Project Water under this Contract. In addition, this Contract 

1049 shall not be construed as limiting or curtailing any rights which the Contractor or any water user 

1050 within the Contractor's Service Area acquires or has available under any other contract pursuant to 

1051 Federal Reclamation law. 

1052 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

1053 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1054 and responsibility for funding a portion of the costs of such O&M, have been transferred to the San 

1055 Luis & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement 

1056 (8-07-20-X0354) between the United States and the Operating Non-Federal Entity San Luis & 

1057 Delta-Mendota Water Authority. That separate agreement shall not interfere with or affect the 

1058 rights or obligations of the Contractor or the United States hereunder. 

1059 (b) The Contracting Officer has previously notified the Contractor in writing that 

1060 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to the 

1061 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

1062 Contractor shall pay directly to the Operating Non-Federal Entity San Luis & Delta-Mendota Water 
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1063 Authority, or to any successor approved by the Contracting Officer under the terms and conditions 

1064 of the separate agreement between the United States and the Operating Non-Federal Entity San Luis 

1065 & Delta-Mendota Water Authority described in subdivision (a) of this Article, all rates, charges, or 

1066 assessments of any kind, including any assessment for reserve funds, which the Operating Non1067 Federal Entity San Luis & Delta-Mendota Water Authority or such successor determines, sets, or 

1068 establishes for the O&M of the portion of the Project facilities operated and maintained by the 

1069 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority or such successor. Such 

1070 direct payments to the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority or 

1071 such successor shall not relieve the Contractor of its obligation to pay directly to the United States 

1072 the Contractor’s share of the Project Rates, Charges, and Tiered Pricing Component except to the 

1073 extent the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority collects 

1074 payments on behalf of the United States in accordance with the separate agreement identified in 

1075 subdivision (a) of this Article. 

1076 (c) For so long as the O&M of any portion of the Project facilities serving the 

1077 Contractor is performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1078 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 

1079 Rates for Water Delivered under this Contract representing the cost associated with the activity 

1080 being performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority

1081 or its successor. 

1082 (d) In the event the O&M of the Project facilities operated and maintained by the 

1083 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

1084 United States during the term of this Contract, the Contracting Officer shall so notify the 

1085 Contractor, in writing, and present to the Contractor a revised Exhibit “B” which shall include the 
Contract No. 14-06-200-7823-LTR1 

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1086 portion of the Rates to be paid by the Contractor for Project Water under this Contract representing 

1087 the O&M costs of the portion of such Project facilities which have been re-assumed. The 

1088 Contractor shall, thereafter, in the absence of written notification from the Contracting Officer to 

1089 the contrary, pay the Rates, Charges, and Tiered Pricing Component specified in the revised Exhibit 

1090 “B” directly to the United States in compliance with Article 7 of this Contract. 

1091 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1092 29. The expenditure or advance of any money or the performance of any obligation of 

1093 the United States under this Contract shall be contingent upon appropriation or allotment of funds. 

1094 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

1095 under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

1096 or allotted. 

1097 BOOKS, RECORDS, AND REPORTS

1098 30. (a) The Contractor shall establish and maintain accounts and other books and 

1099 records pertaining to administration of the terms and conditions of this Contract, including: the 

1100 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1101 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

1102 data; and other matters that the Contracting Officer may require. Reports thereon shall be furnished 

1103 to the Contracting Officer in such form and on such date or dates as the Contracting Officer may 

1104 require. Subject to applicable Federal laws and regulations, each party to this Contract shall have 

1105 the right during office hours to examine and make copies of the other party's books and records 

1106 relating to matters covered by this Contract. 

1107 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

1108 records, or other information shall be requested from the Contractor by the Contracting Officer 

1109 unless such books, records, or information are reasonably related to the administration or 

1110 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1111 time within which to provide the requested books, records, or information. 

1112 (c) At such time as the Contractor provides information to the Contracting 

1113 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided to 

1114 the Operating Non-Federal Entity. 
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1115 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1116 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1117 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1118 therein shall be valid until approved in writing by the Contracting Officer. 

1119 (b) The assignment of any right or interest in this Contract by either party shall 

1120 not interfere with the rights or obligations of the other party to this Contract absent the written 

1121 concurrence of said other party. 

1122 (c) The Contracting Officer shall not unreasonably condition or withhold 

1123 approval of any proposed assignment. 

1124 SEVERABILITY

1125 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1126 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1127 association or other form of organization whose primary function is to represent parties to Project 

1128 contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1129 enforceability of a provision included in this Contract and said person, entity, association, or 

1130 organization obtains a final court decision holding that such provision is legally invalid or 

1131 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

1132 parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

1133 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

1134 within three months thereafter promptly agree on the appropriate revision(s). The time periods 

1135 specified above may be extended by mutual agreement of the parties. Pending the completion of 

1136 the actions designated above, to the extent it can do so without violating any applicable provisions 

1137 of law, the United States shall continue to make the quantities of Project Water specified in this 
Contract No. 14-06-200-7823-LTR1 

49

1138 Contract available to the Contractor pursuant to the provisions of this Contract which were not 

1139 found to be legally invalid or unenforceable in the final court decision. 

1140 RESOLUTION OF DISPUTES

1141 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

1142 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

1143 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

1144 any matter to the Department of Justice, the party shall provide to the other party 30 days’ written 

1145 notice of the intent to take such action; Provided, That such notice shall not be required where a 

1146 delay in commencing an action would prejudice the interests of the party that intends to file suit. 

1147 During the 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in 

1148 an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

1149 waive or abridge any right or remedy that the Contractor or the United States may have. 

1150 OFFICIALS NOT TO BENEFIT

1151 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1152 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1153 manner as other water users or landowners. 

1154 CHANGES IN CONTRACTOR’S SERVICE AREA

1155 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

1156 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

1157 except upon the Contracting Officer's written consent. 

1158 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1159 Officer will notify the Contractor of any additional information required by the Contracting Officer 

1160 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1161 timely completion of the process. Such process will analyze whether the proposed change is likely 

1162 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability 
Contract No. 14-06-200-7823-LTR1 

50

1163 of the Contractor to pay for Project Water furnished under this Contract or to pay for any 

1164 Federally-constructed facilities for which the Contractor is responsible; and (iii) have an impact on 

1165 any Project Water rights applications, permits, or licenses. In addition, the Contracting Officer shall 

1166 comply with the NEPA and the ESA. The Contractor will be responsible for all costs incurred by 

1167 the Contracting Officer in this process, and such costs will be paid in accordance with Article 25 of 

1168 this Contract.

1169 FEDERAL LAWS

1170 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1171 validity or application in connection with the performance of the terms and conditions of this 

1172 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

1173 terms and conditions of this Contract unless and until relief from application of such Federal law or 

1174 regulation to the implementing provision of the Contract is granted by a court of competent 

1175 jurisdiction. 

1176 NOTICES

1177 37. Any notice, demand, or request authorized or required by this Contract shall be 

1178 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 

1179 to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, California 

1180 93721, and on behalf of the United States, when mailed, postage prepaid, or delivered to the Board 

1181 of Directors of the Oro Loma Water District, P. O. Box 92, South Dos Palos, California 93622. 

1182 The designation of the addressee or the address may be changed by notice given in the same manner 

1183 as provided in this Article for other notices. 

1184 CONFIRMATION OF CONTRACT

1185 38. The Contractor, after the execution of this Contract, shall promptly seek to secure a 

1186 decree of a court of competent jurisdiction of the State of California, confirming the execution of 

1187 this Contract. The Contractor shall furnish the United States a certified copy of the final decree, the 

1188 validation proceedings, and all pertinent supporting records of the court approving and confirming 

1189 this Contract, and decreeing and adjudging it to be lawful, valid, and binding on the Contractor. 
Contract No. 14-06-200-7823-LTR1 

51

1190 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

1191 year first above written. 

1192 THE UNITED STATES OF AMERICA 

1193 By: __________________________________ 

1194 Regional Director, Mid-Pacific Region 

1195 Bureau of Reclamation 

1196 (SEAL) 

1197 ORO LOMA WATER DISTRICT 

1198 By: __________________________________ 

1199 President of the Board of Directors 

1200 Attest: 

1201 By: _________________________________ 

1202 Secretary of the Board of Directors 

1203 (H:\pub 440\LTRC\Final Draft LTRC’s – Fresno, Tracy\09-14-04 Oro Lomo WD Final Draft 

1204 LTRC with exhibits.doc)
FFRREESSNN OO CC OO

MMEERRCC EEDD CCOO

OUTSIDE CANAL

MAIN CANAL

DELTA-MENDOTA CANAL

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9 8

3

6

7

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18

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T12S R12E

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Oro Loma W.D. Contract No. 14-06-200-7823-LTR1

EXHIBIT A

Contractor's Service Area

District Boundary

"

0 0.5 1

Miles

214-208-12688

Note: The Public Land Survey depicted here

was digitized from USGS topographic maps.

Date: October 7, 2004

File Name: N:\districts\contracts\oro_loma\oro_loma.mxd
Contract No. 14-06-200-7823-LTR1 

EXHIBIT B

ORO LOMA WATER DISTRICT

Water Rates and Charges

Note: Rates and Charges are 2004 rates. This exhibit will be updated prior to execution of the 

 contract to reflect current Rates and Charges. 

2004 Rates per Acre-Foot Irrigation M&I COST-OF-SERVICE RATES: Water Water 1/ 

Capital Rates $ 8.09 

O&M Rates: 

Water Marketing 7.59 

Storage 5.83 

Conveyance 

Conveyance Pumping 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing 

CFO/PFR Adj. Rate 2/ 

TOTAL COST-OF-SERVICE-RATES $21.51 1/

FULL-COST RATES

Section 202(3) Rate is applicable to a 

 Qualified Recipient or to a Limited 

 Recipient receiving irrigation water 

 on or before October 1, 1981. $34.62 

Section 205(a)(3) Rate is 

 applicable to a Limited Recipient that 

 did not receive irrigation water on or before October 1, 1981. $41.27 

CHARGES UNDER P.L. 102-575 TO RESTORATION FUND 3/ 

 Restoration Payments (3407(d)(2)(A)) $ 7.82 $15.64 

1/ To be provided as needed. Contractor does not currently receive 

 M&I water and is not projected to take any in the near future. 

2/ Rate represents Chief Financial Officers (CFO) adjustment and Provision for Replacement 

(PFR) credit for option 2 cost deferment to be distributed over 5-year period beginning with 2003 

water rates. 

 

3/ 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).