SIDE-BY-SIDE COMPARISON OF 

SRSC AND USBR DRAFT CONRACTS 

SRSC Document, 5/31/02 USBR Document, 6/21/02 

R.O. Draft 05/15-2002 

Contract No. 

Standard Irrigation District Form 

SRSC Draft 05/22/02 

SRSC Draft 05/31/02

R.O. Draft 05/15-2002 

R.O. Draft 06/21-2002 

Contract No. 

Standard Irrigation District Form 

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

Central Valley Project, California

WATER RIGHTS SETTLEMENT

CONTRACT BETWEEN THE UNITED 

STATES AND 

___________________________________

________________ 

DIVERTER OF WATER FROM 

SACRAMENTO RIVER SOURCES 

PROVIDING FOR PROJECT WATER 

SERVICE AND AGREEMENT ON 

DIVERSION OF WATER

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

CONTRACT BETWEEN THE UNITED 

STATES AND 

___________________________________

________________ 

DIVERTER OF WATER FROM 

SACRAMENTO RIVER SOURCES 

PROVIDING FOR PROJECT WATER 

SERVICE AND AGREEMENT ON 

DIVERSION OF WATER 

Table of Contents

Article No. Title Page No. 

Table of Contents

Article No. Title Page No. 

Preamble 1 Preamble 1 

Explanatory Recitals 2-3 Explanatory Recitals 2-3 

1 Definitions 3-6 1 Definitions 3-6 7

2 Term of Contract 6-7 2 Term of Contract 6-7 

3 Water to be Furnished to Contractor

 7-9 10

3 Water to be Furnished to Contractor

 7-9 8-10

4 Return Flow 9 10-11 4 Return Flow 9 10-11

5 Constraints on the Availability of 

Water 10-11-12

5 Constraints on the Availability of 

Water 10-11-12
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6 Integrated Water Management and 

Partnerships 12-13

6 Integrated Water Management and 

Partnerships 12

6 7 Use of Water Furnished to 

Contractor 11 13

6 7 Use of Water Furnished to 

Contractor 11 12-13

7 8 Rate and Method of Payment for 

Water 11-16 14-18

7 8 Rate and Method of Payment for 

Water 11-16 13-18

8 9 Agreement on Water Quantities

 16-18 19-21

8 9 Agreement on Water Quantities

 16-18-20 

9 10 Measurement of Water 

 18-20 21-23

9 10 Measurement of Water 

 18-20-22

10 11 Rules and Regulations 

 20-21 23

10 11 Rules and Regulations 

 20-21 22

11 12 General Obligation – Benefits 

Conditioned Upon Payment 

 21 23-24

11 12 General Obligation – Benefits 

Conditioned Upon Payment 

 21 22-23

12 13 Charges For Delinquent Payments

 21 24

12 13 Charges For Delinquent Payments

 21 23

13 14 Quality of Water 22 24-25 13 14 Quality of Water 22 23

14 15 Water and Air Pollution Control

 22 25

14 15 Water and Air Pollution Control

 22 24

15 16Equal Opportunity 22-23 25-26 15 16 Equal Opportunity 22-23 24-25

16 17 Compliance With Civil Rights 

Laws And Regulations 

 23-24 26-27

16 17 Compliance With Civil Rights 

Laws And Regulations 

 23-24 25

17 18 Mingling of Contractor’s Project 

and Non-Project Water 24-25 27-28

17 18 Mingling of Contractor’s Project 

and Non-Project Water 24-25 26-27

18 19 Books, Records, and Reports 

 25-26 28

18 19 Books, Records, and Reports 

 25-26 27
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19 20 Change Of Place Of Use Or 

Organization 26 28-29

19 20 Change Of Place Of Use Or 

Organization 26 27-28

20 21 Consolidation Of Contracting 

Entities 26 29

20 21 Consolidation Of Contracting 

Entities 26 28

21 22 Notices 26-27 29 21 22 Notices 26-27 28

22 23 Assignment Limited – Successors 

and Assigns Obligated 27 29-30

22 23 Assignment Limited – Successors 

and Assigns Obligated 27 28-29

23 24 Officials Not to Benefit 27 30 23 24 Officials Not to Benefit 27 29

24 25 Contingent Upon Appropriation or 

Allotment of Funds 27 30

24 25 Contingent Upon Appropriation or 

Allotment of Funds 27 29

25 26 Confirmation of Contract 

 27 30

25 26 Confirmation of Contract 

 27 29

26 27 Unavoidable Groundwater 

Percolation 28 30

26 27 Unavoidable 

Groundwater Percolation 28 29

27 28 Privacy Act Compliance 28 31 27 28 Privacy Act Compliance 

 28 29-30

28 29 Water Conservation

29-30 31-33

28 29 Water Conservation 

 29-30-31

29 30 Opinions And Determinations

 30-31 33

29 30 Opinions And Determinations

 30-31 32

30 31 Contractor to Pay Certain 

Miscellaneous Costs 31 34

30 31 Contractor to Pay Certain 

Miscellaneous Costs 31 32-33

31 32 Waiver of Default 31 34 31 32 Waiver of Default 31 33

Signatures 32 35 Signatures 32 33-34

Exhibit A Schedule of Monthly 

Diversions of Water 

Exhibit A Schedule of Monthly 

Diversions of Water 

Exhibit B Map of Contractor’s 

Ownership 

Exhibit B Map of Contractor’s 

Ownership 
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Exhibit C Unit Duties Exhibit C Unit Duties 

Exhibit D Rates and Charges Exhibit D Rates and Charges 35

[FIRST PAGE OF CONTRACT] [FIRST PAGE OF CONTRACT] 

R.O. Draft 05/15-2002 

Contract No. 

Standard Irrigation District Form 

SRSC Draft 05/02/02 

SRSC Draft 05/22/02 

SRSC Draft 05/31/02

R.O. Draft 05/15-2002 

R.O. Draft 06/21-2002

Contract No. 

Standard Irrigation District Form 

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

Central Valley Project, California

WATER RIGHTS SETTLEMENT

CONTRACT BETWEEN THE UNITED 

STATES AND 

___________________________________

____________ 

DIVERTER OF WATER FROM 

SACRAMENTO RIVER SOURCES 

PROVIDING FOR PROJECT WATER 

SERVICE AND AGREEMENT ON 

DIVERSION OF WATER

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

CONTRACT BETWEEN THE UNITED 

STATES AND 

___________________________________

________________ 

DIVERTER OF WATER FROM 

SACRAMENTO RIVER SOURCES 

PROVIDING FOR PROJECT WATER 

SERVICE AND AGREEMENT ON 

DIVERSION OF WATER 

THIS CONTRACT, hereinafter 

referred to as “Settlement Contract,” is 

entered into by THE UNITED STATES 

OF AMERICA, hereinafter referred to as 

the United States, made this _____ day of 

____________________, 2002, in 

pursuance pursuant to the applicable 

authority granted to it generally of in the 

Act of June 17, 1902 (32 Stat. 388), and 

acts amendatory or supplementary thereto, 

including, but not limited to, the Acts of 

THIS CONTRACT, made this 

_____ day of ____________________, 

2002, in pursuance generally of the Act of 

June 17, 1902 (32 Stat. 388), and acts 

amendatory or supplementary thereto, 

including, but not limited to, the Acts of 

August 26, 1937 (50 Stat. 844), as 

amended and supplemented, August 4, 

1939 (53 Stat. 1187), as amended and 

supplemented, July 2, 1956 (70 Stat. 483), 

June 21, 1963 (77 Stat. 68), October 12, 
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5

August 26, 1937 (50 Stat. 844), as 

amended and supplemented, August 4, 

1939 (53 Stat. 1187), as amended and 

supplemented, including but not limited to 

Section 14 thereto, July 2, 1956 (70 Stat. 

483), June 21, 1963 (77 Stat. 68), October 

12, 1982 (96 Stat. 1262), October 27, 1986 

(100 Stat. 3050), as amended, and Title 

XXXIV of the Act of October 30, 1992 

(106 Stat. 4706), all collectively hereinafter 

referred to as Federal Reclamation law, 

between THE UNITED STATES OF 

AMERICA, hereinafter referred to as the 

United States, and 

_______________________, hereinafter 

referred to as the Contractor, a public 

agency of the State of California, duly 

organized, existing, and acting pursuant to 

the laws thereof, with its principal place of 

business in California; (may change 

depending on contracting entity) 

1982 (96 Stat. 1262), October 27, 1986 

(100 Stat. 3050), as amended, and Title 

XXXIV of the Act of October 30, 1992 

(106 Stat. 4706), all collectively hereinafter 

referred to as Federal Reclamation law, 

between THE UNITED STATES OF 

AMERICA, hereinafter referred to as the 

United States, and 

_______________________, hereinafter 

referred to as the Contractor, a public 

agency of the State of California, duly 

organized, existing, and acting pursuant to 

the laws thereof, with its principal place of 

business in California; (may change 

depending on contracting entity) 

WITNESSETH, That that: WITNESSETH, That: 

EXPLANATORY RECITALS EXPLANATORY RECITALS

WHEREAS, the United States has 

constructed and is operating the Central 

Valley Project, California, for diversion, 

storage, carriage, distribution and 

beneficial use, for flood control, irrigation, 

[1st] WHEREAS, the United States 

has constructed and is operating the Central 

Valley Project, California, for diversion, 

storage, carriage, distribution and 

beneficial use, for flood control, irrigation, 
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municipal, domestic, industrial, fish and 

wildlife mitigation, protection and 

restoration, generation and distribution of 

electric energy, salinity control, navigation 

and other beneficial uses, of waters of the 

Sacramento River, the American River, the 

Trinity River, and the San Joaquin River 

and their tributaries; and 

municipal, domestic, industrial, fish and 

wildlife mitigation, protection and 

restoration, generation and distribution of 

electric energy, salinity control, navigation 

and other beneficial uses, of waters of the 

Sacramento River, the American River, the 

Trinity River, and the San Joaquin River 

and their tributaries; and 

WHEREAS, the Contractor asserts 

that it has rights to divert, is diverting, and 

will continue to divert for reasonable 

beneficial use, water from the natural flow 

of the Sacramento River and tributaries 

thereto, that would have been flowing 

therein if the Central Valley Project were 

not in existence; and 

[2nd] WHEREAS, the Contractor 

asserts that it has rights to divert, is 

diverting, and will continue to divert for 

reasonable beneficial use, water from the 

natural flow of the Sacramento River and 

tributaries thereto, that would have been 

flowing therein if the Central Valley 

Project were not in existence; and 

[Contractor Specific – “Other” Rights]

WHEREAS, the construction and 

operation of the integrated and coordinated 

Central Valley Project has changed and 

will further change the regimen of the 

Sacramento, American, San Joaquin, and 

Trinity Rivers and the Sacramento-San 

Joaquin Delta from unregulated flow to 

regulated flow; and 

[3rd] WHEREAS, the construction 

and operation of the integrated and 

coordinated Central Valley Project has 

changed and will further change the 

regimen of the Sacramento, American, San 

Joaquin, and Trinity Rivers and the 

Sacramento-San Joaquin Delta from 

unregulated flow to regulated flow; and 

WHEREAS, the United States 

asserts that it has rights to divert, is 

diverting, and will continue to divert waters 

[4th] WHEREAS, the United States 

asserts that it has rights to divert, is 

diverting, and will continue to divert waters 
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from said Rivers and said Delta in 

connection with the operation of said 

Central Valley Project, and 

from said Rivers and said Delta in 

connection with the operation of said 

Central Valley Project, and 

WHEREAS, the Contractor and the 

United States had a dispute over the nature, 

extent and relative priority of their 

respective water rights which threatened to 

result in the initiation of an adjudication of 

the relevant stream systems and as a means 

to settle that dispute entered into Contract 

No. ______________, as amended, 

hereinafter referred to as the Existing 

Contract, which established terms for the 

delivery to the Contractor of Central Valley 

Project Water and the quantities of Base 

Supply the Contractor may has a right to

divert from the Sacramento River from 

____________ through 

______________________; and 

[5th] WHEREAS, the Contractor 

and the United States had a dispute over 

the respective rights of the parties to divert 

and use water from the regulated flow of 

the Sacramento River which threatened to 

result in litigation, and as a means to settle 

that dispute, entered into Contract No. 

______________, as amended, hereinafter 

referred to as the Existing Contract, which 

established terms for the delivery to the 

Contractor of Central Valley Project Water,

and the quantities of Base Supply the 

United States and the Contractor agreed 

may be diverted by the Contractor from the 

Sacramento River pursuant to such contract

from ____________ through March 31, 

2004; and 

WHEREAS, the United States and 

the Contractor have a current dispute over 

the meaning and intent of Articles 9 and 5 

of the Existing Contract, including 

litigation, but nonetheless without 

prejudicing the respective parties’ positions 

with respect to that litigation has requested

desire to enter into the long-term renewal 

of the Existing Contract, pursuant to the 

[6th] WHEREAS, although the 

Contractor and the United States has 

requested the long-term renewal of the 

Existing Contract, disagree with respect to 

the authority of the United States to change 

the quantities of Base Supply and/or 

Project water specified in this Contract 

from the quantities specified in the Existing 

Contract and that dispute is being litigated 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

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terms of the Existing Contract, Federal 

Reclamation law, and the laws of the State 

of California, and the United States has 

determined that the Contractor has Parties 

have fulfilled all of its their respective

obligations under the Existing Contract; 

and

in a lawsuit entitled GCID v. United States 

of America, Civ. No. S-01-1816 GEB/JFM 

(E.D. CA), both the Contractor and the 

United States are willing to agree to the 

dismissal of that lawsuit without waiving 

or otherwise prejudicing their respective 

right to assert whatever arguments and 

defenses either of them believe is 

appropriate if that issue is subsequently 

litigated and enter into this Contract 

pursuant to the terms of the Existing 

Contract, Federal Reclamation law, and the 

laws of the State of California, and the 

United States has determined that the 

Contractor has fulfilled all of its 

obligations under; and

WHEREAS, to assure the 

Contractor of the enjoyment and use of the 

regulated flow of the said Rivers and the 

Delta, and to provide for the economical 

operation of the Central Valley Project by, 

and the reimbursement to, the United States 

for expenditures made for said Project; 

[7th] WHEREAS, to assure the 

Contractor of the enjoyment and use of the 

regulated flow of the said Rivers and the 

Delta, and to provide for the economical 

operation of the Central Valley Project by, 

and the reimbursement to, the United States 

for expenditures made for said Project; 

NOW, THEREFORE, in 

consideration of the performance of the 

herein contained provisions, conditions, 

and covenants, it is agreed as follows:

NOW, THEREFORE, in 

consideration of the performance of the 

herein contained provisions, conditions, 

and covenants, it is agreed as follows:

DEFINITIONS DEFINITIONS
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1. When used herein, unless 

otherwise expressed or incompatible with 

the intent hereof, the term: 

1. When used herein, unless 

otherwise expressed or incompatible with 

the intent hereof, the term: 

(a) “Base Supply” shall mean 

the quantity of water established in Articles 

3 and 5 which the United States agrees may 

be diverted by that the Contractor has a 

right to divert from the Sacramento River 

each month during the period April through 

October of each Year without payment to 

the United States for such quantities 

diverted; 

(a) “Base Supply” shall mean 

the quantity of water established in Articles 

3 and 5 which the United States agrees may 

be diverted by the Contractor from the 

Sacramento River each month during the 

period April through October of each Year 

without payment to the United States for 

such quantities diverted; 

(b) “Charges” shall mean the 

payments for Project Water required by 

Federal Reclamation law agreed to 

pursuant to this Settlement Contract in 

addition to the “Rates” specified in this 

Contract. The nature and extent of Charges 

as well as categories of Charges is 

specified in the attached Exhibit “D” as 

determined annually by the Contracting 

Officer pursuant to this Contract; 

(b) “Charges” shall mean the 

payments for Project Water which the 

Contractor is required by Federal 

Reclamation law to pay to the United 

States in addition to the Rates specified in 

this Contract as determined annually by the 

Contracting Officer pursuant to this 

Contract. The type and amount of each 

Charge shall be specified in Exhibit D; 

(c) “Contract Total” shall mean 

the sum of the Base Supply and Project 

Water available for diversion by the 

Contractor for the period April 1 through 

October 31; 

(c) “Contract Total” shall mean 

the sum of the Base Supply and Project 

Water available for diversion by the 

Contractor for the period April 1 through 

October 31; 
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(d) “Critical Year” shall mean 

any Year in which either of the following 

eventualities exists: 

(d) “Critical Year” shall mean 

any Year in which either of the following 

eventualities exists: 

(1) The forecasted full 

natural inflow to Shasta Lake for the 

current Water Year, as such forecast is 

made by the United States on or before 

February 15 and reviewed as frequently 

thereafter as conditions and information 

warrant, is equal to or less than three 

million two hundred thousand (3,200,000)

acre-feet; or 

(1) The forecasted full 

natural inflow to Shasta Lake for the 

current Water Year, as such forecast is 

made by the United States on or before 

February 15 and reviewed as frequently 

thereafter as conditions and information 

warrant, is equal to or less than three 3.2

million two hundred thousand (3,200,000)

acre-feet; or 

(2) The total accumulated 

actual deficiencies below four million 

(4,000,000) acre-feet in the immediately 

prior Water Year or series of successive 

prior Water Years each of which had 

inflows of less than four million 

(4,000,000) acre-feet, together with the 

forecasted deficiency for the current Water 

Year, exceed eight hundred thousand 

(800,000) acre-feet. For the purpose of 

determining a Critical Year the computed 

inflow to Shasta Lake as it would have 

existed under present upstream 

development above Shasta Lake as of 

September 1, 1963 shall be used as the full 

natural inflow to Shasta Lake. In the event 

(2) The total accumulated 

actual deficiencies below four 4 million 

(4,000,000) acre-feet in the immediately 

prior Water Year or series of successive 

prior Water Years each of which had 

inflows of less than four 4 million 

(4,000,000) acre-feet, together with the 

forecasted deficiency for the current Water 

Year, exceed eight hundred thousand 

(800,000) acre-feet. For the purpose of 

determining a Critical Year the computed 

inflow to Shasta Lake under present 

upstream development above Shasta Lake 

shall be used as the full natural inflow to 

Shasta Lake. In the event that major 

construction occurs above Shasta Lake 
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that major construction occurs above 

Shasta Lake after April 1, 2004, which 

materially alters the present regimen of the 

stream systems contributing to Shasta 

Lake, the computed inflow to Shasta Lake 

used to define a Critical Year will, be 

adjusted to eliminate the effect of such 

material alterations. After consultation 

with the State of California, the National 

Weather Service, and other recognized 

forecasting agencies, the Contracting 

Officer will select the forecast to be used 

and will make the details of it available to 

the Contractor. The same forecasts used by 

the United States for the operation of the 

Project shall be used to make the forecasts 

hereunder; 

after April 1, 2004 September 1, 1963, 

which materially alters the present regimen 

of the stream systems contributing to 

Shasta Lake, the computed inflow to Shasta 

Lake used to define a Critical Year will, be 

adjusted to eliminate the effect of such 

material alterations. After consultation 

with the State of California, the National 

Weather Service, and other recognized 

forecasting agencies, the Contracting 

Officer will select the forecast to be used 

and will make the details of it available to 

the Contractor. The same forecasts used by 

the United States for the operation of the 

Project shall be used to make the forecasts 

hereunder; 

(e) “CVPIA” shall mean the 

Central Valley Project Improvement Act, 

Title XXXIV of the Act of October 30, 

1992 (106 Stat. 4706); 

(e) “CVPIA” shall mean the 

Central Valley Project Improvement Act, 

Title XXXIV of the Act of October 30, 

1992 (106 Stat. 4706); 

(f) “Eligible Lands” shall mean 

all lands to which Project Water may be 

delivered in accordance with Section 204 

of the Reclamation Reform Act of October 

12, 1982 (96 Stat. 1263), as amended, 

hereinafter referred to as RRA;

(f) “Eligible Lands” shall mean 

all lands to which Project Water may be 

delivered in accordance with Section 204 

of the Reclamation Reform Act of October 

12, 1982 (96 Stat. 1263), as amended, 

hereinafter referred to as RRA;

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

contained in Section 204 of the RRA, other 

than those lands exempt from acreage 

limitation under Federal Reclamation law; 

all lands in excess of the limitations 

contained in Section 204 of the RRA, other 

than those lands exempt from acreage 

limitation under Federal Reclamation law; 

(h) “Full Cost Rate” shall mean 

that water rate described in Sections 

205(a)(3) or 202(3) of the RRA, whichever 

is applicable; 

(h) “Full Cost Rate” shall mean 

that water rate described in Sections 

205(a)(3) or 202(3) of the RRA, whichever 

is applicable; 

(i) “Ineligible Lands” shall 

mean all lands to which Project Water may 

not be delivered in accordance with Section 

204 of the RRA; 

(i) “Ineligible Lands” shall 

mean all lands to which Project Water may 

not be delivered in accordance with Section 

204 of the RRA; 

(j) “Landholder” shall mean a 

party that directly or indirectly owns or 

leases nonexempt land, as provided in 43 

CFR 426.2; 

(j) “Landholder” shall mean a 

party that directly or indirectly owns or 

leases nonexempt land, as provided in 43 

CFR 426.2; 

(k) “Project” shall mean the 

Central Valley Project owned by the 

United States and managed by the 

Department of the Interior, Bureau of 

Reclamation; 

(k) “Project” shall mean the 

Central Valley Project owned by the 

United States and managed by the 

Department of the Interior, Bureau of 

Reclamation; 

(l) “Project Water” shall mean 

all water diverted or scheduled to be 

diverted each month during the period 

April through October of each Year by the 

Contractor from the Sacramento River 

(l) “Project Water” shall mean 

all water diverted or scheduled to be 

diverted each month during the period 

April through October of each Year by the 

Contractor from the Sacramento River 
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which is in excess of the Base Supply. The 

United States recognizes the right of the 

Contractor to make arrangements for 

acquisition of water from projects of others 

than the United States for delivery through 

the Sacramento River and tributaries 

subject to written agreement between 

Contractor and the United States as to 

identification of such water which water 

when so identified shall not be deemed 

Project Water under this contract

Settlement Contract; 

which is in excess of the Base Supply. The 

United States recognizes the right of the 

Contractor to make arrangements for 

acquisition of water from projects of others 

than the United States for delivery through 

the Sacramento River and tributaries 

subject to written agreement between 

Contractor and the United States as to 

identification of such water which water 

when so identified shall not be deemed 

Project Water under this cContract; 

(m) “Rates” shall mean the 

payments for Project Water determined 

annually by the Contracting Officer in 

accordance with the then current applicable 

water ratesetting policies for the Project, as 

described in subdivision (a) of Article 8 of 

this Settlement Contract; 

(m) “Rates” shall mean the 

payments for Project Water determined 

annually by the Contracting Officer in 

accordance with the then current applicable 

water ratesetting policies for the Project, as 

described in subdivision (a) of Article 8 of 

this Contract; 

(n) “Secretary” or “Contracting 

Officer” shall mean the Secretary of the 

Interior, a duly appointed successor, or an 

authorized representative acting pursuant to 

any authority of the Secretary and through 

any agency of the Department of the 

Interior; 

(n) “Secretary” or “Contracting 

Officer” shall mean the Secretary of the 

Interior, a duly appointed successor, or an 

authorized representative acting pursuant to 

any authority of the Secretary and through 

any agency of the Department of the 

Interior; 

(o) “Water Year” shall mean 

the period commencing with October 1 of 

(o) “Water Year” shall mean 

the period commencing with October 1 of 
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one year and extending through September 

30 of the next; and 

one year and extending through September 

30 of the next; and 

(p) “Year” shall mean a 

calendar year. 

(p) “Year” shall mean a 

calendar year. 

TERM OF SETTLEMENT CONTRACT TERM OF CONTRACT

2. This contract Settlement 

Contract shall become effective April 1, 

2004, and shall remain in effect until and 

including March 31, 2044: Provided, That

that under terms and conditions mutually 

agreeable to the parties hereto, renewals 

may be made for successive periods not to 

exceed forty (40) years each. The terms 

and conditions of each renewal shall be 

agreed upon not later than one (1) year 

prior to the expiration of the then existing 

contract Settlement Contract: Provided

further, That that, with respect to Project 

Water and the portions of this Settlement 

Contract pertaining thereto, upon written 

request by the Contractor of the Secretary 

made not later than one (1) year prior to the 

expiration of this contract Settlement 

Contract, whenever, account being taken of 

the amount then credited to the costs of 

construction of water supply works, the 

remaining amount of construction costs of 

water supply work which is properly 

2. (a) This contract shall become 

effective April 1, 2004, and shall remain in 

effect until and including March 31, 2044: 

Provided, Tthat under terms and conditions 

mutually agreeable to the parties hereto, 

renewals may be made for successive 

periods not to exceed forty (40) years each. 

The terms and conditions of each renewal 

shall be agreed upon not later than one (1)

year prior to the expiration of the then 

existing contract:. 
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assignable for ultimate return by the 

Contractor as established by the Secretary 

of the Interior pursuant to (3) of Section 1 

of Public Law 643 (70 Stat. 483), probably 

can be repaid to the United States within 

the term of a contract under subsection 

9(d), Section 9 of the1939 Reclamation 

Project Act (53 Stat. 1187), the relevant 

portions of this contract Settlement 

Contract may be converted to a contract 

under said subsection 9(d) upon terms and 

conditions mutually agreeable to the United 

States and the Contractor. Notwithstanding 

any provision of this contract Settlement 

Contract, the Contractor reserves and shall 

have all rights and benefits under Public 

Law 643. 

[N/A] (b) Provided further, That

uUpon written request by the Contractor of 

the Secretary made not later than one (1)

year prior to the expiration of this contract, 

whenever, account being taken of the 

amount then credited to the costs of 

construction of water supply works, the 

remaining amount of construction costs of 

water supply work which is properly 

assignable for ultimate return by the 

Contractor as established by the Secretary 

of the Interior pursuant to (3) of Section 1 

of Public Law 643 (70 Stat. 483), probably 
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can be repaid to the United States within 

the term of a contract under subsection (d), 

Section 9 of the 1939 Reclamation Project 

Act (53 Stat. 1187), then this contract may 

be converted to a contract under said 

subsection (d) upon terms and conditions 

mutually agreeable to the United States and 

the Contractor. The Secretary shall make a 

determination 10 years after the date of 

execution of this Contract, and every five 

years thereafter, of whether a conversion to 

a contract under said subsection (d) can be 

accomplished pursuant to Public Law 643.

[N/A] Notwithstanding any provision 

of this contract, the Contractor reserves and 

shall have all rights and benefits under 

Public Law 643. 

WATER TO BE FURNISHED TO 

CONTRACTOR

WATER TO BE FURNISHED TO 

CONTRACTOR

3. (a) Subject to the conditions, 

limitations, and provisions hereinafter 

expressed, the Contractor is hereby entitled 

and authorized to divert from the 

Sacramento River at the locations shown in

identified on Exhibit A and shown on 

Exhibit B, for beneficial use within the area 

delineated on Exhibit B, (both Exhibits are 

attached hereto and made a part hereof), the 

3. (a) Subject to the conditions, 

limitations, and provisions hereinafter 

expressed, the Contractor is hereby entitled 

and authorized to divert from the 

Sacramento River at the locations shown in 

Exhibit A, for beneficial use within the area 

delineated on Exhibit B, (both Exhibits are 

attached hereto and made a part hereof), the 

Contract Total designated in Exhibit A, or 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

17

Contract Total designated in Exhibit A, or 

any revision thereof, in accordance with the 

monthly operating schedule required by 

Article 3(b) of this contract Settlement 

Contract. The quantity of any surface

water diverted under this Settlement 

Contract from the Sacramento River for use 

on any lands delineated on Exhibit B, by 

the owner of such lands or otherwise shall 

constitute a part of the Contract Total as 

shown on Exhibit A and shall be subject to 

all the provisions of this contract

Settlement Contract relating to such 

Contract Total as if such diversion were 

made by the Contractor. 

any revision thereof, in accordance with the 

monthly operating schedule required by 

Article 3(b) of this cContract. The quantity 

of any water diverted from the Sacramento 

River for use on any lands delineated on 

Exhibit B, by the owner of such lands or 

otherwise shall constitute a part of the 

Contract Total as shown on Exhibit A and 

shall be subject to all the provisions of this 

cContract relating to such Contract Total as 

if such diversion were made by the 

Contractor. 

[NOTE: contractor-specific language 

dealing with individual water rights 

may be needed.]

(b) The Contractor may have 

acquired rights to divert water from the 

Sacramento River during the period April 

to October, which were obtained after the 

date of execution of the Existing Contract. 

However, all diversions made from the 

Sacramento River during the period April 

to October are subject to the terms and 

conditions of this Contract, and the 

quantity of Base Supply and Project Water 

in the Existing Contract shall not be 

increased in this Contract.

(b) The United States 

recognizes the need of the Contractor to 

(b c) The United States 

recognizes the need of the Contractor to 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

18

vary from time to time its monthly 

diversions of water from the quantities 

shown in Exhibit A, or any revision 

thereof. Before April 1 of each Year the 

Contractor shall submit a written schedule 

to the Contracting Officer indicating the 

Contract Total to be diverted by the 

Contractor during each month. The United 

States shall furnish water to the Contractor 

in accordance with the monthly operating 

schedule or any revisions thereof: 

Provided, That that in no event shall the 

total quantity scheduled for diversion by 

the Contractor from the Sacramento River: 

vary from time to time its monthly 

diversions of water from the quantities 

shown in Exhibit A, or any revision 

thereof. Before April 1 of each Year the 

Contractor shall submit a written schedule 

to the Contracting Officer indicating the 

Contract Total to be diverted by the 

Contractor during each month. The United 

States shall furnish water to the Contractor 

in accordance with the monthly operating 

schedule or any revisions thereof: 

Provided, Tthat in no event shall the total 

quantity scheduled for diversion or diverted

by the Contractor from the Sacramento 

River: 

(1) During the period April 

through October exceed the aggregate of 

the Contract Total for those months shown 

in Exhibit A or any revision thereof; 

(1) During the period April 

through October exceed the aggregate of 

the Contract Total for those months shown 

in Exhibit A or any revision thereof; 

(2) During the period July 

through September exceed the aggregate of 

the Contract Total for those months shown 

in Exhibit A or any revision thereof; and 

Provided, further, That that with the prior 

written approval of the Contracting Officer, 

water to be diverted in April, May, or June 

may be diverted in September or October, 

or vice versa. The Contractor shall be 

charged a fee based upon the appropriate 

(2) During the period July 

through September exceed the aggregate of 

the Contract Total for those months shown 

in Exhibit A or any revision thereof; and 

Provided, further, Tthat with the prior 

written approval of the Contracting Officer, 

water to be diverted in April, May, or June 

may be diverted in September or October, 

or vice versa. The Contractor shall be 

charged a fee, based upon the appropriate 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

19

components of the water ratesetting policy 

for the Project for the Base Supply 

scheduled for diversion in April, May, or 

June that is diverted in September or 

October, or vice versa. 

components of the water ratesetting policy 

for the Project, for the Base Supply 

scheduled for diversion in April, May, or 

June that is diverted in September or 

October, or vice versa. 

(c) In the event conditions 

warrant, the Contracting Officer reserves 

the right to require the Contractor to 

submit, at least seventy-two (72) hours 

prior to the beginning of each weekly 

period, its estimate of daily diversion 

requirements for each such period from the 

Sacramento River: Provided, however, 

That that changes during any such period 

may be made upon the giving of seventytwo (72) hours’ notice thereof to the 

Contracting Officer. 

(c d) In the event conditions 

warrant, the Contracting Officer reserves 

the right to require the Contractor to 

submit, at least seventy-two (72) hours 

prior to the beginning of each weekly 

period, its estimate of daily diversion 

requirements for each such period from the 

Sacramento River: Provided, however, 

Tthat changes during any such period may 

be made upon the giving of seventy-two 

(72) hours’ notice thereof to the 

Contracting Officer. 

(d) No sale, transfer, exchange, 

or other disposal of any water Project 

Water or the right to the use thereof for use 

on land other than that shown on Exhibit B 

shall be made by the Contractor without: 

(d e) No sale, transfer, 

exchange, or other disposal of any water 

(such as forbearance of diversions) or the 

right to the use thereof for use on land 

other than that shown on Exhibit B shall be 

made by the Contractor without: 

(1) First obtaining the 

written consent of the 

Contracting Officer; and 

(1) First obtaining the 

written consent of the 

Contracting Officer; and 

(2) Compliance with all (2) Compliance with all 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

20

applicable State and Federal laws, 

including but not limited to the National 

Environmental Policy Act and the 

Endangered Species Act, and applicable 

guidelines or regulations then in effect. 

applicable State and Federal laws, 

including but not limited to the National 

Environmental Policy Act and the 

Endangered Species Act, and applicable 

guidelines or regulations then in effect. 

(e) The sale, transfer, exchange, 

or other disposal of any Base Supply or the 

right to the use thereof for use on land 

other than that shown on Exhibit B shall be 

made by the Contractor in compliance with 

all applicable State laws.

[N/A] 

(e f) Nothing herein contained 

shall prevent the Contractor from diverting 

water during the months of November 

through March for beneficial use on the 

land shown on Exhibit B or elsewhere to 

the extent authorized under the laws of the 

State of California. 

(e f) Nothing herein contained 

shall prevent the Contractor from diverting 

water during the months of November 

through March for beneficial use on the 

land shown on Exhibit B to the extent 

authorized under the laws of the State of 

California. 

(f g) The United States assumes 

no responsibility for and neither it nor its 

officers, agents, or employees shall have 

any liability for or on account of: 

(f g) The United States assumes 

no responsibility for and neither it nor its 

officers, agents, or employees shall have 

any liability for or on account of: 

(1) The quality of water to 

be diverted by the Contractor; 

(1) The quality of water to 

be diverted by the Contractor; 

(2) The control, carriage, 

handling, use, disposal, or distribution of 

(2) The control, carriage, 

handling, use, disposal, or distribution of 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

21

water diverted by the Contractor outside 

the facilities constructed and then being 

operated and maintained by or on behalf of 

the United States; 

water diverted by the Contractor outside 

the facilities constructed and then being 

operated and maintained by or on behalf of 

the United States; 

(3) Claims of damage of 

any nature whatsoever, including but not 

limited to, property loss or damage, 

personal injury, or death arising out of or 

connected with the control, carriage, 

handling, use, disposal, or distribution of 

said water outside of the hereinabove 

referred to facilities; and 

(3) Claims of damage of 

any nature whatsoever, including but not 

limited to, property loss or damage, 

personal injury, or death arising out of or 

connected with the control, carriage, 

handling, use, disposal, or distribution of 

said water outside of the hereinabove 

referred to facilities; and 

(4) Any damage whether 

direct or indirect arising out of or in any 

manner caused by a shortage of water 

whether such shortage be on account of 

errors in operation, drought, or unavoidable 

causes. 

(4) Any damage whether 

direct or indirect arising out of or in any 

manner caused by a shortage of water 

whether such shortage be on account of 

errors in operation, drought, or unavoidable 

causes. 

RETURN FLOW RETURN FLOW

4. The United States reserves the 

right to the use of all waste, seepage, and 

return flow water derived from water

Project Water diverted by the Contractor 

hereunder and which escapes or is 

discharged beyond the boundaries of the 

lands shown on Exhibit B. Nothing herein 

shall be construed as an abandonment or a 

4. The United States reserves the 

right to the use of all waste, seepage, and 

return flow water derived from water 

diverted by the Contractor hereunder and 

which escapes or is discharged beyond the 

boundaries of the lands shown on Exhibit 

B. Nothing herein shall be construed as an 

abandonment or a relinquishment by the 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

22

relinquishment by the United States of the 

right to the use of any such water Project 

Water; Provided, That that this shall not be 

construed as claiming for the United States 

any right to such water Project Water

which is recovered by the Contractor 

pursuant to California law from within the 

boundaries of the lands shown on Exhibit 

B, and which is being used pursuant to this 

contract Settlement Contract for surface 

irrigation or underground storage on the 

lands shown on Exhibit B by the 

Contractor, nor is it intended to apply to 

waste, seepage, and return flow water 

derived from Base Supply or other nonProject Water diverted or otherwise 

obtained by Contractor. (Colusa Basin 

Drain language may be required) 

United States of the right to the use of any 

such water; Provided, Tthat this shall not 

be construed as claiming for the United 

States any right to such water which is 

recovered by the Contractor pursuant to 

California law from within the boundaries 

of the lands shown on Exhibit B, and which 

is being used pursuant to this cContract for 

surface irrigation or underground storage 

on the lands shown on Exhibit B by the 

Contractor. (Colusa Basin Drain 

language may be required) 

CONSTRAINTS ON THE 

AVAILABILITY OF WATER

CONSTRAINTS ON THE 

AVAILABILITY OF WATER

5. (a) In any Water Year that (1) 

the forecasted full natural inflow to Shasta 

Lake for the current Water Year, as such 

forecast is made by the United States on or 

before February 15 and reviewed as 

frequently thereafter as conditions and 

information warrant, is equal to or less than 

three million eight hundred thousand 

(3,800,000) acre-feet; or (2) If the total 

5. (a) In any Water Year that (1) 

the forecasted full natural inflow to Shasta 

Lake for the current Water Year, as such 

forecast is made by the United States on or 

before February 15 and reviewed as 

frequently thereafter as conditions and 

information warrant, is equal to or less than 

three 3.8 million eight hundred thousand 

(3,800,000) acre-feet; or 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

23

accumulated actual deficiencies in the full 

natural inflow to Shasta Lake in the 

immediately prior Water Year or series of 

successive prior Water Years, each of 

which had inflows of less than four million 

(4,000,000) acre-feet, together with the 

forecasted deficiency for the current Water 

Year, are between 200,000 acre-feet and 

800,000 acre-feet, then the following 

reductions in the Contractor’s monthly 

Contract Total shall be imposed: 

(2) If the total accumulated actual 

deficiencies in the full natural inflow to 

Shasta Lake in the immediately prior Water 

Year or series of successive prior Water 

Years, each of which had inflows of less 

than four 4 million (4,000,000) acre-feet, 

together with the forecasted deficiency for 

the current Water Year, are between 

200,000 acre-feet and 800,000 acre-feet, 

then the following reductions in the 

Contractor’s monthly Contract Total shall 

be imposed: 

Deficiency (acre-feet) Reduction

200,000 – 400,000 10 percent 

400,001 – 600,000 15 percent 

600,001 – 800,000 20 percent 

Deficiency (acre-feet) Reduction

200,000 – 400,000 10 percent 

400,001 – 600,000 15 percent 

600,001 – 800,000 20 percent 

(b) In consideration for the 

reductions in the Contractor’s monthly 

Contract Total imposed pursuant to the 

provisions of Article 5(a) above, the United 

States shall pay Contractor as follows:

Reduction Per Acre-Foot Compensation

10 percent $ X 

15 percent $ Y for 

quantities from 10-15%

20 percent $ Z for 

quantities from 15-20%

 The dollar per-acre compensation 

shall be tied to or indexed to the increase of 

[N/A] 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

24

rates for Project Water or CPI [or other].

(b c) In a Critical Year, the 

Contractor’s Base Supply and Project 

Water agreed to be diverted during the 

period April through October of the Year in 

which the principal portion of the Critical 

Year occurs and, each monthly quantity of 

said period shall be reduced by twenty-five 

percent (25 percent %). 

(b) In a Critical Year, the 

Contractor’s Base Supply and Project 

Water agreed to be diverted during the 

period April through October of the Year in 

which the principal portion of the Critical 

Year occurs and, each monthly quantity of 

said period shall be reduced by twenty-five 

percent (25%). 

(c d) The amount of any 

overpayment by the Contractor shall, at its 

option, be refunded or credited upon 

amounts to become due to the United 

States from the Contractor under the 

provisions hereof in the ensuing Year. To 

the extent of such deficiency such 

adjustment of overpayment shall constitute 

the sole remedy of the Contractor. 

(c) The amount of any 

overpayment by the Contractor shall, at its 

option, be refunded or credited upon 

amounts to become due to the United 

States from the Contractor under the 

provisions hereof in the ensuing Year. To 

the extent of such deficiency such 

adjustment of overpayment shall constitute 

the sole remedy of the Contractor. 

INTEGRATED WATER 

MANAGEMENT AND PARTNERSHIPS

INTEGRATED WATER 

MANAGEMENT AND PARTNERSHIPS

 6. Contractor and United 

States desire to work together to maximize 

the reasonable beneficial use of water to 

their mutual benefit. As a consequence, the 

United States will work in partnership with 

Contractor and others within the 

Sacramento Valley, including other 

6. The Contractor and United 

States desire to work together to maximize 

the reasonable beneficial use of water to 

their mutual benefit. As a consequence, the 

United States will work in partnership with 

the Contractor and others within the 

Sacramento Valley to facilitate the better 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

25

Contractors with Settlement Contracts, to 

facilitate the better integration within the 

Sacramento Valley of all water supplies 

including, but not limited to, the better 

management and integration of surface 

water and groundwater, the development 

and better utilization of surface water 

storage, the effective utilization of waste, 

seepage and return flow water, and other 

operational and management options that 

may be identified in the future. This will 

include, but not be limited to, the 

continuation of the Sacramento River 

Settlement Contractors’ pooling 

agreements, the agreements with respect to 

use and re-use of water within the Colusa 

Basin Drain, and the Basin-Wide Water 

Management Plan process. 

integration within the Sacramento Valley 

of all water supplies including, but not 

limited to, the better management and 

integration of surface water and 

groundwater, the development and better 

utilization of surface water storage, the 

effective utilization of waste, seepage and 

return flow water, and other operational 

and management options that may be 

identified in the future. 

USE OF WATER 

FURNISHED TO CONTRACTOR

USE OF WATER 

FURNISHED TO CONTRACTOR

6 7. (a) Project Water furnished to 

the Contractor pursuant to this contract

Settlement Contract shall not be delivered 

or furnished by the Contractor for any 

purposes other than agricultural purposes 

without the written consent of the 

Contracting Officer. , including, For 

purposes of this contract, “agricultural 

purposes” includes, but is not restricted to, 

67. (a) Project Water furnished to 

the Contractor pursuant to this cContract 

shall not be delivered or furnished by the 

Contractor for any purposes other than 

agricultural purposes without the written 

consent of the Contracting Officer. , 

including, For purposes of this Contract, 

“agricultural purposes” includes, but is not 

restricted to, the watering of livestock, 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

26

the watering of livestock, incidental 

domestic use including landscape 

irrigation, or underground water 

replenishment without written consent of 

the Contracting Officer. 

incidental domestic use including related 

landscape irrigation, or underground water 

replenishment without written consent of 

the Contracting Officer. 

(b) Assuming a base-line that 

includes in excess of 40 years of diversions 

for agricultural uses of the quantities of 

water provided for in Article 3, the 

Contractor shall comply with requirements 

applicable to the Contractor in biological 

opinion(s) prepared as a result of a 

consultation regarding the execution of this 

Settlement Contract undertaken pursuant to 

Section 7 of the Endangered Species Act of 

1973, as amended, that are within the 

Contractor’s legal authority to implement. 

The Contractor shall comply with the 

limitations or requirements imposed by 

environmental documentation applicable to 

the Contractor and within its legal authority 

to implement regarding specific activities, 

including conversion of Irrigation Water to 

M&I Water. Nothing herein shall be 

construed to prevent the Contractor from 

challenging or seeking judicial relief in a 

court of competent jurisdiction with respect 

to any biological opinion or other 

environmental documentation referred to in 

this Article. 

(b) The Contractor shall 

comply with requirements applicable to the 

Contractor in biological opinion(s) 

prepared as a result of a consultation 

regarding the execution of this Contract 

undertaken pursuant to Section 7 of the 

Endangered Species Act of 1973, as 

amended, that are within the Contractor’s 

legal authority to implement. The 

Contractor shall comply with the 

limitations or requirements imposed by 

environmental documentation applicable to 

the Contractor and within its legal authority 

to implement regarding specific activities, 

including conversion of Irrigation Water to 

M&I Water. Nothing herein shall be 

construed to prevent the Contractor from 

challenging or seeking judicial relief in a 

court of competent jurisdiction with respect 

to any biological opinion or other 

environmental documentation referred to in 

this Article. 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

27

RATE AND METHOD OF PAYMENT 

FOR WATER

RATE AND METHOD OF PAYMENT 

FOR WATER

7 8. (a) The Contractor shall make 

payments to the United States as provided 

in this Article for all Project Water shown 

in Exhibit A of this contract Settlement 

Contract and which is actually diverted by 

Contractor at Rates and Charges 

established in accordance with: (i) the 

Secretary’s then-current ratesetting policies 

for the Project; and (ii) applicable 

Reclamation law and associated rules and 

regulations, or policies.: Provided, That if 

the Contractor desires to use Project Water 

for other than agricultural use the Rates and 

Charges set forth above will be adjusted by 

the Contracting Officer to the applicable 

Rates and Charges for such use. The Rates 

and Charges applicable to the Contractor 

upon execution of this Settlement Contract 

are set forth in Exhibit “D”, as may be 

revised annually. The Secretary’s 

ratesetting policies for the Project shall be 

amended, modified, or superseded only 

through a public notice and comment 

procedure. 

78. (a) The Contractor shall make 

payments to the United States as provided 

in this Article for all Project Water shown 

in Exhibit A of this cContract at Rates and 

Charges established in accordance with: (i) 

the Secretary’s then-current ratesetting 

policies for the Project; and (ii) applicable 

Reclamation law and associated rules and 

regulations, or policies: Provided, Tthat if 

the Contractor desires to use Project Water 

for other than agricultural use the Rates and 

Charges set forth above will be adjusted by 

the Contracting Officer to the applicable 

Rates and Charges for such use. The Rates 

and Charges applicable to the Contractor 

upon execution of this Contract are set 

forth in Exhibit “D”, as may be revised 

annually. The Secretary’s ratesetting 

policies for the Project shall be amended, 

modified, or superseded only through a 

public notice and comment procedure. 

(b) The Contracting Officer 

shall notify the Contractor of the Rates and 

(b) The Contracting Officer 

shall notify the Contractor of the Rates and 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

28

Charges as follows: Charges as follows: 

[(1) Prior to July 1 of each 

Year, the Contracting Officer shall provide 

the Contractor an estimate of the Charges 

for Project Water that will be applied to the 

period October 1, of the current Year, 

through September 30, of the following 

Year, and the basis for such estimate. The 

Contractor shall be allowed not less than 

two (2) months to review and comment on 

such estimates. On or before September 15 

of each Year, the Contracting Officer shall 

notify the Contractor in writing of the 

Charges to be in effect during the period 

October 1 of the current Year, through 

September 30, of the following Year, and 

such notification shall revise Exhibit “D.”1

]

(1) Prior to July 1 of each 

Year, the Contracting Officer shall provide 

the Contractor an estimate of the Charges 

for Project Water that will be applied to the 

period October 1, of the current Year, 

through September 30, of the following 

Year, and the basis for such estimate. The 

Contractor shall be allowed not less than 

two (2) months to review and comment on 

such estimates. On or before September 15 

of each Year, the Contracting Officer shall 

notify the Contractor in writing of the 

Charges to be in effect during the period 

October 1 of the current Year, through 

September 30, of the following Year, and 

such notification shall revise Exhibit “D.” 

(2) Prior to October 1 of 

each Year, the Contracting Officer shall 

make available to the Contractor an 

estimate of the Rates for Project Water for 

the following Year and the computations 

and cost allocations upon which those 

Rates are based. The Contractor shall be 

allowed not less than two (2) months to 

review and comment on such computations 

and cost allocations. By December 31 of 

(2) Prior to October 1 of 

each Year, the Contracting Officer shall 

make available to the Contractor an 

estimate of the Rates for Project Water for 

the following Year and the computations 

and cost allocations upon which those 

Rates are based. The Contractor shall be 

allowed not less than two (2) months to 

review and comment on such computations 

and cost allocations. By December 31 of 

 

1

 We need a more specific idea and limit on what charges can be for. We need to define categories 

of acceptable Charges.
SRSC Document, 5/31/02 USBR Document, 6/21/02 

29

each Year, the Contracting Officer shall 

provide the Contractor with the final Rates 

to be in effect for the upcoming Year, and 

such notification shall revise Exhibit “D”. 

each Year, the Contracting Officer shall 

provide the Contractor with the final Rates 

to be in effect for the upcoming Year, and 

such notification shall revise Exhibit “D”. 

(c) The Contractor shall pay the 

United States for Project Water in the 

following manner: 

(c) The Contractor shall pay the 

United States for Project Water in the 

following manner: 

(1) With respect to Rates, 

prior to May 1 of each Year, the Contractor 

shall pay the United States one-half (1/2)

the total amount payable pursuant to 

subdivision (a) of this Article and the 

remainder shall be paid prior to July 1 or 

such later date or dates as may be specified 

by the United States in a written notice to 

the Contractor: Provided, however, That

that if at any time during the Year the 

amount of Project Water diverted by the 

Contractor shall equal the amount for 

which payment has been made, the 

Contractor shall pay for the remaining 

amount of such water as shown in Exhibit 

A in advance of any further diversion of 

Project Water. 

(1) With respect to Rates, 

prior to May 1 of each Year, the Contractor 

shall pay the United States one-half (1/2)

the total amount payable pursuant to 

subdivision (a) of this Article and the 

remainder shall be paid prior to July 1 or 

such later date or dates as may be specified 

by the United States in a written notice to 

the Contractor: Provided, however, Tthat if 

at any time during the Year the amount of 

Project Water diverted by the Contractor 

shall equal the amount for which payment 

has been made, the Contractor shall pay for 

the remaining amount of such water as 

shown in Exhibit A in advance of any 

further diversion of Project Water. 

(2) With respect to 

Charges, the Contractor shall also make a 

payment to the United States, in addition to 

the Rate(s) in subdivision (c)(1) of this 

(2) With respect to 

Charges, the Contractor shall also make a 

payment to the United States, in addition to 

the Rate(s) in subdivision (c)(1) of this 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

30

Article, at the Charges then in effect, 

before the end of the month following the 

month of delivery or transfer. The 

payments shall be consistent with the 

quantities of Project Water delivered or 

transferred. Adjustment for overpayment 

or underpayment of Charges shall be made 

through the adjustment of payments due to 

the United States for Charges for the next 

month. Any amount to be paid for past due 

payment of Charges shall be computed 

pursuant to Article 12 of this contract

Settlement Contract. 

Article, at the Charges then in effect, 

before the end of the month following the 

month of delivery or transfer. The 

payments shall be consistent with the 

quantities of Project Water delivered or 

transferred. Adjustment for overpayment 

or underpayment of Charges shall be made 

through the adjustment of payments due to 

the United States for Charges for the next 

month. Any amount to be paid for past due 

payment of Charges shall be computed 

pursuant to Article 12 13 of this Contract. 

(d) Payments to be made by the 

Contractor to the United States under this 

contract Settlement Contract may be paid 

from any revenues available to the 

Contractor. 

(d) Payments to be made by the 

Contractor to the United States under this 

Contract may be paid from any revenues 

available to the Contractor. 

(d1) (Contractor Specific)All 

revenues received by the United States 

from the Contractor relating to the delivery 

of Project Water or the delivery of nonProject water through Project facilities 

shall be allocated and applied in 

accordance with Federal Reclamation law 

and the associated rules or regulations, and 

the then current Project ratesetting policies 

for Irrigation Water.

(d1) (Contractor Specific)All 

revenues received by the United States 

from the Contractor relating to the delivery 

of Project Water or the delivery of nonProject water through Project facilities 

shall be allocated and applied in 

accordance with Federal Reclamation law 

and the associated rules or regulations, and 

the then current Project ratesetting policies 

for Irrigation Water. 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

31

(e) In order to allow Contractor 

to monitor the development of Rates and 

Charges, the Contracting Officer shall keep 

its accounts pertaining to the administration 

of the financial terms and conditions of its 

long-term water service and Settlement 

Contracts, in accordance with applicable 

Federal standards, so as to reflect the 

application of Project costs and revenues. 

The Contracting Officer shall, each Year 

upon request of the Contractor, provide to 

the Contractor a detailed accounting of all 

Project and Contractor expense allocations, 

the disposition of all Project and Contractor 

revenues, and a summary of all water 

delivery information. The Contracting 

Officer and the Contractor shall enter into 

good faith negotiations to resolve any 

discrepancies or disputes relating to 

accountings, reports, or information. 

(e) The Contracting Officer 

shall keep its accounts pertaining to the 

administration of the financial terms and 

conditions of its long-term water service 

and settlement contracts, in accordance 

with applicable Federal standards, so as to 

reflect the application of Project costs and 

revenues. The Contracting Officer shall, 

each Year upon request of the Contractor, 

provide to the Contractor a detailed 

accounting of all Project and Contractor 

expense allocations, the disposition of all 

Project and Contractor revenues, and a 

summary of all water delivery information. 

The Contracting Officer and the Contractor 

shall enter into good faith negotiations to 

resolve any discrepancies or disputes 

relating to accountings, reports, or 

information. 

(f) The parties acknowledge 

and agree that the efficient administration 

of this Settlement Contract is their mutual 

goal. Recognizing that experience has 

demonstrated that mechanisms, policies, 

and procedures used for establishing Rates 

and Charges and/or for making and 

allocating payments, other than those set 

forth in this Article may be in the mutual 

best interest of the parties, it is expressly 

(f) The parties acknowledge 

and agree that the efficient administration 

of this Contract is their mutual goal. 

Recognizing that experience has 

demonstrated that mechanisms, policies, 

and procedures used for establishing Rates 

and Charges and/or for making and 

allocating payments, other than those set 

forth in this Article may be in the mutual 

best interest of the parties, it is expressly 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

32

agreed that the parties may enter into 

agreements to modify the mechanisms, 

policies, and procedures for any of those 

purposes while this Settlement Contract is 

in effect without amendment of this 

Settlement Contract. 

agreed that the parties may enter into 

agreements to modify the mechanisms, 

policies, and procedures for any of those 

purposes while this Contract is in effect 

without amendment of this Contract. 

(g) For the term of this contract

Settlement Contract, Rates under the 

respective ratesetting policies for the 

Project will be established to recover only 

reimbursable operation and maintenance 

(including any deficits) and capital costs of 

the Project, as those terms are used in the 

then-current Project ratesetting policies, 

and interest, where appropriate, except in 

instances where a minimum Rate is 

applicable in accordance with the relevant 

Project ratesetting policy. Proposed 

changes of significance in practices which 

implement the ratesetting policies for the 

Project will not be implemented until the 

Contracting Officer has provided the 

Contractor an opportunity to discuss the 

nature, need, and impact of the proposed 

change. 

(g) For the term of this 

cContract, Rates under the respective 

ratesetting policies for the Project will be 

established to recover only reimbursable 

operation and maintenance (including any 

deficits) and capital costs of the Project, as 

those terms are used in the then-current 

Project ratesetting policies, and interest, 

where appropriate, except in instances 

where a minimum Rate is applicable in 

accordance with the relevant Project 

ratesetting policy. Proposed changes of 

significance in practices which implement 

the ratesetting policies for the Project will 

not be implemented until the Contracting 

Officer has provided the Contractor an 

opportunity to discuss the nature, need, and 

impact of the proposed change. 

(h) Except as provided in 

subsections [3405(a)(1)(B) and 3405(f)] of 

the CVPIA, the Rates for Project Water 

transferred, exchanged, or otherwise 

(h) Except as provided in 

subsections 3405(a)(1)(B) and 3405(f)

3407(d)(2)(a) of the CVPIA, the Rates for 

Project Water transferred, exchanged, or 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

33

disposed of, by the Contractor shall be the 

Contractor’s Rates adjusted upward or 

downward to reflect the changed costs of 

delivery (if any) of the transferred, 

exchanged, or otherwise disposed of 

Project Water to the transferee’s point of 

delivery in accordance with the thencurrent ratesetting policies for the Project. 

If the Contractor is receiving lower Rates 

and Charges because of inability to pay and 

is transferring, exchanging, or otherwise 

disposing of Project Water to another entity 

whose Rates and Charges are not adjusted 

due to inability to pay, the Rates and 

Charges for transferred, exchanged, or 

otherwise disposed of Project Water shall 

be the Contractor’s Rates and Charges 

unadjusted for ability to pay. 

otherwise disposed of, by the Contractor 

shall be the Contractor’s Rates adjusted 

upward or downward to reflect the changed 

costs of delivery (if any) of the transferred, 

exchanged, or otherwise disposed of 

Project Water to the transferee’s point of 

delivery in accordance with the thencurrent ratesetting policies for the Project. 

If the Contractor is receiving lower Rates 

and Charges because of inability to pay and 

is transferring, exchanging, or otherwise 

disposing of Project Water to another entity 

whose Rates and Charges are not adjusted 

due to inability to pay, the Rates and 

Charges for transferred, exchanged, or 

otherwise disposed of Project Water shall 

be the Contractor’s Rates and Charges 

unadjusted for ability to pay. 

(i) Pursuant to the Act of 

October 27, 1986 (100 Stat. 3050), the 

Contracting Officer is authorized to adjust 

determinations of ability to pay every five 

(5) years. 

(i) Pursuant to the Act of 

October 27, 1986 (100 Stat. 3050), the 

Contracting Officer is authorized to adjust 

determinations of ability to pay every five 

(5) years. 

(j) Each payment to be made 

pursuant to subdivisions (a) and (b) of this 

Article shall be made at the office of the 

Bureau of Reclamation, Mid-Pacific 

Region, File No. 11546, P.O Box 6000, 

San Francisco, California, 94160-1546, or 

(j) Each payment to be made 

pursuant to subdivisions (a) and (b) of this 

Article shall be made at the office of the 

Bureau of Reclamation, Mid-Pacific 

Region, File No. 11546, P.O Box 6000, 

San Francisco, California, 94160-1546, or 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

34

at such other place as the United States 

may designate in a written notice to the 

said Contractor. Payments shall be made 

by cash transaction, wire, or any other 

mechanism as may be agreed to in writing 

by the Contractor and the Contracting 

Officer. In event there should be a default 

in the payment of the amount due, the 

delinquent payment provisions of Article 

12 shall apply. The Contractor shall not be 

relieved of the whole or any part of its said 

obligation by, on account of, or 

notwithstanding, as the case may be: 

at such other place as the United States 

may designate in a written notice to the 

said Contractor. Payments shall be made 

by cash transaction, wire, or any other 

mechanism as may be agreed to in writing 

by the Contractor and the Contracting 

Officer. In event there should be a default 

in the payment of the amount due, the 

delinquent payment provisions of Article 

12 13 shall apply. The Contractor shall not 

be relieved of the whole or any part of its 

said obligation by, on account of, or 

notwithstanding, as the case may be: 

(1) Its failure, refusal, or 

neglect to divert the quantity of Project 

Water as hereinabove provided; 

(1) Its failure, refusal, or 

neglect to divert the quantity of Project 

Water as hereinabove provided; 

(2) The default in payment 

to it by any water user of assessments, 

tolls, or other charges levied by or owing to 

said Contractor; 

(2) The default in payment 

to it by any water user of assessments, 

tolls, or other charges levied by or owing to 

said Contractor; 

(3) Any judicial 

determination that any assessment, toll, or 

other charge referred to in subsection 

8(c)(2) of this Settlement Contract is 

irregular, void, or ineffectual; or 

(3) Any judicial 

determination that any assessment, toll, or 

other charge referred to in subsection 

8(c)(2) of this Contract is irregular, void, or 

ineffectual; or 

(4) Any injunctive process 

enjoining or restraining the Contractor 

(4) Any injunctive process 

enjoining or restraining the Contractor 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

35

from making or collecting any such 

assessment, toll, or other charge referred to 

in subsection 8(c)(2) of this Settlement

Contract.

from making or collecting any such 

assessment, toll, or other charge referred to 

in subsection 8(c)(2) of this Contract.

AGREEMENT ON WATER 

QUANTITIES

AGREEMENT ON WATER 

QUANTITIES

8 9. (a) During the term of this 

contract Settlement Contract and 

any renewals thereof: 

89. (a) During the term of this 

cContract and any renewals thereof: 

(1) It shall constitute full 

agreement as between the United States 

and the Contractor as to the quantities of 

water and the allocation thereof between 

Base Supply and Project Water which may 

be diverted by the Contractor from the 

Sacramento River for beneficial use on the 

land shown on Exhibit B which said 

diversion, use, and allocation shall not be 

disturbed so long as the Contractor shall 

fulfill all of its obligations hereunder; 

(1) It shall constitute full 

agreement as between the United States 

and the Contractor as to the quantities of 

water and the allocation thereof between 

Base Supply and Project Water which may 

be diverted by the Contractor from the 

Sacramento River for beneficial use on the 

land shown on Exhibit B which said 

diversion, use, and allocation shall not be 

disturbed so long as the Contractor shall 

fulfill all of its obligations hereunder; 

(2) The Contractor shall not 

claim any right against the United States in 

conflict with the provisions hereof, nor 

shall the United States claim any right 

against the Contractor in conflict with the 

provisions hereof. 

(2) Neither party shall not

claim any right against the United States

other party in conflict with the provisions 

hereof of this Article 9(a).
SRSC Document, 5/31/02 USBR Document, 6/21/02 

36

(b) Nothing herein contained is 

intended to or does limit rights of the 

Contractor against others than the United 

States or of the United States against any 

person other than the Contractor: 

Provided, however, That that in the event 

the Contractor, the United States, or any 

other person shall become a party to a 

general adjudication of rights to the use of 

water of the Sacramento River system, this 

contract Settlement Contract shall not 

jeopardize the rights or position of either 

party hereto or of any other person and the 

rights of all such persons in respect to the 

use of such water shall be determined in 

such proceedings the same as if this 

contract Settlement Contract had not been 

entered into, and if final judgment in any 

such general adjudication shall determine 

that the rights of the parties hereto are 

different from the rights as assumed herein, 

the United States shall submit it to the 

Contractor parties shall negotiate an 

amendment to give effect to such 

judgment. In the event the parties are 

unable to agree on an appropriate 

amendment they shall, within 60 days of 

determining that there is an impasse, 

employ the services of a neutral mediator 

to assist in resolving the impasse. The cost 

of the mediation will be shared equally. A 

(b) Nothing herein contained is 

intended to or does limit rights of the 

Contractor against others than the United 

States or of the United States against any 

person other than the Contractor: 

Provided, however, Tthat in the event the 

Contractor, the United States, or any other 

person shall become a party to a general 

adjudication of rights to the use of water of 

the Sacramento River system, this 

cContract shall not jeopardize the rights or 

position of either party hereto or of any 

other person and the rights of all such 

persons in respect to the use of such water 

shall be determined in such proceedings the 

same as if this cContract had not been 

entered into, and if final judgment in any 

such general adjudication shall determine 

that the rights of the parties hereto are 

different from the rights as assumed herein, 

the United States shall submit it to the 

Contractor an amendment to give effect to 

such judgment and the cContract shall be 

deemed to have been amended accordingly 

unless within sixty (60) days after 

submission of such amendment to the 

Contractor, the Contractor elects to 

terminate the cContract or within the same 

period of time the parties agree upon 

mutually satisfactory amendments to give 

effect to such judgment: Provided, further, 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

37

failure to reach agreement on an 

amendment within 60 days of the end of 

mediation will cause the immediate 

termination of this Settlement Contract. 

and the contract shall be deemed to have 

been amended accordingly unless within 

sixty (60) days after submission of such 

amendment to the Contractor, the 

Contractor elects to terminate the contract 

or within the same period of time the 

parties agree upon mutually satisfactory 

amendments to give effect to such 

judgment: Provided, further, That if, 

during the term of this Contract, the 

Contractor’s or the United States’ water 

rights are adjusted or affected, or the 

responsibility to meet flow, water quality 

and/or environmental requirements under 

those water rights is modified (e.g., 

changes to the Delta Water Quality Control 

Plan and associated water right actions), by 

or through any final administrative or 

judicial proceeding, the Contractor and the 

United States shall negotiate appropriate 

adjustments to this contract. 

Tthat if, during the term of this Contract, 

the Contractor’s or the United States’ water 

rights are adjusted or affected, or the 

responsibility to meet flow, water quality 

and/or environmental requirements under 

those water rights is modified (e.g., 

changes to the Delta Water Quality Control 

Plan and associated water right actions), by 

or through any final administrative or 

judicial proceeding, the Contractor and the 

United States shall negotiate appropriate 

adjustments to this cContract. 

(c) In the event this contract

Settlement Contract terminates, the rights 

of the parties to thereafter divert and use 

water shall exist as if this contract

Settlement Contract had not been entered 

(c) In the event this cContract 

terminates, the rights of the parties to 

thereafter divert and use water shall exist as 

if this cContract had not been entered into; 

and the fact that as a compromise 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

38

into; and the fact that as a compromise 

settlement of a controversy as to the 

respective rights of the parties to divert and 

use water and the yield of such rights 

during the term hereof, this contract

Settlement Contract places a limit on the 

Contract Total to be diverted annually by 

the Contractor during the contract

Settlement Contract term and segregates it 

into Base Supply and Project Water shall 

not jeopardize the rights or position of 

either party with respect to its water rights 

or the yield thereof at all times after the 

contract Settlement Contract terminates. It 

is further agreed that the Contractor at all 

times will first use water to the use of 

which it is entitled by virtue of its own 

water rights, and neither the provisions of 

this contract Settlement Contract, action 

taken thereunder, nor payments made 

thereunder to the United States by the 

Contractor shall be construed as an 

admission that any part of the water used 

by the Contractor during the term of this 

contract Settlement Contract was in fact 

water to which it would not have been 

entitled under water rights owned by it nor 

shall receipt of payments thereunder by the 

United States from the Contractor be 

construed as an admission that any part of 

the water used by the Contractor during the 

settlement of a controversy as to the 

respective rights of the parties to divert and 

use water and the yield of such rights 

during the term hereof, this cContract 

places a limit on the Contract Total to be 

diverted annually by the Contractor during 

the cContract term and segregates it into 

Base Supply and Project Water shall not 

jeopardize the rights or position of either 

party with respect to its water rights or the 

yield thereof at all times after the cContract 

terminates. It is further agreed that the 

Contractor at all times will first use water 

to the use of which it is entitled by virtue of 

its own water rights, and neither the 

provisions of this cContract, action taken 

thereunder, nor payments made thereunder 

to the United States by the Contractor shall 

be construed as an admission that any part 

of the water used by the Contractor during 

the term of this cContract was in fact water 

to which it would not have been entitled 

under water rights owned by it nor shall 

receipt of payments thereunder by the 

United States from the Contractor be 

construed as an admission that any part of 

the water used by the Contractor during the 

term of this cContract was in fact water to 

which it would have been entitled under 

water rights owned by it. 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

39

term of this contract Settlement Contract

was in fact water to which it would have 

been entitled under water rights owned by 

it. 

MEASUREMENT OF WATER MEASUREMENT OF WATER

9 10. (a) All water diverted by the 

Contractor from Sacramento River will be 

diverted at the existing point or points of 

diversion shown on Exhibit A or at such 

other points as may be mutually agreed 

upon in writing by the Contracting Officer 

and the Contractor. 

910. (a) All water diverted by the 

Contractor from Sacramento River will be 

diverted at the existing point or points of 

diversion shown on Exhibit A or at such 

other points as may be mutually agreed 

upon in writing by the Contracting Officer 

and the Contractor. 

(b) All water diverted from the 

Sacramento River pursuant to this contract

Settlement Contract will be measured or 

caused to be measured by the United States 

at each point of diversion with existing 

equipment or equipment to be installed, 

operated, and maintained by the United 

States, and/or others, under contract with 

and at the option of the United States. The 

equipment and methods used to make such 

measurement shall be in accordance with 

sound engineering practices. Upon request 

of the Contractor, the accuracy of such 

measurements will be investigated by the 

Contracting Officer and any errors 

appearing therein will be corrected. 

(b) All water diverted from the 

Sacramento River pursuant to this 

cContract will be measured or caused to be 

measured by the United States at each point 

of diversion with existing equipment or 

equipment to be installed, operated, and 

maintained by the United States, and/or 

others, under contract with and at the 

option of the United States. The equipment 

and methods used to make such 

measurement shall be in accordance with 

sound engineering practices. Upon request 

of the Contractor, the accuracy of such 

measurements will be investigated by the 

Contracting Officer and any errors 

appearing therein will be corrected. 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

40

 

(c) The right of ingress to and 

egress from all points of diversion is 

hereby granted to all authorized employees 

of the United States. The Contractor also 

hereby grants to the United States the right 

to install, operate, maintain and replace 

such equipment on diversion or carriage 

facilities at each point of diversion as the 

Contracting Officer deems necessary. 

(c) The right of ingress to and 

egress from all points of diversion is 

hereby granted to all authorized employees 

of the United States. The Contractor also 

hereby grants to the United States the right 

to install, operate, maintain and replace 

such equipment on diversion or carriage 

facilities at each point of diversion as the 

Contracting Officer deems necessary. 

(d) The Contractor shall not 

modify, alter, remove, or replace diversion 

facilities or do any other act which would 

alter the effectiveness or accuracy of the 

measuring equipment installed by the 

United States or its representatives unless 

and until the Contracting Officer has been 

notified with due diligence and has been 

given an opportunity to modify such 

measuring equipment in such manner as 

may be necessary or appropriate. In the 

event of an emergency the Contractor shall 

notify the United States within a reasonable 

time thereafter as to the existence of the 

emergency and the nature and extent of 

such modification, alteration, removal, or 

replacement of diversion facilities. 

(d) The Contractor shall not 

modify, alter, remove, or replace diversion 

facilities or do any other act which would 

alter the effectiveness or accuracy of the 

measuring equipment installed by the 

United States or its representatives unless 

and until the Contracting Officer has been 

notified with due diligence and has been 

given an opportunity to modify such 

measuring equipment in such manner as 

may be necessary or appropriate. In the 

event of an emergency the Contractor shall 

notify the United States within a reasonable 

time thereafter as to the existence of the 

emergency and the nature and extent of 

such modification, alteration, removal, or 

replacement of diversion facilities. 

(e) Unless the Contractor has 

itself already incurred the relevant 

(e) The Contractor shall pay the 

United States for the costs to repair, 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

41

expenses, the Contractor shall pay the 

United States for the costs to repair, 

relocate, or replace measurement 

equipment when the Contractor modifies, 

alters, removes, or replaces diversion or 

carriage facilities. 

relocate, or replace measurement 

equipment when the Contractor modifies, 

alters, removes, or replaces diversion or 

carriage facilities. 

(f) (Contractor Specific) By 

__________________[DATE] ________, 

the Contractor shall ensure that, unless the 

Contractor establishes an alternative 

measurement program satisfactory to the 

Contracting Officer, all surface water 

delivered for irrigation purposes on the 

lands delineated on Exhibit B is measured 

at each agricultural turnout. The water 

measuring devices or water measuring 

methods of comparable effectiveness must 

be acceptable to the Contracting Officer. 

The Contractor shall be responsible for 

installing, operating, and maintaining and 

repairing all such measuring devices and 

implementing all such water measuring 

methods at no cost to the United States. 

The Contractor shall inform the 

Contracting Officer in writing by April 30 

of each Year of the monthly volume of 

surface water delivered to the lands 

delineated on Exhibit B during the previous 

Year. This information will be used by 

Reclamation to satisfy the water 

(f) (Contractor Specific) By 

__________________[DATE] ________, 

the Contractor shall ensure that, unless the 

Contractor establishes an alternative 

measurement program satisfactory to the 

Contracting Officer, all surface water 

delivered for irrigation purposes on the 

lands delineated on Exhibit B is measured 

at each agricultural turnout. The water 

measuring devices or water measuring 

methods of comparable effectiveness must 

be acceptable to the Contracting Officer. 

The Contractor shall be responsible for 

installing, operating, and maintaining and 

repairing all such measuring devices and 

implementing all such water measuring 

methods at no cost to the United States. 

The Contractor shall inform the 

Contracting Officer in writing by April 30 

of each Year of the monthly volume of 

surface water delivered to the lands 

delineated on Exhibit B during the previous 

Year. This information will be used by 

Reclamation to satisfy the water 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

42

measurement requirements of the 

Contractor’s water conservation plan, as set 

forth in Article 28 of this Contract.

measurement requirements of the 

Contractor’s water conservation plan, as set 

forth in Article 28 29 of this Contract. 

(g) All new surface water 

delivery systems installed within the lands 

delineated on Exhibit B after the effective 

date of this Contract shall also comply with 

the measurement provisions described in 

this Article.

(g) All new surface water 

delivery systems installed within the lands 

delineated on Exhibit B after the effective 

date of this Contract shall also comply with 

the measurement provisions described in 

this Article. 

RULES AND REGULATIONS RULES AND REGULATIONS

10 11. The parties agree that the 

delivery of Project Water for irrigation use 

or use of Federal facilities pursuant to this 

Settlement Contract is subject to Federal 

Reclamation law, including but not limited 

to, the Reclamation Reform Act of 1982 

(43 U.S.C.390aa et seq.), as amended and 

supplemented, and the rules and 

regulations promulgated by the Secretary 

of the Interior under Federal Reclamation 

law. 

1011. The parties agree that the 

delivery of Project Water for irrigation use 

or use of Federal facilities pursuant to this 

Contract is subject to Federal Reclamation 

law, including but not limited to, the 

Reclamation Reform Act of 1982 (43 

U.S.C.390aa et seq.), as amended and 

supplemented, and the rules and 

regulations promulgated by the Secretary 

of the Interior under Federal Reclamation 

law. 

GENERAL OBLIGATION--BENEFITS 

CONDITIONED UPON PAYMENT

GENERAL OBLIGATION--BENEFITS 

CONDITIONED UPON PAYMENT

11 12. (a) The obligation of the 

Contractor to pay the United States as 

provided in this Settlement Contract is a 

general obligation of the Contractor 

notwithstanding the manner in which the 

1112. (a) The obligation of the 

Contractor to pay the United States as 

provided in this Contract is a general 

obligation of the Contractor 

notwithstanding the manner in which the 
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43

obligation may be distributed among the 

Contractor's water users and 

notwithstanding the default of individual 

water users in their obligations to the 

Contractor. 

obligation may be distributed among the 

Contractor's water users and 

notwithstanding the default of individual 

water users in their obligations to the 

Contractor. 

(b) The payment of Charges 

becoming due hereunder is a condition 

precedent to receiving benefits under this 

Settlement Contract. The United States 

shall not make water available to the 

Contractor through Project facilities during 

any period in which the Contractor may be 

in arrears in the advance payment of water 

Rates due the United States. The 

Contractor shall not furnish water made 

available pursuant to this Settlement

Contract for lands or parties which are in 

arrears in the advance payment of water 

rates levied or established by the 

Contractor. 

(b) The payment of charges 

becoming due hereunder is a condition 

precedent to receiving benefits under this 

Contract. The United States shall not make 

water available to the Contractor through 

Project facilities during any period in 

which the Contractor may be in arrears in 

the advance payment of water rates due the 

United States. The Contractor shall not 

furnish water made available pursuant to 

this Contract for lands or parties which are 

in arrears in the advance payment of water 

rates levied or established by the 

Contractor. 

(c) With respect to subdivision 

(b) of this Article, the Contractor shall have 

no obligation to require advance payment 

for water Rates which it levies. 

(c) With respect to subdivision 

(b) of this Article, the Contractor shall have 

no obligation to require advance payment 

for water rates which it levies. 

CHARGES FOR DELINQUENT 

PAYMENTS

CHARGES FOR DELINQUENT 

PAYMENTS

12 13. (a) The Contractor shall be 

subject to interest, administrative and 

penalty charges on delinquent installments 

or payments. When a payment is not 

received by the due date, the Contractor 

shall pay an interest charge for each day the 

payment is delinquent beyond the due date. 

When a payment becomes sixty (60) days 

delinquent, the Contractor shall pay an 

administrative charge to cover additional 

costs of billing and processing the 

delinquent payment. When a payment is 

delinquent ninety (90) days or more, the 

Contractor shall pay an additional penalty 

charge of six (6%) percent per year for 

each day the payment is delinquent beyond 

1213. (a) The Contractor shall be 

subject to interest, administrative and 

penalty charges on delinquent installments 

or payments. When a payment is not 

received by the due date, the Contractor 

shall pay an interest charge for each day the 

payment is delinquent beyond the due date. 

When a payment becomes sixty (60) days 

delinquent, the Contractor shall pay an 

administrative charge to cover additional 

costs of billing and processing the 

delinquent payment. When a payment is 

delinquent ninety (90) days or more, the 

Contractor shall pay an additional penalty 

charge of six (6%) percent per year for 

each day the payment is delinquent beyond 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

44

the due date. Further, the Contractor shall 

pay any fees incurred for debt collection 

services associated with a delinquent 

payment. 

the due date. Further, the Contractor shall 

pay any fees incurred for debt collection 

services associated with a delinquent 

payment. 

(b) The interest charge rate 

shall be the greater of the rate prescribed 

quarterly in the Federal Register by the 

Department of the Treasury for application 

to overdue payments, or the interest rate of 

one-half of one (0.5%) percent per month 

prescribed by Section 6 of the Reclamation 

Project Act of 1939 (Public Law 76-260). 

The interest charge rate shall be determined 

as of the due date and remain fixed for the 

duration of the delinquent period. 

(b) The interest charge rate 

shall be the greater of the rate prescribed 

quarterly in the Federal Register by the 

Department of the Treasury for application 

to overdue payments, or the interest rate of 

one-half of one (0.5%) percent per month 

prescribed by Section 6 of the Reclamation 

Project Act of 1939 (Public Law 76-260). 

The interest charge rate shall be determined 

as of the due date and remain fixed for the 

duration of the delinquent period. 

(c) When a partial payment on 

a delinquent account is received, the 

amount received shall be applied, first to 

the penalty, second to the administrative 

charges, third to the accrued interest, and 

finally to the overdue payment. 

(c) When a partial payment on 

a delinquent account is received, the 

amount received shall be applied, first to 

the penalty, second to the administrative 

charges, third to the accrued interest, and 

finally to the overdue payment. 

QUALITY OF WATER QUALITY OF WATER

13 14. The operation and 

maintenance of Project facilities shall be 

performed in such manner as is practicable 

to maintain the quality of raw water made 

available through such facilities at the 

highest level reasonably attainable as 

determined by the Contracting Officer. 

The United States does not warrant the 

quality of water and is under no obligation 

to construct or furnish water treatment 

facilities to maintain or better the quality of 

water. 

1314. The operation and 

maintenance of Project facilities shall be 

performed in such manner as is practicable 

to maintain the quality of raw water made 

available through such facilities at the 

highest level reasonably attainable as 

determined by the Contracting Officer. 

The United States does not warrant the 

quality of water and is under no obligation 

to construct or furnish water treatment 

facilities to maintain or better the quality of 

water. 
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45

WATER AND AIR POLLUTION 

CONTROL

WATER AND AIR POLLUTION 

CONTROL

14 15. The Contractor, in carrying 

out this Settlement Contract, shall comply 

with all applicable water and air pollution 

laws and regulations of the United States 

and the State of California, and shall obtain 

all required permits or licenses from the 

appropriate Federal, State, or local 

authorities. 

1415. The Contractor, in carrying 

out this Contract, shall comply with all 

applicable water and air pollution laws and 

regulations of the United States and the 

State of California, and shall obtain all 

required permits or licenses from the 

appropriate Federal, State, or local 

authorities. 

EQUAL OPPORTUNITY EQUAL OPPORTUNITY

15 16. During the performance of 

this Settlement Contract, the Contractor 

agrees as follows: 

1516. During the performance of 

this Contract, the Contractor agrees as 

follows: 

(a) The Contractor will not 

discriminate against any employee or 

applicant for employment because of race, 

color, religion, sex, or national origin. The 

Contractor will take affirmative action to 

ensure that applicants are employed, and 

that employees are treated during 

employment, without regard to their race, 

color, religion, sex, or national origin. 

Such action shall include, but not be 

limited to, the following: Employment, 

upgrading, demotion, or transfer; 

recruitment or recruitment advertising; 

layoff or termination, rates of payment or 

other forms of compensation; and selection 

for training, including apprenticeship. The 

Contractor agrees to post in conspicuous 

places, available to employees and 

applicants for employment, notices to be 

provided by the Contracting Officer setting 

forth the provisions of this 

(a) The Contractor will not 

discriminate against any employee or 

applicant for employment because of race, 

color, religion, sex, or national origin. The 

Contractor will take affirmative action to 

ensure that applicants are employed, and 

that employees are treated during 

employment, without regard to their race, 

color, religion, sex, or national origin. 

Such action shall include, but not be 

limited to, the following: Employment, 

upgrading, demotion, or transfer; 

recruitment or recruitment advertising; 

layoff or termination, rates of payment or 

other forms of compensation; and selection 

for training, including apprenticeship. The 

Contractor agrees to post in conspicuous 

places, available to employees and 

applicants for employment, notices to be 

provided by the Contracting Officer setting 

forth the provisions of this 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

46

nondiscrimination clause. nondiscrimination clause. 

(b) The Contractor will, in all 

solicitations or advertisements for 

employees placed by or on behalf of the 

Contractor, state that all qualified 

applicants will receive consideration for 

employment without discrimination 

because of race, color, religion, sex, or 

national origin. 

(b) The Contractor will, in all 

solicitations or advertisements for 

employees placed by or on behalf of the 

Contractor, state that all qualified 

applicants will receive consideration for 

employment without discrimination 

because of race, color, religion, sex, or 

national origin. 

(c) The Contractor will send to 

each labor union or representative of 

workers with which it has a collective 

bargaining agreement or other contract or 

understanding, a notice, to be provided by 

the Contracting Officer, advising the said 

labor union or workers' representative of 

the Contractor's commitments under 

Section 202 of Executive Order 11246 of 

September 24, 1965, and shall post copies 

of the notice in conspicuous places 

available to employees and applicants for 

employment. 

(c) The Contractor will send to 

each labor union or representative of 

workers with which it has a collective 

bargaining agreement or other contract or 

understanding, a notice, to be provided by 

the Contracting Officer, advising the said 

labor union or workers' representative of 

the Contractor's commitments under 

Section 202 of Executive Order 11246 of 

September 24, 1965, and shall post copies 

of the notice in conspicuous places 

available to employees and applicants for 

employment. 

(d) The Contractor will comply 

with all provisions of Executive Order No. 

11246 of September 24, 1965, as amended, 

and of the rules, regulations, and relevant 

orders of the Secretary of Labor. 

(d) The Contractor will comply 

with all provisions of Executive Order No. 

11246 of September 24, 1965, as amended, 

and of the rules, regulations, and relevant 

orders of the Secretary of Labor. 

(e) The Contractor will furnish 

all information and reports required by said 

amended Executive Order and by the rules, 

regulations, and orders of the Secretary of 

Labor, or pursuant thereto, and will permit 

access to its books, records, and accounts 

by the Contracting Officer and the 

Secretary of Labor for purposes of 

investigation to ascertain compliance with 

such rules, regulations, and orders. 

(e) The Contractor will furnish 

all information and reports required by said 

amended Executive Order and by the rules, 

regulations, and orders of the Secretary of 

Labor, or pursuant thereto, and will permit 

access to its books, records, and accounts 

by the Contracting Officer and the 

Secretary of Labor for purposes of 

investigation to ascertain compliance with 

such rules, regulations, and orders. 

(f) In the event of the 

Contractor's noncompliance with the 

nondiscrimination clauses of this 

Settlement Contract or with any of the said 

(f) In the event of the 

Contractor's noncompliance with the 

nondiscrimination clauses of this Contract 

or with any of the said rules, regulations, or 
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47

rules, regulations, or orders, this Settlement

Contract may be canceled, terminated, or 

suspended, in whole or in part, and the 

Contractor may be declared ineligible for 

further Government contracts in 

accordance with procedures authorized in 

said amended Executive Order, and such 

other sanctions may be imposed and 

remedies invoked as provided in said 

Executive Order, or by rule, regulation, or 

order of the Secretary of Labor, or as 

otherwise provided by law. 

orders, this Contract may be canceled, 

terminated, or suspended, in whole or in 

part, and the Contractor may be declared 

ineligible for further Government contracts 

in accordance with procedures authorized 

in said amended Executive Order, and such 

other sanctions may be imposed and 

remedies invoked as provided in said 

Executive Order, or by rule, regulation, or 

order of the Secretary of Labor, or as 

otherwise provided by law. 

(g) The Contractor will include 

the provisions of paragraphs (a) through (g) 

in every subcontract or purchase order 

unless exempted by the rules, regulations, 

or orders of the Secretary of Labor issued 

pursuant to Section 204 of said amended 

Executive Order, so that such provisions 

will be binding upon each subcontractor or 

vendor. The Contractor will take such 

action with respect to any subcontract or 

purchase order as may be directed by the 

Secretary of Labor as a means of enforcing 

such provisions, including sanctions for 

noncompliance: Provided, however, That

that in the event the Contractor becomes 

involved in, or is threatened with, litigation 

with a subcontractor or vendor as a result 

of such direction, the Contractor may 

request the United States to enter into such 

litigation to protect the interests of the 

United States. 

(g) The Contractor will include 

the provisions of paragraphs (a) through (g) 

in every subcontract or purchase order 

unless exempted by the rules, regulations, 

or orders of the Secretary of Labor issued 

pursuant to Section 204 of said amended 

Executive Order, so that such provisions 

will be binding upon each subcontractor or 

vendor. The Contractor will take such 

action with respect to any subcontract or 

purchase order as may be directed by the 

Secretary of Labor as a means of enforcing 

such provisions, including sanctions for 

noncompliance: Provided, however, Tthat 

in the event the Contractor becomes 

involved in, or is threatened with, litigation 

with a subcontractor or vendor as a result 

of such direction, the Contractor may 

request the United States to enter into such 

litigation to protect the interests of the 

United States. 

COMPLIANCE WITH CIVIL RIGHTS 

LAWS AND REGULATIONS

(For Districts Only) 

COMPLIANCE WITH CIVIL RIGHTS 

LAWS AND REGULATIONS

(For Districts Only) 

16 17. (a) The Contractor shall 

comply with Title VI of the Civil Rights 

Act of 1964 (42 U.S.C. 2000d), Section 

504 of the Rehabilitation Act of 1975 (P.L. 

93-112, as amended), the Age 

Discrimination Act of 1975 (42 U.S.C. 

6101, et seq.) and any other applicable civil 

1617. (a) The Contractor shall 

comply with Title VI of the Civil Rights 

Act of 1964 (42 U.S.C. 2000d), Section 

504 of the Rehabilitation Act of 1975 (P.L. 

93-112, as amended), the Age 

Discrimination Act of 1975 (42 U.S.C. 

6101, et seq.) and any other applicable civil 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

48

rights laws, as well as with their respective 

implementing regulations and guidelines 

imposed by the U.S. Department of the 

Interior and/or Bureau of Reclamation. 

rights laws, as well as with their respective 

implementing regulations and guidelines 

imposed by the U.S. Department of the 

Interior and/or Bureau of Reclamation. 

(b) These statutes require that 

no person in the United States shall, on the 

grounds of race, color, national origin, 

handicap, or age, be excluded from 

participation in, be denied the benefits of, 

or be otherwise subjected to discrimination 

under any program or activity receiving 

financial assistance from the Bureau of 

Reclamation. By executing this Settlement

Contract, the Contractor agrees to 

immediately take any measures necessary 

to implement this obligation, including 

permitting officials of the United States to 

inspect premises, programs, and 

documents. 

(b) These statutes require that 

no person in the United States shall, on the 

grounds of race, color, national origin, 

handicap, or age, be excluded from 

participation in, be denied the benefits of, 

or be otherwise subjected to discrimination 

under any program or activity receiving 

financial assistance from the Bureau of 

Reclamation. By executing this Contract, 

the Contractor agrees to immediately take 

any measures necessary to implement this 

obligation, including permitting officials of 

the United States to inspect premises, 

programs, and documents. 

(c) The Contractor makes this 

agreement in consideration of and for the 

purpose of obtaining any and all Federal 

grants, loans, contracts, property discounts, 

or other Federal financial assistance 

extended after the date hereof to the 

Contractor by the Bureau of Reclamation, 

including installment payments after such 

date on account of arrangements for 

Federal financial assistance which were 

approved before such date. The Contractor 

recognizes and agrees that such Federal 

assistance will be extended in reliance on 

the representations and agreements made in 

this Article, and that the United States 

reserves the right to seek judicial 

enforcement thereof. 

(c) The Contractor makes this 

agreement in consideration of and for the 

purpose of obtaining any and all Federal 

grants, loans, contracts, property discounts, 

or other Federal financial assistance 

extended after the date hereof to the 

Contractor by the Bureau of Reclamation, 

including installment payments after such 

date on account of arrangements for 

Federal financial assistance which were 

approved before such date. The Contractor 

recognizes and agrees that such Federal 

assistance will be extended in reliance on 

the representations and agreements made in 

this Article, and that the United States 

reserves the right to seek judicial 

enforcement thereof. 

MINGLING OF CONTRACTOR’S 

PROJECT AND NON-PROJECT WATER

MINGLING OF CONTRACTOR’S 

PROJECT AND NON-PROJECT WATER

17 18. (a) Project Water must of 

necessity be transported by the Contractor 

1718. (a) Project Water must of 

necessity be transported by the Contractor 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

49

to its water users by means of the same 

works and channels used for the transport 

of its non-Project Water including Base 

Supply. Notwithstanding such mingling of 

water, the provisions of Article 11 hereof 

shall be applicable only to Project Water, 

and such mingling of water shall not in any 

manner subject to the provisions of Article 

11 hereof the Contractor’s non-Project 

water including Base Supply. 

to its water users by means of the same 

works and channels used for the transport 

of its non-Project Water including Base 

Supply. Notwithstanding such mingling of 

water, the provisions of Article 11 hereof 

shall be applicable only to Project Water, 

and such mingling of water shall not in any 

manner subject to the provisions of Article 

11 hereof the Contractor’s non-Project 

wWater including Base Supply. 

(b) If required in accordance 

with subdivision (c) of this Article, the 

Contractor shall install and maintain such 

measuring equipment and distribution 

facilities and maintain such records as may 

be necessary to determine the amounts of 

water delivered to Excess Lands served by 

the Contractor. The Contractor shall not 

within any month deliver to Ineligible 

Lands water in excess of the non-Project 

Water, including Base Supply, for that 

month. The Contracting Officer or 

authorized representative shall have the 

right at all reasonable times to inspect such 

records and measuring equipment. 

(b) If required in accordance 

with subdivision (c) of this Article, the 

Contractor shall install and maintain such 

measuring equipment and distribution 

facilities and maintain such records as may 

be necessary to determine the amounts of 

water delivered to Excess Lands served by 

the Contractor. The Contractor shall not 

within any month deliver to Ineligible 

Lands water in excess of the non-Project 

Water, including Base Supply, for that 

month. The Contracting Officer or 

authorized representative shall have the 

right at all reasonable times to inspect such 

records and measuring equipment. 

(c) The Contractor will not be 

considered in violation of the requirement 

that Project Water be delivered only to 

Eligible Lands during any month of the 

(c) The Contractor will not be 

considered in violation of the requirement 

that Project Water be delivered only to 

Eligible Lands during any month of the 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

50

irrigation season that the water requirement 

for beneficial use on Eligible Lands for that 

month is equal to or in excess of the Project 

Water for that month as shown on Exhibit 

A or any revision thereof pursuant to 

subdivision (b) of Article 3. The water 

requirement for beneficial use on Eligible 

Lands will be determined by multiplying: 

irrigation season that the water requirement 

for beneficial use on Eligible Lands for that 

month is equal to or in excess of the Project 

Water for that month as shown on Exhibit 

A or any revision thereof pursuant to 

subdivision (b) of Article 3. The water 

requirement for beneficial use on Eligible 

Lands will be determined by multiplying: 

(1) the number of irrigable 

acres of the particular types of crops grown 

in that year on the acreage designated as 

eligible by 

(1) the number of irrigable 

acres of the particular types of crops grown 

in that year on the acreage designated as 

eligible by 

(2) the Unit Duties as set 

forth in Exhibit C attached hereto and made 

a part hereof, or by such other Unit Duties 

mutually agreed upon by the Contractor 

and the Contracting Officer. In order to 

make the computation of the water 

requirement for Eligible Lands, on April 1 

of each Year and concurrently with its 

order for water for the irrigation season, the 

Contractor shall designate the acreage of 

and type of crops to be grown on its 

Eligible Lands that irrigation season. 

During any month the water requirement as 

above determined for crops growing on 

Eligible Lands during such month is equal 

to or in excess of the Project Water for that 

month as provided herein the Contractor 

(2) the Unit Duties as set 

forth in Exhibit C attached hereto and made 

a part hereof, or by such other Unit Duties 

mutually agreed upon by the Contractor 

and the Contracting Officer. In order to 

make the computation of the water 

requirement for Eligible Lands, on April 1 

of each Year and concurrently with its 

order for water for the irrigation season, the 

Contractor shall designate the acreage of 

and type of crops to be grown on its 

Eligible Lands that irrigation season. 

During any month the water requirement as 

above determined for crops growing on 

Eligible Lands during such month is equal 

to or in excess of the Project Water for that 

month as provided herein the Contractor 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

51

shall not be required to measure the water 

delivered to Excess Lands. Any month the 

said water requirement is less than the 

amount of Project Water as provided 

herein, the Contractor will be required to 

measure water delivered to excess land in 

accordance with subdivision (b) hereof. 

shall not be required to measure the water 

delivered to Excess Lands. Any month the 

said water requirement is less than the 

amount of Project Water as provided 

herein, the Contractor will be required to 

measure water delivered to excess land in 

accordance with subdivision (b) hereof. 

BOOKS, RECORDS, AND 

REPORTS

BOOKS, RECORDS, AND 

REPORTS

18 19. The Contractor shall 

establish and maintain accounts and other 

books and records pertaining to 

administration of the terms and conditions 

of this Settlement Contract, including: the 

Contractor's financial transactions, water 

supply data, and Project land and right-ofway agreements; the water users' land-use 

(crop census), land ownership, land-leasing 

and water use data; and other matters that 

the Contracting Officer may require. 

Reports thereon shall be furnished to the 

Contracting Officer in such form and on 

such date or dates as the Contracting 

Officer may require. Subject to applicable 

Federal laws and regulations, each party to 

this Settlement Contract shall have the 

right during office hours to examine and 

make copies of each other’s books and 

official records relating to matters covered 

by this Settlement Contract. 

1819. The Contractor shall 

establish and maintain accounts and other 

books and records pertaining to 

administration of the terms and conditions 

of this Contract, including: the 

Contractor's financial transactions, water 

supply data, and Project land and right-ofway agreements; the water users' land-use 

(crop census), land ownership, land-leasing 

and water use data; and other matters that 

the Contracting Officer may require. 

Reports thereon shall be furnished to the 

Contracting Officer in such form and on 

such date or dates as the Contracting 

Officer may require. Subject to applicable 

Federal laws and regulations, each party to 

this Contract shall have the right during 

office hours to examine and make copies of 

each other’s books and official records 

relating to matters covered by this 

Contract. 

CHANGE OF PLACE OF USE OR 

ORGANIZATION

CHANGE OF PLACE OF USE OR 

ORGANIZATION

19 20. (a) Unless the written 

consent of the United States is first 

1920. (a) Unless the written 

consent of the United States is first 
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52

obtained consulted no change shall be 

made in the place of water use shown on 

Exhibit B. 

obtained no change shall be made in the 

place of water use shown on Exhibit B. 

(b) While this contract

Settlement Contract is in effect, no change 

shall be made in the area of the Contractor 

as shown on its Exhibit B, by inclusion or 

exclusion of lands, by dissolution, 

consolidation, or merger or otherwise, 

except upon unless the Contracting 

Officer’s written assent thereto Officer is 

first consulted. 

(b) While this cContract is in 

effect, no change shall be made in the area 

of the Contractor as shown on its Exhibit 

B, by inclusion or exclusion of lands, by 

dissolution, consolidation, or merger or 

otherwise, except upon the Contracting 

Officer’s written assent thereto. 

(c) In the event lands are 

excluded from the area of the Contractor, 

as provided herein, the quantity of Project 

Water to be diverted may be decreased 

pursuant to a supplemental agreement to be 

executed in respect thereto. 

(c) In the event lands are 

excluded from the area of the Contractor, 

as provided herein, the quantity of Project 

Water to be diverted may be decreased 

pursuant to a supplemental agreement to be 

executed in respect thereto. 

CONSOLIDATION OF CONTRACTING 

ENTITIES

CONSOLIDATION OF 

CONTRACTING ENTITIES

20 21. Consolidation of 

Contractors may will be approved by the 

Contracting Officer upon request provided: 

(i) the Contracting Officer approves the 

form and organization of the resulting 

entity and the utilization by it of the 

Contract Total; and (ii) the obligations of 

2021. Consolidation of Contractors 

may be approved by the Contracting 

Officer provided: (i) the Contracting 

Officer approves the form and organization 

of the resulting entity and the utilization by 

it of the Contract Total; and (ii) the 

obligations of the Contractor are assumed 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

53

the Contractors are assumed by such the 

resulting entity. 

by such entity. 

No such consolidation shall be valid 

unless and until approved by the 

Contracting Officer.

No such consolidation shall be valid 

unless and until approved by the 

Contracting Officer. 

NOTICES NOTICES

21 22. Any notice, demand, or 

request authorized or required by this 

Settlement Contract shall be deemed to 

have been given, on behalf of the 

Contractor, when mailed, postage prepaid, 

or delivered to the Area Manager, Northern 

California Area Office, Bureau of 

Reclamation, 16349 Shasta Dam Blvd., 

Shasta Lake, California, 96019, and on 

behalf of the United States, when mailed, 

postage prepaid, or delivered to the Board 

of Directors /City Council of the 

________________________. The 

designation of the addressee or the address 

may be changed by notice given in the 

same manner as provided in this Article for 

other notices. 

2122. Any notice, demand, or 

request authorized or required by this 

Contract shall be deemed to have been 

given, on behalf of the Contractor, when 

mailed, postage prepaid, or delivered to the 

Area Manager, Northern California Area 

Office, Bureau of Reclamation, 16349 

Shasta Dam Blvd., Shasta Lake, California, 

96019, and on behalf of the United States, 

when mailed, postage prepaid, or delivered 

to the Board of Directors /City Council of 

the ________________________. The 

designation of the addressee or the address 

may be changed by notice given in the 

same manner as provided in this Article for 

other notices. 

ASSIGNMENT LIMITED--

SUCCESSORS AND ASSIGNS 

OBLIGATED

ASSIGNMENT LIMITED--

SUCCESSORS AND ASSIGNS 

OBLIGATED

22 23. (a) The provisions of this 

Settlement Contract shall apply to and bind 

the successors and assigns of the parties 

hereto, but no assignment or transfer of this 

Settlement Contract or any right or interest 

therein shall be valid until approved in 

writing by the Contracting Officer. 

2223. (a) The provisions of 

this Contract shall apply to and bind the 

successors and assigns of the parties hereto, 

but no assignment or transfer of this 

Contract or any right or interest therein 

shall be valid until approved in writing by 

the Contracting Officer. 

(b) The assignment of any right 

or interest in this Settlement Contract by 

either party shall not interfere with the 

(b) The assignment of any right 

or interest in this Contract by either party 

shall not interfere with the rights or 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

54

rights or obligations of the other party to 

this Settlement Contract absent the written 

concurrence of said other party. 

obligations of the other party to this 

Contract absent the written concurrence of 

said other party. 

(c) The Contracting Officer 

shall not unreasonably condition or 

withhold his approval of any proposed 

assignment. 

(c) The Contracting Officer 

shall not unreasonably condition or 

withhold his approval of any proposed 

assignment. 

OFFICIALS NOT TO BENEFIT OFFICIALS NOT TO BENEFIT

23 24. (a) No Member of or 

Delegate to Congress, Resident 

Commissioner, or official of the Contractor 

shall benefit from this Settlement Contract 

other than as a water user or landowner in 

the same manner as other water users or 

landowners. 

2324. (a) No Member of or 

Delegate to Congress, Resident 

Commissioner, or official of the Contractor 

shall benefit from this Contract other than 

as a water user or landowner in the same 

manner as other water users or landowners. 

(b) No officer or member of the 

governing board of the Contractor shall 

receive any benefit that may arise by 

reason of this contract Settlement Contract

other than as a landowner within the 

Contractor’s service area and in the same 

manner as other landowners within the said 

service area. 

(b) No officer or member of the 

governing board of the Contractor shall 

receive any benefit that may arise by 

reason of this cContract other than as a 

landowner within the Contractor’s service 

area and in the same manner as other 

landowners within the said service area. 

CONTINGENT UPON 

APPROPRIATION OR ALLOTMENT OF

FUNDS

CONTINGENT UPON 

APPROPRIATION OR ALLOTMENT OF 

FUNDS

24 25. The expenditure or advance 

of any money or the performance of any 

obligation of the United States under this 

Settlement Contract shall be contingent 

upon appropriation or allotment of funds. 

Absence of appropriation or allotment of 

funds shall not relieve the Contractor from 

any obligations under this Settlement

Contract. No liability shall accrue to the 

United States in case funds are not 

appropriated or allotted. 

2425. The expenditure or advance 

of any money or the performance of any 

obligation of the United States under this 

Contract shall be contingent upon 

appropriation or allotment of funds. 

Absence of appropriation or allotment of 

funds shall not relieve the Contractor from 

any obligations under this Contract. No 

liability shall accrue to the United States in 

case funds are not appropriated or allotted. 

CONFIRMATION OF SETTLEMENT

CONTRACT

CONFIRMATION OF CONTRACT
SRSC Document, 5/31/02 USBR Document, 6/21/02 

55

 

25 26. The Contractor, after the 

execution of this Settlement Contract, shall 

promptly seek to secure a decree of a court 

of competent jurisdiction of the State of 

California, if appropriate, confirming the 

execution of this contract Settlement 

Contract. The Contractor shall furnish the 

United States a certified copy of the final 

decree, the validation proceedings, and all 

pertinent supporting records of the court 

approving and confirming this Settlement

Contract, and decreeing and adjudging it to 

be lawful, valid, and binding on the 

Contractor. This Settlement Contract shall 

not be binding on the United States until 

such final decree has been secured. 

2526. The Contractor, after the 

execution of this Contract, shall promptly 

seek to secure a decree of a court of 

competent jurisdiction of the State of 

California, if appropriate, confirming the 

execution of this cContract. The 

Contractor shall furnish the United States a 

certified copy of the final decree, the 

validation proceedings, and all pertinent 

supporting records of the court approving 

and confirming this Contract, and 

decreeing and adjudging it to be lawful, 

valid, and binding on the Contractor. This 

Contract shall not be binding on the United 

States until such final decree has been 

secured. 

UNAVOIDABLE GROUNDWATER 

PERCOLATION

UNAVOIDABLE GROUNDWATER 

PERCOLATION

26 27. To the extent applicable, the 

Contractor shall not be deemed to have 

delivered Project Water to Excess Lands or 

Ineligible Lands if such lands are irrigated 

with groundwater that reaches the 

underground strata as an unavoidable result 

of the delivery of Project Water by the 

Contractor to Eligible Lands. 

2627. To the extent applicable, the 

Contractor shall not be deemed to have 

delivered Project Water to Excess Lands or 

Ineligible Lands if such lands are irrigated 

with groundwater that reaches the 

underground strata as an unavoidable result 

of the delivery of Project Water by the 

Contractor to Eligible Lands. 

PRIVACY ACT COMPLIANCE PRIVACY ACT COMPLIANCE

27 28. (a) The Contractor shall 

comply with the Privacy Act of 1974 (5 

U.S.C. 552a) (the Act) and the Department 

of the Interior rules and regulations under 

the Act (43 CFR 2.45 et seq.) in 

maintaining Landholder acreage 

2728. (a) The Contractor shall 

comply with the Privacy Act of 1974 (5 

U.S.C. 552a) (the Act) and the Department 

of the Interior rules and regulations under 

the Act (43 CFR 2.45 et seq.) in 

maintaining Landholder acreage 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

56

certification and reporting records, required 

to be submitted to the Contractor for 

compliance with Sections 206 and 228 of 

the Reclamation Reform Act of 1982 (96 

Stat. 1266), and pursuant to 43 CFR 

426.18. 

certification and reporting records, required 

to be submitted to the Contractor for 

compliance with Sections 206 and 228 of 

the Reclamation Reform Act of 1982 (96 

Stat. 1266), and pursuant to 43 CFR 

426.18. 

(b) With respect to the 

application and administration of the 

criminal penalty provisions of the Act (5 

U.S.C. 552a(i)), the Contractor and the 

Contractor's employees responsible for 

maintaining the certification and reporting 

records referenced in (a) above are 

considered to be employees of the 

Department of the Interior. See 5 U.S.C. 

552a(m). 

(b) With respect to the 

application and administration of the 

criminal penalty provisions of the Act (5 

U.S.C. 552a(i)), the Contractor and the 

Contractor's employees responsible for 

maintaining the certification and reporting 

records referenced in (a) above are 

considered to be employees of the 

Department of the Interior. See 5 U.S.C. 

552a(m). 

(c) The Contracting Officer or a 

designated representative shall provide the 

Contractor with current copies of the 

Interior Department Privacy Act 

regulations and the Bureau of Reclamation 

Federal Register Privacy Act System of 

Records Notice (Acreage Limitation--

Interior, Reclamation-31) which govern the 

maintenance, safeguarding, and disclosure 

of information contained in the 

Landholder's certification and reporting 

records. 

(c) The Contracting Officer or a 

designated representative shall provide the 

Contractor with current copies of the 

Interior Department Privacy Act 

regulations and the Bureau of Reclamation 

Federal Register Privacy Act System of 

Records Notice (Acreage Limitation--

Interior, Reclamation-31) which govern the 

maintenance, safeguarding, and disclosure 

of information contained in the 

Landholder's certification and reporting 

records. 

(d) The Contracting Officer 

shall designate a full-time employee of the 

Bureau of Reclamation to be the System 

Manager who shall be responsible for 

making decisions on denials pursuant to 43 

CFR 2.61 and 2.64 amendment requests 

pursuant to 43 CFR 2.72. The Contractor 

is authorized to grant requests by 

individuals for access to their own records. 

(d) The Contracting Officer 

shall designate a full-time employee of the 

Bureau of Reclamation to be the System 

Manager who shall be responsible for 

making decisions on denials pursuant to 43 

CFR 2.61 and 2.64 amendment requests 

pursuant to 43 CFR 2.72. The Contractor 

is authorized to grant requests by 

individuals for access to their own records. 

(e) The Contractor shall 

forward promptly to the System Manager 

each proposed denial of access under 43 

CFR 2.64; and each request for amendment 

of records filed under 43 CFR 2.71; notify 

(e) The Contractor shall 

forward promptly to the System Manager 

each proposed denial of access under 43 

CFR 2.64; and each request for amendment 

of records filed under 43 CFR 2.71; notify 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

57

the requester accordingly of such referral; 

and provide the System Manager with 

information and records necessary to 

prepare an appropriate response to the 

requester. These requirements do not apply 

to individuals seeking access to their own 

certification and reporting forms filed with 

the Contractor pursuant to 43 CFR 426.18, 

unless the requester elects to cite the 

Privacy Act as a basis for the request. 

the requester accordingly of such referral; 

and provide the System Manager with 

information and records necessary to 

prepare an appropriate response to the 

requester. These requirements do not apply 

to individuals seeking access to their own 

certification and reporting forms filed with 

the Contractor pursuant to 43 CFR 426.18, 

unless the requester elects to cite the 

Privacy Act as a basis for the request. 

WATER CONSERVATION WATER CONSERVATION

28 29. [TO BE REPLACED]. (a) 

Prior to the diversion of Project Water, the 

Contractor shall be implementing an 

effective water conservation and efficiency 

program based on the Contractor's water 

conservation plan that has been determined 

by the Contracting Officer to meet the 

conservation and efficiency criteria for 

evaluating water conservation plans 

established under Federal law. The water 

conservation and efficiency program shall 

contain definite water conservation 

objectives, appropriate economically 

feasible water conservation measures, and 

time schedules for meeting those 

objectives. Continued diversion of Project 

Water pursuant to this Settlement Contract 

shall be contingent upon the Contractor’s 

continued implementation of such water 

conservation program. In the event the 

Contractor's water conservation plan or any 

2829. (a) Prior to the diversion of 

Project Water, the Contractor shall be 

implementing an effective water 

conservation and efficiency program based 

on the Contractor's water conservation plan 

that has been determined by the 

Contracting Officer to meet the 

conservation and efficiency criteria for 

evaluating water conservation plans 

established under Federal law. The water 

conservation and efficiency program shall 

contain definite water conservation 

objectives, appropriate economically 

feasible water conservation measures, and 

time schedules for meeting those 

objectives. Continued diversion of Project 

Water pursuant to this Contract shall be 

contingent upon the Contractor’s continued 

implementation of such water conservation 

program. In the event the Contractor's 

water conservation plan or any revised 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

58

revised water conservation plan completed 

pursuant to subdivision (c) of Article 28 of 

this Settlement Contract have not yet been 

determined by the Contracting Officer to 

meet such criteria, due to circumstances 

which the Contracting Officer determines 

are beyond the control of the Contractor, 

Project Water deliveries shall be made 

under this Settlement Contract so long as 

the Contractor diligently works with the 

Contracting Officer to obtain such 

determination at the earliest practicable 

date, and thereafter the Contractor 

immediately begins implementing its water 

conservation and efficiency program in 

accordance with the time schedules therein.

water conservation plan completed 

pursuant to subdivision (c) of Article 28 29

of this Contract have not yet been 

determined by the Contracting Officer to 

meet such criteria, due to circumstances 

which the Contracting Officer determines 

are beyond the control of the Contractor, 

Project Water deliveries shall be made 

under this Contract so long as the 

Contractor diligently works with the 

Contracting Officer to obtain such 

determination at the earliest practicable 

date, and thereafter the Contractor 

immediately begins implementing its water 

conservation and efficiency program in 

accordance with the time schedules therein. 

(b) The Contractor shall submit 

to the Contracting Officer a report on the 

status of its implementation of the water 

conservation plan on the reporting dates 

specified in the then existing conservation 

and efficiency criteria established under 

Federal law.

(b) The Contractor shall submit 

to the Contracting Officer a report on the 

status of its implementation of the water 

conservation plan on the reporting dates 

specified in the then existing conservation 

and efficiency criteria established under 

Federal law. 

(c) At five (5)-year intervals, 

the Contractor shall revise its water 

conservation plan to reflect the then current 

conservation and efficiency criteria for 

evaluating water conservation plans 

established under Federal law and submit 

(c) At five (5)-year intervals, 

the Contractor shall revise its water 

conservation plan to reflect the then current 

conservation and efficiency criteria for 

evaluating water conservation plans 

established under Federal law and submit 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

59

such revised water management plan to the 

Contracting Officer for review and 

evaluation. The Contracting Officer will 

then determine if the water conservation 

plan meets Reclamation’s then current 

conservation and efficiency criteria for 

evaluating water conservation plans 

established under Federal law. 

such revised water management plan to the 

Contracting Officer for review and 

evaluation. The Contracting Officer will 

then determine if the water conservation 

plan meets Reclamation’s then current 

conservation and efficiency criteria for 

evaluating water conservation plans 

established under Federal law. 

(d) If the Contractor is engaged 

in direct ground-water recharge, such 

activity shall be described in the 

Contractor’s water conservation plan.

(d) If the Contractor is engaged 

in direct ground-water recharge, such 

activity shall be described in the 

Contractor’s water conservation plan. 

OPINIONS AND DETERMINATIONS OPINIONS AND DETERMINATIONS

29 30. (a) Where the terms of this 

Settlement Contract provide for actions to 

be based upon the opinion or determination 

of either party to this Settlement Contract, 

said terms shall not be construed as 

permitting such action to be predicated 

upon arbitrary, capricious, or unreasonable 

opinions or determinations. Both parties, 

notwithstanding any other provisions of 

this Settlement Contract, expressly reserve 

the right to seek relief from and appropriate 

adjustment for any such arbitrary, 

capricious, or unreasonable opinion or 

determination. Each opinion or 

determination by either party shall be 

2930. (a) Where the terms of this 

Contract provide for actions to be based 

upon the opinion or determination of either 

party to this Contract, said terms shall not 

be construed as permitting such action to 

be predicated upon arbitrary, capricious, or 

unreasonable opinions or determinations. 

Both parties, notwithstanding any other 

provisions of this Contract, expressly 

reserve the right to seek relief from and 

appropriate adjustment for any such 

arbitrary, capricious, or unreasonable 

opinion or determination. Each opinion or 

determination by either party shall be 

provided in a timely manner. Nothing in 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

60

provided in a timely manner. Nothing in 

subdivision (a) of Article 29 of this 

Settlement Contract is intended to or shall 

affect or alter the standard of judicial 

review applicable under federal law to any 

opinion or determination implementing a 

specific provision of federal law embodied 

in statute or regulation. 

subdivision (a) of Article 29 30 of this 

Contract is intended to or shall affect or 

alter the standard of judicial review 

applicable under federal law to any opinion 

or determination implementing a specific 

provision of federal law embodied in 

statute or regulation. 

(b) The Contracting Officer 

shall have the right to make determinations 

necessary to administer this Settlement

Contract that are consistent with the 

provisions of this Settlement Contract, the 

laws of the United States and of the State 

of California, and the rules and regulations 

promulgated by the Secretary of the 

Interior. Such determinations shall be 

made in consultation with the Contractor to 

the extent reasonably practicable. 

(b) The Contracting Officer 

shall have the right to make determinations 

necessary to administer this Contract that 

are consistent with the provisions of this 

Contract, the laws of the United States and 

of the State of California, and the rules and 

regulations promulgated by the Secretary 

of the Interior. Such determinations shall 

be made in consultation with the 

Contractor to the extent reasonably 

practicable. 

CONTRACTOR TO PAY CERTAIN 

MISCELLANEOUS COSTS

CONTRACTOR TO PAY CERTAIN 

MISCELLANEOUS COSTS

30 31. (a) In addition to all other 

payments to be made by the Contractor 

pursuant to this Settlement Contract, the 

Contractor shall pay to the United States, 

within sixty (60) days after receipt of a bill 

and detailed statement submitted by the 

Contracting Officer to the Contractor for 

such specific items of direct cost incurred 

3031. (a) In addition to all other 

payments to be made by the Contractor 

pursuant to this Contract, the Contractor 

shall pay to the United States, within sixty 

(60) days after receipt of a bill and detailed 

statement submitted by the Contracting 

Officer to the Contractor for such specific 

items of direct cost incurred by the United 
SRSC Document, 5/31/02 USBR Document, 6/21/02 

61

by the United States for work requested by 

the Contractor associated with this 

Settlement Contract plus indirect costs in 

accordance with applicable Bureau of 

Reclamation policies and procedures. All 

such amounts referred to in this Article 

shall not exceed the amount agreed to in 

writing in advance by the Contractor. This 

Article shall not apply to costs for routine 

contract Settlement Contract

administration. 

States for work requested by the Contractor 

associated with this Contract plus indirect 

costs in accordance with applicable Bureau 

of Reclamation policies and procedures. 

All such amounts referred to in this Article 

shall not exceed the amount agreed to in 

writing in advance by the Contractor. This 

Article shall not apply to costs for routine 

contract administration. 

(b) All advances for 

miscellaneous costs incurred for work 

requested by the Contractor pursuant to 

Article 30 of this Settlement Contract shall 

be adjusted to reflect the actual costs when 

the work has been completed. If the 

advances exceed the actual costs incurred, 

the difference will be refunded to the 

Contractor. If the actual costs exceed the 

Contractor's advances, the Contractor will 

be billed for the additional costs pursuant 

to Article 30 of this Settlement Contract. 

(b) All advances for 

miscellaneous costs incurred for work 

requested by the Contractor pursuant to 

Article 30 31 of this Contract shall be 

adjusted to reflect the actual costs when the 

work has been completed. If the advances 

exceed the actual costs incurred, the 

difference will be refunded to the 

Contractor. If the actual costs exceed the 

Contractor's advances, the Contractor will 

be billed for the additional costs pursuant 

to Article 30 of this Contract. 

WAIVER OF DEFAULT WAIVER OF DEFAULT

31 32. The waiver by either party 

to this contract Settlement Contract as to 

any default shall not be construed as a 

waiver of any other default or as authority 

3132. The waiver by either party to 

this cContract as to any default shall not be 

construed as a waiver of any other default 

or as authority of the other party to 
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62

of the other party to continue such default 

or to make, do, or perform, or not to make, 

do, or perform, as the case may be, any act 

or thing which would constitute a default. 

continue such default or to make, do, or 

perform, or not to make, do, or perform, as 

the case may be, any act or thing which 

would constitute a default. 

IN WITNESS WHEREOF, the 

parties hereto have executed this contract

Settlement Contract as of the day and year 

first hereinabove written. 

IN WITNESS WHEREOF, the 

parties hereto have executed this cContract 

as of the day and year first hereinabove 

written. 

THE UNITED STATES OF 

AMERICA 

By: 

__________________________ 

Regional Director, Mid-Pacific 

Region 

Bureau of Reclamation 

 (SEAL) 

By:_______________________

_______ 

President 

ATTEST: 

__________________________

______ 

Secretary 

THE UNITED STATES OF 

AMERICA 

By: 

__________________________ 

Regional Director, Mid-Pacific 

Region 

Bureau of Reclamation 

 (SEAL) 

By:_______________________

_______ 

President 

ATTEST: 

__________________________

______ 

Secretary