1 

 

1 

2 Irrigation and M&I 

3 Draft San Luis Unit Interim Form of Contract 

4 

5 EXHIBIT 

6 USBR SLU-IR-2007-01 

7 

8 BUREAU OF RECLAMATION 

9 Central Valley Project, California 

10 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

11 AND

12 ______________________

13 PROVIDING FOR PROJECT WATER SERVICE

14 SAN LUIS UNIT AND DELTA DIVISION

Table of Contents

Article No. Title Page No.

Preamble 1 

 

Irrigation and M&I.......................................................................................................................... 1 

Table of Contents............................................................................................................................ 1 

15 EXPLANATORY RECITALS..............................................................................................................................1

16 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR...................................15

17 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER ................................20

18 RATES AND METHOD OF PAYMENT FOR WATER ...................................................................................24

19 SALES, TRANSFERS, OR EXCHANGES OF WATER ...................................................................................31

20 APPLICATION OF PAYMENTS AND ADJUSTMENTS ................................................................................33

21 CONSTRAINTS ON THE AVAILABILITY OF WATER ................................................................................35

22 WATER AND AIR POLLUTION CONTROL...................................................................................................38

23 WATER ACQUIRED BY THE CONTRACTOR...............................................................................................39

24 COORDINATION AND COOPERATION ........................................................................................................43

25 CHARGES FOR DELINQUENT PAYMENTS .................................................................................................45

26 EQUAL OPPORTUNITY ...................................................................................................................................45

27 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT ................................................46

28 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS...........................................................47

29 PRIVACY ACT COMPLIANCE ........................................................................................................................47

30 WATER CONSERVATION ...............................................................................................................................48

31 EXISTING OR ACQUIRED WATER OR WATER RIGHTS...........................................................................50

32 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS .........................................................58

33 BOOKS, RECORDS, AND REPORTS ..............................................................................................................58

34 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED ....................................................59

35 SEVERABILITY.................................................................................................................................................59

36 RESOLUTION OF DISPUTES...........................................................................................................................60

37 OFFICIALS NOT TO BENEFIT ........................................................................................................................60

38 FEDERAL LAWS ...............................................................................................................................................61

39 NOTICES ............................................................................................................................................................61
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40 UNITED STATES 

41 DEPARTMENT OF THE INTERIOR 

42 BUREAU OF RECLAMATION 

43 Central Valley Project, California 

44 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

45 _______________

46 PROVIDING FOR PROJECT WATER SERVICE FROM

47 SAN LUIS UNIT AND DELTA DIVISION

48 THIS CONTRACT, made this _____ day of ____________________, 200__, in pursuance 

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

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

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

52 483), June 3, 1960 (74 Stat. 156), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), 

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

54 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, between THE 

55 UNITED STATES OF AMERICA, hereinafter referred to as the United States, and _____________,

56 hereinafter referred to as the Contractor, a public agency of the State of California, duly organized, 

57 existing, and acting pursuant to the laws thereof; 

58 WITNESSETH, That: 

59 EXPLANATORY RECITALS

[1st 60 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

62 control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection and 
2

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

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

65 San Joaquin River and their tributaries; and 

[2nd 66 ] WHEREAS, the United States constructed the Delta Division Facilities, including the 

67 San Luis Unit facilities (which include the San Luis Canal, Coalinga Canal, Pleasant Valley Pumping 

68 Plant, and Dos Amigos Pumping Plant), which will be used in part for the furnishing of water to the 

69 Contractor pursuant to the terms of this Interim Renewal Contract; and 

[3rd 70 ] WHEREAS, the rights to Project Water were acquired by the United States pursuant 

71 to California law for operation of the Project; and 

[4th 72 ] WHEREAS, the terms and conditions pursuant to which Project Water is to be 

73 delivered to the Contractor through December 31, 2007, are addressed in the Contract Between the 

74 United States and Westlands Water District Providing for Water Service, dated June 5, 1963, and the 

75 Stipulated Judgment in the lawsuit entitled Barcellos and Wolfsen, Inc., v. Westlands Water District, 

76 Civ. No. F-79-106-EDP (E.D. Cal.), as consolidated with Westlands Water District v. United States 

77 of America, Civ. No. F-81-245-EDP (E.D. Cal.), entered on December 30, 1986, hereinafter referred 

78 to as the Existing Contract; and (CONTRACTOR SPECIFIC WWD) 

[4th 79 ] WHEREAS, the United States and the Contractor entered into Contract No. ________ 

80 as amended, which provided the Contractor, Project Water from Project facilities from _____ to 

81 December 31, 200__; and CONTRACTOR SPECIFIC 

[5th 82 ] WHEREAS, the United States and the Contractor have pursuant to Subsection 

83 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

84 ___________which set out the terms pursuant to which the Contractor agreed to renew the Existing 
3

85 Contract before the expiration date after completion of the Programmatic Environmental Impact 

86 Statement (PEIS) and other appropriate environmental documentation and negotiation of a renewal 

87 contract; and which also set out the consequences of subsequent decisions not to renew; and 

88 CONTRACTOR SPECIFIC Binding Agreements

 [6th 89 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

90 Existing Contract following completion of appropriate environmental documentation, including the 

91 PEIS, required by Section 3409 of the CVPIA, pursuant to the National Environmental Policy Act 

92 (NEPA) analyzing the direct and indirect impacts and benefits of implementing the CVPIA and the 

93 potential renewal of all existing contracts for Project Water; and 

94 [6.1] CONTRACTOR SPECIFIC WWD 

[7th 95 ] WHEREAS, rights of renewal of Contract No. _______________ and to convert said 

96 contract to a contract as provided by subsection (d), Section 9 of the Act of August 4, 1939 (53 Stat. 

97 1187), are set forth in said contract; and

 [8.th 98 ] WHEREAS, the United States has completed the PEIS, but since all the environmental 

99 documentation necessary to execute a long-term renewal contract has not been completed, the 

100 Contractor has requested an interim renewal contract pursuant to Section 3404(c)(1) of the CVPIA; 

101 and 

 [9th 102 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

103 its obligations under the Existing Contract; and 

[10th 104 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

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

106 beneficial use and expects to utilize fully for reasonable and beneficial use the quantity of Project 
4

107 Water to be made available to it pursuant to this Interim Renewal Contract; and 

[11th 108 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

110 essential portion of its water supply; and 

[12th 111 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

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

113 [12.1] WHEREAS, the United States Court of Appeals for the Ninth Circuit has held that 

114 Section 1(a) of the San Luis Act, Public Law 86-488, 74 Stat. 156, imposes on the Secretary a duty to 

115 provide drainage service to the San Luis Unit; and Omit from M&I Interims

116 [12.2] WHEREAS, the Contractor and the Contracting Officer recognize that adequate 

117 drainage service is required to maintain agricultural production within certain areas served with 

118 Project Water made available under this Interim Renewal Contract, and all renewals thereof; and Omit 

119 from M&I Interims 

120 [12.3] WHEREAS, the Contacting Officer intends, to the extent appropriated funds are 

121 available, to develop and implement effective solutions to drainage problems in the San Luis Unit; and 

122 Omit from M&I Interims

123 [12.4] WHEREAS, the Contracting Officer and the Contractor acknowledge that such 

124 drainage solutions may involve actions not originally contemplated and/or the construction or use of 

125 facilities, other than the San Luis Drain; that the Contractor is investing in drainage solutions for

126 lands within its boundaries that should be considered by the Contracting Officer in determining 

127 drainage solutions; and that the existing ratesetting policy as it relates to the allocation and collection 

128 of drainage costs may require amendment to recognize those investments by the Contractor and other 
5

129 relevant circumstances; and Omit from M&I Interims

130 [12.5] WHEREAS, the Department of the Interior, Bureau of Reclamation published in May 2005 

131 the San Luis Drainage Feature Re-evaluation Draft Environmental Impact Statement, which considers 

132 alternatives to provide agricultural drainage service to the San Luis Unit; and Omit from M&I Interims 

133 [12.6] WHEREAS, on March 9, 2007, the Record of Decision was signed for the San Luis 

134 Drainage Feature Re-evaluation Draft Environmental Impact Statement identifying the retirement of 

135 up to 298,000 194,000 acres of land from irrigated agricultural productions as the selected 

136 alternative; and CONTRACTOR SPECIFIC WWD

 [13th 137 ] WHEREAS, the Secretary intends through coordination, cooperation, and partnerships 

138 to pursue measures to improve water supply, water quality, and reliability of the Project for all 

139 Project purposes; and 

[14th 140 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

145 relative to the Project; and 

146 [14.1] WHEREAS, the parties intend by this Interim Renewal Contract to develop a more 

147 cooperative relationship in order to achieve their mutual goals; and 

[14.2th 148 ] WHEREAS, in the CALFED Programmatic Record of Decision, dated August 28, 

149 2000, the United States and the State of California adopted a general target of continuously 

150 improving Delta water quality for all uses. The CALFED Agencies’ target for providing safe, 
6

151 reliable, and affordable drinking water in a cost-effective way, is to achieve either: (a) average 

152 concentrations at Clinton Forebay and other southern and central Delta drinking water intakes of 50 

153 ug/L bromide and 3.0 mg/L total organic carbon, or (b) an equivalent level of public health protection 

154 using a cost-effective combination of alternative source waters, source control and treatment 

155 technologies; and Applicable on to the M&I INTERIM CONTRACTS

[15th 156 ] WHEREAS, the Contractor has utilized or may utilize transfers, contract assignments, 

157 rescheduling and conveyance of Project Water and non-Project water under this Interim Renewal

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

159 use of water; and 

160 [15.1] WHEREAS, the parties desire and intend that this Interim Renewal Contract not 

161 provide a disincentive to the Contractor in continuing to carry out the beneficial activities set out in 

162 the Explanatory Recital immediately above; and 

[16th 163 ] WHEREAS, the United States and the Contractor are willing to enter into this Interim 

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

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

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

167 DEFINITIONS

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

169 with the intent of the parties as expressed in this Interim Renewal Contract, the term: 

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

171 dates inclusive; 

172 (b) “Charges” shall mean the payments required by Federal Reclamation law in 
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173 addition to the Rates and Tiered Pricing Component specified in this Contract as determined annually 

174 by the Contracting Officer pursuant to this Interim Renewal Contract; 

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

176 any Year such that the Contracting Officer is unable to deliver sufficient water to meet the Interim 

177 Renewal Contract Total; 

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

179 authorized representative acting pursuant to this Interim Renewal Contract or applicable Federal 

180 Reclamation law or regulation; 

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

182 Contractor is entitled under subdivision (a) of Article 3 of this Interim Renewal Contract; 

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

184 permitted to provide Project Water under this Interim Renewal Contract as described in Exhibit “A” 

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

186 Interim Renewal Contract without amendment of this Interim Renewal Contract; 

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

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

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

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

191 Tracy Pumping Plant, the O’Neill Forebay, the O’Neill Pumping/Generating Plant, and the San Luis 

192 Reservoir, used to divert, store, and convey water to those Project Contractors entitled to receive 

193 water conveyed through the Delta-Mendota Canal; 

194 (h) “Eligible Lands” shall mean all lands to which Irrigation Water may be 
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195 delivered in accordance with Section 204 of the Reclamation Reform Act of October 12, 1982 (96 

196 Stat. 1263), as amended, hereinafter referred to as RRA; OMIT FROM M&I INTERIM 

197 CONTRACTS 

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

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

200 Reclamation law; OMIT FROM M&I INTERIM CONTRACTS 

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

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

203 irrigation or M&I functions, as appropriate, of facilities in service including all Operation and 

204 Maintenance (O&M) deficits funded, less payments, over such periods as may be required under 

205 Federal Reclamation law, or applicable contract provisions. Interest will accrue on both the 

206 construction expenditures and funded O&M deficits from October 12, 1982, on costs outstanding at 

207 that date, or from the date incurred in the case of costs arising subsequent to October 12, 1982, and 

208 shall be calculated in accordance with subsections 202(3)(B) and (3)(C) of the RRA. The Full Cost 

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

210 the Rules and Regulations for the RRA; 

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

212 delivered in accordance with Section 204 of the RRA; OMIT FROM M&I INTERIM CONTRACTS 

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

214 the delivery of Irrigation Water; OMIT FROM M&I INTERIM CONTRACTS 

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

216 used primarily in the production of agricultural crops or livestock, including domestic use incidental 
9

217 thereto, and watering of livestock; 

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

219 nonexempt land, as provided in 43 CFR 426.2; OMIT FROM M&I INTERIM CONTRACTS 

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

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

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

223 kept for personal enjoyment or water delivered to landholdings operated in units of less than five 

224 acres unless the Contractor establishes to the satisfaction of the Contracting Officer that the use of 

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

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

227 delivery of M&I Water; 

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

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

230 Project facilities; 

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

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

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

234 Renewal Contract was entered into, the Operating Non-Federal Entities were the San Luis & Delta235 Mendota Water Authority and, with respect to San Luis Unit facilities, the California Department of 

236 Water Resources; CONTRACTOR SPECIFIC 

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

238 and managed by the Department of the Interior, Bureau of Reclamation; 
10

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

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

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

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

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

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

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

246 described in subdivision (a) of Article 7 of this Interim Renewal Contract; 

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

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

249 contract(s); Removed because not in original negotiated long form interims

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

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

252 through any agency of the Department of the Interior; 

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

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

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

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

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

258 that can be delivered to the Contractor for the upcoming Year as declared by the Contracting Officer, 

259 pursuant to subdivision (a) of Article 4 of this Interim Renewal Contract; 

260 (bb) “Water Scheduled” shall mean Project Water made available to the Contractor 
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261 for which times and quantities for delivery have been established by the Contractor and Contracting 

262 Officer, pursuant to subdivision (b) of Article 4 of this Interim Renewal Contract; and 

263 (cc) "Year" shall mean the period from and including March 1 of each Calendar 

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

265 TERM OF INTERIM RENEWAL CONTRACT - RIGHT TO USE OF WATER

266 2. (a) This Interim Renewal Contract shall be effective from January 1, 200_ and 

267 shall remain in effect through February 28, 200_, and thereafter will be renewed as described in this 

268 article. Except as provided in subdivision (b) of this Article, until completion of all appropriate 

269 environmental review, and provided that the Contractor has complied with all the terms and 

270 conditions of the interim renewal contract in effect for the period immediately preceding the 

271 requested successive interim renewal contract, this Interim Renewal Contract will be renewed, upon 

272 request of the Contractor, for successive interim periods each of which shall be no more than two (2) 

273 Years in length. Also, except as provided in subdivision (b) of this Article, in order to promote 

274 orderly and cost effective contract administration, the terms and conditions in subsequent interim 

275 renewal contracts shall be identical to the terms and conditions in the interim renewal contract 

276 immediately preceding the subsequent interim renewal contract: Provided, however, That each party 

277 preserves the right to propose modification(s) in any interim renewal contract other than those 

278 described in subdivision (b) of this Article, in which case the parties shall negotiate in good faith 

279 appropriate modification(s) to be included in any successive interim renewal contracts. Said 

280 modification(s) of each successive interim renewal contract shall be agreed upon within a reasonable 

281 time prior to the expiration of the then existing interim renewal contract. Nothing in this Article shall 

282 in any way alter the obligation that, upon final completion of the PEIS and any necessary 
12

283 supplemental environmental documentation, the Secretary shall, pursuant to Federal Reclamation 

284 law, upon request of the Contractor, enter into a long-term renewal contract for a period of twenty285 five (25) Years and may thereafter renew such long-term renewal contracts for successive periods not 

286 to exceed twenty-five (25) Years each. M&I Interims forty (40)The Contractor asserts that Contract 

287 No. 14-06-200-______and existing law go beyond the preceding sentence to give it enforceable 

288 rights to successive long-term renewal contracts. The Contracting Officer disagrees with that 

289 assertion. The parties agree that this Interim Renewal Contract preserves the rights and positions of 

290 the parties and that the omission of language in this interim renewal contract setting out the rights 

291 asserted by the Contractor to successive renewals is not intended to be, nor shall it be interpreted as, a 

292 waiver of any such rights to the extent any such rights are later determined to exist by a court of 

293 competent jurisdiction or by mutual agreement of the parties. If a court of competent jurisdiction or 

294 the parties by mutual agreement determine that incorporation of such language in this interim 

295 renewal contract is necessary to preserve such rights, this interim renewal contract shall be construed 

296 as incorporating such language as though fully set forth herein as of the effective date hereof.

297 (b) The parties anticipate that they will engaged in good faith negotiations 

298 intended to permit the execution of a twenty-five (25) Year long-term renewal contract contemplated 

299 by Section 3404 (c) of the CVPIA, hereinafter referred to as a Along-term renewal contract@, by the 

300 end of the term hereof. The parties recognize the possibility that this schedule may not be met. 

301 Accordingly: M& I Interims forty (40) 

302 (1) In the event (i) the Contractor and Contracting Officer have reached 

303 agreement on the terms of the Contractor=s long-term renewal contract or (ii) the Contractor and 

304 Contracting Officer have not completed the negotiations on the Contractor=s long-term renewal 
13

305 contract, believe that further negotiations on that contract would be beneficial, and mutually commit 

306 to continue to negotiate to seek to reach agreement, but (iii) all environmental documentation 

307 required to allow execution of the Contractor=s long-term renewal contract by both parties has not 

308 been completed in time to allow execution of the Contractor=s long-term renewal contract by 

309 __________200__, then (iv), the parties will expeditiously complete the environmental 

310 documentation required of each of them in order to execute the Contractor=s long-term renewal 

311 contract at the earliest practicable date. In addition, the Contractor=s then current interim renewal 

312 contract will be renewed without change upon the request of either party through the agreed-upon 

313 effective date of the Contractor=s long-term renewal contract or, in the absence of agreement on the 

314 terms of the Contractor=s long-term renewal contract, through the succeeding February 28. 

315 (2) Provided that this interim renewal contract is not subject to renewal 

316 under the terms described in subdivision (1) of this Article, if a party determines that the parties have 

317 reached an impasse which they have been unable to resolve and which precludes agreement on the 

318 long-term renewal contract, that party may notify the other that it has concluded that there is no 

319 reasonable likelihood of reaching agreement on the terms of a long-term renewal contract prior to 

320 _______200_. In the event of such notice, the parties will immediately agree to a schedule and 

321 process for negotiating the terms (other than any terms that would impair continuity of water supply 

322 or continuity of contract) of and executing an interim renewal contract; provided that neither party 

323 will propose for inclusion in the interim renewal contract any provision not previously included in an 

324 existing interim renewal contract which it had previously proposed for inclusion in the long-term 

325 renewal contract and which was the subject of an impasse in the long-term renewal contract 

326 negotiations. The schedule will provide for completion of the negotiations of the terms of that 
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327 contract by _____ 200_, and for execution of the contract on or about _____ 200_. The parties each 

328 acknowledge the right of either party to seek judicial relief in connection with any impasse reached in

329 connection with negotiation of the long-term renewal contract and/or an interim renewal contract that 

330 would become effective on or after _____200__.

331 (c) The parties acknowledge that the Contractor asserts that it is entitled as a 

332 matter of law to an Interim Renewal Contract of longer duration than twelve (12) months, and that 

333 the Contracting Officer asserts that it is under no obligation to provide the Contractor with an interim 

334 renewal contract of any particular duration. Accordingly, the parties further acknowledge that (i) the 

335 foregoing process represents a mutual accommodation to facilitate their joint desire to proceed with 

336 the development of executing a long-term renewal contract in an expeditious and orderly manner, (ii) 

337 they each preserve their respective rights and positions relative to the entitlement of the Contractor to 

338 subsequent interim renewal contracts should they become necessary, and the terms thereof, and (iii) 

339 their agreement to the process and interim renewal contract terms described above is in no way 

340 intended to be, nor will it be interpreted as, a waiver of any such rights or positions, all of which are 

341 and will be expressly preserved.

342 (c) The omission of language in this Interim Renewal Contract providing for 

343 conversion of this interim renewal contract or any subsequent renewals thereof to a repayment 

344 contract, pursuant to the Act of July 2, 1956 (70 Stat. 483), shall not prejudice the Contractor's right 

345 to assert a right to have such language included in subsequent renewals of this Interim Renewal 

346 Contract or to exercise such conversion, all as provided by law, or to negotiate the language 

347 regarding such conversion to be included in subsequent renewal contracts. 
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348 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

350 licenses, Federal law, and subject to the provisions set forth in Articles 11 and 12 of this Interim 

351 Renewal Contract, the Contracting Officer shall make available for delivery to the Contractor _____

352 acre-feet of Project Water for irrigation and M&I purposes. Provided, however, during the two (2) 

353 month period of January and February of Year, 200_ , the Contracting Officer shall make available 

354 for delivery to the Contractor that allocation of Project Water for irrigation and M&I purposes during 

355 those two (2) months for use by the Contractor. Water Delivered to the Contractor in accordance with 

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

357 Interim Renewal Contract. M&I Interims reference M&I uses only

358 3. (a.1) OMITTED – CONTRACTOR SPECIFIC WWD 

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

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

361 hydrologic conditions and implementation of Federal and State laws, the likelihood of the Contractor 

362 actually receiving the amount of Project Water set out in subdivision (a) of this Article in any given 

363 Year is uncertain. The Contracting Officer’s modeling referenced in the PEIS projected that the 

364 Contract Total set forth in this Interim Renewal Contract will not be available to the Contractor in 

365 many years. During the most recent five years, the Recent Historic Average of Water Made 

366 Available to the Contractor was _____ acre-feet. Nothing in this subdivision (b) of this Article shall 

367 affect the rights and obligations of the parties under any provision of this Interim Renewal Contract. 

 368 

369 (c) The Contractor shall utilize the Project Water in accordance with all applicable 
16

370 legal requirements. 

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

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

373 Contracting Officer shall make Project Water available at a point or points of delivery in or north of 

374 the Delta, at the request of the Contractor and upon completion of any required environmental 

375 documentation, this Contract shall be amended to provide for deliveries in or north of the Delta on 

376 mutually agreeable terms. Such amendments to the Contract shall be limited solely to those changes 

377 made necessary by the addition of such alternate points of delivery in or north of the Delta; Provided,

378 That the Contracting Officer’s use of the Harvey O. Banks Pumping Plant to deliver Project Water 

379 does not trigger this right of amendment. 

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

381 pursuant to this Interim Renewal Contract. Groundwater recharge programs (direct, indirect, or in 

382 lieu), groundwater banking programs, surface water storage programs, and other similar programs 

383 utilizing Project Water or other water furnished pursuant to this Interim Renewal Contract conducted 

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

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

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

387 Article 26 of this Interim Renewal Contract; Provided, further, That such water conservation plan 

388 demonstrates sufficient lawful uses exist in the Contractor’s Service Area so that using a long-term 

389 average, the quantity of Delivered Water is demonstrated to be reasonable for such uses and in 

390 compliance with Federal Reclamation law. Groundwater recharge programs, groundwater banking 

391 programs, surface water storage programs, and other similar programs utilizing Project Water or 
17

392 other water furnished pursuant to this Interim Renewal Contract conducted outside the Contractor’s 

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

394 be based upon environmental documentation, Project Water rights, and Project operational concerns. 

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

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

397 biological opinion(s) prepared as a result of a consultation regarding the execution of this Interim 

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

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

400 evidences in excess of ___ years of diversions for irrigation and/or M&I purposes of the quantities of 

401 Project Water provided in subdivision (a) of Article 3 of this Interim Renewal Contract, will be 

402 considered in developing an appropriate baseline for the biological assessment(s) prepared pursuant 

403 to the ESA, and any other needed environmental review. Nothing herein shall be construed to 

404 prevent the Contractor from challenging or seeking judicial relief in a court of competent jurisdiction 

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

Article. 406 

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

408 Interim Renewal Contract, the Contracting Officer will make a determination whether Project Water, 

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

410 Contract Total under this Article during the Year without adversely impacting other Project 

411 Contractors. At the request of the Contractor, the Contracting Officer will consult with the 

412 Contractor prior to making such a determination. If the Contracting Officer determines that Project 

413 Water, or other water available to the Project, can be made available to the Contractor, the 
18

414 Contracting Officer will announce the availability of such water and shall so notify the Contractor as 

415 soon as practical. The Contracting Officer will thereafter meet with the Contractor and other Project 

416 Contractors capable of taking such water to determine the most equitable and efficient allocation of 

417 such water. If the Contractor requests the delivery of any quantity of such water, the Contracting 

418 Officer shall make such water available to the Contractor in accordance with applicable statutes, 

419 regulations, guidelines, and policies. Subject to existing long-term contractual commitments, water 

420 rights and operational constraints, long-term Project Contractors shall have a first right to acquire 

421 such water, including Project Water made available pursuant to Section 215 of the RRA. 

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

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

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

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

426 during the subsequent Year referred to as “preuse.” The Contracting Officer’s written approval may 

427 permit such uses in accordance with applicable statutes, regulations, guidelines, and policies. 

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

429 State law to the reasonable and beneficial use of Water Delivered pursuant to this Interim Renewal 

430 Contract during the term thereof and any subsequent renewal interim contracts, as described in 

431 Article 2 of this Interim Renewal Contract, during the terms thereof shall not be disturbed so long as 

432 the Contractor shall fulfill all of its obligations under this Interim Renewal Contract and any renewals 

433 thereof. Nothing in the preceding sentence shall affect the Contracting Officer’s ability to impose 

434 shortages under Article 11 or subdivision (b) of Article 12 of this Interim Renewal Contract or 

435 applicable provisions of any subsequent interim renewal contracts. 
19

436 (i) Project Water furnished to the Contractor pursuant to this Interim Renewal 

437 Contract may be delivered for purposes other than those described in subdivisions (m) and (o) of 

438 Article 1 of this Interim Renewal Contract upon written approval by the Contracting Officer in 

439 accordance with the terms and conditions of such approval. 

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

441 rights necessary for the Project and to provide the water available under this Interim Renewal 

442 Contract. The Contracting Officer shall not object to participation by the Contractor, in the capacity 

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

444 Provided, that the Contracting Officer retains the right to object to the substance of the Contractor’s 

445 position in such a proceeding; Provided, further, That in such proceedings the Contracting Officer 

446 shall recognize the Contractor has a legal right under the terms of this Interim Renewal Contract to 

447 use Project Water. 

448 TIME FOR DELIVERY OF WATER

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

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

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

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

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

454 Available will be made. The Contracting Officer shall provide forecasts of Project operations and the 

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

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

457 shall provide the Contractor with the updated Recent Historic Average.
20

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

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

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

461 Contractor pursuant to this Interim Renewal Contract for the Year commencing on such March 1. 

462 The Contracting Officer shall use all reasonable means to deliver Project Water according to the 

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

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

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

466 Service Area or to sell, transfer, or exchange pursuant to Article 9 of this Interim Renewal Contract

467 during any Year. 

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

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

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

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

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

473 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

475 Renewal Contract shall be delivered to the Contractor at Project facilities and any additional point or 

476 points of delivery either on Project facilities or another location or locations mutually agreed to in 

477 writing by the Contracting Officer and the Contractor. 

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

479 agreements(s) with the Operating Non-Federal Entity(ies), shall make all reasonable efforts to 
21

480 maintain sufficient flows and levels of water in the Project facilities to deliver Project Water to the 

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

482 (c) The Contractor shall deliver Irrigation Water in accordance with any 

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

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

485 approved in advance by the Contracting Officer. 

486 (d) All Water Delivered to the Contractor pursuant to this Interim Renewal 

487 Contract shall be measured and recorded with equipment furnished, installed, operated, and 

488 maintained by the Contracting Officer either directly or indirectly through its written agreements(s) 

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

490 the Contracting Officer at the point or points of delivery established pursuant to subdivision (a) of 

491 this Article. Upon the request of either party to this Interim Renewal Contract, the Contracting 

492 Officer shall investigate, or cause to be investigated by the appropriate Operating Non-Federal 

493 Entity(ies) the accuracy of such measurements and shall take any necessary steps to adjust any errors 

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

495 Contracting Officer shall consult with the Contractor and the appropriate Operating Non-Federal 

496 Entity(ies), if any, prior to making a final determination of the quantity delivered for that period of 

497 time. 

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

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

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

501 Interim Renewal Contract beyond the point or points of delivery established pursuant to subdivision 
22

502 (a) of this Article. The Contractor shall indemnify the United States, its officers, employees, agents, 

503 and assigns on account of damage or claim of damage of any nature whatsoever for which there is 

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

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

506 such point or points of delivery except for any damage or claim arising out of: (i) acts or omissions 

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

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

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

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

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

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

513 Operating Non-Federal Entity(ies); or (v) failure of the United States, its officers, employees, agents, 

514 and assigns, including the Operating Non-Federal Entity(ies), to provide drainage service. OMIT (v) 

515 FROM M&I Interims

516 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

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

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

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

522 the Contracting Officer. The Contractor shall be responsible for installing, operating, maintaining, 

523 and repairing all such measuring devices and implementing all such water measuring methods at no 
23

524 cost to the United States. The Contractor shall use the information obtained from such water 

525 measuring devices or water measuring methods to ensure its proper management of the water; to bill 

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

527 M&I purposes by customer class as defined in the Contractor’s water conservation plan provided for 

528 in Article 26 of this Interim Renewal Contract. Nothing herein contained, however, shall preclude 

529 the Contractor from establishing and collecting any charges, assessments, or other revenues 

530 authorized by California law. The Contractor shall include a summary of all its annual surface water 

531 deliveries in the annual report described in subdivision (c) of Article 26 of this Interim Renewal 

532 Contract. M&I Interims reference M&I connections only

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

534 of this Interim Renewal Contract, the Contractor shall provide to the Contracting Officer a written 

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

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

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

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

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

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

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

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

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

544 Officer notifies the Contractor that the measuring devices or methods are inadequate, the parties shall 

545 within 60 days following the Contracting Officer’s response, negotiate in good faith the earliest 
24

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

547 methods as required by the Contracting Officer to ensure compliance with subdivision (a) of this 

548 Article. M&I Interims reference M&I connections only

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

550 Service Area after the effective date of this Interim Renewal Contract shall also comply with the 

551 measurement provisions described in subdivision (a) of this Article. 

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

553 in writing by April 30 of each Year of the monthly volume of surface water delivered within the 

554 Contractor’s Service Area during the previous Year. 

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

Non-Federal Entity(ies) on or before the 20th 556 calendar day of each month of the quantity of Irrigation 

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

558 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

562 then-existing ratesetting policy for M&I Water. Such ratesetting policies shall be amended, 

563 modified, or superseded only through a public notice and comment procedure; (ii) applicable Federal 

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

565 provisions of this Interim Renewal Contract. Payments shall be made by cash transaction, electronic 

566 funds transfer, or any other mechanism as may be agreed to in writing by the Contractor and the 

567 Contracting Officer. The Rates and Charges, and Tiered Pricing Component applicable to the 
25

568 Contractor upon execution of this Interim Renewal Contract are set forth in Exhibit “B,” as may be 

569 revised annually. M&I Interims reference only the then-existing ratesetting policy for M&I Water

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

571 and Tiered Pricing Component as follows: 

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

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

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

575 the basis for such estimate. The Contractor shall be allowed not less than two months to review and 

576 comment on such estimates. On or before September 15 of each Calendar Year, the Contracting 

577 Officer shall notify the Contractor in writing of the Charges to be in effect during the period 

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

579 such notification shall revise Exhibit “B.” 

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

581 make available to the Contractor an estimate of the Rates and Tiered Pricing Component for Project 

582 Water for the following Year and the computations and cost allocations upon which those Rates are 

583 based. The Contractor shall be allowed not less than two months to review and comment on such 

584 computations and cost allocations. By December 31 of each Calendar Year, the Contracting Officer 

585 shall provide the Contractor with the final Rates and Tiered Pricing Component to be in effect for the 

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

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

588 Project Water for each Year pursuant to subdivision (b) of Article 4 of this Interim Renewal Contract, 

589 the Contractor shall make an advance payment to the United States equal to the total amount payable 
26

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

591 scheduled to be delivered pursuant to this Interim Renewal Contract during the first two calendar 

592 months of the Year. Before the end of the first month and before the end of each calendar month 

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

594 under subdivision (a) of this Article, for the Water Scheduled to be delivered pursuant to this Interim 

595 Renewal Contract during the second month immediately following. Adjustments between advance 

596 payments for Water Scheduled and payments at Rates due for Water Delivered shall be made before 

597 the end of the following month; Provided, That any revised schedule submitted by the Contractor 

598 pursuant to Article 4 of this Interim Renewal Contract which increases the amount of Water 

599 Delivered pursuant to this Interim Renewal Contract during any month shall be accompanied with 

600 appropriate advance payment, at the Rates then in effect, to assure that Project Water is not delivered 

601 to the Contractor in advance of such payment. In any month in which the quantity of Water 

602 Delivered to the Contractor pursuant to this Interim Renewal Contract equals the quantity of Water 

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

604 Contractor unless and until an advance payment at the Rates then in effect for such additional Project 

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

606 payments for the quantities of Water Delivered during each Year pursuant to this Interim Renewal 

607 Contract shall be made as soon as practicable but no later than April 30th of the following Year, or 

608 60 days after the delivery of Project Water rescheduled under subdivision (g) of Article 3 of this

609 Interim Renewal Contract if such water is not delivered by the last day of February.

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

611 subdivision (c) of this Article to the United States for Water Delivered, at the Charges and the 
27

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

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

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

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

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

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

618 a bill for the payment of Charges and the applicable Tiered Pricing Component for Water Delivered. 

619 Adjustment for overpayment or underpayment of Charges shall be made through the adjustment of 

620 payments due to the United States for Charges for the next month. Any amount to be paid for past 

621 due payment of Charges and the Tiered Pricing Component shall be computed pursuant to Article 20 

622 of this Interim Renewal Contract. M&I Interims reference only M&I Water

623 (e) The Contractor shall pay for any Water Delivered under subdivision (a), (f), or 

624 (g) of Article 3 of this Interim Renewal Contract as determined by the Contracting Officer pursuant 

625 to applicable statutes, associated regulations, any applicable provisions of guidelines or ratesetting 

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

627 Interim Renewal Contract shall be no more than the otherwise applicable Rate for Irrigation Water or 

628 M&I Water under subdivision (a) of this Article. M&I Interims reference only M&I Water

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

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

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

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

633 allocated and applied in accordance with Federal Reclamation law and the associated rules or 
28

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

635 Interims reference only M&I Water

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

637 of the financial terms and conditions of its long-term contracts, in accordance with applicable Federal 

638 standards, so as to reflect the application of Project costs and revenues. The Contracting Officer 

639 shall, each Year upon request of the Contractor, provide to the Contractor a detailed accounting of all 

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

641 and a summary of all water delivery information. The Contracting Officer and the Contractor shall 

642 enter into good faith negotiations to resolve any discrepancies or disputes relating to accountings, 

643 reports, or information. 

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

645 Interim Renewal Contract is their mutual goal. Recognizing that experience has demonstrated that 

646 mechanisms, policies, and procedures used for establishing Rates and Charges, and the Tiered 

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

648 Article may be in the mutual best interest of the parties, it is expressly agreed that the parties may 

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

650 while this Interim Renewal Contract is in effect without amending this Interim Renewal Contract. 

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

652 80 percent of the Contract Total, then before the end of the month following the month of delivery 

653 the Contractor shall make an additional payment to the United States equal to the applicable Tiered 

654 Pricing Component. The Tiered Pricing Component for the amount of Water Delivered in excess of 

655 80 percent of the Contract Total, but less than or equal to 90 percent of the Contract Total, shall equal 
29

656 one-half of the difference between the Rate established under subdivision (a) of this Article and the 

657 Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, whichever is applicable. The Tiered 

658 Pricing Component for the amount of Water Delivered which exceeds 90 percent of the Contract 

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

660 and (ii) the Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, whichever is applicable. 

661 For all Water Delivered pursuant to subdivision (a) of Article 3 of this Interim Renewal Contract 

662 which is in excess of 80 percent of the Contract Total, this increment shall be deemed to be divided 

663 between Irrigation Water and M&I Water in the same proportion as actual deliveries of each bear to 

664 the cumulative total Water Delivered. Solely for the purpose of calculating the Tiered Pricing 

665 Component, the Full Cost Rate shall not include the interest component of the Contractor's water 

666 distribution system constructed by the United States and covered by Repayment Contract No. ______

667 entered into pursuant to 43 USC 485h(d).

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

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

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

671 quantifiable habitat values for waterfowl in fields where the water is used and the crops are produced; 

672 Provided, That the exemption from the Tiered Pricing Component for Irrigation Water shall apply 

673 only if such habitat values can be assured consistent with the purposes of the CVPIA through binding 

674 agreements executed with or approved by the Contracting Officer prior to use of such water.

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

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

677 transfers to others but shall not include Project Water transferred to the Contractor, nor shall it 
30

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

679 Article 3 of this Contract. 

680 (k) For the term of this Interim Renewal Contract, Rates applied under the 

681 respective ratesetting policies will be established to recover only reimbursable O&M (including any 

682 deficits) and capital costs of the Project, as those terms are used in the then-current Project ratesetting 

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

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

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

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

687 impact of the proposed change. 

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

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

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

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

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

693 because of inability to pay and is transferring Project Water to another entity whose Rates and 

694 Charges are not adjusted due to inability to pay, the Rates and Charges for transferred Project Water 

695 shall not be adjusted to reflect the Contractor’s inability to pay. (l) Applicable only for Irrigation and 

696 M&I Interims 

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

698 the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates adjusted 

699 upward or downward to reflect the changed costs of delivery (if any) of the transferred Project Water 
31

700 to the transferee’s point of delivery in accordance with the then applicable CVP Ratesetting Policy. 

701 (l) Applicable only to M&I Interims

702 (m) Pursuant to the Act of October 27, 1986 (100 Stat. 050), the Contracting 

703 Officer is authorized to adjust determinations of ability to pay every five years. (m) Applicable only 

704 for Irrigation and M&I Interims 

705 (n) Applicable only to M&I - Will Omit from M&I Interims 

706 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

708 Interim Renewal Contract, the Contractor has no non-interest bearing O&M deficits and shall have 

709 no further liability therefore. Omitted from M&I Interims

710 SALES, TRANSFERS, OR EXCHANGES OF WATER

711 9. (a) The right to receive Project Water provided for in this Interim Renewal 

712 Contract may be sold, transferred, or exchanged to others for reasonable and beneficial uses within 

713 the State of California if such sale, transfer, or exchange is authorized by applicable Federal and State 

714 laws, and applicable guidelines or regulations then in effect. No sale, transfer, or exchange of Project 

715 Water under this Interim Renewal Contract may take place without the prior written approval of the 

716 Contracting Officer, except as provided for in subdivision (b) of this Article, and no such sales, 

717 transfers, or exchanges shall be approved absent all appropriate environmental documentation, 

718 including, but not limited to, documents prepared pursuant to the NEPA and ESA. Such 

719 environmental documentation should include, as appropriate, an analysis of groundwater impacts and 

720 economic and social effects, including environmental justice, of the proposed water transfers on both 

721 the transferor and transferee. 
32

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

723 the type historically carried out among Project Contractors located within the same geographical area 

724 and to allow the Contractor to participate in an accelerated water transfer program during the term of 

725 this Interim Renewal Contract, the Contracting Officer shall prepare, as appropriate, all necessary 

726 environmental documentation, including, but not limited to, documents prepared pursuant to the 

727 NEPA and ESA, analyzing annual transfers within such geographical areas and the Contracting 

728 Officer shall determine whether such transfers comply with applicable law. Following the 

729 completion of the environmental documentation, such transfers addressed in such documentation 

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

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

732 Officer’s compliance determination shall be reviewed every five years and updated, as necessary, 

733 prior to the expiration of the then existing five-year period. All subsequent environmental 

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

735 historically transferred within the same geographical area. 

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

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

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

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

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

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

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

743 Contractors and/or the Contractor and the United States, Department of the Interior; and (v) comply 
33

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

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

746 APPLICATION OF PAYMENTS AND ADJUSTMENTS

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

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

749 the Contractor arising out of this Interim Renewal Contract then due and payable. Overpayments of 

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

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

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

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

754 of any of the Project Water supply provided for herein. All credits and refunds of overpayments shall 

755 be made within 30 days of the Contracting Officer obtaining direction as to how to credit or refund 

756 such overpayment in response to the notice to the Contractor that it has finalized the accounts for the 

757 Year in which the overpayment was made. 

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

759 Contractor pursuant to Article 25 of this Interim Renewal Contract shall be adjusted to reflect the 

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

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

762 the Contractor will be billed for the additional costs pursuant to Article 25 of this Interim Renewal 

763 Contract. 

764 TEMPORARY REDUCTIONS--RETURN FLOWS

765 11. (a) Subject to: (i) the authorized purposes and priorities of the Project and the 
34

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

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

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

769 Interim Renewal Contract. 

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

771 discontinue or reduce the quantity of Water Delivered to the Contractor as herein provided for the 

772 purposes of investigation, inspection, maintenance, repair, or replacement of any of the Project 

773 facilities or any part thereof necessary for the delivery of Project Water to the Contractor, but so far 

774 as feasible the Contracting Officer or Operating Non-Federal Entity(ies) will give the Contractor due 

775 notice in advance of such temporary discontinuance or reduction, except in case of emergency, in 

776 which case no notice need be given; Provided, That the United States shall use its best efforts to 

777 avoid any discontinuance or reduction in such service. Upon resumption of service after such 

778 reduction or discontinuance, and if requested by the Contractor, the United States will, if possible, 

779 deliver the quantity of Project Water which would have been delivered hereunder in the absence of 

780 such discontinuance or reduction. 

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

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

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

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

785 Interim Renewal Contract within the Contractor’s Service Area by the Contractor or those claiming 

786 by, through, or under the Contractor. 
35

787 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

790 Contractor pursuant to this Interim Renewal Contract. In the event the Contracting Officer 

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

792 Contractor of said determination as soon as practicable. 

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

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

795 taken by the Contracting Officer to meet legal obligations then, except as provided in subdivision (a) 

796 of Article 18 of this Interim Renewal Contract, no liability shall accrue against the United States or 

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

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

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

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

801 Project M&I Water Shortage Policy in its form on the effective date of this Interim Renewal Contract

802 for determining the amount of Project Water available for delivery to the Project Contractors. 

803 Subject to the foregoing allocation, in any year in which there may occur a Condition of Shortage, the 

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

805 Project Water from Delta Division Facilities under long-term water service or repayment contracts 

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

807 Subarticle (c) of this Article Omitted from M&I Interims

808 (1) The Contracting Officer shall make an initial and subsequent 
36

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

810 scheduled under subdivision (b) of Article 4 of this Interim Renewal Contract and under all other 

811 long-term water service or repayment contracts then in force for the delivery of Project Water by the 

812 United States from Delta Division Facilities during the relevant Year, the quantity so determined 

813 being hereinafter referred to as the scheduled total; 

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

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

816 to as the available supply; 

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

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

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

820 as the Contractor’s proportionate share; and 

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

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

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

824 Contracting Officer under subdivision (c)(1) of this Article 12, but in no event shall such amount 

825 exceed the Contract Total. In the event the Contracting Officer subsequently determines that the 

826 Contracting Officer can increase or needs to decrease the available supply for delivery from Delta 

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

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

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

830 (d) By entering into this Interim Renewal Contract, the Contractor does not waive 
37

831 any legal rights or remedies it may have to file or participate in any administrative or judicial 

832 proceeding contesting (i) the sufficiency of the Central Valley Project M&I Water Shortage Policy; 

833 (ii) the substance of such a policy; (iii) the applicability of such a policy; or (iv) the manner in which 

834 such policy is implemented in order to allocate Project Water between municipal and industrial and 

835 irrigation purposes; Provided, That the Contractor has commenced any such judicial challenge or any 

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

837 becoming final. By agreeing to the foregoing, the Contracting Officer does not waive any legal 

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

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

840 Applicable (Irrigation & M&I Interims)

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

842 with the then-existing Central Valley Project M&I Water Shortage Policy. Such policy shall be 

843 amended, modified, or superseded only through a public notice and comment procedure. Applicable 

844 to M&I Interims 

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

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

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

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

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

850 purposes; Provided, That the Contractor has commenced any such judicial challenge or any 

851 administrative procedures necessary to institute any judicial challenge within 6 months of the policy 

852 becoming final. By agreeing to the foregoing, the Contracting Officer does not waive any legal 
38

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

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

855 Subarticle (e) of this Article applicable to M&I Interims only

856 UNAVOIDABLE GROUNDWATER PERCOLATION

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

858 Irrigation Water to Excess Lands or Ineligible Lands within the meaning of this Interim Renewal 

859 Contract if such lands are irrigated with groundwater that reaches the underground strata as an 

860 unavoidable result of the delivery of Irrigation Water by the Contractor to Eligible Lands. Omitted 

861 from M&I Interims

862 RULES AND REGULATIONS

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

864 pursuant to this Interim Renewal Contract is subject to Federal Reclamation law, including but not 

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

866 supplemented, and the rules and regulations promulgated by the Secretary of the Interior under 

867 Federal Reclamation law. 

868 WATER AND AIR POLLUTION CONTROL

869 15. The Contractor, in carrying out this Interim Renewal Contract, shall comply with all 

870 applicable water and air pollution laws and regulations of the United States and the State of 

871 California, and shall obtain all required permits or licenses from the appropriate Federal, State, or 

872 local authorities. 

873 QUALITY OF WATER

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

875 this Interim Renewal Contract shall be operated and maintained to enable the United States to deliver 

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

877 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of October 27, 

878 1986 (100 Stat. 3050) or other existing Federal laws. The United States is under no obligation to 
39

879 construct or furnish water treatment facilities to maintain or to improve the quality of Water 

880 Delivered to the Contractor pursuant to this Interim Renewal Contract. The United States does not 

881 warrant the quality of Water Delivered to the Contractor pursuant to this Interim Renewal Contract. 

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

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

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

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

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

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

888 (c) The Contracting Officer shall notify the Contractor in writing when drainage 

889 service becomes available. Thereafter, the Contracting Officer shall provide drainage service to the 

890 Contractor at rates established pursuant to the then-existing ratesetting policy for Irrigation Water; 

891 Provided, That such ratesetting policy shall be amended, modified, or superseded only through the 

892 process described in subdivision (a) of Article 7 of this Interim Renewal Contract. Omit Subarticle 

893 (c) of the Article from M&I Interims 

894 WATER ACQUIRED BY THE CONTRACTOR

895 OTHER THAN FROM THE UNITED STATES

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

897 than from the United States and Irrigation Water furnished pursuant to the terms of this Interim 

898 Renewal Contract may be simultaneously transported through the same distribution facilities of the 

899 Contractor subject to the following: (i) if the facilities utilized for commingling Irrigation Water and 

900 non-Project water were constructed without funds made available pursuant to Federal Reclamation 

901 law, the provisions of Federal Reclamation law will be applicable only to the Landholders of lands 
40

902 which receive Irrigation Water; (ii) the eligibility of land to receive Irrigation Water must be 

903 established through the certification requirements as specified in the Acreage Limitation Rules and 

904 Regulations (43 CFR Part 426); (iii) the water requirements of Eligible Lands within the Contractor's 

905 Service Area can be established and the quantity of Irrigation Water to be utilized is less than or 

906 equal to the quantity necessary to irrigate such Eligible Lands; and (iv) if the facilities utilized for 

907 commingling Irrigation Water and non-Project water are/were constructed with funds made available 

908 pursuant to Federal Reclamation law, the non-Project water will be subject to the acreage limitation 

909 provisions of Federal Reclamation law, unless the Contractor pays to the United States the 

910 incremental fee described in 43 CFR 426.15. In determining the incremental fee, the Contracting 

911 Officer will calculate annually the cost to the Federal Government, including interest, of storing or 

912 delivering non-Project water, which for purposes of this Interim Renewal Contract shall be 

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

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

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

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

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

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

919 continue during the term of this Interim Renewal Contract absent the promulgation of a contrary 

920 Reclamation-wide rule, regulation, or policy adopted after the Contractor has been afforded the 

921 opportunity to review and comment on the proposed rule, regulation, or policy. If such rule, 

922 regulation, or policy is adopted it shall supersede this provision. Subarticle (a) of this Article Omitted 

923 from M&I Interims 
41

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

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

926 subject to the completion of appropriate environmental documentation, with the approval of the 

927 Contracting Officer and the execution of any contract determined by the Contracting Officer to be 

928 necessary, consistent with the following provisions:

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

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

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

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

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

934 superseded from time to time. 

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

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

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

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

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

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

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

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

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

944 respective officers, agents, and employees, from any claim for damage to persons or property, direct 

945 or indirect, resulting from the act(s) of the Contractor, its officers, employees, agents, or assigns, in 
42

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

947 into Project facilities. 

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

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

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

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

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

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

954 by the Contracting Officer for conveyance and transportation of non-Project water prior to any such 

955 remaining capacity being made available to non-Project contractors. Other Project Contractors shall 

956 have a second priority to any remaining capacity of facilities declared to be available by the 

957 Contracting Officer for conveyance and transportation of non-Project water prior to any such 

958 remaining capacity being made available to non-Project contractors. 

959 OPINIONS AND DETERMINATIONS

960 18. (a) Where the terms of this Interim Renewal Contract provide for actions to be 

961 based upon the opinion or determination of either party to this Interim Renewal Contract, said terms 

962 shall not be construed as permitting such action to be predicated upon arbitrary, capricious, or 

963 unreasonable opinions or determinations. Both parties, notwithstanding any other provisions of this 

964 Interim Renewal Contract, expressly reserve the right to seek relief from and appropriate adjustment 

965 for any such arbitrary, capricious, or unreasonable opinion or determination. Each opinion or 

966 determination by either party shall be provided in a timely manner. Nothing in this subdivision (a) of 

967 this Article is intended to or shall affect or alter the standard of judicial review applicable under 
43

968 Federal law to any opinion or determination implementing a specific provision of Federal law 

969 embodied in statute or regulation. 

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

971 to administer this Interim Renewal Contract that are consistent with the provisions of this Interim 

972 Renewal Contract, the laws of the United States and of the State of California, and the rules and 

973 regulations promulgated by the Secretary of the Interior. Such determinations shall be made in 

974 consultation with the Contractor to the extent reasonably practicable. 

975 

976 COORDINATION AND COOPERATION

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

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

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

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

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

982 Water supply, the allocation of Project Water supply, and Project financial matters including, but not 

983 limited to, budget issues. The communication, coordination, and cooperation provided for hereunder 

984 shall extend to all provisions of this Interim Renewal Contract. Each party shall retain exclusive 

985 decision making authority for all actions, opinions, and determinations to be made by the respective 

986 party. 

987 (b) Within 120 days following the effective date of this Interim Renewal Contract, 

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

989 with interested Project Contractors to develop a mutually agreeable, written Project-wide process, 
44

990 which may be amended as necessary separate and apart from this Interim Renewal Contract. The 

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

992 and interaction regarding significant decisions concerning Project operation and management on a 

993 real-time basis. 

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

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

996 this intent: 

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

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

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

1000 improve water supply, water quality, and reliability. 

1001 (2) The Secretary will, as appropriate, pursue program and project 

1002 implementation and authorization in coordination with Project Contractors to improve the water 

1003 supply, water quality, and reliability of the Project for all Project purposes. 

1004 (3) The Secretary will coordinate with Project Contractors and the State of 

1005 California to seek improved water resource management. 

1006 (4) The Secretary will coordinate actions of agencies within the 

1007 Department of the Interior that may impact the availability of water for Project purposes. 

1008 (5) The Contracting Officer shall periodically, but not less than annually, 

1009 hold division level meetings to discuss Project operations, division level water management 

1010 activities, and other issues as appropriate. 

1011 (d) Without limiting the contractual obligations of the Contracting Officer under 
45

1012 the other Articles of this Interim Renewal Contract, nothing in this Article shall be construed to limit 

1013 or constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 

1014 Contractor or other interested stakeholders or to make decisions in a timely fashion as needed to 

1015 protect health, safety, or the physical integrity of structures or facilities. 

1016 CHARGES FOR DELINQUENT PAYMENTS

1017 20. (a) The Contractor shall be subject to interest, administrative and penalty charges 

1018 on delinquent installments or payments. When a payment is not received by the due date, the 

1019 Contractor shall pay an interest charge for each day the payment is delinquent beyond the due date. 

1020 When a payment becomes 60 days delinquent, the Contractor shall pay an administrative charge to 

1021 cover additional costs of billing and processing the delinquent payment. When a payment is 

1022 delinquent 90 days or more, the Contractor shall pay an additional penalty charge of six percent per 

1023 year for each day the payment is delinquent beyond the due date. Further, the Contractor shall pay 

1024 any fees incurred for debt collection services associated with a delinquent payment. 

1025 (b) The interest charge rate shall be the greater of the rate prescribed quarterly in 

1026 the Federal Register by the Department of the Treasury for application to overdue payments, or the 

1027 interest rate of one-half of one percent per month prescribed by Section 6 of the Reclamation Project 

1028 Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due date and 

1029 remain fixed for the duration of the delinquent period. 

1030 (c) When a partial payment on a delinquent account is received, the amount 

1031 received shall be applied, first to the penalty, second to the administrative charges, third to the 

1032 accrued interest, and finally to the overdue payment. 

1033 EQUAL OPPORTUNITY

1034 21. During the performance of this Interim Renewal Contract, the Contractor agrees as 

1035 follows: 

1036 (a) The Contractor will not discriminate against any employee or applicant for 

1037 employment because of race, color, religion, sex, or national origin. The Contractor will take 

1038 affirmative action to ensure that applicants are employed, and that employees are treated during 

1039 employment, without regard to their race, color, religion, sex, or national origin. Such action shall 

1040 include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

1041 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

1042 compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

1043 conspicuous places, available to employees and applicants for employment, notices to be provided by 

1044 the Contracting Officer setting forth the provisions of this nondiscrimination clause. 
46

1045 (b) The Contractor will, in all solicitations or advertisements for employees placed 

1046 by or on behalf of the Contractor, state that all qualified applicants will receive consideration for 

1047 employment without discrimination because of race, color, religion, sex, or national origin. 

1048 (c) The Contractor will send to each labor union or representative of workers with 

1049 which it has a collective bargaining agreement or other contract or understanding, a notice, to be 

1050 provided by the Contracting Officer, advising the said labor union or workers' representative of the 

1051 Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and 

1052 shall post copies of the notice in conspicuous places available to employees and applicants for 

1053 employment. 

1054 (d) The Contractor will comply with all provisions of Executive Order 

1055 No. 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders of 

1056 the Secretary of Labor. 

1057 (e) The Contractor will furnish all information and reports required by said 

1058 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

1059 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting Officer 

1060 and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, 

1061 regulations, and orders. 

1062 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

1063 clauses of this Interim Renewal Contract or with any of the said rules, regulations, or orders, this 

1064 Interim Renewal Contract may be canceled, terminated, or suspended, in whole or in part, and the 

1065 Contractor may be declared ineligible for further Government contracts in accordance with 

1066 procedures authorized in said amended Executive Order, and such other sanctions may be imposed 

1067 and remedies invoked as provided in said Executive Order, or by rule, regulation, or order of the 

1068 Secretary of Labor, or as otherwise provided by law. 

1069 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

1070 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

1071 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

1072 provisions will be binding upon each subcontractor or vendor. The Contractor will take such action 

1073 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

1074 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

1075 That in the event the Contractor becomes involved in, or is threatened with, litigation with a 

1076 subcontractor or vendor as a result of such direction, the Contractor may request the United States to 

1077 enter into such litigation to protect the interests of the United States. 

1078 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

1079 22. (a) The obligation of the Contractor to pay the United States as provided in this 

1080 Interim Renewal Contract is a general obligation of the Contractor notwithstanding the manner in 

1081 which the obligation may be distributed among the Contractor's water users and notwithstanding the 

1082 default of individual water users in their obligations to the Contractor. 
47

1083 (b) The payment of charges becoming due hereunder is a condition precedent to 

1084 receiving benefits under this Interim Renewal Contract. The United States shall not make water 

1085 available to the Contractor through Project facilities during any period in which the Contractor may 

1086 be in arrears in the advance payment of water rates due the United States. The Contractor shall not 

1087 furnish water made available pursuant to this Interim Renewal Contract for lands or parties which are 

1088 in arrears in the advance payment of water rates levied or established by the Contractor. 

1089 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

1090 obligation to require advance payment for water rates which it levies. 

1091 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

1092 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 (42 

1093 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the Age 

1094 Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights laws, as 

1095 well as with their respective implementing regulations and guidelines imposed by the U.S. 

1096 Department of the Interior and/or Bureau of Reclamation. 

1097 (b) These statutes require that no person in the United States shall, on the grounds 

1098 of race, color, national origin, handicap, or age, be excluded from participation in, be denied the 

1099 benefits of, or be otherwise subjected to discrimination under any program or activity receiving 

1100 financial assistance from the Bureau of Reclamation. By executing this Interim Renewal Contract, 

1101 the Contractor agrees to immediately take any measures necessary to implement this obligation, 

1102 including permitting officials of the United States to inspect premises, programs, and documents. 

1103 (c) The Contractor makes this agreement in consideration of and for the purpose 

1104 of obtaining any and all Federal grants, loans, contracts, property discounts, or other Federal financial 

1105 assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, including 

1106 installment payments after such date on account of arrangements for Federal financial assistance 

1107 which were approved before such date. The Contractor recognizes and agrees that such Federal 

1108 assistance will be extended in reliance on the representations and agreements made in this Article, 

1109 and that the United States reserves the right to seek judicial enforcement thereof. 

1110 PRIVACY ACT COMPLIANCE

1111 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) (the 

1112 Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et seq.) in 

1113 maintaining Landholder acreage certification and reporting records, required to be submitted to the 

1114 Contractor for compliance with Sections 206 and 228 of the Reclamation Reform Act of 1982 (96 

1115 Stat. 1266), and pursuant to 43 CFR 426.18. 

1116 (b) With respect to the application and administration of the criminal penalty 

1117 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees responsible 
48

1118 for maintaining the certification and reporting records referenced in (a) above are considered to be 

1119 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

1120 (c) The Contracting Officer or a designated representative shall provide the 

1121 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau of 

1122 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

1123 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

1124 contained in the Landholder's certification and reporting records. 

1125 (d) The Contracting Officer shall designate a full-time employee of the Bureau of 

1126 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

1127 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

1128 authorized to grant requests by individuals for access to their own records. 

1129 (e) The Contractor shall forward promptly to the System Manager each proposed 

1130 denial of access under 43 CFR 2.64; and each request for amendment of records filed under 43 CFR 

1131 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

1132 information and records necessary to prepare an appropriate response to the requester. These 

1133 requirements do not apply to individuals seeking access to their own certification and reporting forms 

1134 filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the Privacy 

1135 Act as a basis for the request. Omitted M&I Interims

1136 

1137 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1138 25. In addition to all other payments to be made by the Contractor pursuant to this Interim 

1139 Renewal Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill 

1140 and detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

1141 of direct cost incurred by the United States for work requested by the Contractor associated with this 

1142 Interim Renewal Contract plus indirect costs in accordance with applicable Bureau of Reclamation 

1143 policies and procedures. All such amounts referred to in this Article shall not exceed the amount 

1144 agreed to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

1145 contract administration. 

1146 WATER CONSERVATION

1147 26. (a) Prior to the delivery of water provided from or conveyed through Federally 
49

1148 constructed or Federally financed facilities pursuant to this Interim Renewal Contract, the Contractor 

1149 shall be implementing an effective water conservation and efficiency program based on the 

1150 Contractor's water conservation plan that has been determined by the Contracting Officer to meet the 

1151 conservation and efficiency criteria for evaluating water conservation plans established under Federal 

1152 law. The water conservation and efficiency program shall contain definite water conservation 

1153 objectives, appropriate economically feasible water conservation measures, and time schedules for 

1154 meeting those objectives. Continued Project Water delivery pursuant to this Interim Renewal 

1155 Contract shall be contingent upon the Contractor’s continued implementation of such water 

1156 conservation program. In the event the Contractor's water conservation plan or any revised water 

1157 conservation plan completed pursuant to subdivision (d) of this Article 26 have not yet been 

1158 determined by the Contracting Officer to meet such criteria, due to circumstances which the 

1159 Contracting Officer determines are beyond the control of the Contractor, water deliveries shall be 

1160 made under this Interim Renewal Contract so long as the Contractor diligently works with the 

1161 Contracting Officer to obtain such determination at the earliest practicable date, and thereafter the 

1162 Contractor immediately begins implementing its water conservation and efficiency program in 

1163 accordance with the time schedules therein. 

1164 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1165 Article 3 of this Interim Renewal Contract equal or exceed 2,000 acre-feet per Year, the Contractor 

1166 shall implement the Best Management Practices identified by the time frames issued by the 

1167 California Urban Water Conservation Council for such M&I Water unless any such practice is 

1168 determined by the Contracting Officer to be inappropriate for the Contractor. 

1169 (c) The Contractor shall submit to the Contracting Officer a report on the status of 
50

1170 its implementation of the water conservation plan on the reporting dates specified in the then-existing 

1171 conservation and efficiency criteria established under Federal law. 

1172 (d) At five-year intervals, the Contractor shall revise its water conservation plan to 

1173 reflect the then-current conservation and efficiency criteria for evaluating water conservation plans 

1174 established under Federal law and submit such revised water management plan to the Contracting 

1175 Officer for review and evaluation. The Contracting Officer will then determine if the water 

1176 conservation plan meets Reclamation’s then-current conservation and efficiency criteria for 

1177 evaluating water conservation plans established under Federal law. 

1178 (e) If the Contractor is engaged in direct groundwater recharge, such activity shall 

1179 be described in the Contractor’s water conservation plan. 

1180 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1181 27. Except as specifically provided in Article 17 of this Interim Renewal Contract, the 

1182 provisions of this Interim Renewal Contract shall not be applicable to or affect non-Project water or 

1183 water rights now owned or hereafter acquired by the Contractor or any user of such water within the 

1184 Contractor's Service Area. Any such water shall not be considered Project Water under this Interim 

1185 Renewal Contract. In addition, this Interim Renewal Contract shall not be construed as limiting or 

1186 curtailing any rights which the Contractor or any water user within the Contractor's Service Area 

1187 acquires or has available under any other contract pursuant to Federal Reclamation law. 

1188 OPERATION AND MAINTENANCE BY 

1189 SAN LUIS & DELTA-MENDOTA WATER AUTHORITY

1190 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

1191 responsibility for funding a portion of the costs of such O&M, have been transferred to the San Luis 

1192 & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement (8-07-
51

1193 20-X0354) between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

1194 Water Authority. That separate agreement shall not interfere with or affect the rights or obligations 

1195 of the Contractor or the United States hereunder. 

1196 (b) The Contracting Officer has previously notified the Contractor in writing that 

1197 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

1198 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

1199 Contractor shall pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1200 Authority, or to any successor approved by the Contracting Officer under the terms and conditions of 

1201 the separate agreement between the United States and Operating Non-Federal Entity San Luis & 

1202 Delta-Mendota Water Authority, described in subdivision (a) of this Article, all rates, charges, or 

1203 assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

1204 Entity San Luis & Delta-Mendota Water Authority, or such successor determines, sets, or establishes 

1205 for the O&M of the portion of the Project facilities operated and maintained by Operating Non1206 Federal Entity San Luis & Delta-Mendota Water Authority, or such successor. Such direct payments 

1207 to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

1208 not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

1209 of the Project Rates and Charges, and Tiered Pricing Components except to the extent the Operating 

1210 Non-Federal Entity collects payments on behalf of the United States in accordance with subdivision 

1211 (a) of this Article. 

1212 (c) For so long as the O&M of any portion of the Project facilities serving the 

1213 Contractor is performed by Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1214 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 
52

1215 Rates for Water Delivered under this Interim Renewal Contract representing the cost associated with 

1216 the activity being performed by Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1217 Authority, or its successor. 

1218 (d) In the event the O&M of the Project facilities operated and maintained by 

1219 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

1220 United States during the term of this Interim Renewal Contract, the Contracting Officer shall so 

1221 notify the Contractor, in writing, and present to the Contractor a revised Exhibit “B” which shall 

1222 include the portion of the Rates to be paid by the Contractor for Project Water under this Interim 

1223 Renewal Contract representing the O&M costs of the portion of such Project facilities which have 

1224 been re-assumed. The Contractor shall, thereafter, in the absence of written notification from the 

1225 Contracting Officer to the contrary, pay the Rates and Charges, and the Tiered Pricing Component

1226 specified in the revised Exhibit “B” directly to the United States in compliance with Article 7 of this 

1227 Interim Renewal Contract. 

1228 OPERATION AND MAINTENANCE BY 

1229 CALIFORNIA DEPARTMENT OF WATER RESOURCES

1230 28.1 (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

1231 responsibility for funding a portion of the costs of such O&M, have been transferred to the California 

1232 Department of Water Resources, an Operating Non-Federal Entity by a separate agreement (14-06-

1233 200-9755) between the United States and Operating Non-Federal Entity California Department of 

1234 Water Resources. This separate agreement shall not interfere with or affect the rights or obligations 

1235 of the Contractor or the United States hereunder. 

1236 (b) The Contracting Officer has previously notified the Contractor in writing that 

1237 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 
53

1238 Operating Non-Federal Entity California Department of Water Resources, and the Contractor shall 

1239 pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or to any 

1240 successor approved by the Contracting Officer under the terms and conditions of the separate 

1241 agreement between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

1242 Water Authority, described in subdivision (a) of Article 28 of this Interim Renewal Contract, all 

1243 rates, charges, or assessments of any kind, including any assessment for reserve funds, which 

1244 Operating Non-Federal Entity California Department of Water Resources, or such successor 

1245 determines, sets, or establishes for the O&M of the portion of the Project facilities operated and 

1246 maintained by Operating Non-Federal Entity California Department of Water Resources, or such 

1247 successor. Such direct payments to Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1248 Authority, or such successor shall not relieve the Contractor of its obligation to pay directly to the 

1249 United States the Contractor’s share of the Project Rates and Charges, and Tiered Pricing 

1250 Components except to the extent the Operating Non-Federal Entity collects payments on behalf of 

1251 the United States in accordance with the separate agreement identified in subdivision (a) of Article 

1252 28 of this Interim Renewal Contract. 

1253 (c) For so long as the O&M of any portion of the Project facilities serving the 

1254 Contractor is performed by Operating Non-Federal Entity California Department of Water Resources, 

1255 or any successor thereto, the Contracting Officer shall adjust those components of the Rates for 

1256 Water Delivered under this Interim Renewal Contract representing the cost associated with the 

1257 activity being performed by Operating Non-Federal Entity California Department of Water 

1258 Resources, or its successor. 

1259 (d) In the event the O&M of the Project facilities operated and maintained by 
54

1260 Operating Non-Federal Entity California Department of Water Resources is re-assumed by the 

1261 United States during the term of this Interim Renewal Contract, the Contracting Officer shall so 

1262 notify the Contractor, in writing, and present to the Contractor a revised Exhibit “B” which shall 

1263 include the portion of the Rates and Charges, and the Tiered Pricing Component to be paid by the 

1264 Contractor for Project Water under this Interim Renewal Contract representing the O&M costs of the 

1265 portion of such Project facilities which have been re-assumed. The Contractor shall, thereafter, in the 

1266 absence of written notification from the Contracting Officer to the contrary, pay the Rates and 

1267 Charges, and Tiered Pricing Component(s) specified in the revised Exhibit “B” directly to the United 

1268 States in compliance with Article 7 of this Interim Renewal Contract. 

1269 OPERATION AND MAINTENANCE BY THE CONTRACTOR

1270 28.2 (a) CONTRACTOR SPECIFIC WWD, Huron, Coalinga 

1271 PUMPING PLANTS, POWER FOR PUMPING PLANTS, AND TRANSFER

1272 OF OPERATION AND MAINTENANCE TO THE CONTRACTOR

 

1273 28.3. (a) The United States shall furnish and install pumping plants and furnish the 

1274 amount of Project power the Contracting Officer determines is necessary to deliver Project Water to 

1275 the Contractor from the Delta-Mendota, San Luis, and Coalinga Canals, including the Pleasant 

1276 Valley Pumping Plant, at the point(s) of delivery identified pursuant to subdivision (a) of Article 5 of 

1277 this Interim Renewal Contract at heads and elevations sufficient to irrigate by gravity the areas within 

1278 the Contractor’s Service Area below 700 feet mean sea level elevation. 

1279 (b) With advance approval of the Contracting Officer, the Contractor may, at its 

1280 own expense, furnish and install pumping facilities, and related electrical equipment, to enable it to 

1281 divert and deliver Project Water from the Delta-Mendota, San Luis, and Coalinga Canals and the 

1282 Pleasant Valley Pumping Plant before the United States furnishes and installs all the pumping plants 
55

1283 referred to in subdivision (a) of this Article. The United States shall furnish the amount of Project 

1284 power needed to operate such pumping facilities; Provided, That the Contractor maintains an 

1285 agreement with an entity to convey such power to such facilities, and the Contractor agrees to pay 

1286 any and all charges assessed by that entity for such service. 

1287 (c) The furnishing of power by the United States shall be in conformance with 

1288 operating criteria, rules, and regulations, including the project use power policy, established by the 

1289 Contracting Officer; Provided, That any such operating criteria, rules, and regulations, including the 

1290 project use power policy, established by the Contracting Officer shall not excuse the United States 

1291 from its obligation under subdivision (a) of this Article. Such operating criteria, rules, and 

1292 regulations shall be developed in cooperation with the Contractor and shall be based on acceptable 

1293 irrigation management practices and the power generation capacity available to the United States for 

1294 the furnishing of Project water to the Contractor. 

1295 (d) The Contractor hereby agrees to operate and maintain, at its own expense, all 

1296 of the pumping facilities described in subdivisions (a) and (b) of this Article in such a manner that 

1297 they remain in good and efficient condition; Provided, That the United States shall finance the costs 

1298 of all major replacements that the Contracting Officer determines are needed. 

1299 (e) The Contracting Officer or his representative shall at all times have access to 

1300 and may inspect and investigate the pumping facilities for the purpose of ascertaining if they are 

1301 being kept in safe and proper operating condition. 

 (f) No change in any of the pumping facilities, which in the opinion of the 

Contracting Officer is substantial, shall be made by the Contractor without first obtaining the written 

consent of the Contracting Officer. The Contractor shall promptly make any and all repairs and 
56

replacements to the pumping facilities which in the opinion of the Contracting Officer are necessary. 

 In the event the Contractor neglects or fails to make such repairs and replacements or in the event of 

 operation by the United States of the pumping facilities pursuant to subdivision (g) of this Article, 

the United States may cause the repairs and replacements to be made and the cost thereof, as 

determined by the Contracting Officer, shall be paid by the Contractor to the United States upon 

notice of the payment due but not later than April 1 of the year following that during which such 

work was completed. 

1302 (g) In the event the Contracting Officer determines that the Contractor has not 

1303 properly cared for, operated, and maintained said pumping facilities or has failed to comply with any 

1304 of the provisions of this Article, then at the election of the Contracting Officer the United States may 

1305 take over from the Contractor the care and O&M of the pumping facilities by giving written notice to 

1306 the Contractor of such election and the effective date thereof. Thereafter, during the period of 

1307 operation by the United States, the Contractor shall pay to the United States in advance of the use of 

1308 such pumping facilities the Contractor’s share of the cost of O&M thereof and replacements 

1309 therefore, as fixed in notices from the Contracting Officer. In the event such advances are inadequate 

1310 to properly care for, operate, and maintain the pumping facilities to the end of any year, the 

1311 Contracting Officer may give written notice of a supplemental O&M charge and the Contractor shall 

1312 pay such amount on or before the date specified in said notice. Any amount of such advances 

1313 remaining unexpended or unobligated, at the option of the Contractor, either shall be refunded or 

1314 credited upon amounts to become due to the United States from the Contractor under the provisions 

1315 of this Interim Renewal Contract in subsequent years. The pumping facilities so taken back by the 

1316 United States may be returned to the Contractor upon the furnishing to the Contractor of a written 90-
57

1317 day notice of intention to retransfer. 

1318 (h) The Contractor shall hold the United States, its officers, and employees 

1319 harmless from every and all claim for damages to persons or property arising out of or connected 

1320 with the Contractor’s O&M of the pumping facilities referred to in this Article; Provided, That 

1321 nothing contained herein shall be construed as an assumption of liability by the Contractor to parties 

1322 other than the United States with respect to such matters. 

1323 (i) During the time the pumping facilities are operated and maintained by the 

1324 Contractor, in addition to all other payments to be made by the Contractor under this Interim 

1325 Renewal Contract, the Contractor shall pay to the United States pursuant to Article 25 hereof, costs 

1326 incurred by the United States for work associated with the pumping facilities under this Interim 

1327 Renewal Contract normally charged by the United States to water users and properly and equitably 

1328 chargeable to the Contractor. 

1329 (j) The Contracting Officer may make review of any part or all of the pumping 

1330 facilities being operated by the Contractor pursuant to this Article to assist the Contractor in 

1331 assessing the condition of facilities and the adequacy of the maintenance program(s). The 

1332 Contracting Officer shall prepare reports based on the examinations, inspections or audits, and 

1333 furnish copies of such reports and any recommendations to the Contractor. The Contractor shall 

1334 reimburse the actual cost 

1335 incurred by the United States in making O&M examinations, inspections, and audits, and preparing 

1336 associated reports and recommendations. 

1337 (k) If deemed necessary by the Contracting Officer or requested by the Contractor, 

1338 special inspections of the pumping facilities being operated by the Contractor and of the Contractor’s 
58

1339 books and records may be made to ascertain the extent of any O&M deficiencies, to determine the 

1340 remedial measures required for their correction, and to assist the Contractor in solving specific 

1341 problems. Any special inspection or audit shall, except in a case of emergency, be made after written 

1342 notice to the Contractor and the actual cost thereof shall be paid by the Contractor to the United 

1343 States. Article 28.3 in its entirety is omitted from M&I Interims

1344 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1345 29. The expenditure or advance of any money or the performance of any obligation of the 

1346 United States under this Interim Renewal Contract shall be contingent upon appropriation or 

1347 allotment of funds. Absence of appropriation or allotment of funds shall not relieve the Contractor 

1348 from any obligations under this Interim Renewal Contract. No liability shall accrue to the United 

1349 States in case funds are not appropriated or allotted. 

1350 BOOKS, RECORDS, AND REPORTS

1351 30. (a) The Contractor shall establish and maintain accounts and other books and 

1352 records pertaining to administration of the terms and conditions of this Interim Renewal Contract, 

1353 including: the Contractor's financial transactions, water supply data, and Project land and right-of1354 way agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

1355 data; and other matters that the Contracting Officer may require. Reports thereon shall be furnished 

1356 to the Contracting Officer in such form and on such date or dates as the Contracting Officer may 

1357 require. Subject to applicable Federal laws and regulations, each party to this Interim Renewal 

1358 Contract shall have the right during office hours to examine and make copies of the other party's 

1359 books and records relating to matters covered by this Interim Renewal Contract. 

1360 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

1361 records, or other information shall be requested from the Contractor by the Contracting Officer unless 

1362 such books, records, or information are reasonably related to the administration or performance of 

1363 this Interim Renewal Contract. Any such request shall allow the Contractor a reasonable period of 

1364 time within which to provide the requested books, records, or information. 

1365 (c) At such time as the Contractor provides information to the Contracting Officer 

1366 pursuant to subdivision (a) of this Article, a copy of such information shall be provided to the 
59

1367 Operating Non-Federal Entity. 

1368 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1369 31. (a) The provisions of this Interim Renewal Contract shall apply to and bind the 

1370 successors and assigns of the parties hereto, but no assignment or transfer of this Interim Renewal 

1371 Contract or any right or interest therein shall be valid until approved in writing by the Contracting 

1372 Officer. 

1373 (b) The assignment of any right or interest in this Interim Renewal Contract by 

1374 either party shall not interfere with the rights or obligations of the other party to this Interim Renewal 

1375 Contract absent the written concurrence of said other party. 

1376 (c) The Contracting Officer shall not unreasonably condition or withhold approval 

1377 of any proposed assignment. 

1378 SEVERABILITY

1379 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1380 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1381 association or other form of organization whose primary function is to represent parties to Project 

1382 contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1383 enforceability of a provision included in this Interim Renewal Contract and said person, entity, 

1384 association, or organization obtains a final court decision holding that such provision is legally 

1385 invalid or unenforceable and the Contractor has not intervened in that lawsuit in support of the 

1386 plaintiff(s), the parties to this Interim Renewal Contract shall use their best efforts to (i) within 30 

1387 days of the date of such final court decision identify by mutual agreement the provisions in this 

1388 Interim Renewal Contract which must be revised and (ii) within three months thereafter promptly 

1389 agree on the appropriate revision(s). The time periods specified above may be extended by mutual 

1390 agreement of the parties. Pending the completion of the actions designated above, to the extent it can 
60

1391 do so without violating any applicable provisions of law, the United States shall continue to make the 

1392 quantities of Project Water specified in this Interim Renewal Contract available to the Contractor 

1393 pursuant to the provisions of this Interim Renewal Contract which were not found to be legally 

1394 invalid or unenforceable in the final court decision. 

1395 RESOLUTION OF DISPUTES

1396 33. Should any dispute arise concerning any provisions of this Interim Renewal Contract, 

1397 or the parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

1398 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer 

1399 referring any matter to the Department of Justice, the party shall provide to the other party 30 days’ 

1400 written notice of the intent to take such action; Provided, That such notice shall not be required where 

1401 a delay in commencing an action would prejudice the interests of the party that intends to file suit. 

1402 During the 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in 

1403 an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

1404 waive or abridge any right or remedy that the Contractor or the United States may have. 

1405 OFFICIALS NOT TO BENEFIT

1406 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1407 Contractor shall benefit from this Interim Renewal Contract other than as a water user or landowner 

1408 in the same manner as other water users or landowners. 

1409 CHANGES IN CONTRACTOR’S SERVICE AREA

1410 35. (a) While this Interim Renewal Contract is in effect, no change may be made in 

1411 the Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

1412 or otherwise, except upon the Contracting Officer's written consent. 

1413 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1414 Officer will notify the Contractor of any additional information required by the Contracting Officer 
61

1415 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1416 timely completion of the process. Such process will analyze whether the proposed change is likely 

1417 to: (i) result in the use of Project Water contrary to the terms of this Interim Renewal Contract; (ii) 

1418 impair the ability of the Contractor to pay for Project Water furnished under this Interim Renewal 

1419 Contract or to pay for any Federally-constructed facilities for which the Contractor is responsible; 

1420 and (iii) have an impact on any Project Water rights applications, permits, or licenses. In addition, 

1421 the Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

1422 responsible for all costs incurred by the Contracting Officer in this process, and such costs will be 

1423 paid in accordance with Article 25 of this Interim Renewal Contract. 

1424 FEDERAL LAWS

1425 36. By entering into this Interim Renewal Contract, the Contractor does not waive its 

1426 rights to contest the validity or application in connection with the performance of the terms and 

1427 conditions of this Interim Renewal Contract of any Federal law or regulation; Provided, That the 

1428 Contractor agrees to comply with the terms and conditions of this Interim Renewal Contract unless 

1429 and until relief from application of such Federal law or regulation to the implementing provision of 

1430 the Contract is granted by a court of competent jurisdiction. 

1431 

1432 NOTICES

1433 37. Any notice, demand, or request authorized or required by this Interim Renewal 

1434 Contract shall be deemed to have been given, on behalf of the Contractor, when mailed, postage 

1435 prepaid, or delivered to the Area Manager, South-Central California Area Office, 1243 N Street, 

1436 Fresno, California 93721, and on behalf of the United States, when mailed, postage prepaid, or 

1437 delivered to the Board of Directors of the _________________. The designation of the addressee or 

1438 the address may be changed by notice given in the same manner as provided in this Article for other 

1439 notices. 

1440 CONFIRMATION OF CONTRACT

1441 38. The Contractor, after the execution of this Contract, shall promptly seek to secure a 

1442 decree of a court of competent jurisdiction of the State of California, confirming the execution of this 

1443 Contract. The Contractor shall furnish the United States a certified copy of the final decree, the 

1444 validation proceedings, and all pertinent supporting records of the court approving and confirming 

1445 this Contract, and decreeing and adjudging it to be lawful, valid, and binding on the Contractor. 
62

1446 IN WITNESS WHEREOF, the parties hereto have executed this INTERIM RENEWAL 

1447 CONTRACT as of the day and year first above written. 

1448 

1449 THE UNITED STATES OF AMERICA 

1450 By: _________________________________________ 

1451 Regional Director, Mid-Pacific Region 

1452 Bureau of Reclamation 

1453 (SEAL) 

1454 DISTRICT ___________ 

1455 By: _________________________________ 

1456 President of the Board of Directors 

1457 Attest: 

1458 By: __________________________________ 

1459 Secretary of the Board of Directors 
 EXHIBIT A

[Map or Description of Service Area] 
EXHIBIT B

200_ Water Rates and Charges