AG and M&I 

R. O. Final CVP-Wide Draft 4/19-2004 

County of Colusa Draft 7/22-2003 

County of Colusa Draft 6/26-2003 

County of Colusa Draft 6/25-2003 

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

Sac.Valley Division Draft 5/28-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

 14-06-200-8310A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

AND

COUNTY OF COLUSA

PROVIDING FOR PROJECT WATER SERVICE

FROM THE SACRAMENTO RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

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

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

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

 3 Water to be Made Available and Delivered to the Contractor.........................12-15 

 4 Time for Delivery of Water .............................................................................15-16 

 5 Point of Diversion and Responsibility for Distribution of Water.................... 16-18 

 6 Measurement of Water Within the Contractor’s Service Area........................ 18-19 

 7 Rates and Method of Payment for Water.........................................................19-26 

 8 Non-Interest Bearing Operation and Maintenance Deficits.................................. 26 

 9 Sales, Transfers, or Exchanges of Water .........................................................26-27 

 10 Application of Payments and Adjustments........................................................... 28 

 11 Temporary Reductions--Return Flows ............................................................ 28-29 

 12 Constraints on the Availability of Water ......................................................... 29-30 

 13 Unavoidable Groundwater Percolation................................................................. 30 

 14 Rules and Regulations........................................................................................... 30 

 15 Water and Air Pollution Control........................................................................... 30 

 16 Quality of Water .............................................................................................. 30-31 

 17 Water Acquired by the Contractor Other Than From the United States..........31-33 

 18 Opinions and Determinations ............................................................................... 34 

 19 Coordination and Cooperation......................................................................... 34-36 

 20 Charges for Delinquent Payments ........................................................................ 36 
Contract No. 14-06-200-8310A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity............................................................................................36-37 

 22 General Obligation--Benefits Conditioned Upon Payment .............................37-38 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 38 

 24 Privacy Act Compliance ..................................................................................38-39 

 25 Contractor to Pay Certain Miscellaneous Costs.................................................... 39 

 26 Water Conservation .........................................................................................39-41 

 27 Existing or Acquired Water or Water Rights........................................................ 41 

 28 Operation and Maintenance by Operating Non-Federal Entity ....................... 41-42 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 42 

 30 Books, Records, and Reports........................................................................... 42-43 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 43 

 32 Severability ......................................................................................................43-44 

 33 Resolution of Disputes.......................................................................................... 44 

 34 Officials Not to Benefit......................................................................................... 44 

 35 Changes in Contractor’s Service Area............................................................. 44-45 

 36 Federal Laws......................................................................................................... 45 

 37 Notices .................................................................................................................. 45

 38 Confirmation of Contract.................................................................................45-46 

 39 Contracts With Member UnitsBResale of Water .................................................. 46 

Signature Page .......................................................................................................47 

 

 Exhibit A – Map of Contractor’s Service Area 

 

 Exhibit B – Rates and Charges
AG and M&I 

R. O. Final CVP-Wide Draft 4/19-2004 

County of Colusa Draft 7/22-2003 

County of Colusa Draft 6/26-2003 

County of Colusa Draft 6/25-2003 

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

Sac.Valley Division Draft 5/28-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

 14-06-200-8310A-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

6 AND

7 COUNTY OF COLUSA

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE SACRAMENTO RIVER DIVISION

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

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

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

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

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

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

16 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, between 

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

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

19 existing, and acting pursuant to the laws thereof; 

20 WITNESSETH, That:
Contract No. 14-06-200-8310A-LTR1 

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21 EXPLANATORY RECITALS

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

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

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

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

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

27 and the San Joaquin River and their tributaries; and 

 [2nd 28 ] WHEREAS, the United States constructed the Red Bluff Diversion Dam, and the 

29 Tehama-Colusa Canal and related delivery facilities including pumping plants, hereinafter 

30 collectively referred to as the Canal Facilities, which will be used in part for the furnishing of 

31 water to the Contractor pursuant to the terms of this Contract; and 

 [3rd 32 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

 [4th 34 ] WHEREAS, the Contractor and the United States entered into Contract 

35 No. 14-06-200-8310A, which established terms for the delivery to the Contractor of Project 

36 Water from the Canal Facilities from November 18, 1975, through February 28, 1995, and under 

37 which the initial date of water delivery to the Contractor was January 1, 1981; and 

 [5th 38 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

39 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

40 interim renewal contract(s) identified as Contract No(s). 14-06-200-8310A-IR1, 14-06-200-

41 8310A-IR2, 14-06-200-8310A-IR3, 14-06-200-8310A-IR4, 14-06-200-8310A-IR5, 14-06-200-

42 8310A-IR6, 14-06-200-8310A-IR7, and 14-06-200-8310A-IR8, the current of which is 

43 hereinafter referred to as the Existing Contract, which provided for the continued water service 

44 to the Contractor from March 1, 2004, through February 28, 2006; and 

45 [5.1] WHEREAS, in accordance with Article 5 (a) of Contract No. 14-06-200-8310A, 

46 and with the prior approval of the Contracting Officer, the Contractor entered into subcontracts 
Contract No. 14-06-200-8310A-LTR1 

3

47 for the resale and distribution of all of the Project Water under Contract No. 14-06-200-8310A 

48 with the Member Units, with an initial delivery date of January 1, 1981, and for the quantities set 

49 forth below: 

50 Colusa County Water District for 5,965 acre-feet; 

51 Cortina Water District for 1,700 acre-feet; 

52 4-M Water District for 5,700 acre-feet; 

53 Glenn Valley Water District for 1,730 acre-feet; 

54 Holthouse Water District for 2,450 acre-feet; 

55 La Grande Water District for 2,200 acre-feet; 

56 Myers-Marsh Mutual Water Company for 255 acre-feet; 

57 Westside Water District for 40,000 acre-feet; and 

58 [5.2] WHEREAS, the Contractor and Westside Water District entered into a partial 

59 assignment on March 27, 2002, identified as Contract No. 14-06-200-8310X, to permanently 

60 assign to Westside Water District 40,000 acre-feet of the Project Water made available to the 

61 Contractor pursuant to Contract No. 14-06-200-8310A; and 

 [6th 62 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

64 programmatic environmental impact statement (PEIS) pursuant to the National Environmental 

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

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

 [7th 67 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 69 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

71 of the State of California, for water service from the Project; and 
Contract No. 14-06-200-8310A-LTR1 

4

 [9th 72 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

73 of its obligations under the Existing Contract; and 

 [10th 74 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

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

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

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

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

 [11th 79 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

81 as an essential portion of its water supply; and 

 [12th 82 ] WHEREAS, the economies of regions within the Project, including the 

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

84 Project; and 

 [13th 85 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

87 Project for all Project purposes; and 

 [14th 88 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

90 repayment of the Project as required by law; to guard reasonably against Project Water 

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

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

93 of the United States relative to the Project; and 

 [15th 94 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

95 relationship in order to achieve their mutual goals; and 

 [16th 96 ] WHEREAS, the United States and the Contractor are willing to enter into this 

97 Contract pursuant to Federal Reclamation law on the terms and conditions set forth below; 
Contract No. 14-06-200-8310A-LTR1 

5

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

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

100 DEFINITIONS

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

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

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

104 both dates inclusive; 

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

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

107 annually by the Contracting Officer pursuant to this Contract; 

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

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

110 Contract Total; 

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

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

113 or regulation; 

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

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

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

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

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

119 without amendment of this Contract; 

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

121 XXXIV of the Act of October 30, 1992 (106 Stat. 4706); 
Contract No. 14-06-200-8310A-LTR1 

6

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

123 delivered in accordance with Section 204 of the Reclamation Reform Act of October 12, 1982 

124 (96 Stat. 1263), as amended, hereinafter referred to as RRA; 

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

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

127 Reclamation law; 

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

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

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

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

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

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

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

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

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

137 and Regulations for the RRA; 

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

139 be delivered in accordance with Section 204 of the RRA; 

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

141 to the delivery of Irrigation Water; 

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

143 is used primarily in the production of agricultural crops or livestock, including domestic use 

144 incidental thereto, and watering of livestock; 

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

146 nonexempt land, as provided in 43 CFR 426.2; 
Contract No. 14-06-200-8310A-LTR1 

7

147 (o) “Member Unit” shall mean an entity within the Contractor=s Service Area 

148 organized for the purpose of obtaining Project Water from the Canal Facilities and executing a 

149 subcontract with the Contractor for such a supply; 

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

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

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

153 which are kept for personal enjoyment or water delivered to land holdings operated in units of 

154 less than five acres, unless the Contractor establishes to the satisfaction of the Contracting 

155 Officer that the use of water delivered to any such landholding is a use described in subdivision 

156 (m) of this Article; 

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

158 the delivery of M&I Water; 

159 (r) “Operation and Maintenance” or “O&M” shall mean normal and 

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

161 maintenance of Project facilities; 

162 (s) “Operating Non-Federal Entity” shall mean the Tehama-Colusa Canal 

163 Authority, its successors or assigns, a non-Federal entity which has the obligation to operate and 

164 maintain all or a portion of the Canal Facilities pursuant to an agreement with the United States, 

165 and which may have funding obligations with respect thereto; 

166 (t) “Project” shall mean the Central Valley Project owned by the United 

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

168 (u) “Project Contractors” shall mean all parties who have water service 

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

170 Reclamation law; 
Contract No. 14-06-200-8310A-LTR1 

8

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

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

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

174 (w) “Rates” shall mean the payments determined annually by the Contracting 

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

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

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

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

179 preceding contract(s); 

180 (y) “Secretary” shall mean the Secretary of the Interior, a duly appointed 

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

182 through any agency of the Department of the Interior; 

183 (z) “Tiered Pricing Component” shall be the incremental amount to be paid 

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

185 (aa) “Water Delivered” or “Delivered Water” shall mean Project Water 

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

187 Officer; 

188 (bb) “Water Made Available” shall mean the estimated amount of Project 

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

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

191 (cc) “Water Scheduled” shall mean Project Water made available to the 

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

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

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

195 Calendar Year through the last day of February of the following Calendar Year. 
Contract No. 14-06-200-8310A-LTR1 

9

196 TERM OF CONTRACT

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

198 20___, and supercedes the Existing Contract. In the event the Contractor wishes to renew this 

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

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

201 renewal of this Contract insofar as it pertains to the furnishing of Irrigation Water to the 

202 Contractor shall be governed by subdivision (b) of this Article, and the renewal of this Contract 

203 insofar as it pertains to the furnishing of M&I Water to the Contractor shall be governed by 

204 subdivision (c) of this Article. 

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

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

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

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

209 Water to the Contractor, shall be renewed for a period of 25 years. 

210 (2) The conditions which must be met for this Contract to be renewed 

211 are: (i) the Contractor and/or each Member Unit has prepared a water conservation plan that has 

212 been determined by the Contracting Officer in accordance with Article 26 of this Contract to 

213 meet the conservation and efficiency criteria for evaluating such plans established under Federal 

214 law; (ii) the Contractor and/or each Member Unit is implementing an effective water 

215 conservation and efficiency program based on the Contractor’s and/or each Member Unit’s water 

216 conservation plan as required by Article 26 of this Contract; (iii) the Contractor and/or each 

217 Member Unit is maintaining all water measuring devices and implementing all water 

218 measurement methods as approved by the Contracting Officer pursuant to Article 6 of this 

219 Contract; (iv) the Contractor and/or each Member Unit has reasonably and beneficially used the 

220 Project Water supplies made available to it and, based on projected demands, is reasonably 

221 anticipated and expects to fully utilize for reasonable and beneficial use the quantity of Project 
Contract No. 14-06-200-8310A-LTR1 

10

222 Water to be made available to it pursuant to such renewal; (v) the Contractor and/or each 

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

224 and/or each Member Unit has the physical and legal ability to deliver Project Water. 

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

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

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

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

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

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

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

232 progress toward achieving the purposes of the CVPIA as set out in Section 3402 and in 

233 implementing the specific provisions of the CVPIA; and current and anticipated economic 

234 circumstances of the region served by the Contractor. 

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

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

237 be consistent with then-existing Reclamation-wide policy, under terms and conditions mutually 

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

239 afforded the opportunity to comment to the Contracting Officer on the proposed adoption and 

240 application of any revised policy applicable to the delivery of M&I Water that would limit the 

241 term of any subsequent renewal contract with the Contractor for the furnishing of M&I Water to 

242 less than 40 years. 

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

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

245 Contract, of whether a conversion of the relevant portion of this Contract to a contract under 

246 subsection 9(d) of the Reclamation Project Act of 1939 can be accomplished pursuant to the Act 

247 of July 2, 1956 (70 Stat. 483). The Contracting Officer shall also make a determination ten years 
Contract No. 14-06-200-8310A-LTR1 

11

248 after the date of execution of this Contract and every five years thereafter during the term of this 

249 contract of whether a conversion of the relevant portion of this Contract to a contract under 

250 subsection 9(c)(1) of the Reclamation Project Act of 1939 can be accomplished. 

251 Notwithstanding any provision of this Contract, the Contractor reserves and shall have all rights 

252 and benefits under the Act of July 2, 1956 (70 Stat. 483). The Contracting Officer anticipates 

253 that during the term of this Contract, all authorized Project construction expected to occur will 

254 have occurred, and on that basis the Contracting Officer agrees upon such completion to allocate 

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

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

257 this Contract shall, at the request of the Contractor, be converted to a contract under subsection 

258 9(d) or 9(c)(1), whichever is applicable, of the Reclamation Project Act of 1939, subject to 

259 applicable Federal law and under stated terms and conditions mutually agreeable to the 

260 Contractor and the Contracting Officer. A condition for such conversion to occur shall be a 

261 determination by the Contracting Officer that, account being taken of the amount credited to 

262 return by the Contractor as provided for under Federal Reclamation law, the remaining amount 

263 of construction costs assignable for ultimate return by the Contractor can probably be repaid to 

264 the United States within the term of a contract under subsection 9(d) or 9(c)(1), whichever is 

265 applicable. If the remaining amount of costs that are properly assignable to the Contractor 

266 cannot be determined during the term of this Contract, the Contracting Officer shall notify the 

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

268 Contracting Officer shall make such a determination as soon thereafter as possible so as to 

269 permit, upon request of the Contractor and satisfaction of the condition set out above, conversion 

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

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

272 during the term of this Contract or the Contractor has not requested conversion of this Contract 

273 within such term, the parties shall incorporate in any subsequent renewal contract as described in 
Contract No. 14-06-200-8310A-LTR1 

12

274 subdivision (b) of this Article a provision that carries forth in substantially identical terms the 

275 provisions of this subdivision. 

276 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

278 permits, and licenses, Federal law, and subject to the provisions set forth in Articles 11 and 12 of 

279 this Contract, the Contracting Officer shall make available for delivery to the Contractor 20,000 

280 acre-feet of Project Water for irrigation and M&I purposes. Water Delivered to the Contractor in 

281 accordance with this subdivision shall be scheduled and paid for pursuant to the provisions of 

282 Articles 4 and 7 of this Contract. 

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

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

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

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

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

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

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

290 water made available to the Contractor was 18,400 acre-feet. Nothing in subdivision (b) of this 

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

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

293 applicable legal requirements. 

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

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

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

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

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

299 use consistent with Federal Reclamation law will be allowed; Provided, That any direct recharge 
Contract No. 14-06-200-8310A-LTR1 

13

300 program(s) is (are) described in each Member Unit’s water conservation plan submitted pursuant 

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

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

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

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

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

306 Water or other water furnished pursuant to this Contract conducted outside the Contractor’s 

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

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

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

310 guidelines. 

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

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

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

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

315 Contract, which evidences in excess of 22 years of diversions for irrigation and/or M&I purposes 

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

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

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

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

320 jurisdiction with respect to any biological opinion or other environmental documentation referred 

321 to in this Article. 

322 (f) As soon as possible following each declaration of Water Made Available 

323 under Article 4 of this Contract, the Contracting Officer will make a determination whether 

324 Project Water, or other water available to the Project, can be made available to the Contractor in 

325 addition to the Contract Total under Article 3 of this Contract during the Year without adversely 
Contract No. 14-06-200-8310A-LTR1 

14

326 impacting other Project Contractors. At the request of the Contractor, the Contracting Officer 

327 will consult with the Contractor prior to making such a determination. If the Contracting Officer 

328 determines that Project Water, or other water available to the Project, can be made available to 

329 the Contractor, the Contracting Officer will announce the availability of such water and shall so 

330 notify the Contractor as soon as practical. The Contracting Officer will thereafter meet with the 

331 Contractor and other Project Contractors capable of taking such water to determine the most 

332 equitable and efficient allocation of such water. If the Contractor requests the delivery of any 

333 quantity of such water, the Contracting Officer shall make such water available to the Contractor 

334 in accordance with applicable statutes, regulations, guidelines, and policies. 

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

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

337 Year referred to as “carryover.” The Contractor may request permission to use during the 

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

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

340 written approval may permit such uses in accordance with applicable statutes, regulations, 

341 guidelines, and policies. 

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

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

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

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

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

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

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

349 contracts. 
Contract No. 14-06-200-8310A-LTR1 

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

351 delivered for other than irrigation or M&I purposes upon written approval by the Contracting 

352 Officer in accordance with the terms and conditions of such approval. 

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

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

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

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

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

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

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

360 Contract to use Project Water. 

361 TIME FOR DELIVERY OF WATER

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

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

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

365 Historic Average and will be updated monthly, and more frequently if necessary, based on then366 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

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

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

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

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

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

372 Contractor shall, or, if so provided by subcontract with a Member Unit, a Member Unit shall 

373 submit to the Contracting Officer a written schedule, satisfactory to the Contracting Officer, 

374 showing the monthly quantities of Project Water to be delivered by the United States to the 

375 Contractor pursuant to this Contract for the Year commencing on such March 1. The 
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376 Contracting Officer shall use all reasonable means to deliver Project Water according to the 

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

378 (c) The Contractor, or, if so provided by subcontract with a Member Unit, a 

379 Member Unit shall not schedule Project Water in excess of the quantity of Project Water the 

380 Contractor intends to put to reasonable and beneficial use within the Contractor's Service Area or 

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

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

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

384 initial schedule submitted by the Contractor or Member Unit pursuant to subdivision (b) of this 

385 Article, or any written revision(s), satisfactory to the Contracting Officer, thereto submitted 

386 within a reasonable time prior to the date(s) on which the requested change(s) is/are to be 

387 implemented. 

388 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

390 Contract shall be delivered to the Contractor at approved turnouts on the Canal Facilities and any 

391 additional point or points of delivery either on Project facilities or another location or locations 

392 mutually agreed to in writing by the Contracting Officer and the Contractor. 

393 (b) The Contracting Officer, either directly or through its written agreement(s) 

394 with the Operating Non-Federal Entity/Entities shall make all reasonable efforts to maintain 

395 sufficient flows and levels in the Project facilities to deliver Project Water to the Contractor at 

396 specific turnouts established pursuant to subdivision (a) of this Article. The parties acknowledge 

397 that it may be necessary from time to time to shut down some or all of Project facilities for 

398 maintenance or emergencies. Except in the case of emergency, the Contracting Officer shall 

399 consult with the Contractor to schedule the shut down at such times and for such duration as will 

400 allow for the work to be accomplished completely and efficiently, and with a minimum of 
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401 disruption of water service to the Contractor. In this regard, shut downs will, to the extent 

402 reasonably possible, be limited to the months of December and January. 

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

404 applicable land classification provisions of Federal Reclamation law and the associated 

405 regulations. The Contractor shall not deliver Project Water to land outside the Contractor's 

406 Service Area unless approved in advance by the Contracting Officer. 

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

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

409 United States or the Operating Non-Federal Entity/Entities at the point or points of delivery 

410 established pursuant to subdivision (a) of this Article. Upon the request of either party to this 

411 Contract, the Contracting Officer shall investigate, or cause to be investigated by the responsible 

412 Operating Non-Federal Entity/Entities, the accuracy of such measurements and shall take any 

413 necessary steps to adjust any errors appearing therein. For any period of time when accurate 

414 measurements have not been made, the Contracting Officer shall consult with the Contractor and 

415 the responsible Operating Non-Federal Entity/Entities prior to making a final determination of 

416 the quantity delivered for that period of time. 

417 (e) Neither the Contracting Officer nor any Operating Non-Federal 

418 Entity/Entities shall be responsible for the control, carriage, handling, use, disposal, or 

419 distribution of Water Delivered to the Contractor pursuant to this Contract beyond the delivery 

420 points specified in subdivision (a) of this Article. The Contractor shall indemnify the United 

421 States, its officers, employees, agents, and assigns on account of damage or claim of damage of 

422 any nature whatsoever for which there is legal responsibility, including property damage, 

423 personal injury, or death arising out of or connected with the control, carriage, handling, use, 

424 disposal, or distribution of such Water Delivered beyond such delivery points, except for any 

425 damage or claim arising out of (i) acts or omissions of the Contracting Officer or any of its 

426 officers, employees, agents, or assigns, including the Operating Non-Federal Entity/Entities, with 
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427 the intent of creating the situation resulting in any damage or claim, (ii) willful misconduct of the 

428 Contracting Officer or any of its officers, employees, agents, or assigns, including the Operating 

429 Non-Federal Entity/Entities, (iii) negligence of the Contracting Officer or any of its officers, 

430 employees, agents, or assigns including the Operating Non-Federal Entity/Entities, or (iv) 

431 damage or claims resulting from a malfunction of facilities owned and/or operated by the United 

432 States or responsible Operating Non-Federal Entity/Entities. 

433 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

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

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

438 measuring devices or water measuring methods of comparable effectiveness must be acceptable 

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

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

441 measuring methods at no cost to the United States. The Contractor shall use the information 

442 obtained from such water measuring devices or water measuring methods to ensure its proper 

443 management of the water, to bill water users for water delivered by the Contractor; and, if 

444 applicable, to record water delivered for M&I purposes by customer class as defined in the 

445 Member Unit’s water conservation plan provided for in Article 26 of this Contract. Nothing 

446 herein contained, however, shall preclude the Contractor from establishing and collecting any 

447 charges, assessments, or other revenues authorized by California law. The Contractor shall 

448 include a summary of all its annual surface water deliveries in the annual report described in 

449 subdivision (c) of Article 26. 

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

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

452 report describing the measurement devices or water measuring methods being used or to be used 
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453 to implement subdivision (a) of this Article and identifying the agricultural turnouts and the M&I 

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

455 at which such measurement devices or water measuring methods are being used, and, if 

456 applicable, identifying the locations at which such devices and/or methods are not yet being used 

457 including a time schedule for implementation at such locations. The Contracting Officer shall 

458 advise the Contractor in writing within 60 days as to the adequacy and necessary modifications, 

459 if any, of the measuring devices or water measuring methods identified in the Contractor’s report 

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

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

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

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

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

465 compliance with subdivision (a) of this Article. 

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

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

468 provisions described in subdivision (a) of this Article. 

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

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

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

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

Non-Federal Entity on or before the 20th 473 calendar day of each month of the quantity of Irrigation 

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

475 RATES AND METHOD OF PAYMENT FOR WATER

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

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

478 accordance with (i) the Secretary’s ratesetting policy for Irrigation Water adopted in 1988 and 
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479 the Secretary’s then-existing ratesetting policy for M&I Water. Such ratesetting policies shall be 

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

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

482 other applicable provisions of this Contract. Payments shall be made by cash transaction, 

483 electronic funds transfer, or any other mechanism as may be agreed to in writing by the 

484 Contractor and the Contracting Officer. The Rates, Charges, and Tiered Pricing Component 

485 applicable to the Contractor upon execution of this Contract are set forth in Exhibits “B-1 

486 through B-7” for subcontracts with the Member Units identified in said exhibits, as may be 

487 revised annually. For subcontracts with Member Units other than those identified in the said 

488 exhibits, Rates, Charges, and Tiered Pricing Component will be developed as necessary and will 

489 automatically become exhibits hereto as though fully set forth herein. 

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

491 and Tiered Pricing Component as follows: 

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

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

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

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

496 to review and comment on such estimates. On or before September 15 of each Calendar Year, 

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

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

499 Calendar Year, and such notification shall revise Exhibits “B-1” through “B-7” and any 

500 additional exhibits. 

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

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

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

504 those Rates are based. The Contractor shall be allowed not less than two months to review and 
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505 comment on such computations and cost allocations. By December 31 of each Calendar Year, 

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

507 Component to be in effect for the upcoming Year, and such notification shall revise 

508 Exhibits “B-1” through “B-7” and any additional exhibits. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

524 this Contract equals the quantity of Water Scheduled and paid for by the Contractor, no 

525 additional Project Water shall be delivered to the Contractor unless and until an advance 

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

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

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

529 later than April 30th of the following Year, or 60 days after the delivery of Project Water carried 
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530 over under subdivision (g) of Article 3 of this Contract if such water is not delivered by the last 

531 day of February. 

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

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

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

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

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

537 consistent with the quantities of Irrigation Water and M&I Water Delivered as shown in the 

538 water delivery report for the subject month prepared by the Operating Non-Federal 

539 Entity/Entities or, if there is no Operating Non-Federal Entity/Entities, by the Contracting 

540 Officer. The water delivery report shall be deemed a bill for the payment of Charges and the 

541 applicable Tiered Pricing Component for Water Delivered. Adjustment for overpayment or 

542 underpayment of Charges shall be made through the adjustment of payments due to the United 

543 States for Charges for the next month. Any amount to be paid for past due payment of Charges 

544 and the Tiered Pricing Component shall be computed pursuant to Article 20 of this Contract. 

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

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

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

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

549 Contract shall be no more than the otherwise applicable Rate for Irrigation Water or M&I Water 

550 under subdivision (a) of this Article. 

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

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

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

554 the delivery of Project Water or the delivery of non-Project water through Project facilities shall 
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555 be allocated and applied in accordance with Federal Reclamation law and the associated rules or 

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

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

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

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

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

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

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

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

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

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

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

567 policies, and procedures used for establishing Rates, Charges, and Tiered Pricing Components, 

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

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

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

571 this Contract is in effect without amending this Contract. 

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

573 exceed 80 percent of the quantity of Project Water under subcontract with each Member Unit, 

574 then before the end of the month following the month of delivery the Contractor shall make an 

575 additional payment to the United States equal to the applicable Tiered Pricing Component. The 

576 Tiered Pricing Component for the amount of Water Delivered in excess of 80 percent of the 

577 quantity of Project Water under subcontract with each Member Unit, but less than or equal to 90 

578 percent of the quantity of Project Water under subcontract with each Member Unit, shall equal 

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

580 the Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, whichever is applicable. The 
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581 Tiered Pricing Component for the amount of Water Delivered which exceeds 90 percent of the 

582 quantity of Project Water under subcontract with each Member Unit shall equal the difference 

583 between (i) the Rate established under subdivision (a) of this Article and (ii) the Irrigation Full 

584 Cost Water Rate or M&I Full Cost Water Rate, whichever is applicable. For all Water Delivered 

585 pursuant to subdivision (a) of Article 3 of this Contract which is in excess of 80 percent of the 

586 quantity of Project Water under subcontract with each Member Unit, this increment shall be 

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

588 deliveries of each bear to the cumulative total Water Delivered. 

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

590 Contractor may request and receive an exemption from such Tiered Pricing Components for 

591 Project Water delivered to produce a crop which the Contracting Officer determines will provide 

592 significant and quantifiable habitat values for waterfowl in fields where the water is used and the 

593 crops are produced; Provided, That the exemption from the Tiered Pricing Component for 

594 Irrigation Water shall apply only if such habitat values can be assured consistent with the 

595 purposes of the CVPIA through binding agreements executed with or approved by the 

596 Contracting Officer prior to use of such water. 

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

598 Component pursuant to this Article, Water Delivered shall include Project Water that each 

599 Member Unit transfers to others but shall not include Project Water transferred to each Member 

600 Unit, nor shall it include the additional water provided to the Contractor and/or each Member 

601 Unit under the provisions of subdivision (f) of Article 3 of this Contract. 

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

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

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

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

606 in accordance with the relevant Project ratesetting policy. Changes of significance in practices 
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607 which implement the Contracting Officer’s ratesetting policies will not be implemented until the 

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

609 impact of the proposed change. 

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

611 CVPIA, the Rates for Project Water transferred by each Member Unit shall be each Member 

612 Unit’s Rates adjusted upward or downward to reflect the changed costs, if any, incurred by the 

613 Contracting Officer in the delivery of the transferred Project Water to the transferee’s point of 

614 delivery in accordance with the then applicable Project ratesetting policy. If each Member Unit 

615 is receiving lower Rates and Charges because of inability to pay and is transferring Project Water 

616 to another entity whose Rates and Charges are not adjusted due to inability to pay, the Rates and 

617 Charges for transferred Project Water shall be each Member Unit’s Rates and Charges and will 

618 not be adjusted to reflect the Member’s inability to pay. 

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

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

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

622 not legally obligated to repay any Project deficits claimed by the United States to have accrued 

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

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

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

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

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

628 term of the Existing Contract and any preceding interim renewal contracts, if applicable; (2) 

629 interest accruing on any such deficits; (3) the inclusion of any such deficit charges or interest in 

630 the Rates; (4) the application by the United States of payments made by the Contractor under its 

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

632 application of such payments in the Rates. The Contracting Officer agrees that the Contractor 
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633 shall be entitled to the benefit of any administrative or judicial ruling in favor of any other 

634 Project M&I contractor on any of these issues, and credits for payments heretofore made, 

635 Provided, That the basis for such ruling is applicable to the Contractor. 

636 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

639 liability therefor. 

640 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

642 sold, transferred, or exchanged to others for reasonable and beneficial uses within the State of 

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

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

645 Water under this Contract may take place without the prior written approval of the Contracting 

646 Officer, except as provided for in subdivision (b) of this Article, and no such sales, transfers, or 

647 exchanges shall be approved absent all appropriate environmental documentation, including but 

648 not limited to documents prepared pursuant to NEPA and ESA. Such environmental 

649 documentation should include, as appropriate, an analysis of ground-water impacts and 

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

651 both the transferor and transferee. 

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

653 transfers of the type historically carried out among Project Contractors located within the same 

654 geographical area and to allow the Contractor to participate in an accelerated water transfer 

655 program during the term of this Contract, the Contracting Officer shall prepare, as appropriate, 

656 necessary environmental documentation including, but not limited to, documents prepared 

657 pursuant to NEPA and ESA, analyzing annual transfers within such geographical areas and the 

658 Contracting Officer shall determine whether such transfers comply with applicable law. 
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659 Following the completion of the environmental documentation, such transfers addressed in such 

660 documentation shall be conducted with advance notice to the Contracting Officer, but shall not 

661 require prior written approval by the Contracting Officer. Such environmental documentation 

662 and the Contracting Officer’s compliance determination shall be reviewed every five years and 

663 updated, as necessary, prior to the expiration of the then-existing five-year period. All 

664 subsequent environmental documentation shall include an alternative to evaluate not less than the 

665 quantity of Project Water historically transferred within the same geographical area. 

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

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

668 years, for M&I use, ground-water recharge, ground-water banking, similar ground-water 

669 activities, surface water storage, or fish and wildlife resources; not lead to land conversion; and 

670 be delivered to established cropland, wildlife refuges, ground-water basins or M&I use; (ii) occur 

671 within a single Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water 

672 through existing facilities with no new construction or modifications to facilities and be between 

673 existing Project Contractors and/or the Contractor and the United States, Department of the 

674 Interior; and (v) comply with all applicable Federal, State, and local or tribal laws and 

675 requirements imposed for protection of the environment and Indian Trust Assets, as defined 

676 under Federal law. 

677 (d) For the purpose of determining whether Section 3405(a)(1)(M) of the 

678 CVPIA applies to the Contractor or a Member Unit as a transferor or transferee of Project Water, 

679 the Contracting Officer acknowledges that the Contractor or a Member Unit is within a county, 

680 watershed, or other area of origin, as those terms are utilized under California law, of water that 

681 constitutes the natural flow of the Sacramento River and its tributaries above the confluence of 

682 the American and Sacramento Rivers. 
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683 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

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

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

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

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

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

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

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

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

694 Contractor that it has finalized the accounts for the Year in which the overpayment was made. 

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

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

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

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

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

700 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

705 provided in this Contract. 

706 (b) The Contracting Officer or Operating Non-Federal Entity/Entities may 

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

708 provided for the purposes of investigation, inspection, maintenance, repair, or replacement of any 
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709 of the Project facilities or any part thereof necessary for the delivery of Project Water to the 

710 Contractor, but so far as feasible the Contracting Officer or Operating Non-Federal Entity will 

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

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

713 shall use its best efforts to avoid any discontinuance or reduction in such service. Upon 

714 resumption of service after such reduction or discontinuance, and if requested by the Contractor, 

715 the United States will, if possible, deliver the quantity of Project Water which would have been 

716 delivered hereunder in the absence of such discontinuance or reduction. 

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

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

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

720 the United States any right to seepage or return flow being put to reasonable and beneficial use 

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

722 claiming by, through, or under the Contractor. 

723 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

728 Contractor of said determination as soon as practicable. 

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

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

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

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

733 any of its officers, agents, or employees for any damage, direct or indirect, arising therefrom. 
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734 (c) In any Year in which there may occur a shortage for any of the reasons 

735 specified in subdivision (b) above, the Contracting Officer shall apportion the available Project 

736 Water supply among the Contractor and others entitled, under existing contracts and future 

737 contracts (to the extent such future contracts are permitted under subsections (a) and (b) of 

738 Section 3404 of the CVPIA) and renewals thereof, to receive Project Water consistent with the 

739 contractual obligations of the United States. 

740 (d) Project Water furnished under this long-term renewal contract will be 

741 allocated in accordance with the then-existing Project M&I Water Shortage Policy. Such policy 

742 shall be amended, modified, or superseded only through a public notice and comment procedure. 

743 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

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

748 RULES AND REGULATIONS

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

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

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

752 the rules and regulations promulgated by the Secretary of the Interior under Federal Reclamation 

753 law. 

754 WATER AND AIR POLLUTION CONTROL

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

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

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

758 authorities. 

759 QUALITY OF WATER

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

761 to this Contract shall be operated and maintained to enable the United States to deliver Project 
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762 Water to the Contractor in accordance with the water quality standards specified in subsection 

763 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

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

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

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

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

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

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

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

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

772 to surface and subsurface agricultural drainage discharges generated through the use of Federal 

773 or Contractor facilities or Project Water provided by the Contractor within the Contractor's 

774 Service Area. 

775 WATER ACQUIRED BY THE CONTRACTOR

776 OTHER THAN FROM THE UNITED STATES

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

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

779 Contract may be simultaneously transported through the same distribution facilities of the 

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

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

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

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

784 Irrigation Water must be established through the certification requirements as specified in the 

785 Acreage Limitation Rules and Regulations (43 CFR Part 426); (iii) the water requirements of 

786 Eligible Lands within the Contractor's Service Area can be established and the quantity of 

787 Irrigation Water to be utilized is less than or equal to the quantity necessary to irrigate such 

788 Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation Water and 
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789 non-Project water are/were constructed with funds made available pursuant to Federal 

790 Reclamation law, the non-Project water will be subject to the acreage limitation provisions of 

791 Federal Reclamation law, unless the Contractor pays to the United States the incremental fee 

792 described in 43 CFR 426.15. In determining the incremental fee, the Contracting Officer will 

793 calculate annually the cost to the Federal Government, including interest, on storing or delivering 

794 non-Project water, which for purposes of this Contract shall be determined as follows: The 

795 quotient shall be the unpaid distribution system costs divided by the total irrigable acreage within 

796 the Contractor's Service Area. The incremental fee per acre is the mathematical result of such 

797 quotient times the interest rate determined using Section 202 (3) of the Act of October 12, 1982 

798 (96 Stat. 1263). Such incremental fee will be charged to each acre of excess or full cost land 

799 within the Contractor’s Service Area that receives non-Project water through Federally financed 

800 or constructed facilities. The incremental fee calculation methodology will continue during the 

801 term of this Contract absent the promulgation of a contrary Reclamation-wide rule, regulation, or 

802 policy adopted after the Contractor has been afforded the opportunity to review and comment on 

803 the proposed rule, regulation, or policy. If such rule, regulation, or policy is adopted it shall 

804 supercede this provision. 

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

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

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

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

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

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

811 facilities and deliver said water to lands within the Contractor’s Service Area, including 

812 Ineligible Lands, subject to payment to the United States and/or to any applicable Operating 

813 Non-Federal Entity of an appropriate rate as determined by the applicable Project ratesetting 
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814 policy, the RRA, and the Project use power policy, if such Project use power policy is applicable, 

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

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

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

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

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

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

821 the Project facilities. 

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

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

824 introduced into or after it is delivered from the Project facilities. The Contractor hereby releases 

825 and agrees to defend and indemnify the United States and the Operating Non-Federal Entity, and 

826 their respective officers, agents, and employees, from any claim for damage to persons or 

827 property, direct or indirect, resulting from the acts of the Contractor, its officers’, employees’, 

828 agents’ or assigns’, act(s) in (i) extracting or diverting non-Project water from any source, or (ii) 

829 diverting such non-Project water into Project facilities. 

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

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

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

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

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

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

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

837 non-Project contractors. 
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838 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

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

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

848 statute or regulation. 

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

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

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

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

853 with the Contractor to the extent reasonably practicable. 

854 COORDINATION AND COOPERATION

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

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

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

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

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

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

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

862 coordination, and cooperation provided for hereunder shall extend to all provisions of this 
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863 Contract. Each party shall retain exclusive decision making authority for all actions, opinions, 

864 and determinations to be made by the respective party. 

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

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

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

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

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

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

871 a real-time basis. 

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

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

874 intent: 

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

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

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

878 partnerships to improve water supply, water quality, and reliability. 

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

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

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

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

883 State of California to seek improved water resource management. 

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

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

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

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

888 management activities, and other issues as appropriate. 
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889 (d) Without limiting the contractual obligations of the Contracting Officer 

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

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

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

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

894 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

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

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

903 associated with a delinquent payment. 

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

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

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

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

908 determined as of the due date and remain fixed for the duration of the delinquent period. 

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

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

911 accrued interest, and finally to the overdue payment. 

912 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

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

923 nondiscrimination clause. 
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924 (b) The Contractor will, in all solicitations or advertisements for employees 

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

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

927 national origin. 

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

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

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

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

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

933 employees and applicants for employment. 

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

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

936 of the Secretary of Labor. 

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

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

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

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

941 such rules, regulations, and orders. 

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

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

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

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

946 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

947 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

948 otherwise provided by law. 

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

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

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

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

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

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

955 Provided, however, that in the event the Contractor becomes involved in, or is threatened with, 

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

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

958 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

962 of individual water users in their obligations to the Contractor. 
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963 (b) The payment of charges becoming due hereunder is a condition precedent 

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

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

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

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

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

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

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

971 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

973 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

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

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

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

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

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

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

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

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

982 including permitting officials of the United States to inspect premises, programs, and documents. 

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

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

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

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

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

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

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

990 enforcement thereof. 

991 PRIVACY ACT COMPLIANCE

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

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

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

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

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

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

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

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

1000 considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m). 
Contract No. 14-06-200-8310A-LTR1 

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1001 (c) The Contracting Officer or a designated representative shall provide the 

1002 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau 

1003 of Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--

1004 Interior, Reclamation-31) which govern the maintenance, safeguarding, and disclosure of 

1005 information contained in the Landholder's certification and reporting records. 

1006 (d) The Contracting Officer shall designate a full-time employee of the 

1007 Bureau of Reclamation to be the System Manager who shall be responsible for making decisions 

1008 on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The 

1009 Contractor is authorized to grant requests by individuals for access to their own records. 

1010 (e) The Contractor shall forward promptly to the System Manager each 

1011 proposed denial of access under 43 CFR 2.64; and each request for amendment of records filed 

1012 under 43 CFR 2.71; notify the requester accordingly of such referral; and provide the System 

1013 Manager with information and records necessary to prepare an appropriate response to the 

1014 requester. These requirements do not apply to individuals seeking access to their own 

1015 certification and reporting forms filed with the Contractor pursuant to 43 CFR 426.18, unless the 

1016 requester elects to cite the Privacy Act as a basis for the request. 

1017 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1018 25. In addition to all other payments to be made by the Contractor pursuant to this 

1019 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1020 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

1021 of direct cost incurred by the United States for work requested by the Contractor associated with 

1022 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

1023 and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

1024 to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

1025 contract administration. 

1026 WATER CONSERVATION

1027 26. (a) Prior to the delivery of water provided from or conveyed through 

1028 Federally constructed or Federally financed facilities pursuant to this Contract, each Member 

1029 Unit which has a subcontract shall be implementing an effective water conservation and 

1030 efficiency program based on the Member Unit’s water conservation plan that has been 

1031 determined by the Contracting Officer to meet the conservation and efficiency criteria for 

1032 evaluating water conservation plans established under Federal law. The water conservation and 
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1033 efficiency program shall contain definite water conservation objectives, appropriate 

1034 economically feasible water conservation measures, and time schedules for meeting those 

1035 objectives. Continued Project Water delivery pursuant to this Contract shall be contingent upon 

1036 the Member Unit’s continued implementation of such water conservation program. In the event 

1037 the Member Unit’s water conservation plan or any revised water conservation plan completed 

1038 pursuant to subdivision (d) of Article 26 of this Contract have not yet been determined by the 

1039 Contracting Officer to meet such criteria, due to circumstances which the Contracting Officer 

1040 determines are beyond the control of the Member Unit, water deliveries shall be made under this 

1041 Contract so long as the Member Unit diligently works with the Contracting Officer to obtain 

1042 such determination at the earliest practicable date, and thereafter the Member Unit immediately 

1043 begins implementing its water conservation and efficiency program in accordance with the time 

1044 schedules therein. 

1045 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1046 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Member Unit shall 

1047 implement the Best Management Practices identified by the time frames issued by the California 

1048 Urban Water Conservation Council for such M&I Water unless any such practice is determined 

1049 by the Contracting Officer to be inappropriate for the Member Unit. 

1050 (c) The Member Unit shall submit to the Contracting Officer a report on the 

1051 status of its implementation of the water conservation plan on the reporting dates specified in the 

1052 then existing conservation and efficiency criteria established under Federal law. 

1053 (d) At five-year intervals, the Contractor shall revise its water conservation 

1054 plan to reflect the then-current conservation and efficiency criteria for evaluating water 

1055 conservation plans established under Federal law and submit such revised water management 

1056 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

1057 determine if the water conservation plan meets Reclamation’s then-current conservation and 

1058 efficiency criteria for evaluating water conservation plans established under Federal law. 
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1059 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

1060 shall be described in the Contractor’s water conservation plan. 

1061 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1062 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

1063 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

1064 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

1065 Area. Any such water shall not be considered Project Water under this Contract. In addition, 

1066 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

1067 any water user within the Contractor's Service Area acquires or has available under any other 

1068 contract pursuant to Federal Reclamation law. 

1069 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

1070 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1071 and responsibility for funding a portion of the costs of such O&M, have been transferred to the 

1072 Operating Non-Federal Entity by separate agreement between the United States and the 

1073 Operating Non-Federal Entity. That separate agreement shall not interfere with or affect the 

1074 rights or obligations of the Contractor or the United States hereunder. 

1075 (b) The Contracting Officer has previously notified the Contractor in writing 

1076 that the O&M of a portion of the Project facilities which serve the Contractor has been 

1077 transferred to the Operating Non-Federal Entity, and therefore, the Contractor shall pay directly 

1078 to the Operating Non-Federal Entity, or to any successor approved by the Contracting Officer 

1079 under the terms and conditions of the separate agreement between the United States and the 

1080 Operating Non-Federal Entity described in subdivision (a) of this Article, all rates, charges, or 

1081 assessments of any kind, including any assessment for reserve funds, which the Operating Non1082 Federal Entity or such successor determines, sets, or establishes for the O&M of the portion of 

1083 the Project facilities operated and maintained by the Operating Non-Federal Entity or such 

1084 successor. Such direct payments to the Operating Non-Federal Entity or such successor shall not 
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1085 relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

1086 of the Project Rates, Charges, and Tiered Pricing Component(s) except to the extent the 

1087 Operating Non-Federal Entity collects payments on behalf of the United States in accordance 

1088 with the separate agreement identified in subdivision (a) of this Article. 

1089 (c) For so long as the O&M of any portion of the Project facilities serving the 

1090 Contractor is performed by the Operating Non-Federal Entity, or any successor thereto, the 

1091 Contracting Officer shall adjust those components of the Rates for Water Delivered under this 

1092 Contract representing the cost associated with the activity being performed by the Operating 

1093 Non-Federal Entity or its successor. 

1094 (d) In the event the O&M of the Project facilities operated and maintained by 

1095 the Operating Non-Federal Entity is re-assumed by the United States during the term of this 

1096 Contract, the Contracting Officer shall so notify the Contractor, in writing, and present to the 

1097 Contractor a revised Exhibit “B” which shall include the portion of the Rates to be paid by the 

1098 Contractor for Project Water under this Contract representing the O&M costs of the portion of 

1099 such Project facilities which have been re-assumed. The Contractor shall, thereafter, in the 

1100 absence of written notification from the Contracting Officer to the contrary, pay the Rates, 

1101 Charges, and Tiered Pricing Component(s) specified in the revised Exhibit “B” directly to the 

1102 United States in compliance with Article 7 of this Contract. 

1103 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1104 29. The expenditure or advance of any money or the performance of any obligation of 

1105 the United States under this Contract shall be contingent upon appropriation or allotment of 

1106 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

1107 obligations under this Contract. No liability shall accrue to the United States in case funds are 

1108 not appropriated or allotted. 

1109 BOOKS, RECORDS, AND REPORTS

1110 30. (a) The Contractor shall establish and maintain accounts and other books and 

1111 records pertaining to administration of the terms and conditions of this Contract, including: the 

1112 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1113 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 
Contract No. 14-06-200-8310A-LTR1 

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1114 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

1115 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

1116 Officer may require. Subject to applicable Federal laws and regulations, each party to this 

1117 Contract shall have the right during office hours to examine and make copies of the other party's 

1118 books and records relating to matters covered by this Contract. 

1119 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

1120 books, records, or other information shall be requested from the Contractor by the Contracting 

1121 Officer unless such books, records, or information are reasonably related to the administration or 

1122 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1123 time within which to provide the requested books, records, or information. 

1124 (c) At such time as the Contractor provides information to the Contracting 

1125 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided 

1126 to the Operating Non-Federal Entity. 

1127 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1128 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1129 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1130 therein shall be valid until approved in writing by the Contracting Officer. 

 

1131 (b) The assignment of any right or interest in this Contract by either party 

1132 shall not interfere with the rights or obligations of the other party to this Contract absent the 

1133 written concurrence of said other party. 

1134 (c) The Contracting Officer shall not unreasonably condition or withhold his 

1135 approval of any proposed assignment. 

1136 SEVERABILITY

1137 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

1138 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

1139 an association or other form of organization whose primary function is to represent parties to 

1140 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1141 enforceability of a provision included in this Contract and said person, entity, association, or 

1142 organization obtains a final court decision holding that such provision is legally invalid or 

1143 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 
Contract No. 14-06-200-8310A-LTR1 

44

1144 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

1145 final court decision identify by mutual agreement the provisions in this Contract which must be 

1146 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

1147 The time periods specified above may be extended by mutual agreement of the parties. Pending 

1148 the completion of the actions designated above, to the extent it can do so without violating any 

1149 applicable provisions of law, the United States shall continue to make the quantities of Project 

1150 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

1151 Contract which were not found to be legally invalid or unenforceable in the final court decision. 

1152 RESOLUTION OF DISPUTES

1153 33. Should any dispute arise concerning any provisions of this Contract, or the 

1154 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

1155 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

1156 Officer referring any matter to Department of Justice, the party shall provide to the other party 

1157 30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

1158 required where a delay in commencing an action would prejudice the interests of the party that 

1159 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

1160 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

1161 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

1162 United States may have. 

1163 OFFICIALS NOT TO BENEFIT

1164 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1165 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1166 manner as other water users or landowners. 

1167 CHANGES IN CONTRACTOR’S SERVICE AREA

1168 35. (a) While this Contract is in effect, no change may be made in the 

1169 Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

1170 or otherwise, except upon the Contracting Officer's written consent. 
Contract No. 14-06-200-8310A-LTR1 

45

1171 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1172 Officer will notify the Contractor of any additional information required by the Contracting 

1173 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

1174 schedule for timely completion of the process. Such process will analyze whether the proposed 

1175 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

1176 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

1177 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

1178 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

1179 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

1180 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

1181 be paid in accordance with Article 25 of this Contract. 

1182 FEDERAL LAWS

1183 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1184 the validity or application in connection with the performance of the terms and conditions of this 

1185 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1186 the terms and conditions of this Contract unless and until relief from application of such Federal 

1187 law or regulation to the implementing provision of the Contract is granted by a court of 

1188 competent jurisdiction. 

1189 NOTICES

1190 37. Any notice, demand, or request authorized or required by this Contract shall be 

1191 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1192 delivered to the Area Manager, Bureau of Reclamation, Northern California Area Office, 16349 

1193 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalf of the United States, when 

1194 mailed, postage prepaid, or delivered to the Board of Supervisors of the County of Colusa, 546 

1195 Jay Street, Colusa, California 95932. The designation of the addressee or the address may be 

1196 changed by notice given in the same manner as provided in this Article for other notices. 

1197 CONFIRMATION OF CONTRACT

1198 38. The Contractor, after the execution of this Contract, shall promptly seek to secure 

1199 a decree of a court of competent jurisdiction of the State of California, confirming the execution 
Contract No. 14-06-200-8310A-LTR1 

46

1200 of this Contract. The Contractor shall furnish the United States a certified copy of the final 

1201 decree, the validation proceedings, and all pertinent supporting records of the court approving 

1202 and confirming this Contract, and decreeing and adjudging it to be lawful, valid, and binding on 

1203 the Contractor. 

1204 CONTRACTS WITH MEMBER UNITSBRESALE OF WATER

1205 39. The Contractor may enter into subcontracts with Member Units for the resale and 

1206 distribution of water furnished pursuant to this Contract within the Contractor=s Service Area. 

1207 Each such Member Unit subcontract shall be subject to the obligations and limitations imposed, 

1208 and to the rights granted, by this Contract and shall so provide. The terms and conditions of each 

1209 Member Unit=s subcontract shall be approved by the Contracting Officer prior to the execution of 

1210 such Member Unit subcontract, which approval shall be limited to a determination that the 

1211 subcontract is consistent with the provisions of this Contract. Nothing herein or therein 

1212 contained shall be deemed in any way to release the Contractor from its primary liability to the 

1213 United States hereunder with respect to each and all of the obligations undertaken by the 

1214 Contractor in this Contract. 
Contract No. 14-06-200-8310A-LTR1 

47

1215 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

1216 the day and year first above written. 

1217 THE UNITED STATES OF AMERICA 

1218 By: ______________________________________ 

1219 Regional Director, Mid-Pacific Region 

1220 Bureau of Reclamation 

1221 COUNTY OF COLUSA 

1222 By: ______________________________________ 

1223 Chairperson of the Board of Supervisors 

1224 Attest: 

1225 By: _______________________________ 

1226 Secretary of the Board of Supervisors 

1227 (I:\LTRC\LTRC Drafts\04-19-2004 County of Colusa Final LTRC Draft Contract.doc) 
Contract No. 14-06-200-8310A-LTR1 

EXHIBIT A

[Map or Description of Contractor’s Service Area]
Contract No. 14-06-200-8310A -LTR1 

EXHIBIT B-1 

Rates and Charges 

COUNTY OF COLUSA 

(Colusa County Water District) 

 

 2003 Rates Per Acre-Foot 

 Irrigation M&I

CONTRACT RATE * $18.49 

(1st Tier - <80% of Contract Total) 

 

2ND TIER [>80% <90% of Contract Total] $38.00 

(Sec. 202(3) Full Cost Rate + Contract Rate/ 2) ** 

 

3RD TIER [> 90% of Contract Total] $57.51 

(Sec. 202(3) Full Cost Rate) ** 

FULL-COST RATES: ** 

RRA Section 202(3) rate is applicable to 

Qualified Recipients or to Limited 

Recipients receiving irrigation water 

on or before October 1, 1981. $81.48 

RRA Section 205(a)(3) rate is applicable 

to Limited Recipients that did not 

receive irrigation water on or before 

October 1, 1981. $108.75 

SURCHARGES UNDER P.L. 102-575 TO 

RESTORATION FUND*** 

Restoration Payments [3407(d)(2)(A)] $0.00 

* Capital component of cost-of-service rate is not included in Contract Rate due to ability to pay 

relief for Contractor established pursuant to the results of the Payment Capacity Analysis for the 

Tehama-Colusa Water Users Association Service Area as announced by letter dated February 10, 

1995. 

** Contractors with 9(d) distribution systems do not have the 9(d) Full Cost component included 

for tiered pricing calculations. See Article 1(j). 

*** These surcharges are payments in addition to the water rates and are determined pursuant to Title 

XXXIV of P.L. 102-575. Restoration Fund surcharges under P.L. 102-575 are on a fiscal year basis (10/1 

-9/30). Contractors with ability to pay relief do not pay Restoration Fund charges for irrigation water. 

Note: Additional detail of rate components is available on the Internet at 

http:/www.mp.usbr.gov/ cvpwaterrates/.
Contract No. 14-06-200-8310A -LTR1 

EXHIBIT B-2 

Rates and Charges 

COUNTY OF COLUSA 

(Cortina Water District) 

 

 2003 Rates Per Acre-Foot 

 Irrigation M&I

CONTRACT RATE * $15.48 

(1st Tier - <80% of Contract Total) 

 

2ND TIER [>80% <90% of Contract Total] $30.02 

(Sec. 202(3) Full Cost Rate + Contract Rate/ 2) ** 

 

3RD TIER [> 90% of Contract Total] $44.56 

(Sec. 202(3) Full Cost Rate) ** 

FULL-COST RATES: ** 

RRA Section 202(3) rate is applicable to 

Qualified Recipients or to Limited 

Recipients receiving irrigation water 

on or before October 1, 1981. $44.56 

RRA Section 205(a)(3) rate is applicable 

to Limited Recipients that did not 

receive irrigation water on or before 

October 1, 1981. $56.71 

SURCHARGES UNDER P.L. 102-575 TO 

RESTORATION FUND*** 

Restoration Payments [3407(d)(2)(A)] $0.00 

* Capital component of cost-of-service rate is not included in Contract Rate due to ability to pay 

relief for Contractor established pursuant to the results of the Payment Capacity Analysis for the 

Tehama-Colusa Water Users Association Service Area as announced by letter dated February 10, 

1995. 

** Contractors with 9(d) distribution systems do not have the 9(d) Full Cost component included 

for tiered pricing calculations. See Article 1(j). 

*** These surcharges are payments in addition to the water rates and are determined pursuant to Title 

XXXIV of P.L. 102-575. Restoration Fund surcharges under P.L. 102-575 are on a fiscal year basis (10/1 

-9/30). Contractors with ability to pay relief do not pay Restoration Fund charges for irrigation water. 

Note: Additional detail of rate components is available on the Internet at 

http:/www.mp.usbr.gov/ cvpwaterrates/.
Contract No. 14-06-200-8310A -LTR1 

EXHIBIT B-3 

Rates and Charges 

COUNTY OF COLUSA 

(4-M Water District) 

 

 2003 Rates Per Acre-Foot 

 Irrigation M&I

CONTRACT RATE * $13.46 

(1st Tier - <80% of Contract Total) 

 

2ND TIER [>80% <90% of Contract Total] $24.06 

(Sec. 202(3) Full Cost Rate + Contract Rate/ 2) ** 

 

3RD TIER [> 90% of Contract Total] $34.66 

(Sec. 202(3) Full Cost Rate) ** 

FULL-COST RATES: ** 

RRA Section 202(3) rate is applicable to 

Qualified Recipients or to Limited 

Recipients receiving irrigation water 

on or before October 1, 1981. $34.66 

RRA Section 205(a)(3) rate is applicable 

to Limited Recipients that did not 

receive irrigation water on or before 

October 1, 1981. $42.05 

SURCHARGES UNDER P.L. 102-575 TO 

RESTORATION FUND*** 

Restoration Payments [3407(d)(2)(A)] $0.00 

* Capital component of cost-of-service rate is not included in Contract Rate due to ability to pay 

relief for Contractor established pursuant to the results of the Payment Capacity Analysis for the 

Tehama-Colusa Water Users Association Service Area as announced by letter dated February 10, 

1995. 

** Contractors with 9(d) distribution systems do not have the 9(d) Full Cost component included 

for tiered pricing calculations. See Article 1(j). 

*** These surcharges are payments in addition to the water rates and are determined pursuant to Title 

XXXIV of P.L. 102-575. Restoration Fund surcharges under P.L. 102-575 are on a fiscal year basis (10/1 

-9/30). Contractors with ability to pay relief do not pay Restoration Fund charges for irrigation water. 

Note: Additional detail of rate components is available on the Internet at 

http:/www.mp.usbr.gov/ cvpwaterrates/. 
Contract No. 14-06-200-8310A -LTR1 

EXHIBIT B-4 

Rates and Charges 

COUNTY OF COLUSA 

(Glenn Valley Water District) 

 

 2003 Rates Per Acre-Foot 

 Irrigation M&I

CONTRACT RATE * $16.04 

(1st Tier - <80% of Contract Total) 

 

2ND TIER [>80% <90% of Contract Total] $26.00 

(Sec. 202(3) Full Cost Rate + Contract Rate/ 2) ** 

 

3RD TIER [> 90% of Contract Total] $35.96 

(Sec. 202(3) Full Cost Rate) ** 

FULL-COST RATES: ** 

RRA Section 202(3) rate is applicable to 

Qualified Recipients or to Limited 

Recipients receiving irrigation water 

on or before October 1, 1981. $35.96 

RRA Section 205(a)(3) rate is applicable 

to Limited Recipients that did not 

receive irrigation water on or before 

October 1, 1981. $43.35 

SURCHARGES UNDER P.L. 102-575 TO 

RESTORATION FUND*** 

Restoration Payments [3407(d)(2)(A)] $0.00 

* Capital component of cost-of-service rate is not included in Contract Rate due to ability to pay 

relief for Contractor established pursuant to the results of the Payment Capacity Analysis for the 

Tehama-Colusa Water Users Association Service Area as announced by letter dated February 10, 

1995. 

** Contractors with 9(d) distribution systems do not have the 9(d) Full Cost component included 

for tiered pricing calculations. See Article 1(j). 

*** These surcharges are payments in addition to the water rates and are determined pursuant to Title 

XXXIV of P.L. 102-575. Restoration Fund surcharges under P.L. 102-575 are on a fiscal year basis (10/1 

-9/30). Contractors with ability to pay relief do not pay Restoration Fund charges for irrigation water. 

Note: Additional detail of rate components is available on the Internet at 

http:/www.mp.usbr.gov/ cvpwaterrates/.
Contract No. 14-06-200-8310A-LTR1 

EXHIBIT B-5 

Rates and Charges 

COUNTY OF COLUSA 

(Holthouse Water District) 

 

 2003 Rates Per Acre-Foot 

 Irrigation M&I

CONTRACT RATE * $13.72 

(1st Tier - <80% of Contract Total) 

 

2ND TIER [>80% <90% of Contract Total] $24.17 

(Sec. 202(3) Full Cost Rate + Contract Rate/ 2) ** 

 

3RD TIER [> 90% of Contract Total] $34.62 

(Sec. 202(3) Full Cost Rate) ** 

FULL-COST RATES: ** 

RRA Section 202(3) rate is applicable to 

Qualified Recipients or to Limited 

Recipients receiving irrigation water 

on or before October 1, 1981. $34.62 

RRA Section 205(a)(3) rate is applicable 

to Limited Recipients that did not 

receive irrigation water on or before 

October 1, 1981. $42.01 

SURCHARGES UNDER P.L. 102-575 TO 

RESTORATION FUND*** 

Restoration Payments [3407(d)(2)(A)] $0.00 

* Capital component of cost-of-service rate is not included in Contract Rate due to ability to pay 

relief for Contractor established pursuant to the results of the Payment Capacity Analysis for the 

Tehama-Colusa Water Users Association Service Area as announced by letter dated February 10, 

1995. 

** Contractors with 9(d) distribution systems do not have the 9(d) Full Cost component included 

for tiered pricing calculations. See Article 1(j). 

*** These surcharges are payments in addition to the water rates and are determined pursuant to Title 

XXXIV of P.L. 102-575. Restoration Fund surcharges under P.L. 102-575 are on a fiscal year basis (10/1 

-9/30). Contractors with ability to pay relief do not pay Restoration Fund charges for irrigation water. 

Note: Additional detail of rate components is available on the Internet at 

http:/www.mp.usbr.gov/ cvpwaterrates/.
Contract No. 14-06-200-8310A-LTR1 

EXHIBIT B-6 

Rates and Charges 

COUNTY OF COLUSA 

(La Grande Water District) 

 

 2003 Rates Per Acre-Foot 

 Irrigation M&I

CONTRACT RATE * $14.59 

(1st Tier - <80% of Contract Total) 

 

2ND TIER [>80% <90% of Contract Total] $24.72 

(Sec. 202(3) Full Cost Rate + Contract Rate/ 2) ** 

 

3RD TIER [> 90% of Contract Total] $34.85 

(Sec. 202(3) Full Cost Rate) ** 

FULL-COST RATES: ** 

RRA Section 202(3) rate is applicable to 

Qualified Recipients or to Limited 

Recipients receiving irrigation water 

on or before October 1, 1981. $34.85 

RRA Section 205(a)(3) rate is applicable 

to Limited Recipients that did not 

receive irrigation water on or before 

October 1, 1981. $42.25 

SURCHARGES UNDER P.L. 102-575 TO 

RESTORATION FUND*** 

Restoration Payments [3407(d)(2)(A)] $0.00 

* Capital component of cost-of-service rate is not included in Contract Rate due to ability to pay 

relief for Contractor established pursuant to the results of the Payment Capacity Analysis for the 

Tehama-Colusa Water Users Association Service Area as announced by letter dated February 10, 

1995. 

** Contractors with 9(d) distribution systems do not have the 9(d) Full Cost component included 

for tiered pricing calculations. See Article 1(j). 

*** These surcharges are payments in addition to the water rates and are determined pursuant to Title 

XXXIV of P.L. 102-575. Restoration Fund surcharges under P.L. 102-575 are on a fiscal year basis (10/1 

-9/30). Contractors with ability to pay relief do not pay Restoration Fund charges for irrigation water. 

Note: Additional detail of rate components is available on the Internet at 

http:/www.mp.usbr.gov/ cvpwaterrates/. 
Contract No. 14-06-200-8310A-LTR1 

EXHIBIT B-7 

Rates and Charges 

COUNTY OF COLUSA 

(Myers-Marsh Mutual Water Company) 

 

 2003 Rates Per Acre-Foot 

 Irrigation M&I

CONTRACT RATE * $20.06 

(1st Tier - <80% of Contract Total) 

 

2ND TIER [>80% <90% of Contract Total] $29.19 

(Sec. 202(3) Full Cost Rate + Contract Rate/ 2) ** 

 

3RD TIER [> 90% of Contract Total] $38.31 

(Sec. 202(3) Full Cost Rate) ** 

FULL-COST RATES: ** 

RRA Section 202(3) rate is applicable to 

Qualified Recipients or to Limited 

Recipients receiving irrigation water 

on or before October 1, 1981. $38.31 

RRA Section 205(a)(3) rate is applicable 

to Limited Recipients that did not 

receive irrigation water on or before 

October 1, 1981. $45.66 

SURCHARGES UNDER P.L. 102-575 TO 

RESTORATION FUND*** 

Restoration Payments [3407(d)(2)(A)] $0.00 

* Capital component of cost-of-service rate is not included in Contract Rate due to ability to pay 

relief for Contractor established pursuant to the results of the Payment Capacity Analysis for the 

Tehama-Colusa Water Users Association Service Area as announced by letter dated February 10, 

1995. 

** Contractors with 9(d) distribution systems do not have the 9(d) Full Cost component included 

for tiered pricing calculations. See Article 1(j). 

*** These surcharges are payments in addition to the water rates and are determined pursuant to Title 

XXXIV of P.L. 102-575. Restoration Fund surcharges under P.L. 102-575 are on a fiscal year basis (10/1 

-9/30). Contractors with ability to pay relief do not pay Restoration Fund charges for irrigation water. 

Note: Additional detail of rate components is available on the Internet at 

http:/www.mp.usbr.gov/ cvpwaterrates/.