Irrigation and M&I 

Panoche Interim Contract No. 14-06-200-7864A-IR1 

 

 

JUNE 21, 2007 DRAFT 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

PANOCHE WATER DISTRICT 

PROVIDING FOR PROJECT WATER SERVICE

SAN LUIS UNIT AND DELTA DIVISION

Table of Contents

Article No. Title Page No.

Preamble 1 

 Explanatory Recitals ............................................................................................ 2-6 

 1 Definitions .........................................................................................................6-10 

 2 Term of Contract and Right to Use of Water ................................................. 10-12

 3 Water to be Made Available and Delivered to the Contractor ........................12-18 

 4 Time for Delivery of Water ............................................................................. 18-19 

 5 Point of Diversion and Responsibility for Distribution of Water.................... 19-21 

 6 Measurement of Water Within the Contractor’s Service Area........................21-22 

 7 Rates and Method of Payment for Water......................................................... 23-27 

 8 Non-Interest Bearing Operation and Maintenance Deficits ................................. 28 

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

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

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

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

 13 Unavoidable Groundwater Percolation................................................................. 34 

 14 Rules and Regulations .......................................................................................... 34 

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

 16 Quality of Water .............................................................................................. 34-35

 17 Water Acquired by the Contractor Other Than From the United States .........35-38 

 18 Opinions and Determinations ............................................................................... 38 

 19 Coordination and Cooperation.........................................................................38-39 

 20 Charges for Delinquent Payments ................................................................... 39-40
Irrigation and M&I 

Panoche Interim Contract No. 14-06-200-7864A-IR1 

 

Table of Contents - continued

Article No. Title Page No.

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

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

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

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

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

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

 27 Existing or Acquired Water or Water Rights................................................... 45-47 

 28 Operation and Maintenance by San Luis & Delta-Mendota Water Authority 47-48 

 28.1 Operation and Maintenance by California Department of Water Resources ..48-49 

 28.2 Operation and Maintenance by the Contractor................................................49-52 

 28.3 Pumping Plants, Power for Pumping Plants, and Transfer of Operation and 

 Maintenance to the Contractor ...................................................................... 52 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 53 

 30 Books, Records, and Reports...........................................................................53-54 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 54 

 32 Severability ......................................................................................................54-55 

 34 Officials Not to Benefit......................................................................................... 55 

 35 Changes in Contractor’s Service Area.............................................................55-56 

 36 Federal Laws......................................................................................................... 56 

 37 Notices .................................................................................................................. 56

 Signature Page ...................................................................................................... 57 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
Irrigation and M&I 

Panoche Interim Contract No. 14-06-200-7864A-IR1 

. 

1 

2 

3 

4 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

5 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

6 AND PANOCHE WATER DISTRICT

7 PROVIDING FOR PROJECT WATER SERVICE FROM

8 SAN LUIS UNIT AND DELTA DIVISION

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

THIS CONTRACT, made this 1st day of January, 2009, in pursuance generally of the Act of 

June 17, 1902 (32 Stat. 388), and acts amendatory or supplementary thereto, including, but not 

limited to, the Acts of August 26, 1937 (50 Stat. 844), as amended and supplemented, August 4, 1939 

(53 Stat. 1187), as amended and supplemented, July 2, 1956 (70 Stat. 483), June 3, 1960 (74 Stat. 

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

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

hereinafter referred to as Federal Reclamation law, between THE UNITED STATES OF AMERICA, 

hereinafter referred to as the United States, and PANOCHE WATER DISTRICT, hereinafter referred 

to as the Contractor, a public agency of the State of California, duly organized, existing, and acting 

pursuant to the laws thereof; 

 WITNESSETH, That: 

20 EXPLANATORY RECITALS

21 

22 

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

Project, (Project) California, for diversion, storage, carriage, distribution and beneficial use, for flood 
2

23 

24 

25 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

40 

41 

42 

43 

44 

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

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

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

San Joaquin River and their tributaries; and 

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

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

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

Contractor pursuant to the terms of this Contract; and 

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

to California law for operation of the Project; and 

[4th] WHEREAS, the United States and the Contractor entered into Contract No. No. 14-

06-200-7864A as amended, which provided the Contractor, Project Water from Project facilities from 

August 30, 1974 to December 31, 2008, hereinafter referred to as the Existing Contract; and 

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

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

binding agreements identified as Binding Agreement No. 14-06-200-7864A-BA, which sets out the 

terms pursuant to which the Contractor agreed to renew the Existing Contract before the expiration 

date after completion of the Programmatic Environmental Impact Statement (PEIS) and other 

appropriate environmental documentation and negotiation of a renewal contract; and which also sets 

out the consequences of a subsequent decision not to renew: and 

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

Existing Contract following completion of appropriate environmental documentation, including the 
3

45 

46 

47 

48 

49 

50 

51 

52 

53 

54 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

PEIS, which was required by Section 3409 of the CVPIA, pursuant to the National Environmental 

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

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

 [7th] WHEREAS, rights of renewal of Existing Contract and to convert said contract to a 

contract as provided by subsection (d), Section 9 of the Act of August 4, 1939 (53 Stat. 1187), are set 

forth in said contract; and 

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

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

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

and 

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

its obligations under the Existing Contract; and 

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

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

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

Water to be made available to it pursuant to this Contract; and 

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

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

essential portion of its water supply; and 

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

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

[12.1] WHEREAS, the United States Court of Appeals for the Ninth Circuit has held that 
4

67 

68 

69 

70 

71 

72 

73 

74 

75 

76 

77 

78 

79 

80 

81 

82 

83 

84 

85 

86 

87 

88 

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

provide drainage service to the San Luis Unit; and 

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

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

Project Water made available under this Contract, and all renewals thereof; and 

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

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

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

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

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

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

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

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

relevant circumstances; and 

[12.5] WHEREAS, the Department of the Interior, Bureau of Reclamation published in June 2006 

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

alternatives to provide agricultural drainage service to the San Luis Unit; and 

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

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

Project purposes; and 

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

provide for reliable Project Water supplies; to control costs of those supplies; to achieve repayment 
5

89 

90 

91 

92 

93 

94 

95 

96 

97 

98 

99 

100 

101 

102 

103 

104 

105 

106 

107 

108 

109 

110 

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

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

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

relative to the Project; and 

[14.1] WHEREAS, the parties intend by this Contract to develop a more cooperative 

relationship in order to achieve their mutual goals; and 

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

rescheduling and conveyance of Project Water and non-Project water under this Contract as tools to 

minimize the impacts of Conditions of Shortage and to maximize the beneficial use of water; and 

[15.1] WHEREAS, the parties desire and intend that this Contract not provide a disincentive 

to the Contractor in continuing to carry out the beneficial activities set out in the Explanatory Recital 

immediately above; and 

 [15.2] WHEREAS, in order to continue water service provided under Project water service 

contracts that expire prior to the completion of all appropriate environmental documentation, the 

United States intends to execute interim renewal contracts for a period not to exceed three (3) Years 

in length, and for successive interim periods of not more than two (2) Years in length, until such 

appropriate environmental documentation, is finally completed, at which time the Secretary shall, 

pursuant to Federal Reclamation law, upon request of the Contractor, enter into a long-term renewal 

contract for a period of twenty-five (25) Years; and may thereafter renew such long-term renewal 

contracts for successive periods not to exceed twenty-five (25) Years each; and 

 [15.3] WHEREAS, the Secretary intends to assure uninterrupted water service and continuity 

of contract through the process set fourth in Article 2 hereof; and 
6

111 

112 

113 

114 

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

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

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

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

115 DEFINITIONS

116 

117 

118 

119 

120 

121 

122 

123 

124 

125 

126 

127 

128 

129 

130 

131 

132 

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

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

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

dates inclusive; 

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

addition to the Rates as determined annually by the Contracting Officer pursuant to this Contract; 

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

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

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

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

regulation; 

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

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

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

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

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

amendment of this Contract; 
7

133 

134 

135 

136 

137 

138 

139 

140 

143 

146 

147 

148 

149 

150 

151 

152 

153 

154 

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

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

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

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

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

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

water conveyed through the Delta-Mendota Canal; 

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

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

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

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

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

145 Reclamation law; 

(j) “Omitted” 

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

delivered in accordance with Section 204 of the RRA; 

(l) “Omitted” 

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

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

thereto, and watering of livestock; 

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

nonexempt land, as provided in 43 CFR 426.2; 
8

155 

156 

157 

158 

159 

160 

161 

162 

163 

164 

165 

166 

167 

168 

169 

170 

171 

172 

173 

174 

175 

176 

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

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

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

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

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

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

(p) “Omitted” 

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

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

Project facilities; 

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

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

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

was entered into, the Operating Non-Federal Entities were the San Luis & Delta-Mendota Water 

Authority and, with respect to San Luis Unit facilities and the California Department of Water 

Resources; 

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

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

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

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

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

delivered by the Secretary in accordance with the statutes authorizing the Project and in accordance 
9

177 

178 

179 

180 

181 

182 

183 

184 

185 

186 

187 

188 

189 

190 

191 

192 

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

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

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

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

(w) Omitted 

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

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

through any agency of the Department of the Interior; 

(y) Omitted 

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

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

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

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

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

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

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

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

194 

195 

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

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

196 TERM OF CONTRACT - RIGHT TO USE OF WATER

197 

198 

2. (a) This Contract shall be effective from January 1, 2009, and shall remain in 

effect through February 28, 2011, and thereafter will be renewed as described in this Article. Except 
10

199 

200 

201 

202 

203 

204 

205 

206 

as provided in subdivision (b) of this Article, until completion of all appropriate environmental 

review, and provided that the Contractor has complied with all the terms and conditions of the 

interim renewal contract in effect for the period immediately preceding the requested successive 

interim renewal contract, this Contract will be renewed, upon request of the Contractor, for 

successive interim periods each of which shall be no more than two (2) Years in length. Also, except 

as provided in subdivision (b) of this Article, in order to promote orderly and cost effective contract 

administration, the terms and conditions in subsequent interim renewal contracts shall be identical to 

the terms and conditions in the interim renewal contract immediately preceding the subsequent 

interim renewal contract: Provided, however, That each party preserves the right to propose 

modification(s) in any interim renewal contract other than those described in subdivision (b) of this 

Article, in which case the parties shall negotiate in good faith appropriate modification(s) to be 

included in any successive interim renewal contracts. Said modification(s) of each successive 

interim renewal contract shall be agreed upon within a reasonable time prior to the expiration of the 

then existing interim renewal contract. Nothing in this Article shall in any way alter the obligation 

that, upon final completion of any necessary environmental documentation, the Secretary shall, 

pursuant to Federal Reclamation law, upon request of the Contractor, enter into a long-term renewal 

contract for a period of twenty-five (25) Years and may thereafter renew such long-term renewal 

contracts for successive periods not to exceed twenty-five (25) Years each. 

207 

208 

209 

210 

211 

212 

213 

214 

215 

216 

217 

218 

219 

220 

(b) The parties have engaged and if necessary will continue to engage in good 

faith negotiations intended to permit the execution of a twenty-five (25) Year long-term renewal 

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

renewal contract@. The parties recognize the possibility that this schedule may not be met without 
11

221 

222 

223 

224 

225 

226 

227 

228 

229 

230 

231 

232 

233 

234 

235 

236 

237 

238 

239 

further negotiations. Accordingly: In the event (i) the Contractor and Contracting Officer have 

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

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

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

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

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

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

February 28, 2011, then (iv), the parties will expeditiously complete the environmental 

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

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

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

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

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

 (c) The omission of language in this Contract providing for conversion of this 

interim renewal contract or any subsequent renewals thereof to a repayment contract, pursuant to the 

Act of July 2, 1956 (70 Stat. 483), shall not prejudice the Contractor's right to assert a right to have 

such language included in subsequent renewals of this Contract or to exercise such conversion, all as 

provided by law, or to negotiate the language regarding such conversion to be included in subsequent 

renewal contracts. 

240 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

241 

242 

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

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

243 

244 

245 

246 

247 

248 

249 

250 

251 

252 

253 

254 

255 

256 

257 

259 

260 

261 

262 

263 

264 

Contracting Officer shall make available for delivery to the Contractor 94,000 acre-feet of Project 

Water for irrigation and M&I purposes. Provided, however, during the two (2) month period of 

January and February of Year, 2009, the Contracting Officer shall make available for delivery to the 

Contractor that portion of the 2008 allocation of Project Water unused by the Contractor under the 

Existing Contract. Water Delivered to the Contractor in accordance with this subdivision shall be 

scheduled and paid for pursuant to the provisions of Articles 4 and 7 of this Contract. 

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

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

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

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

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

Contract Total set forth in this Contract will not be available to the Contractor in many years. 

Nothing in this subdivision (b) of this Article shall affect the rights and obligations of the parties 

under any provision of this Contract. 

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

258 legal requirements. 

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

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

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

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

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

mutually agreeable terms. Such amendments to this Contract shall be limited solely to those changes 
13

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

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

does not trigger this right of amendment. 

265 

266 

267 

268 

269 

270 

271 

272 

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

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

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

Water or other water furnished pursuant to this Contract conducted within the Contractor’s Service 

Area which are consistent with applicable State law and result in use consistent with Federal 

Reclamation law will be allowed; Provided, That any direct recharge program(s) is (are) described in 

the Contractor’s water conservation plan submitted pursuant to Article 26 of this Contract; Provided, 

273 

274 

further, That such water conservation plan demonstrates sufficient lawful uses exist in the 

Contractor’s Service Area so that using a long-term average, the quantity of Delivered Water is 

demonstrated to be reasonable for such uses and in compliance with Federal Reclamation law. 

Groundwater recharge programs, groundwater banking programs, surface water storage programs, 

and other similar programs utilizing Project Water or other water furnished pursuant to this Contract 

conducted outside the Contractor’s Service Area may be permitted upon written approval of the 

Contracting Officer, which approval will be based upon environmental documentation, Project Water 

rights, and Project operational concerns. The Contracting Officer will address such concerns in 

regulations, policies, or guidelines. 

275 

276 

277 

278 

279 

280 

281 

282 

283 

284 

285 

286 

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

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

undertaken pursuant to Section 7 of the Endangered Species Act of 1973 (ESA), as amended, that are 
14

287 

288 

289 

290 

291 

292 

293 

294 

295 

296 

297 

298 

299 

300 

301 

302 

303 

304 

305 

306 

307 

308 

within the Contractor’s legal authority to implement. The Existing Contract, which evidences in 

excess of 34 years of diversions for irrigation and/or M&I purposes of the quantities of Project Water 

provided in subdivision (a) of Article 3 of this Contract, will be considered in developing an 

appropriate baseline for the biological assessment(s) prepared pursuant to the ESA, and any other 

needed environmental review. Nothing herein shall be construed to prevent the Contractor from 

challenging or seeking judicial relief in a court of competent jurisdiction with respect to any 

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

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

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

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

under this Article during the Year without adversely impacting other Project Contractors. At the 

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

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

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

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

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

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

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

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

and policies. Subject to existing interim renewal and long-term contractual commitments, water 

rights and operational constraints, interim renewal and long-term Project Contractors shall have a 

first right to acquire such water, including Project Water made available pursuant to Section 215 of 
15

309 

310 

311 

312 

313 

314 

315 

316 

317 

318 

319 

320 

321 

322 

323 

324 

325 

326 

327 

328 

329 

330 

the RRA. 

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

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

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

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

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

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

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

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

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

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

obligations under this Contract and any renewals thereof. Nothing in the preceding sentence shall 

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

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

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

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

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

conditions of such approval. 

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

rights necessary for the Project and to provide the water available under this Contract and any 

renewal thereof. The Contracting Officer shall not object to participation by the Contractor, in the 

capacity and to the extent permitted by law, in administrative proceedings related to the Project 
16

Water rights; Provided, that the Contracting Officer retains the right to object to the substance of the 

Contractor’s position in such a proceeding; Provided, further

331 

, That in such proceedings the 

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

use Project Water. 

332 

333 

334 

335 TIME FOR DELIVERY OF WATER

336 

337 

338 

339 

340 

341 

342 

343 

344 

345 

346 

347 

348 

349 

350 

351 

352 

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

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

declaration will be expressed in terms of Water Made Available and will be updated monthly, and 

more frequently if necessary, based on then-current operational and hydrologic conditions and a new 

declaration with changes, if any, to the Water Made Available will be made. The Contracting Officer 

shall provide forecasts of Project operations and the basis of the estimate, with relevant supporting 

information, upon the written request of the Contractor. 

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

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

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

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

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

for the Year commencing on such March 1. 

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

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

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

(d) Subject to the conditions set forth in subdivision (a) of Article 3 of this 
17

353 

354 

355 

356 

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

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

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

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

357 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

358 

359 

360 

361 

362 

363 

364 

365 

366 

367 

368 

369 

370 

371 

372 

373 

374 

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

Contract shall be delivered to the Contractor at Project facilities and any additional point or points of 

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

the Contracting Officer and the Contractor. 

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

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

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

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

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

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

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

approved in advance by the Contracting Officer. 

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

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

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

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

Officer at the point or points of delivery established pursuant to subdivision (a) of this Article. Upon 
18

375 

376 

377 

378 

379 

380 

381 

382 

383 

384 

385 

386 

387 

388 

389 

390 

391 

392 

393 

394 

395 

396 

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

investigated by the appropriate Operating Non-Federal Entity(ies) the accuracy of such 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Non-Federal Entity(ies) with the intent of creating the situation resulting in any damage or claim; (ii) 

willful misconduct of the Contracting Officer or any of its officers, employees, agents, and assigns, 

including the Operating Non-Federal Entity(ies); (iii) negligence of the Contracting Officer or any of 

its officers, employees, agents, and assigns including the Operating Non-Federal Entity(ies); (iv) a 

malfunction of facilities owned and/or operated by the United States or the Operating Non-Federal 

Entity(ies); or (v) failure of the United States, its officers, employees, agents, and assigns, including 
19

397 the Operating Non-Federal Entity(ies), to provide drainage service. 

398 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

399 

400 

401 

402 

403 

404 

405 

406 

407 

408 

409 

410 

411 

412 

413 

414 

415 

416 

417 

418 

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

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

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

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

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

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

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

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

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

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

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

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

establishing and collecting any charges, assessments, or other revenues authorized by California law. 

 The Contractor shall include a summary of all its annual surface water deliveries in the annual report 

described in subdivision (c) of Article 26 of this Contract. 

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

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

the measurement devices or water measuring methods being used or to be used to implement 

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

connections or alternative measurement programs approved by the Contracting Officer, at which such 
20

419 

420 

421 

422 

423 

424 

425 

426 

427 

428 

429 

430 

431 

432 

433 

434 

435 

436 

437 

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

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

implementation at such locations. The Contracting Officer shall advise the Contractor in writing 

within 60 days as to the adequacy and necessary modifications, if any, of the measuring devices or 

water measuring methods identified in the Contractor’s report and if the Contracting Officer does not 

respond in such time, they shall be deemed adequate. If the Contracting Officer notifies the 

Contractor that the measuring devices or methods are inadequate, the parties shall within 60 days 

following the Contracting Officer’s response, negotiate in good faith the earliest practicable date by 

which the Contractor shall modify said measuring devices and/or measuring methods as required by 

the Contracting Officer to ensure compliance with subdivision (a) of this Article. 

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

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

provisions described in subdivision (a) of this Article. 

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

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

Contractor’s Service Area during the previous Year. 

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

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

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

438 RATES AND METHOD OF PAYMENT FOR WATER

439 

440 

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

Delivered Water at Rates and Charges established in accordance with: (i) the Secretary’s ratesetting 
21

441 

442 

443 

444 

445 

446 

447 

448 

449 

450 

451 

452 

453 

454 

455 

456 

457 

458 

459 

460 

461 

462 

policy for Irrigation Water adopted in 1988 and the Secretary’s then-existing ratesetting policy for 

M&I Water. Such ratesetting policies shall be amended, modified, or superseded only through a 

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

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

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

writing by the Contractor and the Contracting Officer. The Rates and Charges applicable to the 

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

 

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

as follows: 

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

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

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

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

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

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

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

such notification shall revise Exhibit “B.” 

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

make available to the Contractor an estimate of the Rates for Project Water for the following Year 

and the computations and cost allocations upon which those Rates are based. The Contractor shall be 

allowed not less than two months to review and comment on such computations and cost allocations. 
22

463 

464 

465 

466 

467 

468 

469 

470 

471 

472 

473 

 By December 31 of each Calendar Year, the Contracting Officer shall provide the Contractor with 

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

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

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

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

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

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

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

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

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

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

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

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

amount of Water Delivered pursuant to this Contract during any month shall be accompanied with 

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

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

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

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

until an advance payment at the Rates then in effect for such additional Project Water is made. Final 

adjustment between the advance payments for the Water Scheduled and payments for the quantities 

of Water Delivered during each Year pursuant to this Contract shall be made as soon as practicable 

but no later than April 30th of the following Year, or 60 days after the delivery of Project Water 

474 

475 

476 

477 

478 

479 

480 

481 

482 

483 

484 
23

485 

486 

487 

488 

489 

490 

491 

492 

493 

494 

495 

496 

497 

498 

499 

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

last day of February.

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

subdivision (c) of this Article to the United States for Water Delivered, at the Charges then in effect, 

before the end of the month following the month of delivery. The payments shall be consistent with 

the quantities of Irrigation Water and M&I Water Delivered as shown in the water delivery report for 

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

Non-Federal Entity, by the Contracting Officer. The water delivery report shall be deemed a bill for 

the payment of Charges for Water Delivered. Adjustment for overpayment or underpayment of 

Charges shall be made through the adjustment of payments due to the United States for Charges for 

the next month. Any amount to be paid for past due payment of Charge shall be computed pursuant 

to Article 20 of this Contract. 

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

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

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

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

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

(a) of this Article.

500 

501 

502 

503 

504 

505 

506 

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

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

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

delivery of Project Water or the delivery of non-Project water through Project facilities shall be 
24

507 

508 

509 

510 

511 

512 

513 

514 

515 

516 

517 

518 

519 

520 

521 

522 

523 

524 

525 

526 

527 

528 

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

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

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

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

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

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

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

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

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

reports, or information. 

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

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

policies, and procedures used for establishing Rates and Charges and/or for making and allocating 

payments, other than those set forth in this Article may be in the mutual best interest of the parties, it 

is expressly agreed that the parties may enter into agreements to modify the mechanisms, policies, 

and procedures for any of those purposes while this Contract is in effect without amending this 

Contract. 

(j) Omitted 

(1-3) Omitted 

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

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

costs of the Project, as those terms are used in the then-current Project ratesetting policies, and 
25

529 

530 

531 

532 

533 

534 

535 

536 

537 

538 

539 

540 

541 

542 

543 

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

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

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

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

change. 

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

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

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

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

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

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

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

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

(m) Pursuant to the Act of October 27, 1986 (100 Stat. 3030), the Contracting 

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

544 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

545 

546 

547 

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

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

therefore. 

548 SALES, TRANSFERS, OR EXCHANGES OF WATER

549 

550 

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

transferred, or exchanged to others for reasonable and beneficial uses within the State of California if 
26

551 

552 

553 

554 

555 

556 

557 

558 

559 

560 

561 

562 

563 

564 

565 

566 

567 

568 

569 

570 

571 

572 

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

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

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

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

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

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

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

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

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

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

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

this Contract, the Contracting Officer shall prepare, as appropriate, all necessary environmental 

documentation, including, but not limited to, documents prepared pursuant to the NEPA and ESA, 

analyzing annual transfers within such geographical areas and the Contracting Officer shall 

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

environmental documentation, such transfers addressed in such documentation shall be conducted 

with advance notice to the Contracting Officer, but shall not require prior written approval by the 

Contracting Officer. Such environmental documentation and the Contracting Officer’s compliance 

determination shall be reviewed every five years and updated, as necessary, prior to the expiration of 

the then existing five-year period. All subsequent environmental documentation shall include an 

alternative to evaluate not less than the quantity of Project Water historically transferred within the 

same geographical area. 
27

573 

574 

575 

576 

577 

578 

579 

580 

581 

582 

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

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

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

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

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

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

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

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

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

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

583 APPLICATION OF PAYMENTS AND ADJUSTMENTS

584 

585 

586 

587 

588 

589 

590 

591 

592 

593 

594 

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

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

the Contractor arising out of this Contract then due and payable. Overpayments of more than $1,000 

shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such overpayment, at 

the option of the Contractor, may be credited against amounts to become due to the United States by 

the Contractor. With respect to overpayment, such refund or adjustment shall constitute the sole 

remedy of the Contractor or anyone having or claiming to have the right to the use of any of the 

Project Water supply provided for herein. All credits and refunds of overpayments shall be made 

within 30 days of the Contracting Officer obtaining direction as to how to credit or refund such 

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

in which the overpayment was made. 
28

595 

596 

597 

598 

599 

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

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

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

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

be billed for the additional costs pursuant to Article 25 of this Contract. 

600 TEMPORARY REDUCTIONS--RETURN FLOWS

601 

602 

603 

604 

605 

606 

607 

608 

609 

610 

611 

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

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

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

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

Contract. 

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

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

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

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

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

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

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

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

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

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

such discontinuance or reduction. 

612 

613 

614 

615 

616 
29

617 

618 

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

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

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

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

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

under the Contractor. 

619 

620 

621 

622 

623 CONSTRAINTS ON THE AVAILABILITY OF WATER

624 

625 

626 

627 

628 

629 

630 

631 

632 

633 

634 

635 

636 

637 

638 

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

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

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

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

determination as soon as practicable. 

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

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

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

of Article 18 of this Contract, no liability shall accrue against the United States or any of its officers, 

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

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

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

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

Project M&I Water Shortage in its form applicable under Article 12(c) of water service contracts in 

effect on the date of this contract which provide water service from Delta Division Facilities for 
30

639 

640 

641 

642 

643 

644 

645 

646 

647 

648 

649 

650 

651 

652 

653 

654 

655 

656 

657 

658 

659 

660 

determining the amount of Project Water Available for delivery to the Project Contractors. Subject 

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

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

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

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

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

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

scheduled under subdivision (b) of Article 4 of this Contract and under all other interim renewal, 

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

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

being hereinafter referred to as the scheduled total; 

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

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

to as the available supply; 

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

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

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

as the Contractor’s proportionate share; and 

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

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

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

Contracting Officer under subdivision (c) (1) of this Article 12, but in no event shall such amount 
31

661 

662 

663 

664 

665 

666 

667 

668 

669 

670 

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

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

Division Facilities to interim renewal, long-term water service, and repayment contractors during the 

relevant Year, such additions or reductions to the available supply shall be apportioned consistent 

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

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

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

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

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

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

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

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

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

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

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

671 

672 

673 

674 

675 

676 (e) Omitted 

677 UNAVOIDABLE GROUNDWATER PERCOLATION

678 

679 

680 

681 

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

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

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

the delivery of Irrigation Water by the Contractor to Eligible Lands.
32

682 RULES AND REGULATIONS

683 

684 

685 

686 

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

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

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

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

687 WATER AND AIR POLLUTION CONTROL

688 

689 

690 

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

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

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

691 QUALITY OF WATER

692 

693 

694 

695 

696 

697 

698 

699 

700 

701 

702 

703 

704 

705 

706 

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

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

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

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

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

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

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

Contractor pursuant to this Contract. 

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

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

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

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

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

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

(c) The Contracting Officer shall notify the Contractor in writing when drainage 
33

707 

708 

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

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

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

process described in subdivision (a) of Article 7 of this Contract. 

709 

710 

711 

712 WATER ACQUIRED BY THE CONTRACTOR

713 OTHER THAN FROM THE UNITED STATES

714 

715 

716 

717 

718 

719 

720 

721 

722 

723 

724 

725 

726 

727 

728 

729 

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

than from the United States and Irrigation Water furnished pursuant to the terms of this Contract may 

be simultaneously transported through the same distribution facilities of the Contractor subject to the 

following: (i) if the facilities utilized for commingling Irrigation Water and non-Project water were 

constructed without funds made available pursuant to Federal Reclamation law, the provisions of 

Federal Reclamation law will be applicable only to the Landholders of lands which receive Irrigation 

Water; (ii) the eligibility of land to receive Irrigation Water must be established through the 

certification requirements as specified in the Acreage Limitation Rules and Regulations (43 CFR Part 

426); (iii) the water requirements of Eligible Lands within the Contractor's Service Area can be 

established and the quantity of Irrigation Water to be utilized is less than or equal to the quantity 

necessary to irrigate such Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation 

Water and non-Project water are/were constructed with funds made available pursuant to Federal 

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

Reclamation law, unless the Contractor pays to the United States the incremental fee described in 43 

CFR 426.15. In determining the incremental fee, the Contracting Officer will calculate annually the 

cost to the Federal Government, including interest, of storing or delivering non-Project water, which 
34

730 

731 

732 

733 

734 

735 

736 

737 

738 

739 

740 

741 

742 

743 

744 

745 

746 

747 

748 

749 

750 

751 

for purposes of this Contract shall be determined as follows: The quotient shall be the unpaid 

distribution system costs divided by the total irrigable acreage within the Contractor’s Service Area. 

The incremental fee per acre is the mathematical result of such quotient times the interest rate 

determined using Section 202 (3) of the Act of October 12, 1982 (96 Stat. 1263). Such incremental 

fee will be charged to each acre of excess or full cost land within the Contractor’s Service Area that 

receives non-Project water through Federally financed or constructed facilities. The incremental fee 

calculation methodology will continue during the term of this Contract absent the promulgation of a 

contrary Reclamation-wide rule, regulation, or policy adopted after the Contractor has been afforded 

the opportunity to review and comment on the proposed rule, regulation, or policy. If such rule, 

regulation, or policy is adopted it shall supersede this provision. 

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

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

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

Contracting Officer and the execution of any contract determined by the Contracting Officer to be 

necessary, consistent with the following provisions:

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

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

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

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

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

superseded from time to time. 

(2) Delivery of such non-Project water in and through Project facilities 
35

752 

753 

754 

755 

756 

757 

758 

759 

760 

761 

762 

763 

764 

765 

766 

767 

768 

769 

770 

771 

772 

773 

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

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

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

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

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

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

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

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

respective officers, agents, and employees, from any claim for damage to persons or property, direct 

or indirect, resulting from the act(s) of the Contractor, its officers, employees, agents, or assigns, in 

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

into Project facilities. 

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

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

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

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

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

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

by the Contracting Officer for conveyance and transportation of non-Project water prior to any such 

remaining capacity being made available to non-Project contractors. Other Project Contractors shall 

have a second priority to any remaining capacity of facilities declared to be available by the 

Contracting Officer for conveyance and transportation of non-Project water prior to any such 
36

774 remaining capacity being made available to non-Project contractors. 

775 OPINIONS AND DETERMINATIONS

776 

777 

778 

779 

780 

781 

782 

783 

784 

785 

786 

787 

788 

789 

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

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

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

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

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

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

provided in a timely manner. Nothing in this subdivision (a) of this Article is intended to or shall 

affect or alter the standard of judicial review applicable under Federal law to any opinion or 

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

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

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

United States and of the State of California, and the rules and regulations promulgated by the 

Secretary of the Interior. Such determinations shall be made in consultation with the Contractor to 

the extent reasonably practicable. 

790 COORDINATION AND COOPERATION

791 

792 

793 

794 

795 

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

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

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

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

but not be limited to, any action which will or may materially affect the quantity or quality of Project 
37

796 

797 

798 

799 

800 

801 

802 

803 

804 

805 

806 

807 

808 

809 

810 

811 

812 

813 

814 

815 

816 

817 

Water supply, the allocation of Project Water supply, and Project financial matters including, but not 

limited to, budget issues. The communication, coordination, and cooperation provided for hereunder 

shall extend to all provisions of this Contract. Each party shall retain exclusive decision making 

authority for all actions, opinions, and determinations to be made by the respective party. 

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

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

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

amended as necessary separate and apart from this Contract. The goal of this process shall be to 

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

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

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

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

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

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

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

improve water supply, water quality, and reliability. 

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

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

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

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

California to seek improved water resource management. 

(4) The Secretary will coordinate actions of agencies within the 
38

818 

819 

820 

821 

822 

823 

824 

825 

826 

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

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

hold division level meetings to discuss Project operations, division level water management 

activities, and other issues as appropriate. 

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

the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 

Contracting Officer’s ability to communicate, coordinate, and cooperate with the Contractor or other 

interested stakeholders or to make decisions in a timely fashion as needed to protect health, safety, or 

the physical integrity of structures or facilities. 

827 CHARGES FOR DELINQUENT PAYMENTS

828 

829 

830 

831 

832 

833 

834 

835 

836 

837 

838 

839 

840 

841 

842 

843 

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

on delinquent installments or payments. When a payment is not received by the due date, the 

Contractor shall pay an interest charge for each day the payment is delinquent beyond the due date. 

When a payment becomes 60 days delinquent, the Contractor shall pay an administrative charge to 

cover additional costs of billing and processing the delinquent payment. When a payment is 

delinquent 90 days or more, the Contractor shall pay an additional penalty charge of six percent per 

year for each day the payment is delinquent beyond the due date. Further, the Contractor shall pay 

any fees incurred for debt collection services associated with a delinquent payment. 

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

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

interest rate of one-half of one percent per month prescribed by Section 6 of the Reclamation Project 

Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due date and 

remain fixed for the duration of the delinquent period. 

(c) When a partial payment on a delinquent account is received, the amount 

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

accrued interest, and finally to the overdue payment. 

844 EQUAL OPPORTUNITY

845 

846 

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

(a) The Contractor will not discriminate against any employee or applicant for 
39

847 

848 

849 

850 

851 

852 

853 

854 

855 

856 

857 

858 

859 

860 

861 

862 

863 

864 

865 

866 

867 

868 

869 

870 

871 

872 

873 

874 

875 

876 

877 

878 

879 

880 

881 

882 

883 

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

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

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

include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

conspicuous places, available to employees and applicants for employment, notices to be provided by 

the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

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

by or on behalf of the Contractor, state that all qualified applicants will receive consideration for 

employment without discrimination because of race, color, religion, sex, or national origin. 

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

which it has a collective bargaining agreement or other contract or understanding, a notice, to be 

provided by the Contracting Officer, advising the said labor union or workers' representative of the 

Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and 

shall post copies of the notice in conspicuous places available to employees and applicants for 

employment. 

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

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

the Secretary of Labor. 

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

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

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

and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, 

regulations, and orders. 

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

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

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

for further Government contracts in accordance with procedures authorized in said amended 

Executive Order, and such other sanctions may be imposed and remedies invoked as provided in said 

Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided 

by law. 

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

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

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

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

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

means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

That in the event the Contractor becomes involved in, or is threatened with, litigation with a 

884 

885 
40

886 

887 

subcontractor or vendor as a result of such direction, the Contractor may request the United States to 

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

888 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

889 

890 

891 

892 

893 

894 

895 

896 

897 

898 

899 

900 

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

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

may be distributed among the Contractor's water users and notwithstanding the default of individual 

water users in their obligations to the Contractor. 

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

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

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

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

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

payment of water rates levied or established by the Contractor. 

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

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

901 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

902 

903 

904 

905 

906 

907 

908 

909 

910 

911 

912 

913 

914 

915 

916 

917 

918 

919 

920 

23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 (42 

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

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

well as with their respective implementing regulations and guidelines imposed by the U.S. 

Department of the Interior and/or Bureau of Reclamation. 

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

of race, color, national origin, handicap, or age, be excluded from participation in, be denied the 

benefits of, or be otherwise subjected to discrimination under any program or activity receiving 

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

agrees to immediately take any measures necessary to implement this obligation, including 

permitting officials of the United States to inspect premises, programs, and documents. 

(c) The Contractor makes this agreement in consideration of and for the purpose 

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

assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, including 

installment payments after such date on account of arrangements for Federal financial assistance 

which were approved before such date. The Contractor recognizes and agrees that such Federal 

assistance will be extended in reliance on the representations and agreements made in this Article, 

and that the United States reserves the right to seek judicial enforcement thereof. 
41

921 PRIVACY ACT COMPLIANCE

922 

923 

924 

925 

926 

927 

928 

929 

930 

931 

932 

933 

934 

935 

936 

937 

938 

939 

940 

941 

942 

943 

944 

945 

946 

947 

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

Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et seq.) in 

maintaining Landholder acreage certification and reporting records, required to be submitted to the 

Contractor for compliance with Sections 206 and 228 of the Reclamation Reform Act of 1982 (96 

Stat. 1266), and pursuant to 43 CFR 426.18. 

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

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

for maintaining the certification and reporting records referenced in (a) above are considered to be 

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

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

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

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

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

contained in the Landholder's certification and reporting records. 

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

Reclamation to be the System Manager who shall be responsible for making decisions on denials 

pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

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

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

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

2.71; notify the requester accordingly of such referral; and provide the System Manager with 

information and records necessary to prepare an appropriate response to the requester. These 

requirements do not apply to individuals seeking access to their own certification and reporting forms 

filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the Privacy 

Act as a basis for the request. 

948 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

949 

950 

951 

952 

953 

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

Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

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

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

Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 
42

954 

955 

956 

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

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

administration. 

957 WATER CONSERVATION

958 

959 

960 

961 

962 

963 

964 

965 

966 

967 

968 

969 

970 

971 

972 

973 

974 

975 

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

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

implementing an effective water conservation and efficiency program based on the Contractor's water 

conservation plan that has been determined by the Contracting Officer to meet the conservation and 

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

conservation and efficiency program shall contain definite water conservation objectives, appropriate 

economically feasible water conservation measures, and time schedules for meeting those objectives. 

Continued Project Water delivery pursuant to this Contract shall be contingent upon the Contractor’s 

continued implementation of such water conservation program. In the event the Contractor's water 

conservation plan or any revised water conservation plan completed pursuant to subdivision (d) of 

this Article 26 have not yet been determined by the Contracting Officer to meet such criteria, due to 

circumstances which the Contracting Officer determines are beyond the control of the Contractor, 

water deliveries shall be made under this Contract so long as the Contractor diligently works with the 

Contracting Officer to obtain such determination at the earliest practicable date, and thereafter the 

Contractor immediately begins implementing its water conservation and efficiency program in 

accordance with the time schedules therein. 

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

Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 
43

976 

977 

978 

979 

980 

981 

982 

983 

984 

985 

986 

987 

988 

989 

the Best Management Practices identified by the time frames issued by the California Urban Water 

Conservation Council for such M&I Water unless any such practice is determined by the Contracting 

Officer to be inappropriate for the Contractor. 

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

its implementation of the water conservation plan on the reporting dates specified in the then-existing 

conservation and efficiency criteria established under Federal law. 

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

reflect the then-current conservation and efficiency criteria for evaluating water conservation plans 

established under Federal law and submit such revised water management plan to the Contracting 

Officer for review and evaluation. The Contracting Officer will then determine if the water 

conservation plan meets Reclamation’s then-current conservation and efficiency criteria for 

evaluating water conservation plans established under Federal law. 

(e) If the Contractor is engaged in direct groundwater recharge, such activity shall 

be described in the Contractor’s water conservation plan. 

990 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

991 

992 

993 

994 

995 

996 

997 

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

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

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

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

shall not be construed as limiting or curtailing any rights which the Contractor or any water user 

within the Contractor's Service Area acquires or has available under any other contract pursuant to 

Federal Reclamation law. 
44

998 OPERATION AND MAINTENANCE BY 

999 SAN LUIS & DELTA-MENDOTA WATER AUTHORITY

1000 

1001 

1002 

1003 

1004 

1005 

1006 

1007 

1008 

1009 

1010 

1011 

1012 

1013 

1014 

1015 

1016 

1017 

1018 

1019 

1020 

28. (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

responsibility for funding a portion of the costs of such O&M, have been transferred to the San Luis 

& Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement (8-07-

20-X0354) between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

Water Authority. That separate agreement shall not interfere with or affect the rights or obligations 

of the Contractor or the United States hereunder. 

 (b) The Contracting Officer has previously notified the Contractor in writing that 

the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

Contractor shall pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water 

Authority, or to any successor approved by the Contracting Officer under the terms and conditions of 

the separate agreement between the United States and Operating Non-Federal Entity San Luis & 

Delta-Mendota Water Authority, described in subdivision (a) of this Article, all rates, charges, or 

assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

Entity San Luis & Delta-Mendota Water Authority, or such successor determines, sets, or establishes 

for the O&M of the portion of the Project facilities operated and maintained by Operating NonFederal Entity San Luis & Delta-Mendota Water Authority, or such successor. Such direct payments 

to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

of the Project Rates and Charges except to the extent the Operating Non-Federal Entity collects 

payments on behalf of the United States in accordance with subdivision (a) of this Article. 
45

1021 

1022 

1023 

1024 

1025 

1026 

1027 

1028 

1029 

1030 

1031 

1032 

1033 

1034 

1035 

(c) For so long as the O&M of any portion of the Project facilities serving the 

Contractor is performed by Operating Non-Federal Entity San Luis & Delta-Mendota Water 

Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 

Rates for Water Delivered under this Contract representing the cost associated with the activity being 

performed by Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or its 

successor. 

(d) In the event the O&M of the Project facilities operated and maintained by 

Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

in writing, and present to the Contractor a revised Exhibit “B” which shall include the portion of the 

Rates to be paid by the Contractor for Project Water under this Contract representing the O&M costs 

of the portion of such Project facilities which have been re-assumed. The Contractor shall, thereafter, 

in the absence of written notification from the Contracting Officer to the contrary, pay the Rates and 

Charges specified in the revised Exhibit “B” directly to the United States in compliance with Article 

7 of this Contract. 

1036 OPERATION AND MAINTENANCE BY 

1037 CALIFORNIA DEPARTMENT OF WATER RESOURCES

1038 

1039 

1040 

1041 

1042 

1043 

28.1 (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

responsibility for funding a portion of the costs of such O&M, have been transferred to the California 

Department of Water Resources, an Operating Non-Federal Entity by a separate agreement (14-06-

200-9755) between the United States and Operating Non-Federal Entity California Department of 

Water Resources. This separate agreement shall not interfere with or affect the rights or obligations 

of the Contractor or the United States hereunder. 
46

1044 

1045 

1046 

1047 

1048 

1049 

1050 

1051 

1052 

1053 

1054 

1055 

1056 

1057 

1058 

1059 

1060 

1061 

1062 

1063 

1064 

1065 

(b) The Contracting Officer has previously notified the Contractor in writing that 

the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

Operating Non-Federal Entity California Department of Water Resources, and the Contractor shall 

pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or to any 

successor approved by the Contracting Officer under the terms and conditions of the separate 

agreement between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

Water Authority, described in subdivision (a) of Article 28 of this Contract, all rates, charges, or 

assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

Entity California Department of Water Resources, or such successor determines, sets, or establishes 

for the O&M of the portion of the Project facilities operated and maintained by Operating NonFederal Entity California Department of Water Resources, or such successor. Such direct payments 

to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

of the Project Rates and Charges except to the extent the Operating Non-Federal Entity collects 

payments on behalf of the United States in accordance with the separate agreement identified in 

subdivision (a) of Article 28 of this Contract. 

 (c) For so long as the O&M of any portion of the Project facilities serving the 

Contractor is performed by Operating Non-Federal Entity California Department of Water Resources, 

or any successor thereto, the Contracting Officer shall adjust those components of the Rates for 

Water Delivered under this Contract representing the cost associated with the activity being 

performed by Operating Non-Federal Entity California Department of Water Resources, or its 

successor. 
47

1066 

1067 

1068 

1069 

1070 

1071 

1072 

1073 

1074 

(d) In the event the O&M of the Project facilities operated and maintained by 

Operating Non-Federal Entity California Department of Water Resources is re-assumed by the 

United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

in writing, and present to the Contractor a revised Exhibit “B” which shall include the portion of the 

Rates and Charges, to be paid by the Contractor for Project Water under this Contract representing 

the O&M costs of the portion of such Project facilities which have been re-assumed. The Contractor 

shall, thereafter, in the absence of written notification from the Contracting Officer to the contrary, 

pay the Rates and Charges specified in the revised Exhibit “B” directly to the United States in 

compliance with Article 7 of this Contract. 

1075 PUMPING PLANTS, POWER FOR PUMPING PLANTS, AND TRANSFER

1076 OF OPERATION AND MAINTENANCE TO THE CONTRACTOR

1077 

1078 

1079 

1080 

1081 

1082 

1083 

1084 

1085 

1086 

 

 28.2. (a) The United States shall furnish and install pumping plants and furnish the 

amount of Project power the Contracting Officer determines is necessary to deliver Project Water to 

the Contractor from the Delta-Mendota and San Luis Canals at the point(s) of delivery identified 

pursuant to subdivision (a) of Article 5 at heads and elevations sufficient to irrigate by gravity the 

areas within the Contractor’s Service Area below 700 feet mean sea level elevation. 

(b) With advance approval of the Contracting Officer, the Contractor may, at its 

own expense, furnish and install pumping facilities, and related electrical equipment, to enable it to 

divert and deliver Project Water from the Delta-Mendota and San Luis Canals before the United 

States furnishes and installs all the pumping plants referred to in subdivision (a) of this Article. The 

United States shall furnish the amount of Project power needed to operate such pumping facilities; 

Provided, That the Contractor maintains an agreement with an entity to convey such power to such 

facilities, and the Contractor agrees to pay any and all charges assessed by that entity for such 

1087 

1088 
48

1089 

1090 

1091 

service. 

 (c) The furnishing of power by the United States shall be in conformance with 

operating criteria, rules, and regulations, including the project use power policy, established by the 

Contracting Officer; Provided, That any such operating criteria, rules, and regulations, including the 

project use power policy, established by the Contracting Officer shall not excuse the United States 

from its obligation under subdivision (a) of this Article. Such operating criteria, rules, and 

regulations shall be developed in cooperation with the Contractor and shall be based on acceptable 

irrigation management practices and the power generation capacity available to the United States for 

the furnishing of Project water to the Contractor. 

1092 

1093 

1094 

1095 

1096 

1097 

1098 

1099 

 (d) The Contractor hereby agrees to operate and maintain, at its own expense, all 

of the pumping facilities described in subdivisions (a) and (b) of this Article in such a manner that 

they remain in good and efficient condition; Provided, That the United States shall finance the costs 

of all major replacements that the Contracting Officer determines are needed. 

1100 

1101 

1102 

1103 

1104 

1105 

1106 

1107 

1108 

1109 

1110 

 (e) The Contracting Officer or his representative shall at all times have access to 

and may inspect and investigate the pumping facilities for the purpose of ascertaining if they are 

being kept in safe and proper operating condition. 

 (f) No change in any of the pumping facilities, which in the opinion of the 

Contracting Officer is substantial, shall be made by the Contractor without first obtaining the written 

consent of the Contracting Officer. The Contractor promptly shall make any and all repairs and 

replacements to the pumping facilities which in the opinion of the Contracting Officer are necessary. 

 In the event the Contractor neglects or fails to make such repairs and replacements or in the event of 

operation by the United States of the pumping facilities pursuant to subdivision (g) of this Article, the 
49

1111 

1112 

1113 

1114 

1115 

1116 

1117 

1118 

1119 

1120 

1121 

1122 

1123 

1124 

1125 

1126 

1127 

1128 

1129 

1130 

1131 

1132 

United States may cause the repairs and replacements to be made and the cost thereof, as determined 

by the Contracting Officer, shall be paid by the Contractor to the United States upon notice of the 

payment due but not later than April 1 of the year following that during which such work was 

completed. 

 (g) In the event the Contracting Officer determines that the Contractor has not 

properly cared for, operated, and maintained said pumping facilities or has failed to comply with any 

of the provisions of this Article, then at the election of the Contracting Officer the United States may 

take over from the Contractor the care and O&M of the pumping facilities by giving written notice to 

the Contractor of such election and the effective date thereof. Thereafter during the period of 

operation by the United States the Contractor shall pay to the United States in advance of the use of 

such pumping facilities the Contractor’s share of the cost of O&M thereof and replacements 

therefore, as fixed in notices from the Contracting Officer. In the event such advances are inadequate 

to properly care for, operate, and maintain the pumping facilities to the end of any year, the 

Contracting Officer may give written notice of a supplemental O&M charge and the Contractor shall 

pay such amount on or before the date specified in said notice. Any amount of such advances 

remaining unexpended or unobligated, at the option of the Contractor, either shall be refunded or 

credited upon amounts to become due to the United States from the Contractor under the provisions 

of this Contract in subsequent years. The pumping facilities so taken back by the United States may 

be returned to the Contractor upon the furnishing to the Contractor of a written 90-day notice of 

intention to retransfer. 

 (h) The Contractor shall hold the United States, its officers and employees 

harmless from every and all claim for damages to persons or property arising out of or connected 
50

with the Contractor’s O&M of the pumping facilities referred to in this Article; Provided, That 

nothing contained herein shall be construed as an assumption of liability by the Contractor to parties 

other than the United States with respect to such matters. 

1133 

1134 

1135 

1136 

1137 

1138 

1139 

1140 

1141 

1142 

1143 

1144 

1145 

1146 

1147 

1148 

1149 

1150 

1151 

1152 

1153 

1154 

 (i) During the time the pumping facilities are operated and maintained by the 

Contractor, in addition to all other payments to be made by the Contractor under this Contract, the 

Contractor shall pay to the United States pursuant to Article 25 hereof, costs incurred by the United 

States for work associated with the pumping facilities under this Contract normally charged by the 

United States to water users and properly and equitably chargeable to the Contractor. 

 (j) The Contracting Officer may make review of any part or all of the pumping 

facilities being operated by the Contractor pursuant to this Article to assist the Contractor in 

assessing the condition of facilities and the adequacy of the maintenance program(s). The 

Contracting Officer shall prepare reports based on the examinations, inspections or audits, and 

furnish copies of such reports and any recommendations to the Contractor. The Contractor shall 

reimburse the actual cost incurred by the United States in making O&M examinations, inspections, 

and audits, and preparing associated reports and recommendations. 

 (k) If deemed necessary by the Contracting Officer or requested by the Contractor, 

special inspections of the pumping facilities being operated by the Contractor and of the Contractor’s 

books and records may be made to ascertain the extent of any O&M deficiencies, to determine the 

remedial measures required for their correction, and to assist the Contractor in solving specific 

problems. Any special inspection or audit shall, except in a case of emergency, be made after written 

notice to the Contractor and the actual cost thereof shall be paid by the Contractor to the United 

States.
51

1155 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1156 

1157 

1158 

1159 

1160 

1161 

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

United States under this Contract shall be contingent upon appropriation or allotment of funds. 

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

under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

or allotted. 

1162 BOOKS, RECORDS, AND REPORTS

1163 

1164 

1165 

1166 

1167 

1168 

1169 

1170 

1171 

1172 

1173 

1174 

1175 

1176 

1177 

1178 

1179 

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

records pertaining to administration of the terms and conditions of this Contract including: the 

Contractor's financial transactions, water supply data, and Project land and right-of-way agreements; 

the water users' land-use (crop census), land ownership, land-leasing and water use data; and other 

matters that the Contracting Officer may require. Reports thereon shall be furnished to the 

Contracting Officer in such form and on such date or dates as the Contracting Officer may require. 

Subject to applicable Federal laws and regulations, each party to this Contract shall have the right 

during office hours to examine and make copies of the other party's books and records relating to 

matters covered by this Contract. 

(b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

records, or other information shall be requested from the Contractor by the Contracting Officer unless 

such books, records, or information are reasonably related to the administration or performance of 

this Contract. Any such request shall allow the Contractor a reasonable period of time within which 

to provide the requested books, records, or information. 

(c) At such time as the Contractor provides information to the Contracting Officer 

pursuant to subdivision (a) of this Article, a copy of such information shall be provided to the 

Operating Non-Federal Entity (ies). 

1180 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1181 

1182 

1183 

1184 

31. (a) The provisions of this Contract shall apply to and bind the successors and 

assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

therein shall be valid until approved in writing by the Contracting Officer. 

(b) The assignment of any right or interest in this Contract by either party shall not 
52

1185 

1186 

1187 

1188 

interfere with the rights or obligations of the other party to this Contract absent the written 

concurrence of said other party. 

(c) The Contracting Officer shall not unreasonably condition or withhold approval 

of any proposed assignment. 

1189 SEVERABILITY

1190 

1191 

1192 

1193 

1194 

1195 

1196 

1197 

1198 

1199 

1200 

1201 

1202 

1203 

1204 

32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

(ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

association or other form of organization whose primary function is to represent parties to Project 

contracts, brings an action in a court of competent jurisdiction challenging the legality or 

enforceability of a provision included in this Contract and said person, entity, association, or 

organization obtains a final court decision holding that such provision is legally invalid or 

unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

within three months thereafter promptly agree on the appropriate revision(s). The time periods 

specified above may be extended by mutual agreement of the parties. Pending the completion of the 

actions designated above, to the extent it can do so without violating any applicable provisions of 

law, the United States shall continue to make the quantities of Project Water specified in this 

Contract available to the Contractor pursuant to the provisions of this Contract which were not found 

to be legally invalid or unenforceable in the final court decision. 

1205 RESOLUTION OF DISPUTES

1206 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 
53

1207 

1208 

1209 

rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

any matter to the Department of Justice, the party shall provide to the other party 30 days’ written 

notice of the intent to take such action; Provided, That such notice shall not be required where a 

delay in commencing an action would prejudice the interests of the party that intends to file suit. 

During the 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in 

an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

waive or abridge any right or remedy that the Contractor or the United States may have. 

1210 

1211 

1212 

1213 

1214 

1215 OFFICIALS NOT TO BENEFIT

1216 

1217 

1218 

34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

Contractor shall benefit from this Contract other than as a water user or landowner in the same 

manner as other water users or landowners. 

1219 CHANGES IN CONTRACTOR’S SERVICE AREA

1220 

1221 

1222 

1223 

1224 

1225 

1226 

1227 

1228 

1229 

1230 

35. (a) While this Contract is in effect, no change may be made in the Contractor's 

Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

except upon the Contracting Officer's written consent. 

 (b) Within 30 days of receipt of a request for such a change, the Contracting 

Officer will notify the Contractor of any additional information required by the Contracting Officer 

for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

timely completion of the process. Such process will analyze whether the proposed change is likely 

to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of 

the Contractor to pay for Project Water furnished under this Contract or to pay for any Federallyconstructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply with 
54

1231 

1232 

the NEPA and the ESA. The Contractor will be responsible for all costs incurred by the Contracting 

Officer in this process, and such costs will be paid in accordance with Article 25 of this Contract. 

1233 FEDERAL LAWS

1234 

1235 

36. By entering into this Contract, the Contractor does not waive its rights to contest the 

validity or application in connection with the performance of the terms and conditions of this 

Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

terms and conditions of this Contract unless and until relief from application of such Federal law or 

regulation to the implementing provision of the Contract is granted by a court of competent 

jurisdiction. 

1236 

1237 

1238 

1239 

1240 

1241 NOTICES

1242 

1243 

1244 

1245 

1246 

1247 

37. Any notice, demand, or request authorized or required by this Contract shall be 

deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 

to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, California 93721, 

and on behalf of the United States, when mailed, postage prepaid, or delivered to the Board of 

Directors of the Panoche Water District, 52027 West Althea Avenue, Firebaugh, California 93622. 
55

1248 

1249 

1250 

1251 

1252 

1253 

1254 

1255 

1256 

1257 

1258 

1259 

1260 

1261 

IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

year first above written. 

 THE UNITED STATES OF AMERICA 

 By: _________________________________________ 

 Regional Director, Mid-Pacific Region 

Bureau of Reclamation 

(SEAL) 

 PANOCHE WATER DISTRICT ___________ 

 By: _________________________________ 

President of the Board of Directors 

Attest: 

By: __________________________________ 

 Secretary of the Board of Directors 
 EXHIBIT A

[Map or Description of Service Area] 
EXHIBIT B

200_ Water Rates and Charges