Appendix C

Contracts between U.S. Bureau of Reclamation and

Sacramento River Settlement Contractors
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Contract No.

Standard Irrigation District Form

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

Central Valley Project, California

CONTRACT BETWEEN THE UNITED STATES AND

___________________________________________________,

DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES,

SETTLING WATER RIGHTS DISPUTES AND

PROVIDING FOR PROJECT WATER 

Table of Contents

Article No. Title Page No.

Preamble 1

Explanatory Recitals 2-3

1 Definitions 3-6

2 Term of Contract 7

3 Water to be Furnished to Contractor 7-10

4 Return Flow 10-11

5 Constraints on the Availability of Water 11-12

6 Integrated Water Management and Partnerships 12-13

7 Use of Water Furnished to Contractor 13

8 Rate and Method of Payment for Water 14-18

9 Agreement on Water Quantities 19-21

10 Measurement of Water 21-23

11 Rules and Regulations 23

12 General Obligation – Benefits Conditioned 

Upon Payment 23-24

13 Charges For Delinquent Payments 24

14 Quality of Water 24-25

15 Water and Air Pollution Control 25

16 Equal Opportunity 25-26

17 Compliance With Civil Rights Laws 

And Regulations 26-27
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Table of Contents – continued

Article No. Title Page No.

18 Mingling of Contractor’s Project and 

Non-Project Water 27-28

19 Books, Records, and Reports 28

20 Change Of Place Of Use Or Organization 28-29

21 Consolidation Of Contracting Entities 29

22 Notices 29

23 Assignment Limited – Successors and 

Assigns Obligated 29-30

24 Officials Not to Benefit 30

25 Contingent Upon Appropriation or

Allotment of Funds 30

26 Confirmation of Contract 30

27 Unavoidable Groundwater Percolation 30

28 Privacy Act Compliance 31

29 Water Conservation 31-33

30 Opinions And Determinations 33

31 Contractor to Pay Certain Miscellaneous Costs 34

32 Waiver of Default 34

Signatures 35

Exhibit A Schedule of Monthly Diversions of Water

Exhibit B Map of Contractor’s Ownership

Exhibit C Unit Duties

Exhibit D Rates and Charges
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2 Contract No.

3 Standard Irrigation District Form

4

5 UNITED STATES

6 DEPARTMENT OF THE INTERIOR

7 BUREAU OF RECLAMATION

8 Central Valley Project, California

9

10 CONTRACT BETWEEN THE UNITED STATES AND

11 _______________________________________________

12 DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES

13 SETTLING WATER RIGHTS DISPUTES AND

14 PROVIDING FOR PROJECT WATER 

15

16

17 THIS CONTRACT, hereinafter referred to as “Settlement Contract,” is 

18 entered into by THE UNITED STATES OF AMERICA, hereinafter referred to as the 

19 United States, made this _____ day of ____________________, 2004, pursuant to the 

20 applicable authority granted to it generally in the Act of June 17, 1902 (32 Stat. 388), and 

21 acts amendatory or supplementary thereto, including, but not limited to, the Acts of 

22 August 26, 1937 (50 Stat. 844), as amended and supplemented, August 4, 1939 (53 Stat. 

23 1187), as amended and supplemented, including, but not limited to, Sections 9 and 14 

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

25 Stat. 1262), October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV of the Act 

26 of October 30, 1992 (106 Stat. 4706), all collectively hereinafter referred to as Federal 

27 Reclamation law, and _______________________, hereinafter referred to as the 

28 Contractor, a public agency of the State of California, duly organized, existing, and 

29 acting pursuant to the laws thereof, with its principal place of business in California; 

30 [may change depending on contracting entity]

31 WITNESSETH, that:
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1 EXPLANATORY RECITALS

[1 2

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

3 Valley Project, California, for multiple purposes pursuant to its statutory authority; and

[2 4

nd] WHEREAS, the Contractor has rights to divert, is diverting, and will 

5 continue to divert for reasonable beneficial use, water from the natural flow of the 

6 Sacramento River and tributaries thereto, that would have been flowing therein if the 

7 Central Valley Project were not in existence; and [Contractor Specific – “Other” 

8 Rights”]

[3 9

rd] WHEREAS, the construction and operation of the integrated and 

10 coordinated Central Valley Project has changed and will further change the regimen of 

11 the Sacramento, American, San Joaquin, and Trinity Rivers and the Sacramento-San 

12 Joaquin Delta from unregulated flow to regulated flow; and

[4 13 th] WHEREAS, the United States has rights to divert, is diverting, and will 

14 continue to divert waters from said Rivers and said Delta in connection with the operation 

15 of said Central Valley Project, and

[5 16 th] WHEREAS, the Contractor and the United States had a dispute over the 

17 respective rights of the parties to divert and use water from the regulated flow of the 

18 Sacramento River which threatened to result in litigation, and as a means to settle that 

19 dispute entered into Contract No. ______________, as amended, hereinafter referred to 

20 as the Existing Contract, which established terms for the delivery to the Contractor of 

21 Central Valley Project Water, and the quantities of Base Supply the United States and the 

22 Contractor agreed may be diverted by the Contractor from the Sacramento River pursuant 

23 to such contract; and
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[6 1

th] WHEREAS, the United States and the Contractor disagree with respect to 

2 the authority of the United States to change the quantities of Base Supply and/or Project 

3 Water specified as available for diversion in this Settlement Contract from the quantities 

4 specified in the Existing Contract, and other issues related thereto. That dispute was the 

5 subject of litigation in a lawsuit entitled Glenn-Colusa Irrigation District, et al. v. United 

6 States, et al. [Civ. No. S-01-1816 GEB/JFM (E.D. Cal.)]; that litigation was dismissed, 

7 without prejudice, pursuant to a stipulation of dismissal filed by the parties thereto on 

8 August 29, 2002. Notwithstanding that dismissal, the Contractor and the United States 

9 enter into this Settlement Contract to renew the Existing Contract, pursuant to the terms 

10 of the Existing Contract, Federal Reclamation law, and the laws of the State of 

11 California; and

[7 12 th] WHEREAS, to assure the Contractor of the enjoyment and use of the 

13 regulated flow of the said Rivers and the Delta, and to provide for the economical 

14 operation of the Central Valley Project by, and the reimbursement to, the United States 

15 for expenditures made for said Project.

16 NOW, THEREFORE, in consideration of the performance of the herein 

17 contained provisions, conditions, and covenants, it is agreed as follows:

18 DEFINITIONS

19 1. When used herein, unless otherwise expressed or incompatible with the 

20 intent hereof, the term:

21 (a) “Base Supply” shall mean the quantity of Surface Water 

22 established in Articles 3 and 5 which may be diverted by the Contractor from the 
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1 Sacramento River each month during the period April through October of each Year 

2 without payment to the United States for such quantities diverted;

3 (b) “Basin-Wide Water Management Plan” shall mean the mutually 

4 agreeable Sacramento River Basinwide Water Management Plan, dated _______, 

5 developed by Glenn-Colusa Irrigation District, Maxwell Irrigation District, Natomas 

6 Central Mutual Water Company, Pelger Mutual Water Company, Princeton-Codora7 Glenn Irrigation District, Provident Irrigation District, Reclamation District 108, Sutter 

8 Mutual Water Company, Anderson-Cottonwood Irrigation District, M&T, Inc., Meridian 

9 Farms Water Company, Reclamation District 1004 and the U.S. Bureau of Reclamation.

10 (c) “Charges” shall mean the payments for Project Water that the 

11 Contractor is required to pay to the United States in addition to the “Rates” specified in 

12 this Settlement Contract. The Contracting Officer will, on an annual basis, determine the 

13 extent of these Charges. The type and amount of each Charge shall be specified in 

14 Exhibit D;

15 (d) “Contract Total” shall mean the sum of the Base Supply and 

16 Project Water available for diversion by the Contractor for the period April 1 through 

17 October 31;

18 (e) “Critical Year” shall mean any Year in which either of the 

19 following eventualities exists:

20 (1) The forecasted full natural inflow to Shasta Lake for the 

21 current Water Year, as such forecast is made by the United States on or before February 

22 15 and reviewed as frequently thereafter as conditions and information warrant, is equal 

23 to or less than 3.2 million acre-feet; or
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1 (2) The total accumulated actual deficiencies below 4 million 

2 acre-feet in the immediately prior Water Year or series of successive prior Water Years 

3 each of which had inflows of less than 4 million acre-feet, together with the forecasted 

4 deficiency for the current Water Year, exceed 800,000 acre-feet. 

5 For the purpose of determining a Critical Year, the computation of inflow 

6 to Shasta Lake shall be performed in a manner that considers the extent of upstream 

7 development above Shasta Lake during the year in question, and shall be used as the full 

8 natural flow to Shasta Lake. In the event that major construction has occurred or occurs 

9 above Shasta Lake after September 1, 1963 and which has materially altered or alters the 

10 regimen of the stream systems contributing to Shasta Lake, the computed inflow to 

11 Shasta Lake used to define a Critical Year will be adjusted to eliminate the effect of such 

12 material alterations. After consultation with the State of California, the National Weather 

13 Service, and other recognized forecasting agencies, the Contracting Officer will select the 

14 forecast to be used and will make the details of it available to the Contractor. The same 

15 forecasts used by the United States for the operation of the Project shall be used to make 

16 the forecasts hereunder;

17 (f) “CVPIA” shall mean the Central Valley Project Improvement Act, 

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

19 (g) “Eligible Lands” shall mean all lands to which Project Water may 

20 be delivered in accordance with Section 204 of the Reclamation Reform Act of October 

21 12, 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA;
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1 (h) “Excess Lands” shall mean all lands in excess of the limitations 

2 contained in Section 204 of the RRA, other than those lands exempt from acreage 

3 limitation under Federal Reclamation law;

4 (i) “Full Cost Rate” shall mean that water rate described in Sections 

5 205(a)(3) or 202(3) of the RRA, whichever is applicable;

6 (j) “Ineligible Lands” shall mean all lands to which Project Water 

7 may not be delivered in accordance with Section 204 of the RRA;

8 (k) “Landholder” shall mean a party that directly or indirectly owns or 

9 leases nonexempt land, as provided in 43 CFR 426.2;

10 (l) “Project” shall mean the Central Valley Project owned by the 

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

12 (m) “Project Water” shall mean all Surface Water diverted or 

13 scheduled to be diverted each month during the period April through October of each 

14 Year by the Contractor from the Sacramento River which is in excess of the Base Supply. 

15 The United States recognizes the right of the Contractor to make arrangements for 

16 acquisition of water from projects of others than the United States for delivery through 

17 the Sacramento River and tributaries subject to written agreement between Contractor 

18 and the United States as to identification of such water which water when so identified 

19 shall not be deemed Project Water under this Settlement Contract;

20 (n) “Rates” shall mean the payments for Project Water determined 

21 annually by the Contracting Officer in accordance with the then current applicable water 

22 ratesetting policies for the Project, as described in subdivision (a) of Article 8 of this 

23 Settlement Contract;
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1 (o) “Secretary” or “Contracting Officer” shall mean the Secretary of 

2 the Interior, a duly appointed successor, or an authorized representative acting pursuant to 

3 any authority of the Secretary and through any agency of the Department of the Interior;

4 (p) “Surface Water” shall mean only those waters that are considered

5 as surface water under California law;

6 (q) “Water Year” shall mean the period commencing with October 1 

7 of one year and extending through September 30 of the next; and

8 (r) “Year” shall mean a calendar year.

9 TERM OF SETTLEMENT CONTRACT

10 2. (a) This Settlement Contract shall become effective April 1, 2004, and 

11 shall remain in effect until and including March 31, 2044: Provided, that under terms and 

12 conditions mutually agreeable to the parties hereto, renewals may be made for successive 

13 periods not to exceed 40 years each. The terms and conditions of each renewal shall be 

14 agreed upon not later than one year prior to the expiration of the then existing Settlement 

15 Contract. 

16 (b) With respect to Project Water and the portions of this Settlement 

17 Contract pertaining thereto, upon written request by the Contractor of the Secretary made 

18 not later than one year prior to the expiration of this Settlement Contract, whenever, 

19 account being taken of the amount then credited to the costs of construction of water 

20 supply works, the remaining amount of construction costs of water supply work which is 

21 properly assignable for ultimate return by the Contractor as established by the Secretary 

22 of the Interior pursuant to (3) of Section 1 of Public Law 643 (70 Stat. 483), probably can 

23 be repaid to the United States within the term of a contract under subsection 9(d) of the 
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1 1939 Reclamation Project Act (53 Stat. 1187), the relevant portions of this Settlement 

2 Contract may be converted to a contract under said subsection 9(d) upon terms and 

3 conditions mutually agreeable to the United States and the Contractor. The Secretary 

4 shall make a determination 10 years after the date of execution of this Settlement

5 Contract, and every five years thereafter, of whether a conversion to a contract under said 

6 subsection 9(d) can be accomplished pursuant to Public Law 643. Notwithstanding any 

7 provision of this Settlement Contract, the Contractor reserves and shall have all rights and 

8 benefits under Public Law 643.

9 WATER TO BE FURNISHED TO CONTRACTOR

10 3. (a) Subject to the conditions, limitations, and provisions hereinafter 

11 expressed, the Contractor is hereby entitled and authorized to divert from the Sacramento 

12 River at the locations shown in Exhibit A, for beneficial use within the area delineated on

13 Exhibit B, (both Exhibits are attached hereto and made a part hereof), the Contract Total 

14 designated in Exhibit A, or any revision thereof, in accordance with the monthly 

15 operating schedule required by Article 3(c) of this Settlement Contract. The quantity of 

16 any water diverted under this Settlement Contract from the Sacramento River, during the 

17 period April through October, for use on any lands delineated on Exhibit B, by the owner 

18 of such lands or otherwise shall constitute a part of the Contract Total as shown on 

19 Exhibit A and shall be subject to all the provisions of this Settlement Contract relating to 

20 such Contract Total as if such diversion were made by the Contractor.

21 [NOTE: contractor-specific language dealing with individual water rights may be 

22 needed.]
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1 (b) The Contractor may have acquired rights to divert water from the 

2 Sacramento River during the period April through October, that were obtained after the 

3 date of execution of the Existing Contract, or the Contractor may acquire such rights in 

4 the future. All diversions made from the Sacramento River, pursuant to such rights, 

5 during the period April through October, shall not be considered a part of the quantity of 

6 Base Supply and Project Water specified in Exhibit A; Provided, that the quantities 

7 diverted pursuant to the above rights shall be identified on the schedule submitted 

8 pursuant to Article 3(c) below, and shall not be substituted for any Base Supply or Project 

9 Water; Provided, further, that any such identified quantities of other acquired rights may 

10 be diverted by the Contractor before incurring any fee pursuant to Article 3(c)(1), below. 

11 (c) Before April 1 and before the first day of each month thereafter 

12 when a revision is needed, the Contractor shall submit a written schedule to the 

13 Contracting Officer indicating the Contract Total to be diverted by the Contractor during 

14 each month under this Settlement Contract. The United States shall furnish water to the 

15 Contractor in accordance with the monthly operating schedule or any revisions thereof. 

16 However, the United States recognizes the need of the Contractor to change from time to 

17 time its monthly diversions of water from the quantities shown in Exhibit A; the 

18 Contractor may make such changes, provided: 

19 (1) that for the quantity of Base Supply diverted in excess of 

20 the monthly quantity shown in Exhibit A, and as may be reduced in accordance with 

21 Article 5(a), during June, July, August, September, or October of any Water Year, the 

22 Contractor shall be charged a rescheduling fee equal to 50% of the sum of the storage 
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1 operations and maintenance rate and the storage capital rate components of the Project 

2 ratesetting policy.

3 (2) that in no event shall the total quantity scheduled for 

4 diversion by the Contractor from the Sacramento River:

5 (i) During the period April through October exceed the 

6 aggregate of the Contract Total for that period shown in Exhibit A or any revision 

7 thereof;

8 (ii) During the period July through September exceed 

9 the aggregate of the Contract Total for that period shown in Exhibit A or any revision 

10 thereof. 

11 (d) In the event conditions warrant, the Contracting Officer reserves 

12 the right to require the Contractor to submit, at least 72 hours prior to the beginning of 

13 each weekly period, its estimate of daily diversion requirements for each such period 

14 from the Sacramento River: Provided, however, that changes during any such period 

15 may be made upon the giving of 72 hours’ notice thereof to the Contracting Officer.

16 (e) No sale, transfer, exchange, or other disposal of any of the 

17 Contract Total designated in Exhibit A or the right to the use thereof for use on land other 

18 than that shown on Exhibit B shall be made by the Contractor without first obtaining the 

19 written consent of the Contracting Officer. Such consent will not be unreasonably 

20 withheld and a decision will be rendered in a timely manner. For short-term actions that 

21 will occur within one year or less, the decision will be rendered within 30 days after 

22 receipt of a complete written proposal. For long-term actions that will occur in a period 

23 longer than one year, the decision will be rendered within 90 days after receipt of a 
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1 complete written proposal. For a proposal to be deemed complete by the Contracting 

2 Officer, it must comply with all provisions required by State and Federal law, including 

3 information sufficient to enable the Contracting Officer to comply with the National 

4 Environmental Policy Act, the Endangered Species Act, and applicable rules or 

5 regulations then in effect; Provided that, such consent does not authorize the use of 

6 Federal facilities to facilitate or effectuate the sale, transfer, exchange or other disposal of 

7 Base Supply. Such use of Federal facilities will be the subject of a separate agreement to 

8 be entered into between the Contractor and Reclamation.

9 (f) For the purpose of determining whether section 3405(a)(1)(M) of 

10 the CVPIA applies to the Contractor as a transferor or transferee of Project Water, the 

11 Contracting Officer acknowledges that the Contractor is within a county, watershed or 

12 other area of origin, as those terms are utilized under California law.

13 (g) Nothing herein contained shall prevent the Contractor from 

14 diverting water during the months of November through March for beneficial use on the 

15 land shown on Exhibit B or elsewhere to the extent authorized under the laws of the State 

16 of California.

17 (h) The United States assumes no responsibility for and neither it nor 

18 its officers, agents, or employees shall have any liability for or on account of:

19 (1) The quality of water to be diverted by the Contractor;

20 (2) The control, carriage, handling, use, disposal, or 

21 distribution of water diverted by the Contractor outside the facilities constructed and then 

22 being operated and maintained by or on behalf of the United States;
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1 (3) Claims of damage of any nature whatsoever, including but 

2 not limited to, property loss or damage, personal injury, or death arising out of or 

3 connected with the control, carriage, handling, use, disposal, or distribution of said water 

4 outside of the hereinabove referred to facilities; and

5 (4) Any damage whether direct or indirect arising out of or in 

6 any manner caused by a shortage of water whether such shortage be on account of errors 

7 in operation, drought, or unavoidable causes.

8 RETURN FLOW

9 4. Nothing herein shall be construed as an abandonment or a relinquishment 

10 by the United States of any right it may have to the use of waste, seepage, and return flow 

11 water derived from water diverted by the Contractor hereunder and which escapes or is 

12 discharged beyond the boundaries of the lands shown on Exhibit B; Provided, that this 

13 shall not be construed as claiming for the United States any right to such water which is 

14 recovered by the Contractor pursuant to California law from within the boundaries of the 

15 lands shown on Exhibit B, and which is being used pursuant to this Settlement Contract 

16 for surface irrigation or underground storage for the benefit of the lands shown on Exhibit 

17 B by the Contractor. [Colusa Basin Drain language may be required]

18 CONSTRAINTS ON THE AVAILABILITY OF WATER

19 5. (a) In a Critical Year, the Contractor’s Base Supply and Project Water 

20 agreed to be diverted during the period April through October of the Year in which the 

21 principal portion of the Critical Year occurs and, each monthly quantity of said period 

22 shall be reduced by twenty-five percent.
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1 (b) The amount of any overpayment by the Contractor shall, at its 

2 option, be refunded or credited upon amounts to become due to the United States from 

3 the Contractor under the provisions hereof in the ensuing Year. To the extent of such 

4 deficiency such adjustment of overpayment shall constitute the sole remedy of the 

5 Contractor.

6 INTEGRATED WATER MANAGEMENT AND PARTNERSHIPS

7 6. The Contractor and United States desire to work together to maximize the 

8 reasonable beneficial use of water for their mutual benefit. As a consequence, the United 

9 States and the Contractor will work in partnership and with others within the Sacramento 

10 Valley, including other Contractors, to facilitate the better integration within the 

11 Sacramento Valley of all water supplies including, but not limited to, the better 

12 management and integration of surface water and groundwater, the development and 

13 better utilization of surface water storage, the effective utilization of waste, seepage and 

14 return flow water, and other operational and management options that may be identified 

15 in the future. [Language cross-referencing other related agreement will be added as 

16 appropriate to the individual Settlement Contracts.]

17 USE OF WATER FURNISHED TO CONTRACTOR

18 7. (a) Project Water furnished to the Contractor pursuant to this 

19 Settlement Contract shall not be delivered or furnished by the Contractor for any 

20 purposes other than agricultural purposes without the written consent of the Contracting 

21 Officer. For purposes of this Settlement Contract, “agricultural purposes” includes, but is 

22 not restricted to, the watering of livestock, incidental domestic use including related 

23 landscape irrigation, or underground water replenishment.
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1 (b) The Contractor shall comply with requirements applicable to the 

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

3 execution of this Settlement Contract undertaken pursuant to Section 7 of the Endangered 

4 Species Act of 1973, as amended, that are within the Contractor’s legal authority to 

5 implement. The Contractor shall comply with the limitations or requirements imposed by 

6 environmental documentation applicable to the Contractor and within its legal authority 

7 to implement. The Existing Contract, which evidences in excess of 40 years of 

8 diversions, for agricultural uses, of the quantities of water provided for in Article 3, and 

9 the underlying water rights of the Contractor will be considered in developing an 

10 appropriate base-line for the Biological Assessment prepared pursuant to the Endangered 

11 Species Act, and in any other needed environmental review. Nothing herein shall be 

12 construed to prevent the Contractor from challenging or seeking judicial relief in a court 

13 of competent jurisdiction with respect to any biological opinion or other environmental 

14 documentation referred to in this Article.

15 RATE AND METHOD OF PAYMENT FOR WATER

16 8. (a) The Contractor shall make payments to the United States as 

17 provided in this Article for all Project Water shown in Exhibit A as follows: 

18 (1) seventy-five percent of the amount shown as Project Water 

19 shall be paid for by the Contractor in each Year; and in addition

20 (2) the Contractor shall pay for Project Water actually diverted 

21 in excess of seventy-five percent of the amount shown as Project Water. 

22 Such payments shall be at Rates and Charges established in accordance with: 

23 (i) the Secretary’s then-current ratesetting policies for the Project; and (ii) applicable 
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1 Reclamation law and associated rules and regulations, or policies: Provided, that if the 

2 Contractor desires to use Project Water for other than agricultural use the Rates and 

3 Charges set forth above will be adjusted by the Contracting Officer to the applicable 

4 Rates and Charges for such use. The Rates and Charges applicable to the Contractor 

5 upon execution of this Settlement Contract are set forth in Exhibit D, as may be revised 

6 annually. The Secretary’s ratesetting policies for the Project shall be amended, modified, 

7 or superseded only through a public notice and comment procedure. The Contracting 

8 Officer shall adjust the amount of Project Water for which payment is required to the 

9 extent of any reduction in diversions of Project Water made in accordance with the water 

10 conservation provisions of Article 29(e).

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

12 and Charges as follows:

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

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

15 to the period October 1, of the current Year, through September 30, of the following 

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

17 months to review and comment on such estimates. On or before September 15 of each 

18 Year, the Contracting Officer shall notify the Contractor in writing of the Charges to be 

19 in effect during the period October 1 of the current Year, through September 30, of the 

20 following Year, and such notification shall revise Exhibit D.

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

22 shall make available to the Contractor an estimate of the Rates for Project Water for the 

23 following Year and the computations and cost allocations upon which those Rates are 
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1 based. The Contractor shall be allowed not less than two months to review and comment 

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

3 Contracting Officer shall provide the Contractor with the final Rates to be in effect for 

4 the upcoming Year, and such notification shall revise Exhibit D.

5 (c) The Contractor shall pay the United States for Project Water in the 

6 following manner:

7 (1) With respect to Rates, prior to May 1 of each Year, the 

8 Contractor shall pay the United States one-half the total amount payable pursuant to 

9 subdivision (a) of this Article and the remainder shall be paid prior to July 1 or such later 

10 date or dates as may be specified by the United States in a written notice to the 

11 Contractor: Provided, however, that if at any time during the Year the amount of Project 

12 Water diverted by the Contractor shall equal the amount for which payment has been 

13 made, the Contractor shall pay for the remaining amount of such water as shown in 

14 Exhibit A in advance of any further diversion of Project Water.

15 (2) With respect to Charges, the Contractor shall also make a 

16 payment to the United States, in addition to the Rate(s) in subdivision (c)(1) of this 

17 Article, at the Charges then in effect, before the end of the month following the month of 

18 delivery or transfer. The payments shall be consistent with the quantities of Project 

19 Water delivered or transferred. Adjustment for overpayment or underpayment of 

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

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

22 shall be computed pursuant to Article 13 of this Settlement Contract.
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1 (d) Payments to be made by the Contractor to the United States under 

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

3 (1) All revenues received by the United States from the 

4 Contractor relating to the delivery of Project Water or the delivery of non-Project water 

5 through Project facilities shall be allocated and applied in accordance with Federal 

6 Reclamation law and the associated rules or regulations, and the then current Project 

7 ratesetting policies for Irrigation Water.

8 (e) The Contracting Officer shall keep its accounts pertaining to the 

9 administration of the financial terms and conditions of its long-term water service and 

10 Settlement Contracts, in accordance with applicable Federal standards, so as to reflect the 

11 application of Project costs and revenues. The Contracting Officer shall, each Year upon 

12 request of the Contractor, provide to the Contractor a detailed accounting of all Project 

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

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

15 the Contractor shall enter into good faith negotiations to resolve any discrepancies or

16 disputes relating to accountings, reports, or information.

17 (f) The parties acknowledge and agree that the efficient administration 

18 of this Settlement Contract is their mutual goal. Recognizing that experience has 

19 demonstrated that mechanisms, policies, and procedures used for establishing Rates and 

20 Charges and/or for making and allocating payments, other than those set forth in this 

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

22 parties may enter into agreements to modify the mechanisms, policies, and procedures for 
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1 any of those purposes while this Settlement Contract is in effect without amendment of 

2 this Settlement Contract. 

3 (g) For the term of this Settlement Contract, Rates under the respective 

4 ratesetting policies for the Project will be established to recover only reimbursable 

5 operation and maintenance (including any deficits) and capital costs of the Project, as 

6 those terms are used in the then current Project ratesetting policies, and interest, where 

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

8 the relevant Project ratesetting policy. Proposed changes of significance in practices 

9 which implement the ratesetting policies for the Project will not be implemented until the 

10 Contracting Officer has provided the Contractor an opportunity to discuss the nature, 

11 need, and impact of the proposed change. The Contractor retains all rights to challenge 

12 the validity of Rates and Charges imposed pursuant to this Settlement Contract, including 

13 but not limited to operation and maintenance expenses and operation and maintenance 

14 deficits, in an appropriate administrative or judicial proceeding.

15 (h) Except as provided in subsection 3405(a)(1)(B) of the CVPIA, the 

16 Rates for Project Water transferred, exchanged, or otherwise disposed of, by the 

17 Contractor shall be the Contractor’s Rates adjusted upward or downward to reflect the 

18 changed costs of delivery (if any) of the transferred, exchanged, or otherwise disposed of 

19 Project Water to the transferee’s point of delivery in accordance with the then-current 

20 ratesetting policies for the Project. Except as provided in subsection 3407(d)(2)(A) of the 

21 CVPIA, the Charges for Project Water transferred, exchanged, or otherwise disposed of, 

22 by the Contractor shall be the Contractor’s Charges specified in Exhibit D. If the 

23 Contractor is receiving lower Rates and Charges because of inability to pay and is 
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19

1 transferring, exchanging, or otherwise disposing of Project Water to another entity whose 

2 Rates and Charges are not adjusted due to inability to pay, the Rates and Charges for 

3 transferred, exchanged, or otherwise disposed of Project Water shall be the Contractor’s 

4 Rates and Charges unadjusted for ability to pay.

5 (i) Pursuant to the Act of October 27, 1986 (100 Stat. 3050), the 

6 Contracting Officer is authorized to adjust determinations of ability to pay every five 

7 years.

8 (j) Each payment to be made pursuant to subdivisions (a) and (b) of 

9 this Article shall be made at the office of the Bureau of Reclamation, Mid-Pacific Region, 

10 File No. 11546, P.O. Box 6000, San Francisco, California, 94160-1546, or at such other 

11 place as the United States may designate in a written notice to the said Contractor. 

12 Payments shall be made by cash transaction, wire, or any other mechanism as may be 

13 agreed to in writing by the Contractor and the Contracting Officer. In the event there 

14 should be a default in the payment of the amount due, the delinquent payment provisions 

15 of Article 13 shall apply. The Contractor shall not be relieved of the whole or any part of 

16 its said obligation by, on account of, or notwithstanding, as the case may be:

17 (1) Its failure, refusal, or neglect to divert seventy-five percent 

18 of the quantity of Project Water shown on Exhibit A;

19 (2) The default in payment to it by any water user of 

20 assessments, tolls, or other charges levied by or owing to said Contractor;

21 (3) Any judicial determination that any assessment, toll, or 

22 other charge referred to in subsection 8(c)(2) of this Settlement Contract is irregular, 

23 void, or ineffectual; or
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20

1 (4) Any injunctive process enjoining or restraining the 

2 Contractor from making or collecting any such assessment, toll, or other charge referred 

3 to in subsection 8(c)(2) of this Settlement Contract.

4 AGREEMENT ON WATER QUANTITIES

5 9. (a) During the term of this Settlement Contract and any renewals 

6 thereof:

7 (1) It shall constitute full agreement as between the United 

8 States and the Contractor as to the quantities of water and the allocation thereof between 

9 Base Supply and Project Water which may be diverted by the Contractor from the 

10 Sacramento River for beneficial use on the land shown on Exhibit B which said 

11 diversion, use, and allocation shall not be disturbed so long as the Contractor shall fulfill 

12 all of its obligations hereunder;

13 (2) Neither party shall claim any right against the other in 

14 conflict with the provisions of Article 9(a)(1) hereof.

15 (b) Nothing herein contained is intended to or does limit rights of the 

16 Contractor against others than the United States or of the United States against any 

17 person other than the Contractor: Provided, however, that in the event the Contractor, the 

18 United States, or any other person shall become a party to a general adjudication of rights 

19 to the use of water of the Sacramento River system, this Settlement Contract shall not 

20 jeopardize the rights or position of either party hereto or of any other person and the 

21 rights of all such persons in respect to the use of such water shall be determined in such 

22 proceedings the same as if this Settlement Contract had not been entered into, and if final 

23 judgment in any such general adjudication shall determine that the rights of the parties 
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21

1 hereto are different from the rights as assumed herein, the parties shall negotiate an 

2 amendment to give effect to such judgment. In the event the parties are unable to agree 

3 on an appropriate amendment they shall, within 60 days of determining that there is an 

4 impasse, employ the services of a neutral mediator, experienced in resolving water rights 

5 disputes, to assist in resolving the impasse. The cost of the mediation will be shared 

6 equally. A failure to reach agreement on an amendment within 60 days of the end of 

7 mediation will cause the immediate termination of this Settlement Contract.

8 (c) In the event that the California State Water Resources Control 

9 Board or a court of competent jurisdiction issues a final decision or order modifying the 

10 terms and conditions of the water rights of either party to this Settlement Contract in 

11 order to impose Bay-Delta water quality obligations, the Contractor and the United States 

12 shall promptly meet to determine whether or not to modify any of the terms of this 

13 Settlement Contract to comply with the final decision or order, including, but not limited 

14 to, the applicability of the rescheduling charge in Article 3(c)(1) of this Settlement 

15 Contract. If within 60 days of the date of the issuance of the final decision or order the 

16 parties are not able to reach agreement regarding either the need to modify this 

17 Settlement Contract or the manner in which this Settlement Contract is to be modified, 

18 the parties shall promptly retain a neutral mediator, experienced in resolving water right 

19 disputes, to assist the parties in resolving their dispute. The cost of the mediator shall be 

20 shared equally. In the event that either of the parties to this Settlement Contract 

21 determines that the parties will not be able to develop mutually-agreeable modification(s) 

22 to this Settlement Contract even with the assistance of a mediator, either of the parties to 

23 this Settlement Contract may attempt to resolve the impasse by seeking appropriate 
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22

1 judicial relief including, but not limited to, filing a general adjudication of the rights to 

2 the use of water in the Sacramento River system. The foregoing provisions of this sub3 article shall only apply to the incremental obligations contained within a final decision or 

4 order of the State Water Resources Control Board that reflects a modification to the 

5 obligations imposed in State Water Resources Control Board Revised Water Rights 

6 Decision 1641 dated March 15, 2000, and its associated 1995 Water Quality Control Plan 

7 which, taken together, will be considered the baseline for the application of the 

8 provisions of this sub-article.

9 (d) In the event this Settlement Contract terminates, the rights 

10 of the parties to thereafter divert and use water shall exist as if this Settlement Contract 

11 had not been entered into; and the fact that as a compromise settlement of a controversy 

12 as to the respective rights of the parties to divert and use water and the yield of such 

13 rights during the term hereof, this Settlement Contract places a limit on the Contract 

14 Total to be diverted annually by the Contractor during the Settlement Contract term and 

15 segregates it into Base Supply and Project Water shall not jeopardize the rights or 

16 position of either party with respect to its water rights or the yield thereof at all times 

17 after the Settlement Contract terminates. It is further agreed that the Contractor at all 

18 times will first use water to the use of which it is entitled by virtue of its own water 

19 rights, and neither the provisions of this Settlement Contract, action taken thereunder, nor 

20 payments made thereunder to the United States by the Contractor shall be construed as an 

21 admission that any part of the water used by the Contractor during the term of this 

22 Settlement Contract was in fact water to which it would not have been entitled under 

23 water rights owned by it nor shall receipt of payments thereunder by the United States 
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23

1 from the Contractor be construed as an admission that any part of the water used by the 

2 Contractor during the term of this Settlement Contract was in fact water to which it 

3 would have been entitled under water rights owned by it.

4 MEASUREMENT OF WATER

5 10. (a) All water diverted by the Contractor from the Sacramento River 

6 will be diverted at the existing point or points of diversion shown on Exhibit A or at such 

7 other points as may be mutually agreed upon in writing by the Contracting Officer and 

8 the Contractor. 

9 (b) All water diverted from the Sacramento River pursuant to this 

10 Settlement Contract will be measured or caused to be measured by the United States at 

11 each point of diversion with existing equipment or equipment to be installed, operated, 

12 and maintained by the United States, and/or others, under contract with and at the option 

13 of the United States. The equipment and methods used to make such measurement shall 

14 be in accordance with sound engineering practices. Upon request of the Contractor, the 

15 accuracy of such measurements will be investigated by the Contracting Officer and any 

16 errors appearing therein will be corrected.

17 (c) The right of ingress to and egress from all points of diversion is 

18 hereby granted to all authorized employees of the United States. The Contractor also 

19 hereby grants to the United States the right to install, operate, maintain and replace such 

20 equipment on diversion or carriage facilities at each point of diversion as the Contracting 

21 Officer deems necessary.

22 (d) The Contractor shall not modify, alter, remove, or replace 

23 diversion facilities or do any other act which would alter the effectiveness or accuracy of 
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24

1 the measuring equipment installed by the United States or its representatives unless and 

2 until the Contracting Officer has been notified with due diligence and has been given an 

3 opportunity to modify such measuring equipment in such manner as may be necessary or 

4 appropriate. In the event of an emergency the Contractor shall notify the United States 

5 within a reasonable time thereafter as to the existence of the emergency and the nature 

6 and extent of such modification, alteration, removal, or replacement of diversion 

7 facilities.

8 (e) The Contractor shall pay the United States for the costs to repair, 

9 relocate, or replace measurement equipment when the Contractor modifies, alters, 

10 removes, or replaces diversion or carriage facilities.

11 (f) Contractor and Contracting Officer shall develop a mutually 

12 agreeable surface water delivery water measurement program which shall be 

13 implemented by the Contractor, and such measurement program shall be consistent with 

14 the conservation and efficiency criteria for evaluating water conservation plans as 

15 provided in Article 29(a).

16 (g) All new surface water delivery systems installed within the lands 

17 delineated on Exhibit B after the effective date of this Settlement Contract shall also 

18 comply with the measurement provisions described in this Article.

19 RULES AND REGULATIONS

20 11. The parties agree that the delivery of Project Water for irrigation use or 

21 use of Federal facilities pursuant to this Settlement Contract is subject to Federal 

22 Reclamation law, including but not limited to, the Reclamation Reform Act of 1982 (43 
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25

1 U.S.C. 390aa et seq.), as amended and supplemented, and the rules and regulations 

2 promulgated by the Secretary of the Interior under Federal Reclamation law. 

3 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

4

5 12. (a) The obligation of the Contractor to pay the United States as 

6 provided in this Settlement Contract is a general obligation of the Contractor 

7 notwithstanding the manner in which the obligation may be distributed among the 

8 Contractor's water users and notwithstanding the default of individual water users in their 

9 obligations to the Contractor. 

10

11 (b) The payment of Charges becoming due hereunder is a condition 

12 precedent to receiving benefits under this Settlement Contract. The United States shall 

13 not make water available to the Contractor through Project facilities during any period in 

14 which the Contractor may be in arrears in the advance payment of water Rates due the 

15 United States. The Contractor shall not furnish water made available pursuant to this 

16 Settlement Contract for lands or parties which are in arrears in the advance payment of 

17 water rates levied or established by the Contractor. 

18

19 (c) With respect to subdivision (b) of this Article, the Contractor shall 

20 have no obligation to require advance payment for water Rates which it levies.

21

22 CHARGES FOR DELINQUENT PAYMENTS

23

24 13. (a) The Contractor shall be subject to interest, administrative and 

25 penalty charges on delinquent installments or payments. When a payment is not received 

26 by the due date, the Contractor shall pay an interest charge for each day the payment is 

27 delinquent beyond the due date. When a payment becomes 60 days delinquent, the 

28 Contractor shall pay an administrative charge to cover additional costs of billing and 

29 processing the delinquent payment. When a payment is delinquent 90 days or more, the 

30 Contractor shall pay an additional penalty charge of six percent per year for each day the 

31 payment is delinquent beyond the due date. Further, the Contractor shall pay any fees 

32 incurred for debt collection services associated with a delinquent payment. 

33

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

35 quarterly in the Federal Register by the Department of the Treasury for application to 

36 overdue payments, or the interest rate of one-half of one percent per month prescribed by 

37 Section 6 of the Reclamation Project Act of 1939 (Public Law 76-260). The interest 

38 charge rate shall be determined as of the due date and remain fixed for the duration of the 

39 delinquent period. 

40

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

42 amount received shall be applied, first to the penalty, second to the administrative 

43 charges, third to the accrued interest, and finally to the overdue payment.

44
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1 QUALITY OF WATER

2 14. The operation and maintenance of Project facilities shall be performed in 

3 such manner as is practicable to maintain the quality of raw water made available through 

4 such facilities at the highest level reasonably attainable as determined by the Contracting 

5 Officer. The United States does not warrant the quality of water and is under no 

6 obligation to construct or furnish water treatment facilities to maintain or better the 

7 quality of water.

8 WATER AND AIR POLLUTION CONTROL

9 15. The Contractor, in carrying out this Settlement Contract, shall comply 

10 with all applicable water and air pollution laws and regulations of the United States and 

11 the State of California, and shall obtain all required permits or licenses from the 

12 appropriate Federal, State, or local authorities.

13 EQUAL OPPORTUNITY

14 16. During the performance of this Settlement Contract, the Contractor agrees 

15 as follows:

16

17 (a) The Contractor will not discriminate against any employee or 

18 applicant for employment because of race, color, religion, sex, or national origin. The 

19 Contractor will take affirmative action to ensure that applicants are employed, and that 

20 employees are treated during employment, without regard to their race, color, religion, 

21 sex, or national origin. Such action shall include, but not be limited to, the following: 

22 Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; 

23 layoff or termination, rates of payment or other forms of compensation; and selection for 

24 training, including apprenticeship. The Contractor agrees to post in conspicuous places, 

25 available to employees and applicants for employment, notices to be provided by the 

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

27

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

29 employees placed by or on behalf of the Contractor, state that all qualified applicants will 

30 receive consideration for employment without discrimination because of race, color, 

31 religion, sex, or national origin.

32
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1 (c) The Contractor will send to each labor union or representative of 

2 workers with which it has a collective bargaining agreement or other contract or 

3 understanding, a notice, to be provided by the Contracting Officer, advising the said labor 

4 union or workers' representative of the Contractor's commitments under Section 202 of 

5 Executive Order No. 11246 of September 24, 1965, as amended, and shall post copies of 

6 the notice in conspicuous places available to employees and applicants for employment.

7

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

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

10 orders of the Secretary of Labor. 

11

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

13 said amended Executive Order and by the rules, regulations, and orders of the Secretary 

14 of Labor, or pursuant thereto, and will permit access to its books, records, and accounts 

15 by the Contracting Officer and the Secretary of Labor for purposes of investigation to 

16 ascertain compliance with such rules, regulations, and orders.

17

18 (f) In the event of the Contractor's noncompliance with the 

19 nondiscrimination clauses of this Settlement Contract or with any of the said rules, 

20 regulations, or orders, this Settlement Contract may be canceled, terminated, or 

21 suspended, in whole or in part, and the Contractor may be declared ineligible for further 

22 Government contracts in accordance with procedures authorized in said amended 

23 Executive Order, and such other sanctions may be imposed and remedies invoked as 

24 provided in said Executive Order, or by rule, regulation, or order of the Secretary of 

25 Labor, or as otherwise provided by law.

26

27 (g) The Contractor will include the provisions of paragraphs (a) 

28 through (g) in every subcontract or purchase order unless exempted by the rules, 

29 regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of said 

30 amended Executive Order, so that such provisions will be binding upon each 

31 subcontractor or vendor. The Contractor will take such action with respect to any 

32 subcontract or purchase order as may be directed by the Secretary of Labor as a means of 

33 enforcing such provisions, including sanctions for noncompliance: Provided, however, 

34 that in the event the Contractor becomes involved in, or is threatened with, litigation with 

35 a subcontractor or vendor as a result of such direction, the Contractor may request the 

36 United States to enter into such litigation to protect the interests of the United States.

37

38 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

39 (For Districts Only)

40

41 17. (a) The Contractor shall comply with Title VI of the Civil Rights Act 

42 of 1964 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, 

43 as amended), the Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other 

44 applicable civil rights laws, as well as with their respective implementing regulations and 

45 guidelines imposed by the U.S. Department of the Interior and/or Bureau of Reclamation.

46
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1 (b) These statutes require that no person in the United States shall, on 

2 the grounds of race, color, national origin, handicap, or age, be excluded from 

3 participation in, be denied the benefits of, or be otherwise subjected to discrimination 

4 under any program or activity receiving financial assistance from the Bureau of 

5 Reclamation. By executing this Settlement Contract, the Contractor agrees to 

6 immediately take any measures necessary to implement this obligation, including 

7 permitting officials of the United States to inspect premises, programs, and documents.

8

9 (c) The Contractor makes this agreement in consideration of and for 

10 the purpose of obtaining any and all Federal grants, loans, contracts, property discounts, 

11 or other Federal financial assistance extended after the date hereof to the Contractor by 

12 the Bureau of Reclamation, including installment payments after such date on account of 

13 arrangements for Federal financial assistance which were approved before such date. 

14 The Contractor recognizes and agrees that such Federal assistance will be extended in 

15 reliance on the representations and agreements made in this Article, and that the United 

16 States reserves the right to seek judicial enforcement thereof.

17

18 MINGLING OF CONTRACTOR’S PROJECT AND NON-PROJECT WATER

19 18. (a) Project Water must of necessity be transported by the Contractor to 

20 its water users by means of the same works and channels used for the transport of its non21 Project Water including Base Supply. Notwithstanding such mingling of water, the 

22 provisions of Article 11 hereof shall be applicable only to Project Water, and such 

23 mingling of water shall not in any manner subject to the provisions of Article 11 hereof 

24 the Contractor’s non-Project water including Base Supply.

25 (b) If required in accordance with subdivision (c) of this Article, the 

26 Contractor shall install and maintain such measuring equipment and distribution facilities 

27 and maintain such records as may be necessary to determine the amounts of water 

28 delivered to Excess Lands served by the Contractor. The Contractor shall not within any 

29 month deliver to Ineligible Lands water in excess of the non-Project Water, including 

30 Base Supply, for that month. The Contracting Officer or authorized representative shall 

31 have the right at all reasonable times to inspect such records and measuring equipment.
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1 (c) The Contractor will not be considered in violation of the 

2 requirement that Project Water be delivered only to Eligible Lands during any month of 

3 the irrigation season that the water requirement for beneficial use on Eligible Lands for 

4 that month is equal to or in excess of the Project Water for that month as shown on 

5 Exhibit A or any revision thereof pursuant to subdivision (c) of Article 3. The water 

6 requirement for beneficial use on Eligible Lands will be determined by multiplying:

7 (1) the number of irrigable acres of the particular types of 

8 crops grown in that year on the acreage designated as eligible by

9 (2) the Unit Duties as set forth in Exhibit C attached hereto and 

10 made a part hereof, or by such other Unit Duties mutually agreed upon by the Contractor 

11 and the Contracting Officer. In order to make the computation of the water requirement 

12 for Eligible Lands, on April 1 of each Year and concurrently with its order for water for 

13 the irrigation season, the Contractor shall designate the acreage of and type of crops to be 

14 grown on its Eligible Lands that irrigation season. During any month the water 

15 requirement as above determined for crops growing on Eligible Lands during such month 

16 is equal to or in excess of the Project Water for that month as provided herein the 

17 Contractor shall not be required to measure the water delivered to Excess Lands. Any 

18 month the said water requirement is less than the amount of Project Water as provided 

19 herein, the Contractor will be required to measure water delivered to excess land in 

20 accordance with subdivision (b) hereof.

21 BOOKS, RECORDS, AND REPORTS

22 19. The Contractor shall establish and maintain accounts and other books and 

23 records pertaining to administration of the terms and conditions of this Settlement 

24 Contract, including: the Contractor's financial transactions, water supply data, and 

25 Project land and right-of-way agreements; the water users' land-use (crop census), land 
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1 ownership, land-leasing and water use data; and other matters that the Contracting 

2 Officer may require. Reports thereon shall be furnished to the Contracting Officer in 

3 such form and on such date or dates as the Contracting Officer may require. Subject to 

4 applicable Federal laws and regulations, each party to this Settlement Contract shall have 

5 the right during office hours to examine and make copies of each other’s books and 

6 official records relating to matters covered by this Settlement Contract. 

7

8 CHANGE OF PLACE OF USE OR ORGANIZATION

9 20. (a) Unless the written consent of the United States is first obtained no 

10 change shall be made in the place of water use shown on Exhibit B.

11 (b) While this Settlement Contract is in effect, no change shall be 

12 made in the area of the Contractor as shown on its Exhibit B, by inclusion, exclusion, 

13 annexation or detachment of lands, by dissolution, consolidation, or merger or otherwise, 

14 except upon the Contracting Officer’s written consent thereto. Such consent will not be 

15 unreasonably withheld and a decision will be provided in a timely manner. [There may 

16 need to be Contractor specific language added.]

17 (c) In the event lands are annexed to or detached from the area of the 

18 Contractor, as provided herein, the quantity of Project Water to be diverted may be 

19 increased or decreased, as may be appropriate, pursuant to a supplemental agreement to 

20 be executed in respect thereto.

21 CONSOLIDATION OF CONTRACTING ENTITIES

22

23 21. Consolidation of Contractors may be approved by the Contracting Officer 

24 provided: (i) the Contracting Officer approves the form and organization of the resulting 

25 entity and the utilization by it of the Contract Total; and (ii) the obligations of the 

26 Contractors are assumed by such entity.

27 No such consolidation shall be valid unless and until approved by the Contracting 

28 Officer.
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1 NOTICES

2 22. Any notice, demand, or request authorized or required by this Settlement 

3 Contract shall be deemed to have been given, on behalf of the Contractor, when mailed, 

4 postage prepaid, or delivered to the Area Manager, Northern California Area Office, 

5 Bureau of Reclamation, 16349 Shasta Dam Blvd., Shasta Lake, California, 96019, and on 

6 behalf of the United States, when mailed, postage prepaid, or delivered to the Board of 

7 Directors /City Council of the _____________________. The designation of the 

8 addressee or the address may be changed by notice given in the same manner as provided 

9 in this Article for other notices.

10

11 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

12

13 23. (a) The provisions of this Settlement Contract shall apply to and bind 

14 the successors and assigns of the parties hereto, but no assignment or transfer of this 

15 Settlement Contract or any right or interest therein shall be valid until approved in writing 

16 by the Contracting Officer.

17

18 (b) The assignment of any right or interest in this Settlement Contract 

19 by either party shall not interfere with the rights or obligations of the other party to this 

20 Settlement Contract absent the written concurrence of said other party.

21

22 (c) The Contracting Officer shall not unreasonably condition or 

23 withhold his approval of any proposed assignment.

24

25 OFFICIALS NOT TO BENEFIT

26

27 24. (a) No Member of or Delegate to Congress, Resident Commissioner, 

28 or official of the Contractor shall benefit from this Settlement Contract other than as a 

29 water user or landowner in the same manner as other water users or landowners.

30

31 (b) No officer or member of the governing board of the Contractor 

32 shall receive any benefit that may arise by reason of this Settlement Contract other than 

33 as a landowner within the Contractor’s service area and in the same manner as other 

34 landowners within the said service area.

35

36 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS

37

38 25. The expenditure or advance of any money or the performance of any 

39 obligation of the United States under this Settlement Contract shall be contingent upon 

40 appropriation or allotment of funds. Absence of appropriation or allotment of funds shall 

41 not relieve the Contractor from any obligations under this Settlement Contract. No 

42 liability shall accrue to the United States in case funds are not appropriated or allotted.

43
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1 CONFIRMATION OF SETTLEMENT CONTRACT

2 26. The Contractor, after the execution of this Settlement Contract, shall 

3 promptly seek to secure a decree of a court of competent jurisdiction of the State of 

4 California, if appropriate, confirming the execution of this Settlement Contract. The 

5 Contractor shall furnish the United States a certified copy of the final decree, the 

6 validation proceedings, and all pertinent supporting records of the court approving and 

7 confirming this Settlement Contract, and decreeing and adjudging it to be lawful, valid, 

8 and binding on the Contractor. This Settlement Contract shall not be binding on the 

9 United States until such final decree has been secured. 

10

11 UNAVOIDABLE GROUNDWATER PERCOLATION

12 27. To the extent applicable, the Contractor shall not be deemed to have 

13 delivered Project Water to Excess Lands or Ineligible Lands if such lands are irrigated 

14 with groundwater that reaches the underground strata as an unavoidable result of the 

15 delivery of Project Water by the Contractor to Eligible Lands.

16 PRIVACY ACT COMPLIANCE

17

18 28. (a) The Contractor shall comply with the Privacy Act of 1974 (5 

19 U.S.C. 552a) (the Act) and the Department of the Interior rules and regulations under the 

20 Act (43 CFR 2.45 et seq.) in maintaining Landholder acreage certification and reporting 

21 records, required to be submitted to the Contractor for compliance with Sections 206 and 

22 228 of the Reclamation Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 

23 426.18.

24

25 (b) With respect to the application and administration of the criminal 

26 penalty provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's 

27 employees responsible for maintaining the certification and reporting records referenced 

28 in (a) above are considered to be employees of the Department of the Interior. See 5 

29 U.S.C. 552a(m). 

30

31 (c) The Contracting Officer or a designated representative shall 

32 provide the Contractor with current copies of the Interior Department Privacy Act 

33 regulations and the Bureau of Reclamation Federal Register Privacy Act System of 

34 Records Notice (Acreage Limitation--Interior, Reclamation-31) which govern the 

35 maintenance, safeguarding, and disclosure of information contained in the Landholder's 

36 certification and reporting records. 

37

38 (d) The Contracting Officer shall designate a full-time employee of the 

39 Bureau of Reclamation to be the System Manager who shall be responsible for making 

40 decisions on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 
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1 43 CFR 2.72. The Contractor is authorized to grant requests by individuals for access to 

2 their own records. 

3

4 (e) The Contractor shall forward promptly to the System Manager 

5 each proposed denial of access under 43 CFR 2.64; and each request for amendment of 

6 records filed under 43 CFR 2.71; notify the requester accordingly of such referral; and 

7 provide the System Manager with information and records necessary to prepare an 

8 appropriate response to the requester. These requirements do not apply to individuals 

9 seeking access to their own certification and reporting forms filed with the Contractor 

10 pursuant to 43 CFR 426.18, unless the requester elects to cite the Privacy Act as a basis 

11 for the request.

12

13 WATER CONSERVATION

14 29. (a) Prior to the diversion of Project Water, the Contractor shall be 

15 implementing an effective water conservation and efficiency program based on the 

16 Basin-Wide Water Management Plan and/or Contractor's water conservation plan that 

17 has been determined by the Contracting Officer to meet the conservation and efficiency 

18 criteria for evaluating water conservation plans established under Federal law. The water 

19 conservation and efficiency program shall contain definite water conservation objectives, 

20 appropriate economically feasible water conservation measures, and time schedules for 

21 meeting those objectives. Continued diversion of Project Water pursuant to this 

22 Settlement Contract shall be contingent upon the Contractor’s continued implementation 

23 of such water conservation program. In the event the Contractor's water conservation 

24 plan or any revised water conservation plan completed pursuant to subdivision (c) of 

25 Article 29 of this Settlement Contract have not yet been determined by the Contracting 

26 Officer to meet such criteria, due to circumstances which the Contracting Officer 

27 determines are beyond the control of the Contractor, Project Water deliveries shall be 

28 made under this Settlement Contract so long as the Contractor diligently works with the 

29 Contracting Officer to obtain such determination at the earliest practicable date, and 
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1 thereafter the Contractor immediately begins implementing its water conservation and 

2 efficiency program in accordance with the time schedules therein.

3 (b) The Contractor shall submit to the Contracting Officer a report on 

4 the status of its implementation of the water conservation plan on the reporting dates 

5 specified in the then existing conservation and efficiency criteria established under 

6 Federal law.

7 (c) At five year intervals, the Contractor shall revise its water 

8 conservation plan to reflect the then current conservation and efficiency criteria for 

9 evaluating water conservation plans established under Federal law and submit such 

10 revised water management plan to the Contracting Officer for review and evaluation. 

11 The Contracting Officer will then determine if the water conservation plan meets 

12 Reclamation’s then current conservation and efficiency criteria for evaluating water 

13 conservation plans established under Federal law.

14 (d) If the Contractor is engaged in direct ground-water recharge, such 

15 activity shall be described in the Contractor’s water conservation plan.

16 (e) In order to provide incentives for water conservation, the 

17 Contractor may reduce the amount of Project Water for which payment is required under 

18 Article 8(a) in accordance with the provisions of this Article 29(e).

19 (1) On or before February 15 of any Water Year, the 

20 Contractor may file with Reclamation an offer to reduce Project Water use, hereinafter 

21 referred to as Offer. The Offer shall specify the maximum quantity of Project Water to 

22 be diverted by the Contractor for each month that Project Water is available for that 

23 Water Year under this Settlement Contract. The Contracting Officer shall provide the 
R.O. Draft 03/11-2003

35

1 Contractor with a decision, in writing, to the Offer on or before March 15 of that Water 

2 Year. The dates specified in this Article 29(e)(1) can be changed if mutually agreed to, in 

3 writing, by the Contractor and Contracting Officer.

4 (2) If Reclamation accepts the Offer, the Contractor’s payment 

5 obligation under Article 8(a)(1) shall be reduced to the maximum quantity of Project 

6 Water to be diverted by the Contractor as specified in the Offer. The Contractor shall not 

7 divert Project Water in excess of the quantities set forth in the Offer: Provided, however, 

8 if the Contractor’s diversions of Project Water exceed the quantities set forth in the Offer, 

9 the Contractor shall pay to Reclamation the applicable Rates and Charges plus an amount 

10 equal to the applicable Rates and Charges, unadjusted for ability to pay, for each acre11 foot of Project Water diverted in excess of the quantities set forth in the Offer.

12 (3) If Reclamation decides not to accept the Offer, the 

13 Contractor’s payment obligation will remain as specified in Article 8(a)(1).

14 (4) The provisions of this Article 29(e) shall be in addition to 

15 and shall not affect the provisions of Article 3(e) pertaining to the sale, transfer, exchange 

16 or other disposal of the Contract Total designated in Exhibit A.

17 OPINIONS AND DETERMINATIONS

18

19 30. (a) Where the terms of this Settlement Contract provide for actions to 

20 be based upon the opinion or determination of either party to this Settlement Contract, 

21 said terms shall not be construed as permitting such action to be predicated upon 

22 arbitrary, capricious, or unreasonable opinions or determinations. Both parties, 

23 notwithstanding any other provisions of this Settlement Contract, expressly reserve the 

24 right to seek relief from and appropriate adjustment for any such arbitrary, capricious, or 
R.O. Draft 03/11-2003

36

1 unreasonable opinion or determination. Each opinion or determination by either party 

2 shall be provided in a timely manner. Nothing in subdivision (a) of Article 30 of this 

3 Settlement Contract is intended to or shall affect or alter the standard of judicial review 

4 applicable under Federal law to any opinion or determination implementing a specific 

5 provision of Federal law embodied in statute or regulation. 

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

7 determinations necessary to administer this Settlement Contract that are consistent with 

8 the provisions of this Settlement Contract, the laws of the United States and of the State 

9 of California, and the rules and regulations promulgated by the Secretary of the Interior. 

10 Such determinations shall be made in consultation with the Contractor to the extent 

11 reasonably practicable.

12 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

13 31. (a) In addition to all other payments to be made by the Contractor 

14 pursuant to this Settlement Contract, the Contractor shall pay to the United States, within 

15 60 days after receipt of a bill and detailed statement submitted by the Contracting Officer 

16 to the Contractor for such specific items of direct cost incurred by the United States for 

17 work requested by the Contractor associated with this Settlement Contract plus indirect 

18 costs in accordance with applicable Bureau of Reclamation policies and procedures. All 

19 such amounts referred to in this Article shall not exceed the amount agreed to in writing 

20 in advance by the Contractor. This Article shall not apply to costs for routine contract 

21 administration.

22 (b) All advances for miscellaneous costs incurred for work requested 

23 by the Contractor pursuant to Article 31 of this Settlement Contract shall be adjusted to 
R.O. Draft 03/11-2003

37

1 reflect the actual costs when the work has been completed. If the advances exceed the 

2 actual costs incurred, the difference will be refunded to the Contractor. If the actual costs 

3 exceed the Contractor's advances, the Contractor will be billed for the additional costs 

4 pursuant to Article 31 of this Settlement Contract.

5 WAIVER OF DEFAULT

6 32. The waiver by either party to this Settlement Contract as to any default 

7 shall not be construed as a waiver of any other default or as authority of the other party to 

8 continue such default or to make, do, or perform, or not to make, do, or perform, as the 

9 case may be, any act or thing which would constitute a default.
R.O. Draft 03/11-2003

38

1 IN WITNESS WHEREOF, the parties hereto have executed this Settlement 

2 Contract as of the day and year first hereinabove written.

3

4 THE UNITED STATES OF AMERICA

5

6

7

8 By: __________________________

9 Regional Director, Mid-Pacific Region 

10 Bureau of Reclamation

11

12

13 (SEAL)

14

15

16 (Contractor)

17

18

19 By:______________________________

20 President

21

22

23 ATTEST:

24

25

26 ________________________________

27 Secretary

28

29

30 (I:\sac river renewal\contract drafts\StdIrrDft Contract Final.doc)
R.O. Draft 03/11-2003

39

1 2003 Water Rates and Charges for Contract No. ##-##-###-#####

2 Contractor Name - Sacramento River

3

4

5

6 Per Acre-Foot 

7

8 COST OF SERVICE RATES:

9

10 Capital Rates $4.24 

11

12 O&M Rates:

13

14 Water Marketing $5.66

15 Storage $4.87

16

17 Deficit Rates:

18

19 Interest Bearing $3.34

20

21 TOTAL $18.11

22

23 FULL-COST RATES:

24

25 Section 202(3) Rate is applicable to a

26 Qualified Recipient or to a Limited

27 Recipient receiving irrigation water

28 on or before October 1, 1981. $22.12

29

30 Section 205(a)(3) Rate is 

31 applicable to a Limited Recipient that

32 did not receive irrigation water on or

33 before October 1, 1981. $24.47

34

35

36 CHARGES UNDER P.L. 102-575 TO THE

37 RESTORATION FUND 1/

38

39 Restoration Payments (3407(d)(2)(A)) $7.54

40

41

42 1/ Restoration fund charges are payments in addition to the water rates and were 

43 determined pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges 

44 are on a fiscal year basis (10/1 - 9/30).
R.O. Draft 05/15-2002

Contract No.

Standard Irrigation District Form

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

Central Valley Project, California

CONTRACT BETWEEN THE UNITED STATES AND

___________________________________________________

DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES PROVIDING 

FOR PROJECT WATER SERVICE AND AGREEMENT ON DIVERSION OF 

WATER

Table of Contents

Article No. Title Page No.

Preamble 1

Explanatory Recitals 2-3

1 Definitions 3-6

2 Term of Contract 6-7

3 Water to be Furnished to Contractor 7-9

4 Return Flow 9

5 Constraints on the Availability of Water 10-11

6 Use of Water Furnished to Contractor 11

7 Rate and Method of Payment for Water 11-16

8 Agreement on Water Quantities 16-18

9 Measurement of Water 18-20

10 Rules and Regulations 20-21

11 General Obligation – Benefits Conditioned 

Upon Payment 21

12 Charges For Delinquent Payments 21

13 Quality of Water 22

14 Water and Air Pollution Control 22

15 Equal Opportunity 22-23

16 Compliance With Civil Rights Laws 

And Regulations 23-24

17 Mingling of Contractor’s Project and 

Non-Project Water 24-25

18 Books, Records, and Reports 25-26

19 Change Of Place Of Use Or Organization 26
Table of Contents – continued

Article No. Title Page No.

20 Consolidation Of Contracting Entities 26

21 Notices 26-27

22 Assignment Limited – Successors and 

Assigns Obligated 27

23 Officials Not to Benefit 27

24 Contingent Upon Appropriation or

Allotment of Funds 27

25 Confirmation of Contract 27

26 Unavoidable Groundwater Percolation 28

27 Privacy Act Compliance 28

28 Water Conservation 29-30

29 Opinions And Determinations 30-31

30 Contractor to Pay Certain Miscellaneous Costs 31

31 Waiver of Default 31

Signatures 32

Exhibit A Schedule of Monthly Diversions of Water

Exhibit B Map of Contractor’s Ownership

Exhibit C Unit Duties

Exhibit D Rates and Charges
1 R.O. Draft 05/15-2002

2 Contract No.

3 Standard Irrigation District Form

4

5

6 UNITED STATES

7 DEPARTMENT OF THE INTERIOR

8 BUREAU OF RECLAMATION

9 Central Valley Project, California

10

11 CONTRACT BETWEEN THE UNITED STATES AND

12 _______________________________________________

13 DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES PROVIDING 

14 FOR PROJECT WATER SERVICE AND AGREEMENT ON DIVERSION OF 

15 WATER

16

17 THIS CONTRACT, made this _____ day of ____________________, 2002, 

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

19 supplementary thereto, including, but not limited to, the Acts of August 26, 1937 (50 

20 Stat. 844), as amended and supplemented, August 4, 1939 (53 Stat. 1187), as amended 

21 and supplemented, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 

22 1982 (96 Stat. 1262), October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV 

23 of the Act of October 30, 1992 (106 Stat. 4706), all collectively hereinafter referred to as 

24 Federal Reclamation law, between THE UNITED STATES OF AMERICA, hereinafter 

25 referred to as the United States, and _______________________, hereinafter referred to 

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

27 acting pursuant to the laws thereof, with its principal place of business in California; 

28 (may change depending on contracting entity)

29 WITNESSETH, That:
2

1 EXPLANATORY RECITALS

2 WHEREAS, the United States has constructed and is operating the Central Valley 

3 Project, California, for diversion, storage, carriage, distribution and beneficial use, for 

4 flood control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, 

5 protection and restoration, generation and distribution of electric energy, salinity control, 

6 navigation and other beneficial uses, of waters of the Sacramento River, the American 

7 River, the Trinity River, and the San Joaquin River and their tributaries; and

8 WHEREAS, the Contractor asserts that it has rights to divert, is diverting, and 

9 will continue to divert for reasonable beneficial use, water from the natural flow of the 

10 Sacramento River and tributaries thereto, that would have been flowing therein if the 

11 Central Valley Project were not in existence; and

12 WHEREAS, the construction and operation of the integrated and coordinated 

13 Central Valley Project has changed and will further change the regimen of the 

14 Sacramento, American, San Joaquin, and Trinity Rivers and the Sacramento-San Joaquin 

15 Delta from unregulated flow to regulated flow; and

16 WHEREAS, the United States asserts that it has rights to divert, is diverting, and 

17 will continue to divert waters from said Rivers and said Delta in connection with the 

18 operation of said Central Valley Project, and

19 WHEREAS, the Contractor and the United States entered into Contract No. 

20 ______________, as amended, hereinafter referred to as the Existing Contract, which 

21 established terms for the delivery to the Contractor of Central Valley Project Water and 

22 the quantities of Base Supply the Contractor may divert from the Sacramento River from 

23 ____________ through ______________________; and
3

1 WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

3 the laws of the State of California, and the United States has determined that the 

4 Contractor has fulfilled all of its obligations under the Existing Contract; and

5 WHEREAS, to assure the Contractor of the enjoyment and use of the regulated 

6 flow of the said Rivers and the Delta, and to provide for the economical operation of the 

7 Central Valley Project by, and the reimbursement to, the United States for expenditures 

8 made for said Project; 

9 NOW, THEREFORE, in consideration of the performance of the herein 

10 contained provisions, conditions, and covenants, it is agreed as follows:

11 DEFINITIONS

12 1. When used herein, unless otherwise expressed or incompatible with the intent 

13 hereof, the term:

14 (a) “Base Supply” shall mean the quantity of water established in Articles 3 

15 and 5 which the United States agrees may be diverted by the Contractor from the 

16 Sacramento River each month during the period April through October of each Year 

17 without payment to the United States for such quantities diverted;

18 (b) “Charges” shall mean the payments for Project Water required by Federal 

19 Reclamation law in addition to the Rates specified in this Contract as determined 

20 annually by the Contracting Officer pursuant to this Contract;

21 (c) “Contract Total” shall mean the sum of the Base Supply and Project 

22 Water available for diversion by the Contractor for the period April 1 through October 

23 31;
4

1 (d) “Critical Year” shall mean any Year in which either of the following 

2 eventualities exists:

3 (1) The forecasted full natural inflow to Shasta Lake for the current Water 

4 Year, as such forecast is made by the United States on or before February 15 and 

5 reviewed as frequently thereafter as conditions and information warrant, is equal to or 

6 less than three million two hundred thousand (3,200,000) acre-feet; or

7 (2) The total accumulated actual deficiencies below four million 

8 (4,000,000) acre-feet in the immediately prior Water Year or series of successive prior 

9 Water Years each of which had inflows of less than four million (4,000,000) acre-feet, 

10 together with the forecasted deficiency for the current Water Year, exceed eight hundred 

11 thousand (800,000) acre-feet. For the purpose of determining a Critical Year the 

12 computed inflow to Shasta Lake under present upstream development above Shasta Lake 

13 shall be used as the full natural inflow to Shasta Lake. In the event that major 

14 construction occurs above Shasta Lake after April 1, 2004, which materially alters the 

15 present regimen of the stream systems contributing to Shasta Lake, the computed inflow 

16 to Shasta Lake used to define a Critical Year will, be adjusted to eliminate the effect of 

17 such material alterations. After consultation with the State of California, the National 

18 Weather Service, and other recognized forecasting agencies, the Contracting Officer will 

19 select the forecast to be used and will make the details of it available to the Contractor. 

20 The same forecasts used by the United States for the operation of the Project shall be 

21 used to make the forecasts hereunder;

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

23 XXXIV of the Act of October 30, 1992 (106 Stat. 4706);
5

1 (f) “Eligible Lands” shall mean all lands to which Project Water may be 

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

3 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA;

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

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

6 Federal Reclamation law;

7 (h) “Full Cost Rate” shall mean that water rate described in Sections 

8 205(a)(3) or 202(3) of the RRA, whichever is applicable;

9 (i) “Ineligible Lands” shall mean all lands to which Project Water may not be 

10 delivered in accordance with Section 204 of the RRA;

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

12 nonexempt land, as provided in 43 CFR 426.2;

13 (k) “Project” shall mean the Central Valley Project owned by the United 

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

15 (l) “Project Water” shall mean all water diverted or scheduled to be diverted 

16 each month during the period April through October of each Year by the Contractor from 

17 the Sacramento River which is in excess of the Base Supply. The United States 

18 recognizes the right of the Contractor to make arrangements for acquisition of water from 

19 projects of others than the United States for delivery through the Sacramento River and 

20 tributaries subject to written agreement between Contractor and the United States as to 

21 identification of such water which water when so identified shall not be deemed Project 

22 Water under this contract;
6

1 (m) “Rates” shall mean the payments for Project Water determined annually 

2 by the Contracting Officer in accordance with the then current applicable water 

3 ratesetting policies for the Project, as described in subdivision (a) of Article 8 of this 

4 Contract;

5 (n) “Secretary” or “Contracting Officer” shall mean the Secretary of the 

6 Interior, a duly appointed successor, or an authorized representative acting pursuant to 

7 any authority of the Secretary and through any agency of the Department of the Interior;

8 (o) “Water Year” shall mean the period commencing with October 1 of one 

9 year and extending through September 30 of the next; and

10 (p) “Year” shall mean a calendar year.

11 TERM OF CONTRACT

12 2. This contract shall become effective April 1, 2004, and shall remain in effect 

13 until and including March 31, 2044: Provided, That under terms and conditions mutually 

14 agreeable to the parties hereto, renewals may be made for successive periods not to 

15 exceed forty (40) years each. The terms and conditions of each renewal shall be agreed 

16 upon not later than one (1) year prior to the expiration of the then existing contract: 

17 Provided further, That upon written request by the Contractor of the Secretary made not 

18 later than one (1) year prior to the expiration of this contract, whenever, account being 

19 taken of the amount then credited to the costs of construction of water supply works, the 

20 remaining amount of construction costs of water supply work which is properly 

21 assignable for ultimate return by the Contractor as established by the Secretary of the 

22 Interior pursuant to (3) of Section 1 of Public Law 643 (70 Stat. 483), probably can be 

23 repaid to the United States within the term of a contract under subsection (d), Section 9 of 
7

1 the1939 Reclamation Project Act (53 Stat. 1187), this contract may be converted to a 

2 contract under said subsection (d) upon terms and conditions mutually agreeable to the 

3 United States and the Contractor. Notwithstanding any provision of this contract, the 

4 Contractor reserves and shall have all rights and benefits under Public Law 643.

5 WATER TO BE FURNISHED TO CONTRACTOR

6 3. (a) Subject to the conditions, limitations, and provisions hereinafter expressed, 

7 the Contractor is hereby entitled and authorized to divert from the Sacramento River at 

8 the locations shown in Exhibit A, for beneficial use within the area delineated on Exhibit 

9 B, (both Exhibits are attached hereto and made a part hereof), the Contract Total 

10 designated in Exhibit A, or any revision thereof, in accordance with the monthly 

11 operating schedule required by Article 3(b) of this contract. The quantity of any water 

12 diverted from the Sacramento River for use on any lands delineated on Exhibit B, by the 

13 owner of such lands or otherwise shall constitute a part of the Contract Total as shown on 

14 Exhibit A and shall be subject to all the provisions of this contract relating to such 

15 Contract Total as if such diversion were made by the Contractor.

16 (b) The United States recognizes the need of the Contractor to vary from time 

17 to time its monthly diversions of water from the quantities shown in Exhibit A, or any 

18 revision thereof. Before April 1 of each Year the Contractor shall submit a written 

19 schedule to the Contracting Officer indicating the Contract Total to be diverted by the 

20 Contractor during each month. The United States shall furnish water to the Contractor in 

21 accordance with the monthly operating schedule or any revisions thereof: Provided, That 

22 in no event shall the total quantity scheduled for diversion by the Contractor from the 

23 Sacramento River:
8

1 (1) During the period April through October exceed the aggregate of the 

2 Contract Total for those months shown in Exhibit A or any revision thereof;

3 (2) During the period July through September exceed the aggregate of the 

4 Contract Total for those months shown in Exhibit A or any revision thereof; and 

5 Provided, further, That with the prior written approval of the Contracting Officer, water 

6 to be diverted in April, May, or June may be diverted in September or October, or vice 

7 versa. The Contractor shall be charged a fee based upon the appropriate components of 

8 the water ratesetting policy for the Project for the Base Supply scheduled for diversion in 

9 April, May, or June that is diverted in September or October, or vice versa. 

10 (c) In the event conditions warrant, the Contracting Officer reserves the right 

11 to require the Contractor to submit, at least seventy-two (72) hours prior to the beginning 

12 of each weekly period, its estimate of daily diversion requirements for each such period 

13 from the Sacramento River: Provided, however, That changes during any such period 

14 may be made upon the giving of seventy-two (72) hours’ notice thereof to the 

15 Contracting Officer.

16 (d) No sale, transfer, exchange, or other disposal of any water or the right to 

17 the use thereof for use on land other than that shown on Exhibit B shall be made by the 

18 Contractor without: 

19 (1) First obtaining the written consent of the Contracting Officer; and

20 (2) Compliance with all applicable State and Federal laws, including but 

21 not limited to the National Environmental Policy Act and the Endangered Species Act, 

22 and applicable guidelines or regulations then in effect. 
9

1 (e) Nothing herein contained shall prevent the Contractor from diverting 

2 water during the months of November through March for beneficial use on the land 

3 shown on Exhibit B to the extent authorized under the laws of the State of California.

4 (f) The United States assumes no responsibility for and neither it nor its 

5 officers, agents, or employees shall have any liability for or on account of:

6 (1) The quality of water to be diverted by the Contractor;

7 (2) The control, carriage, handling, use, disposal, or distribution of water 

8 diverted by the Contractor outside the facilities constructed and then being operated and 

9 maintained by or on behalf of the United States;

10 (3) Claims of damage of any nature whatsoever, including but not limited 

11 to, property loss or damage, personal injury, or death arising out of or connected with the 

12 control, carriage, handling, use, disposal, or distribution of said water outside of the 

13 hereinabove referred to facilities; and

14 (4) Any damage whether direct or indirect arising out of or in any manner 

15 caused by a shortage of water whether such shortage be on account of errors in operation, 

16 drought, or unavoidable causes.

17 RETURN FLOW

18 4. The United States reserves the right to the use of all waste, seepage, and return 

19 flow water derived from water diverted by the Contractor hereunder and which escapes 

20 or is discharged beyond the boundaries of the lands shown on Exhibit B. Nothing herein 

21 shall be construed as an abandonment or a relinquishment by the United States of the 

22 right to the use of any such water; Provided, That this shall not be construed as claiming 

23 for the United States any right to such water which is recovered by the Contractor 
10

1 pursuant to California law from within the boundaries of the lands shown on Exhibit B, 

2 and which is being used pursuant to this contract for surface irrigation or underground 

3 storage on the lands shown on Exhibit B by the Contractor. (Colusa Basin Drain 

4 language may be required)

5 CONSTRAINTS ON THE AVAILABILITY OF WATER

6 5. (a) In any Water Year that (1) the forecasted full natural inflow to Shasta Lake 

7 for the current Water Year, as such forecast is made by the United States on or before 

8 February 15 and reviewed as frequently thereafter as conditions and information warrant, 

9 is equal to or less than three million eight hundred thousand (3,800,000) acre-feet; or

10 (2) If the total accumulated actual deficiencies in the full natural inflow to Shasta 

11 Lake in the immediately prior Water Year or series of successive prior Water Years, each 

12 of which had inflows of less than four million (4,000,000) acre-feet, together with the 

13 forecasted deficiency for the current Water Year, are between 200,000 acre-feet and 

14 800,000 acre-feet, then the following reductions in the Contractor’s monthly Contract 

15 Total shall be imposed:

16 Deficiency (acre-feet) Reduction

17 200,000 – 400,000 10 percent

18 400,001 – 600,000 15 percent

19 600,001 – 800,000 20 percent

20

21 (b) In a Critical Year, the Contractor’s Base Supply and Project Water agreed 

22 to be diverted during the period April through October of the Year in which the principal 

23 portion of the Critical Year occurs and, each monthly quantity of said period shall be 

24 reduced by twenty-five percent (25%). 

25 (c) The amount of any overpayment by the Contractor shall, at its option, be 

26 refunded or credited upon amounts to become due to the United States from the 
11

1 Contractor under the provisions hereof in the ensuing Year. To the extent of such 

2 deficiency such adjustment of overpayment shall constitute the sole remedy of the 

3 Contractor.

4 USE OF WATER FURNISHED TO CONTRACTOR

5 6. (a) Project Water furnished to the Contractor pursuant to this contract shall not 

6 be delivered or furnished by the Contractor for any purposes other than agricultural 

7 purposes, including, but not restricted to, the watering of livestock, incidental domestic

8 use, or underground water replenishment without written consent of the Contracting 

9 Officer.

10 (b) The Contractor shall comply with requirements applicable to the 

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

12 execution of this Contract undertaken pursuant to Section 7 of the Endangered Species 

13 Act of 1973, as amended, that are within the Contractor’s legal authority to implement. 

14 The Contractor shall comply with the limitations or requirements imposed by 

15 environmental documentation applicable to the Contractor and within its legal authority 

16 to implement regarding specific activities, including conversion of Irrigation Water to 

17 M&I Water. Nothing herein shall be construed to prevent the Contractor from 

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

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

20 RATE AND METHOD OF PAYMENT FOR WATER

21 7. (a) The Contractor shall make payments to the United States as provided in 

22 this Article for all Project Water shown in Exhibit A of this contract at Rates and Charges 

23 established in accordance with: (i) the Secretary’s then-current ratesetting policies for the 
12

1 Project; and (ii) applicable Reclamation law and associated rules and regulations, or 

2 policies: Provided, That if the Contractor desires to use Project Water for other than 

3 agricultural use the Rates and Charges set forth above will be adjusted by the Contracting 

4 Officer to the applicable Rates and Charges for such use. The Rates and Charges 

5 applicable to the Contractor upon execution of this Contract are set forth in Exhibit “D”, 

6 as may be revised annually. The Secretary’s ratesetting policies for the Project shall be 

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

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

9 Charges as follows:

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

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

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

13 basis for such estimate. The Contractor shall be allowed not less than two (2) months to 

14 review and comment on such estimates. On or before September 15 of each Year, the 

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

16 during the period October 1 of the current Year, through September 30, of the following 

17 Year, and such notification shall revise Exhibit “D.”

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

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

20 Year and the computations and cost allocations upon which those Rates are based. The 

21 Contractor shall be allowed not less than two (2) months to review and comment on such 

22 computations and cost allocations. By December 31 of each Year, the Contracting 
13

1 Officer shall provide the Contractor with the final Rates to be in effect for the upcoming 

2 Year, and such notification shall revise Exhibit “D”.

3 (c) The Contractor shall pay the United States for Project Water in the 

4 following manner:

5 (1) With respect to Rates, prior to May 1 of each Year, the Contractor 

6 shall pay the United States one-half (1/2) the total amount payable pursuant to 

7 subdivision (a) of this Article and the remainder shall be paid prior to July 1 or such later 

8 date or dates as may be specified by the United States in a written notice to the 

9 Contractor: Provided, however, That if at any time during the Year the amount of Project 

10 Water diverted by the Contractor shall equal the amount for which payment has been 

11 made, the Contractor shall pay for the remaining amount of such water as shown in 

12 Exhibit A in advance of any further diversion of Project Water.

13 (2) With respect to Charges, the Contractor shall also make a payment to 

14 the United States, in addition to the Rate(s) in subdivision (c)(1) of this Article, at the 

15 Charges then in effect, before the end of the month following the month of delivery or 

16 transfer. The payments shall be consistent with the quantities of Project Water delivered 

17 or transferred. Adjustment for overpayment or underpayment of Charges shall be made 

18 through the adjustment of payments due to the United States for Charges for the next 

19 month. Any amount to be paid for past due payment of Charges shall be computed 

20 pursuant to Article 12 of this Contract.

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

22 Contract may be paid from any revenues available to the Contractor.
14

1 (d1) (Contractor Specific)All revenues received by the United States from 

2 the Contractor relating to the delivery of Project Water or the delivery of non-Project 

3 water through Project facilities shall be allocated and applied in accordance with Federal 

4 Reclamation law and the associated rules or regulations, and the then current Project 

5 ratesetting policies for Irrigation Water.

6 (e) The Contracting Officer shall keep its accounts pertaining to the 

7 administration of the financial terms and conditions of its long-term water service and 

8 settlement contracts, in accordance with applicable Federal standards, so as to reflect the 

9 application of Project costs and revenues. The Contracting Officer shall, each Year upon 

10 request of the Contractor, provide to the Contractor a detailed accounting of all Project 

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

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

13 the Contractor shall enter into good faith negotiations to resolve any discrepancies or 

14 disputes relating to accountings, reports, or information.

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

16 Contract is their mutual goal. Recognizing that experience has demonstrated that 

17 mechanisms, policies, and procedures used for establishing Rates and Charges and/or for 

18 making and allocating payments, other than those set forth in this Article may be in the 

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

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

21 while this Contract is in effect without amendment of this Contract. 

22 (g) For the term of this contract, Rates under the respective ratesetting 

23 policies for the Project will be established to recover only reimbursable operation and 
15

1 maintenance (including any deficits) and capital costs of the Project, as those terms are

2 used in the then-current Project ratesetting policies, and interest, where appropriate, 

3 except in instances where a minimum Rate is applicable in accordance with the relevant 

4 Project ratesetting policy. Proposed changes of significance in practices which

5 implement the ratesetting policies for the Project will not be implemented until the 

6 Contracting Officer has provided the Contractor an opportunity to discuss the nature, 

7 need, and impact of the proposed change.

8 (h) Except as provided in subsections 3405(a)(1)(B) and 3405(f) of the 

9 CVPIA, the Rates for Project Water transferred, exchanged, or otherwise disposed of , by 

10 the Contractor shall be the Contractor’s Rates adjusted upward or downward to reflect the 

11 changed costs of delivery (if any) of the transferred, exchanged, or otherwise disposed of 

12 Project Water to the transferee’s point of delivery in accordance with the then-current 

13 ratesetting policies for the Project. If the Contractor is receiving lower Rates and 

14 Charges because of inability to pay and is transferring, exchanging, or otherwise 

15 disposing of Project Water to another entity whose Rates and Charges are not adjusted 

16 due to inability to pay, the Rates and Charges for transferred, exchanged, or otherwise 

17 disposed of Project Water shall be the Contractor’s Rates and Charges unadjusted for 

18 ability to pay.

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

20 Officer is authorized to adjust determinations of ability to pay every five (5) years.

21 (j) Each payment to be made pursuant to subdivisions (a) and (b) of this 

22 Article shall be made at the office of the Bureau of Reclamation, Mid-Pacific Region, 

23 File No. 11546, P.O Box 6000, San Francisco, California, 94160-1546, or at such other 
16

1 place as the United States may designate in a written notice to the said Contractor. 

2 Payments shall be made by cash transaction, wire, or any other mechanism as may be 

3 agreed to in writing by the Contractor and the Contracting Officer. In event there should 

4 be a default in the payment of the amount due, the delinquent payment provisions of 

5 Article 12 shall apply. The Contractor shall not be relieved of the whole or any part of its 

6 said obligation by, on account of, or notwithstanding, as the case may be:

7 (1) Its failure, refusal, or neglect to divert the quantity of Project Water as 

8 hereinabove provided;

9 (2) The default in payment to it by any water user of assessments, tolls, or 

10 other charges levied by or owing to said Contractor;

11 (3) Any judicial determination that any assessment, toll, or other charge 

12 referred to in subsection 8(c)(2) of this Contract is irregular, void, or ineffectual; or

13 (4) Any injunctive process enjoining or restraining the Contractor from 

14 making or collecting any such assessment, toll, or other charge referred to in subsection 

15 8(c)(2) of this Contract.

16 AGREEMENT ON WATER QUANTITIES

17 8. (a) During the term of this contract and any renewals thereof:

18 (1) It shall constitute full agreement as between the United States and the 

19 Contractor as to the quantities of water and the allocation thereof between Base Supply 

20 and Project Water which may be diverted by the Contractor from the Sacramento River 

21 for beneficial use on the land shown on Exhibit B which said diversion, use, and 

22 allocation shall not be disturbed so long as the Contractor shall fulfill all of its obligations 

23 hereunder;
17

1 (2) The Contractor shall not claim any right against the United States in 

2 conflict with the provisions hereof.

3 (b) Nothing herein contained is intended to or does limit rights of the 

4 Contractor against others than the United States or of the United States against any 

5 person other than the Contractor: Provided, however, That in the event the Contractor, 

6 the United States, or any other person shall become a party to a general adjudication of 

7 rights to the use of water of the Sacramento River system, this contract shall not 

8 jeopardize the rights or position of either party hereto or of any other person and the 

9 rights of all such persons in respect to the use of such water shall be determined in such 

10 proceedings the same as if this contract had not been entered into, and if final judgment 

11 in any such general adjudication shall determine that the rights of the parties hereto are 

12 different from the rights as assumed herein, the United States shall submit it to the 

13 Contractor an amendment to give effect to such judgment and the contract shall be 

14 deemed to have been amended accordingly unless within sixty (60) days after submission 

15 of such amendment to the Contractor, the Contractor elects to terminate the contract or 

16 within the same period of time the parties agree upon mutually satisfactory amendments 

17 to give effect to such judgment: Provided, further, That if, during the term of this 

18 Contract, the Contractor’s or the United States’ water rights are adjusted or affected, or 

19 the responsibility to meet flow, water quality and/or environmental requirements under 

20 those water rights is modified (e.g., changes to the Delta Water Quality Control Plan and 

21 associated water right actions), by or through any final administrative or judicial 

22 proceeding, the Contractor and the United States shall negotiate appropriate adjustments 

23 to this contract. 
18

1 (c) In the event this contract terminates, the rights of the parties to thereafter 

2 divert and use water shall exist as if this contract had not been entered into; and the fact 

3 that as a compromise settlement of a controversy as to the respective rights of the parties 

4 to divert and use water and the yield of such rights during the term hereof, this contract 

5 places a limit on the Contract Total to be diverted annually by the Contractor during the 

6 contract term and segregates it into Base Supply and Project Water shall not jeopardize 

7 the rights or position of either party with respect to its water rights or the yield thereof at 

8 all times after the contract terminates. It is further agreed that the Contractor at all times 

9 will first use water to the use of which it is entitled by virtue of its own water rights, and 

10 neither the provisions of this contract, action taken thereunder, nor payments made 

11 thereunder to the United States by the Contractor shall be construed as an admission that 

12 any part of the water used by the Contractor during the term of this contract was in fact 

13 water to which it would not have been entitled under water rights owned by it nor shall 

14 receipt of payments thereunder by the United States from the Contractor be construed as 

15 an admission that any part of the water used by the Contractor during the term of this 

16 contract was in fact water to which it would have been entitled under water rights owned 

17 by it.

18 MEASUREMENT OF WATER

19 9. (a) All water diverted by the Contractor from Sacramento River will be 

20 diverted at the existing point or points of diversion shown on Exhibit A or at such other 

21 points as may be mutually agreed upon in writing by the Contracting Officer and the 

22 Contractor. 
19

1 (b) All water diverted from the Sacramento River pursuant to this contract 

2 will be measured or caused to be measured by the United States at each point of diversion 

3 with existing equipment or equipment to be installed, operated, and maintained by the 

4 United States, and/or others, under contract with and at the option of the United States. 

5 The equipment and methods used to make such measurement shall be in accordance with 

6 sound engineering practices. Upon request of the Contractor, the accuracy of such 

7 measurements will be investigated by the Contracting Officer and any errors appearing 

8 therein will be corrected.

9 (c) The right of ingress to and egress from all points of diversion is hereby 

10 granted to all authorized employees of the United States. The Contractor also hereby 

11 grants to the United States the right to install, operate, maintain and replace such 

12 equipment on diversion or carriage facilities at each point of diversion as the Contracting 

13 Officer deems necessary.

14 (d) The Contractor shall not modify, alter, remove, or replace diversion 

15 facilities or do any other act which would alter the effectiveness or accuracy of the 

16 measuring equipment installed by the United States or its representatives unless and until 

17 the Contracting Officer has been notified with due diligence and has been given an 

18 opportunity to modify such measuring equipment in such manner as may be necessary or 

19 appropriate. In the event of an emergency the Contractor shall notify the United States 

20 within a reasonable time thereafter as to the existence of the emergency and the nature 

21 and extent of such modification, alteration, removal, or replacement of diversion 

22 facilities.
20

1 (e) The Contractor shall pay the United States for the costs to repair, relocate, 

2 or replace measurement equipment when the Contractor modifies, alters, removes, or 

3 replaces diversion or carriage facilities. 

4 (f) (Contractor Specific) By __________________[DATE] ________, the 

5 Contractor shall ensure that, unless the Contractor establishes an alternative measurement 

6 program satisfactory to the Contracting Officer, all surface water delivered for irrigation 

7 purposes on the lands delineated on Exhibit B is measured at each agricultural turnout. 

8 The water measuring devices or water measuring methods of comparable effectiveness 

9 must be acceptable to the Contracting Officer. The Contractor shall be responsible for 

10 installing, operating, and maintaining and repairing all such measuring devices and 

11 implementing all such water measuring methods at no cost to the United States. The 

12 Contractor shall inform the Contracting Officer in writing by April 30 of each Year of the 

13 monthly volume of surface water delivered to the lands delineated on Exhibit B during 

14 the previous Year. This information will be used by Reclamation to satisfy the water 

15 measurement requirements of the Contractor’s water conservation plan, as set forth in 

16 Article 28 of this Contract.

17 (g) All new surface water delivery systems installed within the lands 

18 delineated on Exhibit B after the effective date of this Contract shall also comply with the 

19 measurement provisions described in this Article.

20 RULES AND REGULATIONS

21 10. The parties agree that the delivery of Project Water for irrigation use or use of 

22 Federal facilities pursuant to this Contract is subject to Federal Reclamation law, 

23 including but not limited to, the Reclamation Reform Act of 1982 (43 U.S.C.390aa et 
21

1 seq.), as amended and supplemented, and the rules and regulations promulgated by the 

2 Secretary of the Interior under Federal Reclamation law. 

3 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

4

5 11. (a) The obligation of the Contractor to pay the United States as provided in 

6 this Contract is a general obligation of the Contractor notwithstanding the manner in 

7 which the obligation may be distributed among the Contractor's water users and 

8 notwithstanding the default of individual water users in their obligations to the 

9 Contractor. 

10

11 (b) The payment of charges becoming due hereunder is a condition precedent 

12 to receiving benefits under this Contract. The United States shall not make water 

13 available to the Contractor through Project facilities during any period in which the 

14 Contractor may be in arrears in the advance payment of water rates due the United States. 

15 The Contractor shall not furnish water made available pursuant to this Contract for lands 

16 or parties which are in arrears in the advance payment of water rates levied or established 

17 by the Contractor. 

18

19 (c) With respect to subdivision (b) of this Article, the Contractor shall have 

20 no obligation to require advance payment for water rates which it levies.

21

22 CHARGES FOR DELINQUENT PAYMENTS

23

24 12. (a) The Contractor shall be subject to interest, administrative and penalty 

25 charges on delinquent installments or payments. When a payment is not received by the 

26 due date, the Contractor shall pay an interest charge for each day the payment is 

27 delinquent beyond the due date. When a payment becomes sixty (60) days delinquent, 

28 the Contractor shall pay an administrative charge to cover additional costs of billing and 

29 processing the delinquent payment. When a payment is delinquent ninety (90) days or 

30 more, the Contractor shall pay an additional penalty charge of six (6%) percent per year 

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

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

33

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

35 in the Federal Register by the Department of the Treasury for application to overdue 

36 payments, or the interest rate of one-half of one (0.5%) percent per month prescribed by 

37 Section 6 of the Reclamation Project Act of 1939 (Public Law 76-260). The interest 

38 charge rate shall be determined as of the due date and remain fixed for the duration of the 

39 delinquent period. 

40

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

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

43 to the accrued interest, and finally to the overdue payment.

44
22

1 QUALITY OF WATER

2 13. The operation and maintenance of Project facilities shall be performed in 

3 such manner as is practicable to maintain the quality of raw water made available through 

4 such facilities at the highest level reasonably attainable as determined by the Contracting 

5 Officer. The United States does not warrant the quality of water and is under no 

6 obligation to construct or furnish water treatment facilities to maintain or better the 

7 quality of water.

8 WATER AND AIR POLLUTION CONTROL

9 14. The Contractor, in carrying out this Contract, shall comply with all applicable 

10 water and air pollution laws and regulations of the United States and the State of 

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

12 State, or local authorities.

13 EQUAL OPPORTUNITY

14

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

16

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

18 for employment because of race, color, religion, sex, or national origin. The Contractor 

19 will take affirmative action to ensure that applicants are employed, and that employees 

20 are treated during employment, without regard to their race, color, religion, sex, or 

21 national origin. Such action shall include, but not be limited to, the following: 

22 Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; 

23 layoff or termination, rates of payment or other forms of compensation; and selection for 

24 training, including apprenticeship. The Contractor agrees to post in conspicuous places, 

25 available to employees and applicants for employment, notices to be provided by the 

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

27

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

29 placed by or on behalf of the Contractor, state that all qualified applicants will receive 

30 consideration for employment without discrimination because of race, color, religion, 

31 sex, or national origin.

32

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

34 with which it has a collective bargaining agreement or other contract or understanding, a 
23

1 notice, to be provided by the Contracting Officer, advising the said labor union or 

2 workers' representative of the Contractor's commitments under Section 202 of Executive 

3 Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous 

4 places available to employees and applicants for employment.

5

6 (d) The Contractor will comply with all provisions of Executive Order No. 

7 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant 

8 orders of the Secretary of Labor. 

9

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

11 amended Executive Order and by the rules, regulations, and orders of the Secretary of 

12 Labor, or pursuant thereto, and will permit access to its books, records, and accounts by 

13 the Contracting Officer and the Secretary of Labor for purposes of investigation to 

14 ascertain compliance with such rules, regulations, and orders.

15

16 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

17 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract 

18 may be canceled, terminated, or suspended, in whole or in part, and the Contractor may 

19 be declared ineligible for further Government contracts in accordance with procedures 

20 authorized in said amended Executive Order, and such other sanctions may be imposed 

21 and remedies invoked as provided in said Executive Order, or by rule, regulation, or 

22 order of the Secretary of Labor, or as otherwise provided by law.

23

24 (g) The Contractor will include the provisions of paragraphs (a) through (g) 

25 in every subcontract or purchase order unless exempted by the rules, regulations, or 

26 orders of the Secretary of Labor issued pursuant to Section 204 of said amended 

27 Executive Order, so that such provisions will be binding upon each subcontractor or 

28 vendor. The Contractor will take such action with respect to any subcontract or purchase 

29 order as may be directed by the Secretary of Labor as a means of enforcing such 

30 provisions, including sanctions for noncompliance: Provided, however, That in the event 

31 the Contractor becomes involved in, or is threatened with, litigation with a subcontractor 

32 or vendor as a result of such direction, the Contractor may request the United States to 

33 enter into such litigation to protect the interests of the United States.

34

35 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

36 (For Districts Only)

37

38 16. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 

39 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as 

40 amended), the Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other 

41 applicable civil rights laws, as well as with their respective implementing regulations and 

42 guidelines imposed by the U.S. Department of the Interior and/or Bureau of Reclamation.

43

44 (b) These statutes require that no person in the United States shall, on the 

45 grounds of race, color, national origin, handicap, or age, be excluded from participation 

46 in, be denied the benefits of, or be otherwise subjected to discrimination under any 
24

1 program or activity receiving financial assistance from the Bureau of Reclamation. By 

2 executing this Contract, the Contractor agrees to immediately take any measures 

3 necessary to implement this obligation, including permitting officials of the United States 

4 to inspect premises, programs, and documents.

5

6 (c) The Contractor makes this agreement in consideration of and for the 

7 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or 

8 other Federal financial assistance extended after the date hereof to the Contractor by the 

9 Bureau of Reclamation, including installment payments after such date on account of 

10 arrangements for Federal financial assistance which were approved before such date. 

11 The Contractor recognizes and agrees that such Federal assistance will be extended in 

12 reliance on the representations and agreements made in this Article, and that the United 

13 States reserves the right to seek judicial enforcement thereof.

14

15 MINGLING OF CONTRACTOR’S PROJECT AND NON-PROJECT WATER

16 17. (a) Project Water must of necessity be transported by the Contractor to its 

17 water users by means of the same works and channels used for the transport of its non18 Project Water. Notwithstanding such mingling of water, the provisions of Article 11 

19 hereof shall be applicable only to Project Water, and such mingling of water shall not in 

20 any manner subject to the provisions of Article 11 hereof the Contractor’s non-Project 

21 water.

22 (b) If required in accordance with subdivision (c) of this Article, the 

23 Contractor shall install and maintain such measuring equipment and distribution facilities 

24 and maintain such records as may be necessary to determine the amounts of water 

25 delivered to Excess Lands served by the Contractor. The Contractor shall not within any 

26 month deliver to Ineligible Lands water in excess of the non-Project Water for that 

27 month. The Contracting Officer or authorized representative shall have the right at all 

28 reasonable times to inspect such records and measuring equipment.

29 (c) The Contractor will not be considered in violation of the requirement that 

30 Project Water be delivered only to Eligible Lands during any month of the irrigation 
25

1 season that the water requirement for beneficial use on Eligible Lands for that month is 

2 equal to or in excess of the Project Water for that month as shown on Exhibit A or any 

3 revision thereof pursuant to subdivision (b) of Article 3. The water requirement for 

4 beneficial use on Eligible Lands will be determined by multiplying:

5 (1) the number of irrigable acres of the particular types of crops grown in 

6 that year on the acreage designated as eligible by

7 (2) the Unit Duties as set forth in Exhibit C attached hereto and made a 

8 part hereof, or by such other Unit Duties mutually agreed upon by the Contractor and the 

9 Contracting Officer. In order to make the computation of the water requirement for 

10 Eligible Lands, on April 1 of each Year and concurrently with its order for water for the 

11 irrigation season, the Contractor shall designate the acreage of and type of crops to be 

12 grown on its Eligible Lands that irrigation season. During any month the water 

13 requirement as above determined for crops growing on Eligible Lands during such month 

14 is equal to or in excess of the Project Water for that month as provided herein the 

15 Contractor shall not be required to measure the water delivered to Excess Lands. Any 

16 month the said water requirement is less than the amount of Project Water as provided 

17 herein, the Contractor will be required to measure water delivered to excess land in 

18 accordance with subdivision (b) hereof.

19 BOOKS, RECORDS, AND REPORTS

20 18. The Contractor shall establish and maintain accounts and other books and 

21 records pertaining to administration of the terms and conditions of this Contract, 

22 including: the Contractor's financial transactions, water supply data, and Project land and 

23 right-of-way agreements; the water users' land-use (crop census), land ownership, land24 leasing and water use data; and other matters that the Contracting Officer may require. 

25 Reports thereon shall be furnished to the Contracting Officer in such form and on such 

26 date or dates as the Contracting Officer may require. Subject to applicable Federal laws 

27 and regulations, each party to this Contract shall have the right during office hours to 
26

1 examine and make copies of each other’s books and official records relating to matters 

2 covered by this Contract. 

3

4 CHANGE OF PLACE OF USE OR ORGANIZATION

5 19. (a) Unless the written consent of the United States is first obtained no change 

6 shall be made in the place of water use shown on Exhibit B. 

7 (b) While this contract is in effect, no change shall be made in the area of the 

8 Contractor as shown on its Exhibit B, by inclusion or exclusion of lands, by dissolution, 

9 consolidation, or merger or otherwise, except upon the Contracting Officer’s written 

10 assent thereto. 

11 (c) In the event lands are excluded from the area of the Contractor, as 

12 provided herein, the quantity of Project Water to be diverted may be decreased pursuant 

13 to a supplemental agreement to be executed in respect thereto.

14 CONSOLIDATION OF CONTRACTING ENTITIES

15

16 20. Consolidation of Contractors may be approved by the Contracting Officer 

17 provided: (i) the Contracting Officer approves the form and organization of the resulting 

18 entity and the utilization by it of the Contract Total; and (ii) the obligations of the 

19 Contractor are assumed by such entity. 

20 No such consolidation shall be valid unless and until approved by the Contracting 

21 Officer.

22 NOTICES

23 21. Any notice, demand, or request authorized or required by this Contract shall 

24 be deemed to have been given, on behalf of the Contractor, when mailed, postage 

25 prepaid, or delivered to the Area Manager, Northern California Area Office, Bureau of 

26 Reclamation, 16349 Shasta Dam Blvd., Shasta Lake, California, 96019, and on behalf of 

27 the United States, when mailed, postage prepaid, or delivered to the Board of Directors 

28 /City Council of the ________________________. The designation of the addressee or 
27

1 the address may be changed by notice given in the same manner as provided in this 

2 Article for other notices.

3

4 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

5

6 22. (a) The provisions of this Contract shall apply to and bind the successors 

7 and assigns of the parties hereto, but no assignment or transfer of this Contract or any 

8 right or interest therein shall be valid until approved in writing by the Contracting 

9 Officer.

10

11 (b) The assignment of any right or interest in this Contract by either party 

12 shall not interfere with the rights or obligations of the other party to this Contract absent 

13 the written concurrence of said other party.

14

15 (c) The Contracting Officer shall not unreasonably condition or withhold his 

16 approval of any proposed assignment.

17

18 OFFICIALS NOT TO BENEFIT

19

20 23. (a) No Member of or Delegate to Congress, Resident Commissioner, or 

21 official of the Contractor shall benefit from this Contract other than as a water user or 

22 landowner in the same manner as other water users or landowners.

23

24 (b) No officer or member of the governing board of the Contractor shall 

25 receive any benefit that may arise by reason of this contract other than as a landowner 

26 within the Contractor’s service area and in the same manner as other landowners within 

27 the said service area.

28

29 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS

30

31 24. The expenditure or advance of any money or the performance of any 

32 obligation of the United States under this Contract shall be contingent upon appropriation 

33 or allotment of funds. Absence of appropriation or allotment of funds shall not relieve 

34 the Contractor from any obligations under this Contract. No liability shall accrue to the 

35 United States in case funds are not appropriated or allotted.

36

37 CONFIRMATION OF CONTRACT

38 25. The Contractor, after the execution of this Contract, shall promptly seek to 

39 secure a decree of a court of competent jurisdiction of the State of California, if 

40 appropriate, confirming the execution of this contract. The Contractor shall furnish the 

41 United States a certified copy of the final decree, the validation proceedings, and all 

42 pertinent supporting records of the court approving and confirming this Contract, and 

43 decreeing and adjudging it to be lawful, valid, and binding on the Contractor. This 

44 Contract shall not be binding on the United States until such final decree has been 

45 secured.
28

1 UNAVOIDABLE GROUNDWATER PERCOLATION

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

3 Project Water to Excess Lands or Ineligible Lands if such lands are irrigated with 

4 groundwater that reaches the underground strata as an unavoidable result of the delivery 

5 of Project Water by the Contractor to Eligible Lands.

6 PRIVACY ACT COMPLIANCE

7

8 27. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C.

9 552a) (the Act) and the Department of the Interior rules and regulations under the Act (43 

10 CFR 2.45 et seq.) in maintaining Landholder acreage certification and reporting records, 

11 required to be submitted to the Contractor for compliance with Sections 206 and 228 of 

12 the Reclamation Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18.

13

14 (b) With respect to the application and administration of the criminal penalty 

15 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees 

16 responsible for maintaining the certification and reporting records referenced in (a) above 

17 are considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

18

19 (c) The Contracting Officer or a designated representative shall provide the 

20 Contractor with current copies of the Interior Department Privacy Act regulations and the 

21 Bureau of Reclamation Federal Register Privacy Act System of Records Notice (Acreage 

22 Limitation--Interior, Reclamation-31) which govern the maintenance, safeguarding, and 

23 disclosure of information contained in the Landholder's certification and reporting 

24 records. 

25

26 (d) The Contracting Officer shall designate a full-time employee of the 

27 Bureau of Reclamation to be the System Manager who shall be responsible for making 

28 decisions on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 

29 43 CFR 2.72. The Contractor is authorized to grant requests by individuals for access to 

30 their own records. 

31

32 (e) The Contractor shall forward promptly to the System Manager each 

33 proposed denial of access under 43 CFR 2.64; and each request for amendment of records 

34 filed under 43 CFR 2.71; notify the requester accordingly of such referral; and provide 

35 the System Manager with information and records necessary to prepare an appropriate 

36 response to the requester. These requirements do not apply to individuals seeking access 

37 to their own certification and reporting forms filed with the Contractor pursuant to 43 

38 CFR 426.18, unless the requester elects to cite the Privacy Act as a basis for the request.

39
29

1 WATER CONSERVATION

2 28. (a) Prior to the diversion of Project Water, the Contractor shall be 

3 implementing an effective water conservation and efficiency program based on the 

4 Contractor's water conservation plan that has been determined by the Contracting Officer 

5 to meet the conservation and efficiency criteria for evaluating water conservation plans 

6 established under Federal law. The water conservation and efficiency program shall 

7 contain definite water conservation objectives, appropriate economically feasible water 

8 conservation measures, and time schedules for meeting those objectives. Continued 

9 diversion of Project Water pursuant to this Contract shall be contingent upon the 

10 Contractor’s continued implementation of such water conservation program. In the event 

11 the Contractor's water conservation plan or any revised water conservation plan 

12 completed pursuant to subdivision (c) of Article 28 of this Contract have not yet been 

13 determined by the Contracting Officer to meet such criteria, due to circumstances which 

14 the Contracting Officer determines are beyond the control of the Contractor, Project 

15 Water deliveries shall be made under this Contract so long as the Contractor diligently 

16 works with the Contracting Officer to obtain such determination at the earliest practicable 

17 date, and thereafter the Contractor immediately begins implementing its water 

18 conservation and efficiency program in accordance with the time schedules therein.

19 (b) The Contractor shall submit to the Contracting Officer a report on the 

20 status of its implementation of the water conservation plan on the reporting dates 

21 specified in the then existing conservation and efficiency criteria established under 

22 Federal law.
30

1 (c) At five (5)-year intervals, the Contractor shall revise its water 

2 conservation plan to reflect the then current conservation and efficiency criteria for 

3 evaluating water conservation plans established under Federal law and submit such 

4 revised water management plan to the Contracting Officer for review and evaluation. 

5 The Contracting Officer will then determine if the water conservation plan meets 

6 Reclamation’s then current conservation and efficiency criteria for evaluating water 

7 conservation plans established under Federal law. 

8 (d) If the Contractor is engaged in direct ground-water recharge, such activity 

9 shall be described in the Contractor’s water conservation plan.

10 OPINIONS AND DETERMINATIONS

11

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

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

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

15 opinions or determinations. Both parties, notwithstanding any other provisions of this 

16 Contract, expressly reserve the right to seek relief from and appropriate adjustment for 

17 any such arbitrary, capricious, or unreasonable opinion or determination. Each opinion 

18 or determination by either party shall be provided in a timely manner. Nothing in 

19 subdivision (a) of Article 29 of this Contract is intended to or shall affect or alter the 

20 standard of judicial review applicable under federal law to any opinion or determination 

21 implementing a specific provision of federal law embodied in statute or regulation. 

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

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

24 Contract, the laws of the United States and of the State of California, and the rules and 
31

1 regulations promulgated by the Secretary of the Interior. Such determinations shall be 

2 made in consultation with the Contractor to the extent reasonably practicable.

3 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

4 30. (a) In addition to all other payments to be made by the Contractor pursuant to 

5 this Contract, the Contractor shall pay to the United States, within sixty (60) days after 

6 receipt of a bill and detailed statement submitted by the Contracting Officer to the 

7 Contractor for such specific items of direct cost incurred by the United States for work 

8 requested by the Contractor associated with this Contract plus indirect costs in 

9 accordance with applicable Bureau of Reclamation policies and procedures. All such 

10 amounts referred to in this Article shall not exceed the amount agreed to in writing in 

11 advance by the Contractor. This Article shall not apply to costs for routine contract 

12 administration.

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

14 Contractor pursuant to Article 30 of this Contract shall be adjusted to reflect the actual 

15 costs when the work has been completed. If the advances exceed the actual costs 

16 incurred, the difference will be refunded to the Contractor. If the actual costs exceed the 

17 Contractor's advances, the Contractor will be billed for the additional costs pursuant to 

18 Article 30 of this Contract.

19 WAIVER OF DEFAULT

20 31. The waiver by either party to this contract as to any default shall not be 

21 construed as a waiver of any other default or as authority of the other party to continue 

22 such default or to make, do, or perform, or not to make, do, or perform, as the case may 

23 be, any act or thing which would constitute a default.
32

1 IN WITNESS WHEREOF, the parties hereto have executed this contract as of 

2 the day and year first hereinabove written.

3

4 THE UNITED STATES OF AMERICA

5

6

7

8 By: __________________________

9 Regional Director, Mid-Pacific Region 

10 Bureau of Reclamation

11

12

13 (SEAL)

14

15

16 (Contractor)

17

18

19 By:______________________________

20 President

21

22

23 ATTEST:

24

25

26 ________________________________

27 Secretary

28

29

30 (I:\sac river renewal\Sac R Long Form Draft.doc)

31
R.O. Draft 05/15-2002

Contract No.

Standard Irrigation District Form

SRSC Draft 05/22/02

SRSC Draft 05/31/02

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

Central Valley Project, California

WATER RIGHTS SETTLEMENT CONTRACT BETWEEN THE UNITED STATES 

AND

___________________________________________________

DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES PROVIDING 

FOR PROJECT WATER SERVICE AND AGREEMENT ON DIVERSION OF 

WATER

Table of Contents

Article No. Title Page No.

Preamble 1

Explanatory Recitals 2-3

1 Definitions 3-6

2 Term of Contract 6-7

3 Water to be Furnished to Contractor 7-9 10

4 Return Flow 9 10-11

5 Constraints on the Availability of Water 10-11-12

6 Integrated Water Management and Partnerships 12-13

6 7 Use of Water Furnished to Contractor 11 13

7 8 Rate and Method of Payment for Water 11-16 14-18

8 9 Agreement on Water Quantities 16-18 19-21

9 10 Measurement of Water 18-20 21-23

10 11 Rules and Regulations 20-21 23

11 12 General Obligation – Benefits Conditioned 

Upon Payment 21 23-24

12 13 Charges For Delinquent Payments 21 24

13 14 Quality of Water 22 24-25

14 15 Water and Air Pollution Control 22 25

15 16 Equal Opportunity 22-23 25-26

16 17 Compliance With Civil Rights Laws 

And Regulations 23-24 26-27
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Table of Contents – continued

Article No. Title Page No.

17 18 Mingling of Contractor’s Project and 

Non-Project Water 24-25 27-28

18 19 Books, Records, and Reports 25-26 28

19 20 Change Of Place Of Use Or Organization 26 28-29

20 21 Consolidation Of Contracting Entities 26 29

21 22 Notices 26-27 29

22 23 Assignment Limited – Successors and 

Assigns Obligated 27 29-30

23 24 Officials Not to Benefit 27 30

24 25 Contingent Upon Appropriation or

Allotment of Funds 27 30

25 26 Confirmation of Contract 27 30

26 27 Unavoidable Groundwater Percolation 28 30

27 28 Privacy Act Compliance 28 31

28 29 Water Conservation 29-30 31-33

29 30 Opinions And Determinations 30-31 33

30 31 Contractor to Pay Certain Miscellaneous Costs 31 34

31 32 Waiver of Default 31 34

Signatures 32 35

Exhibit A Schedule of Monthly Diversions of Water

Exhibit B Map of Contractor’s Ownership

Exhibit C Unit Duties

Exhibit D Rates and Charges
1 R.O. Draft 05/15-2002

2 Contract No.

3 Standard Irrigation District Form

4 SRSC Draft 05/02/02

5 SRSC Draft 05/22/02

6 SRSC Draft 05/31/02

7

8

9 UNITED STATES

10 DEPARTMENT OF THE INTERIOR

11 BUREAU OF RECLAMATION

12 Central Valley Project, California

13

14 WATER RIGHTS SETTLEMENT CONTRACT BETWEEN THE UNITED STATES 

15 AND

16 _______________________________________________

17 DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES PROVIDING 

18 FOR PROJECT WATER SERVICE AND AGREEMENT ON DIVERSION OF 

19 WATER

20

21 THIS CONTRACT, hereinafter referred to as “Settlement Contract,” is 

22 entered into by THE UNITED STATES OF AMERICA, hereinafter referred to as the 

23 United States, made this _____ day of ____________________, 2002, in pursuance

24 pursuant to the applicable authority granted to it generally of in the Act of June 17, 1902 

25 (32 Stat. 388), and acts amendatory or supplementary thereto, including, but not limited 

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

27 1939 (53 Stat. 1187), as amended and supplemented, including but not limited to Section 

28 14 thereto, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 

29 Stat. 1262), October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV of the Act 

30 of October 30, 1992 (106 Stat. 4706), all collectively hereinafter referred to as Federal 

31 Reclamation law, between THE UNITED STATES OF AMERICA, hereinafter referred 

32 to as the United States, and _______________________, hereinafter referred to as the

33 Contractor, a public agency of the State of California, duly organized, existing, and 
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2

1 acting pursuant to the laws thereof, with its principal place of business in California; 

2 (may change depending on contracting entity)

3 WITNESSETH, That that:

4 EXPLANATORY RECITALS

5 WHEREAS, the United States has constructed and is operating the Central Valley 

6 Project, California, for diversion, storage, carriage, distribution and beneficial use, for 

7 flood control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, 

8 protection and restoration, generation and distribution of electric energy, salinity control, 

9 navigation and other beneficial uses, of waters of the Sacramento River, the American 

10 River, the Trinity River, and the San Joaquin River and their tributaries; and

11 WHEREAS, the Contractor asserts that it has rights to divert, is diverting, and 

12 will continue to divert for reasonable beneficial use, water from the natural flow of the 

13 Sacramento River and tributaries thereto, that would have been flowing therein if the 

14 Central Valley Project were not in existence; and

15 WHEREAS, the construction and operation of the integrated and coordinated 

16 Central Valley Project has changed and will further change the regimen of the 

17 Sacramento, American, San Joaquin, and Trinity Rivers and the Sacramento-San Joaquin 

18 Delta from unregulated flow to regulated flow; and

19 WHEREAS, the United States asserts that it has rights to divert, is diverting, and 

20 will continue to divert waters from said Rivers and said Delta in connection with the 

21 operation of said Central Valley Project, and

22 WHEREAS, the Contractor and the United States had a dispute over the nature, 

23 extent and relative priority of their respective water rights which threatened to result in 
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3

1 the initiation of an adjudication of the relevant stream systems and as a means to settle 

2 that dispute entered into Contract No. ______________, as amended, hereinafter referred 

3 to as the Existing Contract, which established terms for the delivery to the Contractor of 

4 Central Valley Project Water and the quantities of Base Supply the Contractor may has a 

5 right to divert from the Sacramento River from ____________ through 

6 ______________________; and

7 WHEREAS, the United States and the Contractor have a current dispute over the 

8 meaning and intent of Articles 9 and 5 of the Existing Contract, including litigation, but 

9 nonetheless without prejudicing the respective parties’ positions with respect to that 

10 litigation has requested desire to enter into the long-term renewal of the Existing 

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

12 the laws of the State of California, and the United States has determined that the 

13 Contractor has Parties have fulfilled all of its their respective obligations under the 

14 Existing Contract; and

15 WHEREAS, to assure the Contractor of the enjoyment and use of the regulated 

16 flow of the said Rivers and the Delta, and to provide for the economical operation of the 

17 Central Valley Project by, and the reimbursement to, the United States for expenditures 

18 made for said Project; 

19 NOW, THEREFORE, in consideration of the performance of the herein 

20 contained provisions, conditions, and covenants, it is agreed as follows:

21 DEFINITIONS

22 1. When used herein, unless otherwise expressed or incompatible with the intent 

23 hereof, the term:
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4

1 (a) “Base Supply” shall mean the quantity of water established in Articles 3 

2 and 5 which the United States agrees may be diverted by that the Contractor has a right to 

3 divert from the Sacramento River each month during the period April through October of 

4 each Year without payment to the United States for such quantities diverted;

5 (b) “Charges” shall mean the payments for Project Water required by Federal 

6 Reclamation law agreed to pursuant to this Settlement Contract in addition to the “Rates”

7 specified in this Contract. The nature and extent of Charges as well as categories of 

8 Charges is specified in the attached Exhibit “D” as determined annually by the 

9 Contracting Officer pursuant to this Contract;

10 (c) “Contract Total” shall mean the sum of the Base Supply and Project 

11 Water available for diversion by the Contractor for the period April 1 through October 

12 31;

13 (d) “Critical Year” shall mean any Year in which either of the following 

14 eventualities exists:

15 (1) The forecasted full natural inflow to Shasta Lake for the current Water 

16 Year, as such forecast is made by the United States on or before February 15 and 

17 reviewed as frequently thereafter as conditions and information warrant, is equal to or 

18 less than three million two hundred thousand (3,200,000) acre-feet; or

19 (2) The total accumulated actual deficiencies below four million 

20 (4,000,000) acre-feet in the immediately prior Water Year or series of successive prior 

21 Water Years each of which had inflows of less than four million (4,000,000) acre-feet, 

22 together with the forecasted deficiency for the current Water Year, exceed eight hundred 

23 thousand (800,000) acre-feet. For the purpose of determining a Critical Year the 
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5

1 computed inflow to Shasta Lake as it would have existed under present upstream 

2 development above Shasta Lake as of September 1, 1963 shall be used as the full natural 

3 inflow to Shasta Lake. In the event that major construction occurs above Shasta Lake 

4 after April 1, 2004, which materially alters the present regimen of the stream systems 

5 contributing to Shasta Lake, the computed inflow to Shasta Lake used to define a Critical 

6 Year will, be adjusted to eliminate the effect of such material alterations. After 

7 consultation with the State of California, the National Weather Service, and other 

8 recognized forecasting agencies, the Contracting Officer will select the forecast to be 

9 used and will make the details of it available to the Contractor. The same forecasts used 

10 by the United States for the operation of the Project shall be used to make the forecasts 

11 hereunder;

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

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

14 (f) “Eligible Lands” shall mean all lands to which Project Water may be 

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

16 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA;

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

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

19 Federal Reclamation law;

20 (h) “Full Cost Rate” shall mean that water rate described in Sections 

21 205(a)(3) or 202(3) of the RRA, whichever is applicable;

22 (i) “Ineligible Lands” shall mean all lands to which Project Water may not be 

23 delivered in accordance with Section 204 of the RRA;
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6

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

2 nonexempt land, as provided in 43 CFR 426.2;

3 (k) “Project” shall mean the Central Valley Project owned by the United 

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

5 (l) “Project Water” shall mean all water diverted or scheduled to be diverted 

6 each month during the period April through October of each Year by the Contractor from 

7 the Sacramento River which is in excess of the Base Supply. The United States 

8 recognizes the right of the Contractor to make arrangements for acquisition of water from 

9 projects of others than the United States for delivery through the Sacramento River and 

10 tributaries subject to written agreement between Contractor and the United States as to 

11 identification of such water which water when so identified shall not be deemed Project 

12 Water under this contract Settlement Contract;

13 (m) “Rates” shall mean the payments for Project Water determined annually 

14 by the Contracting Officer in accordance with the then current applicable water 

15 ratesetting policies for the Project, as described in subdivision (a) of Article 8 of this 

16 Settlement Contract;

17 (n) “Secretary” or “Contracting Officer” shall mean the Secretary of the 

18 Interior, a duly appointed successor, or an authorized representative acting pursuant to 

19 any authority of the Secretary and through any agency of the Department of the Interior;

20 (o) “Water Year” shall mean the period commencing with October 1 of one 

21 year and extending through September 30 of the next; and

22 (p) “Year” shall mean a calendar year.
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7

1 TERM OF SETTLEMENT CONTRACT

2 2. This contract Settlement Contract shall become effective April 1, 2004, and 

3 shall remain in effect until and including March 31, 2044: Provided, That that under 

4 terms and conditions mutually agreeable to the parties hereto, renewals may be made for 

5 successive periods not to exceed forty (40) years each. The terms and conditions of each 

6 renewal shall be agreed upon not later than one (1) year prior to the expiration of the then 

7 existing contract Settlement Contract: Provided further, That that, with respect to Project 

8 Water and the portions of this Settlement Contract pertaining thereto, upon written 

9 request by the Contractor of the Secretary made not later than one (1) year prior to the 

10 expiration of this contract Settlement Contract, whenever, account being taken of the 

11 amount then credited to the costs of construction of water supply works, the remaining 

12 amount of construction costs of water supply work which is properly assignable for 

13 ultimate return by the Contractor as established by the Secretary of the Interior pursuant 

14 to (3) of Section 1 of Public Law 643 (70 Stat. 483), probably can be repaid to the United 

15 States within the term of a contract under subsection 9(d), Section 9 of the1939 

16 Reclamation Project Act (53 Stat. 1187), the relevant portions of this contract Settlement 

17 Contract may be converted to a contract under said subsection 9(d) upon terms and 

18 conditions mutually agreeable to the United States and the Contractor. Notwithstanding 

19 any provision of this contract Settlement Contract, the Contractor reserves and shall have 

20 all rights and benefits under Public Law 643.

21 WATER TO BE FURNISHED TO CONTRACTOR

22 3. (a) Subject to the conditions, limitations, and provisions hereinafter expressed, 

23 the Contractor is hereby entitled and authorized to divert from the Sacramento River at 
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8

1 the locations shown in identified on Exhibit A and shown on Exhibit B, for beneficial use 

2 within the area delineated on Exhibit B, (both Exhibits are attached hereto and made a 

3 part hereof), the Contract Total designated in Exhibit A, or any revision thereof, in 

4 accordance with the monthly operating schedule required by Article 3(b) of this contract

5 Settlement Contract. The quantity of any surface water diverted under this Settlement 

6 Contract from the Sacramento River for use on any lands delineated on Exhibit B, by the 

7 owner of such lands or otherwise shall constitute a part of the Contract Total as shown on 

8 Exhibit A and shall be subject to all the provisions of this contract Settlement Contract

9 relating to such Contract Total as if such diversion were made by the Contractor.

10 [NOTE: contractor-specific language dealing with individual water rights may be 

11 needed.]

12 (b) The United States recognizes the need of the Contractor to vary from time 

13 to time its monthly diversions of water from the quantities shown in Exhibit A, or any

14 revision thereof. Before April 1 of each Year the Contractor shall submit a written 

15 schedule to the Contracting Officer indicating the Contract Total to be diverted by the 

16 Contractor during each month. The United States shall furnish water to the Contractor in 

17 accordance with the monthly operating schedule or any revisions thereof: Provided, That

18 that in no event shall the total quantity scheduled for diversion by the Contractor from the 

19 Sacramento River:

20 (1) During the period April through October exceed the aggregate of the 

21 Contract Total for those months shown in Exhibit A or any revision thereof;

22 (2) During the period July through September exceed the aggregate of the 

23 Contract Total for those months shown in Exhibit A or any revision thereof; and 
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1 Provided, further, That that with the prior written approval of the Contracting Officer, 

2 water to be diverted in April, May, or June may be diverted in September or October, or 

3 vice versa. The Contractor shall be charged a fee based upon the appropriate components 

4 of the water ratesetting policy for the Project for the Base Supply scheduled for diversion 

5 in April, May, or June that is diverted in September or October, or vice versa. 

6 (c) In the event conditions warrant, the Contracting Officer reserves the right 

7 to require the Contractor to submit, at least seventy-two (72) hours prior to the beginning 

8 of each weekly period, its estimate of daily diversion requirements for each such period 

9 from the Sacramento River: Provided, however, That that changes during any such 

10 period may be made upon the giving of seventy-two (72) hours’ notice thereof to the 

11 Contracting Officer.

12 (d) No sale, transfer, exchange, or other disposal of any water Project Water

13 or the right to the use thereof for use on land other than that shown on Exhibit B shall be 

14 made by the Contractor without: 

15 (1) First obtaining the written consent of the Contracting Officer; and

16 (2) Compliance with all applicable State and Federal laws, including but 

17 not limited to the National Environmental Policy Act and the Endangered Species Act, 

18 and applicable guidelines or regulations then in effect. 

19 (e) The sale, transfer, exchange, or other disposal of any Base Supply or the 

20 right to the use thereof for use on land other than that shown on Exhibit B shall be made 

21 by the Contractor in compliance with all applicable State laws.

22 (e f) Nothing herein contained shall prevent the Contractor from diverting 

23 water during the months of November through March for beneficial use on the land 
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1 shown on Exhibit B or elsewhere to the extent authorized under the laws of the State of 

2 California.

3 (f g) The United States assumes no responsibility for and neither it nor its 

4 officers, agents, or employees shall have any liability for or on account of:

5 (1) The quality of water to be diverted by the Contractor;

6 (2) The control, carriage, handling, use, disposal, or distribution of water 

7 diverted by the Contractor outside the facilities constructed and then being operated and 

8 maintained by or on behalf of the United States;

9 (3) Claims of damage of any nature whatsoever, including but not limited 

10 to, property loss or damage, personal injury, or death arising out of or connected with the 

11 control, carriage, handling, use, disposal, or distribution of said water outside of the 

12 hereinabove referred to facilities; and

13 (4) Any damage whether direct or indirect arising out of or in any manner 

14 caused by a shortage of water whether such shortage be on account of errors in operation,

15 drought, or unavoidable causes.

16 RETURN FLOW

17 4. The United States reserves the right to the use of all waste, seepage, and return 

18 flow water derived from water Project Water diverted by the Contractor hereunder and 

19 which escapes or is discharged beyond the boundaries of the lands shown on Exhibit B. 

20 Nothing herein shall be construed as an abandonment or a relinquishment by the United 

21 States of the right to the use of any such water Project Water; Provided, That that this 

22 shall not be construed as claiming for the United States any right to such water Project 

23 Water which is recovered by the Contractor pursuant to California law from within the 
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1 boundaries of the lands shown on Exhibit B, and which is being used pursuant to this 

2 contract Settlement Contract for surface irrigation or underground storage on the lands 

3 shown on Exhibit B by the Contractor, nor is it intended to apply to waste, seepage, and 

4 return flow water derived from Base Supply or other non-Project Water diverted or 

5 otherwise obtained by Contractor. (Colusa Basin Drain language may be required)

6 CONSTRAINTS ON THE AVAILABILITY OF WATER

7 5. (a) In any Water Year that (1) the forecasted full natural inflow to Shasta Lake 

8 for the current Water Year, as such forecast is made by the United States on or before 

9 February 15 and reviewed as frequently thereafter as conditions and information warrant, 

10 is equal to or less than three million eight hundred thousand (3,800,000) acre-feet; or 

11 (2) If the total accumulated actual deficiencies in the full natural inflow to Shasta Lake in 

12 the immediately prior Water Year or series of successive prior Water Years, each of 

13 which had inflows of less than four million (4,000,000) acre-feet, together with the 

14 forecasted deficiency for the current Water Year, are between 200,000 acre-feet and 

15 800,000 acre-feet, then the following reductions in the Contractor’s monthly Contract 

16 Total shall be imposed:

17 Deficiency (acre-feet) Reduction

18 200,000 – 400,000 10 percent

19 400,001 – 600,000 15 percent

20 600,001 – 800,000 20 percent

21

22 (b) In consideration for the reductions in the Contractor’s monthly Contract 

23 Total imposed pursuant to the provisions of Article 5(a) above, the United States shall 

24 pay Contractor as follows:

25 Reduction Per Acre-Foot Compensation

26 10 percent $ X
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1 15 percent $ Y for quantities from 10-15%

2 20 percent $ Z for quantities from 15-20%

3

4 The dollar per-acre compensation shall be tied to or indexed to the increase of 

5 rates for Project Water or CPI [or other].

6 (b c) In a Critical Year, the Contractor’s Base Supply and Project Water 

7 agreed to be diverted during the period April through October of the Year in which the 

8 principal portion of the Critical Year occurs and, each monthly quantity of said period 

9 shall be reduced by twenty-five percent (25 percent %). 

10 (c d) The amount of any overpayment by the Contractor shall, at its option, be 

11 refunded or credited upon amounts to become due to the United States from the 

12 Contractor under the provisions hereof in the ensuing Year. To the extent of such 

13 deficiency such adjustment of overpayment shall constitute the sole remedy of the 

14 Contractor.

15 INTEGRATED WATER MANAGEMENT AND PARTNERSHIPS

16 6. Contractor and United States desire to work together to maximize the 

17 reasonable beneficial use of water to their mutual benefit. As a consequence, the United 

18 States will work in partnership with Contractor and others within the Sacramento Valley, 

19 including other Contractors with Settlement Contracts, to facilitate the better integration 

20 within the Sacramento Valley of all water supplies including, but not limited to, the better 

21 management and integration of surface water and groundwater, the development and 

22 better utilization of surface water storage, the effective utilization of waste, seepage and 

23 return flow water, and other operational and management options that may be identified 

24 in the future. This will include, but not be limited to, the continuation of the Sacramento 

25 River Settlement Contractors’ pooling agreements, the agreements with respect to use 
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1 and re-use of water within the Colusa Basin Drain, and the Basin-Wide Water 

2 Management Plan process. 

3 USE OF WATER FURNISHED TO CONTRACTOR

4 6 7. (a) Project Water furnished to the Contractor pursuant to this contract

5 Settlement Contract shall not be delivered or furnished by the Contractor for any 

6 purposes other than agricultural purposes without the written consent of the Contracting 

7 Officer. , including, For purposes of this contract, “agricultural purposes” includes, but is

8 not restricted to, the watering of livestock, incidental domestic use including landscape 

9 irrigation, or underground water replenishment without written consent of the 

10 Contracting Officer.

11 (b) Assuming a base-line that includes in excess of 40 years of diversions for 

12 agricultural uses of the quantities of water provided for in Article 3, the Contractor shall 

13 comply with requirements applicable to the Contractor in biological opinion(s) prepared 

14 as a result of a consultation regarding the execution of this Settlement Contract 

15 undertaken pursuant to Section 7 of the Endangered Species Act of 1973, as amended, 

16 that are within the Contractor’s legal authority to implement. The Contractor shall 

17 comply with the limitations or requirements imposed by environmental documentation 

18 applicable to the Contractor and within its legal authority to implement regarding specific 

19 activities, including conversion of Irrigation Water to M&I Water. Nothing herein shall 

20 be construed to prevent the Contractor from challenging or seeking judicial relief in a 

21 court of competent jurisdiction with respect to any biological opinion or other 

22 environmental documentation referred to in this Article.

23
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14

1 RATE AND METHOD OF PAYMENT FOR WATER

2 7 8. (a) The Contractor shall make payments to the United States as provided in 

3 this Article for all Project Water shown in Exhibit A of this contract Settlement Contract 

4 and which is actually diverted by Contractor at Rates and Charges established in 

5 accordance with: (i) the Secretary’s then-current ratesetting policies for the Project; and 

6 (ii) applicable Reclamation law and associated rules and regulations, or policies.: 

7 Provided, That if the Contractor desires to use Project Water for other than agricultural 

8 use the Rates and Charges set forth above will be adjusted by the Contracting Officer to 

9 the applicable Rates and Charges for such use. The Rates and Charges applicable to the 

10 Contractor upon execution of this Settlement Contract are set forth in Exhibit “D”, as 

11 may be revised annually. The Secretary’s ratesetting policies for the Project shall be 

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

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

14 Charges as follows:

15 [(1) Prior to July 1 of each Year, the Contracting Officer shall provide the 

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

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

18 basis for such estimate. The Contractor shall be allowed not less than two (2) months to 

19 review and comment on such estimates. On or before September 15 of each Year, the 

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

21 during the period October 1 of the current Year, through September 30, of the following 

Year, and such notification shall revise Exhibit “D.”1

22 ]

 

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

of acceptable Charges.
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15

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

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

3 Year and the computations and cost allocations upon which those Rates are based. The 

4 Contractor shall be allowed not less than two (2) months to review and comment on such 

5 computations and cost allocations. By December 31 of each Year, the Contracting 

6 Officer shall provide the Contractor with the final Rates to be in effect for the upcoming 

7 Year, and such notification shall revise Exhibit “D”.

8 (c) The Contractor shall pay the United States for Project Water in the 

9 following manner:

10 (1) With respect to Rates, prior to May 1 of each Year, the Contractor 

11 shall pay the United States one-half (1/2) the total amount payable pursuant to 

12 subdivision (a) of this Article and the remainder shall be paid prior to July 1 or such later 

13 date or dates as may be specified by the United States in a written notice to the 

14 Contractor: Provided, however, That that if at any time during the Year the amount of 

15 Project Water diverted by the Contractor shall equal the amount for which payment has 

16 been made, the Contractor shall pay for the remaining amount of such water as shown in 

17 Exhibit A in advance of any further diversion of Project Water.

18 (2) With respect to Charges, the Contractor shall also make a payment to 

19 the United States, in addition to the Rate(s) in subdivision (c)(1) of this Article, at the 

20 Charges then in effect, before the end of the month following the month of delivery or 

21 transfer. The payments shall be consistent with the quantities of Project Water delivered 

22 or transferred. Adjustment for overpayment or underpayment of Charges shall be made 

23 through the adjustment of payments due to the United States for Charges for the next 
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1 month. Any amount to be paid for past due payment of Charges shall be computed 

2 pursuant to Article 12 of this contract Settlement Contract.

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

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

5 (d1) (Contractor Specific)All revenues received by the United States from 

6 the Contractor relating to the delivery of Project Water or the delivery of non-Project 

7 water through Project facilities shall be allocated and applied in accordance with Federal 

8 Reclamation law and the associated rules or regulations, and the then current Project 

9 ratesetting policies for Irrigation Water.

10 (e) In order to allow Contractor to monitor the development of Rates and 

11 Charges, the Contracting Officer shall keep its accounts pertaining to the administration 

12 of the financial terms and conditions of its long-term water service and Settlement 

13 Contracts, in accordance with applicable Federal standards, so as to reflect the application 

14 of Project costs and revenues. The Contracting Officer shall, each Year upon request of 

15 the Contractor, provide to the Contractor a detailed accounting of all Project and 

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

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

18 Contractor shall enter into good faith negotiations to resolve any discrepancies or 

19 disputes relating to accountings, reports, or information.

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

21 Settlement Contract is their mutual goal. Recognizing that experience has demonstrated 

22 that mechanisms, policies, and procedures used for establishing Rates and Charges and/or 

23 for making and allocating payments, other than those set forth in this Article may be in 
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17

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

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

3 while this Settlement Contract is in effect without amendment of this Settlement

4 Contract. 

5 (g) For the term of this contract Settlement Contract, Rates under the 

6 respective ratesetting policies for the Project will be established to recover only 

7 reimbursable operation and maintenance (including any deficits) and capital costs of the 

8 Project, as those terms are used in the then-current Project ratesetting policies, and 

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

10 accordance with the relevant Project ratesetting policy. Proposed changes of significance 

11 in practices which implement the ratesetting policies for the Project will not be 

12 implemented until the Contracting Officer has provided the Contractor an opportunity to 

13 discuss the nature, need, and impact of the proposed change.

14 (h) Except as provided in subsections [3405(a)(1)(B) and 3405(f)] of the 

15 CVPIA, the Rates for Project Water transferred, exchanged, or otherwise disposed of, by 

16 the Contractor shall be the Contractor’s Rates adjusted upward or downward to reflect the 

17 changed costs of delivery (if any) of the transferred, exchanged, or otherwise disposed of 

18 Project Water to the transferee’s point of delivery in accordance with the then-current 

19 ratesetting policies for the Project. If the Contractor is receiving lower Rates and 

20 Charges because of inability to pay and is transferring, exchanging, or otherwise 

21 disposing of Project Water to another entity whose Rates and Charges are not adjusted 

22 due to inability to pay, the Rates and Charges for transferred, exchanged, or otherwise 
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18

1 disposed of Project Water shall be the Contractor’s Rates and Charges unadjusted for 

2 ability to pay.

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

4 Officer is authorized to adjust determinations of ability to pay every five (5) years.

5 (j) Each payment to be made pursuant to subdivisions (a) and (b) of this 

6 Article shall be made at the office of the Bureau of Reclamation, Mid-Pacific Region, 

7 File No. 11546, P.O Box 6000, San Francisco, California, 94160-1546, or at such other 

8 place as the United States may designate in a written notice to the said Contractor. 

9 Payments shall be made by cash transaction, wire, or any other mechanism as may be 

10 agreed to in writing by the Contractor and the Contracting Officer. In event there should 

11 be a default in the payment of the amount due, the delinquent payment provisions of 

12 Article 12 shall apply. The Contractor shall not be relieved of the whole or any part of its 

13 said obligation by, on account of, or notwithstanding, as the case may be:

14 (1) Its failure, refusal, or neglect to divert the quantity of Project Water as 

15 hereinabove provided;

16 (2) The default in payment to it by any water user of assessments, tolls, or 

17 other charges levied by or owing to said Contractor;

18 (3) Any judicial determination that any assessment, toll, or other charge 

19 referred to in subsection 8(c)(2) of this Settlement Contract is irregular, void, or 

20 ineffectual; or

21 (4) Any injunctive process enjoining or restraining the Contractor from 

22 making or collecting any such assessment, toll, or other charge referred to in subsection 

23 8(c)(2) of this Settlement Contract.
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19

1 AGREEMENT ON WATER QUANTITIES

2 8 9. (a) During the term of this contract Settlement Contract and any renewals 

3 thereof:

4 (1) It shall constitute full agreement as between the United States and the 

5 Contractor as to the quantities of water and the allocation thereof between Base Supply 

6 and Project Water which may be diverted by the Contractor from the Sacramento River 

7 for beneficial use on the land shown on Exhibit B which said diversion, use, and 

8 allocation shall not be disturbed so long as the Contractor shall fulfill all of its obligations 

9 hereunder;

10 (2) The Contractor shall not claim any right against the United States in 

11 conflict with the provisions hereof, nor shall the United States claim any right against the 

12 Contractor in conflict with the provisions hereof.

13 (b) Nothing herein contained is intended to or does limit rights of the 

14 Contractor against others than the United States or of the United States against any 

15 person other than the Contractor: Provided, however, That that in the event the 

16 Contractor, the United States, or any other person shall become a party to a general 

17 adjudication of rights to the use of water of the Sacramento River system, this contract

18 Settlement Contract shall not jeopardize the rights or position of either party hereto or of 

19 any other person and the rights of all such persons in respect to the use of such water 

20 shall be determined in such proceedings the same as if this contract Settlement Contract

21 had not been entered into, and if final judgment in any such general adjudication shall 

22 determine that the rights of the parties hereto are different from the rights as assumed 

23 herein, the United States shall submit it to the Contractor parties shall negotiate an 
SRSC Draft 05/31/02

20

1 amendment to give effect to such judgment. In the event the parties are unable to agree 

2 on an appropriate amendment they shall, within 60 days of determining that there is an 

3 impasse, employ the services of a neutral mediator to assist in resolving the impasse. The 

4 cost of the mediation will be shared equally. A failure to reach agreement on an 

5 amendment within 60 days of the end of mediation will cause the immediate termination 

6 of this Settlement Contract. and the contract shall be deemed to have been amended 

7 accordingly unless within sixty (60) days after submission of such amendment to the 

8 Contractor, the Contractor elects to terminate the contract or within the same period of 

9 time the parties agree upon mutually satisfactory amendments to give effect to such 

10 judgment: Provided, further, That if, during the term of this Contract, the Contractor’s or 

11 the United States’ water rights are adjusted or affected, or the responsibility to meet flow, 

12 water quality and/or environmental requirements under those water rights is modified 

13 (e.g., changes to the Delta Water Quality Control Plan and associated water right 

14 actions), by or through any final administrative or judicial proceeding, the Contractor and 

15 the United States shall negotiate appropriate adjustments to this contract. 

16 (c) In the event this contract Settlement Contract terminates, the rights of the 

17 parties to thereafter divert and use water shall exist as if this contract Settlement Contract

18 had not been entered into; and the fact that as a compromise settlement of a controversy 

19 as to the respective rights of the parties to divert and use water and the yield of such 

20 rights during the term hereof, this contract Settlement Contract places a limit on the 

21 Contract Total to be diverted annually by the Contractor during the contract Settlement 

22 Contract term and segregates it into Base Supply and Project Water shall not jeopardize 

23 the rights or position of either party with respect to its water rights or the yield thereof at 
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21

1 all times after the contract Settlement Contract terminates. It is further agreed that the 

2 Contractor at all times will first use water to the use of which it is entitled by virtue of its 

3 own water rights, and neither the provisions of this contract Settlement Contract, action 

4 taken thereunder, nor payments made thereunder to the United States by the Contractor 

5 shall be construed as an admission that any part of the water used by the Contractor 

6 during the term of this contract Settlement Contract was in fact water to which it would 

7 not have been entitled under water rights owned by it nor shall receipt of payments 

8 thereunder by the United States from the Contractor be construed as an admission that 

9 any part of the water used by the Contractor during the term of this contract Settlement 

10 Contract was in fact water to which it would have been entitled under water rights owned 

11 by it.

12 MEASUREMENT OF WATER

13 9 10. (a) All water diverted by the Contractor from Sacramento River will be 

14 diverted at the existing point or points of diversion shown on Exhibit A or at such other 

15 points as may be mutually agreed upon in writing by the Contracting Officer and the 

16 Contractor. 

17 (b) All water diverted from the Sacramento River pursuant to this contract

18 Settlement Contract will be measured or caused to be measured by the United States at 

19 each point of diversion with existing equipment or equipment to be installed, operated, 

20 and maintained by the United States, and/or others, under contract with and at the option 

21 of the United States. The equipment and methods used to make such measurement shall 

22 be in accordance with sound engineering practices. Upon request of the Contractor, the 
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22

1 accuracy of such measurements will be investigated by the Contracting Officer and any 

2 errors appearing therein will be corrected.

3 (c) The right of ingress to and egress from all points of diversion is hereby 

4 granted to all authorized employees of the United States. The Contractor also hereby 

5 grants to the United States the right to install, operate, maintain and replace such 

6 equipment on diversion or carriage facilities at each point of diversion as the Contracting 

7 Officer deems necessary.

8 (d) The Contractor shall not modify, alter, remove, or replace diversion 

9 facilities or do any other act which would alter the effectiveness or accuracy of the 

10 measuring equipment installed by the United States or its representatives unless and until 

11 the Contracting Officer has been notified with due diligence and has been given an 

12 opportunity to modify such measuring equipment in such manner as may be necessary or 

13 appropriate. In the event of an emergency the Contractor shall notify the United States 

14 within a reasonable time thereafter as to the existence of the emergency and the nature 

15 and extent of such modification, alteration, removal, or replacement of diversion 

16 facilities.

17 (e) Unless the Contractor has itself already incurred the relevant expenses, the 

18 Contractor shall pay the United States for the costs to repair, relocate, or replace 

19 measurement equipment when the Contractor modifies, alters, removes, or replaces 

20 diversion or carriage facilities. 

21 (f) (Contractor Specific) By __________________[DATE] ________, the 

22 Contractor shall ensure that, unless the Contractor establishes an alternative measurement 

23 program satisfactory to the Contracting Officer, all surface water delivered for irrigation 
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23

1 purposes on the lands delineated on Exhibit B is measured at each agricultural turnout. 

2 The water measuring devices or water measuring methods of comparable effectiveness 

3 must be acceptable to the Contracting Officer. The Contractor shall be responsible for 

4 installing, operating, and maintaining and repairing all such measuring devices and 

5 implementing all such water measuring methods at no cost to the United States. The 

6 Contractor shall inform the Contracting Officer in writing by April 30 of each Year of the 

7 monthly volume of surface water delivered to the lands delineated on Exhibit B during 

8 the previous Year. This information will be used by Reclamation to satisfy the water 

9 measurement requirements of the Contractor’s water conservation plan, as set forth in 

10 Article 28 of this Contract.

11 (g) All new surface water delivery systems installed within the lands 

12 delineated on Exhibit B after the effective date of this Contract shall also comply with the 

13 measurement provisions described in this Article.

14 RULES AND REGULATIONS

15 10 11. The parties agree that the delivery of Project Water for irrigation use or 

16 use of Federal facilities pursuant to this Settlement Contract is subject to Federal 

17 Reclamation law, including but not limited to, the Reclamation Reform Act of 1982 (43 

18 U.S.C.390aa et seq.), as amended and supplemented, and the rules and regulations 

19 promulgated by the Secretary of the Interior under Federal Reclamation law. 

20 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

21

22 11 12. (a) The obligation of the Contractor to pay the United States as provided 

23 in this Settlement Contract is a general obligation of the Contractor notwithstanding the 

24 manner in which the obligation may be distributed among the Contractor's water users 

25 and notwithstanding the default of individual water users in their obligations to the 

26 Contractor. 

27
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24

1 (b) The payment of Charges becoming due hereunder is a condition precedent 

2 to receiving benefits under this Settlement Contract. The United States shall not make 

3 water available to the Contractor through Project facilities during any period in which the 

4 Contractor may be in arrears in the advance payment of water Rates due the United 

5 States. The Contractor shall not furnish water made available pursuant to this Settlement

6 Contract for lands or parties which are in arrears in the advance payment of water rates 

7 levied or established by the Contractor. 

8

9 (c) With respect to subdivision (b) of this Article, the Contractor shall have 

10 no obligation to require advance payment for water Rates which it levies.

11

12 CHARGES FOR DELINQUENT PAYMENTS

13

14 12 13. (a) The Contractor shall be subject to interest, administrative and penalty 

15 charges on delinquent installments or payments. When a payment is not received by the 

16 due date, the Contractor shall pay an interest charge for each day the payment is 

17 delinquent beyond the due date. When a payment becomes sixty (60) days delinquent, 

18 the Contractor shall pay an administrative charge to cover additional costs of billing and 

19 processing the delinquent payment. When a payment is delinquent ninety (90) days or 

20 more, the Contractor shall pay an additional penalty charge of six (6%) percent per year 

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

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

23

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

25 in the Federal Register by the Department of the Treasury for application to overdue 

26 payments, or the interest rate of one-half of one (0.5%) percent per month prescribed by 

27 Section 6 of the Reclamation Project Act of 1939 (Public Law 76-260). The interest 

28 charge rate shall be determined as of the due date and remain fixed for the duration of the 

29 delinquent period. 

30

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

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

33 to the accrued interest, and finally to the overdue payment.

34

35 QUALITY OF WATER

36 13 14. The operation and maintenance of Project facilities shall be performed in 

37 such manner as is practicable to maintain the quality of raw water made available through 

38 such facilities at the highest level reasonably attainable as determined by the Contracting 

39 Officer. The United States does not warrant the quality of water and is under no 
SRSC Draft 05/31/02

25

1 obligation to construct or furnish water treatment facilities to maintain or better the 

2 quality of water.

3 WATER AND AIR POLLUTION CONTROL

4 14 15. The Contractor, in carrying out this Settlement Contract, shall comply 

5 with all applicable water and air pollution laws and regulations of the United States and 

6 the State of California, and shall obtain all required permits or licenses from the 

7 appropriate Federal, State, or local authorities.

8 EQUAL OPPORTUNITY

9

10 15 16. During the performance of this Settlement Contract, the Contractor agrees 

11 as follows:

12

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

14 for employment because of race, color, religion, sex, or national origin. The Contractor 

15 will take affirmative action to ensure that applicants are employed, and that employees 

16 are treated during employment, without regard to their race, color, religion, sex, or 

17 national origin. Such action shall include, but not be limited to, the following: 

18 Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; 

19 layoff or termination, rates of payment or other forms of compensation; and selection for 

20 training, including apprenticeship. The Contractor agrees to post in conspicuous places, 

21 available to employees and applicants for employment, notices to be provided by the 

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

23

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

25 placed by or on behalf of the Contractor, state that all qualified applicants will receive 

26 consideration for employment without discrimination because of race, color, religion, 

27 sex, or national origin.

28

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

30 with which it has a collective bargaining agreement or other contract or understanding, a 

31 notice, to be provided by the Contracting Officer, advising the said labor union or 

32 workers' representative of the Contractor's commitments under Section 202 of Executive 

33 Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous 

34 places available to employees and applicants for employment.

35

36 (d) The Contractor will comply with all provisions of Executive Order No. 

37 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant 

38 orders of the Secretary of Labor. 

39
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26

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

2 amended Executive Order and by the rules, regulations, and orders of the Secretary of 

3 Labor, or pursuant thereto, and will permit access to its books, records, and accounts by 

4 the Contracting Officer and the Secretary of Labor for purposes of investigation to 

5 ascertain compliance with such rules, regulations, and orders.

6

7 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

8 clauses of this Settlement Contract or with any of the said rules, regulations, or orders, 

9 this Settlement Contract may be canceled, terminated, or suspended, in whole or in part, 

10 and the Contractor may be declared ineligible for further Government contracts in 

11 accordance with procedures authorized in said amended Executive Order, and such other 

12 sanctions may be imposed and remedies invoked as provided in said Executive Order, or 

13 by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

14

15 (g) The Contractor will include the provisions of paragraphs (a) through (g) 

16 in every subcontract or purchase order unless exempted by the rules, regulations, or 

17 orders of the Secretary of Labor issued pursuant to Section 204 of said amended 

18 Executive Order, so that such provisions will be binding upon each subcontractor or 

19 vendor. The Contractor will take such action with respect to any subcontract or purchase 

20 order as may be directed by the Secretary of Labor as a means of enforcing such 

21 provisions, including sanctions for noncompliance: Provided, however, That that in the 

22 event the Contractor becomes involved in, or is threatened with, litigation with a 

23 subcontractor or vendor as a result of such direction, the Contractor may request the 

24 United States to enter into such litigation to protect the interests of the United States.

25

26 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

27 (For Districts Only)

28

29 16 17. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 

30 1964 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as 

31 amended), the Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other 

32 applicable civil rights laws, as well as with their respective implementing regulations and 

33 guidelines imposed by the U.S. Department of the Interior and/or Bureau of Reclamation.

34

35 (b) These statutes require that no person in the United States shall, on the 

36 grounds of race, color, national origin, handicap, or age, be excluded from participation 

37 in, be denied the benefits of, or be otherwise subjected to discrimination under any 

38 program or activity receiving financial assistance from the Bureau of Reclamation. By 

39 executing this Settlement Contract, the Contractor agrees to immediately take any 

40 measures necessary to implement this obligation, including permitting officials of the 

41 United States to inspect premises, programs, and documents.

42

43 (c) The Contractor makes this agreement in consideration of and for the 

44 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or 

45 other Federal financial assistance extended after the date hereof to the Contractor by the 

46 Bureau of Reclamation, including installment payments after such date on account of 
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27

1 arrangements for Federal financial assistance which were approved before such date. 

2 The Contractor recognizes and agrees that such Federal assistance will be extended in 

3 reliance on the representations and agreements made in this Article, and that the United 

4 States reserves the right to seek judicial enforcement thereof.

5

6 MINGLING OF CONTRACTOR’S PROJECT AND NON-PROJECT WATER

7 17 18. (a) Project Water must of necessity be transported by the Contractor to its 

8 water users by means of the same works and channels used for the transport of its non9 Project Water including Base Supply. Notwithstanding such mingling of water, the 

10 provisions of Article 11 hereof shall be applicable only to Project Water, and such 

11 mingling of water shall not in any manner subject to the provisions of Article 11 hereof 

12 the Contractor’s non-Project water including Base Supply.

13 (b) If required in accordance with subdivision (c) of this Article, the 

14 Contractor shall install and maintain such measuring equipment and distribution facilities 

15 and maintain such records as may be necessary to determine the amounts of water 

16 delivered to Excess Lands served by the Contractor. The Contractor shall not within any 

17 month deliver to Ineligible Lands water in excess of the non-Project Water, including 

18 Base Supply, for that month. The Contracting Officer or authorized representative shall 

19 have the right at all reasonable times to inspect such records and measuring equipment.

20 (c) The Contractor will not be considered in violation of the requirement that 

21 Project Water be delivered only to Eligible Lands during any month of the irrigation 

22 season that the water requirement for beneficial use on Eligible Lands for that month is 

23 equal to or in excess of the Project Water for that month as shown on Exhibit A or any 

24 revision thereof pursuant to subdivision (b) of Article 3. The water requirement for 

25 beneficial use on Eligible Lands will be determined by multiplying:
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28

1 (1) the number of irrigable acres of the particular types of crops grown in 

2 that year on the acreage designated as eligible by

3 (2) the Unit Duties as set forth in Exhibit C attached hereto and made a 

4 part hereof, or by such other Unit Duties mutually agreed upon by the Contractor and the 

5 Contracting Officer. In order to make the computation of the water requirement for 

6 Eligible Lands, on April 1 of each Year and concurrently with its order for water for the 

7 irrigation season, the Contractor shall designate the acreage of and type of crops to be 

8 grown on its Eligible Lands that irrigation season. During any month the water 

9 requirement as above determined for crops growing on Eligible Lands during such month 

10 is equal to or in excess of the Project Water for that month as provided herein the 

11 Contractor shall not be required to measure the water delivered to Excess Lands. Any 

12 month the said water requirement is less than the amount of Project Water as provided 

13 herein, the Contractor will be required to measure water delivered to excess land in 

14 accordance with subdivision (b) hereof.

15 BOOKS, RECORDS, AND REPORTS

16 18 19. The Contractor shall establish and maintain accounts and other books and 

17 records pertaining to administration of the terms and conditions of this Settlement

18 Contract, including: the Contractor's financial transactions, water supply data, and 

19 Project land and right-of-way agreements; the water users' land-use (crop census), land 

20 ownership, land-leasing and water use data; and other matters that the Contracting 

21 Officer may require. Reports thereon shall be furnished to the Contracting Officer in 

22 such form and on such date or dates as the Contracting Officer may require. Subject to 

23 applicable Federal laws and regulations, each party to this Settlement Contract shall have 

24 the right during office hours to examine and make copies of each other’s books and 

25 official records relating to matters covered by this Settlement Contract. 

26

27 CHANGE OF PLACE OF USE OR ORGANIZATION

28 19 20. (a) Unless the written consent of the United States is first obtained

29 consulted no change shall be made in the place of water use shown on Exhibit B. 
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29

1 (b) While this contract Settlement Contract is in effect, no change shall be 

2 made in the area of the Contractor as shown on its Exhibit B, by inclusion or exclusion of 

3 lands, by dissolution, consolidation, or merger or otherwise, except upon unless the 

4 Contracting Officer’s written assent thereto Officer is first consulted. 

5 (c) In the event lands are excluded from the area of the Contractor, as 

6 provided herein, the quantity of Project Water to be diverted may be decreased pursuant 

7 to a supplemental agreement to be executed in respect thereto.

8 CONSOLIDATION OF CONTRACTING ENTITIES

9

10 20 21. Consolidation of Contractors may will be approved by the Contracting 

11 Officer upon request provided: (i) the Contracting Officer approves the form and 

12 organization of the resulting entity and the utilization by it of the Contract Total; and (ii) 

13 the obligations of the Contractors are assumed by such the resulting entity. 

14 No such consolidation shall be valid unless and until approved by the Contracting 

15 Officer.

16 NOTICES

17 21 22. Any notice, demand, or request authorized or required by this Settlement

18 Contract shall be deemed to have been given, on behalf of the Contractor, when mailed, 

19 postage prepaid, or delivered to the Area Manager, Northern California Area Office, 

20 Bureau of Reclamation, 16349 Shasta Dam Blvd., Shasta Lake, California, 96019, and on 

21 behalf of the United States, when mailed, postage prepaid, or delivered to the Board of 

22 Directors /City Council of the ________________________. The designation of the 

23 addressee or the address may be changed by notice given in the same manner as provided 

24 in this Article for other notices.

25

26 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

27

28 22 23. (a) The provisions of this Settlement Contract shall apply to and bind the 

29 successors and assigns of the parties hereto, but no assignment or transfer of this 

30 Settlement Contract or any right or interest therein shall be valid until approved in writing 

31 by the Contracting Officer.

32
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30

1 (b) The assignment of any right or interest in this Settlement Contract by 

2 either party shall not interfere with the rights or obligations of the other party to this 

3 Settlement Contract absent the written concurrence of said other party.

4

5 (c) The Contracting Officer shall not unreasonably condition or withhold his 

6 approval of any proposed assignment.

7

8 OFFICIALS NOT TO BENEFIT

9

10 23 24. (a) No Member of or Delegate to Congress, Resident Commissioner, or 

11 official of the Contractor shall benefit from this Settlement Contract other than as a water 

12 user or landowner in the same manner as other water users or landowners.

13

14 (b) No officer or member of the governing board of the Contractor shall 

15 receive any benefit that may arise by reason of this contract Settlement Contract other 

16 than as a landowner within the Contractor’s service area and in the same manner as other 

17 landowners within the said service area.

18

19 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS

20

21 24 25. The expenditure or advance of any money or the performance of any 

22 obligation of the United States under this Settlement Contract shall be contingent upon 

23 appropriation or allotment of funds. Absence of appropriation or allotment of funds shall 

24 not relieve the Contractor from any obligations under this Settlement Contract. No 

25 liability shall accrue to the United States in case funds are not appropriated or allotted.

26

27 CONFIRMATION OF SETTLEMENT CONTRACT

28 25 26. The Contractor, after the execution of this Settlement Contract, shall 

29 promptly seek to secure a decree of a court of competent jurisdiction of the State of 

30 California, if appropriate, confirming the execution of this contract Settlement Contract. 

31 The Contractor shall furnish the United States a certified copy of the final decree, the 

32 validation proceedings, and all pertinent supporting records of the court approving and 

33 confirming this Settlement Contract, and decreeing and adjudging it to be lawful, valid, 

34 and binding on the Contractor. This Settlement Contract shall not be binding on the 

35 United States until such final decree has been secured.

36

37 UNAVOIDABLE GROUNDWATER PERCOLATION

38 26 27. To the extent applicable, the Contractor shall not be deemed to have 

39 delivered Project Water to Excess Lands or Ineligible Lands if such lands are irrigated 

40 with groundwater that reaches the underground strata as an unavoidable result of the 

41 delivery of Project Water by the Contractor to Eligible Lands.
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31

1 PRIVACY ACT COMPLIANCE

2

3 27 28. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 

4 552a) (the Act) and the Department of the Interior rules and regulations under the Act (43 

5 CFR 2.45 et seq.) in maintaining Landholder acreage certification and reporting records, 

6 required to be submitted to the Contractor for compliance with Sections 206 and 228 of 

7 the Reclamation Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18.

8

9 (b) With respect to the application and administration of the criminal penalty 

10 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees 

11 responsible for maintaining the certification and reporting records referenced in (a) above 

12 are considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

13

14 (c) The Contracting Officer or a designated representative shall provide the 

15 Contractor with current copies of the Interior Department Privacy Act regulations and the 

16 Bureau of Reclamation Federal Register Privacy Act System of Records Notice (Acreage 

17 Limitation--Interior, Reclamation-31) which govern the maintenance, safeguarding, and 

18 disclosure of information contained in the Landholder's certification and reporting 

19 records. 

20

21 (d) The Contracting Officer shall designate a full-time employee of the 

22 Bureau of Reclamation to be the System Manager who shall be responsible for making 

23 decisions on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 

24 43 CFR 2.72. The Contractor is authorized to grant requests by individuals for access to 

25 their own records. 

26

27 (e) The Contractor shall forward promptly to the System Manager each 

28 proposed denial of access under 43 CFR 2.64; and each request for amendment of records 

29 filed under 43 CFR 2.71; notify the requester accordingly of such referral; and provide 

30 the System Manager with information and records necessary to prepare an appropriate 

31 response to the requester. These requirements do not apply to individuals seeking access 

32 to their own certification and reporting forms filed with the Contractor pursuant to 43 

33 CFR 426.18, unless the requester elects to cite the Privacy Act as a basis for the request.

34

35 WATER CONSERVATION

36 28 29. [TO BE REPLACED]. (a) Prior to the diversion of Project Water, the 

37 Contractor shall be implementing an effective water conservation and efficiency program 

38 based on the Contractor's water conservation plan that has been determined by the 

39 Contracting Officer to meet the conservation and efficiency criteria for evaluating water 

40 conservation plans established under Federal law. The water conservation and efficiency 
SRSC Draft 05/31/02

32

1 program shall contain definite water conservation objectives, appropriate economically 

2 feasible water conservation measures, and time schedules for meeting those objectives. 

3 Continued diversion of Project Water pursuant to this Settlement Contract shall be 

4 contingent upon the Contractor’s continued implementation of such water conservation 

5 program. In the event the Contractor's water conservation plan or any revised water 

6 conservation plan completed pursuant to subdivision (c) of Article 28 of this Settlement

7 Contract have not yet been determined by the Contracting Officer to meet such criteria, 

8 due to circumstances which the Contracting Officer determines are beyond the control of 

9 the Contractor, Project Water deliveries shall be made under this Settlement Contract so 

10 long as the Contractor diligently works with the Contracting Officer to obtain such 

11 determination at the earliest practicable date, and thereafter the Contractor immediately 

12 begins implementing its water conservation and efficiency program in accordance with 

13 the time schedules therein.

14 (b) The Contractor shall submit to the Contracting Officer a report on the 

15 status of its implementation of the water conservation plan on the reporting dates 

16 specified in the then existing conservation and efficiency criteria established under 

17 Federal law.

18 (c) At five (5)-year intervals, the Contractor shall revise its water 

19 conservation plan to reflect the then current conservation and efficiency criteria for 

20 evaluating water conservation plans established under Federal law and submit such 

21 revised water management plan to the Contracting Officer for review and evaluation. 

22 The Contracting Officer will then determine if the water conservation plan meets 
SRSC Draft 05/31/02

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1 Reclamation’s then current conservation and efficiency criteria for evaluating water 

2 conservation plans established under Federal law. 

3 (d) If the Contractor is engaged in direct ground-water recharge, such activity 

4 shall be described in the Contractor’s water conservation plan.

5 OPINIONS AND DETERMINATIONS

6

7 29 30. (a) Where the terms of this Settlement Contract provide for actions to be 

8 based upon the opinion or determination of either party to this Settlement Contract, said 

9 terms shall not be construed as permitting such action to be predicated upon arbitrary, 

10 capricious, or unreasonable opinions or determinations. Both parties, notwithstanding 

11 any other provisions of this Settlement Contract, expressly reserve the right to seek relief 

12 from and appropriate adjustment for any such arbitrary, capricious, or unreasonable 

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

14 provided in a timely manner. Nothing in subdivision (a) of Article 29 of this Settlement

15 Contract is intended to or shall affect or alter the standard of judicial review applicable 

16 under federal law to any opinion or determination implementing a specific provision of 

17 federal law embodied in statute or regulation. 

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

19 necessary to administer this Settlement Contract that are consistent with the provisions of 

20 this Settlement Contract, the laws of the United States and of the State of California, and 

21 the rules and regulations promulgated by the Secretary of the Interior. Such 

22 determinations shall be made in consultation with the Contractor to the extent reasonably 

23 practicable.
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34

1 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

2 30 31. (a) In addition to all other payments to be made by the Contractor 

3 pursuant to this Settlement Contract, the Contractor shall pay to the United States, within 

4 sixty (60) days after receipt of a bill and detailed statement submitted by the Contracting 

5 Officer to the Contractor for such specific items of direct cost incurred by the United 

6 States for work requested by the Contractor associated with this Settlement Contract plus 

7 indirect costs in accordance with applicable Bureau of Reclamation policies and 

8 procedures. All such amounts referred to in this Article shall not exceed the amount 

9 agreed to in writing in advance by the Contractor. This Article shall not apply to costs 

10 for routine contract Settlement Contract administration.

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

12 Contractor pursuant to Article 30 of this Settlement Contract shall be adjusted to reflect 

13 the actual costs when the work has been completed. If the advances exceed the actual 

14 costs incurred, the difference will be refunded to the Contractor. If the actual costs 

15 exceed the Contractor's advances, the Contractor will be billed for the additional costs 

16 pursuant to Article 30 of this Settlement Contract.

17 WAIVER OF DEFAULT

18 31 32. The waiver by either party to this contract Settlement Contract as to any 

19 default shall not be construed as a waiver of any other default or as authority of the other 

20 party to continue such default or to make, do, or perform, or not to make, do, or perform, 

21 as the case may be, any act or thing which would constitute a default.

22
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35

1 IN WITNESS WHEREOF, the parties hereto have executed this contract

2 Settlement Contract as of the day and year first hereinabove written.

3

4 THE UNITED STATES OF AMERICA

5

6

7

8 By: __________________________

9 Regional Director, Mid-Pacific Region 

10 Bureau of Reclamation

11

12

13 (SEAL)

14

15

16 (Contractor)

17

18

19 By:______________________________

20 President

21

22

23 ATTEST:

24

25

26 ________________________________

27 Secretary

28

29

30 (I:\sac river renewal\Sac R Long Form Draft.doc)

31