AG and M&I 

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

Westside WD Draft 7/22-2003 

Westside WD Draft 7/07-2003 

Westside WD Draft 6/26-2003 

Westside WD Draft 6/25-2003 

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

Sac.Valley Division Draft 5/28-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

14-06-200-8222-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

AND

WESTSIDE WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM THE SACRAMENTO RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals ............................................................................................ 2-4 

 1 Definitions............................................................................................................ 4-8 

 2 Term of Contract................................................................................................8-10

 3 Water to be Made Available and Delivered to the Contractor.........................11-13 

 4 Time for Delivery of Water .................................................................................. 14 

 5 Point of Diversion and Responsibility for Distribution of Water....................14-16 

 6 Measurement of Water Within the Contractor’s Boundaries ..........................16-18 

 7 Rates and Method of Payment for Water.........................................................18-23 

 8 Non-Interest Bearing Operation and Maintenance Deficits.................................. 23 

 9 Sales, Transfers, or Exchanges of Water .........................................................24-25 

 10 Application of Payments and Adjustments......................................................25-26 

 11 Temporary Reductions--Return Flows ............................................................26-27 

 12 Constraints on the Availability of Water .............................................................. 27 

 13 Unavoidable Groundwater Percolation................................................................. 27 

 14 Rules and Regulations........................................................................................... 28 

 15 Water and Air Pollution Control........................................................................... 28 

 16 Quality of Water .............................................................................................. 28-29 

 17 Water Acquired by the Contractor Other Than From the United States.........28-31 
Contract No. 14-06-200-8222-LTR1 

Table of Contents - continued

Article No. Title Page No.

 18 Opinions and Determinations ............................................................................... 31 

 19 Coordination and Cooperation.........................................................................31-33 

 20 Charges for Delinquent Payments ........................................................................ 33 

 21 Equal Opportunity............................................................................................33-34 

 22 General Obligation--Benefits Conditioned Upon Payment .............................34-35 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 35 

 24 Privacy Act Compliance ..................................................................................35-36 

 25 Contractor to Pay Certain Miscellaneous Costs.................................................... 36 

 26 Water Conservation .........................................................................................36-37 

 27 Existing or Acquired Water or Water Rights...................................................37-38 

 28 Operation and Maintenance by Operating Non-Federal Entity .......................38-39 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 39 

 30 Books, Records, and Reports........................................................................... 39-40 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 40 

 32 Severability ......................................................................................................40-41 

 33 Resolution of Disputes.......................................................................................... 41 

 34 Officials Not to Benefit......................................................................................... 41 

 35 Changes in Contractor’s Boundaries ...............................................................41-42 

 36 Federal Laws......................................................................................................... 42 

 37 Notices .................................................................................................................. 42

 38 Confirmation of Contract...................................................................................... 42 

 Signature Page ..................................................................................................... 43/ 

 Exhibit A - Map of Contractor's Boundaries 

 Exhibit B - Rates and Charges 
AG and M&I 

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

Westside WD Draft 7/22-2003 

Westside WD Draft 7/07-2003 

Westside WD Draft 6/26-2003 

Westside WD Draft 6/25-2003 

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

Sac.Valley Division Draft 5/28-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

14-06-200-8222-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

6 AND

7 WESTSIDE WATER DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE SACRAMENTO RIVER DIVISION

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

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

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

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

14 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 

15 (100 Stat. 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all 

16 collectively hereinafter referred to as Federal Reclamation law, between THE UNITED STATES 

17 OF AMERICA, hereinafter referred to as the United States, and WESTSIDE WATER DISTRICT, 

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

19 existing, and acting pursuant to the laws thereof; 

20 WITNESSETH, That:
Contract No. 14-06-200-8222-LTR1 

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21 EXPLANATORY RECITALS

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

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

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

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

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

27 San Joaquin River and their tributaries; and 

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

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

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

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

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

33 to California law for operation of the Project; and 

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

35 No. 14-06-200-8222, as amended on September 16, 1964, which established terms for the delivery 

36 to the Contractor of Project Water from the Canal Facilities from March 16, 1960, through 

37 February 28, 1995, and under which the initial date of water delivery to the Contractor was 

38 January 1, 1982; and 

 [5th 39 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

40 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

41 interim renewal contract(s) identified as Contract No(s). 14-06-200-8222-IR1, 14-06-200-8222-IR2, 

42 14-06-200-8222-IR3, 14-06-200-8222-IR4, 14-06-200-8222-IR5, 14-06-200-8222-IR6, and 14-06-

43 200-8222-IR7, and 14-06-200-8222-IR8, the current of which is hereinafter referred to as the 

44 Existing Contract, which provided for the continued water service to the Contractor from March 1, 

45 2004, through February 28, 2006; and 
Contract No. 14-06-200-8222-LTR1 

3

46 [5.1] WHEREAS, the United States and the County of Colusa entered into Contract 

47 No. 14-06-200-8310A which established terms for the delivery to the County of Colusa of Project 

48 Water from the Canal Facilities; and 

49 [5.2] WHEREAS, the County of Colusa and the Contractor entered into a partial 

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

51 to the Contractor 40,000 acre-feet of the Project Water made available to the County of Colusa 

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

53 [5.3] WHEREAS, the Contractor desires to merge the Existing Contract and Contract 

54 No. 14-06-200-8310X into a single contract identified as Contract No. 14-06-200-8222-LTR1; and 

 [6th 55 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

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

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

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

 [7th 60 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 62 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

63 Contract (merged with Contract No. 14-06-200-8310X), pursuant to the terms of the Existing 

64 Contract, Federal Reclamation law, and the laws of the State of California, for water service from 

65 the Project; and 

 [9th 66 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

67 its obligations under the Existing Contract and Contract No. 14-06-200-8310X; and 

 [10th 68 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

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

70 beneficial use and, based upon a needs analysis cooperatively prepared by the Contracting Officer 

71 and the Contractor, has demonstrated projected future demand for water use that exceeds the 

72 Contract Total to be made available to it pursuant to this Contract; and 
Contract No. 14-06-200-8222-LTR1 

4

 [11th 73 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

75 an essential portion of its water supply; and 

 [12th 76 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

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

 [13th 78 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

80 Project for all Project purposes; and 

 [14th 81 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

86 relative to the Project; and 

 [15th 87 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

88 relationship in order to achieve their mutual goals; and 

 [16th 89 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

93 DEFINITIONS

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

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

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

97 dates inclusive; 
Contract No. 14-06-200-8222-LTR1 

5

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

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

100 annually by the Contracting Officer pursuant to this Contract; 

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

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

103 Total; 

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

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

106 regulation; 

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

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

109 (f) “Contractor’s Boundaries” shall mean the area to which the Contractor is 

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

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

112 amendment of this Contract; 

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

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

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

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

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

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

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

120 Reclamation law; 

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

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

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

124 funded, less payments, over such periods as may be required under Federal Reclamation law, or 
Contract No. 14-06-200-8222-LTR1 

6

125 applicable contract provisions. Interest will accrue on both the construction expenditures and 

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

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

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

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

130 Regulations for the RRA; 

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

132 delivered in accordance with Section 204 of the RRA; 

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

134 the delivery of Irrigation Water; 

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

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

137 thereto, and watering of livestock; 

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

139 nonexempt land, as provided in 43 CFR 426.2; 

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

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

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

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

144 than five acres unless the Contractor establishes to the satisfaction of the Contracting Officer that 

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

146 Article; 

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

148 delivery of M&I Water; 

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

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

151 Project facilities; 
Contract No. 14-06-200-8222-LTR1 

7

152 (r) “Operating Non-Federal Entity” shall mean the Tehama-Colusa Canal 

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

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

155 which may have funding obligations with respect thereto; 

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

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

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

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

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

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

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

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

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

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

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

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

168 preceding contract(s); 

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

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

171 through any agency of the Department of the Interior; 

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

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

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

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

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

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

178 Officer, pursuant to subdivision (a) of Article 4 of this Contract; 
Contract No. 14-06-200-8222-LTR1 

8

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

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

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

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

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

184 TERM OF CONTRACT 

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

186 and supercedes the Existing Contract. In the event the Contractor wishes to renew this Contract 

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

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

189 this Contract insofar as it pertains to the furnishing of Irrigation Water to the Contractor shall be 

190 governed by subdivision (b) of this Article, and the renewal of this Contract insofar as it pertains to 

191 the furnishing of M&I Water to the Contractor shall be governed by subdivision (c) of this Article. 

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

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

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

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

196 the Contractor, shall be renewed for a period of 25 years. 

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

198 are: (i) the Contractor has prepared a water conservation plan that has been determined by the 

199 Contracting Officer in accordance with Article 26 of this Contract to meet the conservation and 

200 efficiency criteria for evaluating such plans established under Federal law; (ii) the Contractor is 

201 implementing an effective water conservation and efficiency program based on the Contractor’s 

202 water conservation plan as required by Article 26 of this Contract; (iii) the Contractor is maintaining 

203 all water measuring devices and implementing all water measurement methods as approved by the 

204 Contracting Officer pursuant to Article 6 of this Contract; (iv) the Contractor has reasonably and 

205 beneficially used the Project Water supplies made available to it and, based on projected demands, 
Contract No. 14-06-200-8222-LTR1 

9

206 is reasonably anticipated and expects to fully utilize for reasonable and beneficial use the quantity 

207 of Project Water to be made available to it pursuant to such renewal; (v) the Contractor is 

208 complying with all terms and conditions of this Contract; and (vi) the Contractor has the physical 

209 and legal ability to deliver Project Water. 

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

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

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

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

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

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

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

217 toward achieving the purposes of the CVPIA as set out in Section 3402 and in implementing the 

218 specific provisions of the CVPIA; and current and anticipated economic circumstances of the region 

219 served by the Contractor. 

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

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

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

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

224 the opportunity to comment to the Contracting Officer on the proposed adoption and application of 

225 any revised policy applicable to the delivery of M&I Water that would limit the term of any 

226 subsequent renewal contract with the Contractor for the furnishing of M&I Water to less than 40 

227 years. 

228 (d) The Contracting Officer shall make a determination ten years after the date of 

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

230 whether a conversion of the relevant portion of this Contract to a contract under subsection 9(d) of 

231 the Reclamation Project Act of 1939 can be accomplished pursuant to the Act of July 2, 1956 (70 

232 Stat. 483). The Contracting Officer shall also make a determination ten years after the date of 
Contract No. 14-06-200-8222-LTR1 

10

233 execution of this Contract and every five years thereafter during the term of this contract of whether 

234 a conversion of the relevant portion of this Contract to a contract under subsection 9(c)(1) of the 

235 Reclamation Project Act of 1939 can be accomplished. Notwithstanding any provision of this 

236 Contract, the Contractor reserves and shall have all rights and benefits under the Act of July 2, 1956 

237 (70 Stat. 483). The Contracting Officer anticipates that during the term of this Contract, all 

238 authorized Project construction expected to occur will have occurred, and on that basis the 

239 Contracting Officer agrees upon such completion to allocate all costs that are properly assignable to 

240 the Contractor, and agrees further that, at any time after such allocation is made, and subject to 

241 satisfaction of the condition set out in this subdivision, this Contract shall, at the request of the 

242 Contractor, be converted to a contract under subsection 9(d) or 9(c)(1), whichever is applicable, of 

243 the Reclamation Project Act of 1939, subject to applicable Federal law and under stated terms and 

244 conditions mutually agreeable to the Contractor and the Contracting Officer. A condition for such 

245 conversion to occur shall be a determination by the Contracting Officer that, account being taken of 

246 the amount credited to return by the Contractor as provided for under Federal Reclamation law, the 

247 remaining amount of construction costs assignable for ultimate return by the Contractor can 

248 probably be repaid to the United States within the term of a contract under subsection 9(d) or 

249 9(c)(1), whichever is applicable. If the remaining amount of costs that are properly assignable to 

250 the Contractor cannot be determined during the term of this Contract, the Contracting Officer shall 

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

252 Further, the Contracting Officer shall make such a determination as soon thereafter as possible so as 

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

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

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

256 the term of this Contract or the Contractor has not requested conversion of this Contract within such 

257 term, the parties shall incorporate in any subsequent renewal contract as described in subdivision (b) 

258 of this Article a provision that carries forth in substantially identical terms the provisions of this 

259 subdivision. 
Contract No. 14-06-200-8222-LTR1 

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260 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

263 Contract, the Contracting Officer shall make available for delivery to the Contractor 65,000 acre264 feet of Project Water for irrigation and M&I purposes. Water Delivered to the Contractor in 

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

266 Articles 4 and 7 of this Contract. 

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

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

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

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

271 in any given Year is uncertain. The Contracting Officer’s modeling referenced in the PEIS 

272 projected that the Contract Total set forth in this Contract will not be available to the Contractor in 

273 many years. During the most recent five years, the Recent Historic Average of water made 

274 available to the Contractor was 59,800 acre-feet. Nothing in subdivision (b) of this Article shall 

275 affect the rights and obligations of the parties under any provision of this Contract. 

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

277 applicable legal requirements. 

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

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

280 ground-water banking programs, surface water storage programs, and other similar programs 

281 utilizing Project Water or other water furnished pursuant to this Contract conducted within the 

282 Contractor’s Boundaries which are consistent with applicable State law and result in use consistent 

283 with Federal Reclamation law will be allowed; Provided, That any direct recharge program(s) is 

284 (are) described in the Contractor’s water conservation plan submitted pursuant to Article 26 of this 

285 Contract; Provided, further, That such water conservation plan demonstrates sufficient lawful uses 

286 exist in the Contractor’s Boundaries so that using a long-term average, the quantity of Delivered 
Contract No. 14-06-200-8222-LTR1 

12

287 Water is demonstrated to be reasonable for such uses and in compliance with Federal Reclamation 

288 law. Ground-water recharge programs, ground-water banking programs, surface water storage 

289 programs, and other similar programs utilizing Project Water or other water furnished pursuant to 

290 this Contract conducted outside the Contractor’s Boundaries may be permitted upon written 

291 approval of the Contracting Officer, which approval will be based upon environmental 

292 documentation, Project Water rights, and Project operational concerns. The Contracting Officer 

293 will address such concerns in regulations, policies, or guidelines. 

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

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

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

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

298 which evidences in excess of 21 years of diversions for irrigation and/or M&I purposes of the 

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

300 developing an appropriate baseline for biological assessment(s) prepared pursuant to the ESA, and 

301 any other needed environmental review. Nothing herein shall be construed to prevent the 

302 Contractor from challenging or seeking judicial relief in a court of competent jurisdiction with 

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

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

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

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

307 the Contract Total under Article 3 of this Contract during the Year without adversely impacting 

308 other Project Contractors. At the request of the Contractor, the Contracting Officer will consult 

309 with the Contractor prior to making such a determination. If the Contracting Officer determines 

310 that Project Water, or other water available to the Project, can be made available to the Contractor, 

311 the Contracting Officer will announce the availability of such water and shall so notify the 

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

313 and other Project Contractors capable of taking such water to determine the most equitable and 
Contract No. 14-06-200-8222-LTR1 

13

314 efficient allocation of such water. If the Contractor requests the delivery of any quantity of such 

315 water, the Contracting Officer shall make such water available to the Contractor in accordance with 

316 applicable statutes, regulations, guidelines, and policies. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

337 That the Contracting Officer retains the right to object to the substance of the Contractor’s position 

338 in such a proceeding; Provided further, That in such proceedings the Contracting Officer shall 

339 recognize the Contractor has a legal right under the terms of this Contract to use Project Water. 
Contract No. 14-06-200-8222-LTR1 

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340 TIME FOR DELIVERY OF WATER

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

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

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

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

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

346 Made Available will be made. The Contracting Officer shall provide forecasts of Project operations 

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

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

349 Officer shall provide the Contractor with the updated Recent Historic Average. 

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

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

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

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

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

355 for the Year commencing on such March 1. 

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

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

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

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

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

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

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

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

364 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

366 Contract shall be delivered to the Contractor at approved turnouts on the Canal Facilities and any 
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367 additional point or points of delivery either on Project facilities or another location or locations 

368 mutually agreed to in writing by the Contracting Officer and the Contractor. The United States 

369 shall furnish such power as may be necessary to pump Project Water at the existing Tehama-Colusa 

370 Canal side pumping plants and at existing relift stations at heads and elevations sufficient to irrigate 

371 by gravity all areas within the Contractor’s Boundaries below elevation 300 (MSL). 

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

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

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

375 Contractor at specific turnouts established pursuant to subdivision (a) of this Article. The parties 

376 acknowledge that it may be necessary from time to time to shut down some or all of the Canal 

377 Facilities for maintenance or emergencies. Except in the case of emergency, the Contracting 

378 Officer shall consult with the Contractor to schedule the shut down at such times and for such 

379 duration as will allow for the work to be accomplished completely and efficiently, and with a 

380 minimum of disruption of water service to the Contractor. In this regard, shut downs will, to the 

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

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

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

384 The Contractor shall not deliver Project Water to land outside the Contractor’s Boundaries unless 

385 approved in advance by the Contracting Officer. 

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

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

388 States or the Operating Non-Federal Entity/Entities at the point or points of delivery established 

389 pursuant to subdivision (a) of this Article. Upon the request of either party to this Contract, the 

390 Contracting Officer shall investigate, or cause to be investigated by the responsible Operating 

391 Non-Federal Entity/Entities, the accuracy of such measurements and shall take any necessary steps 

392 to adjust any errors appearing therein. For any period of time when accurate measurements have 

393 not been made, the Contracting Officer shall consult with the Contractor and the responsible 
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394 Operating Non-Federal Entity/Entities prior to making a final determination of the quantity 

395 delivered for that period of time. 

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

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

398 of Water Delivered to the Contractor pursuant to this Contract beyond the delivery points specified 

399 in subdivision (a) of this Article. The Contractor shall indemnify the United States, its officers, 

400 employees, agents, and assigns on account of damage or claim of damage of any nature whatsoever 

401 for which there is legal responsibility, including property damage, personal injury, or death arising 

402 out of or connected with the control, carriage, handling, use, disposal, or distribution of such Water 

403 Delivered beyond such delivery points, except for any damage or claim arising out of (i) acts or 

404 omissions of the Contracting Officer or any of its officers, employees, agents, or assigns, including 

405 the Operating Non-Federal Entity/Entities, with the intent of creating the situation resulting in any 

406 damage or claim, (ii) willful misconduct of the Contracting Officer or any of its officers, 

407 employees, agents, or assigns, including the Operating Non-Federal Entity/Entities, (iii) negligence 

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

409 Operating Non-Federal Entity/Entities, or (iv) damage or claims resulting from a malfunction of 

410 facilities owned and/or operated by the United States or responsible Operating Non-Federal 

411 Entity/Entities. 

412 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S BOUNDARIES

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

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

415 purposes within the Contractor’s Boundaries is measured at each agricultural turnout and such water 

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

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

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

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

420 cost to the United States. The Contractor shall use the information obtained from such water 
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421 measuring devices or water measuring methods to ensure its proper management of the water, to 

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

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

424 provided for in Article 26 of this Contract. Nothing herein contained, however, shall preclude the 

425 Contractor from establishing and collecting any charges, assessments, or other revenues authorized 

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

427 in the annual report described in subdivision (c) of Article 26. 

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

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

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

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

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

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

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

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

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

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

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

439 Contracting Officer notifies the Contractor that the measuring devices or methods are inadequate, 

440 the parties shall within 60 days following the Contracting Officer‘s response, negotiate in good faith 

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

442 measuring methods as required by the Contracting Officer to ensure compliance with subdivision 

443 (a) of this Article. 

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

445 Boundaries after the effective date of this Contract shall also comply with the measurement 

446 provisions described in subdivision (a) of this Article. 
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447 (d) The Contractor shall inform the Contracting Officer and the State of 

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

449 within the Contractor’s Boundaries during the previous Year. 

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

Non-Federal Entity on or before the 20th 451 calendar day of each month of the quantity of Irrigation 

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

453 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

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

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

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

460 provisions of this Contract. Payments shall be made by cash transaction, electronic funds transfer, 

461 or any other mechanism as may be agreed to in writing by the Contractor and the Contracting 

462 Officer. The Rates, Charges, and Tiered Pricing Component applicable to the Contractor upon 

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

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

465 Tiered Pricing Component as follows: 

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

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

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

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

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

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

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

473 Year, and such notification shall revise Exhibit “B.” 
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474 (2) Prior to October 1 of each Calendar Year, the Contracting Officer 

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

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

477 Rates are based. The Contractor shall be allowed not less than two months to review and comment 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

497 unless and until an advance payment at the Rates then in effect for such additional Project Water is 

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

499 the quantities of Water Delivered during each Year pursuant to this Contract shall be made as soon 

500 as practicable but no later than April 30th of the following Year, or 60 days after the delivery of 
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501 Project Water carried over under subdivision (g) of Article 3 of this Contract if such water is not 

502 delivered by the last day of February. 

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

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

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

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

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

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

509 report for the subject month prepared by the Operating Non-Federal Entity/Entities or, if there is no 

510 Operating Non-Federal Entity/Entities, by the Contracting Officer. The water delivery report shall 

511 be deemed a bill for the payment of Charges and the applicable Tiered Pricing Component for 

512 Water Delivered. Adjustment for overpayment or underpayment of Charges shall be made through 

513 the adjustment of payments due to the United States for Charges for the next month. Any amount to 

514 be paid for past due payment of Charges and the Tiered Pricing Component shall be computed 

515 pursuant to Article 20 of this Contract. 

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

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

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

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

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

521 (a) of this Article. 

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

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

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

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

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

527 regulations, and the then current Project ratesetting policies for M&I Water or Irrigation Water. 
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528 (h) The Contracting Officer shall keep its accounts pertaining to the 

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

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

531 Contracting Officer shall, each Year upon request of the Contractor, provide to the Contractor a 

532 detailed accounting of all Project and Contractor expense allocations, the disposition of all Project 

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

534 and the Contractor shall enter into good faith negotiations to resolve any discrepancies or disputes 

535 relating to accountings, reports, or information. 

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

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

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

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

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

541 to modify the mechanisms, policies, and procedures for any of those purposes while this Contract is 

542 in effect without amending this Contract. 

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

544 exceed 80 percent of the Contract Total, then before the end of the month following the month of 

545 delivery the Contractor shall make an additional payment to the United States equal to the 

546 applicable Tiered Pricing Component. The Tiered Pricing Component for the amount of Water 

547 Delivered in excess of 80 percent of the Contract Total, but less than or equal to 90 percent of the 

548 Contract Total, shall equal one-half of the difference between the Rate established under 

549 subdivision (a) of this Article and the Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, 

550 whichever is applicable. The Tiered Pricing Component for the amount of Water Delivered which 

551 exceeds 90 percent of the Contract Total shall equal the difference between (i) the Rate established 

552 under subdivision (a) of this Article and (ii) the Irrigation Full Cost Water Rate or M&I Full Cost 

553 Water Rate, whichever is applicable. For all Water Delivered pursuant to subdivision (a) of Article 

554 3 of this Contract which is in excess of 80 percent of the Contract Total, this increment shall be 
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555 deemed to be divided between Irrigation Water and M&I Water in the same proportion as actual 

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

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

558 may request and receive an exemption from such Tiered Pricing Components for Project Water 

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

560 quantifiable habitat values for waterfowl in fields where the water is used and the crops are 

561 produced; Provided, That the exemption from the Tiered Pricing Component for Irrigation Water 

562 shall apply only if such habitat values can be assured consistent with the purposes of the CVPIA 

563 through binding agreements executed with or approved by the Contracting Officer prior to use of 

564 such water. 

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

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

567 Contractor transfers to others but shall not include Project Water transferred to the Contractor, nor 

568 shall it include the additional water provided to the Contractor under the provisions of subdivision 

569 (f) of Article 3 of this Contract. 

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

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

572 the Project, as those terms are used in the then-current Project ratesetting policies, and interest, 

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

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

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

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

577 change. 

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

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

580 upward or downward to reflect the changed costs, if any, incurred by the Contracting Officer in the 

581 delivery of the transferred Project Water to the transferee’s point of delivery in accordance with the 
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582 then applicable Project ratesetting policy. If the Contractor is receiving lower Rates and Charges 

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

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

585 shall be the Contractor’s Rates and Charges and will not be adjusted to reflect the Contractor’s 

586 inability to pay. 

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

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

589 (n) With respect to the Rates for M&I Water, the Contractor asserts that it is not 

590 legally obligated to repay any Project deficits claimed by the United States to have accrued as of the 

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

592 Contractor does not waive any legal rights or remedies that it may have with respect to such 

593 disputed issues. Notwithstanding the execution of this Contract, and payments made hereunder, the 

594 Contractor may challenge in the appropriate administrative or judicial forums: (1) the existence, 

595 computation, or imposition of any deficit charges accruing during the term of the Existing Contract 

596 and any preceding interim renewal contracts, if applicable; (2) interest accruing on any such 

597 deficits; (3) the inclusion of any such deficit charges or interest in the Rates; (4) the application by 

598 the United States of payments made by the Contractor under its Existing Contract and any interim 

599 renewal contracts, if applicable; and (5) the application of such payments in the Rates. The 

600 Contracting Officer agrees that the Contractor shall be entitled to the benefit of any administrative 

601 or judicial ruling in favor of any other Project M&I contractor on any of these issues, and credits for 

602 payments heretofore made, Provided, That the basis for such ruling is applicable to the Contractor. 

603 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

606 liability therefor. 
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607 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

616 include, as appropriate, an analysis of ground-water impacts and economic and social effects, 

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

618 transferee. 

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

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

621 area and to allow the Contractor to participate in an accelerated water transfer program during the 

622 term of this Contract, the Contracting Officer shall prepare, as appropriate, all necessary 

623 environmental documentation including, but not limited to, documents prepared pursuant to NEPA 

624 and ESA, analyzing annual transfers within such geographical areas and the Contracting Officer 

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

626 the environmental documentation, such transfers addressed in such documentation shall be 

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

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

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

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

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

632 historically transferred within the same geographical area. 
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633 (c) For a water transfer to qualify under subdivision (b) of this Article, such 

634 water transfer must: (i) be for irrigation purposes for lands irrigated within the previous 3 years, for 

635 M&I use, ground-water recharge, ground-water banking, similar ground-water activities, surface 

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

637 established cropland, wildlife refuges, ground-water basins or M&I use; (ii) occur within a single 

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

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

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

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

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

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

644 applies to the Contractor as a transferor or transferee of Project Water, the Contracting Officer 

645 acknowledges that the Contractor is within a county, watershed, or other area of origin, as those 

646 terms are utilized under California law, of water that constitutes the natural flow of the Sacramento 

647 River and its tributaries above the confluence of the American and Sacramento Rivers. 

648 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

651 the Contractor arising out of this Contract then due and payable. Overpayments of more than 

652 $1,000 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such 

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

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

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

656 use of any of the Project Water supply provided for herein. All credits and refunds of overpayments 

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

658 refund such overpayment in response to the notice to the Contractor that it has finalized the 

659 accounts for the Year in which the overpayment was made. 
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660 (b) All advances for miscellaneous costs incurred for work requested by the 

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

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

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

664 will be billed for the additional costs pursuant to Article 25. 

665 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

670 Contract. 

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

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

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

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

675 as feasible the Contracting Officer or Operating Non-Federal Entity will give the Contractor due 

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

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

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

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

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

681 such discontinuance or reduction. 

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

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

684 the Contractor’s Boundaries; Provided, That this shall not be construed as claiming for the United 

685 States any right to seepage or return flow being put to reasonable and beneficial use pursuant to this 
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686 Contract within the Contractor’s Boundaries by the Contractor or those claiming by, through, or 

687 under the Contractor. 

688 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

693 determination as soon as practicable. 

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

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

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

697 (a) of Article 18 of this Contract, no liability shall accrue against the United States or any of its 

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

699 (c) In any Year in which there may occur a shortage for any of the reasons 

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

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

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

703 3404 of the CVPIA) and renewals thereof, to receive Project Water consistent with the contractual 

704 obligations of the United States. 

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

706 with the then-existing Project M&I Water Shortage Policy. Such policy shall be amended, 

707 modified, or superseded only through a public notice and comment procedure. 

708 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

712 the delivery of Irrigation Water by the Contractor to Eligible Lands. 
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713 RULES AND REGULATIONS

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

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

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

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

718 WATER AND AIR POLLUTION CONTROL

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

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

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

722 QUALITY OF WATER

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

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

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

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

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

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

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

730 Delivered to the Contractor pursuant to this Contract. 

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

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

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

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

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

736 facilities or Project Water provided by the Contractor within the Contractor’s Boundaries. 

737 WATER ACQUIRED BY THE CONTRACTOR

738 OTHER THAN FROM THE UNITED STATES

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

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

741 Contract may be simultaneously transported through the same distribution facilities of the 
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742 Contractor subject to the following: (i) if the facilities utilized for commingling Irrigation Water 

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

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

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

746 Water must be established through the certification requirements as specified in the Acreage 

747 Limitation Rules and Regulations (43 CFR Part 426); (iii) the water requirements of Eligible Lands 

748 within the Contractor’s Boundaries can be established and the quantity of Irrigation Water to be 

749 utilized is less than or equal to the quantity necessary to irrigate such Eligible Lands; and (iv) if the 

750 facilities utilized for commingling Irrigation Water and non-Project water are/were constructed with 

751 funds made available pursuant to Federal Reclamation law, the non-Project water will be subject to 

752 the acreage limitation provisions of Federal Reclamation law, unless the Contractor pays to the 

753 United States the incremental fee described in 43 CFR 426.15. In determining the incremental fee, 

754 the Contracting Officer will calculate annually the cost to the Federal Government, including 

755 interest, on storing or delivering non-Project water, which for purposes of this Contract shall be 

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

757 total irrigable acreage within the Contractor’s Boundaries. The incremental fee per acre is the 

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

759 Act of October 12, 1982 (96 Stat. 1263). Such incremental fee will be charged to each acre of 

760 excess or full cost land within the Contractor’s Boundaries that receives non-Project water through 

761 Federally financed or constructed facilities. The incremental fee calculation methodology will 

762 continue during the term of this Contract absent the promulgation of a contrary Reclamation-wide 

763 rule, regulation, or policy adopted after the Contractor has been afforded the opportunity to review 

764 and comment on the proposed rule, regulation, or policy. If such rule, regulation, or policy is 

765 adopted it shall supercede this provision. 

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

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

768 facilities, subject to the completion of appropriate environmental documentation, with the approval 
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769 of the Contracting Officer and the execution of any contract determined by the Contracting Officer 

770 to be necessary, consistent with the following provisions: 

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

772 and deliver said water to lands within the Contractor’s Boundaries, including Ineligible Lands, 

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

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

775 use power policy, if such Project use power policy, each as amended, modified, or superceded from 

776 time to time. 

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

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

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

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

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

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

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

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

785 defend and indemnify the United States and the Operating Non-Federal Entity, and their respective 

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

787 indirect, resulting from the acts of the Contractor, its officers’, employees’, agents’ or assigns’, 

788 act(s) in (i) extracting or diverting non-Project water from any source, or (ii) diverting such non789 Project water into Project facilities. 

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

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

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

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

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

795 the facilities declared to be available by the Contracting Officer for conveyance and transportation 
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796 of non-Project water prior to any such remaining capacity being made available to non-Project 

797 contractors. 

798 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

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

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

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

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

810 laws of the United States and of the State of California, and the rules and regulations promulgated 

811 by the Secretary of the Interior. Such determinations shall be made in consultation with the 

812 Contractor to the extent reasonably practicable. 

813 COORDINATION AND COOPERATION

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

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

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

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

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

819 Project Water supply, the allocation of Project Water supply, and Project financial matters 

820 including, but not limited to, budget issues. The communication, coordination, and cooperation 

821 provided for hereunder shall extend to all provisions of this Contract. Each party shall retain 
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822 exclusive decision making authority for all actions, opinions, and determinations to be made by the 

823 respective party. 

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

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

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

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

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

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

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

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

832 intent: 

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

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

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

836 improve water supply, water quality, and reliability. 

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

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

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

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

841 of California to seek improved water resource management. 

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

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

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

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

846 activities, and other issues as appropriate. 

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

848 the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 
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849 Contracting Officer’s ability to communicate, coordinate, and cooperate with the Contractor or 

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

851 safety, or the physical integrity of structures or facilities. 

852 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

856 When a payment becomes sixty (60) days delinquent, the Contractor shall pay an administrative 

857 charge to cover additional costs of billing and processing the delinquent payment. When a payment 

858 is delinquent ninety (90) days or more, the Contractor shall pay an additional penalty charge of six 

859 (6%) percent per year for each day the payment is delinquent beyond the due date. Further, the 

860 Contractor shall pay any fees incurred for debt collection services associated with a delinquent 

861 payment. 

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

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

864 or the interest rate of one-half of one (0.5%) percent per month prescribed by Section 6 of the 

865 Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate shall be determined 

866 as of the due date and remain fixed for the duration of the delinquent period. 

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

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

869 accrued interest, and finally to the overdue payment. 

870 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

885 with which it has a collective bargaining agreement or other contract or understanding, a notice, to 
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886 be provided by the Contracting Officer, advising the said labor union or workers' representative of 

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

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

889 employment. 

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

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

892 the Secretary of Labor. 

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

894 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

895 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

896 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with such 

897 rules, regulations, and orders. 

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

899 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

900 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

901 ineligible for further Government contracts in accordance with procedures authorized in said 

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

903 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

904 otherwise provided by law. 

905 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

906 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

907 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

908 provisions will be binding upon each subcontractor or vendor. The Contractor will take such action 

909 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

910 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

911 That in the event the Contractor becomes involved in, or is threatened with, litigation with a 

912 subcontractor or vendor as a result of such direction, the Contractor may request the United States 

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

914 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

915 22. (a) The obligation of the Contractor to pay the United States as provided in this 

916 Contract is a general obligation of the Contractor notwithstanding the manner in which the 

917 obligation may be distributed among the Contractor's water users and notwithstanding the default of 

918 individual water users in their obligations to the Contractor. 

919 (b) The payment of charges becoming due hereunder is a condition precedent to 

920 receiving benefits under this Contract. The United States shall not make water available to the 

921 Contractor through Project facilities during any period in which the Contractor may be in arrears in 

922 the advance payment of water rates due the United States. The Contractor shall not furnish water 

923 made available pursuant to this Contract for lands or parties which are in arrears in the advance 

924 payment of water rates levied or established by the Contractor. 
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925 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

926 obligation to require advance payment for water rates which it levies. 

927 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

928 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 

929 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

930 Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights laws, 

931 as well as with their respective implementing regulations and guidelines imposed by the U.S. 

932 Department of the Interior and/or Bureau of Reclamation. 

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

934 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be 

935 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

936 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

937 Contractor agrees to immediately take any measures necessary to implement this obligation, 

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

939 (c) The Contractor makes this agreement in consideration of and for the purpose 

940 of obtaining any and all Federal grants, loans, contracts, property discounts, or other Federal 

941 financial assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, 

942 including installment payments after such date on account of arrangements for Federal financial 

943 assistance which were approved before such date. The Contractor recognizes and agrees that such 

944 Federal assistance will be extended in reliance on the representations and agreements made in this 

945 Article, and that the United States reserves the right to seek judicial enforcement thereof. 

946 PRIVACY ACT COMPLIANCE

947 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) 

948 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et 

949 seq.) in maintaining Landholder acreage certification and reporting records, required to be 

950 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation Reform 

951 Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

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

953 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees responsible 

954 for maintaining the certification and reporting records referenced in (a) above are considered to be 

955 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

956 (c) The Contracting Officer or a designated representative shall provide the 

957 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau of 

958 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

959 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

960 contained in the Landholder's certification and reporting records. 

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

962 Reclamation to be the System Manager who shall be responsible for making decisions on denials 
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963 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

964 authorized to grant requests by individuals for access to their own records. 

965 (e) The Contractor shall forward promptly to the System Manager each proposed 

966 denial of access under 43 CFR 2.64; and each request for amendment of records filed under 43 CFR 

967 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

968 information and records necessary to prepare an appropriate response to the requester. These 

969 requirements do not apply to individuals seeking access to their own certification and reporting 

970 forms filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the 

971 Privacy Act as a basis for the request. 

972 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

973 25. In addition to all other payments to be made by the Contractor pursuant to this 

974 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

975 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

976 direct cost incurred by the United States for work requested by the Contractor associated with this 

977 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

978 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

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

980 administration. 

981 WATER CONSERVATION

982 26. (a) Prior to the delivery of water provided from or conveyed through Federally 

983 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

984 implementing an effective water conservation and efficiency program based on the Contractor's 

985 water conservation plan that has been determined by the Contracting Officer to meet the 

986 conservation and efficiency criteria for evaluating water conservation plans established under 

987 Federal law. The water conservation and efficiency program shall contain definite water 

988 conservation objectives, appropriate economically feasible water conservation measures, and time 

989 schedules for meeting those objectives. Continued Project Water delivery pursuant to this Contract 

990 shall be contingent upon the Contractor’s continued implementation of such water conservation 

991 program. In the event the Contractor's water conservation plan or any revised water conservation 

992 plan completed pursuant to subdivision (d) of Article 26 of this Contract have not yet been 
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993 determined by the Contracting Officer to meet such criteria, due to circumstances which the 

994 Contracting Officer determines are beyond the control of the Contractor, water deliveries shall be 

995 made under this Contract so long as the Contractor diligently works with the Contracting Officer to 

996 obtain such determination at the earliest practicable date, and thereafter the Contractor immediately 

997 begins implementing its water conservation and efficiency program in accordance with the time 

998 schedules therein. 

999 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1000 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

1001 the Best Management Practices identified by the time frames issued by the California Urban Water 

1002 Conservation Council for such M&I Water unless any such practice is determined by the 

1003 Contracting Officer to be inappropriate for the Contractor. 

1004 (c) The Contractor shall submit to the Contracting Officer a report on the status 

1005 of its implementation of the water conservation plan on the reporting dates specified in the then 

1006 existing conservation and efficiency criteria established under Federal law. 

1007 (d) At five-year intervals, the Contractor shall revise its water conservation plan 

1008 to reflect the then-current conservation and efficiency criteria for evaluating water conservation 

1009 plans established under Federal law and submit such revised water management plan to the 

1010 Contracting Officer for review and evaluation. The Contracting Officer will then determine if the 

1011 water conservation plan meets Reclamation’s then-current conservation and efficiency criteria for 

1012 evaluating water conservation plans established under Federal law. 

1013 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

1014 shall be described in the Contractor’s water conservation plan. 

1015 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1016 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

1017 Contract shall not be applicable to or affect non-Project water or water rights now owned or 

1018 hereafter acquired by the Contractor or any user of such water within the Contractor’s Boundaries. 

1019 Any such water shall not be considered Project Water under this Contract. In addition, this Contract 
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1020 shall not be construed as limiting or curtailing any rights which the Contractor or any water user 

1021 within the Contractor’s Boundaries acquires or has available under any other contract pursuant to 

1022 Federal Reclamation law. 

1023 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

1024 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1025 and responsibility for funding a portion of the costs of such O&M, have been transferred to the 

1026 Operating Non-Federal Entity by separate agreement between the United States and the Operating 

1027 Non-Federal Entity. That separate agreement shall not interfere with or affect the rights or 

1028 obligations of the Contractor or the United States hereunder. 

1029 (b) The Contracting Officer has previously notified the Contractor in writing that 

1030 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to the 

1031 Operating Non-Federal Entity, and therefore, the Contractor shall pay directly to the Operating 

1032 Non-Federal Entity, or to any successor approved by the Contracting Officer under the terms and 

1033 conditions of the separate agreement between the United States and the Operating Non-Federal 

1034 Entity described in subdivision (a) of this Article, all rates, charges, or assessments of any kind, 

1035 including any assessment for reserve funds, which the Operating Non-Federal Entity or such 

1036 successor determines, sets, or establishes for the O&M of the portion of the Project facilities 

1037 operated and maintained by the Operating Non-Federal Entity or such successor. Such direct 

1038 payments to the Operating Non-Federal Entity or such successor shall not relieve the Contractor of 

1039 its obligation to pay directly to the United States the Contractor’s share of the Project Rates, 

1040 Charges, and Tiered Pricing Component(s) except to the extent the Operating Non-Federal Entity 

1041 collects payments on behalf of the United States in accordance with the separate agreement 

1042 identified in subdivision (a) of this Article. 

1043 (c) For so long as the O&M of any portion of the Project facilities serving the 

1044 Contractor is performed by the Operating Non-Federal Entity, or any successor thereto, the 

1045 Contracting Officer shall adjust those components of the Rates for Water Delivered under this 
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1046 Contract representing the cost associated with the activity being performed by the Operating 

1047 Non-Federal Entity or its successor. 

1048 (d) In the event the O&M of the Project facilities operated and maintained by 

1049 the Operating Non-Federal Entity is re-assumed by the United States during the term of this 

1050 Contract, the Contracting Officer shall so notify the Contractor, in writing, and present to the 

1051 Contractor a revised Exhibit “B” which shall include the portion of the Rates to be paid by the 

1052 Contractor for Project Water under this Contract representing the O&M costs of the portion of 

1053 such Project facilities which have been re-assumed. The Contractor shall, thereafter, in the 

1054 absence of written notification from the Contracting Officer to the contrary, pay the Rates, 

1055 Charges, and Tiered Pricing Component(s) specified in the revised Exhibit “B” directly to the 

1056 United States in compliance with Article 7 of this Contract. 

1057 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1058 29. The expenditure or advance of any money or the performance of any obligation of 

1059 the United States under this Contract shall be contingent upon appropriation or allotment of 

1060 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

1061 obligations under this Contract. No liability shall accrue to the United States in case funds are 

1062 not appropriated or allotted. 

1063 BOOKS, RECORDS, AND REPORTS

1064 30. (a) The Contractor shall establish and maintain accounts and other books and 

1065 records pertaining to administration of the terms and conditions of this Contract, including: the 

1066 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1067 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

1068 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

1069 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

1070 Officer may require. Subject to applicable Federal laws and regulations, each party to this 

1071 Contract shall have the right during office hours to examine and make copies of the other party's 

1072 books and records relating to matters covered by this Contract. 

1073 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

1074 books, records, or other information shall be requested from the Contractor by the Contracting 

1075 Officer unless such books, records, or information are reasonably related to the administration or 
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1076 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1077 time within which to provide the requested books, records, or information. 

1078 (c) At such time as the Contractor provides information to the Contracting 

1079 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided 

1080 to the Operating Non-Federal Entity. 

1081 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1082 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1083 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1084 therein shall be valid until approved in writing by the Contracting Officer. 

1085 (b) The assignment of any right or interest in this Contract by either party 

1086 shall not interfere with the rights or obligations of the other party to this Contract absent the 

1087 written concurrence of said other party. 

1088 (c) The Contracting Officer shall not unreasonably condition or withhold his 

1089 approval of any proposed assignment. 

1090 SEVERABILITY

1091 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

1092 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

1093 an association or other form of organization whose primary function is to represent parties to 

1094 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1095 enforceability of a provision included in this Contract and said person, entity, association, or 

1096 organization obtains a final court decision holding that such provision is legally invalid or 

1097 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

1098 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

1099 final court decision identify by mutual agreement the provisions in this Contract which must be 

1100 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

1101 The time periods specified above may be extended by mutual agreement of the parties. Pending 

1102 the completion of the actions designated above, to the extent it can do so without violating any 

1103 applicable provisions of law, the United States shall continue to make the quantities of Project 
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1104 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

1105 Contract which were not found to be legally invalid or unenforceable in the final court decision. 

1106 RESOLUTION OF DISPUTES

1107 33. Should any dispute arise concerning any provisions of this Contract, or the 

1108 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

1109 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

1110 Officer referring any matter to Department of Justice, the party shall provide to the other party 

1111 30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

1112 required where a delay in commencing an action would prejudice the interests of the party that 

1113 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

1114 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

1115 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

1116 United States may have. 

1117 OFFICIALS NOT TO BENEFIT

1118 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1119 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1120 manner as other water users or landowners. 

1121 CHANGES IN CONTRACTOR’S BOUNDARIES 

1122 35. (a) While this Contract is in effect, no change may be made in the 

1123 Contractor’s Boundaries, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

1124 or otherwise, except upon the Contracting Officer's written consent. 

1125 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1126 Officer will notify the Contractor of any additional information required by the Contracting 

1127 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

1128 schedule for timely completion of the process. Such process will analyze whether the proposed 

1129 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

1130 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

1131 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 
Contract No. 14-06-200-8222-LTR1 

42

1132 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

1133 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

1134 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

1135 be paid in accordance with Article 25 of this Contract. 

1136 FEDERAL LAWS

1137 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1138 the validity or application in connection with the performance of the terms and conditions of this 

1139 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1140 the terms and conditions of this Contract unless and until relief from application of such Federal 

1141 law or regulation to the implementing provision of the Contract is granted by a court of 

1142 competent jurisdiction. 

1143 NOTICES

1144 37. Any notice, demand, or request authorized or required by this Contract shall be 

1145 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1146 delivered to the Area Manager, Bureau of Reclamation, Northern California Area Office, 

1147 16349 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalf of the United 

1148 States, when mailed, postage prepaid, or delivered to the Board of Directors of the Westside 

1149 Water District, 5005 State Highway 20, Williams, California 95987. The designation of the 

1150 addressee or the address may be changed by notice given in the same manner as provided in this 

1151 Article for other notices. 

1152 CONFIRMATION OF CONTRACT

1153 38. The Contractor, after the execution of this Contract, shall promptly seek to secure 

1154 a decree of a court of competent jurisdiction of the State of California, confirming the execution 

1155 of this Contract. The Contractor shall furnish the United States a certified copy of the final 

1156 decree, the validation proceedings, and all pertinent supporting records of the court approving 

1157 and confirming this Contract, and decreeing and adjudging it to be lawful, valid, and binding on 

1158 the Contractor. 
Contract No. 14-06-200-8222-LTR1 

43

1159 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

1160 the day and year first above written. 

1161 THE UNITED STATES OF AMERICA 

1162 By: ______________________________________ 

1163 Regional Director, Mid-Pacific Region 

1164 Bureau of Reclamation 

1165 WESTSIDE WATER DISTRICT 

1166 By: ______________________________________ 

1167 President of the Board of Directors 

1168 Attest: 

1169 By: _______________________________ 

1170 Secretary of the Board of Directors 

1171 (I:\LTRC\LTRC Drafts\04-19-2004-01 Westside WD Final LTRC Draft Contract, -8222-LTR1) 
Contract No. 14-06-200-8222-LTR1 

EXHIBIT A

[Map or Description of Boundaries]
Contract No. 14-06-200-8222-LTR1 

EXHIBIT B 

Water Rates and Charges for Contract No. 14-06-200-8222-LTR1

Westside Water District - Tehama-Colusa Canal

(Note: Rates and Charges shown are for 2003) 

 Calculated 

 Payment Capacity 1/ 

 Irrigation M&I Irrigation 

COST OF SERVICE RATES:

Capital Rates $ 10.10 3/ $ 0.00 

O&M Rates: 

Water Marketing 6.28 6.28 

Storage 5.57 5.57 

Direct Pumping 0.21 0.21 

 

Deficit Rates: 

Interest Bearing 1.17 1.17 

CFO/PFR Adjustment Rate 4/ 1.03 1.03

TOTAL $24.36 3/ $14.26

FULL-COST RATES:

Section 202(3) Rate is applicable to a 

 Qualified Recipient or to a Limited 

 Recipient receiving irrigation water 

 on or before October 1, 1981. $45.21 $45.21

Section 205(a)(3) Rate is 

 applicable to a Limited Recipient that 

 did not receive irrigation water on or 

 before October 1, 1981. $54.80 $54.80

CHARGES UNDER P.L. 102-575 TO THE

RESTORATION FUND 2/ 

 Restoration Payments (3407(d)(2)(A)) $ 7.69 $15.38 $ 0.00 

1/ Established pursuant to the results of the Payment Capacity Analysis for the Tehama-Colusa Water 

Users Association Service Area as announced by letter dated _______________. 

2/ Restoration fund charges are payments in addition to the water rates and were determined pursuant to 

Title XXXIV of Public Law 102-575. Restoration fund charges are on a fiscal year basis (10/1 - 9/30). 

3/ To be provided as needed. Contractor does not currently receive M&I water and is not projected to 

take any in the near future. 

4/ Chief Financial Officer (CFO) adjustment and Provision for Replacement (PFR) expense is being 

distributed over a 5-year period beginning in FY 2003 for those contractors that requested those costs be 

deferred.