R. O. Draft 12/15-2003 

Contract No. 

14-06-200-4961A-R-1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

CONTRACT BETWEEN THE UNITED STATES AND

LAKE CALIFORNIA PROPERTY OWNERS ASSOCIATION, INC.,

DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES,

SETTLING WATER RIGHTS DISPUTES AND

 PROVIDING FOR PROJECT WATER 

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals ................................................................................ 2-3 

1 Definitions................................................................................................ 3-6 

2 Term of Settlement Contract........................................................................7 

3 Water to be Furnished to Contractor........................................................ 7-9 

4 Return Flow .................................................................................................9 

5 Constraints on the Availability of Water ...................................................10 

6 Integrated Water Management and Partnerships .......................................10 

7 Use of Water Furnished to Contractor.......................................................11 

8 Rate and Method of Payment for Water .............................................. 11-15 

9 Agreement on Water Quantities........................................................... 15-18 

10 Measurement of Water...............................................................................18 

11 Rules and Regulations................................................................................19 

12 General Obligation – Benefits Conditioned 

 Upon Payment.........................................................................................19 

13 Charges for Delinquent Payments .............................................................19 

14 Quality of Water ........................................................................................20 

15 Water and Air Pollution Control................................................................20 

16 Equal Opportunity................................................................................ 20-21 

17 Compliance With Civil Rights Laws 

 and Regulations.......................................................................................21 

18 Mingling of Contractor’s Project and 

 Non-Project Water ..................................................................................21 
Contract No. 14-06-200-4961A-R-1 

Table of Contents - continued

Article No. Title Page No. 

19 Books, Records, and Reports.....................................................................21 

20 Change of Place of Use or Organization....................................................22 

21 Consolidation of Contracting Entities........................................................22 

22 Notices .......................................................................................................22 

23 Assignment Limited – Successors and 

 Assigns Obligated ...................................................................................22 

24 Officials Not to Benefit..............................................................................22 

25 Contingent Upon Appropriation or 

 Allotment of Funds .................................................................................22 

26 Confirmation of Settlement Contract.........................................................23 

27 Unavoidable Groundwater Percolation......................................................23 

28 Privacy Act Compliance ............................................................................23 

29 Water Conservation ............................................................................. 24-25 

30 Opinions and Determinations ....................................................................25 

31 Contractor to Pay Certain Miscellaneous Costs................................... 25-26 

32 Waiver of Default ......................................................................................26 

33 Contract Assignment or Termination Upon Transfer of Land............. 26-27 

34 Termination................................................................................................27 

Signature Page ...........................................................................................28 

Exhibit A Schedule of Monthly Diversions of Water 

Exhibit B Map of Contractor’s Ownership 

Exhibit C Unit Duty 

Exhibit D Water Rates and Charges 
1 R. O. Draft 12/15-2003 

2 Contract No. 

3 14-06-200-4961A-R1 

4 UNITED STATES 

5 DEPARTMENT OF THE INTERIOR 

6 BUREAU OF RECLAMATION 

7 Central Valley Project, California 

8 CONTRACT BETWEEN THE UNITED STATES AND

9 LAKE CALIFORNIA PROPERTY OWNERS ASSOCIATION, INC.,

10 DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES,

11 SETTLING WATER RIGHTS DISPUTES AND

12 PROVIDING FOR PROJECT WATER 

 

13 THIS CONTRACT, hereinafter referred to as “Settlement Contract,” is entered into by 

14 THE UNITED STATES OF AMERICA, hereinafter referred to as the United States, made this _____ 

15 day of ____________________, 2003, pursuant to the applicable authority granted to it generally in 

16 the Act of June 17, 1902 (32 Stat. 388), and acts amendatory or supplementary thereto, including, but 

17 not limited to, the Acts of August 26, 1937 (50 Stat. 844), as amended and supplemented, August 4, 

18 1939 (53 Stat. 1187), as amended and supplemented, including but not limited to Sections 9 and 14 

19 thereto, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1262), 

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

21 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, and LAKE 

22 CALIFORNIA PROPERTY OWNERS ASSOCIATION, INC., hereinafter referred to as the 

23 Contractor, a corporation, acting pursuant to Sections 12003 and 12004 of the California Water Code, 

24 with its principal place of business in California; 

25 WITNESSETH, that:
Contract No. 14-06-200-4961A-R-1 

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1 EXPLANATORY RECITALS

[1 2 st] WHEREAS, the United States has constructed and is operating the Central Valley 

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

[2 4 nd] WHEREAS, the Contractor has rights to divert, is diverting, and will continue to 

5 divert for reasonable beneficial use, water from the natural flow of the Sacramento River and 

6 tributaries thereto, that would have been flowing therein if the Central Valley Project were not in 

7 existence; and 

[3 8 rd] WHEREAS, the construction and operation of the integrated and coordinated Central 

9 Valley Project has changed and will further change the regimen of the Sacramento, American, San 

10 Joaquin, and Trinity Rivers and the Sacramento-San Joaquin Delta from unregulated flow to 

11 regulated flow; and 

[4 12 th] WHEREAS, the United States has rights to divert, is diverting, and will continue to 

13 divert waters from said Rivers and said Delta in connection with the operation of said Central Valley 

14 Project; and 

[5 15 th] WHEREAS, the Contractor and the United States had a dispute over the respective 

16 rights of the parties to divert and use water from the regulated flow of the Sacramento River which 

17 threatened to result in litigation, and as a means to settle that dispute entered into Contract No. 14-06-

18 200-4961A, as amended, hereinafter referred to as the Existing Contract, which established terms for 

19 the delivery to the Contractor of Central Valley Project Water, and the quantities of Base Supply the 

20 United States and the Contractor agreed may be diverted by the Contractor from the Sacramento 

21 River pursuant to such contract; and 

[6 22 th] WHEREAS, the United States and the Contractor disagree with respect to the 

23 authority of the United States to change the quantities of Base Supply and/or Project Water specified 

24 as available for diversion in this Settlement Contract from the quantities specified in the Existing 
Contract No. 14-06-200-4961A-R-1 

3

1 Contract, and other issues related thereto. That dispute was the subject of litigation in a lawsuit 

2 entitled Glenn-Colusa Irrigation District, et al. v. United States, et al. [Civ. No. S-01-1816 GEB/JFM 

3 (E.D. Cal.)], but that litigation was dismissed, without prejudice, pursuant to a stipulation of 

4 dismissal filed by the parties thereto on August 29, 2002. Notwithstanding that dismissal, the 

5 Contractor and the United States enter into this Settlement Contract to renew the Existing Contract, 

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

7 California; and

[7 8 th] WHEREAS, to assure the Contractor of the enjoyment and use of the regulated flow 

9 of the said Rivers and the Delta, and to provide for the economical operation of the Central Valley 

10 Project by, and the reimbursement to, the United States for expenditures made for said Project. 

11 NOW, THEREFORE, in consideration of the performance of the herein contained provisions, 

12 conditions, and covenants, it is agreed as follows:

13 DEFINITIONS

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

15 the term: 

16 (a) “Base Supply” shall mean the quantity of Surface Water established in Articles 

17 3 and 5 which may be diverted by the Contractor from the Sacramento River each month during the 

18 period April through October of each Year without payment to the United States for such quantities 

19 diverted; 

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

21 Sacramento River Basinwide Water Management Plan, dated _______, developed by Glenn Colusa 

22 Irrigation District, Maxwell Irrigation District, Natomas Central Mutual Water Company, Pelger 

23 Mutual Water Company, Princeton-Codora Glenn Irrigation District, Provident Irrigation District, 
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1 Reclamation District 108, Sutter Mutual Water Company, Anderson-Cottonwood Irrigation District, 

2 Meridian Farms Water Company, Reclamation District 1004, and the U.S. Bureau of Reclamation; 

3 (c) “Charges” shall mean the payments for Project Water that the Contractor is 

4 required to pay to the United States in addition to the “Rates” specified in this Settlement Contract. 

5 The Contracting Officer will, on an annual basis, determine the extent of these Charges. The type 

6 and amount of each Charge shall be specified in Exhibit D; 

7 (d) “Contract Total” shall mean the sum of the Base Supply and Project Water 

8 available for diversion by the Contractor for the period April 1 through October 31; 

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

10 eventualities exists: 

11 (1) The forecasted full natural inflow to Shasta Lake for the current Water 

12 Year, as such forecast is made by the United States on or before February 15 and reviewed as 

13 frequently thereafter as conditions and information warrant, is equal to or less than 3.2 million 

14 acre-feet; or 

15 (2) The total accumulated actual deficiencies below 4 million acre-feet in 

16 the immediately prior Water Year or series of successive prior Water Years each of which had 

17 inflows of less than 4 million acre-feet, together with the forecasted deficiency for the current Water 

18 Year, exceed 800,000 acre-feet. 

19 For the purpose of determining a Critical Year, the computation of inflow to Shasta 

20 Lake shall be performed in a manner that considers the extent of upstream development above Shasta 

21 Lake during the year in question, and shall be used as the full natural flow to Shasta Lake. In the 

22 event that major construction has occurred or occurs above Shasta Lake after September 1, 1963, and 

23 which has materially altered or alters the regimen of the stream systems contributing to Shasta Lake, 

24 the computed inflow to Shasta Lake used to define a Critical Year will be adjusted to eliminate the 
Contract No. 14-06-200-4961A-R-1 

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1 effect of such material alterations. After consultation with the State of California, the National 

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

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

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

5 hereunder; 

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

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

8 (g) “Lake” shall mean the artificial recreational lake within the service area of the 

9 Contractor having a storage capacity of about 985 acre-feet and a surface area of about 105 acres, 

10 generally as shown on Exhibit B attached hereto and made a part hereof;

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

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

13 (i) “Project Water” shall mean all Surface Water diverted or scheduled to be 

14 diverted each month during the period April through October of each Year by the Contractor from the 

15 Sacramento River which is in excess of the Base Supply. The United States recognizes the right of 

16 the Contractor to make arrangements for acquisition of water from projects of others than the United 

17 States for delivery through the Sacramento River and tributaries subject to written agreement between 

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

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

20 (j) “Rates” shall mean the payments for Project Water determined annually by the 

21 Contracting Officer in accordance with the then current applicable water ratesetting policies for the 

22 Project, as described in subdivision (a) of Article 8 of this Settlement Contract; 
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1 (k) “Secretary” or “Contracting Officer” shall mean the Secretary of the Interior, a 

2 duly appointed successor, or an authorized representative acting pursuant to any authority of the 

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

4 (l) “Storage Season” shall mean the period commencing with September 1 of 1 

5 year and extending through June 14 of the next year; 

6 (m) “Surface Water” shall mean only those waters that are considered as surface 

7 water under California law; 

8 (n) “Water-use Season” shall mean the period commencing with June 15 and 

9 extending through August 31 of the same year; 

10 (o) “Water Year” shall mean the period commencing with October 1 of 1 year and 

11 extending through September 30 of the next; and 

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

13 TERM OF SETTLEMENT CONTRACT

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

15 effect until and including March 31, 2044: Provided, that under terms and conditions mutually 

16 agreeable to the parties hereto, renewals may be made for successive periods not to exceed 40 years 

17 each. The terms and conditions of each renewal shall be agreed upon not later than 1 year prior to the 

18 expiration of the then existing Settlement Contract. 

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

20 pertaining thereto, upon written request by the Contractor of the Secretary made not later than 1 year 

21 prior to the expiration of this Settlement Contract, whenever, account being taken of the amount then 

22 credited to the costs of construction of water supply works, the remaining amount of construction 

23 costs of water supply work which is properly assignable for ultimate return by the Contractor as 

24 established by the Secretary of the Interior pursuant to (3) of Section 1 of Public Law 643 (70 Stat. 
Contract No. 14-06-200-4961A-R-1 

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1 483), probably can be repaid to the United States within the term of a contract under subsection 9(d) 

2 of the 1939 Reclamation Project Act (53 Stat. 1187), the relevant portions of this Settlement Contract 

3 may be converted to a contract under said subsection 9(d) upon terms and conditions mutually 

4 agreeable to the United States and the Contractor. The Secretary shall make a determination 10 years 

5 after the date of execution of this Settlement Contract, and every 5 years thereafter, of whether a 

6 conversion to a contract under said subsection 9(d) can be accomplished pursuant to Public Law 643. 

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

8 rights and benefits under Public Law 643. 

9 WATER TO BE FURNISHED TO CONTRACTOR

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

11 Contractor is hereby entitled and authorized to divert from the Sacramento River at the locations 

12 shown in Exhibit A, for beneficial use within the area delineated on Exhibit B, (both Exhibits are 

13 attached hereto and made a part hereof), the Contract Total designated in Exhibit A, or any revision 

14 thereof. 

15 (b) The Contractor may divert water from the Sacramento River at a rate not to 

16 exceed 25 cubic feet per second from the Sacramento River into and through the Lake and back to the 

17 Sacramento River for purposes of maintaining satisfactory water quality and temperature for 

18 offsetting evaporation losses in order to keep the Lake full for maximum recreational and fish culture 

19 purposes, and for refilling the Lake during the Storage Season if emptied for emergency or for 

20 maintenance purposes. During the Storage Season, all of such diversions shall be deemed to 

21 constitute Base Supply. During the Water-use Season, there shall be no increase in storage of the 

22 Lake, and it shall be deemed the quantity of water diverted but not returned to the Sacramento River, 

23 and thus lost by evaporation from the Lake, is Project Water in the quantity of 200 acre-feet per 

24 Water-use Season. 
Contract No. 14-06-200-4961A-R-1 

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1 (c) Project Water furnished by the United States under this Settlement Contract 

2 shall be used by the Contractor only for offsetting evaporation losses from the Lake unless the 

3 Contractor finds it desirable to fill the Lake initially during the Water-use Season. In this event the 

4 water diverted to fill or refill the Lake shall be considered to be Project Water: Provided, that any 

5 such diversion for storage during the Water-use Season shall be subject to prior, written approval by 

6 the Contracting Officer. 

7 (d) No sale, transfer, exchange, or other disposal of any of the Contract Total 

8 designated in Exhibit A or the right to the use thereof for use on land other than that shown on 

9 Exhibit B shall be made by the Contractor without first obtaining the written consent of the 

10 Contracting Officer. Such consent will not be unreasonably withheld and a decision will be rendered 

11 in a timely manner. For short-term actions that will occur within 1 year or less, the decision will be 

12 rendered within 30 days after receipt of a complete written proposal. For long-term actions that will 

13 occur in a period longer than 1 year, the decision will be rendered within 90 days after receipt of a 

14 complete written proposal. For a proposal to be deemed complete by the Contracting Officer, it must 

15 comply with all provisions required by State and Federal law, including information sufficient to 

16 enable the Contracting Officer to comply with the National Environmental Policy Act, the 

17 Endangered Species Act, and applicable rules or regulations then in effect; Provided that, such 

18 consent does not authorize the use of Federal facilities to facilitate or effectuate the sale, transfer, 

19 exchange or other disposal of Base Supply. Such use of Federal facilities will be the subject of a 

20 separate agreement to be entered into between the Contractor and Reclamation. 

21 (e) For the purpose of determining whether Section 3405(a)(1)(M) of the CVPIA 

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

23 acknowledges that the Contractor is within a county, watershed, or other area of origin, as those terms 
Contract No. 14-06-200-4961A-R-1 

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1 are utilized under California law, of water that constitutes the natural flow of the Sacramento River 

2 and its tributaries above the confluence of the American and Sacramento Rivers. 

3 (f) The United States assumes no responsibility for and neither it nor its officers, 

4 agents, or employees shall have any liability for or on account of: 

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

6 (2) The control, carriage, handling, use, disposal, or distribution of water 

7 diverted by the Contractor outside the facilities constructed and then being operated and maintained 

8 by or on behalf of the United States; 

9 (3) Claims of damage of any nature whatsoever, including but not limited 

10 to, property loss or damage, personal injury, or death arising out of or connected with the control, 

11 carriage, handling, use, disposal, or distribution of said water outside of the hereinabove referred to 

12 facilities; and 

13 (4) Any damage whether direct or indirect arising out of or in any manner 

14 caused by a shortage of water whether such shortage be on account of errors in operation, drought, or 

15 unavoidable causes. 

16 RETURN FLOW

17 4. Nothing herein shall be construed as an abandonment or a relinquishment by the 

18 United States of any right it may have to the use of waste, seepage, and return flow water derived 

19 from water diverted by the Contractor hereunder and which escapes or is discharged beyond the 

20 boundaries of the lands shown on Exhibit B; Provided, that this shall not be construed as claiming for 

21 the United States any right to such water which is recovered by the Contractor pursuant to California 

22 law from within the boundaries of the lands shown on Exhibit B, and which is being used pursuant to 

23 this Settlement Contract for municipal, industrial or domestic use or underground storage for the 

24 benefit of the lands shown on Exhibit B by the Contractor. 
Contract No. 14-06-200-4961A-R-1 

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1 CONSTRAINTS ON THE AVAILABILITY OF WATER

2 5. (a) In a Critical Year, the Contracting Officer reserves the right to reduce the 

3 Contract Total shown on Exhibit A to the Contractor: Provided, that the Contractor may divert from 

4 the Sacramento River not in excess of 75 percent of the Contract Total shown on Exhibit A, subject 

5 to the installation of measurement equipment satisfactory to the Contracting Officer. The Contractor 

6 shall install, operate, and maintain this equipment at the Contractor’s expense. The Contractor shall 

7 submit, by April 1 of that Critical Year, a written schedule to the Contracting Officer indicating the 

8 Contract Total to be diverted by the Contractor during each month of that Critical Year under this 

9 Settlement Contract. 

10 (b) The amount of any overpayment by the Contractor shall, at its option, be 

11 refunded or credited upon amounts to become due to the United States from the Contractor under the 

12 provisions hereof in the ensuing Year. To the extent of such deficiency such adjustment of 

13 overpayment shall constitute the sole remedy of the Contractor. 

14 INTEGRATED WATER MANAGEMENT AND PARTNERSHIPS

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

16 beneficial use of water for their mutual benefit. As a consequence, the United States and the 

17 Contractor will work in partnership and with others within the Sacramento Valley, including other 

18 Contractors, to facilitate the better integration within the Sacramento Valley of all water supplies 

19 including, but not limited to, the better management and integration of surface water and 

20 groundwater, the development and better utilization of surface water storage, the effective utilization 

21 of waste, seepage and return flow water, and other operational and management options that may be 

22 identified in the future. 
Contract No. 14-06-200-4961A-R-1 

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1 USE OF WATER FURNISHED TO CONTRACTOR

2 7. (a) Project Water furnished to the Contractor pursuant to this Settlement Contract 

3 shall not be delivered or furnished by the Contractor for any purposes other than municipal, 

4 industrial, and domestic purposes without the written consent of the Contracting Officer. 

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

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

7 Contract undertaken pursuant to Section 7 of the Endangered Species Act of 1973, as amended, that 

8 are within the Contractor’s legal authority to implement. The Contractor shall comply with the 

9 limitations or requirements imposed by environmental documentation applicable to the Contractor 

10 and within its legal authority to implement. The Existing Contract, which evidences in excess of 40 

11 years of diversions, for municipal, industrial, and domestic uses, of the quantities of water provided 

12 for in Article 3, and the underlying water rights of the Contractor will be considered in developing an 

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

14 Act, and in any other needed environmental review. Nothing herein shall be construed to prevent the 

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

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

17 RATE AND METHOD OF PAYMENT FOR WATER

18 8. (a) The Contractor shall make payments to the United States as provided in this 

19 Article for the total quantity of Project Water shown on Exhibit A each Year. 

20 Such payments shall be at Rates and Charges established in accordance with: (i) the 

21 Secretary’s then current ratesetting policies for the Project; and (ii) applicable Reclamation law and 

22 associated rules and regulations, or policies. The Rates and Charges applicable to the Contractor 

23 upon execution of this Settlement Contract are set forth in Exhibit D, as may be revised annually. 
Contract No. 14-06-200-4961A-R-1 

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1 The Secretary’s ratesetting policies for the Project shall be amended, modified, or superseded only 

2 through a public notice and comment procedure. 

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

4 follows: 

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

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

7 October 1, of the current Year, through September 30, of the following Year, and the basis for such 

8 estimate. The Contractor shall be allowed not less than 2 months to review and comment on such 

9 estimates. On or before September 15 of each Year, the Contracting Officer shall notify the 

10 Contractor in writing of the Charges to be in effect during the period October 1 of the current Year, 

11 through September 30, of the following Year, and such notification shall revise Exhibit D. 

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

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

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

15 allowed not less than 2 months to review and comment on such computations and cost allocations. 

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

17 Rates to be in effect for the upcoming Year, and such notification shall revise Exhibit D. 

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

19 manner: 

20 (1) With respect to Rates and Charges, on or before May 1 of each Year, 

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

22 (a) of this Article and the remainder shall be paid on or before July 1 or such later date or dates as 

23 may be specified by the United States in a written notice to the Contractor. 
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1 (2) The amount to be paid on or before May 1 of each Year shall be based 

2 on a written estimate, provided to the Contracting Officer by the Contractor on or before April 1 of 

3 each Year, of the total area to be irrigated during the ensuing irrigation season. 

4 (3) The amount to be paid on or before July 1 shall be equal to the 

5 difference between the amount paid on May 1 and the total amount due for the Year, based on the 

6 total area actually irrigated prior to July 1. 

7 (4) In the event of initial filling or of refilling the Lake during the 

8 Water-use Season as provided in Article 3(c), the Project Water diverted to fill or refill the Lake 

9 shall be paid for in advance of such diversion at the Rates and Charges shown in Exhibit D. 

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

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

12 (1) All revenues received by the United States from the Contractor relating 

13 to the delivery of Project Water or the delivery of non-Project Water through Project facilities shall 

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

15 regulations, and the then current Project ratesetting policies for municipal, industrial and domestic 

16 water. 

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

18 of the financial terms and conditions of its long-term water service and Settlement Contracts, in 

19 accordance with applicable Federal standards, so as to reflect the application of Project costs and 

20 revenues. The Contracting Officer shall, each Year upon request of the Contractor, provide to the 

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

22 all Project and Contractor revenues, and a summary of all water delivery information. The 

23 Contracting Officer and the Contractor shall enter into good faith negotiations to resolve any 

24 discrepancies or disputes relating to accountings, reports, or information. 
Contract No. 14-06-200-4961A-R-1 

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

2 Settlement Contract is their mutual goal. Recognizing that experience has demonstrated that 

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

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

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

6 policies, and procedures for any of those purposes while this Settlement Contract is in effect without 

7 amendment of this Settlement Contract. 

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

9 policies for the Project will be established to recover only reimbursable operation and maintenance 

10 (including any deficits) and capital costs of the Project, as those terms are used in the then-current 

11 Project ratesetting policies, and interest, where appropriate, except in instances where a minimum 

12 Rate is applicable in accordance with the relevant Project ratesetting policy. Proposed changes of 

13 significance in practices which implement the ratesetting policies for the Project will not be 

14 implemented until the Contracting Officer has provided the Contractor an opportunity to discuss the 

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

16 validity of Rates and Charges imposed pursuant to this Settlement Contract, including but not limited 

17 to operation and maintenance expenses and operation and maintenance deficits, in an appropriate 

18 administrative or judicial proceeding. 

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

20 Project Water transferred, exchanged, or otherwise disposed of, by the Contractor shall be the 

21 Contractor’s Rates adjusted upward or downward to reflect the changed costs of delivery (if any) of 

22 the transferred, exchanged, or otherwise disposed of Project Water to the transferee’s point of 

23 delivery in accordance with the then-current ratesetting policies for the Project. Except as provided 

24 in subsection 3407(d)(2)(A) of the CVPIA, the Charges for Project Water transferred, exchanged, or 
Contract No. 14-06-200-4961A-R-1 

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1 otherwise disposed of, by the Contractor shall be the Contractor’s Charges specified in Exhibit D. If 

2 the Contractor is receiving lower Rates and Charges because of inability to pay and is transferring, 

3 exchanging, or otherwise disposing of Project Water to another entity whose Rates and Charges are 

4 not adjusted due to inability to pay, the Rates and Charges for transferred, exchanged, or otherwise 

5 disposed of Project Water shall be the Contractor’s Rates and Charges unadjusted for ability to pay. 

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

7 Officer is authorized to adjust determinations of ability to pay every 5 years. 

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

9 shall be made at the office of the Bureau of Reclamation, Mid-Pacific Region, File No. 11546, P.O. 

10 Box 6000, San Francisco, California 94160-1546, or at such other place as the United States may 

11 designate in a written notice to the said Contractor. Payments shall be made by cash transaction, 

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

13 Officer. In event there should be a default in the payment of the amount due, the delinquent payment 

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

15 its said obligation by, on account of, or notwithstanding, as the case may be its failure, refusal, or 

16 neglect to divert the quantity of Project Water shown on Exhibit A. 

17 AGREEMENT ON WATER QUANTITIES

18 (a) During the term of this Settlement Contract and any renewals thereof: 

19 (1) It shall constitute full agreement as between the United States and the 

20 Contractor as to the quantities of water and the allocation thereof between Base Supply and Project 

21 Water which may be diverted by the Contractor from the Sacramento River for beneficial use on the 

22 land shown on Exhibit B which said diversion, use, and allocation shall not be disturbed so long as 

23 the Contractor shall fulfill all of its obligations hereunder; 
Contract No. 14-06-200-4961A-R-1 

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1 (2) Neither party shall claim any right against the other in conflict with the 

2 provisions of Article 9(a)(1) hereof. 

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

4 against others than the United States or of the United States against any person other than the 

5 Contractor: Provided, however, that in the event the Contractor, the United States, or any other 

6 person shall become a party to a general adjudication of rights to the use of water of the Sacramento 

7 River system, this Settlement Contract shall not jeopardize the rights or position of either party hereto 

8 or of any other person and the rights of all such persons in respect to the use of such water shall be 

9 determined in such proceedings the same as if this Settlement Contract had not been entered into, and 

10 if final judgment in any such general adjudication shall determine that the rights of the parties hereto 

11 are different from the rights as assumed herein, the parties shall negotiate an amendment to give 

12 effect to such judgment. In the event the parties are unable to agree on an appropriate amendment 

13 they shall, within 60 days of determining that there is an impasse, employ the services of a neutral 

14 mediator, experienced in resolving water rights disputes, to assist in resolving the impasse. The cost 

15 of the mediation will be shared equally. A failure to reach agreement on an amendment within 60 

16 days of the end of mediation will cause the immediate termination of this Settlement Contract. 

17 (c) In the event that the California State Water Resources Control Board or a court 

18 of competent jurisdiction issues a final decision or order modifying the terms and conditions of the 

19 water rights of either party to this Settlement Contract in order to impose Bay-Delta water quality 

20 obligations, the Contractor and the United States shall promptly meet to determine whether or not to 

21 modify any of the terms of this Settlement Contract to comply with the final decision or order, 

22 including, but not limited to, the applicability of the rescheduling charge in Article 3(c)(1) of this 

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

24 parties are not able to reach agreement regarding either the need to modify this Settlement Contract 
Contract No. 14-06-200-4961A-R-1 

17

1 or the manner in which this Settlement Contract is to be modified, the parties shall promptly retain a 

2 neutral mediator, experienced in resolving water right disputes, to assist the parties in resolving their 

3 dispute. The cost of the mediator shall be shared equally. In the event that either of the parties to this 

4 Settlement Contract determines that the parties will not be able to develop mutually-agreeable 

5 modification(s) to this Settlement Contract even with the assistance of a mediator, either of the 

6 parties to this Settlement Contract may attempt to resolve the impasse by seeking appropriate judicial 

7 relief including, but not limited to, filing a general adjudication of the rights to the use of water in the 

8 Sacramento River system. The foregoing provisions of this sub-article shall only apply to the 

9 incremental obligations contained within a final decision or order of the State Water Resources 

10 Control Board that reflects a modification to the obligations imposed in State Water Resources 

11 Control Board Revised Water Rights Decision 1641 dated March 15, 2000, and its associated 1995 

12 Water Quality Control Plan which, taken together, will be considered the baseline for the application 

13 of the provisions of this sub-article. 

14 (d) In the event this Settlement Contract terminates, the rights of the parties to 

15 thereafter divert and use water shall exist as if this Settlement Contract had not been entered into; and 

16 the fact that as a compromise settlement of a controversy as to the respective rights of the parties to 

17 divert and use water and the yield of such rights during the term hereof, this Settlement Contract 

18 places a limit on the Contract Total to be diverted annually by the Contractor during the Settlement 

19 Contract term and segregates it into Base Supply and Project Water shall not jeopardize the rights or 

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

21 Settlement Contract terminates. It is further agreed that the Contractor at all times will first use water 

22 to the use of which it is entitled by virtue of its own water rights, and neither the provisions of this 

23 Settlement Contract, action taken thereunder, nor payments made thereunder to the United States by 

24 the Contractor shall be construed as an admission that any part of the water used by the Contractor 
Contract No. 14-06-200-4961A-R-1 

18

1 during the term of this Settlement Contract was in fact water to which it would not have been entitled 

2 under water rights owned by it nor shall receipt of payments thereunder by the United States from the 

3 Contractor be construed as an admission that any part of the water used by the Contractor during the 

4 term of this Settlement Contract was in fact water to which it would have been entitled under water 

5 rights owned by it. 

6 MEASUREMENT OF WATER

7 10. (a) All water diverted by the Contractor from the Sacramento River will be 

8 diverted at the existing point or points of diversion shown on Exhibit A or at such other points as may 

9 be mutually agreed upon in writing by the Contracting Officer and the Contractor. 

10 (b) The right of ingress to and egress from all points of diversion is hereby granted 

11 to all authorized employees of the United States. The Contractor also hereby grants to the United 

12 States the right to install, operate, maintain, and replace measuring equipment on diversion or 

13 carriage facilities at each point of diversion as the Contracting Officer deems necessary. 

14 (c) The Contractor shall not modify, alter, remove, or replace diversion facilities 

15 or do any other act which would alter the effectiveness or accuracy of the measuring equipment 

16 installed by the United States or its representatives unless and until the Contracting Officer has been 

17 notified with due diligence and has been given an opportunity to modify such measuring equipment 

18 in such manner as may be necessary or appropriate. In the event of an emergency the Contractor 

19 shall notify the United States within a reasonable time thereafter as to the existence of the emergency 

20 and the nature and extent of such modification, alteration, removal, or replacement of diversion 

21 facilities. 

22 (d) The Contractor shall pay the United States for the costs to repair, relocate, or 

23 replace measurement equipment when the Contractor modifies, alters, removes, or replaces diversion 

24 or carriage facilities. 
Contract No. 14-06-200-4961A-R-1 

19

1 RULES AND REGULATIONS

2 11. The parties agree that the delivery of Project Water for municipal and industrial use or 

3 use of Federal facilities pursuant to this Settlement Contract is subject to Federal Reclamation law, 

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

5 law. 

6 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

7 12. (a) The obligation of the Contractor to pay the United States as provided in this 

8 Settlement Contract is a general obligation of the Contractor notwithstanding the manner in which the 

9 obligation may be distributed among the Contractor's water users and notwithstanding the default of 

10 individual water users in their obligations to the Contractor. 

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

12 receiving benefits under this Settlement Contract. The United States shall not make water available 

13 to the Contractor through Project facilities during any period in which the Contractor may be in 

14 arrears in the advance payment of water Rates due the United States. The Contractor shall not 

15 furnish water made available pursuant to this Settlement Contract for lands or parties which are in 

16 arrears in the advance payment of water rates levied or established by the Contractor. 

17 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

18 obligation to require advance payment for water Rates which it levies. 

19 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

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

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

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

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

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

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

32 remain fixed for the duration of the delinquent period. 

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

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

35 accrued interest, and finally to the overdue payment. 
Contract No. 14-06-200-4961A-R-1 

20

1 QUALITY OF WATER

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

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

4 highest level reasonably attainable as determined by the Contracting Officer. The United States does 

5 not warrant the quality of water and is under no obligation to construct or furnish water treatment 

6 facilities to maintain or better the quality of water. 

7 WATER AND AIR POLLUTION CONTROL

8 15. The Contractor, in carrying out this Settlement Contract, shall comply with all 

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

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

11 local authorities. 

12 EQUAL OPPORTUNITY

13 16. During the performance of this Settlement Contract, the Contractor agrees as follows: 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

31 employment. 
Contract No. 14-06-200-4961A-R-1 

21

1 (d) The Contractor will comply with all provisions of Executive Order No. 11246 

2 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders of the Secretary 

3 of Labor. 

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

5 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

6 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting Officer 

7 and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, 

8 regulations, and orders. 

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

10 clauses of this Settlement Contract or with any of the said rules, regulations, or orders, this Settlement 

11 Contract may be canceled, terminated, or suspended, in whole or in part, and the Contractor may be 

12 declared ineligible for further Government contracts in accordance with procedures authorized in said 

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

14 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

15 otherwise provided by law. 

16 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

17 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

18 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

19 provisions will be binding upon each subcontractor or vendor. The Contractor will take such action 

20 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

21 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, that 

22 in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor 

23 or vendor as a result of such direction, the Contractor may request the United States to enter into such 

24 litigation to protect the interests of the United States. 

25 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

26 17. Omitted. 

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

28 18. Omitted. 

29 BOOKS, RECORDS, AND REPORTS

30 19. The Contractor shall establish and maintain accounts and other books and records 

31 pertaining to administration of the terms and conditions of this Settlement Contract, including: the 

32 Contractor's financial transactions, water supply data, and Project land and right-of-way agreements; 

33 the water users' land-use (crop census), land ownership, land-leasing and water use data; and other 

34 matters that the Contracting Officer may require. Reports thereon shall be furnished to the 

35 Contracting Officer in such form and on such date or dates as the Contracting Officer may require. 

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

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

38 relating to matters covered by this Settlement Contract. 
Contract No. 14-06-200-4961A-R-1 

22

1 CHANGE OF PLACE OF USE

2 20. Unless the written consent of the United States is first obtained no change shall be 

3 made in the place of water use shown on Exhibit B. 

4 CONSOLIDATION OF CONTRACTING ENTITIES

5 21. Omitted 

6 NOTICES

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

8 shall be deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

9 delivered to the Area Manager, Northern California Area Office, Bureau of Reclamation, 16349 

10 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalf of the United States, when 

11 mailed, postage prepaid, or delivered to the Board of Directors, Lake California Property Owners 

12 Association, Inc., P. O. Box 5067, Cottonwood, California 96022. The designation of the addressee 

13 or the address may be changed by notice given in the same manner as provided in this Article for 

14 other notices. 

15 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

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

17 successors and assigns of the parties hereto, but no assignment or transfer of this Settlement Contract 

18 or any right or interest therein shall be valid until approved in writing by the Contracting Officer. 

19 (b) The assignment of any right or interest in this Settlement Contract by either 

20 party shall not interfere with the rights or obligations of the other party to this Settlement Contract 

21 absent the written concurrence of said other party. 

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

23 approval of any proposed assignment. 

24 OFFICIALS NOT TO BENEFIT

25 24. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

26 Contractor shall benefit from this Settlement Contract other than as a water user or landowner in the 

27 same manner as other water users or landowners. 

28 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS

29 25. The expenditure or advance of any money or the performance of any obligation of the 

30 United States under this Settlement Contract shall be contingent upon appropriation or allotment of 

31 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

32 obligations under this Settlement Contract. No liability shall accrue to the United States in case funds 

33 are not appropriated or allotted. 
Contract No. 14-06-200-4961A-R-1 

23

1 CONFIRMATION OF SETTLEMENT CONTRACT

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

3 secure a decree of a court of competent jurisdiction of the State of California, if appropriate, 

4 confirming the execution of this Settlement Contract. The Contractor shall furnish the United States 

5 a certified copy of the final decree, the validation proceedings, and all pertinent supporting records of 

6 the court approving and confirming this Settlement Contract, and decreeing and adjudging it to be 

7 lawful, valid, and binding on the Contractor. This Settlement Contract shall not be binding on the 

8 United States until such final decree has been secured. 

9 UNAVOIDABLE GROUNDWATER PERCOLATION

10 27. Omitted 

11 PRIVACY ACT COMPLIANCE

12 28. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) (the 

13 Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et seq.) in 

14 maintaining Landholder acreage certification and reporting records, required to be submitted to the 

15 Contractor for compliance with Sections 206 and 228 of the Reclamation Reform Act of 1982 (96 

16 Stat. 1266), and pursuant to 43 CFR 426.18. 

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

18 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees responsible 

19 for maintaining the certification and reporting records referenced in (a) above are considered to be 

20 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

21 (c) The Contracting Officer or a designated representative shall provide the 

22 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau of 

23 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

24 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

25 contained in the Landholder's certification and reporting records. 

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

27 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

28 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

29 authorized to grant requests by individuals for access to their own records. 

30 (e) The Contractor shall forward promptly to the System Manager each proposed 

31 denial of access under 43 CFR 2.64; and each request for amendment of records filed under 43 CFR 

32 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

33 information and records necessary to prepare an appropriate response to the requester. These 

34 requirements do not apply to individuals seeking access to their own certification and reporting forms 

35 filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the Privacy 

36 Act as a basis for the request. 
Contract No. 14-06-200-4961A-R-1 

24

1 WATER CONSERVATION

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

3 an effective water conservation and efficiency program based on the Basin-Wide Water Management 

4 Plan and/or Contractor's water conservation plan that has been determined by the Contracting Officer 

5 to meet the conservation and efficiency criteria for evaluating water conservation plans established 

6 under Federal law. The water conservation and efficiency program shall contain definite water 

7 conservation objectives, appropriate economically feasible water conservation measures, and time 

8 schedules for meeting those objectives. Continued diversion of Project Water pursuant to this 

9 Settlement Contract shall be contingent upon the Contractor’s continued implementation of such 

10 water conservation program. In the event the Contractor's water conservation plan or any revised 

11 water conservation plan completed pursuant to subdivision (d) of Article 29 of this Settlement 

12 Contract have not yet been determined by the Contracting Officer to meet such criteria, due to 

13 circumstances which the Contracting Officer determines are beyond the control of the Contractor, 

14 Project Water deliveries shall be made under this Settlement Contract so long as the Contractor 

15 diligently works with the Contracting Officer to obtain such determination at the earliest practicable 

16 date, and thereafter the Contractor immediately begins implementing its water conservation and 

17 efficiency program in accordance with the time schedules therein. 

18 (b) The Contractor shall submit to the Contracting Officer a report on the status of 

19 its implementation of the water conservation plan on the reporting dates specified in the then existing 

20 conservation and efficiency criteria established under Federal law. 

21 (c) At 5-year intervals, the Contractor shall revise its water conservation plan to 

22 reflect the then current conservation and efficiency criteria for evaluating water conservation plans 

23 established under Federal law and submit such revised water management plan to the Contracting 

24 Officer for review and evaluation. The Contracting Officer will then determine if the water 
Contract No. 14-06-200-4961A-R-1 

25

1 conservation plan meets Reclamation’s then current conservation and efficiency criteria for 

2 evaluating water conservation plans established under Federal law. 

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

4 be described in the Contractor’s water conservation plan. 

5 OPINIONS AND DETERMINATIONS

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

7 upon the opinion or determination of either party to this Settlement Contract, said terms shall not be 

8 construed as permitting such action to be predicated upon arbitrary, capricious, or unreasonable 

9 opinions or determinations. Both parties, notwithstanding any other provisions of this Settlement 

10 Contract, expressly reserve the right to seek relief from and appropriate adjustment for any such 

11 arbitrary, capricious, or unreasonable opinion or determination. Each opinion or determination by 

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

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

14 under Federal law to any opinion or determination implementing a specific provision of Federal law 

15 embodied in statute or regulation. 

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

17 to administer this Settlement Contract that are consistent with the provisions of this Settlement 

18 Contract, the laws of the United States and of the State of California, and the rules and regulations 

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

20 the Contractor to the extent reasonably practicable. 

21 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

23 Settlement Contract, the Contractor shall pay to the United States, within 60 days after receipt of a 

24 bill and detailed statement submitted by the Contracting Officer to the Contractor for such specific 
Contract No. 14-06-200-4961A-R-1 

26

1 items of direct cost incurred by the United States for work requested by the Contractor associated 

2 with this Settlement Contract plus indirect costs in accordance with applicable Bureau of 

3 Reclamation policies and procedures. All such amounts referred to in this Article shall not exceed 

4 the amount agreed to in writing in advance by the Contractor. This Article shall not apply to costs for 

5 routine contract administration. 

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

7 Contractor pursuant to Article 31 of this Settlement Contract shall be adjusted to reflect the actual 

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

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

10 the Contractor will be billed for the additional costs pursuant to Article 31 of this Settlement 

11 Contract. 

12 WAIVER OF DEFAULT

13 32. The waiver by either party to this Settlement Contract as to any default shall not be 

14 construed as a waiver of any other default or as authority of the other party to continue such default 

15 or to make, do, or perform, or not to make, do, or perform, as the case may be, any act or thing which 

16 would constitute a default. 

17 CONTRACT ASSIGNMENT OR TERMINATION UPON TRANSFER OF LAND

18 33. (a) The rights and obligations of the Contractors may be transferred in connection 

19 with the transfer of title to the land or any portion thereof delineated on Exhibit B. 

20 (b) The Contractor shall notify the Contracting Officer in writing of any proposed 

21 transfer of this Settlement Contract. In addition, in the case of a partial assignment, the Contractors 

22 shall: 

23 (1) Designate the proportionate quantities of Base Supply and Project 

24 Water which they desire to assign; and 
Contract No. 14-06-200-4961A-R-1 

27

1 (2) Furnish the United States with a copy of the deed transferring title. 

2 (c) No transfer of this Settlement Contract shall be effective unless and until 

3 approved by the Contracting Officer, and, if approved, shall be effective from the date of such 

4 approval. 

5 (d) Upon mutual agreement between the United States and the Contractor, this 

6 Settlement Contract or a portion thereof may be terminated and the new landowner will have the 

7 privilege of entering into a Settlement Contract for water service for a proportionate share of the 

8 Contract Total. 

9 TERMINATION

10 34. This Settlement Contract will terminate upon mutual agreement of the parties prior to 

11 the end of the term or any renewal thereof. 
Contract No. 14-06-200-4961A-R-1 

28

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

2 as of the day and year first hereinabove written. 

3 THE UNITED STATES OF AMERICA 

4 By:_______________________________________ 

5 Regional Director, Mid-Pacific Region 

6 Bureau of Reclamation 

7 (SEAL) 

8 LAKE CALIFORNIA PROPERTY OWNERS 

9 ASSOCIATION, INC. 

10 By _______________________________________ 

11 _______________________________________ 

12 Title 

13 ATTEST: 

14 ________________________________ 

15 Secretary 

16 (I:\Sac River Drafts\12-15-03 Lake California Property Owners Assn., Inc., Final Draft with 

17 exhibits.doc) 
Contract No. 14-06-200-4961A-R-1 

Exhibit A 

Lake California Property Owners Association, Inc. 

Sacramento River 

SCHEDULE OF MONTHLY DIVERSIONS OF WATER

 Base Supply Project Water Contract Total 

 (acre-feet) (acre-feet) (acre-feet) 

 April 60 0 60

 May 100 0 100

 June 130 20 150

 July 90 80 170

 August 60 80 140

 September 90 20 110

 October 50 0 50

 

 Total 580 200 780

 

 Points of Diversion: 221.0R

 Dated:
Contract No. 14-06-200-4961A-R-1 

Exhibit B 

(Map to be inserted to identify area covered by contract) 

Lake California Property Owners Association, Inc. 

Sacramento River 
Contract No. 14-06-200-4961A-R-1 

Exhibit C 

Lake California Property Owners Association, Inc. 

Sacramento River 

Omitted
Contract No. 14-06-200-4961A-R-1 

Exhibit D 

Lake California Property Owners Association, Inc. 

Sacramento River 

WATER RATES AND CHARGES 

Note: Rates and Charges shown are 2003 rates. This exhibit will be updated prior to execution of 

the contract to reflect the Rates and Charges for 2004. 

 

COST OF SERVICE RATES: Per Acre Foot

Capital Rates 

 Storage $4.99 

O&M Rates: 

 Water Marketing $3.68 

 Storage $5.78 

Deficit Rates: 

 Interest Bearing $1.09 

CFO/PFR Adjustment Rate 1/ $2.33

 

 TOTAL RATES $17.87

CHARGES UNDER P.L. 102-575 TO THE 

RESTORATION FUND 2/ 

 Restoration Payments (3407(d)(2)(A)) $15.38

 TOTAL RATES AND CHARGES $33.25

1/ 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. 

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).