Irrigation and Other 

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

Feather WD Draft 6/25-2003 

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

Sac. Valley Division Draft 5/28-2003 

CVP Wide Draft 5/23-2003 

Contract No. 14-06-200-171-A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

AND

FEATHER WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM SACRAMENTO RIVER DIVISION

 Table of Contents

Article No. Title Page No.

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

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

 1 Definitions ................................................................................................................ 5-10 

 2 Term of Contract..................................................................................................... 10-13 

 3 Water to Be Made Available and Delivered to the Contractor............................... 13-18 

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

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

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

 7 Rates and Method of Payment for Water................................................................ 22-29 

 8 Non-Interest Bearing Operation and Maintenance Deficits .........................................29 

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

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

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

 12 Constraints on the Availability of Water ......................................................................32 

 13 Unavoidable Groundwater Percolation................................................................... 32-33 

 14 Rules and Regulations ..................................................................................................33 

 15 Water and Air Pollution Control...................................................................................33 

 16 Quality of Water ..................................................................................................... 33-34

 17 Water Acquired by the Contractor Other than from the United States................... 34-37
 Contract No. 14-06-200-171-A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 18 Opinions and Determinations ................................................................................. 37-38 

 19 Coordination and Cooperation................................................................................ 38-40 

 20 Charges for Delinquent Payments ................................................................................40 

 21 Equal Opportunity................................................................................................... 40-42 

 22 General Obligation--Benefits Conditioned upon Payment...........................................42 

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

 24 Privacy Act Compliance ...............................................................................................43 

 25 Contractor to Pay Certain Miscellaneous Costs ..................................................... 43-44 

 26 Water Conservation ................................................................................................ 44-45 

 27 Existing or Acquired Water or Water Rights.......................................................... 45-46 

 28 Operation and Maintenance by Operating Non-Federal Entity....................................46 

 29 Contingent on Appropriation or Allotment of Funds ...................................................46 

 30 Books, Records, and Reports.................................................................................. 46-47 

 31 Assignment Limited--Successors and Assigns Obligated ............................................47 

 32 Severability ............................................................................................................. 47-48 

 33 Resolution of Disputes..................................................................................................48

 34 Officials Not to Benefit.................................................................................................48 

 35 Changes in Contractor=s Service Area .................................................................... 48-49 

 36 Federal Laws.................................................................................................................49 

 37 Notices .................................................................................................................... 49-50 

 38 Confirmation of Contract..............................................................................................50 

 Signature Page ..............................................................................................................50 

 Exhibit A -- Map or Description of Contractor's Service Area 

 Exhibit B -- Rates and Charges 
Irrigation and Other 

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

Feather WD Draft 6/25-2003 

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

Sac. Valley Division Draft 5/28-2003 

CVP Wide Draft 5/23-2003 

Contract No. 14-06-200-171-A-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 FEATHER WATER DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM SACRAMENTO RIVER DIVISION

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

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

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

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

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

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

16 1992 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law, 

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

18 and FEATHER WATER DISTRICT, hereinafter referred to as the Contractor, a public agency of 

19 the State of California, duly organized, existing, and acting pursuant to the laws thereof; 

20 WITNESSETH, That: 
Contract No. 14-06-200-171-A-LTR1

2

21 EXPLANATORY RECITALS

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

23 Central Valley Project (Project), California, for diversion, storage, carriage, distribution and 

24 beneficial use, for flood control, irrigation, municipal, domestic, industrial, fish and wildlife 

25 mitigation, protection and restoration, generation and distribution of electric energy, salinity 

26 control, navigation and other beneficial uses, of waters of the Sacramento River, the 

27 American River, the Trinity River, and the San Joaquin River and their tributaries; and 

[2nd 28 ] WHEREAS, the Contractor has obtained from the State of California Water 

29 Resources Control Board a Permit 12094 pursuant to "Application No. 14803 to Appropriate 

30 Unappropriated Water" (hereinafter referred to as "Permit 12094") to appropriate water by 

31 direct diversion from the Feather River on the condition, among others, that no water shall 

32 be diverted until an agreement has been consummated between the Contractor and the 

33 United States providing for a concurrent exchange of water from the Project for water 

34 diverted under the permit to the extent necessary to supply the prior rights of the Sacramento 

35 River and the Sacramento-San Joaquin delta users; and 

[3rd 36 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

[4th 38 ] WHEREAS, the Contractor and the United States entered into Contract 

39 No. 14-06-200-171-A, dated June 26, 1962, which established terms for Project Water to be 

40 delivered in the Sacramento River for diversion by exchange from the Feather River by the 

41 Contractor through December 31, 1994; and 

[5th 42 ] WHEREAS, the Contractor and the United States have pursuant to 
Contract No. 14-06-200-171-A-LTR1

3

43 Subsection 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently 

44 entered into interim renewal contract(s) identified as Contract No(s). 14-06-200-171-A-IR1, 

45 14-06-200-171-A-IR2, 14-06-200-171-A-IR3, 14-06-200-171-A-IR4, and 14-06-200-171-A46 IR5, 14-06-200-171-A-IR6, 14-06-200-171-A-IR7, 14-06-200-171-A-IR8, and 14-06-200-171-

47 A-IR9, the current of which is hereinafter referred to as the Existing Contract, which provided 

48 for continued water service to the Contractor from March 1, 2004, through February 28, 2006; 

49 and 

[6th 50 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

51 Existing Contract following completion of appropriate environmental documentation, including 

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

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

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

[7th 55 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

[8th 57 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

59 of the State of California, for water service from the Project; and 

[9th 60 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

61 of its obligations under the Existing Contract; and 

[10th 62 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

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

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

65 Contracting Officer and the Contractor, has demonstrated projected future demand for water use 
Contract No. 14-06-200-171-A-LTR1

4

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

[11th 67 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

69 as an essential portion of its water supply; and 

[12th 70 ] WHEREAS, the economies of regions within the Project, including the 

71 Contractor=s, depend upon the continued availability of water, including water service from the 

72 Project; and 

[13th 73 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

75 Project for all Project purposes; and 

[14th 76 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

81 of the United States relative to the Project; and 

[15th 82 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

83 relationship in order to achieve their mutual goals; and 

[16th 84 ] WHEREAS, the United States and the Contractor are willing to enter into this 

85 Contract pursuant to Federal Reclamation law on the terms and conditions set forth below;
Contract No. 14-06-200-171-A-LTR1

5

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

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

88 DEFINITIONS

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

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

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

92 both dates inclusive; 

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

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

95 annually by the Contracting Officer pursuant to this Contract; 

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

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

98 the Contract Total; 

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

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

101 or regulation; 

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

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

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

105 permitted to provide Project Water under this Contract as described in Exhibit AA@ attached 

106 hereto, which may be modified from time to time in accordance with Article 35 of this Contract 
Contract No. 14-06-200-171-A-LTR1

6

107 without amendment of this Contract; 

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

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

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

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

112 (96 Stat. 1263), as amended, hereinafter referred to as RRA; 

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

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

115 Reclamation law; 

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

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

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

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

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

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

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

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

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

125 and Regulations for the RRA; 

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

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

128 (l) “Irrigation Full Cost Water Rate” shall mean the Full Cost Rate applicable 
Contract No. 14-06-200-171-A-LTR1

7

129 to the delivery of Irrigation Water; 

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

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

132 incidental thereto, and watering of livestock. Irrigation Water shall not include water used for 

133 purposes such as the watering of landscaping or pasture for animals (i.e., horses) which are kept 

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

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

136 of water delivered to such landholding is a use described in this subdivision of this Article; 

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

138 nonexempt land, as provided in 43 CFR 426.2; 

139 (o) “Operation and Maintenance” or “O&M” shall mean normal and 

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

141 maintenance of Project facilities; 

142 (p) “Other Water” shall mean water made available from the Project other 

143 than Irrigation Water as described in subdivision (m) of this Article, which is used for a purpose 

144 that is considered to be an irrigation use pursuant to State law such as the watering of 

145 landscaping or pasture for animals (e.g., horses) which are kept for personal enjoyment. For 

146 purposes of this Contract, Other Water shall be paid for at Rates and Charges identical to those 

147 established for municipal and industrial water pursuant to the then-current Municipal and 

148 Industrial (M&I) Ratesetting Policy; 

149 (q) “Other Full Cost Water Rate” shall mean the annual rate, which, as 

150 determined by the Contracting Officer, shall amortize the expenditures for construction allocable 
Contract No. 14-06-200-171-A-LTR1

8

151 to Project M&I facilities in service, including, O&M deficits funded, less payments, over such 

152 periods as may be required under Federal Reclamation law with interest accruing from the dates 

153 such costs were first incurred plus the applicable rate for the O&M of such Project facilities. 

154 Interest rates used in the calculation of the Other Full Cost Rate shall comply with the Interest 

155 Rate methodology contained in Section 202 (3) (B) and (C) of the RRA; 

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

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

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

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

160 Reclamation law; 

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

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

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

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

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

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

167 (v) “Recent Historic Average” shall mean the most recent five-year average 

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

169 preceding contract(s); 
Contract No. 14-06-200-171-A-LTR1

9

170 (w) “Replaced Water” shall mean Project Water which is delivered in the 

171 Sacramento River at the confluence with the Feather River and thence diverted by the Contractor 

172 from the Feather River by exchange at points of diversion on the Feather River which are 

173 approved by the Contracting Officer. 

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

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

176 through any agency of the Department of the Interior; 

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

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

179 (z) “Water Delivered” or “Delivered Water” shall mean Replaced Water 

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

181 Officer; 

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

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

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

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

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

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

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

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

190 TERM OF CONTRACT
Contract No. 14-06-200-171-A-LTR1

10

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

192 20___ and supercedes the Existing Contract. In the event the Contractor wishes to renew this 

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

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

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

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

197 shall be governed by subdivision (c) of this Article. 

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

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

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

201 subject to Federal and State law, this Contract shall be renewed for a period of 25 years. 

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

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

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

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

206 implementing an effective water conservation and efficiency program based on the Contractor=s 

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

208 operating and maintaining all water measuring devices and implementing all water measurement 

209 methods as approved by the Contracting Officer pursuant to Article 6 of this Contract; (iv) the 

210 Contractor has reasonably and beneficially used the Project Water supplies made available to it 

211 and, based on projected demands, is reasonably anticipated and expects to fully utilize for 
Contract No. 14-06-200-171-A-LTR1

11

212 reasonable and beneficial use the quantity of Project Water to be made available to it pursuant to 

213 such renewal; (v) the Contractor is complying with all terms and conditions of this Contract; and 

214 (vi) the Contractor has the physical and legal ability to deliver Project Water. 

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

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

217 consistent with the parties= respective legal rights and obligations, and in consideration of all 

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

219 without limitation, the Contractor=s need for continued delivery of Project Water; environmental 

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

221 those conditions that occurred during the life of the Contract to be renewed; the Secretary=s 

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

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

224 circumstances of the region served by the Contractor. 

225 (c) The Contracting Officer shall make a determination ten years after the 

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

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

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

229 of July 2, 1956 (70 Stat 483). Notwithstanding any provision of this Contract, the Contractor 

230 reserves and shall have all rights and benefits under the Act of July 2, 1956 (70 Stat 483). The 

231 Contracting Officer anticipates that during the term of this Contract, all authorized Project 

232 construction expected to occur will have occurred, and on that basis the Contracting Officer 
Contract No. 14-06-200-171-A-LTR1

12

233 agrees upon such completion to allocate all costs that are properly assignable to the Contractor, 

234 and agrees further that, at any time after such allocation is made, and subject to satisfaction of 

235 the condition set out in this subdivision, this Contract shall, at the request of the Contractor, be 

236 converted to a contract under subsection 9(d) of the Reclamation Project Act of 1939, subject to 

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

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

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

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

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

242 the United States within the term of a contract under subsection 9(d). If the remaining amount of 

243 costs that are properly assignable to the Contractor cannot be determined during the term of this 

244 Contract, the Contracting Officer shall notify the Contractor, and provide the reason(s) why such 

245 a determination could not be made. Further, the Contracting Officer shall make such a 

246 determination as soon thereafter as possible so as to permit, upon request of the Contractor and 

247 satisfaction of the condition set out above, conversion to a contract under subsection 9(d). In the 

248 event such determination of costs has not been made at a time which allows conversion of this 

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

250 Contract within such term, the parties shall incorporate in any subsequent renewal contract as 

251 described in subdivision (b) of this Article a provision that carries forth in substantially identical 

252 terms the provisions of this subdivision. 

253 WATER BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR
Contract No. 14-06-200-171-A-LTR1

13

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

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

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

257 acre-feet of Project Water for irrigation and other purposes. Water delivered to the Contractor in 

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

259 Articles 4 and 7 of this Contract. 

260 (1) During the months of June, July, August, and September of each 

261 Year, all water diverted by the Contractor from the Feather River, except as provided for under 

262 Article 26 of this Contract, shall be deemed, solely for the purposes of this Contract, to be 

263 Replaced Water; Provided, That during these four months, the Contracting Officer shall not be 

264 obligated to deliver to the Contractor more than 18,533 acre-feet of Project Water, and the 

265 Contractor shall not divert more than 18,533 acre-feet of water from the Feather River or the 

266 quantity available to it pursuant to Articles 10 and 11 of this Contract, whichever is less. 

267 (2) Diversions of water by the Contractor from the Feather River 

268 during any other months of the Year shall be deemed, solely for the purposes of this Contract, to 

269 be water the Contractor is entitled to divert under Permit 12094, not Replaced Water, except 

270 when the State of California Water Resources Control Board determines that insufficient water is 

271 available in the Feather River during those other months, or portions thereof, for the Contractor 

272 to divert under its Permit 12094, in which event all diversions made from the Feather River by 

273 the Contractor after the date specified in the Board's notice of unavailability of water shall 
Contract No. 14-06-200-171-A-LTR1

14

274 necessarily be Replaced Water and the Contracting Officer, subject to the provisions set forth in 

275 Articles 10 and 11 of this Contract, shall be obligated to make available to the Contractor up to 

276 the full 20,000 acre-feet of Project Water to which the Contractor is entitled. 

277 (3) If the date specified in the Board's notice terminating the period of 

278 curtailment falls before June 1, then water diverted from the Feather River by the Contractor 

279 after the date specified in the said notice, but before June 1, shall be deemed, solely for the 

280 purposes of this Contract, to be water the Contractor is entitled to divert under Permit 12094, not 

281 Replaced Water. If the date specified in the Board's notice terminating the period of curtailment 

282 falls after September 30, then water diverted from the Feather River by the Contractor after the 

283 date specified in the said notice shall be deemed, solely for the purposes of this Contract, to be 

284 water the Contractor is entitled to divert under Permit 12094, not Replaced Water. Water 

285 Delivered to the Contractor in accordance with this subdivision shall be scheduled and paid for 

286 pursuant to the provisions of Articles 4 and 7 of this Contract. 

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

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

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

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

291 Article in any given Year is uncertain. The Contracting Officer=s modeling referenced in the 

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

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

294 Water Made Available to the Contractor was 18,400 acre-feet. Nothing in subdivision (b) of this 
Contract No. 14-06-200-171-A-LTR1

15

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

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

297 applicable legal requirements. 

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

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

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

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

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

303 use consistent with Federal Reclamation law will be allowed: Provided, That any direct recharge 

304 program(s) is (are) described in the Contractor=s water conservation plan submitted pursuant to 

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

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

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

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

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

310 Water or other water furnished pursuant to this Contract conducted outside the Contractor=s 

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

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

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

314 guidelines. 

315 (e) The Contractor shall comply with requirements applicable to the 
Contract No. 14-06-200-171-A-LTR1

16

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

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

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

319 Contract, which evidences in excess of 40 years of diversions for irrigation and/or M&I purposes 

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

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

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

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

324 jurisdiction with 

325 respect to any biological opinion or other environmental documentation referred to in this 

326 Article. 

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

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

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

330 Total under Article 3 of this Contract during the Year without adversely impacting other Project 

331 Contractors. At the request of the Contractor, the Contracting Officer will consult with the 

332 Contractor prior to making such a determination. If the Contracting Officer determines that 

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

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

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

336 and other Project Contractors capable of taking such water to determine the most equitable and 
Contract No. 14-06-200-171-A-LTR1

17

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

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

339 with applicable statutes, regulations, guidelines, and policies. 

340 (g) The Contractor=s right pursuant to Federal Reclamation law and applicable 

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

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

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

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

345 sentence shall affect the Contracting Officer=s ability to impose shortages under Articles 11 or 

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

347 contracts. 

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

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

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

351 conditions of such approval. 

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

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

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

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

356 Provided, That the Contracting Officer retains the right to object to the substance of the 
Contract No. 14-06-200-171-A-LTR1

18

357 Contractor=s position in such a proceeding; Provided further, That in such proceedings the 

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

359 use Project Water. 

360 TIME FOR DELIVERY OF WATER

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

362 shall announce the Contracting Officer=s expected declaration of the Water Made Available. 

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

364 Historic Average and will be updated monthly, and more frequently if necessary, based on then365 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

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

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

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

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

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

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

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

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

374 Contracting Officer shall use all reasonable means to deliver Project Water according to the 

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

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

377 of Project Water the Contractor intends to put to reasonable and beneficial use within the 
Contract No. 14-06-200-171-A-LTR1

19

378 Contractor's Service Area during any Year. 

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

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

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

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

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

384 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

386 Contract shall be delivered to the Contractor in the Sacramento River at the confluence with the 

387 Feather River for diversion from the Feather River by exchange at such point or points on the 

388 Feather River mutually agreed to in writing by the Contracting Officer and the Contractor 

389 consistent with Permit 12094. 

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

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

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

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

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

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

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

397 Article. Upon the request of either party to this Contract, the Contracting Officer shall 

398 investigate the accuracy of such measurements and shall take any necessary steps to adjust any 
Contract No. 14-06-200-171-A-LTR1

20

399 errors appearing therein. For any period of time when accurate measurements have not been 

400 made, the Contracting Officer shall consult with the Contractor prior to making a final 

401 determination of the quantity delivered for that period of time. 

402 (d) The Contracting Officer shall not be responsible for the control, carriage, 

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

404 Contract beyond the delivery points specified in subdivision (a) of this Article. The Contractor 

405 shall indemnify the United States, its officers, employees, agents, and assigns on account of 

406 damage or claim of damage of any nature whatsoever for which there is legal responsibility, 

407 including property damage, personal injury, or death arising out of or connected with the control, 

408 carriage, handling, use, disposal, or distribution of such Water Delivered beyond such delivery 

409 points, except for any damage or claim arising out of (i) acts or omissions of the Contracting 

410 Officer or any of its officers, employees, agents, or assigns, with the intent of creating the 

411 situation resulting in any damage or claim, (ii) willful misconduct of the Contracting Officer or 

412 any of its officers, employees, agents, or assigns, (iii) negligence of the Contracting Officer or 

413 any of its officers, employees, agents, or assigns, or (iv) damage or claims resulting from a 

414 malfunction of facilities owned and/or operated by the United States. 

415 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

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

419 water delivered for M&I purposes is measured at each M&I service connection. The water 
Contract No. 14-06-200-171-A-LTR1

21

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

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

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

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

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

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

426 applicable, to record water delivered for other purposes by customer class as defined in the 

427 Contractor=s water conservation plan provided for in Article 26 of this Contract. Nothing herein 

428 contained, however, shall preclude the Contractor from establishing and collecting any charges, 

429 assessments, or other revenues authorized by California law. The Contractor shall include a 

430 summary of all its annual surface water deliveries in the annual report described in subdivision 

431 (c) of Article 26. 

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

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

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

435 (c) The Contractor shall inform the Contracting Officer and the State of 

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

437 within the Contractor=s Service Area during the previous Year. 

(d) The Contractor shall inform the Contracting Officer on or before the 20th 438 

439 calendar day of each month of the quantity of Irrigation and M&I Water taken during the 

440 preceding month. 
Contract No. 14-06-200-171-A-LTR1

22

441 RATES AND METHOD OF PAYMENT FOR WATER

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

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

444 accordance with: (i) the Secretary=s ratesetting policy for Irrigation Water adopted in 1988 and 

445 the Secretary=s then-existing ratesetting policy for M&I water. Such ratesetting policies shall be 

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

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

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

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

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

451 Component applicable to the Contractor upon execution of this Contract are set forth in Exhibit 

452 AB@, as may be revised annually. 

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

454 and Tiered Pricing Component as follows: 

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

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

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

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

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

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

461 in effect during the period October 1 of the current Calendar Year, through September 30, of the 
Contract No. 14-06-200-171-A-LTR1

23

462 following Calendar Year, and such notification shall revise Exhibit AB.@

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

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

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

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

467 comment on such computations and cost allocations. By December 31 of each Calendar Year, 

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

469 Component to be in effect for the upcoming Year, and such notification shall revise Exhibit AB.@

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

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

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

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

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

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

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

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

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

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

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

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

482 Contract during any month shall be accompanied with appropriate advance payment, at the Rates 
Contract No. 14-06-200-171-A-LTR1

24

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

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

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

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

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

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

489 Water 

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

491 later than April 30th of the following Year, or 60 days after the delivery of Project Water carried 

492 over under subdivision (f) of Article 3 of this Contract if such water is not delivered by the last 

493 day of February. 

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

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

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

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

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

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

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

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

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

503 applicable Tiered Pricing Component for Water Delivered. Adjustment for overpayment or 
Contract No. 14-06-200-171-A-LTR1

25

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

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

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

507 (e) The Contractor shall pay for any Water Delivered under subdivisions (a) 

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

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

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

511 Contract shall be no more than the otherwise applicable Rate for Irrigation Water or Other Water 

512 under subdivision (a) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

524 disposition of all Project and Contractor revenues, and a summary of all water delivery 
Contract No. 14-06-200-171-A-LTR1

26

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

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

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

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

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

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

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

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

533 this Contract is in effect without amending this Contract. 

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

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

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

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

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

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

540 subdivision (a) of this Article and the Irrigation Full Cost Water Rate or Other Full Cost Water 

541 Rate, whichever is applicable. The Tiered Pricing Component for the amount of Water 

542 Delivered which exceeds 90 percent of the Contract Total shall equal the difference between (i) 

543 the Rate established under subdivision (a) of this Article and (ii) the Irrigation Full Cost Water 

544 Rate or Other Full Cost Water Rate, whichever is applicable. For all Water Delivered pursuant 

545 to subdivision (a) of Article 3 of this Contract which is in excess of 80 percent of the Contract 
Contract No. 14-06-200-171-A-LTR1

27

546 Total, this increment shall be deemed to be divided between Irrigation Water and Other Water in 

547 the same proportion as actual deliveries of each bear to the cumulative total Water Delivered. 

548 (2) Subject to the Contracting Officer=s written approval, the 

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

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

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

552 and the crops are produced; Provided, That the exemption from the Tiered Pricing Components 

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

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

555 Contracting Officer prior to use of such water. 

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

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

558 Contractor transfers to others but shall not include Project Water transferred to the Contractor, 

559 nor shall it include the additional water provided to the Contractor under the provisions of 

560 subdivision (f) of Article 3 of this Contract. 

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

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

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

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

565 in accordance with the relevant Project ratesetting policy. Changes of significance in practices 
Contract No. 14-06-200-171-A-LTR1

28

566 which implement the Contracting Officer=s ratesetting policies will not be implemented until the 

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

568 impact of the proposed change. 

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

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

571 adjusted upward or downward to reflect the changed costs, if any, incurred by the Contracting 

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

573 accordance with the then applicable Project ratesetting policy. If the Contractor is receiving 

574 lower Rates and Charges because of inability to pay and is transferring Project Water to another 

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

576 for transferred Project Water shall be the Contractor’s Rates and Charges and will not be 

577 adjusted to reflect the Contractor’s inability to pay. 

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

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

580 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

583 liability therefor. 

584 SALES, TRANSFERS, OR EXCHANGES OF WATER

585 9. Omitted. 
Contract No. 14-06-200-171-A-LTR1

29

586 APPLICATION OF PAYMENTS AND ADJUSTMENTS

587 10. (a) The amount of any overpayment by the Contractor of the Contractor=s 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

603 TEMPORARY REDUCTIONS--RETURN FLOWS

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

605 requirements of Federal law; and (ii) the obligations of the United States under existing 
Contract No. 14-06-200-171-A-LTR1

30

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

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

608 provided in this Contract. 

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

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

611 provided for the purposes of investigation, inspection, maintenance, repair, or replacement of 

612 any of the Project facilities or any part thereof necessary for the delivery of Project Water to the 

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

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

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

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

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

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

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

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

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

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

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

624 pursuant to this Contract within the Contractor=s Service Area by the Contractor or those 

625 claiming by, through, or under the Contractor. 

626 CONSTRAINTS ON THE AVAILABILITY OF WATER
Contract No. 14-06-200-171-A-LTR1

31

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

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

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

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

631 Contractor of said determination as soon as practicable. 

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

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

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

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

636 any of its officers, agents, or employees for any damage, direct or indirect, arising therefrom. 

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

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

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

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

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

642 contractual obligations of the United States. 

643 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

647 of the delivery of Irrigation Water by the Contractor to Eligible Lands. 
Contract No. 14-06-200-171-A-LTR1

32

648 RULES AND REGULATIONS

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

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

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

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

653 law. 

654 WATER AND AIR POLLUTION CONTROL

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

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

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

658 authorities. 

659 QUALITY OF WATER

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

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

662 Water to the Contractor in accordance with the water quality standards specified in subsection 

663 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

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

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

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

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

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

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

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

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

672 to surface and subsurface agricultural drainage discharges generated through the use of Federal 
Contract No. 14-06-200-171-A-LTR1

33

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

674 Service Area. 

675 WATER ACQUIRED BY THE CONTRACTOR

676 OTHER THAN FROM THE UNITED STATES

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

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

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

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

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

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

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

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

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

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

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

688 Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation Water and non689 Project water are/were constructed with funds made available pursuant to Federal Reclamation 

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

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

692 in 43 CFR 426.15. In determining the incremental fee, the Contracting Officer will calculate 

693 annually the cost to the Federal Government, including interest on storing or delivering non694 Project water, which for purposes of this Contract shall be determined as follows: The quotient 
Contract No. 14-06-200-171-A-LTR1

34

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

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

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

698 1982 (96 Stat. 1263). Such incremental fee will be charged to each acre of excess or full cost 

699 land within the Contractor=s Service Area that receives non-Project water through Federally 

700 financed or constructed facilities. The incremental fee calculation methodology will continue 

701 during the term of this Contract absent the promulgation of a contrary Reclamation-wide rule, 

702 regulation or policy adopted after the Contractor has been afforded the opportunity to review and 

703 comment on the proposed rule, regulation or policy. If such rule, regulation or policy is adopted 

704 it shall supercede this provision. 

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

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

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

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

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

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

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

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

713 Non-Federal Entity of an appropriate rate as determined by the applicable Project ratesetting 

714 policy, the RRA, and the Project use power policy, if such Project use power policy is 

715 applicable, each as amended, modified, or superceded from time to time. 
Contract No. 14-06-200-171-A-LTR1

35

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

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

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

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

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

721 the Project facilities. 

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

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

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

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

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

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

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

729 diverting such non-Project water into Project facilities. 

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

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

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

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

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

735 of the facilities declared to be available by the Contracting Officer for conveyance and 
Contract No. 14-06-200-171-A-LTR1

36

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

737 non-Project contractors. 

738 OPINIONS AND DETERMINATIONS

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

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

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

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

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

744 capricious, or unreasonable opinion or determination. Each opinion or determination by either 

745 party shall be provided in a timely manner. Nothing in this subdivision (a) of Article 18 of this 

746 Contract is intended to or shall affect or alter the standard of judicial review applicable under 

747 Federal law to 

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

749 statute or regulation. 

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

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

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

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

754 with the Contractor to the extent reasonably practicable. 

755 COORDINATION AND COOPERATION
Contract No. 14-06-200-171-A-LTR1

37

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

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

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

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

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

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

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

763 coordination, and cooperation provided for hereunder shall extend to all provisions of this 

764 Contract. Each party shall retain exclusive decision making authority for all actions, opinion, 

765 and determinations to be made by the respective party. 

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

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

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

769 process, which may be amended as necessary separate and apart from this Contract. The goal of 

770 this process shall be to provide, to the extent practicable, the means of mutual communication 

771 and interaction regarding significant decisions concerning Project operation and management on 

772 a real-time basis. 

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

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

775 intent: 

776 (1) The Contracting Officer will, at the request of the Contractor, 
Contract No. 14-06-200-171-A-LTR1

38

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

778 the Contracting Officer will, as appropriate, seek authorizations for implementation of 

779 partnerships to improve water supply, water quality, and reliability. 

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

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

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

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

784 State of California to seek improved water resource management. 

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

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

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

788 annually, hold division level meetings to discuss Project operations, division level water 

789 management activities, and other issues as appropriate. 

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

791 hereunder, nothing in this Contract shall be construed to limit or constrain the Contacting 

792 Officer=s ability to communicate, coordinate, and cooperate with the Contractor or other 

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

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

795 CHARGES FOR DELINQUENT PAYMENTS

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

797 charges on delinquent installments or payments. When a payment is not received by the due 

798 date, the Contractor shall pay an interest charge for each day the payment is delinquent beyond 

799 the due date. When a payment becomes sixty (60) days delinquent, the Contractor shall pay an 
Contract No. 14-06-200-171-A-LTR1

39

800 administrative charge to cover additional costs of billing and processing the delinquent payment. 

801 When a payment is delinquent ninety (90) days or more, the Contractor shall pay an additional 

802 penalty charge of six (6%) percent per year for each day the payment is delinquent beyond the 

803 due date. Further, the Contractor shall pay any fees incurred for debt collection services 

804 associated with a delinquent payment. 

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

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

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

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

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

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

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

812 accrued interest, and finally to the overdue payment. 

813 EQUAL OPPORTUNITY

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

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

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

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

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

819 shall include, but not be limited to, the following: Employment, upgrading, demotion, or 

820 transfer; recruitment or recruitment advertising; layoff or termination, rates of payment or other 

821 forms of compensation; and selection for training, including apprenticeship. The Contractor 

822 agrees to post in conspicuous places, available to employees and applicants for employment, 

823 notices to be provided by the Contracting Officer setting forth the provisions of this 

824 nondiscrimination clause. 

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

826 placed by or on behalf of the Contractor, state that all qualified applicants will receive 

827 consideration for employment without discrimination because of race, color, religion, sex, or 

828 national origin. 

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

830 with which it has a collective bargaining agreement or other contract or understanding, a notice, 

831 to be provided by the Contracting Officer, advising the said labor union or workers' 

832 representative of the Contractor's commitments under Section 202 of Executive Order 11246 of 

833 September 24, 1965, and shall post copies of the notice in conspicuous places available to 

834 employees and applicants for employment. 
Contract No. 14-06-200-171-A-LTR1

40 

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

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

837 of the Secretary of Labor. 

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

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

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

841 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with 

842 such rules, regulations, and orders. 

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

844 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

845 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

846 ineligible for further Government contracts in accordance with procedures authorized in said 

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

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

849 otherwise provided by law. 

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

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

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

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

854 action with respect to any subcontract or purchase order as may be directed by the Secretary of 

855 Labor as a means of enforcing such provisions, including sanctions for noncompliance: 

856 Provided, however, That in the event the Contractor becomes involved in, or is threatened with, 

857 litigation with a subcontractor or vendor as a result of such direction, the Contractor may request 

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

859 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

860 22. (a) The obligation of the Contractor to pay the United States as provided in 

861 this Contract is a general obligation of the Contractor notwithstanding the manner in which the 

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

863 of individual water users in their obligations to the Contractor. 

864 (b) The payment of charges becoming due hereunder is a condition precedent 

865 to receiving benefits under this Contract. The United States shall not make water available to the 

866 Contractor through Project facilities during any period in which the Contractor may be in arrears 

867 in the advance payment of water rates due the United States. The Contractor shall not furnish 

868 water made available pursuant to this Contract for lands or parties which are in arrears in the 

869 advance payment of water rates levied or established by the Contractor. 

870 (c) With respect to subdivision (b) of this Article, the Contractor shall have 
Contract No. 14-06-200-171-A-LTR1

41 

871 no obligation to require advance payment for water rates which it levies. 

872 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

873 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 

874 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

875 Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights 

876 laws, as well as with their respective implementing regulations and guidelines imposed by the 

877 U.S. Department of the Interior and/or Bureau of Reclamation. 

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

879 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be 

880 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

881 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

882 Contractor agrees to immediately take any measures necessary to implement this obligation, 

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

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

885 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or other 

886 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of 

887 Reclamation, including installment payments after such date on account of arrangements for 

888 Federal financial assistance which were approved before such date. The Contractor recognizes 

889 and agrees that such Federal assistance will be extended in reliance on the representations and 

890 agreements made in this Article, and that the United States reserves the right to seek judicial 

891 enforcement thereof. 

892 PRIVACY ACT COMPLIANCE

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

894 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et 

895 seq.) in maintaining Landholder acreage certification and reporting records, required to be 

896 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation 

897 Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

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

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

900 responsible for maintaining the certification and reporting records referenced in (a) above are 

901 considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

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

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

904 Bureau of Reclamation Federal Register Privacy Act System of Records Notice (Acreage 

905 Limitation--Interior, Reclamation-31) which govern the maintenance, safeguarding, and 

906 disclosure of information contained in the Landholder's certification and reporting records. 
Contract No. 14-06-200-171-A-LTR1

42 

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

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

909 on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The 

910 Contractor is authorized to grant requests by individuals for access to their own records. 

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

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

913 under 43 CFR 2.71; notify the requester accordingly of such referral; and provide the System 

914 Manager with information and records necessary to prepare an appropriate response to the 

915 requester. These requirements do not apply to individuals seeking access to their own 

916 certification and reporting forms filed with the Contractor pursuant to 43 CFR 426.18, unless the 

917 requester elects to cite the Privacy Act as a basis for the request. 

918 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

919 25. In addition to all other payments to be made by the Contractor pursuant to this 

920 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

921 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

922 of direct cost incurred by the United States for work requested by the Contractor associated with 

923 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

924 and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

925 to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

926 contract administration. 

927 WATER CONSERVATION

928 26. (a) Prior to the delivery of water provided from or conveyed through 

929 Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor 

930 shall be implementing an effective water conservation and efficiency program based on the 

931 Contractor's water conservation plan that has been determined by the Contracting Officer to meet 

932 the conservation and efficiency criteria for evaluating water conservation plans established under 

933 Federal law. The water conservation and efficiency program shall contain definite water 
Contract No. 14-06-200-171-A-LTR1

43 

934 conservation objectives, appropriate economically feasible water conservation measures, and 

935 time schedules for meeting those objectives. Continued Project Water delivery pursuant to this 

936 Contract shall be contingent upon the Contractor=s continued implementation of such water 

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

938 water conservation plan completed pursuant to subdivision (d) of Article 26 of this Contract have 

939 not yet been determined by the Contracting Officer to meet such criteria, due to circumstances 

940 which the Contracting Officer determines are beyond the control of the Contractor, water 

941 deliveries shall be made under this Contract so long as the Contractor diligently works with the 

942 Contracting Officer to obtain such determination at the earliest practicable date, and thereafter 

943 the Contractor 

944 immediately begins implementing its water conservation and efficiency program in accordance 

945 with the time schedules therein. 

946 (b) Should the amount of Other Water delivered pursuant to subdivision (a) of 

947 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall 

948 implement the Best Management Practices identified by the time frames issued by the California 

949 Urban Water Conservation Council for M&I water unless any such practice is determined by the 

950 Contracting Officer to be inappropriate for the Contractor. 

951 (c) The Contractor shall submit to the Contracting Officer a report on the 

952 status of its implementation of the water conservation plan on the reporting dates specified in the 

953 then existing conservation and efficiency criteria established under Federal law. 

954 (d) At five -year intervals, the Contractor shall revise its water conservation 

955 plan to reflect the then-current conservation and efficiency criteria for evaluating water 
Contract No. 14-06-200-171-A-LTR1

44 

956 conservation plans established under Federal law and submit such revised water management 

957 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

958 determine if the water conservation plan meets Reclamation=s then-current conservation and 

959 efficiency criteria for evaluating water conservation plans established under Federal law. 

960 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

961 shall be described in the Contractor=s water conservation plan. 

962 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

963 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

964 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

965 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

966 Area. Any such water shall not be considered Project Water under this Contract. In addition, 

967 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

968 any water user within the Contractor's Service Area acquires or has available under any other 

969 contract pursuant to Federal Reclamation law. 

970 OPERATION AND MAINTENANCY BY OPERATING NON-FEDERAL ENTITY

971 28. Omitted. 

972 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

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

974 the United States under this Contract shall be contingent upon appropriation or allotment of 

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

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

977 not appropriated or allotted. 

978 BOOKS, RECORDS, AND REPORTS

979 30. (a) The Contractor shall establish and maintain accounts and other books and 

980 records pertaining to administration of the terms and conditions of this Contract, including: the 
Contract No. 14-06-200-171-A-LTR1

45 

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

982 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

983 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

984 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

985 Officer may require. Subject to applicable Federal laws and regulations, each party to this 

986 Contract shall have the right during office hours to examine and make copies of the other party's 

987 books and records relating to matters covered by this Contract. 

988 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

989 books, records, or other information shall be requested from the Contractor by the Contracting 

990 Officer unless such books, records, or information are reasonably related to the administration or 

991 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

992 time within which to provide the requested books, records, or information. 

993 (c) At such time as the Contractor provides information to the Contracting 

994 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided 

995 to the Operating Non-Federal Entity. 

996 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

997 31. (a) The provisions of this Contract shall apply to and bind the successors and 

998 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

999 therein shall be valid until approved in writing by the Contracting Officer. 

1000 (b) The assignment of any right or interest in this Contract by either party 

1001 shall not interfere with the rights or obligations of the other party to this Contract absent the 

1002 written concurrence of said other party. 

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

approval of any proposed assignment. 
Contract No. 14-06-200-171-A-LTR1

46 

1003 SEVERABILITY

1004 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

1005 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

1006 an association or other form of organization whose primary function is to represent parties to 

1007 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1008 enforceability of a provision included in this Contract and said person, entity, association, or 

1009 organization obtains a final court decision holding that such provision is legally invalid or 

1010 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

1011 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

1012 final court decision identify by mutual agreement the provisions in this Contract which must be 

1013 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

1014 The time periods specified above may be extended by mutual agreement of the parties. Pending 

1015 the completion of the actions designated above, to the extent it can do so without violating any 

1016 applicable provisions of law, the United States shall continue to make the quantities of Project 

1017 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

1018 Contract which were not found to be legally invalid or unenforceable in the final court decision. 

1019 RESOLUTION OF DISPUTES

1020 33. Should any dispute arise concerning any provisions of this Contract, or the 

1021 parties= rights and obligations thereunder, the parties shall meet and confer in an attempt to 

1022 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

1023 Officer referring any matter to Department of Justice, the party shall provide to the other party 

1024 30 days= written notice of the intent to take such action; Provided, That such notice shall not be 

1025 required where a delay in commencing an action would prejudice the interests of the party that 
Contract No. 14-06-200-171-A-LTR1

47 

1026 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

1027 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

1028 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

1029 United States may have. 

1030 OFFICIALS NOT TO BENEFIT

1031 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1032 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1033 manner as other water users or landowners. 

1034 CHANGES IN CONTRACTOR=S SERVICE AREA

1035 35. (a) While this Contract is in effect, no change may be made in the 

1036 Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

1037 or otherwise, except upon the Contracting Officer's written consent. 

1038 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1039 Officer will notify the Contractor of any additional information required by the Contracting 

1040 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

1041 schedule for timely completion of the process. Such process will analyze whether the proposed 

1042 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

1043 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

1044 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

1045 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

1046 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

1047 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

1048 be paid in accordance with Article 25 of this Contract. 

1049 FEDERAL LAWS

1050 36. By entering into this Contract, the Contractor does not waive its rights to contest 
Contract No. 14-06-200-171-A-LTR1

48 

1051 the validity or application in connection with the performance of the terms and conditions of this 

1052 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1053 the terms and conditions of this Contract unless and until relief from application of such Federal 

1054 law or regulation to the implementing provision of the Contract is granted by a court of 

1055 competent jurisdiction. 

1056 NOTICES

1057 36. Any notice, demand, or request authorized or required by this Contract shall be 

1058 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1059 delivered to the Area Manager, Bureau of Reclamation, Northern California Area Office, 16349 

1060 Shasta Dam Boulevard, Shasta Lake, California 96019-8400, and on behalf of the United States, 

1061 when mailed, postage prepaid, or delivered to the Board of Directors of the Feather Water 

1062 District, 280 Wilkie Avenue, Yuba City, California 95991. The designation of the addressee or 
Contract No. 14-06-200-171-A-LTR1

49 

1063 the address may be changed by notice given in the same manner as provided in this Article for 

1064 other notices. 

1065 CONFIRMATION OF CONTRACT 

1066 36. The Contractor, after the execution of this Contract, shall promptly seek to secure 

1067 a decree of a court of competent jurisdiction of the State of California, confirming the execution 

1068 of this Contract. The Contractor shall furnish the United States a certified copy of the final 

1069 decree, the validation proceedings, and all pertinent supporting records of the court approving 

1070 and confirming this Contract, and decreeing and adjudging it to be lawful, valid, and binding on 

1071 the Contractor. 

1072 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day 

1073 and year first above written. 

1074 THE UNITED STATES OF AMERICA 

1075 By: ___________________________________ 

1076 Regional Director, Mid-Pacific Region 

1077 Bureau of Reclamation 

1078 FEATHER WATER DISTRICT 

1079 By: __________________________________ 

1080 President of the Board of Directors 

1081 Attest: 

1082 By: ______________________________ 

1083 Secretary of the Board of Directors 

1084 (I:\LTRC\Draft LTRC\04-19-2004-01 Feather WD LTRC Final Contract Draft.doc)) 
50