M&I Only 

R.O. CVP-Wide Draft 6/22-2004 

Forest Service (Salt Creek) Draft 3/08-2004 

Contract No. 

14-06-200-3621A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Black Butte Project, California 

MEMORANDUM OF AGREEMENT WITH THE FOREST SERVICE

 FOR DIVERSION OF WATER FROM SALT CREEK

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals............................................................................................ 1-4 

 1 Definitions ........................................................................................................... 4-7 

 2 Term of Contract.................................................................................................. 8-9 

 3 Water to be Made Available and Delivered to the Contractor .......................... 9-13 

 4 Time for Delivery of Water ............................................................................. 13-14 

 5 Point of Diversion and Responsibility for Distribution of Water.................... 14-15 

 6 Measurement of Water Within the Contractor’s Service Area........................ 15-17 

 7 Rates and Method of Payment for Water......................................................... 17-23 

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

 9 Sales, Transfers, or Exchanges of Water ......................................................... 23-25 

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

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

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

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

 14 Rules and Regulations .......................................................................................... 27 

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

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

 17 Water Acquired by the Contractor Other Than From the United States .............. 29 

 18 Opinions and Determinations ............................................................................... 29 

 19 Coordination and Cooperation......................................................................... 29-31 

 20 Charges for Delinquent Payments ................................................................... 31-32 
Contract No. 14-06-200-3621A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity................................................................................................. 32 

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 32 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 32 

 24 Privacy Act Compliance ....................................................................................... 32 

 25 Contractor to Pay Certain Miscellaneous Costs ................................................... 32 

 26 Water Conservation ......................................................................................... 32-34 

 27 Existing or Acquired Water or Water Rights........................................................ 34 

 28 Operation and Maintenance by Operating Non-Federal Entity ............................ 34 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 34 

 30 Books, Records, and Reports........................................................................... 34-35 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 34 

 32 Severability ...................................................................................................... 35-36 

 33 Resolution of Disputes.......................................................................................... 35 

 34 Officials Not to Benefit......................................................................................... 36 

 35 Changes in Contractor’s Service Area............................................................. 36-37 

 36 Federal Laws......................................................................................................... 37 

 37 Notices .................................................................................................................. 37

 38 Confirmation of Contract...................................................................................... 37 

 Signature Page ...................................................................................................... 38 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
M&I Only 

R.O. CVP-Wide Draft 6/22-2004 

Forest Service (Salt Creek) Draft 3/08-2004 

Contract No. 

14-06-200-3621A-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Black Butte Project, California 

5 MEMORANDUM OF AGREEMENT WITH THE FOREST SERVICE 

6 FOR DIVERSION OF WATER FROM SALT CREEK

7 THIS Memorandum of Agreement (MOA) , made this _____ day of 

8 ____________________, 20___, in pursuance generally of the Act of June 17, 1902 (32 Stat. 

9 388), and acts amendatory or supplementary thereto, including, but not limited to, the Acts of 

10 August 26, 1937 (50 Stat. 844), as amended and supplemented, August 4, 1939 (53 Stat. 1187), 

11 as amended and supplemented, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), 

12 October 12, 1982 (96 Stat. 1263), October 27, 1986 (100 Stat. 3050), as amended, and Title 

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

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

15 referred to as the United States, and the FOREST SERVICE, United States Department of 

16 Agriculture, hereinafter referred to as the Contractor, represented by the Regional Forester, 

17 California Region; 

18 WITNESSETH, THAT: 

19 EXPLANATORY RECITALS

 [1st 20 ] WHEREAS, the United States has constructed and is operating the Central Valley 

21 Project (Project), California, for diversion, storage, carriage, distribution and beneficial use, for 
Contract No. 14-06-200-3621A-LTR1 

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

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

24 other beneficial uses, of waters of the Sacramento River, the American River, the Trinity River, 

25 and the San Joaquin River and their tributaries; and 

 [2nd 26 ] WHEREAS, the United States constructed the Black Butte Dam and Reservoir 

27 which were integrated into the Project and which will be used in part for the furnishing of water 

28 to the Contractor pursuant to the terms of this MOA; and 

29 [2.1] WHEREAS, the United States constructed the Orland Project which is being 

30 operated by the Orland Unit Water Users’ Association pursuant to Contract No. 14-06-200-3502 

31 dated August 26, 1954, as amended by the contract dated August 24, 1960; and 

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

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

34 [3.1] WHEREAS, the water rights of all lands and the use thereof within the watershed 

35 of Stony Creek and its tributaries were adjudicated by the U.S. District Court for the Northern 

36 District of California, Second Division in the United States of America, v. H.C. Angle, et al., 

37 Equity No. 30, hereinafter referred to as the Angle Decree and said rights are administered by 

38 said courts; and 

39 [3.2] WHEREAS, the Contractor has a continuing need of a water supply for 

40 municipal, industrial, and domestic use to serve the California Department of Forestry and Fire 

41 Protection’s Salt Creek Conservation Camp which is located on National Forest land in Section 

42 34, Township 23 North, Range 7 Mt. Diablo Meridian; and 

43 [3.3] WHEREAS, the Service proposes to continue to divert water from Salt Creek to 

44 provide said water supply; and 
Contract No. 14-06-200-3621A-LTR1 

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 [4th 45 ] WHEREAS, the Contractor and the United States entered into Contract 

46 No. 14-06-200-3621A, which established terms for the delivery to the Contractor of Project 

47 Water from the Black Butte Dam and Reservoir from January 15, 1968, until terminated by 

48 mutual agreement of Reclamation and the Contractor, hereinafter referred to as the “Existing 

49 Contract”; and 

 [5th 50 ] WHEREAS, the United States and the Contractor have, pursuant to subsection 

51 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into a 

52 binding agreement, identified as Binding Agreement No. 14-06-200-3621A-BA, which sets out 

53 the terms pursuant to which the Contractor agreed to renew the Existing Contract before its 

54 expiration date after completion of a programmatic environmental impact statement and other 

55 appropriate environmental documentation and negotiation of a renewal contract, and which also 

56 sets out the consequences of a subsequent decision not to renew; and 

57 [5.1] WHEREAS, to satisfy existing downstream rights, Reclamation proposes to 

58 continue to furnish a replacement supply in Stony Creek for such water diverted by the 

59 Contractor pursuant to Contract No. 14-06-200-1020A, dated June 26, 1964, between 

60 Reclamation and the Orland Unit Water Users’ Association; and 

 [6th 61 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

63 programmatic environmental impact statement PEIS pursuant to the National Environmental 

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

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

 [7th 66 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

67 environmental review necessary to provide for long-term renewal of the Existing Contract; and 
Contract No. 14-06-200-3621A-LTR1 

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 [8th 68 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 71 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

72 of its obligations under the Existing Contract; and 

 [10th 73 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

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

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

76 Contracting Officer and the Contractor, has demonstrated projected future demand for water use 

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

 [11th 78 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

80 as an essential portion of its water supply; and 

 [12th 81 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

83 NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is 

84 agreed as flows: 

85 DEFINITIONS

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

87 incompatible with the intent of the parties as expressed in this MOA, the term: 

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

89 both dates inclusive; 
Contract No. 14-06-200-3621A-LTR1 

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

91 in addition to the Rates and Tiered Pricing Component specified in this MOA as determined 

92 annually by the Contracting Officer pursuant to this MOA; 

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

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

95 Contract Total; 

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

97 authorized representative acting pursuant to this MOA or applicable Federal Reclamation law or 

98 regulation; 

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

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

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

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

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

104 amendment of this MOA; 

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

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

107 (h) Omitted; 

108 (i) Omitted; 

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

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

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

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

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

114 and funded O&M deficits from October 12, 1982, on costs outstanding at that date, or from the 
Contract No. 14-06-200-3621A-LTR1 

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

116 in accordance with subsections 202(3)(B) and (3)(C) of the Reclamation Reform Act of 

117 October 12, 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA. The Full Cost 

118 Rate includes actual operation, maintenance, and replacement costs consistent with Section 426.2 

119 of the Rules and Regulations for the RRA; 

120 (k) Omitted; 

121 (l) Omitted; 

122 (m) Omitted; 

123 (n) Omitted; 

124 (o) “Municipal and Industrial (M&I) Water” shall mean Project Water made 

125 available to the Contractor for purposes other than the commercial production of agricultural 

126 crops or livestock; 

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

128 the delivery of M&I Water; 

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

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

131 maintenance of Project facilities; 

132 (r) Omitted; 

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

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

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

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

137 Reclamation law; 

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

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

140 accordance with the terms and conditions of water rights acquired pursuant to California law; 
Contract No. 14-06-200-3621A-LTR1 

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

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

143 as described in subdivision (a) of Article 7 of this MOA; 

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

145 the final forecast of Water Made Available to the Contractor pursuant to this MOA or its 

146 preceding contract(s); 

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

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

149 through any agency of the Department of the Interior; 

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

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

152 (z) “Water Delivered” or “Delivered Water” shall mean Project Water 

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

154 Officer; 

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

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

157 Contracting Officer, pursuant to subdivision (a) of Article 4 of this MOA; 

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

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

160 and Contracting Officer, pursuant to subdivision (b) of Article 4 of this MOA; and 

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

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

163 TERM OF CONTRACT

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

165 20___, and supercedes the Existing Contract. In the event the Contractor wishes to renew this 
Contract No. 14-06-200-3621A-LTR1 

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

167 the Contracting Officer no later than two years prior to the date this MOA expires. 

168 (b) Omitted. 

169 (c) This MOA shall be renewed for successive periods of up to 40 years each, 

170 which periods shall be consistent with then-existing Reclamation-wide policy, under terms and 

171 conditions mutually agreeable to the parties and consistent with Federal and State law. The 

172 Contractor shall be afforded the opportunity to comment to the Contracting Officer on the 

173 proposed adoption and application of any revised policy applicable to the delivery of M&I Water 

174 that would limit the term of any subsequent renewal contract with the Contractor for the 

175 furnishing of M&I Water to less than 40 years. 

176 (d) The Contracting Officer shall make a determination ten years after the 

177 date of execution of this MOA, and every five years thereafter during the term of this MOA, of 

178 whether a conversion of the relevant portion of this MOA to a contract under said subsection 

179 9(d) of the Reclamation Project Act of 1939 can be accomplished pursuant to the Act of July 2, 

180 1956 (70 Stat. 483). The Contracting Officer shall also make a determination ten years after the 

181 date of execution of this MOA and every five years thereafter during the term of this MOA of 

182 whether a conversion of the relevant portion of this MOA to a contract under subsection 9(c)(1) 

183 of the Reclamation Project Act of 1939 can be accomplished. Notwithstanding any provision of 

184 this MOA, the Contractor reserves and shall have all rights and benefits under the Act of July 2, 

185 1956 (70 Stat. 483). The Contracting Officer anticipates that during the term of this MOA, all 

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

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

188 to the Contractor, and agrees further that, at any time after such allocation is made, and subject to 
Contract No. 14-06-200-3621A-LTR1 

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189 satisfaction of the condition set out in this subdivision, this MOA shall, at the request of the 

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

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

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

193 such conversion to occur shall be a determination by the Contracting Officer that, account being 

194 taken of the amount credited to return by the Contractor as provided for under Federal 

195 Reclamation law, the remaining amount of construction costs assignable for ultimate return by 

196 the Contractor can probably be repaid to the United States within the term of a contract under 

197 said subsection 9(d) or 9(c)(1), whichever is applicable. If the remaining amount of costs that 

198 are properly assignable to the Contractor cannot be determined during the term of this MOA, the 

199 Contracting Officer shall notify the Contractor, and provide the reason(s) why such a 

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

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

202 satisfaction of the condition set out above, conversion to a contract under subsection 9(d) or 

203 9(c)(1), whichever is applicable. In the event such determination of costs has not been made at a 

204 time which allows conversion of this MOA during the term of this MOA or the Contractor has 

205 not requested conversion of this MOA within such term, the parties shall incorporate in any 

206 subsequent renewal contract as described in subdivision (b) of this Article a provision that carries 

207 forth in substantially identical terms the provisions of this subdivision. 

208 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

211 this MOA, the Contracting Officer shall furnish a replacement supply of up to 45 acre-feet of 
Contract No. 14-06-200-3621A-LTR1 

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212 Project Water in Stony Creek below the confluence of Salt and Stony Creeks for the water 

213 diverted by the Contractor for M&I purposes. Water Delivered to the Contractor in accordance 

214 with this subdivision shall be scheduled and paid for pursuant to the provisions of Articles 4 and 

215 7 of this MOA. 

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

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

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

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

220 Article in any given Year is uncertain. The Contracting Officer’s modeling referenced in the 

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

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

223 water made available to the Contractor was 41 acre-feet. Nothing in subdivision (b) of this 

224 Article shall affect the rights and obligations of the parties under any provision of this MOA. 

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

226 applicable legal requirements. 

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

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

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

230 utilizing Project Water or other water furnished pursuant to this MOA conducted within the 

231 Contractor’s Service Area which are consistent with applicable State law and result in use 

232 consistent with Federal Reclamation law will be allowed; Provided, That any direct recharge 

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

234 Article 26 of this MOA; Provided, further, That such water conservation plan demonstrates 
Contract No. 14-06-200-3621A-LTR1 

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

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

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

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

239 Water or other water furnished pursuant to this MOA conducted outside the Contractor’s Service 

240 Area may be permitted upon written approval of the Contracting Officer, which approval will be 

241 based upon environmental documentation, Project Water rights, and Project operational 

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

243 guidelines. 

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

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

246 of this MOA undertaken pursuant to Section 7 of the Endangered Species Act of 1973 (ESA), as 

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

248 which evidences in excess of 35 years of diversions for irrigation and/or M&I purposes of the 

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

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

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

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

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

254 Article. 

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

256 under Article 4 of this MOA, the Contracting Officer will make a determination whether Project 

257 Water, or other water available to the Project, can be made available to the Contractor in addition 
Contract No. 14-06-200-3621A-LTR1 

12 

258 to the Contract Total under Article 3 of this MOA during the Year without adversely impacting 

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

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

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

262 Contractor, the Contracting Officer will announce the availability of such water and shall so 

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

264 Contractor and other Project Contractors capable of taking such water to determine the most 

265 equitable and efficient allocation of such water. If the Contractor requests the delivery of any 

266 quantity of such water, the Contracting Officer shall make such water available to the Contractor 

267 in accordance with applicable statutes, regulations, guidelines, and policies. 

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

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

270 Year, referred to as “carryover.” The Contractor may request permission to use during the 

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

272 the Contractor during the subsequent Year, referred to as “preuse.” The Contracting Officer’s 

273 written approval may permit such uses in accordance with applicable statutes, regulations, 

274 guidelines, and policies. 

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

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

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

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

279 obligations under this MOA and any renewals thereof. Nothing in the preceding sentence shall 
Contract No. 14-06-200-3621A-LTR1 

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

281 Article 12 of this MOA or applicable provisions of any subsequent renewal contracts. 

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

283 delivered for other than M&I purposes upon written approval by the Contracting Officer in 

284 accordance with the terms and conditions of such approval. 

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

286 rights necessary for the Project and to provide the water available under this MOA. The 

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

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

289 Provided, That the Contracting Officer retains the right to object to the substance of the 

290 Contractor’s position in such a proceeding; Provided further, That in such proceedings the 

291 Contracting Officer shall recognize the Contractor has a legal right under the terms of this MOA 

292 to use Project Water. 

293 TIME FOR DELIVERY OF WATER

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

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

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

297 Historic Average and will be updated monthly, and more frequently if necessary, based on then298 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

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

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

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

302 Contracting Officer shall provide the Contractor with the updated Recent Historic Average. 
Contract No. 14-06-200-3621A-LTR1 

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

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

305 Contracting Officer, showing the monthly quantities of Project Water to be delivered by the 

306 United States to the Contractor pursuant to this MOA for the Year commencing on such 

307 March 1. The Contracting Officer shall use all reasonable means to deliver Project Water 

308 according to the approved schedule for the Year commencing on such March 1. 

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

310 of Project Water the Contractor intends to put to reasonable and beneficial use within the 

311 Contractor's Service Area or to sell, transfer, or exchange pursuant to Article 9 of this MOA 

312 during any Year. 

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

314 MOA, the United States shall deliver Project Water to the Contractor in accordance with the 

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

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

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

318 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

320 MOA shall be delivered below the confluence of Salt and Stony Creeks to replace water diverted 

321 by the Contractor at approved points of diversion on Salt Creek and any additional point or 

322 points of delivery mutually agreed to in writing by the Contracting Officer and the Contractor. 

323 (b) Omitted. 

324 (c) Omitted. 
Contract No. 14-06-200-3621A-LTR1 

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

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

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

328 Article. Upon the request of either party to this MOA, the Contracting Officer shall investigate 

329 the accuracy of such measurements and shall take any necessary steps to adjust any errors 

330 appearing therein. For any period of time when accurate measurements have not been made, the 

331 Contracting Officer shall consult with the Contractor prior to making a final determination of the 

332 quantity delivered for that period of time. 

333 (e) The Contracting Officer shall not be responsible for the control, carriage, 

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

335 MOA beyond the delivery points specified in subdivision (a) of this Article. 

336 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

338 Contracting Officer. The Contractor shall ensure that all surface water delivered for M&I 

339 purposes within the Contractor’s Service Area is measured at each M&I service connection. The 

340 water measuring devices or water measuring methods of comparable effectiveness must be 

341 acceptable to the Contracting Officer. The Contractor shall be responsible for installing, 

342 operating, and maintaining and repairing all such measuring devices and implementing all such 

343 water measuring methods at no cost to the United States. The Contractor shall use the 

344 information obtained from such water measuring devices or water measuring methods to ensure 

345 its proper management of the water, to bill water users for water delivered by the Contractor; 

346 and, if applicable, to record water delivered for M&I purposes by customer class as defined in 

347 the Contractor’s water conservation plan provided for in Article 26 of this MOA. Nothing herein 
Contract No. 14-06-200-3621A-LTR1 

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

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

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

351 (c) of Article 26. 

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

353 execution of this MOA, the Contractor shall provide to the Contracting Officer a written report 

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

355 implement subdivision (a) of this Article and identifying the M&I service connections or 

356 alternative measurement programs approved by the Contracting Officer, at which such 

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

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

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

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

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

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

363 Contracting Officer notifies the Contractor that the measuring devices or methods are 

364 inadequate, the parties shall within 60 days following the Contracting Officer‘s response, 

365 negotiate in good faith the earliest practicable date by which the Contractor shall modify said 

366 measuring devices and/or measuring methods as required by the Contracting Officer to ensure 

367 compliance with subdivision (a) of this Article. 

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

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

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

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

373 within the Contractor’s Service Area during the previous Year. 

 (e) The Contractor shall inform the Contracting Officer on or before the 20th 374 

375 calendar day of each month of the quantity of M&I Water taken during the preceding month. 

376 RATES AND METHOD OF PAYMENT FOR WATER

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

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

379 accordance with (i) the Secretary’s then-existing ratesetting policy for M&I Water. Such 

380 ratesetting policy shall be amended, modified, or superceded only through a public notice and 

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

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

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

384 in writing by the Contractor and the Contracting Officer. The Rates, Charges, and Tiered Pricing 

385 Component applicable to the Contractor upon execution of this MOA are set forth in Exhibit 

386 “B,” as may be revised annually. 

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

388 and Tiered Pricing Component as follows: 

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

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

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

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

393 to review and comment on such estimates. On or before September 15 of each Calendar Year, 
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394 the Contracting Officer shall notify the Contractor in writing of the Charges to be in effect during 

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

396 Calendar Year, and such notification shall revise Exhibit “B.” 

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

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

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

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

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

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

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

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

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

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

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

408 to be delivered pursuant to this MOA during the first two calendar months of the Year. Before 

409 the end of the first month and before the end of each calendar month thereafter, the Contractor 

410 shall make an advance payment to the United States, at the Rate(s) set under subdivision (a) of 

411 this Article, for the Water Scheduled to be delivered pursuant to this MOA during the second 

412 month immediately following. Adjustments between advance payments for Water Scheduled 

413 and payments at Rates due for Water Delivered shall be made before the end of the following 

414 month; Provided, That any revised schedule submitted by the Contractor pursuant to Article 4 of 

415 this MOA which increases the amount of Water Delivered pursuant to this MOA during any 

416 month shall be accompanied with appropriate advance payment, at the Rates then in effect, to 
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417 assure that Project Water is not delivered to the Contractor in advance of such payment. In any 

418 month in which the quantity of Water Delivered to the Contractor pursuant to this MOA equals 

419 the quantity of Water Scheduled and paid for by the Contractor, no additional Project Water shall 

420 be delivered to the Contractor unless and until an advance payment at the Rates then in effect for 

421 such additional Project Water is made. Final adjustment between the advance payments for the 

422 Water Scheduled and payments for the quantities of Water Delivered during each Year pursuant 

423 to this MOA shall be made as soon as practicable, but no later than April 30th of the following 

424 Year, or 60 days after the delivery of Project Water carried over under subdivision (g) of Article 

425 3 of this MOA if such water is not delivered by the last day of February. 

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

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

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

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

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

431 consistent with the quantities of M&I Water Delivered as shown in the water delivery report for 

432 the subject month prepared by the Contracting Officer. The water delivery report shall be 

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

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

435 through the adjustment of payments due to the United States for Charges for the next month. 

436 Any amount to be paid for past due payment of Charges and the Tiered Pricing Component shall 

437 be computed pursuant to Article 20 of this MOA. 

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

439 (f), or (g) of Article 3 of this MOA as determined by the Contracting Officer pursuant to 
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440 applicable statutes, associated regulations, any applicable provisions of guidelines or ratesetting 

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

442 MOA shall be no more than the otherwise applicable Rate for M&I Water under subdivision (a) 

443 of this Article. 

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

445 MOA may be paid from any revenues available to the Contractor. 

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

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

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

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

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

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

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

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

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

455 disposition of all Project and Contractor revenues, and a summary of all water delivery 

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

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

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

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

460 policies, and procedures used for establishing Rates, Charges, and the Tiered Pricing 

461 Component, and/or for making and allocating payments, other than those set forth in this Article 

462 may be in the mutual best interest of the parties, it is expressly agreed that the parties may enter 
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463 into agreements to modify the mechanisms, policies, and procedures for any of those purposes 

464 while this MOA is in effect without amending this MOA. 

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

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

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

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

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

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

471 subdivision (a) of this Article and the M&I Full Cost Water Rate, whichever is applicable. The 

472 Tiered Pricing Component for the amount of Water Delivered which exceeds 90 percent of the 

473 Contract Total shall equal the difference between (i) the Rate established under subdivision (a) of 

474 this Article and (ii) the M&I Full Cost Water Rate. 

475 (2) Omitted. 

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

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

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

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

480 subdivision (f) of Article 3 of this MOA. 

481 (k) For the term of this MOA, Rates under the respective ratesetting policies 

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

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

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

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

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

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

488 proposed change. 
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489 (l) Except as provided in subsections 3405(a)(1)(B) and 3405(f) of the 

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

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

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

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

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

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

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

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

 

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

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

500 (n) With respect to the Rates for M&I water, the Contractor asserts that it is 

501 not legally obligated to pay any Project deficits claimed by the United States to have accrued as 

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

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

504 disputed issues. Notwithstanding the execution of this MOA and payments made hereunder, the 

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

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

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

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

509 application by the United States of payments made by the Contractor under its Existing Contract 

510 and any preceding interim renewal contracts, if applicable; and (5) the application of such 

511 payments in the Rates. The Contracting Officer agrees that the Contractor shall be entitled to the 
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512 benefit of any administrative or judicial ruling in favor of any Project M&I contractor on any of 

513 these issues, and credits for payments heretofore made, Provided, That the basis for such ruling 

514 is applicable to the Contractor. 

515 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

518 liability therefor. 

519 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

523 and applicable guidelines or regulations then in effect. No sale, transfer, or exchange of Project 

524 Water under this MOA may take place without the prior written approval of the Contracting 

525 Officer, except as provided for in subdivision (b) of this Article, and no such sales, transfers, or 

526 exchanges shall be approved absent all appropriate environmental documentation, including but 

527 not limited to, documents prepared pursuant to NEPA and ESA. Such environmental 

528 documentation should include, as appropriate, an analysis of ground-water impacts and 

529 economic and social effects, including environmental justice, of the proposed water transfers on 

530 both the transferor and transferee. 

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

532 transfers of the type historically carried out among Project Contractors located within the same 

533 geographical area and to allow the Contractor to participate in an accelerated water transfer 

534 program during the term of this MOA, the Contracting Officer shall prepare, as appropriate, all 
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535 necessary environmental documentation including, but not limited to, documents prepared 

536 pursuant to NEPA and ESA, analyzing annual transfers within such geographical areas, and the 

537 Contracting Officer shall determine whether such transfers comply with applicable law. 

538 Following the completion of the environmental documentation, such transfers addressed in such 

539 documentation shall be conducted with advance notice to the Contracting Officer, but shall not 

540 require prior written approval by the Contracting Officer. Such environmental documentation 

541 and the Contracting Officer’s compliance determination shall be reviewed every five years and 

542 updated, as necessary, prior to the expiration of the then-existing five-year period. All 

543 subsequent environmental documentation shall include an alternative to evaluate not less than the 

544 quantity of Project Water historically transferred within the same geographical area. 

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

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

547 years, for M&I use, ground-water recharge, water banking, similar ground-water activities, 

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

549 delivered to established cropland, wildlife refuges, ground-water basins or M&I use; (ii) occur 

550 within a single Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water 

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

552 existing Project Contractors and/or the Contractor and the United States, Department of the 

553 Interior; and (v) comply with all applicable Federal, State, and local or tribal laws and 

554 requirements imposed for protection of the environment and Indian Trust Assets, as defined 

555 under Federal law. 

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

557 CVPIA applies to the Contractor as a transferor or transferee of Project Water, the Contracting 
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558 Officer acknowledges that the Contractor is within a county, watershed, or other area of origin, 

559 as those terms are utilized under California law, of water that constitutes the natural flow of the 

560 Sacramento River and its tributaries above the confluence of the American and Sacramento 

561 Rivers. 

562 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

563 10. (a) The amount of any overpayment by the Contractor of the Contractor’s 

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

565 liabilities of the Contractor arising out of this MOA then due and payable. Overpayments of 

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

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

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

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

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

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

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

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

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

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

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

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

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

579 TEMPORARY REDUCTIONS--RETURN FLOWS

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

581 requirements of Federal law; and (ii) the obligations of the United States under existing 

582 contracts, or renewals thereof, providing for water deliveries from the Project, the Contracting 
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583 Officer shall make all reasonable efforts to optimize Project Water deliveries to the Contractor as 

584 provided in this MOA. 

585 (b) The Contracting Officer may temporarily discontinue or reduce the 

586 quantity of Water Delivered to the Contractor as herein provided for the purposes of 

587 investigation, inspection, maintenance, repair, or replacement of any of the Project facilities or 

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

589 feasible the Contracting Officer will give the Contractor due notice in advance of such temporary 

590 discontinuance or reduction, except in case of emergency, in which case no notice need be given; 

591 Provided, That the United States shall use its best efforts to avoid any discontinuance or 

592 reduction in such service. Upon resumption of service after such reduction or discontinuance, 

593 and if requested by the Contractor, the United States will, if possible, deliver the quantity of 

594 Project Water which would have been delivered hereunder in the absence of such discontinuance 

595 or reduction. 

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

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

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

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

600 pursuant to this MOA within the Contractor’s Service Area by the Contractor or those claiming 

601 by, through, or under the Contractor. 

602 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

605 available to the Contractor pursuant to this MOA. In the event the Contracting Officer 
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606 determines that a Condition of Shortage appears probable, the Contracting Officer will notify the 

607 Contractor of said determination as soon as practicable. 

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

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

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

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

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

613 (c) Omitted. 

614 (d) Project Water furnished under this MOA will be allocated in accordance 

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

616 modified, or superceded only through a public notice and comment procedure. 

617 (e) By entering into this MOA, the Contractor does not waive any legal rights 

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

619 contesting (i) the sufficiency of the manner in which any Project M&I Water Shortage Policy 

620 adopted after the effective date of this MOA was promulgated; (ii) the substance of such a 

621 policy; or (iii) the applicability of such a policy. By agreeing to the foregoing, the Contracting 

622 Officer does not waive any legal defenses or remedies that it may then have to assert in such a 

623 proceeding. 

624 UNAVOIDABLE GROUNDWATER PERCOLATION

625 13. Omitted. 

626 RULES AND REGULATIONS

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

628 pursuant to this MOA is subject to Federal Reclamation law, as amended and supplemented, and 
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629 the rules and regulations promulgated by the Secretary of the Interior under Federal Reclamation 

630 law. 

631 WATER AND AIR POLLUTION CONTROL

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

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

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

635 QUALITY OF WATER

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

637 to this MOA shall be operated and maintained to enable the United States to deliver Project 

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

639 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

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

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

642 of Water Delivered to the Contractor pursuant to this MOA. The United States does not warrant 

643 the quality of Water Delivered to the Contractor pursuant to this MOA. 

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

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

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

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

648 to surface and subsurface agricultural drainage discharges generated through the use of Federal 

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

650 Service Area. 

651 WATER ACQUIRED BY THE CONTRACTOR

652 OTHER THAN FROM THE UNITED STATES

653 17. Omitted. 
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654 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

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

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

664 regulation. 

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

666 necessary to administer this MOA that are consistent with the provisions of this MOA, the laws 

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

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

669 Contractor to the extent reasonably practicable. 

670 COORDINATION AND COOPERATION

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

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

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

674 Project. The communication, coordination, and cooperation regarding operations and 
Contract No. 14-06-200-3621A-LTR1 

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

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

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

678 coordination, and cooperation provided for hereunder shall extend to all provisions of this MOA. 

679 Each party shall retain exclusive decision making authority for all actions, opinions, and 

680 determinations to be made by the respective party. 

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

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

683 interested Project Contractors to develop a mutually agreeable, written Project-wide process, 

684 which may be amended as necessary separate and apart from this MOA. The goal of this process 

685 shall be to provide, to the extent practicable, the means of mutual communication and interaction 

686 regarding significant decisions concerning Project operation and management on a real-time 

687 basis. 

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

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

690 intent: 

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

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

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

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

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

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

697 supply, water quality, and reliability of the Project for all Project purposes. 
Contract No. 14-06-200-3621A-LTR1 

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

699 State of California to seek improved water resource management. 

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

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

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

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

704 management activities, and other issues as appropriate. 

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

706 under the other Articles of this MOA nothing in this Article shall be construed to limit or 

707 constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 

708 Contractor or other interested stakeholders or to make decisions in a timely fashion as needed to 

709 protect health, safety, or the physical integrity of structures or facilities. 

710 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

714 the due date. When a payment becomes sixty (60) days delinquent, the Contractor shall pay an 

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

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

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

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

719 associated with a delinquent payment. 

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

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

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

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

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

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

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

727 accrued interest, and finally to the overdue payment. 
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728 EQUAL OPPORTUNITY

729 21. Omitted. 

730 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

731 22. Omitted. 

732 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

733 23. Omitted. 

734 PRIVACY ACT COMPLIANCE

735 24. Omitted. 

736 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

737 25. In addition to all other payments to be made by the Contractor pursuant to this 

738 MOA, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

739 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

740 of direct cost incurred by the United States for work requested by the Contractor associated with 

741 this MOA plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

742 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

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

744 administration. 

745 WATER CONSERVATION

746 26. (a) Prior to the delivery of water provided from or conveyed through 

747 Federally constructed or Federally financed facilities pursuant to this MOA, the Contractor shall 

748 be implementing an effective water conservation and efficiency program based on the 

749 Contractor's water conservation plan that has been determined by the Contracting Officer to meet 

750 the conservation and efficiency criteria for evaluating water conservation plans established under 
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751 Federal law. The water conservation and efficiency program shall contain definite water 

752 conservation objectives, appropriate economically feasible water conservation measures, and 

753 time schedules for meeting those objectives. Continued Project Water delivery pursuant to this 

754 MOA shall be contingent upon the Contractor’s continued implementation of such water 

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

756 conservation plan completed pursuant to subdivision (d) of Article 26 of this MOA have not yet 

757 been determined by the Contracting Officer to meet such criteria, due to circumstances which the 

758 Contracting Officer determines are beyond the control of the Contractor, water deliveries shall be 

759 made under this MOA so long as the Contractor diligently works with the Contracting Officer to 

760 obtain such determination at the earliest practicable date, and thereafter the Contractor 

761 immediately begins implementing its water conservation and efficiency program in accordance 

762 with the time schedules therein. 

763 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

764 Article 3 of this MOA equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

765 the Best Management Practices identified by the time frames issued by the California Urban 

766 Water Conservation Council for such M&I Water unless any such practice is determined by the 

767 Contracting Officer to be inappropriate for the Contractor. 

768 (c) The Contractor shall submit to the Contracting Officer a report on the 

769 status of its implementation of the water conservation plan on the reporting dates specified in the 

770 then existing conservation and efficiency criteria established under Federal law. 

771 (d) At five-year intervals, the Contractor shall revise its water conservation 

772 plan to reflect the then-current conservation and efficiency criteria for evaluating water 

773 conservation plans established under Federal law and submit such revised water management 

774 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

775 determine if the water conservation plan meets Reclamation’s then-current conservation and 

776 efficiency criteria for evaluating water conservation plans established under Federal law. 
Contract No. 14-06-200-3621A-LTR1 

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777 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

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

779 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

780 27. Except as specifically provided in Article 17 of this MOA, the provisions of this 

781 MOA shall not be applicable to or affect non-Project water or water rights now owned or 

782 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

783 Area. Any such water shall not be considered Project Water under this MOA. In addition, this 

784 MOA shall not be construed as limiting or curtailing any rights which the Contractor or any 

785 water user within the Contractor's Service Area acquires or has available under any other 

786 contract pursuant to Federal Reclamation law. 

787 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

788 28. Omitted. 

789 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

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

791 the United States under this MOA shall be contingent upon appropriation or allotment of funds. 

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

793 obligations under this MOA. No liability shall accrue to the United States in case funds are not 

794 appropriated or allotted. 

795 BOOKS, RECORDS, AND REPORTS

796 30. (a) The Contractor shall establish and maintain accounts and other books and 

797 records pertaining to administration of the terms and conditions of this MOA, including: the 

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

799 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

800 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

801 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

802 Officer may require. Subject to applicable Federal laws and regulations, each party to this MOA 

803 shall have the right during office hours to examine and make copies of the other party's books 

804 and records relating to matters covered by this MOA. 

805 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED
Contract No. 14-06-200-3621A-LTR1 

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806 31. (a) The provisions of this MOA shall apply to and bind the successors and 

807 assigns of the parties hereto, but no assignment or transfer of this MOA or any right or interest 

808 therein shall be valid until approved in writing by the Contracting Officer. 

809 (b) The assignment of any right or interest in this MOA by either party shall 

810 not interfere with the rights or obligations of the other party to this MOA absent the written 

811 concurrence of said other party. 

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

813 approval of any proposed assignment. 

814 SEVERABILITY

815 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

816 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

817 an association or other form of organization whose primary function is to represent parties to 

818 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

819 enforceability of a provision included in this MOA and said person, entity, association, or 

820 organization obtains a final court decision holding that such provision is legally invalid or 

821 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

822 the parties to this MOA shall use their best efforts to (i) within 30 days of the date of such final 

823 court decision identify by mutual agreement the provisions in this MOA which must be revised, 

824 and (ii) within three months thereafter promptly agree on the appropriate revision(s). The time 

825 periods specified above may be extended by mutual agreement of the parties. Pending the 

826 completion of the actions designated above, to the extent it can do so without violating any 

827 applicable provisions of law, the United States shall continue to make the quantities of Project 

828 Water specified in this MOA available to the Contractor pursuant to the provisions of this MOA 

829 which were not found to be legally invalid or unenforceable in the final court decision. 

830 RESOLUTION OF DISPUTES

831 33. Should any dispute arise concerning any provisions of this MOA, or the parties’ 

832 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 
Contract No. 14-06-200-3621A-LTR1 

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833 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer 

834 referring any matter to Department of Justice, the party shall provide to the other party 30 days’ 

835 written notice of the intent to take such action; Provided, That such notice shall not be required 

836 where a delay in commencing an action would prejudice the interests of the party that intends to 

837 file suit. During the 30-day notice period, the Contractor and the Contracting Officer shall meet 

838 and confer in an attempt to resolve the dispute. Except as specifically provided, nothing herein is 

839 intended to waive or abridge any right or remedy that the Contractor or the United States may 

840 have. 

841 OFFICIALS NOT TO BENEFIT

842 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

843 Contractor shall benefit from this MOA other than as a water user or landowner in the same 

844 manner as other water users or landowners. 

845 CHANGES IN CONTRACTOR’S SERVICE AREA

846 35. (a) While this MOA is in effect, no change may be made in the Contractor's 

847 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or 

848 otherwise, except upon the Contracting Officer's written consent. 

849 (b) Within 30 days of receipt of a request for such a change, the Contracting 

850 Officer will notify the Contractor of any additional information required by the Contracting 

851 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

852 schedule for timely completion of the process. Such process will analyze whether the proposed 

853 change is likely to: (i) result in the use of Project Water contrary to the terms of this MOA; (ii) 

854 impair the ability of the Contractor to pay for Project Water furnished under this MOA or to pay 

855 for any Federally-constructed facilities for which the Contractor is responsible; and (iii) have an 

856 impact on any Project Water rights applications, permits, or licenses. In addition, the 

857 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

858 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

859 be paid in accordance with Article 25 of this MOA. 
Contract No. 14-06-200-3621A-LTR1 

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860 FEDERAL LAWS

861 36. By entering into this MOA, the Contractor does not waive its rights to contest the 

862 validity or application in connection with the performance of the terms and conditions of this 

863 MOA of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

864 terms and conditions of this MOA unless and until relief from application of such Federal law or 

865 regulation to the implementing provision of the Contract is granted by a court of competent 

866 jurisdiction. 

867 NOTICES

868 37. Any notice, demand, or request authorized or required by this MOA shall be 

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

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

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

872 mailed, postage prepaid, or delivered to the Forest Supervisor, United States Forest Service, 825 

873 North Humboldt Street, Willows, California 95988. The designation of the addressee or the 

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

875 notices. 

876 CONFIRMATION OF CONTRACT

877 38. Omitted. 
Contract No. 14-06-200-3621A-LTR1 

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878 IN WITNESS WHEREOF, the parties hereto have executed this MOA as of the day 

879 

880 and year first above written. 

881 THE UNITED STATES OF AMERICA 

882 By: ____________________________________________ 

883 Regional Director, Mid-Pacific Region 

884 Bureau of Reclamation 

885 UNITED STATES DEPARTMENT OF AGRICULTURE

886 By: ____________________________________________ 

887 Regional Forester 

888 (I:\LTRC\Draft LTRC\06-22-2004 Forest Service - Salt Creek Final LTRC Draft Contract.doc)
Contract No. 14-06-200-3621A-LTR1 

EXHIBIT A 

Map of Contractor’s Service Area

United States Forest Service – Black Butte Project
Contract No. 14-06-200-3621A-LTR1 

EXHIBIT B 

2004 Water Rates and Charges

United States Forest Service – Black Butte Project

 

 M&I 

COST OF SERVICE RATES:

Capital Rates $6.68 

O&M Rates: 

Water Marketing 5.01 

Storage 6.38 

Deficit Rates: 

Interest Bearing 0.00 

CFO/PRF Adj. Rate 2/ 0.00 

TOTAL $18.07 

M&I FULL-COST RATE: $22.05

 

CHARGES UNDER P.L. 102-575 TO THE

RESTORATION FUND 1/ 

Restoration Payments (3407(d)(2)(A)) $15.64 

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

pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges are on a fiscal year 

basis (10/1 - 9/30). 

2/ Chief Financial Officer (CFO) adjustment and Provision for Replacement (PFR) expense is 

being distributed over a 5-year period beginning in FY 2003 for those contractors that requested 

those costs be deferred.