Contract No.

14-06-200-5271A-IR5

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF RECLAMATION

Central Valley Project, California

INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES AND

THOMES CREEK WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals ............................................... 1

1 Definitions ....................................................... 4

2 Term of Contract - Right to Use of Water ............................... 7

3 Water to Be Made Available and Delivered to the Contractor .............. 12

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

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

6 Measurement of Water Within the District ............................. 17

7 Rates and Method of Payment for Water ............................... 19

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

9 Transfers or Exchanges of Water ..................................... 23

10 Application of Payments and Adjustments ............................. 24

11 Temporary Reductions--Return Flows ................................. 24

12 Water Shortage and Apportionment .................................. 25

13 Unavoidable Groundwater Percolation ................................ 26

14 Compliance with Federal Reclamation Law ............................ 27

15 Water and Air Pollution Control ..................................... 27

16 Quality of Water .................................................. 27

17 Water Acquired by the Contractor Other than from the United States ........ 28

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

19 Charges for Delinquent Payments .................................... 29

20 Equal Opportunity ................................................ 30
Article No. Title Page No.

21 General Obligation--Benefits Conditioned Upon Payment ................. 31

22 Compliance with Civil Rights Laws and Regulations ..................... 32

23 Privacy Act Compliance ........................................... 32

24 Contractor to Pay Certain Miscellaneous Costs .......................... 33

25 Water Conservation ............................................... 33

26 Existing or Acquired Water or Water Rights ............................ 35

27 Operation and Maintenance by Non-Federal Entity ....................... 36

28 Contingent on Appropriation or Allotment of Funds ..................... 37

29 Books Records and Reports ......................................... 37

30 Assignment Limited--Successors and Assigns Obligated .................. 38

31 Severability ..................................................... 38

32 Officials Not to Benefit ............................................ 39

33 Changes in Contractor's Boundaries .................................. 39

34 Notices ......................................................... 39

Signature Page ................................................... 40

Exhibit A

Exhibit B
1 Contract No.

2 14-06-200-5271A-IR5

3

4 UNITED STATES

5 DEPARTMENT OF THE INTERIOR

6 BUREAU OF RECLAMATION

7 Central Valley Project, California

8

9 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

10 AND

11 THOMES CREEK WATER DISTRICT

12 PROVIDING FOR PROJECT WATER SERVICE

13

THIS CONTRACT, made this 6th 14 day of March 2001, in pursuance

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

16 thereto, including, but not limited to, the acts of August 26, 1937 (50 Stat. 844), as amended and

17 supplemented, August 4, 1939 (53 Stat. 1187), as amended and supplemented, July 2, 1956 (70

18 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1262), as amended and Title

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

20 the Federal Reclamation law, between THE UNITED STATES OF AMERICA, hereinafter

21 referred to as the United States, and THOMES CREEK WATER DISTRICT, hereinafter referred

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

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

24 WITNESSETH, That:

25 EXPLANATORY RECITALS

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

27 Project, California for diversion, storage, carriage, distribution and beneficial use, for flood

28 control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection and
2

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

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

3 the San Joaquin River and their tributaries; and

4 WHEREAS, the United States constructed the Red Bluff Diversion Dam, and

5 Corning Canal and related delivery facilities including pumping plants, hereinafter collectively

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

7 Contractor pursuant to the terms of this interim renewal contract; and

8 WHEREAS, the Contractor and the United States entered into Contract No. 14-

9 06-200-5271A on February 10, 1971, which provided the Contractor Central Valley Project

10 water from the Canal Facilities to February 28, 1995, and under which the initial date of water

11 delivery was April 1, 1971; and

12 WHEREAS, the Contractor and the United States entered into interim renewal

13 contract(s) identified as Contract No(s). 14-06-200-5271A-IR1, 14-06-200-5271A-IR2, as

14 amended, 14-06-200-5271A-IR3, and 14-06-200-5271A-IR4, the latter of which is hereinafter

15 referred to as the Existing Interim Renewal Contract, which provided for the continued water

16 service to the Contractor from December 1, 2000 through February 28, 2001; and

17 WHEREAS, the Contractor has requested a subsequent interim renewal contract

18 pursuant to the Existing Interim Renewal Contract, Federal Reclamation law and the laws of the

19 State of California, for water service from the Central Valley Project; and

20 WHEREAS, the United States has determined that the Contractor has to date

21 fulfilled all of its obligations under the Existing Interim Renewal Contract; and
3

1 WHEREAS, The Contracting Officer has determined that the Contractor has the

2 capability to fully utilize for reasonable and beneficial use, or shown projected future reasonable

3 and beneficial use for, the quantity of Project Water to be made available to it pursuant to this

4 interim renewal contract; and

5 WHEREAS, rights of renewal of Contract No. 14-06-200-5271A, and to convert

6 said contract to a contract as provided by subsection (d), Section 9 of the Act of August 4, 1939

7 (53 Stat. 1187) are set forth in said contract; and

8 WHEREAS, Section 3404 of the CVPIA, precludes long-term renewal of water

9 service contracts until the completion of appropriate environmental documentation, including a

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

11 Policy Act analyzing the direct and indirect impacts and benefits of implementing the CVPIA

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

13 WHEREAS, in order to continue water service provided under Project water

14 service contracts that expire prior to the completion of the PEIS, the United States intends to

15 execute interim renewal contracts for a period not to exceed three (3) Years in length, and for

16 successive interim periods of not more than two (2) Years in length, until appropriate

17 environmental documentation, including the PEIS, is finally completed, at which time the

18 Secretary shall, pursuant to Federal Reclamation law, upon request of the Contractor, enter into a

19 long-term renewal contract for a period of twenty-five (25) Years; and may thereafter renew such

20 long-term renewal contracts for successive periods not to exceed twenty-five (25) Years each;

21 and
4

1 WHEREAS, the Secretary intends to assure uninterrupted water service and

2 continuity of contract through the process set forth in Article 2 hereof; and

3 WHEREAS, the United States is willing to renew the Existing Interim Renewal

4 Contract pursuant to section 3404(c)(1) of the CVPIA on the terms and conditions set forth

5 below.

6 NOW, THEREFORE, in consideration of the mutual and dependent covenants

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

8 DEFINITIONS

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

10 incompatible with the intent hereof, the term:

11 (a) "Calendar Year" shall mean the period January 1 through December 31,

12 both dates inclusive;

13 (b) "Charges" shall mean the payments in addition to the Rates determined

14 annually by the Contracting Officer, required by the Federal Reclamation law, including

15 Section 3407 of the CVPIA;

16 (c) "Contractor's Boundaries" shall mean the area to which the Contractor is

17 permitted to provide Project Water under this interim renewal contract identified in

18 Exhibit "A", which area and exhibit may be revised without amending this contract if

19 such revisions are acceptable to the Contracting Officer;

20 (d) "CVPIA" shall mean the Central Valley Project Improvement Act, Title

21 XXXIV of the Act of October 30, 1992 (106 Stat. 4706);
5

1 (e) "Delivered Water" shall mean Project Water made available to 

2 the Contractor and diverted at the point(s) of delivery approved by the Contracting

3 Officer;

4 (f) "Eligible Lands" shall mean all lands to which Irrigation Water may be

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

6 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA;

7 (g) "Excess Lands" shall mean all lands defined as excess in Section 204 of

8 the RRA, other than those lands exempt from acreage limitation under Federal

9 Reclamation law;

10 (h) "Full Cost Rate" shall mean that water rate described in Sections 205(a)(3)

11 or 202(3) of the RRA, whichever is applicable;

12 (i) "Ineligible Lands" shall mean all lands to which Irrigation Water may not

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

14 (j) "Irrigation Water" shall mean Project Water which is used primarily in the

15 production of agricultural crops or livestock, including domestic use incidental thereto,

16 and watering of livestock;

17 (k) "Landholder" shall mean an individual or entity attributed with the total

18 irrigable acreage of one or more tracts of land situated in one or more districts owned

19 and/or operated under a lease which is served with Irrigation Water pursuant to a contract

20 with the United States;
6

1 (l) "M&I Water" shall mean water made available from the Project other than

2 Irrigation Water. M&I Water shall include water used for purposes such as the watering

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

4 or water delivered to landholdings operated in units of less than five (5) acres unless the

5 Contractor establishes to the satisfaction of the Contracting Officer that the use of water

6 delivered to any such landholding is a use described in subdivision (j) of this Article;

7 (m) "O&M" shall mean normal and reasonable care, control, operation, repair,

8 replacement and maintenance of Project facilities;

9 (n) "Operating Non-Federal Entity" shall mean a Non-Federal entity which

10 has the obligation to operate and maintain all or a portion of the Canal Facilities pursuant

11 to an agreement with the United States;

12 (o) "Project" shall mean the Central Valley Project owned by the United

13 States and operated by the Department of the Interior, Bureau of Reclamation;

14 (p) "Project Water" shall mean all water that is developed, diverted, stored, or

15 delivered by the United States in accordance with the statutes authorizing the Project and

16 in accordance with the terms and conditions of applicable water rights permits and

17 licenses acquired by and/or issued to the United States pursuant to California law;

18 (q) "Rates" shall mean the payments determined annually by the Contracting

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

20 Project;
7

1 (r) "Secretary" or "Contracting Officer" shall mean the Secretary of the

2 United States Department of the Interior or his duly authorized representative;

3 (s) "Year" shall mean the period from and including March 1 of each

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

5 TERM OF CONTRACT - RIGHT TO USE OF WATER

6 2. (a) This interim renewal contract shall be effective from March 1, 2001 and

7 shall remain in effect through February 28, 2002, and thereafter will be renewed as described in

8 this article. Except as provided in subdivision (b) of this Article, until completion of all

9 appropriate environmental review, and provided that the Contractor has complied with all the

10 terms and conditions of the interim renewal contract in effect for the period immediately

11 preceding the requested successive interim renewal contract, this interim renewal contract will be

12 renewed, upon request of the Contractor, for successive interim periods each of which shall be no

13 more than two (2) Years in length. Also, except as provided in subdivision (b) of this Article, in

14 order to promote orderly and cost effective contract administration, the terms and conditions in

15 subsequent interim renewal contracts shall be identical to the terms and conditions in the interim

16 renewal contract immediately preceding the subsequent interim renewal contract: Provided,

17 however, That each party preserves the right to propose modification(s) in any interim renewal

18 contract other than those described in subdivision (b) of this Article, in which case the parties

19 shall negotiate in good faith appropriate modification(s) to be included in any successive interim

20 renewal contracts. Said modification(s) of each successive interim renewal contract shall be

21 agreed upon within a reasonable time prior to the expiration of the then existing interim renewal

22 contract. Nothing in this Article shall in any way alter the obligation that, upon final completion
8

1 of the PEIS and any necessary supplemental environmental documentation, the Secretary shall,

2 pursuant to Federal Reclamation law, upon request of the Contractor, enter into a long-term

3 renewal contract for a period of twenty-five (25) Years and may thereafter renew such long-term

4 renewal contracts for successive periods not to exceed twenty-five (25) Years each. The

5 Contractor asserts that Contract No. 14-06-200-5271A and existing law go beyond the preceding

6 sentence to give it enforceable rights to successive long-term renewal contracts. The Contracting

7 Officer disagrees with that assertion. The parties agree that this interim renewal contract

8 preserves the rights and positions of the parties and that the omission of language in this interim

9 renewal contract setting out the rights asserted by the Contractor to successive renewals is not

10 intended to be, nor shall it be interpreted as, a waiver of any such rights to the extent any such

11 rights are later determined to exist by a court of competent jurisdiction or by mutual agreement of

12 the parties. If a court of competent jurisdiction or the parties by mutual agreement determine that

13 incorporation of such language in this interim renewal contract is necessary to preserve such

14 rights, this interim renewal contract shall be construed as incorporating such language as though

15 fully set forth herein as of the effective date hereof.

16 (b) The parties anticipate that they will engage in good faith negotiations

17 intended to permit the execution of a twenty-five (25) Year long-term renewal contract

18 contemplated by Section 3404 (c) of the CVPIA, hereinafter referred to as a “long-term renewal

19 contract”, by the end of the term hereof. The parties recognize the possibility that this schedule

20 may not be met. Accordingly: 
9

1 (1) In the event (i) the Contractor and Contracting Officer have

2 reached agreement on the terms of the Contractor’s long-term renewal contract or (ii) the

3 Contractor and Contracting Officer have not completed the negotiations on the Contractor’s

4 long-term renewal contract, believe that further negotiations on that contract would be beneficial,

5 and mutually commit to continue to negotiate to seek to reach agreement, but (iii) all

6 environmental documentation required to allow execution of the Contractor’s long-term renewal

7 contract by both parties has not been completed in time to allow execution of the Contractor’s

8 long-term renewal contract by November 30, 2001, then (iv) the parties will expeditiously

9 complete the environmental documentation required of each of them in order to execute the

10 Contractor’s long-term renewal contract at the earliest practicable date. In addition, the

11 Contractor’s then current interim renewal contract will be renewed without change upon the

12 request of either party through the agreed-upon effective date of the Contractor’s long-term

13 renewal contract or, in the absence of agreement on the terms of the Contractor’s long-term

14 renewal contract, through the succeeding February 28.

15 (2) Provided that this interim renewal contract is not subject to

16 renewal under the terms described in subdivision (1) of this Article, if a party determines that the

17 parties have reached an impasse which they have been unable to resolve and which precludes

18 agreement on the long-term renewal contract, that party may notify the other that it has concluded

19 that there is no reasonable likelihood of reaching agreement on the terms of a long-term renewal

20 contract. In the event of such notice, the parties will immediately agree to a schedule and process

21 for negotiating the terms (other than any terms that would impair continuity of water supply or
10

1 continuity of contract) of and executing an interim renewal contract; provided that neither party

2 will propose for inclusion in the interim renewal contract any provision not previously included

3 in an existing interim renewal contract which it had previously proposed for inclusion in the

4 long-term renewal contract and which was the subject of an impasse in the long-term renewal

5 contract negotiations. The schedule will provide for completion of the negotiations of the terms

6 of that contract by February 1, 2002, and for execution of the contract on or about February 15,

7 2002. The parties each acknowledge the right of either party to seek judicial relief in connection

8 with any impasse reached in connection with negotiation of the long-term renewal contract

9 and/or an interim renewal contract that would become effective on or after February 28, 2002.

10 (c) The parties acknowledge that the Contractor asserts that it is entitled as a

11 matter of law to an interim renewal contract of longer duration than twelve (12) months, and that

12 the Contracting Officer asserts that it is under no obligation to provide the Contractor with an

13 interim renewal contract of any particular duration. Accordingly, the parties further acknowledge

14 that (i) the foregoing process represents a mutual accommodation to facilitate their joint desire to

15 proceed with the development of a long-term renewal contract in an expeditious and orderly

16 manner, (ii) they each preserve their respective rights and positions relative to the entitlement of

17 the Contractor to subsequent interim renewal contracts should they become necessary, and the

18 terms thereof, and (iii) their agreement to the process and interim renewal contract terms

19 described above is in no way intended to be, nor will it be interpreted as, a waiver of any such

20 rights or positions, all of which are and will be expressly preserved.
11

1 (d) The omission of language in this interim renewal contract providing for

2 conversion of this interim renewal contract or any subsequent renewals thereof to a repayment

3 contract, pursuant to the Act of July 2, 1956 (70 Stat. 483), shall not prejudice the Contractor's

4 right to assert a right to have such language included in subsequent renewals of this interim

5 renewal contract or to exercise such conversion, all as provided by law, or to negotiate the

6 language regarding such conversion to be included in subsequent renewal contracts.

7 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

8 3. (a) Subject to the provisions set forth in Articles 11 and 12 hereof, and

9 consistent with applicable State water rights, permits and licenses, the Contractor is entitled to,

10 and the Contracting Officer shall be obligated to make available to the Contractor up to 6,400

11 acre-feet of Project Water for irrigation and/or municipal and industrial purposes during the term

12 of this interim renewal contract. The quantity of Project Water delivered to the Contractor in

13 accordance with this Article 3(a) in any Year shall be scheduled and paid for pursuant to the

14 provisions of Articles 4 and 7 hereof, and shall not exceed the quantity of Project Water the

15 Contractor intends to put to reasonable beneficial use within the Contractor's Boundaries or sold,

16 transferred, or exchanged pursuant to Article 9 during the term of this interim renewal contract.
12

1

2 (b) The Contractor shall utilize the Project Water made available to it pursuant

3 to this interim renewal contract in accordance with all applicable requirements of any Biological

4 Opinion addressing the execution of this interim renewal contract developed pursuant to Section

5 7 of the Endangered Species Act of 1973 as amended, and in accordance with environmental

6 documentation as may be required for specific activities, including conversion of Irrigation Water

7 to M&I Water.

8 (c) The Contractor shall make reasonable and beneficial use of Project Water

9 or other water furnished pursuant to this interim renewal contract.

10 (d) If the Contracting Officer determines that Project Water, or other water

11 available to the Project, can be made available to the Contractor in addition to the quantity of

12 Project Water made available to the Contractor pursuant to subdivision (a) of this Article, the

13 Contracting Officer shall so notify the Contractor. If the Contractor requests the delivery of any

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

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

16 (e) If the Contractor requests permission to reschedule for use during the

17 subsequent Year some or all of the Project Water made available to the Contractor during the

18 current Year or to use, during the current Year, that quantity of Project Water the United States

19 has agreed to make available to the Contractor during the subsequent Year, the Contracting

20 Officer may permit such uses in accordance with applicable statutes, regulations, guidelines and

21 policies.
13

1 (f) The Contractor's right pursuant to Federal Reclamation law and applicable

2 State law to the beneficial use of water furnished pursuant to this interim renewal contract, any

3 subsequent interim renewal contract and, as described in Article 2(a), any long-term renewal

4 contract, shall not be disturbed so long as the Contractor shall fulfill all of its obligations under

5 this interim renewal contract and any such renewal thereof. Nothing in the preceding sentence

6 shall affect the Contracting Officer's ability to impose shortages under Article 12(b) of this

7 interim renewal contract and the applicable provisions of any such renewal thereof.

8 (g) Notwithstanding subdivisions (j) and (l) of Article 1, Project Water

9 furnished to the Contractor pursuant to this interim renewal contract may be delivered for

10 purposes other than those described in subdivisions (j) and (l) of Article 1 upon written approval

11 by the Contracting Officer in accordance with the terms and conditions of such approval.

12 (h) The Contractor may request, in writing, and the Contracting Officer may

13 approve, in writing, the Contractor's first or initial use of any Project Water to which it is entitled

14 under subdivision (a) of this Article 3 as M&I Water; Provided, that any requirements of Federal

15 Law, including without limitation those set forth in subdivision (b) of Article 3 which apply to

16 the delivery and use of such quantities of Project Water as M&I Water have been met; Provided

17 further, That no additional approval of the Contracting Officer shall be required for the

18 continuing use of water as M&I Water.

19 TIME FOR DELIVERY OF WATER

20 4. (a) On or about February 15, of each Calendar Year, the Contracting Officer

21 shall declare the amount of Project Water estimated to be made available to the Contractor
14

1 pursuant to this interim renewal contract for the upcoming Year. The declaration will be updated

2 monthly, as necessary, based on current hydrologic conditions. The Contracting Officer shall

3 make available the forecast of Project operations, with relevant supporting information, upon the

4 written request of the Contractor or its representatives. Upon written request of the Contractor,

5 the Contracting Officer shall provide the basis of the estimate which shall include, but not be

6 limited to, a monthly pumping forecast for the O'Neill Pumping Plant, the projected carryover of

7 Project reservoirs, projected CVPIA impacts, projected Endangered Species Act and all other

8 regulatory impacts.

9 (b) On or before each March 1, the Contractor shall submit to the Contracting

10 Officer and at such other times as necessary, a written schedule, satisfactory to the Contracting

11 Officer, showing the times, and quantities of Project Water to be delivered by the United States

12 to the Contractor during the upcoming Year pursuant to this interim renewal contract, and,

13 consistent with subdivision (a) of Article 3 herein.

14 (c) Subject to the conditions set forth in subdivision (a), Article 3, the United

15 States shall deliver Project Water to the Contractor in accordance with the initial schedule

16 submitted by the Contractor pursuant to subdivision (b) of this Article, or any revision(s) thereto

17 submitted within a reasonable time prior to the date(s) on which the requested change(s) is/are to

18 be implemented.

19 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

20 5. (a) The Project Water to be furnished to the Contractor pursuant to this

21 interim renewal contract shall be made available to the Contractor at approved turnouts on the
15

1 Canal Facilities and any additional point or points of delivery either on Project facilities or

2 another location or locations mutually agreed to in writing by the Contracting Officer and the

3 Contractor. The United States shall furnish such power as may be necessary to pump Project

4 Water at the existing Corning Canal side pumping plants and at existing relift stations at heads

5 and elevations sufficient to irrigate by gravity all areas within the Contractor's Boundaries below

6 elevation 350 (MSL).

7 (b) The Contracting Officer shall make all reasonable efforts to maintain

8 sufficient flows and levels of water in the Canal Facilities to furnish Project Water to the

9 Contractor at the full design capacity of the turnout(s) established as a delivery point(s) pursuant

10 to subdivision (a) of this Article. The parties acknowledge that it may be necessary from time to

11 time to shut down the canal for maintenance or emergencies. Except in the case of emergency,

12 the Contracting Officer shall consult with the Contractor to schedule the shut down at such times

13 and for such duration as will allow for the work to be accomplished completely and efficiently,

14 and with a minimum of disruption of water service to the Contractor. In this regard, shut downs

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

16 (c) Irrigation Water furnished to the Contractor pursuant to this interim

17 renewal contract shall be delivered by the Contractor in accordance with any applicable land

18 classification provisions of Federal Reclamation law and the associated regulations. Project

19 Water shall not be delivered to land outside the Contractor's Boundaries unless approved in

20 advance by the Contracting Officer.
16

1 (d) All Project Water delivered to the Contractor pursuant to this interim

2 renewal contract shall be measured and recorded with equipment furnished, installed, operated

3 and maintained by the United States or the responsible Operating Non-Federal Entity at the point

4 or points of delivery established pursuant to subdivision (a) of this Article. Upon the request of

5 either party to this interim renewal contract, the Contracting Officer shall investigate the accuracy

6 of such measurements and shall take any necessary steps to adjust any errors appearing therein. 

7 The Contractor shall advise the Contracting Officer on or before the 10th calendar day of each

8 month of the quantity of M&I Water taken during the preceding month.

9 (e) Neither the United States nor any Operating Non-Federal Entity shall be

10 responsible for the control, carriage, handling, use, disposal, or distribution of Project Water

11 made available to the Contractor pursuant to this interim renewal contract beyond the delivery

12 points specified in subdivision (a) of this Article. The Contractor shall indemnify the United

13 States its officers, employees, agents and assigns on account of damage or claim of damage of

14 any nature whatsoever for which there is legal responsibility, including property damage,

15 personal injury or death arising out of or connected with the control, carriage, handling, use,

16 disposal, or distribution of such Project Water beyond such delivery points, except for any

17 damage or claim arising out of (i) acts performed by the United States or any of its officers,

18 employees, agents or assigns, including any responsible Operating Non-Federal Entity, with the

19 intent of creating the situation resulting in any damage or claim, (ii) willful misconduct of the

20 United States or any of its officers, employees, agents, or assigns, including any responsible
17

1 Operating Non-Federal Entity, or (iii) negligence of the United States or any of its officers,

2 employees, agents or assigns including any responsible Operating Non-Federal Entity.

3 MEASUREMENT OF WATER WITHIN THE DISTRICT

4 6. (a) As of the date hereof, the Contractor measures all deliveries of Irrigation

5 Water at its agricultural turnouts, and the Contracting Officer acknowledges that such water

6 measurement devices are acceptable and are in use. All new Project Water delivery systems

7 installed within the Contractor's Boundaries after the effective date of this interim renewal

8 contract shall also be equipped with water measuring devices acceptable to the Contracting

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

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

11 cost to the United States. The Contractor shall use the information obtained from such water

12 measuring devices or water measuring methods to ensure proper management of the water; to bill

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

14 municipal and industrial purposes by customer class as defined in its water conservation plan. 

15 Nothing herein contained, however, shall preclude the Contractor from establishing and

16 collecting any charges, assessments or other revenues authorized by California law. The

17 Contractor shall include a summary of its annual surface water deliveries in the annual report

18 described in Article 25(d).

19 (b) Omitted.
18

1 (c) All new Project Water delivery systems installed within the Contractor's

2 Boundaries after the effective date of this interim renewal contract shall also comply with the

3 measurement provisions described in subdivision (a) of this Article.

4 (d) The Contractor shall inform the Contracting Officer and the State of

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

6 within the Contractor's Boundaries during the previous Year.

7 (e) The Contractor shall be responsible for ascertaining and reporting to the

8 Contracting Officer whether Delivered Water is put to use as Irrigation Water or M&I Water,

9 irrespective of the size of the landholding where the water is used, so that the Contracting Officer

10 can apply the appropriate Rates and Charges.

11 RATES AND METHOD OF PAYMENT FOR WATER

12 7. (a) The Contractor shall pay the United States in monthly payments as

13 provided in this Article for the quantities of Delivered Water furnished to the Contractor pursuant

14 to this interim renewal contract. Such payments shall consist of the applicable Rates and

15 Charges determined annually in accordance with applicable Federal law and associated

16 regulations. The Rates and Charges applicable upon execution of this interim renewal contract

17 are set forth in Exhibit "B."

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

19 Charges as follows:

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

21 shall provide the Contractor the preliminary calculation of the Charges that will be applied for
19

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

2 Calendar Year, and identify the statutes, regulations and guidelines used as the basis for such

3 calculations. On or before September 15, of each Calendar Year, the Contracting Officer shall

4 notify the Contractor in writing of the Charges to be in effect during the period October 1, of the

5 current Calendar Year, through September 30, of the following Calendar Year, and such

6 notification shall revise Exhibit "B."

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

8 shall make available to the Contractor an estimate of the Rates of payment for the following Year

9 and the computations and cost allocations upon which those Rates are based. The Contractor

10 shall be allowed not less than two months to review and comment on such computations and cost

11 allocations. By December 31 of each Calendar Year, the Contracting Officer shall provide the

12 Contractor with the final Rates to be in effect for the upcoming Year, and such notification shall

13 revise Exhibit "B."

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

15 Project Water for each Year pursuant to Article 4(b) of this interim renewal contract, the

16 Contractor shall pay the United States the total amount payable pursuant to the applicable Rate(s)

17 for all Project Water scheduled to be delivered pursuant to this interim renewal contract during

18 the first two (2) calendar months of the Year. Before the end of the first month or part thereof of

19 the Year, and before the end of each calendar month thereafter, the Contractor shall pay pursuant

20 to the applicable Rate(s) for all Project Water scheduled to be delivered pursuant to this interim

21 renewal contract during the second month immediately following. Adjustments between the
20

1 payments for the scheduled amount of Project Water and the appropriate payments for quantities

2 of Delivered Water furnished pursuant to this interim renewal contract each month shall be made

3 before the end of the following month: Provided, That any revised schedule submitted by the

4 Contractor pursuant to Article 4 which increases the amount of Project Water to be delivered

5 pursuant to this interim renewal contract during any month shall be accompanied with

6 appropriate payment for Rates to assure that Project Water is not furnished to the Contractor in

7 advance of such payment. In any month in which the quantity of Delivered Water furnished to

8 the Contractor pursuant to this interim renewal contract equals the quantity of Project Water

9 scheduled and paid for by the Contractor, no additional Project Water shall be made available to

10 the Contractor unless and until payment of Rates for such additional Project Water is made. 

11 Final adjustment between the payments of Rates for the Project Water scheduled and the

12 quantities of Delivered Water furnished during each Year pursuant to its contract shall be made

13 as soon as possible but no later than April 30th of the following Year.

14 (d) The Contractor shall pay all Charges owing for Delivered Water before the

15 end of the month following the month of delivery. Such amounts shall be consistent with the

16 quantities of Irrigation Water and M&I Water shown in the United States' water delivery report

17 for the subject month. The water delivery report shall be regarded by the Contractor as a bill for

18 the payment of appropriate Charges. Any monthly adjustment for overpayment or underpayment

19 of Charges shall be accomplished through the adjustment of Charges due to the United States in

20 the next month. By March 31, of each Year, the Contractor shall make any additional payment

21 of Charges it is obligated to make for Delivered Water furnished to the Contractor pursuant to its
21

1 contract for the previous Year. The amount to be paid for past due payment of Charges shall be

2 computed pursuant to Article 19 of this interim renewal contract.

3 (e) The Contractor shall pay for any Project Water provided under Article 3(d)

4 or 3(e) as determined by the Contracting Officer pursuant to applicable statutes, regulations,

5 guidelines and policies.

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

7 interim renewal contract may be paid from any revenues available to the Contractor.

8 (g) Revenues received by the United States pursuant to this interim renewal

9 contract shall be allocated and applied in accordance with Federal Reclamation law, including

10 but not limited to, subsection 3 of Section 1 of the Act of July 2, 1956 (70 Stat. 483), and

11 subsection (f) of Section 3405, subsection (c)(1) of Section 3406 and subsection (d)(2)(A) of

12 Section 3407 of the CVPIA, and the associated regulations, including but not limited to, the

13 Project Irrigation Water ratesetting policy and the Project M&I ratesetting policy promulgated

14 pursuant to the Administrative Procedures Act.

15 (h) At the Contractor's request, the Contracting Officer shall provide to the

16 Contractor an accounting of all of the expenses allocated and the disposition of all revenues

17 received pursuant to this interim renewal contract in sufficient detail to allow the Contractor to

18 determine that the allocation of expenses and disposition of all revenues received was

19 accomplished in conformance with Federal Reclamation law and the associated regulations. The

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

21 discrepancies or disputes arising out of said accounting of the Contractor's review thereof.
22

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

2 interim renewal contract is their mutual goal. Recognizing that experience has demonstrated that

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

4 and allocating payments, other than those set forth in this Article would be in the mutual best

5 interest of the parties, it is expressly agreed that the parties may enter into agreements for

6 alternative mechanisms, policies and procedures for any of those purposes while this interim

7 renewal contract is in effect without amending this contract.

8 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS 

9 8. The Contractor and the Contracting Officer concur that at the time of execution of

10 this interim renewal contract, the Contractor has no non-interest bearing operation and

11 maintenance deficits and shall have no further liability therefor.

12 TRANSFERS OR EXCHANGES OF WATER

13 9. (a) The right to Project Water provided for in this interim renewal contract

14 may be sold, transferred, or exchanged to others for beneficial uses within the State of California

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

16 applicable guidelines or regulations then in effect. The right to sell, transfer or exchange Project

17 Water shall include, and the Contracting Officer shall apply this Article in a manner that does not

18 impede or restrict, lawful short-term sales, transfers, or exchanges of the type the Contractor

19 historically carried out with approval of the Contracting Officer under Contract No. 14-06-200-

20 5271A. No sale, transfer or exchange of the right to Project Water under this interim renewal

21 contract may take place without the prior written approval of the Contracting Officer. 
23

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

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

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

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

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

6 Rivers.

7 APPLICATION OF PAYMENTS AND ADJUSTMENTS

8 10. (a) The amount of any overpayment by the Contractor shall be applied first to

9 any accrued indebtedness arising out of this interim renewal contract then due and payable by the

10 Contractor. Any amount of such overpayment then remaining shall, at the option of the

11 Contractor, be refunded to the Contractor or credited upon amounts to become due to the United

12 States from the Contractor under the provisions hereof in the following months. With respect to

13 overpayment, such adjustment shall constitute the sole remedy of the Contractor or anyone

14 having or claiming to have the right to the use of any of the water supply provided for herein.

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

16 Contractor pursuant to Article 24 shall be adjusted to reflect the actual costs when the work has

17 been completed. If the advances exceed the actual costs incurred, the difference will be refunded

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

19 billed for the additional costs pursuant to Article 24.

20

21
24

1 TEMPORARY REDUCTIONS--RETURN FLOWS

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

3 the obligations of the United States under existing contracts, or renewals thereof, providing for

4 water deliveries from the Project, the Contracting Officer shall make all reasonable efforts to

5 optimize Project Water deliveries to the Contractor as provided in the contract.

6 (b) The United States may temporarily discontinue or reduce the quantity of

7 Project Water to be delivered to the Contractor as herein provided for the purposes of

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

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

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

11 discontinuance or reduction, except in case of emergency, in which case no notice need be given: 

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

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

14 if requested by the Contractor, the United States will, if possible, deliver the quantity of Project

15 Water which would have been delivered hereunder in the absence of such discontinuance or

16 reduction: Provided further, That with respect to any quantity of Project Water not delivered

17 after a discontinuance or reduction the Contractor shall be relieved of its scheduling and payment

18 obligations for such quantity of Project Water.

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

20 derived from water delivered to the Contractor hereunder which escapes or is discharged beyond

21 the Contractor's Boundaries: Provided, That this shall not be construed as claiming for the
25

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

2 pursuant to this interim renewal contract within the Contractor's Boundaries by the Contractor or

3 those claiming by, through, or under the Contractor.

4 WATER SHORTAGE AND APPORTIONMENT

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

6 reasonable means to guard against a condition of shortage in the quantity of water to be made

7 available to the Contractor pursuant to this contract. Insofar as determined by the Contracting

8 Officer to be practicable, the Contracting Officer will, in the event a shortage appears probable,

9 notify the Contractor of such determinations as soon as possible.

10 (b) If there is a reduction in the total water supply available to the Contractor

11 during any Year because of errors in physical operations of the Project, drought, other physical

12 causes beyond the control of the Contracting Officer or actions taken by the Contracting Officer

13 to meet legal obligations, no liability shall accrue against the United States or any of its officers,

14 agents, or employees for any damages, direct or indirect, arising therefrom, so long as actions

15 based upon the opinions or determinations of the Contracting Officer are consistent with the

16 standards in Article 18.

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

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

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

20 contracts (to the extent such future contracts are permitted under subsections (a) and (b) of
26

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

2 contractual obligations of the United States.

3 UNAVOIDABLE GROUNDWATER PERCOLATION

4 13. The Contractor shall not be deemed to have furnished Irrigation Water to Excess

5 Lands or Ineligible Lands within the meaning of this interim renewal contract if such lands are

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

7 furnishing of Irrigation Water by the Contractor to Eligible Lands.

8 COMPLIANCE WITH FEDERAL RECLAMATION LAW

9 14. This interim renewal contract shall be implemented in accordance with all

10 applicable provisions of Federal Reclamation law, as amended and supplemented.

11 WATER AND AIR POLLUTION CONTROL

12 15. The Contractor, in carrying out this contract, shall comply with all applicable

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

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

15 authorities.

16 QUALITY OF WATER

17

18 16. (a) Project facilities used to make available and deliver Project Water to the

19 Contractor pursuant to this interim renewal contract shall be operated and maintained to enable

20 the United States to make available and deliver Project Water to the Contractor in accordance

21 with the water quality standards specified in subsection 2(b) of the Act of August 26, 1937 (50

22 Stat. 865), as added by Section 101 of the Act of October 27, 1986 (100 Stat. 3050) or other

23 existing Federal laws. The United States is under no obligation to construct or furnish water

24 treatment facilities to maintain or to better the quality of Project Water furnished to the
27

1 Contractor pursuant to this contract. The United States does not warrant the quality of Project

2 Water made available and delivered to the Contractor pursuant to this contract.

3 (b) The operation and maintenance of Project facilities shall be performed in

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

5 facilities at the highest level reasonably attainable as determined by the Contracting Officer. The

6 Contractor shall be responsible for compliance with all State and Federal water quality standards

7 applicable to surface and subsurface agricultural drainage discharges generated through the use of

8 Federal or Contractor facilities or Project Water provided by the Contractor within the

9 Contractor's Boundaries. This Article shall not affect or alter any legal obligations of the

10 Secretary to provide drainage services.

11 WATER ACQUIRED BY THE CONTRACTOR OTHER THAN

12 FROM THE UNITED STATES

13 17. Water or water rights now owned or hereafter acquired by the Contractor other

14 than from the United States and Irrigation Water furnished pursuant to the terms of this interim

15 renewal contract may be simultaneously transported through the same distribution facilities of the

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

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

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

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

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

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

1

 Possible contractual provisions concerning the transportation of non-Project Water through CVP facilities pursuant to the Warren Act were

still under discussion in other divisions at the time that divisional negotiations between the Bureau of Reclamation and the Tehama-Colusa and

Corning Canal districts were completed on Sept. 19, 1994. Should Reclamation ultimately agree to include language in this regard in the form

of contract for other divisions, then such language will also be included in the contracts of Tehama-Colusa or Corning Canal districts which

request it. 

28

1 Eligible Lands within the Contractor's Boundaries can be established and the quantity of

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

3 Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation Water and non4 Project water are constructed with funds made available pursuant to Federal Reclamation law,the

non-Project water will be subject to Federal Reclamation law, until such funds have been repaid.15

6 OPINIONS AND DETERMINATIONS

7 18. (a) Where the terms of this interim renewal contract provide for actions to be

8 based upon the opinion or determination of either party to this contract, said terms shall not be

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

10 opinions or determinations. Both parties, notwithstanding any other provisions of this contract,

11 expressly reserve the right to seek relief from and appropriate adjustment, including monetary

12 damages, for any such arbitrary, capricious or unreasonable opinion or determination. Each

13 opinion or determination by either party shall be provided in a timely manner.

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

15 necessary to administer this interim renewal contract that are consistent with the expressed and

16 implied provisions of this contract, the laws of the United States and the State of California, and

17 the rules and regulations promulgated by the Secretary of the Interior. Such determinations shall

18 be made in consultation with the Contractor to the extent reasonably practicable.
29

1 CHARGES FOR DELINQUENT PAYMENTS

2 19. (a) The Contractor shall be subject to interest, administrative and penalty

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

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

5 the due date. When a payment becomes 60 days delinquent, the Contractor shall pay an

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

7 When a payment is delinquent 90 days or more, the Contractor shall pay an additional penalty

8 charge of 6 percent per year for each day the payment is delinquent beyond the due date. Further,

9 the Contractor shall pay any fees incurred for debt collection services associated with a

10 delinquent payment.

11

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

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

14 the interest rate of 0.5 percent per month prescribed by Section 6 of the Reclamation Project Act

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

16 remain fixed for the duration of the delinquent period.

17

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

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

20 accrued interest, and finally to the overdue payment.

21

22 EQUAL OPPORTUNITY

23

24 20. During the performance of this contract, the Contractor agrees as follows:

25

26 (1) The Contractor will not discriminate against any employee or applicant for

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

28 take affirmative action to ensure that applicants are employed, and that employees are

29 treated during employment, without regard to their race, color, religion, sex, or national

30 origin. Such action shall include, but not be limited to, the following: Employment,

31 upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or

32 termination, rates of payment or other forms of compensation; and selection for training,

33 including apprenticeship. The Contractor agrees to post in conspicuous places, available

34 to employees and applicants for employment, notices to be provided by the Contracting

35 Officer setting forth the provisions of this nondiscrimination clause.

36

37 (2) The Contractor will, in all solicitations or advertisements for employees

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

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

40 or national origin.
30

1 (3) The Contractor will send to each labor union or representative of workers

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

3 notice, to be provided by the Contracting Officer, advising the said labor union or

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

5 Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous

6 places available to employees and applicants for employment.

7

8 (4) The Contractor will comply with all provisions of Executive Order No.

9 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant

10 orders of the Secretary of Labor.

11

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

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

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

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

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

17

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

19 clauses of this contract or with any of the said rules, regulations, or orders, this contract

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

21 be declared ineligible for further Government contracts in accordance with procedures

22 authorized in said amended Executive Order, and such other sanctions may be imposed

23 and remedies invoked as provided in said Executive Order, or by rule, regulation, or order

24 of the Secretary of Labor, or as otherwise provided by law.

25

26 (7) The Contractor will include the provisions of paragraphs (1) through (7) in

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

28 of the Secretary of Labor issued pursuant to Section 204 of said amended Executive

29 Order, so that such provisions will be binding upon each subcontractor or vendor. The

30 Contractor will take such action with respect to any subcontract or purchase order as may

31 be directed by the Secretary of Labor as a means of enforcing such provisions, including

32 sanctions for noncompliance: Provided, however, That in the event the Contractor

33 becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a

34 result of such direction, the Contractor may request the United States to enter into such

35 litigation to protect the interests of the United States.

36

37 GENERAL OBLIGATION--BENEFITS

38 CONDITIONED UPON PAYMENT

39

40 21. (a) The obligation of the Contractor to pay the United States as provided in

41 this contract is a general obligation of the Contractor notwithstanding the manner in which the
31

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

2 of individual water users in their obligations to the Contractor.

3

4 (b) The payment of charges becoming due hereunder is a condition precedent

5 to receiving benefits under this contract. The United States shall not make water available to the

6 Contractor through project facilities during any period in which the Contractor may be in arrears

7 in the advance payment of water rates due the United States. The Contractor shall not furnish

8 water made available pursuant to this contract for lands or parties which are in arrears in the

9 advance payment of water rates levied or established by the Contractor.

10

11 COMPLIANCE WITH CIVIL RIGHTS LAWS

12 AND REGULATIONS

13

14 22. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964

15 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the

16 Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights

17 laws, as well as with their respective implementing regulations and guidelines imposed by the

18 U.S. Department of the Interior and/or Bureau of Reclamation.

19

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

21 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be

22 denied the benefits of, or be otherwise subjected to discrimination under any program or activity

23 receiving financial assistance from the Bureau of Reclamation. By executing this contract, the

24 Contractor agrees to immediately take any measures necessary to implement this obligation,

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

26

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

28 purpose of obtaining any and all Federal grants, loans, contracts, property discounts or other

29 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of

30 Reclamation, including installment payments after such date on account of arrangements for

31 Federal financial assistance which were approved before such date. The Contractor recognizes

32 and agrees that such Federal assistance will be extended in reliance on the representations and

33 agreements made in this Article, and that the United States reserves the right to seek judicial

34 enforcement thereof.

35

36 PRIVACY ACT COMPLIANCE

37

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

39 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et

40 seq.) in maintaining landholder acreage certification and reporting records, required to be
32

1 submitted to the Contractor for compliance with sections 206 and 228 of the Reclamation

2 Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.10.

3

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

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

6 responsible for maintaining the certification and reporting records referenced in (a) above are

7 considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m).

8

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

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

11 of Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--

12 Interior, Reclamation-31) which govern the maintenance, safeguarding, and disclosure of

13 information contained in the landholder's certification and reporting records.

14

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

16 of Reclamation to be the System Manager who shall be responsible for making decisions on

17 denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The

18 Contractor is authorized to grant requests by individuals for access to their own records.

19

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

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

22 under 43 CFR 2.71; notify the requester accordingly of such referral; and provide the System

23 Manager with information and records necessary to prepare an appropriate response to the

24 requester. These requirements do not apply to individuals seeking access to their own

25 certification and reporting forms filed with the Contractor pursuant to 43 CFR 426.10, unless the

26 requester elects to cite the Privacy Act as a basis for the request.

27

28 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

29

30 24. In addition to all other payments to be made by the Contractor pursuant to this

31 contract, the Contractor shall pay to the United States, within sixty (60) days after receipt of a bill

32 and detailed statement submitted by the Contracting Officer to the Contractor for such specific

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

34 with this interim renewal contract plus a percentage of such direct costs for administrative and

35 general overhead in accordance with applicable Bureau of Reclamation policy and procedures. 
33

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

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

3 administration.

4 WATER CONSERVATION

5 25. (a) Prior to the delivery of water provided from or conveyed through Federally

6 constructed or Federally financed facilities pursuant to this contract, the Contractor shall be

7 implementing an effective water conservation program based on the Contractor's water

8 conservation plan that has been determined by the Contracting Officer to meet the conservation

9 and efficiency criteria established under Federal law. The water conservation program shall

10 contain definite water conservation objectives, appropriate economically feasible water

11 conservation measures, and time schedules for meeting those objectives.

12 (b) Should the combined amount of M&I Water delivered pursuant to

13 subdivision (a) of Article 3 during the term of this interim renewal contract equal or exceed

14 2,000 acre-feet, the Contractor shall implement the Best Management Practices identified by and

15 the time frames issued by the California Urban Water Conservation Council unless any such

16 practice is determined by the Contracting Officer to be inappropriate for the Contractor.

17 ( c) As part of the water conservation program, the Contractor shall develop

18 and be implementing a tiered block water pricing program that promotes conservation and the

19 efficient management of Project Water during the term of this contract. Such pricing program for

20 Project Water shall take into account all relevant circumstances, including without limitation,

21 water shortages imposed under this interim renewal contract and the availability and cost of the
34

1 Contractor's and individual water user's non-Project alternative sources of supply, including

2 ground water and other non-Project water supplies, so that the Contractor's pricing structure

3 provides incentives for conservation and the efficient management of overall water supply

4 available to water users served by the Contractor. Provided, That no such tiered block water

5 pricing program need be implemented by the Contractor if the Contracting Officer determines,

6 based on information provided by the Contractor, that (i) such a pricing structure will not result

7 in significant conservation of water available for use within the Contractor's service area,

8 including ground water or (ii) other pricing program, conservation or management measures are

9 more appropriate and/or will result in comparable or better conservation of the water supplies

10 available within the Contractor's boundaries. Provided further, If the Contractor fails to, or elects

11 not to, comply with this subdivision of Article 25, then any subsequent interim renewal contract

12 shall contain a tiered pricing contractual provision pursuant to subsection (d) of Section 3405 of

13 the CVPIA.

14 (d) The Contractor shall submit to the Contracting Officer by 

15 December 31, of each Calendar Year, an annual report on the status of its implementation of the

16 water conservation program.

17 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

18 26. Except as specifically provided in Article 17 of this contract, the provisions of this

19 interim renewal contract shall not be applicable to or affect water or water rights now owned or

20 hereafter acquired by the Contractor or any user of such water within the Contractor's Boundaries

21 from other than the United States by the Contractor. Any such water shall not be considered
35

1 Project Water under this contract. In addition, this interim renewal contract shall not be

2 construed as limiting or curtailing any rights which the Contractor or any water user within the

3 Contractor's Boundaries acquires or has available under any other contract pursuant to the

4 Federal Reclamation law.

5 OPERATION AND MAINTENANCE BY NON-FEDERAL ENTITY

6 27. (a) The operation and maintenance of a portion of the Canal Facilities, and

7 responsibility for funding the costs of such operation and maintenance, has been transferred to an

8 Operating-Non-Federal Entity by separate agreement between the United States and the

9 Operating Non-Federal Entity. That separate agreement shall not interfere with the rights or

10 obligations of the Contractor or the United States hereunder. 

11 (b) Since the Contracting Officer has notified the Contractor in writing that

12 the operation and maintenance of a portion of the Canal Facilities has been transferred to an

13 Operating Non-Federal Entity, the Contractor shall pay directly to such Operating Non-Federal

14 Entity all rates, charges, or assessments of any kind, including any assessment for reserve funds,

15 which the Operating Non-Federal Entity determines, sets, or establishes for the operation and

16 maintenance of the portion of the Canal Facilities operated and maintained by the Operating

17 Non-Federal Entity, all in compliance with all provisions of Article 7 hereof. The Contractor

18 shall also submit to the Non-Federal Entity, as fiscal agent for the Secretary, that portion of the

19 Contractor’s obligation to the United States for its allocated share of the Project construction

20 costs and its allocated share of the remaining operation and maintenance costs for the Project.
36

1 (c) Because of the transfer of operation and maintenance of the Canal

2 Facilities to an Operating Non-Federal Entity, the Contracting Officer shall adjust accordingly

3 the portions of the Rates for water under this Contract representing operation and maintenance

4 costs of the Canal Facilities that the Operating Non-Federal Entity assesses and collects directly.

5 (d) In the event the operation and maintenance of the portion of the Canal

6 Facilities transferred to the Operating Non-Federal Entity is reassumed by the United States

7 during the term of this contract, the Contracting Officer shall so notify the Contractor, in writing,

8 and present to the Contractor a revised Exhibit B which shall include the portion of the Rates for

9 water under this contract representing the operation and maintenance costs of the portion of the

10 Canal Facilities which has been reassumed. The Contractor shall thereafter, and in the absence

11 of written notification from the Contracting Officer to the contrary, pay the Rates specified in the

12 revised Exhibit B directly to the United States, in compliance with Article 7 herein.

13 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

14 28. The expenditure or advance of any money or the performance of any obligation of

15 the United States under this contract shall be contingent upon appropriation or allotment of

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

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

18 appropriated or allotted.

19

20 BOOKS RECORDS AND REPORTS

21

22 29. The Contractor shall establish and maintain accounts and other books and records

23 pertaining to administration of the terms and conditions of this contract, including: the

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

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

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

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

28 Officer may require. Subject to applicable Federal laws and regulations, each party to this
37

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

2 books and records relating to matters covered by this contract.

3

4 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

5

6 30. (a) The provisions of this contract shall apply to and bind the successors and

7 assigns of the parties hereto, but no assignment or transfer of this contract or any right or interest

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

9

10 (b) The assignment of any right or interest in this interim renewal contract by

11 either party shall not interfere with the rights or obligations of the other party to this interim

12 renewal contract absent the written concurrence of said other party.

13 SEVERABILITY

14 31. In the event that a person or entity who is neither (i) a party to a Project interim

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

16 interim renewal contract, nor (iii) an association or other form of organization whose primary

17 function is to represent parties to Project interim renewal contracts, brings an action in a court of

18 competent jurisdiction challenging the legality or enforceability of a provision included in this

19 interim renewal contract and said person, entity, association, or organization obtains a final court

20 decision holding that such provision is legally invalid or unenforceable and the Contractor has

21 not intervened in that lawsuit in support of the plaintiff(s), the parties to this interim renewal

22 contract shall use their best efforts to (i) within thirty (30) days of the date of such final court

23 decision identify by mutual agreement the provisions in this interim renewal contract which must

24 be revised, and (ii) within three (3) months thereafter promptly agree on the appropriate

25 revision(s). The time periods specified above may be extended by mutual agreement of the
38

1 parties. Pending the completion of the actions designated above, to the extent it can do so

2 without violating any applicable provisions of law, the United States shall continue to make the

3 quantities of Project Water specified in this interim renewal contract available to the Contractor

4 pursuant to the provisions of this interim renewal contract which were not found to be legally

5 invalid or unenforceable in the final court decision.

6 OFFICIALS NOT TO BENEFIT

7 32. No Member of or Delegate to Congress, Resident Commissioner or official of the

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

9 manner as other water users or landowners.

10

11 CHANGES IN CONTRACTOR'S BOUNDARIES

12

13 33. While this contract is in effect, no change may be made in the Contractor's

14 boundaries, by inclusion or exclusion of lands, dissolution, consolidation, merger or otherwise,

15 except upon the Contracting Officer's written consent.

16

17 NOTICES

18

19 34. Any notice, demand, or request authorized or required by this contract shall be

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

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

22 Shasta Dam Boulevard, Shasta Lake, California 96019-8400 and on behalf of the United States,

23 when mailed, postage prepaid, or delivered to the Board of Directors of the Thomes Creek Water

24 District, PO Box 1017, 22240 Gallagher Avenue, Corning, California 96021. The designation of

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

26 this Article for other notices.

27

28
39

1 IN WITNESS WHEREOF, the parties hereto have executed this interim renewal contract as of

2 the day and year first above written.

3

4

5 THE UNITED STATES OF AMERICA THOMES CREEK WATER DISTRICT

6

7

8

9 By: /s/ Kirk C. Rodgers By: /s/ Robert A. Williams 

10 Acting Regional Director President

11 Mid-Pacific Region

12 Bureau of Reclamation

13

14 Attest: /s/ Helen Moran

15 Secretary Clerk

16 (SEAL)

17 APPROVED AS TO LEGAL

FORM AND SUFFICIENCY

/s/ James E. Turner

OFFICE OF REGIONAL SOLICITOR

DEPARTMENT OF THE INTERIOR