Irrigation and Other 

R. O. Final Draft 10/08-2004 

A. O. Draft 09/24-2004 

A. O. Draft 07/29-2004 

R. O. CVP-Wide 04/19-2004 

Contract No. 

14-06-200-1911A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

LEWIS CREEK WATER DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM FRIANT DIVISION

Table of Contents

Article No. Page No.

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

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

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

 2 Term of Contract--Right to Use of Water............................................ 10-13 

 3 Water to be Made Available and Delivered to the Contractor............. 13-19 

 4 Time for Delivery of Water ................................................................. 19-21 

 5 Point of Diversion and Responsibility for Distribution of Water........ 21-23 

 6 Measurement of Water Within the Service Area................................. 23-25 

 7 Rates and Method of Payment for Water............................................. 25-31 

 8 Non-Interest Bearing Operation and Maintenance Deficits.......................31 

 9 Sales, Transfers or Exchanges of Water .............................................. 31-32 

 10 Application of Payments and Adjustments................................................33 

 11 Temporary Reductions--Return Flows ................................................ 33-34 

 12 Constraints on the Availability of Water ............................................. 34-37 

 13 Unavoidable Groundwater Percolation......................................................37 

 14 Rules and Regulations................................................................................37 

 15 Water and Air Pollution Control................................................................37 

 16 Quality of Water ........................................................................................38 

 17 Water Acquired by the Contractor Other Than From 

 the United States .............................................................................. 38-41 

 
Contract No. 14-06-200-1911A-LTR1 

Table of Contents - continued

Article No. Page No.

 18 Opinions and Determinations .............................................................. 41-42 

 19 Coordination and Cooperation............................................................. 42-43 

 20 Charges for Delinquent Payments .............................................................44 

 21 Equal Opportunity................................................................................ 44-45 

 22 General Obligation--Benefits Conditioned Upon Payment ................. 45-46 

 23 Compliance with Civil Rights Laws and Regulations ......................... 46-47 

 24 Privacy Act Compliance ............................................................................47 

 25 Contractor to Pay Certain Miscellaneous Costs.........................................48 

 26 Water Conservation ...................................................................................48 

 27 Existing or Acquired Water or Water Rights.............................................49 

 28 Operation and Maintenance by Non-Federal Entity ............................ 49-51 

 29 Contingent on Appropriation or Allotment of Funds ................................51 

 30 Books, Records and Reports......................................................................51 

 31 Assignment Limited--Successors and Assigns Obligated ................... 51-52 

 32 Severability ................................................................................................52 

 33 Resolution of Disputes...............................................................................53 

 34 Officials Not to Benefit..............................................................................53 

 35 Changes in Contractor's Service Area ................................................. 53-54 

 36 Federal Laws..............................................................................................54 

 37 Notices .......................................................................................................54 

 38 Confirmation of Contract...........................................................................54 

Signature Page ...........................................................................................55 

Exhibit A – Map of Contractor’s Service Area 

 Exhibit B – Water Rate Exhibit
Irrigation and Other 

R. O. Final Draft 10/08-2004 

A. O. Draft 09/24-2004 

A. O. Draft 07/29-2004 

R. O. CVP-Wide 04/19-2004 

Contract No. 

14-06-200-1911A-LTR1 

 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

6 AND

7 LEWIS CREEK WATER DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM FRIANT DIVISION

10 THIS CONTRACT, made this _______ day of __________________, 20______, 

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

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

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

14 July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), 

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

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

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

18 LEWIS CREEK WATER DISTRICT, hereinafter referred to as the Contractor, a public agency 

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

20 WITNESSETH, That:
Contract No. 14-06-200-1911A-LTR1 

2 

21 EXPLANATORY RECITALS

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

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

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

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

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

27 and the San Joaquin River and their tributaries; and 

 [2nd 28 ] WHEREAS, the United States constructed Friant Dam (thereby creating Millerton 

29 Lake) and the Friant-Kern and Madera Canals, hereinafter collectively referred to as the Friant 

30 Division facilities, which will be used in part for the furnishing of water to the Contractor 

31 pursuant to the terms of this Contract; and 

 [3rd 32 ] WHEREAS, pursuant to Section 8 of the Act of June 17, 1902 (32 Stat. 388), the 

33 United States has acquired water rights and other rights to the flows of the San Joaquin River, 

34 including without limitation the permits issued as the result of Decision 935 by the California 

35 State Water Resources Control Board and the contracts described in subdivision (n) of Article 3 

36 of this Contract, pursuant to which the Contracting Officer develops, diverts, stores and delivers 

37 Project Water stored or flowing through Millerton Lake in accordance with State and Federal law 

38 for the benefit of Project Contractors in the Friant Division; and 

39 [3.1] WHEREAS, the water supplied to the Contractor pursuant to this Contract is 

40 Project Water developed through the exercise of the rights described in the third Explanatory 

41 Recital of this Contract; and 
Contract No. 14-06-200-1911A-LTR1 

3 

 [4th 42 ] WHEREAS, the Contractor and the United States entered into Contract 

43 No. 14-06-200-1911A, as amended, which established terms for the delivery to the Contractor of 

44 Project Water from the Friant Division from February 19, 1965, to February 28, 1995; and 

 [5th 45 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

46 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

47 interim renewal contract(s) identified as Contract No(s). 14-06-200-1911A-IR1, -IR2, -IR3, and -

48 -IR4, the current of which is hereinafter referred to as the Existing Contract, which provided for 

49 continued water service to the Contractor from the Friant Division from March 1, 2004, through 

50 February 28, 2006; and

 [6th 51 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the

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

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

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

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

 [7th 56 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 58 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 61 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

62 of its obligations under the Existing Contract; and 

 [10th 63 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

64 Contracting Officer that the Contractor has utilized the Project Water supplies available to it for 
Contract No. 14-06-200-1911A-LTR1 

4 

65 reasonable and beneficial use and/or has demonstrated projected future demand for water use 

66 such that the Contractor has the capability and expects to utilize fully for reasonable and 

67 beneficial use the quantity of Project Water to be made available to it pursuant to this Contract; 

68 and 

 [11th 69 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

71 as an essential portion of its water supply; and 

 [12th 72 ] WHEREAS, the economies of regions within the Project, including the 

73 Contractor’s, depend upon the continued availability of water, including water service from the 

74 Project; and 

 [13th 75 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

77 Project for all Project purposes; and 

 [14th 78 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

83 of the United States relative to the Project; and 

 [15th 84 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

85 relationship in order to achieve their mutual goals; and

86 [15.1] WHEREAS, during uncontrolled seasons, Friant Division Project Contractors 

87 utilize undependable Class 2 Water in their service areas to, among other things, assist in the 
Contract No. 14-06-200-1911A-LTR1 

5 

88 management and alleviation of groundwater overdraft in the Friant Division service area, provide 

89 opportunities for environmental enhancement, including restoration of the San Joaquin River 

90 below Friant Dam, minimize flooding along the San Joaquin River, encourage optimal water 

91 management, and maximize the reasonable and beneficial use of the water; and 

92 [15.2] WHEREAS, the parties desire and intend that this Contract not provide a 

93 disincentive to the Friant Division Project Contractors continuing to carry out the beneficial 

94 activities set out in the Explanatory Recital immediately above; and 

 [16th 95 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

99 DEFINITIONS

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

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

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

103 both dates inclusive; 

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

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

106 annually by the Contracting Officer pursuant to this Contract; 

107 (b2) “Class 1 Water” shall mean that supply of water stored in or flowing 

108 through Millerton Lake which, subject to the contingencies hereinafter described in Articles 3, 

109 11, and 12 of this Contract, will be available for delivery from Millerton Lake and the 

110 Friant-Kern and Madera Canals as a dependable water supply during each Year; 
Contract No. 14-06-200-1911A-LTR1 

6 

111 (b3) “Class 2 Water” shall mean that supply of water which can be made 

112 available subject to the contingencies hereinafter described in Articles 3, 11, and 12 of this 

113 Contract for delivery from Millerton Lake and the Friant-Kern and Madera Canals in addition to 

114 the supply of Class 1 Water. Because of its uncertainty as to availability and time of occurrence, 

115 such water will be undependable in character and will be furnished only if, as, and when it can be 

116 made available as determined by the Contracting Officer; 

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

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

119 Contract Total; 

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

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

122 or regulation; 

123 (e) “Contract Total” shall mean the maximum amount of Class 1 Water, plus 

124 the maximum amount of Class 2 Water to which the Contractor is entitled under subdivision (a) 

125 of Article 3 of this Contract; 

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

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

128 hereto, which may be modified from time to time in accordance with Article 35 of this Contract 

129 without amendment of this Contract; 

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

131 XXXIV of the Act of October 30, 1992 (106 Stat. 4706); 
Contract No. 14-06-200-1911A-LTR1 

7 

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

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

134 (96 Stat. 1263), as amended, hereinafter referred to as the RRA; 

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

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

137 Reclamation law; 

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

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

140 Project irrigation or municipal and industrial (M&I) functions, as appropriate, of facilities in 

141 service including all O&M deficits funded, less payments, over such periods as may be required 

142 under Federal Reclamation law, or applicable contract provisions. Interest will accrue on both 

143 the construction expenditures and funded O&M deficits from October 12, 1982, on costs 

144 outstanding at that date, or from the date incurred in the case of costs arising subsequent to 

145 October 12, 1982, and shall be calculated in accordance with subsections 202(3)(B) and (3)(C) of 

146 the RRA. The Full Cost Rate includes actual operation, maintenance, and replacement costs 

147 consistent with Section 426.2 of the Rules and Regulations for the RRA; 

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

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

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

151 to the delivery of Irrigation Water; 

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

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

154 incidental thereto, and watering of livestock; 
Contract No. 14-06-200-1911A-LTR1 

8 

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

156 nonexempt land, as provided in 43 CFR 426.2; 

157 (n2) “Long Term Historic Average” shall mean the average of the final forecast 

158 of Water Made Available to the Contractor pursuant to this Contract and the contracts referenced 

159 in the fourth and fifth Explanatory Recitals of this Contract; 

160 (o) Omitted; 

161 (p) “Municipal and Industrial (M&I) Full Cost Water Rate” shall mean the 

162 Full Cost Rate applicable to the delivery of M&I water. 

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

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

165 maintenance of Project facilities; 

166 (r) “Operating Non-Federal Entity" shall mean the Friant Water Authority, its 

167 successors or assigns, a non-Federal entity which has the obligation to operate and maintain all 

168 or a portion of the Friant Division facilities pursuant to an agreement with the United States, and 

169 which may have funding obligations with respect thereto; 

170 (r2) "Other Water" shall mean water from the Project other than Irrigation 

171 Water as described in subdivision (m) of this Article, which is used for a purpose that is 

172 considered to be an irrigation use pursuant to State law such as the watering of landscaping or 

173 pasture for animals (e.g., horse) which are kept for the personal enjoyment. For purposes of this 

174 Contract, Other Water shall be paid for at Rates and Charges identical to those established for 

175 M&I water pursuant to the then-current M&I Ratesetting Policy; 

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

177 United States and managed by the Department of the Interior, Bureau of Reclamation; 
Contract No. 14-06-200-1911A-LTR1 

9 

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

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

180 Reclamation law; 

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

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

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

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

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

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

187 (w) Omitted; 

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

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

190 through any agency of the Department of the Interior; 

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

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

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

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

195 Officer; 

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

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

198 Contracting Officer, pursuant to subdivision (a) of Article 4 of this Contract; 
Contract No. 14-06-200-1911A-LTR1 

10 

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

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

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

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

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

204 TERM OF CONTRACT

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

206 20______, and supersedes the Existing Contract. In the event the Contractor wishes to renew 

207 this Contract beyond February 28, 20______, the Contractor shall submit a request for renewal in 

208 writing to the Contracting Officer no later than two years prior to the date this Contract expires. 

209 The renewal of this Contract insofar as it pertains to the furnishing of Irrigation Water shall be 

210 governed by subdivision (b) of this Article. 

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

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

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

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

215 Water to the Contractor, shall be renewed for a period of 25 years. 

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

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

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

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

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

221 water conservation plan as required by Article 26 of this Contract; (iii) the Contractor is 
Contract No. 14-06-200-1911A-LTR1 

11 

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

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

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

225 and, based on projected demands, is reasonably anticipated and expects to fully utilize for 

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

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

228 all legal obligations of the Contractor, if any, set forth in an enforceable court order, final 

229 judgment and/or settlement relating to restoration of the San Joaquin River; and (vi) the 

230 Contractor has the physical and legal ability to deliver Project Water. 

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

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

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

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

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

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

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

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

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

240 circumstances of the region served by the Contractor. 

241 (c) Omitted. 

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

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

244 Contract, of whether a conversion of the relevant portion of this Contract to a contract under 
Contract No. 14-06-200-1911A-LTR1 

12 

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

246 of July 2, 1956 (70 Stat 483). The Contracting Officer shall also make a determination ten years 

247 after the date of execution of this Contract and every five years thereafter during the term of this 

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

249 subsection 9(c)(1) of the Reclamation Project Act of 1939 can be accomplished. 

250 Notwithstanding any provision of this Contract, the Contractor reserves and shall have all rights 

251 and benefits under the Act of July 2, 1956 (70 Stat. 483). The Contracting Officer anticipates 

252 that during the term of this Contract, all authorized Project construction expected to occur will 

253 have occurred, and on that basis the Contracting Officer agrees by that date to allocate all costs 

254 that are properly assignable to the Contractor, and agrees further that, at any time after such 

255 allocation is made, and subject to satisfaction of the condition set out in this subdivision, this 

256 Contract shall, at the request of the Contractor, be converted to a contract under subsection 9(d) 

257 or 9(c)(1), whichever is applicable, of the Reclamation Project Act of 1939, subject to applicable 

258 Federal law and under stated terms and conditions mutually agreeable to the Contractor and the 

259 Contracting Officer. A condition for such conversion to occur shall be a determination by the 

260 Contracting Officer that, account being taken of the amount credited to return by the Contractor 

261 as provided for under Federal Reclamation law, the remaining amount of construction costs 

262 assignable for ultimate return by the Contractor can probably be repaid to the United States 

263 within the term of a contract under subsection 9(d) or 9(c)(1), whichever is applicable. If the 

264 remaining amount of costs that are properly assignable to the Contractor cannot be determined 

265 during the term of this Contract, the Contracting Officer shall notify the Contractor, and provide 

266 the reason(s) why such a determination could not be made. Further, the Contracting Officer shall 

267 make such a determination as soon thereafter as possible so as to permit, upon request of the 
Contract No. 14-06-200-1911A-LTR1 

13 

268 Contractor and satisfaction of the condition set out above, conversion to a contract under 

269 subsection 9(d) or 9(c)(1), whichever is applicable. In the event such determination of costs has 

270 not been made at a time which allows conversion of this Contract during the term of this 

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

272 parties shall incorporate in any subsequent renewal contract as described in subdivision (b) of 

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

274 subdivision. 

275 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

278 this Contract, the Contracting Officer shall make available for delivery to the Contractor 1,450

279 acre-feet of Class 1 Water for irrigation purposes. Water Delivered to the Contractor in 

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

281 Articles 4 and 7 of this Contract. 

282 (b) Omitted. 

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

284 applicable legal requirements. 

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

286 furnished pursuant to this Contract. Groundwater recharge programs (direct, indirect, or in lieu), 

287 groundwater banking programs, surface water storage programs, and other similar programs 

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

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

290 consistent with Federal Reclamation law will be allowed; Provided, That any direct recharge 
Contract No. 14-06-200-1911A-LTR1 

14 

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

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

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

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

295 compliance with Federal Reclamation law. Groundwater recharge programs, groundwater 

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

297 Water or other water furnished pursuant to this Contract conducted outside the Contractor’s 

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

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

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

301 guidelines. 

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

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

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

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

306 Contract, which evidences in excess of 34 years of diversions for irrigation purposes of the 

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

308 developing an appropriate baseline for the biological assessment(s) prepared pursuant to the

309 ESA, and any other needed environmental review. Nothing herein shall be construed to prevent 

310 the Contractor from challenging or seeking judicial relief in a court of competent jurisdiction 

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

312 Article. 
Contract No. 14-06-200-1911A-LTR1 

15 

313 (f) Subject to subdivisions (l) and (n) of Article 3 of this Contract, following 

314 the declaration of Water Made Available under Article 4 of this Contract, the Contracting Officer 

315 will make a determination whether Project Water, or other water available to the Project, can be 

316 made available to the Contractor in addition to the Contract Total under Article 3 of this Contract 

317 during the Year without adversely impacting other Project Contractors. At the request of the 

318 Contractor, the Contracting Officer will consult with the Contractor prior to making such a 

319 determination. Subject to subdivisions (l) and (n) of Article 3 of this Contract, if the Contracting 

320 Officer determines that Project Water, or other water available to the Project, can be made 

321 available to the Contractor, the Contracting Officer will announce the availability of such water 

322 and shall so notify the Contractor as soon as practicable. The Contracting Officer will thereafter 

323 meet with the Contractor and other Project Contractors capable of taking such water to determine 

324 the most equitable and efficient allocation of such water. If the Contractor requests the delivery 

325 of any quantity of such water, the Contracting Officer shall make such water available to the 

326 Contractor in accordance with applicable statutes, regulations, guidelines, and policies. 

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

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

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

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

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

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

333 guidelines, and policies. 

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

335 State law to the reasonable and beneficial use of Water Delivered pursuant to this Contract 
Contract No. 14-06-200-1911A-LTR1 

16 

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

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

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

339 sentence shall affect the Contracting Officer’s ability to impose shortages under Article 11 or 

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

341 contracts. 

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

343 delivered for purposes other than those described in subdivisions (m) and (r2) of Article 1 of this 

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

345 conditions of such approval. 

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

347 rights necessary for the Project and other rights described in the third Explanatory Recital of this 

348 Contract and to provide the water available under this Contract. The Contracting Officer shall 

349 not object to participation by the Contractor, in the capacity and to the extent permitted by law, 

350 in administrative proceedings related to the water rights and other rights described in the third 

351 Explanatory Recital of this Contract; Provided, That the Contracting Officer retains the right to 

352 object to the substance of the Contractor’s position in such a proceeding; Provided further, That 

353 in such proceedings the Contracting Officer shall recognize the Contractor has a legal right under 

354 the terms of this Contract to use Project Water. 

355 (k) Project Water furnished to the Contractor during any month designated in 

356 a schedule or revised schedule submitted by the Contractor and approved by the Contracting 

357 Officer shall be deemed to have been accepted by the Contractor as Class 1 Water to the extent 

358 that Class 1 Water is called for in such schedule for such month and shall be deemed to have 
Contract No. 14-06-200-1911A-LTR1 

17 

359 been accepted as Class 2 Water to the extent Class 2 Water is called for in such schedule for such 

360 month. If in any month the Contractor diverts a quantity of water in addition to the total amount 

361 of Class 1 Water and Class 2 Water set forth in the Contractor's approved schedule or revised 

362 schedule for such month, such additional diversions shall be charged first against the 

363 Contractor's remaining Class 2 Water supply available in the current Year. To the extent the 

364 Contractor's remaining Class 2 Water supply available in the current Year is not sufficient to 

365 account for such additional diversions, such additional diversions shall be charged against the 

366 Contractor's remaining Class 1 Water supply available in the current Year. To the extent the 

367 Contractor's remaining Class 1Water and Class 2 Water supplies available in the current Year are 

368 not sufficient to account for such additional diversions, such additional diversions shall be 

369 charged first against the Contractor's available Class 2 Water supply and then against the 

370 Contractor's available Class 1 Water supply, both for the following Year. Payment for all 

371 additional diversions of water shall be made in accordance with Article 7 of this Contract. 

372 (l) If the Contracting Officer determines there is a Project Water supply 

373 available at Friant Dam as the result of an unusually large water supply not otherwise storable for 

374 Project purposes or infrequent and otherwise unmanaged flood flows of short duration, such 

375 water will be made available to the Contractor and others under Section 215 of the RRA pursuant 

376 to the priorities specified below if the Contractor enters into a temporary contract with the 

377 United States not to exceed one year for the delivery of such water or, as otherwise provided for 

378 in Federal Reclamation law and associated regulations. Such water may be identified by the 

379 Contractor either (i) as additional water to supplement the supply of Class 1 Water and/or Class 2 

380 Water made available to it pursuant to this Contract or, (ii) upon written notification to the 

381 Contracting Officer, as water to be credited against the Contractor's Class 2 Water supply 
Contract No. 14-06-200-1911A-LTR1 

18 

382 available pursuant to this Contract. The Contractor shall deliver such water to Eligible Lands, or 

383 to Excess Lands in accordance with this Article. The Contracting Officer shall make water 

384 determined to be available pursuant to this subsection according to the following priorities: first, 

385 to long-term contractors for Class 1 Water and/or Class 2 Water within the Friant Division; 

386 second, to long-term contractors in the Cross Valley Division of the Project. The Contracting 

387 Officer will consider and seek to accommodate requests from other parties for Section 215 Water 

388 for use within the area identified as the Friant Division service area in the environmental 

389 assessment developed in connection with the execution of this Contract. 

390 (m) Nothing in this Contract, nor any action or inaction of the Contractor or 

391 Contracting Officer in connection with the implementation of this Contract, is intended to 

392 override, modify, supersede, or otherwise interfere with any term or condition of the water rights 

393 and other rights referred in the third Explanatory Recital of this Contract. 

394 (n) The rights of the Contractor under this Contract are subject to the terms of 

395 the contract for exchange waters, dated July 27, 1939, between the United States and the 

396 San Joaquin and Kings River Canal and Irrigation Company, Incorporated, et al., (hereinafter 

397 referred to as the Exchange Contractors), Contract No. I1r-1144, as amended. The United States 

398 agrees that it will not deliver to the Exchange Contractors thereunder waters of the San Joaquin 

399 River unless and until required by the terms of said contract, and the United States further agrees 

400 that it will not voluntarily and knowingly determine itself unable to deliver the Exchange 

401 Contractors entitled thereto from water that is available or that may become available to it from 

402 the Sacramento River and its tributaries or the Sacramento-San Joaquin Delta those quantities 

403 required to satisfy the obligations of the United States under said Exchange Contract and under 
Contract No. 14-06-200-1911A-LTR1 

19 

404 Schedule 2 of the Contract for Purchase of Miller and Lux Water Rights (Contract No. I1r-1145, 

405 dated July 27, 1939). 

406 TIME FOR DELIVERY OF WATER

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

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

409 Such declaration will be expressed in terms of both Water Made Available and the Long-Term 

410 Historic Average and will be updated monthly, and more frequently if necessary, based on then411 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

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

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

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

415 Contracting Officer shall provide the Contractor with the updated Long Term Historic Average. 

416 The declaration of Project operations will be expressed in terms of both Water Made Available 

417 and the Long Term Historic Average. 

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

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

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

421 United States to the Contractor pursuant to this Contract for the Year commencing on such 

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

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

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

425 of Project Water the Contractor intends to put to reasonable and beneficial use within the 
Contract No. 14-06-200-1911A-LTR1 

20 

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

427 during any Year. 

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

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

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

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

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

433 That the total amount of water requested in that schedule or revision does not exceed the 

434 quantities announced by the Contracting Officer pursuant to the provisions of subdivision (a) of 

435 Article 3, and the Contracting Officer determines that there will be sufficient capacity available 

436 in the appropriate Friant Division facilities to deliver the water in accordance with that schedule: 

437 Provided, further, That the Contractor shall not schedule the delivery of any water during any 

438 period as to which the Contractor is notified by the Contracting Officer or Operating Non439 Federal Entity that Project facilities required to make deliveries to the Contractor will not be in 

440 operation because of scheduled O&M. 

441 (e) The Contractor may, during the period from and including November 1 of 

442 each Year through and including the last day of February of that Year, request delivery of any 

443 amount of the Class 1 Water estimated by the Contracting Officer to be made available to it 

444 during the following Year. The Contractor may, during the period from and including January 1 

445 of each Year (or such earlier date as may be determined by the Contracting Officer) through and 

446 including the last day of February of that Year, request delivery of any amount of Class 2 Water 

447 estimated by the Contracting Officer to be made available to it during the following Year. Such 

448 water shall hereinafter be referred to as preuse water. Such request must be submitted in writing 
Contract No. 14-06-200-1911A-LTR1 

21 

449 by the Contractor for a specified quantity of preuse and shall be subject to the approval of the 

450 Contracting Officer. Payment for preuse water so requested shall be at the appropriate rate(s) for 

451 the following Year in accordance with Article 7 of this Contract and shall be made in advance of 

452 delivery of any preuse water. The Contracting Officer shall deliver such preuse water in 

453 accordance with a schedule or any revision thereof submitted by the Contractor and approved by 

454 the Contracting Officer, to the extent such water is available and to the extent such deliveries 

455 will not interfere with the delivery of Project Water entitlements to other Friant Division 

456 contractors or the physical maintenance of the Project facilities. The quantities of preuse water 

457 delivered pursuant to this subdivision shall be deducted from the quantities of water that the 

458 Contracting Officer would otherwise be obligated to make available to the Contractor during the 

459 following Year; Provided, That the quantity of preuse water to be deducted from the quantities of 

460 either Class 1 Water or Class 2 Water to be made available to the Contractor in the following 

461 Year shall be specified by the Contractor at the time the preuse water is requested or as revised in 

462 its first schedule for the following Year submitted in accordance with subdivision (b) of this 

463 Article, based on the availability of the following Year water supplies as determined by the 

464 Contracting Officer. 

465 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

467 Contract shall be delivered to the Contractor at a point or points of delivery either on Project 

468 facilities or another location or locations mutually agreed to in writing by the Contracting Officer 

469 and the Contractor. 

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

471 with the Operating Non-Federal Entity, shall make all reasonable efforts to maintain sufficient 
Contract No. 14-06-200-1911A-LTR1 

22 

472 flows and levels of water in Friant-Kern Canal to deliver Project Water to the Contractor at 

473 specific turnouts established pursuant to subdivision (a) of this Article. 

474 (c) The Contractor shall deliver Irrigation Water and Other Water in 

475 accordance with any applicable land classification provisions of Federal Reclamation law and the 

476 associated regulations. The Contractor shall not deliver Project Water to land outside the 

477 Contractor's Service Area unless approved in advance by the Contracting Officer. 

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

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

480 United States, or the Operating Non-Federal Entity at the point or points of delivery established 

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

482 Contracting Officer shall investigate, or cause to be investigated by the appropriate Operating 

483 Non-Federal Entity, the accuracy of such measurements and shall take any necessary steps to 

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

485 not been made, the Contracting Officer shall consult with the Contractor and the appropriate 

486 Operating Non-Federal Entity prior to making a final determination of the quantity delivered for 

487 that period of time. 

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

489 shall be responsible for the control, carriage, handling, use, disposal, or distribution of Water 

490 Delivered to the Contractor pursuant to this Contract beyond the delivery points specified in 

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

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

493 whatsoever for which there is legal responsibility, including property damage, personal injury, or 

494 death arising out of or connected with the control, carriage, handling, use, disposal, or 
Contract No. 14-06-200-1911A-LTR1 

23 

495 distribution of such Water Delivered beyond such delivery points, except for any damage or 

496 claim arising out of (i) acts or omissions of the Contracting Officer or any of its officers, 

497 employees, agents, or assigns, including the Operating Non-Federal Entity, with the intent of 

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

499 Officer or any of its officers, employees, agents, or assigns, including the Operating Non-Federal 

500 Entity, (iii) negligence of the Contracting Officer or any of its officers, employees, agents, or 

501 assigns including the Operating Non-Federal Entity, or (iv) damage or claims resulting from a 

502 malfunction of facilities owned and/or operated by the United States or the Operating 

503 Non-Federal Entity. 

504 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

507 purposes within the Contractor’s Service Area is measured at each agricultural turnout. The 

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

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

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

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

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

513 its proper management of the water and to bill water users for water delivered by the Contractor. 

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

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

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

517 described in subdivision (c) of Article 26. 
Contract No. 14-06-200-1911A-LTR1 

24 

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

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

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

521 to implement subdivision (a) of this Article and identifying the agricultural turnouts or 

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

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

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

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

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

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

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

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

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

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

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

533 compliance with subdivision (a) of this Article. 

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

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

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

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

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

539 within the Contractor’s Service Area during the previous Year. 
Contract No. 14-06-200-1911A-LTR1 

25 

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

Non-Federal Entity on or before the 20th 541 calendar day of each month of the quantity of Irrigation 

542 Water and Other Water taken during the preceding month. 

543 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

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

548 amended, modified, or superseded only through a public notice and comment procedure; 

549 (ii) applicable Federal Reclamation law and associated rules and regulations, or policies; and 

550 (iii) other applicable provisions of this Contract. Payments shall be made by cash transaction, 

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

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

553 applicable to the Contractor upon execution of this Contract are set forth in Exhibit “B,” as may 

554 be revised annually. 

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

556 and Tiered Pricing Component as follows: 

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

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

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

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

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

562 the Contracting Officer shall notify the Contractor in writing of the Charges to be in effect during 
Contract No. 14-06-200-1911A-LTR1 

26 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

584 Contract during any month shall be accompanied with appropriate advance payment, at the Rates 

585 then in effect, to assure that Project Water is not delivered to the Contractor in advance of such 
Contract No. 14-06-200-1911A-LTR1 

27 

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

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

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

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

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

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

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

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

594 day of February. 

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

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

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

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

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

600 consistent with the quantities of Irrigation Water and Other Water Delivered as shown in the 

601 water delivery report for the subject month prepared by the Operating Non-Federal Entity or, if 

602 there is no Operating Non-Federal Entity, by the Contracting Officer. Such water delivery report 

603 shall be the basis for payment of Charges and Tiered Pricing Component by the Contractor, and 

604 shall be provided to the Contractor by the Operating Non-Federal Entity or the Contracting 

605 Officer (as applicable) within five days after the end of the month of delivery. The water 

606 delivery report shall be deemed a bill for the payment of Charges and the applicable Tiered 

607 Pricing Component for Water Delivered. Adjustment for overpayment or underpayment of 

608 Charges shall be made through the adjustment of payments due to the United States for Charges 
Contract No. 14-06-200-1911A-LTR1 

28 

609 for the next month. Any amount to be paid for past due payment of Charges and the Tiered 

610 Pricing Component shall be computed pursuant to Article 20 of this Contract. 

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

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

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

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

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

616 under subdivision (a) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

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

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

630 to resolve any discrepancies or disputes relating to accountings, reports, or information. 
Contract No. 14-06-200-1911A-LTR1 

29 

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

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

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

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

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

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

637 this Contract is in effect without amending this Contract. 

638 (j) (1) Beginning at such time as total deliveries of Class 1 Water and 

639 Class 2 Water in a Year exceed 80 percent of the Contract Total, then before the end of the 

640 month following the month of delivery the Contractor shall make an additional payment to the 

641 United States equal to the applicable Tiered Pricing Component. The Tiered Pricing Component 

642 for the total amount of the deliveries of Class 1 Water and Class 2 Water Delivered in excess of 

643 80 percent of the Contract Total, but less than or equal to 90 percent of the Contract Total, shall 

644 equal one-half of the difference between the Rate established under subdivision (a) of this Article 

645 and the Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, whichever is applicable. 

646 The Tiered Pricing Component for the total amount of the deliveries of Class 1 Water and 

647 Class 2 Water which exceeds 90 percent of the Contract Total shall equal the difference between 

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

649 Water Rate or M&I Full Cost Water Rate, whichever is applicable. 

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

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

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

653 significant and quantifiable habitat values for waterfowl in fields where the water is used and the 
Contract No. 14-06-200-1911A-LTR1 

30 

654 crops are produced; Provided, That the exemption from the Tiered Pricing Component for 

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

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

657 Contracting Officer prior to use of such water. 

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

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

660 Contractor transfers to others but shall not include Project Water transferred to the Contractor. 

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

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

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

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

665 in accordance with the relevant Project ratesetting policy. Changes of significance in practices 

666 which implement the Contracting Officer’s ratesetting policies will not be implemented until the 

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

668 impact of the proposed change. 

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

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

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

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

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

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

675 entity whose Rates and Charges are not adjusted due to inability to pay, the Rates and Charges 
Contract No. 14-06-200-1911A-LTR1 

31 

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

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

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

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

680 (n) Omitted. 

681 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

684 liability therefor. 

685 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

690 Water under this Contract may take place without the prior written approval of the Contracting 

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

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

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

694 documentation should include, as appropriate, an analysis of groundwater impacts and economic 

695 and social effects, including environmental justice, of the proposed water transfers on both the 

696 transferor and transferee. 

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

698 transfers of the type historically carried out among Project Contractors located within the same 
Contract No. 14-06-200-1911A-LTR1 

32 

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

700 program during the term of this Contract, the Contracting Officer shall prepare, as appropriate, 

701 all necessary environmental documentation including, but not limited to, documents prepared 

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

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

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

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

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

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

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

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

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

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

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

713 years, for M&I use, groundwater recharge, water banking, or fish and wildlife resources; not lead 

714 to land conversion; and be delivered to established cropland, wildlife refuges, groundwater 

715 basins or M&I use; (ii) occur within a single Year; (iii) occur between a willing seller and a 

716 willing buyer; (iv) convey water through existing facilities with no new construction or 

717 modifications to facilities and be between existing Project Contractors and/or the Contractor and 

718 the United States, Department of the Interior; and (v) comply with all applicable Federal, State, 

719 and local or tribal laws and requirements imposed for protection of the environment and Indian 

720 Trust Assets, as defined under Federal law. 
Contract No. 14-06-200-1911A-LTR1 

33 

721 APPLICATION OF PAYMENTS AND ADJUSTMENTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

738 TEMPORARY REDUCTIONS-RETURN FLOWS

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

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

741 or renewals thereof, providing for water deliveries from the Project, the Contracting Officer shall 

742 make all reasonable efforts to optimize Project Water deliveries to the Contractor as provided in 

743 this Contract. 
Contract No. 14-06-200-1911A-LTR1 

34 

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

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

746 the purposes of investigation, inspection, maintenance, repair, or replacement of any of the 

747 Project facilities or any part thereof necessary for the delivery of Project Water to the Contractor, 

748 but so far as feasible the Contracting Officer or Operating Non-Federal Entity will give the 

749 Contractor due notice in advance of such temporary discontinuance or reduction, except in case 

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

751 its best efforts to avoid any discontinuance or reduction in such service. Upon resumption of 

752 service after such reduction or discontinuance, and if requested by the Contractor, the 

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

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

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

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

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

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

759 pursuant to this Contract within the Contractor’s Service Area by the Contractor or those 

760 claiming by, through, or under the Contractor. 

761 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

766 Contractor of said determination as soon as practicable. 
Contract No. 14-06-200-1911A-LTR1 

35 

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

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

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

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

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

772 (c) The United States shall not execute contracts which together with this 

773 Contract, shall in the aggregate provide for furnishing during the life of this Contract or any 

774 renewals hereof Class 1 Water in excess of 800,000 acre-feet per Year or Class 2 Water in excess 

775 of 1,401,475 acre-feet per Year; Provided, That, subject to subdivision (l) of Article 3 of this 

776 Contract, the limitation placed on Class 2 Water contracts shall not prohibit the United States 

777 from entering into temporary contracts of one year or less in duration for delivery of Project 

778 Water to other entities if such water is not necessary to meet the schedules as may be submitted 

779 by all Friant Division long-term water service contractors entitled to receive Class 1 Water 

780 and/or Class 2 Water under their water service contracts. Nothing in this subdivision shall limit 

781 the Contracting Officer’s ability to take actions that result in the availability of new water 

782 supplies to be used for Project purposes and allocating such new supplies; Provided, That the 

783 Contracting Officer shall not take such actions until after consultation with the Friant Division 

784 Project Contractors. 

785 (d) The Contracting Officer shall not deliver any Class 2 Water pursuant to 

786 this or any other contract for water service heretofore or hereafter entered into any Year unless 

787 and until the Contracting Officer determines that the cumulative total quantity of Class 1 Water 

788 specified in subdivision (c) of this Article will be available for delivery in said Year. If the 

789 Contracting Officer determines there is or will be a shortage in any Year in the quantity of 
Contract No. 14-06-200-1911A-LTR1 

36 

790 Class 1 Water available for delivery, the Contracting Officer shall apportion the available Class 1 

791 Water among all contractors entitled to receive such water that will be made available at Friant 

792 Dam in accordance with the following: 

793 (1) A determination shall be made of the total quantity of Class 1 

794 Water at Friant Dam which is available for meeting Class 1 Water contractual commitments, the 

795 amount so determined being herein referred to as the available supply. 

796 (2) The total available Class 1 supply shall be divided by the Class 1 

797 Water contractual commitments, the quotient thus obtained being herein referred to as the 

798 Class 1 apportionment coefficient. 

799 (3) The total quantity of Class 1 Water under Article 3 of this Contract 

800 shall be multiplied by the Class 1 apportionment coefficient and the result shall be the quantity of 

801 Class 1 Water required to be delivered by the Contracting Officer to the Contractor for the 

802 respective Year, but in no event shall such amount exceed the total quantity of Class 1 Water 

803 specified in subdivision (a) of Article 3 of this Contract. 

804 (e) If the Contracting Officer determines there is less than the quantity of 

805 Class 2 Water which the Contractor otherwise would be entitled to receive pursuant to Article 3 

806 of this Contract, the quantity of Class 2 Water which shall be furnished to the Contractor by the 

807 Contracting Officer will be determined in the manner set forth in paragraphs (1), (2), and (3), of 

808 subdivision (d) of this Article substituting the term “Class 2” for the term “Class 1.” 

809 (f) In the event that in any Year there is made available to the Contractor, by 

810 reason of any shortage or apportionment as provided in subdivisions (a), (d), or (e) of this 

811 Article, or any discontinuance or reduction of service as set forth in subdivision (a) of Article 11 

812 of this Contract, less than the quantity of water which the Contractor otherwise would be entitled 
Contract No. 14-06-200-1911A-LTR1 

37 

813 to receive hereunder, there shall be made an adjustment on account of the amounts already paid 

814 to the Contracting Officer by the Contractor for Class 1 Water and Class 2 Water for said Year in 

815 accordance with Article 10 of this Contract. 

816 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

820 of the delivery of Irrigation Water by the Contractor to Eligible Lands. 

821 RULES AND REGULATIONS

822 14. (a) The parties agree that the delivery of Irrigation Water or use of Federal 

823 facilities pursuant to this Contract is subject to Federal Reclamation law, including but not 

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

825 supplemented, and the rules and regulations promulgated by the Secretary of the Interior under 

826 Federal Reclamation law. 

827 

828 (b) The terms of this Contract are subject to any enforceable order, judgment 

829 and/or settlement in NRDC v. Patterson, No. CIVS 88-1658-LKK-EM and shall be timely 

830 modified as necessary to effectuate or facilitate any final order, judgment, or settlement in said 

831 litigation. 

832 (c) Omitted. 

833 WATER AND AIR POLLUTION CONTROL

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

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

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

837 authorities. 
Contract No. 14-06-200-1911A-LTR1 

38 

838 QUALITY OF WATER

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

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

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

842 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of October 

843 27, 1986 (100 Stat. 3050) or other existing Federal laws. The United States is under no 

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

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

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

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

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

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

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

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

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

853 Service Area. 

854 WATER ACQUIRED BY THE CONTRACTOR

855 OTHER THAN FROM THE UNITED STATES

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

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

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

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

860 and non-Project water were constructed without funds made available pursuant to Federal 
Contract No. 14-06-200-1911A-LTR1 

39 

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

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

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

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

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

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

867 Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation Water and non868 Project water are/were constructed with funds made available pursuant to Federal Reclamation 

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

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

871 43 CFR 426.15. In determining the incremental fee, the Contracting Officer will calculate 

872 annually the cost to the Federal Government, including interest, of storing or delivering non873 Project water, which for purposes of this Contract shall be determined as follows: The quotient 

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

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

876 quotient times the interest rate determined using Section 202 (3) of the Act of October 12, 1982 

877 (96 Stat. 1263). Such incremental fee will be charged to each acre of excess or full cost land 

878 within the Contractor’s Service Area that receives non-Project water through Federally financed 

879 or constructed facilities. The incremental fee calculation methodology will continue during the 

880 term of this Contract absent the promulgation of a contrary Reclamation-wide rule, regulation, or 

881 policy adopted after the Contractor has been afforded the opportunity to review and comment on 

882 the proposed rule, regulation, or policy. If such rule, regulation, or policy is adopted it shall 

883 supercede this provision. 
Contract No. 14-06-200-1911A-LTR1 

40 

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

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

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

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

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

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

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

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

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

893 policy, the RRA, and the Project use power policy, if such Project use power policy is applicable, 

894 each as amended, modified, or superseded from time to time. 

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

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

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

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

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

900 the Project facilities. 

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

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

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

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

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

906 property, direct or indirect, resulting from the acts of the Contractor, its officers’, employees’, 
Contract No. 14-06-200-1911A-LTR1 

41 

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

908 diverting such non-Project water into Project facilities. 

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

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

911 groundwater management plan for the area from which it was extracted. 

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

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

914 of the facilities declared to be available by the Contracting Officer for conveyance and 

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

916 non-Project contractors. 

917 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

925 intended to or shall affect or alter the standard of judicial review applicable under Federal law to 

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

927 statute or regulation. 

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

929 necessary to administer this Contract that are consistent with the provisions of this Contract, the 
Contract No. 14-06-200-1911A-LTR1 

42 

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

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

932 with the Contractor to the extent reasonably practicable. 

933 COORDINATION AND COOPERATION

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

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

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

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

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

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

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

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

942 Contract. Each party shall retain exclusive decision making authority for all actions, opinions, 

943 and determinations to be made by the respective party. 

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

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

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

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

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

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

950 a real-time basis. 
Contract No. 14-06-200-1911A-LTR1 

43 

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

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

953 intent: 

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

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

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

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

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

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

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

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

962 State of California to seek improved water resource management. 

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

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

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

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

967 management activities, and other issues as appropriate. 

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

969 under the other Articles of this Contract, nothing in this Article shall be construed to limit or 

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

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

972 protect health, safety, or the physical integrity of structures or facilities. 
Contract No. 14-06-200-1911A-LTR1 

44 

973 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

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

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

982 associated with a delinquent payment. 

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

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

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

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

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

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

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

990 accrued interest, and finally to the overdue payment. 

991 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

1000 agrees to post in conspicuous places, available to employees and applicants for employment, 

1001 notices to be provided by the Contracting Officer setting forth the provisions of this 

1002 nondiscrimination clause. 

1003 (b) The Contractor will, in all solicitations or advertisements for employees 

1004 placed by or on behalf of the Contractor, state that all qualified applicants will receive 

1005 consideration for employment without discrimination because of race, color, religion, sex, or 

1006 national origin. 

1007 (c) The Contractor will send to each labor union or representative of workers 

1008 with which it has a collective bargaining agreement or other contract or understanding, a notice, 

1009 to be provided by the Contracting Officer, advising the said labor union or workers' 
Contract No. 14-06-200-1911A-LTR1 

45 

1010 representative of the Contractor's commitments under Section 202 of Executive Order 11246 of 

1011 September 24, 1965, and shall post copies of the notice in conspicuous places available to 

1012 employees and applicants for employment. 

1013 (d) The Contractor will comply with all provisions of Executive Order 

1014 No. 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders 

1015 of the Secretary of Labor. 

1016 (e) The Contractor will furnish all information and reports required by said 

1017 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

1018 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

1019 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with 

1020 such rules, regulations, and orders. 

1021 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

1022 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

1023 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

1024 ineligible for further Government contracts in accordance with procedures authorized in said 

1025 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

1026 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

1027 otherwise provided by law. 

1028 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

1029 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

1030 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

1031 provisions will be binding upon each subcontractor or vendor. The Contractor will take such 

1032 action with respect to any subcontract or purchase order as may be directed by the Secretary of 

1033 Labor as a means of enforcing such provisions, including sanctions for noncompliance: 

1034 Provided, however, That in the event the Contractor becomes involved in, or is threatened with, 

1035 litigation with a subcontractor or vendor as a result of such direction, the Contractor may request 

1036 the United States to enter into such litigation to protect the interests of the United States. 

1037 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

1038 22. (a) The obligation of the Contractor to pay the United States as provided in 

1039 this Contract is a general obligation of the Contractor notwithstanding the manner in which the 

1040 obligation may be distributed among the Contractor's water users and notwithstanding the default 

1041 of individual water users in their obligations to the Contractor. 

1042 (b) The payment of charges becoming due hereunder is a condition precedent 

1043 to receiving benefits under this Contract. The United States shall not make water available to the 

1044 Contractor through Project facilities during any period in which the Contractor may be in arrears 

1045 in the advance payment of water rates due the United States. The Contractor shall not furnish 

1046 water made available pursuant to this Contract for lands or parties which are in arrears in the 

1047 advance payment of water rates levied or established by the Contractor. 
Contract No. 14-06-200-1911A-LTR1 

46 

1048 (b1) In addition to the remedy in subdivision (b) of this Article, if the 

1049 Contracting Officer determines that the Contractor is in arrears in the advance payment of water 

1050 rates that are due to the United States as provided in subdivision (c) of Article 7 of this Contract, 

1051 in addition to not delivering water until payments are current, this Contract may be terminated 

1052 pursuant to the procedures set forth in this subparagraph. If the Contracting Officer elects to 

1053 terminate the Contract pursuant to this provision, the Contracting Officer shall provide the 

1054 Contractor 60 days’ written notice of his or her intent to do so. Such notice shall specify the 

1055 precise nature of the delinquency and the precise amount the Contractor must pay to cure the 

1056 delinquency. If the Contractor cures the delinquency within 60 days of the date of the notice 

1057 provided by the Contracting Officer, the Contracting Officer shall not terminate the Contract. If 

1058 the Contractor fails to cure the delinquency within 60 days of the date of the notice provided by 

1059 the Contracting Officer, the Contracting Officer may immediately terminate the Contract and 

1060 shall provide written notice to the Contractor within five days of such termination that he or she 

1061 has done so.

1062 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

1063 obligation to require advance payment for water rates which it levies. 

1064 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

1065 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 

1066 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

1067 Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights 

1068 laws, as well as with their respective implementing regulations and guidelines imposed by the 

1069 U.S. Department of the Interior and/or Bureau of Reclamation. 

1070 (b) These statutes require that no person in the United States shall, on the 

1071 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be 

1072 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

1073 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 
Contract No. 14-06-200-1911A-LTR1 

47 

1074 Contractor agrees to immediately take any measures necessary to implement this obligation, 

1075 including permitting officials of the United States to inspect premises, programs, and documents. 

1076 (c) The Contractor makes this agreement in consideration of and for the 

1077 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or other 

1078 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of 

1079 Reclamation, including installment payments after such date on account of arrangements for 

1080 Federal financial assistance which were approved before such date. The Contractor recognizes 

1081 and agrees that such Federal assistance will be extended in reliance on the representations and 

1082 agreements made in this Article, and that the United States reserves the right to seek judicial 

1083 enforcement thereof. 

1084 PRIVACY ACT COMPLIANCE

1085 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) 

1086 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et 

1087 seq.) in maintaining Landholder acreage certification and reporting records, required to be 

1088 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation 

1089 Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

1090 (b) With respect to the application and administration of the criminal penalty 

1091 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees 

1092 responsible for maintaining the certification and reporting records referenced in (a) above are 

1093 considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

1094 (c) The Contracting Officer or a designated representative shall provide the 

1095 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau 

1096 of Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--

1097 Interior, Reclamation-31) which govern the maintenance, safeguarding, and disclosure of 

1098 information contained in the Landholder's certification and reporting records. 

1099 (d) The Contracting Officer shall designate a full-time employee of the 

1100 Bureau of Reclamation to be the System Manager who shall be responsible for making decisions 

1101 on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The 

1102 Contractor is authorized to grant requests by individuals for access to their own records. 

1103 (e) The Contractor shall forward promptly to the System Manager each 

1104 proposed denial of access under 43 CFR 2.64; and each request for amendment of records filed 

1105 under 43 CFR 2.71; notify the requester accordingly of such referral; and provide the System 

1106 Manager with information and records necessary to prepare an appropriate response to the 

1107 requester. These requirements do not apply to individuals seeking access to their own 

1108 certification and reporting forms filed with the Contractor pursuant to 43 CFR 426.18, unless the 

1109 requester elects to cite the Privacy Act as a basis for the request. 
Contract No. 14-06-200-1911A-LTR1 

48 

1110 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1111 25. In addition to all other payments to be made by the Contractor pursuant to this 

1112 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1113 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

1114 of direct cost incurred by the United States for work requested by the Contractor associated with 

1115 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

1116 and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

1117 to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

1118 contract administration. 

1119 WATER CONSERVATION

1120 26. (a) During the term of this Contract, the Contractor shall comply with all 

1121 applicable requirements imposed on it by Section 210 of the RRA, regulations duly promulgated 

1122 and adopted thereunder, and any other applicable water conservation guidelines as they are duly 

1123 promulgated, adopted and amended from time to time: Provided, That the Contractor shall have 

1124 not less than 18 months to comply with any revisions in any such applicable regulations or water 

1125 conservation guidelines.

1126 (b) Omitted. 

1127 (c) The Contractor shall submit to the Contracting Officer a report on the 

1128 status of its implementation of the water conservation plan on the reporting dates specified in the 

1129 then existing conservation and efficiency criteria established under Federal law. 

1130 (d) Omitted. 

1131 (e) If the Contractor is engaged in direct groundwater recharge, such activity 

1132 shall be described in the Contractor’s water conservation plan. 
Contract No. 14-06-200-1911A-LTR1 

49 

1133 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1134 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

1135 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

1136 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

1137 Area. Any such water shall not be considered Project Water under this Contract. In addition, 

1138 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

1139 any water user within the Contractor's Service Area acquires or has available under any other 

1140 contract pursuant to Federal Reclamation law. 

1141 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

1142 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1143 and responsibility for funding a portion of the costs of such O&M, have been transferred to the 

1144 Operating Non-Federal Entity by separate agreement between the United States and the 

1145 Operating Non-Federal Entity. That separate agreement shall not interfere with or affect the 

1146 rights or obligations of the Contractor or the United States hereunder. 

1147 (b) The Contracting Officer has previously notified the Contractor in writing 

1148 that the O&M of a portion of the Project facilities which serve the Contractor has been 

1149 transferred to the Operating Non-Federal Entity, and therefore, the Contractor shall pay directly 

1150 to the Operating Non-Federal Entity, or to any successor approved by the Contracting Officer 

1151 under the terms and conditions of the separate agreement between the United States and the 

1152 Operating Non-Federal Entity described in subdivision (a) of this Article, all rates, charges, or 

1153 assessments of any kind, including any assessment for reserve funds, which the Operating 

1154 Non-Federal Entity or such successor determines, sets, or establishes for (i) the O&M of the 

1155 portion of the Project facilities operated and maintained by the Operating Non-Federal Entity or 
Contract No. 14-06-200-1911A-LTR1 

50 

1156 such successor, or (ii) the Friant Division’s share of the operation, maintenance and replacement 

1157 costs for physical works and appurtenances associated with the Tracy Pumping Plant, the 

1158 Delta-Mendota Canal, the O'Neill Pumping/Generating Plant, the federal share of the 

1159 O'Neill Forebay, the Mendota Pool, and the federal share of San Luis Unit joint use conveyance 

1160 and conveyance pumping facilities. Such direct payments to the Operating Non-Federal Entity 

1161 or such successor shall not relieve the Contractor of its obligation to pay directly to the 

1162 United States the Contractor’s share of the Project Rates, Charges, and Tiered Pricing 

1163 Component(s) except to the extent the Operating Non-Federal Entity collects payments on behalf 

1164 of the United States in accordance with the separate agreement identified in subdivision (a) of 

1165 this Article. 

1166 (c) For so long as the O&M of any portion of the Project facilities serving the 

1167 Contractor is performed by the Operating Non-Federal Entity, or any successor thereto, the 

1168 Contracting Officer shall adjust those components of the Rates for Water Delivered under this 

1169 Contract representing the cost associated with the activity being performed by the Operating 

1170 Non-Federal Entity or its successor. 

1171 (d) In the event the O&M of the Project facilities operated and maintained by 

1172 the Operating Non-Federal Entity is re-assumed by the United States during the term of this 

1173 Contract, the Contracting Officer shall so notify the Contractor, in writing, and present to the 

1174 Contractor a revised Exhibit “B” which shall include the portion of the Rates to be paid by the 

1175 Contractor for Project Water under this Contract representing the O&M costs of the portion of 

1176 such Project facilities which have been re-assumed. The Contractor shall, thereafter, in the 

1177 absence of written notification from the Contracting Officer to the contrary, pay the Rates, 
Contract No. 14-06-200-1911A-LTR1 

51 

1178 Charges, and Tiered Pricing Component(s) specified in the revised Exhibit “B” directly to the 

1179 United States in compliance with Article 7 of this Contract. 

1180 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1181 29. The expenditure or advance of any money or the performance of any obligation of 

1182 the United States under this Contract shall be contingent upon appropriation or allotment of 

1183 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

1184 obligations under this Contract. No liability shall accrue to the United States in case funds are 

1185 not appropriated or allotted. 

1186 

1187 BOOKS, RECORDS, AND REPORTS

1188 30. (a) The Contractor shall establish and maintain accounts and other books and 

1189 records pertaining to administration of the terms and conditions of this Contract, including: the 

1190 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1191 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

1192 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

1193 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

1194 Officer may require. Subject to applicable Federal laws and regulations, each party to this 

1195 Contract shall have the right during office hours to examine and make copies of the other party's 

1196 books and records relating to matters covered by this Contract. 

1197 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

1198 books, records, or other information shall be requested from the Contractor by the Contracting 

1199 Officer unless such books, records, or information are reasonably related to the administration or 

1200 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1201 time within which to provide the requested books, records, or information. 

1202 (c) At such time as the Contractor provides information to the Contracting 

1203 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided 

1204 to the Operating Non-Federal Entity. 

1205 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1206 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1207 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1208 therein shall be valid until approved in writing by the Contracting Officer. 

1209 
Contract No. 14-06-200-1911A-LTR1 

52 

1210 (b) The assignment of any right or interest in this Contract by either party 

1211 shall not interfere with the rights or obligations of the other party to this Contract absent the 

1212 written concurrence of said other party. 

1213 (c) The Contracting Officer shall not unreasonably condition or withhold 

1214 approval of any proposed assignment. 

1215 SEVERABILITY

1216 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

1217 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor 

1218 (iii) an association or other form of organization whose primary function is to represent parties to 

1219 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1220 enforceability of a provision included in this Contract and said person, entity, association, or 

1221 organization obtains a final court decision holding that such provision is legally invalid or 

1222 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

1223 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

1224 final court decision identify by mutual agreement the provisions in this Contract which must be 

1225 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

1226 The time periods specified above may be extended by mutual agreement of the parties. Pending 

1227 the completion of the actions designated above, to the extent it can do so without violating any 

1228 applicable provisions of law, the United States shall continue to make the quantities of Project 

1229 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

1230 Contract which were not found to be legally invalid or unenforceable in the final court decision. 
Contract No. 14-06-200-1911A-LTR1 

53 

1231 RESOLUTION OF DISPUTES

1232 33. Should any dispute arise concerning any provisions of this Contract, or the 

1233 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

1234 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

1235 Officer referring any matter to Department of Justice, the party shall provide to the other party 

1236 30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

1237 required where a delay in commencing an action would prejudice the interests of the party that 

1238 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

1239 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

1240 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

1241 United States may have. 

1242 OFFICIALS NOT TO BENEFIT

1243 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1244 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1245 manner as other water users or landowners. 

1246 CHANGES IN CONTRACTOR’S SERVICE AREA

1247 35. (a) While this Contract is in effect, no change may be made in the 

1248 Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

1249 or otherwise, except upon the Contracting Officer's written consent. 

1250 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1251 Officer will notify the Contractor of any additional information required by the Contracting 

1252 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

1253 schedule for timely completion of the process. Such process will analyze whether the proposed 

1254 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

1255 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 
Contract No. 14-06-200-1911A-LTR1 

54 

1256 to pay for any Federally-constructed facilities for which the Contractor is responsible; and 

1257 (iii) have an impact on any Project Water rights applications, permits, or licenses. In addition, 

1258 the Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

1259 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

1260 be paid in accordance with Article 25 of this Contract. 

1261 FEDERAL LAWS

1262 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1263 the validity or application in connection with the performance of the terms and conditions of this 

1264 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1265 the terms and conditions of this Contract unless and until relief from application of such Federal 

1266 law or regulation to the implementing provision of the Contract is granted by a court of 

1267 competent jurisdiction. 

1268 NOTICES

1269 37. Any notice, demand, or request authorized or required by this Contract shall be 

1270 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1271 delivered to the Area Manager, South-Central California Area Office, 1243 “N” Street, Fresno, 

1272 California 93721, and on behalf of the United States, when mailed, postage prepaid, or delivered 

1273 to the Board of Directors of the Lewis Creek Water District, P. O. Box 911, Visalia, California 

1274 93278. The designation of the addressee or the address may be changed by notice given in the 

1275 same manner as provided in this Article for other notices. 

1276 CONFIRMATION OF CONTRACT

1277 38. The Contractor, after the execution of this Contract, shall promptly seek to secure 

1278 a decree of a court of competent jurisdiction of the State of California, confirming the execution 

1279 of this Contract. The Contractor shall furnish the United States a certified copy of the final 

1280 decree, the validation proceedings, and all pertinent supporting records of the court approving 

1281 and confirming this Contract, and decreeing and adjudging it to be lawful, valid, and binding on 

1282 the Contractor. 
Contract No. 14-06-200-1911A-LTR1 

55 

1283 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

1284 the day and year first above written. 

1285 THE UNITED STATES OF AMERICA 

1286 By: ______________________________________ 

1287 Regional Director, Mid-Pacific Region 

1288 Bureau of Reclamation 

1289 (SEAL) 

1290 LEWIS CREEK WATER DISTRICT 

 

1291 By: ______________________________________ 

1292 President of the Board of Directors 

1293 Attest: 

1294 By: _____________________________ 

1295 Secretary of the Board of Directors 

1296 (H:\pub 440\LTRC\Final Draft LTRC’s – Fresno, Tracy\10-08-04 Lewis Creek Wd Final Draft 

1297 LTRC with exhibits.doc)
Contract No. 14-06-200-1911A-LTR1 

EXHIBIT A

[Map or Description of Service Area]
Contract No. 14-06-200-1911A-LTR1 

EXHIBIT B

LEWIS CREEK WATER DISTRICT

Water Rates and Charges 

Note: Rates and Charges are 2004 rates. This exhibit will be updated prior to execution of the 

 contract to reflect the current Rates and Charges. 

 2004 Rates Per Acre-Foot

 Irrigation Water Other 

 Class 1 Water*

O&M AND COST-OF-SERVICE RATES: 

Capital Rates: $10.56 

O&M Rates: 

Water Marketing $ 7.59 

Storage $ 5.83 

Conveyance ** 

Conveyance Pumping ** 

Deficit Rates: 

Non-Interest Bearing $0.02 

Interest Bearing $6.43 

CFO/PFR Adjustment Rate*** $3.49 

TOTAL COST-OF-SERVICE-RATES: $33.92 

FULL-COST RATES:

Section 202(3) Rate is applicable to a Qualified Recipient or to a 

Limited Recipient receiving irrigation water on or before October 1, 1981. $79.71 

Section 205(a)(3) Rate is applicable to a Limited Recipient that did 

not receive irrigation water on or before October 1, 1981. $109.76 

SURCHARGES UNDER P.L. 102-575

 TO RESTORATION FUND

Friant Surcharge [3406(c)(1)] $7.00 

Restoration Payments [3407(d)(2)(A)] $7.82 

 * Other Water rate will be computed as equal to an M&I rate when needed. 

 ** Conveyance and conveyance pumping operation and maintenance costs were removed 

for ratesetting purposes and are to be billed directly to the water authorities. 

 *** Rate represents the Chief Financial Officer (CFO) adjustment and Provision for 

Replacement (PFR) credit for option 2 cost deferment to be distributed over a 5-year period 

beginning with 2003 water rates. 

Note: The surcharges are in addition to the water rates and were determined pursuant to Title 

XXXIV of Public Law 102-575 (CVPIA). The Restoration Fund surcharges are on a fiscal year 

basis (10/1-9/30).