August 22, 2002 

Andrew M. Hitchings, Esq. 

Somach, Simmons & Dunn 

813 Sixth Street, Third Floor 

Sacramento, CA 95814 

Subject: Reclamation Proposed Language for Articles 1(b), 3(e), and 20, Sacramento 

River Settlement Contracts 

Dear Andy: 

Reclamation has reviewed and considered the proposals made by the Contractors in 

Stuart Somach’s letter of August 5, 2002 addressed to Michael Ryan and the statements 

made at the last negotiation session on August 14, 2002 in regard to the three Articles 

referenced above. With regard to each, Reclamation proposes the following language for 

the respective Articles, for the reasons stated. 

1. Article 1(b)- Proposed definition of “Basinwide Water Management 

Plan.” 

 We believe that this term should be defined in the easiest manner possible, 

by simply stating the definition without reference to documents extrinsic to the contract 

itself. We would therefore propose the following definition: 

1(b) “Basinwide Water Management Plan” shall mean the mutually agreeable

Sacramento River Basinwide Water Management Plan dated 

_______developed by Glenn Colusa Irrigation District, Maxwell Irrigation 

District, Natomas Central Mutual Water Company, Pelger Mutual Water 

Company, Princeton-Codora Glenn Irrigation District, Provident Irrigation 

District, Reclamation District 108, Sutter Mutual Water Company, AndersonCottonwood Irrigation District, M&T, Inc., Meridian Farms Water Company, 

Reclamation District 1004 and the U.S. Bureau of Reclamation. 

This definition would only need to be used in the contracts for those contractors that 

participated in the Basinwide Management Plan. 

2. Articles 3(e). and 20. We have first considered the question of whether 

these articles are redundant and have concluded that they are not. Article 3 deals with the 

sale, transfer or exchange of water between entities and the phrase, “the right to the use 

thereof for use on land other than that shown on Exhibit B” must be read in the context of 

a sale, transfer or exchange between entities. On the other hand, Article 20 addresses 

changes in place of use or in the organizational structure of the individual contractor 

signing the contract. The use of the phrase “in the place of water use” in this context 

refers to the contractor’s approved service area or the district boundaries. We believe 

that these are two distinct concepts and should not be combined into one article. We 

have therefore proposed the following: 
 3(e) No sale, transfer, exchange, or other disposal of any of the Contract Total 

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

that shown on Exhibit B shall be made by the Contractor without first obtaining 

the written consent of the Contracting Officer. Such consent will not be 

unreasonably withheld and a decision will be rendered in a timely manner. For 

short-term actions that will occur within one year or less, the decision will be 

rendered within 30 days after receipt of a complete written proposal. For longterm actions that will occur in a period longer than one year, the decision will be 

rendered within 90days after receipt of a complete written proposal. For a 

proposal to be deemed complete by the Contracting Officer, it must comply 

with all provisions required by State and Federal law, including information 

sufficient to enable the Contracting Officer to comply with the National 

Environmental Policy Act, the Endangered Species Act, and applicable rules or 

regulations then in effect; Provided that, such consent does not authorize the use 

of Federal facilities to facilitate or effectuate the sale, transfer, exchange or 

other disposal of Base Supply. Such use of Federal facilities will be the subject 

of a separate agreement to be entered into between the Contractor and 

Reclamation. 

CHANGE OF PLACE OF USE OR ORGANIZATION

19 20. (a) Unless the written consent of the United States is first obtained no 

change shall be made in the place of water use shown on Exhibit B. 

(b) While this contract Settlement Contract is in effect, no change shall be made 

in the area of the Contractor as shown on its Exhibit B, by inclusion, or exclusion,

annexation, or detachment of lands, by dissolution, consolidation, or merger or 

otherwise, except upon the Contracting Officer’s written assent consent thereto. 

Such consent will not be unreasonably withheld, and a decision will be rendered 

in a timely manner. 

(c) In the event lands are annexed to or excluded detached from the area of 

the Contractor, as provided herein, the quantity of Project Water to be diverted 

may be increased or decreased, as may be appropriate, pursuant to a 

supplemental agreement to be executed in respect thereto. 

I believe the language of Article 20 was essentially agreed upon at the last negotiation. 

Reclamation looks forward to discussing the above proposals at the next negotiation on 

August 28, 2002. 

Sincerely, 

Michael J. Ryan