Irrigation and M&I 

Rev. R. O. Draft 10/20-2004 

Rev. SCCAO Draft 10/17-2004

Rev. SCCAO Draft 09/16-2004 

Rev. SCCAO Draft 08/17-2004 

Rev. SCCAO Draft 08/136-2004 

SCCAO Draft 11/16-2000 

Contract No. 

14-06-200-8237A-LTR1

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT AMONG THE UNITED STATES,

THE DEPARTMENT OF WATER RESOURCES OF THE STATE OF CALIFORNIA,

AND LOWER TULE RIVER IRRIGATION DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

 

Table of Contents

Article No. Title Page No.

 Preamble .............................................................................................................. 1-2 

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

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

 2 Term of Contract.............................................................................................. 10-14

 3 Water to be Made Available and Delivered to the Contractor......................... 14-19 

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

 5 Point of Diversion and Responsibility for Distribution of Water....................21-26 

 6 Measurement of Water Within the Contractor’s Service Area........................ 26-28 

 7 Rates and Method of Payment for Water......................................................... 28-35 

 8 Rates and Method of Payment for Conveyance 

 and Other Services by DWR....................................................................... 35-37 

 9 Sales, Transfers, or Exchanges of Water ......................................................... 37-39 

 10 Application of Payments and Adjustments...................................................... 39-40 

 11 Temporary Reductions--Return Flows ............................................................ 40-41 

 12 Constraints on the Availability of Water ......................................................... 41-43 

 13 Unavoidable Groundwater Percolation................................................................. 43 

 14 Rules and Regulations........................................................................................... 43 

 15 Water and Air Pollution Control........................................................................... 43 

 16 Quality of Water .............................................................................................. 43-44 

 17 Water Acquired by the Contractor Other Than From the United States.......... 44-45 

 18 Opinions and Determinations ............................................................................... 46 

 19 Coordination and Cooperation......................................................................... 46-48
Contract No. 14-06-200-8237A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 20 Charges for Delinquent Payments ........................................................................ 48

 21 Equal Opportunity............................................................................................48-50 

 22 General Obligation--Benefits Conditioned Upon Payment ............................. 50-51 

 23 Compliance With Civil Rights Laws and Regulations .................................... 51-52 

 24 Privacy Act Compliance ....................................................................................... 52 

 25 Contractor to Pay Certain Miscellaneous Costs............................................... 52-53 

 26 Water Conservation ......................................................................................... 53-54 

 27 Existing or Acquired Water or Water Rights................................................... 54-55 

 28 Operation and Maintenance by Operating Non-Federal Entity ....................... 55-56 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 56 

 30 Books, Records, and Reports........................................................................... 56-57 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 57 

 32 Severability ...................................................................................................... 57-58 

 33 Resolution of Disputes.......................................................................................... 58 

 34 Officials Not to Benefit......................................................................................... 59 

 35 Changes in Contractor’s or Subcontractor’s Service Area ................................... 59 

 36 Federal Laws.................................................................................................... 59-60 

 37 Notices .................................................................................................................. 60

 38 Confirmation of Contract...................................................................................... 60 

 Signature Page ...................................................................................................... 61 

 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges 
Rev. R. O. Draft 10/20-2004 

Rev. SCCAO Draft 10/17-2004

Rev. SCCAO Draft 09/16-2004 

Rev. SCCAO Draft 08/17-2004 

Rev. SCCAO Draft 08/136-2004 

SCCAO Draft 11/16-2000 

Contract No. 

14-06-200-8237A-LTR1

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT AMONG THE UNITED STATES,

6 THE DEPARTMENT OF WATER RESOURCES OF THE STATE OF CALIFORNIA,

7 AND LOWER TULE RIVER IRRIGATION DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

 

9 THIS CONTRACT, made this _____ day of ____________________, 2005, in 

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

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

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

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

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

15 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law and pursuant 

16 to the California Central Valley Project Act [Part 3, Division 6 (commencing at Section 11100) 

17 of the California Water Code] and the California Water Resources Development Bond Act 

18 [Chapter 8, Part 6, Division 6 (commencing at Section 12930) of the California Water Code,] 

19 and all acts of the California legislature amendatory thereto or supplementary thereof, among 

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

21 DEPARTMENT OF WATER RESOURCES OF THE STATE OF CALIFORNIA, hereinafter 
Contract No. 14-06-200-8237A-LTR1 

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22 referred to as DWR, and LOWER TULE RIVER IRRIGATION DISTRICT, hereinafter referred 

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

24 acting pursuant to the laws thereof; 

25 WITNESSETH, That: 

26 EXPLANATORY RECITALS

[1st 27 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

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

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

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

32 and the San Joaquin River and their tributaries; and 

[2nd 33 ] WHEREAS, the United States constructed the Project facilities, which will be 

34 used in part for the furnishing of water to the Contractor pursuant to the terms of this Contract; 

35 and 

36 [2.2] WHEREAS, as provided herein, Project Water may be made available to the 

37 Contractor from the Sacramento-San Joaquin Delta and/or the Friant Division and delivered to 

38 the Contractor through appropriate federal, state and/or local facilities; and 

39 [2.3] WHEREAS, DWR is engaged in the operation of the State Water Resources 

40 Development System pursuant to the laws of the State of California involving the development, 

41 transportation, and delivery of water supplies to public agencies throughout the State of 

42 California; and 
Contract No. 14-06-200-8237A-LTR1 

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43 [2.4] WHEREAS, the Cross Valley Canal, connecting the California Aqueduct and the 

44 Friant-Kern Canal in Kern County, has been constructed by the Contractor and others at no cost 

45 to either the United States or DWR; and 

46 [2.5] WHEREAS, the Contractor has the right to use the Cross Valley Canal for 

47 conveyance of the Project Water furnished hereunder; and 

[3rd 48 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

[4th 50 ] WHEREAS, the Contractor and the United States entered into Contract 

51 No. 14-06-200-8237A, as amended, which established terms for the delivery to the Contractor of 

52 Project Water via the Cross Valley Canal from November 12, 1975, through February 29, 1996; 

53 and 

[5th 54 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

55 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

56 interim renewal contract(s) identified as Contract No(s). 14-06-200-8237A-IR1, -IR2, -IR3, 

57 -IR4, -IR5, -IR6, -IR7, and -IR8, the current of which is hereinafter referred to as the Existing 

58 Contract, which provided for the continued water service to the Contractor from March 1, 2004, 

59 through February 28, 2005; and 

[6th 60 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of 

61 the Existing Contract following completion of appropriate environmental documentation, 

62 including a programmatic environmental impact statement (PEIS) pursuant to the National 

63 Environmental Policy Act (NEPA) analyzing the direct and indirect impacts and benefits of 

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

65 and 
Contract No. 14-06-200-8237A-LTR1 

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

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

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

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

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

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

72 of its obligations under the Existing Contract; and 

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

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

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

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

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

78 and 

[11th 79 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

81 as an essential portion of its water supply; and 

[12th 82 ] WHEREAS, the economies of regions within the Project, including the 

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

84 Project; and 

[13th 85 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

87 Project for all Project purposes; and 
Contract No. 14-06-200-8237A-LTR1 

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[14th 88 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

93 of the United States relative to the Project; and 

[15th 94 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

95 relationship in order to achieve their mutual goals; and 

96 [15.2] WHEREAS, the Contractor desires to contract with DWR for conveyance of 

97 Project Water through the facilities of the State Water Project (SWP) as aforesaid under an 

98 arrangement wherein the United States will furnish the necessary power for pumping such water 

99 through DWR's Delta Pumping Plant and Dos Amigos Pumping Plant pursuant to the then100 existing CVP Project use power policy; and 

101 [15.3] WHEREAS, DWR is willing to convey such water through State Facilities subject 

102 to needs and obligations of the SWP and the availability of transportation capacity and payment 

103 of costs as herein provided; and 

[16th 104 ] WHEREAS, the United States, DWR, and the Contractor are willing to enter into 

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

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

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

108 DEFINITIONS

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

110 incompatible with the intent of the parties as expressed in this Contract, the term: 
Contract No. 14-06-200-8237A-LTR1 

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

112 both dates inclusive; 

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

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

115 annually by the Contracting Officer pursuant to this Contract; 

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

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

118 Contract Total; 

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

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

121 or regulation; 

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

123 Contractor is entitled under subdivision (a) of Article 3 of this contract; 

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

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

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

127 without amendment of this Contract; 

128 (f2) “Cross Valley Canal” shall mean the water conveyance and related works 

129 constructed by the Contractor and others to deliver water from the State Facilities, which canal 

130 currently is operated by KCWA; 

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

132 XXXIV of the Act of October 30, 1992 (106 Stat. 4706); 
Contract No. 14-06-200-8237A-LTR1 

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

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

135 (96 Stat. 1263), as amended, hereinafter referred to as RRA; 

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

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

138 Reclamation law; 

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

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

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

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

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

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

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

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

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

148 and Regulations for the RRA; 

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

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

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

152 to the delivery of Irrigation Water; 

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

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

155 incidental thereto, and watering of livestock; 
Contract No. 14-06-200-8237A-LTR1 

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156 (m2) “KCWA” shall mean the Kern County Water Agency; 

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

158 nonexempt land, as provided in 43 CFR 426.2; 

159 (o) “Municipal and Industrial (M&I) Water” shall mean Project Water, other 

160 than Irrigation Water, made available to the Contractor. M&I Water shall include water used for 

161 human use and purposes such as the watering of landscaping or pasture for animals (e.g., horses) 

162 which are kept for personal enjoyment or water delivered to land holdings operated in units of 

163 less than five acres unless the Contractor establishes to the satisfaction of the Contracting Officer 

164 that the use of water delivered to any such landholding is a use described in subdivision (m) of 

165 this Article; 

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

167 the delivery of M&I Water; 

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

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

170 maintenance of Project facilities; 

171 (r) “Operating Non-Federal Entity” shall mean either the San Luis & 

172 Delta-Mendota Water Authority or the Friant Water Authority, their successors or assigns, non173 Federal entities which have the obligation to operate and maintain all or a portion of the Project 

174 facilities pursuant to agreements with the United States, and which may have funding obligations 

175 with respect thereto; 

176 (r2) “Operations Manual” shall mean the manual setting forth detailed 

177 operations and management procedures prepared by DWR, the Contracting Officer and the 

178 Contractor; 
Contract No. 14-06-200-8237A-LTR1 

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

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

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

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

183 Reclamation law; 

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

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

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

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

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

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

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

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

192 preceding contract(s); 

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

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

195 through any agency of the Department of the Interior; 

196 (x2) “State Facilities” shall mean that portion of the SWP (including DWR's 

197 portion of joint facilities), necessary to convey Project Water from the Sacramento-San Joaquin 

198 Delta (Delta) to Reach 16A of the California Aqueduct; 

199 (x3) "SWP" shall mean the California State Water Project; 

200 (x4) "SWP Contractor" shall mean those entities with a long-term water supply 

201 contract for water deliveries of SWP water on the date this Contract is executed; 
Contract No. 14-06-200-8237A-LTR1 

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

203 paid for each acre-foot of Water Delivered as described in subdivision (j) of Article 7 of this 

204 Contract; 

205 (y2) “Transportation Minimum OMP&R Costs” and “Transportation 

206 Variable OMP&R Costs” shall mean those costs as defined in the long-term SWP contracts and 

207 as annually described in DWR Bulletin 132; 

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

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

210 Officer; 

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

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

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

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

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

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

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

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

219 TERM OF CONTRACT

220 2. (a) This Contract shall be effective March 1, 2005, through February 28, 

221 2030. In the event the Contractor wishes to renew this Contract beyond February 28, 2030, the 

222 Contractor shall submit a request for renewal in writing to the Contracting Officer no later than 

223 two years prior to the date this Contract expires. The renewal of this Contract insofar as it 

224 pertains to the furnishing of Irrigation Water to the Contractor shall be governed by subdivision 
Contract No. 14-06-200-8237A-LTR1 

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225 (b) of this Article, and the renewal of this Contract insofar as it pertains to the furnishing of M&I 

226 Water to the Contractor shall be governed by subdivision (c) of this Article. The term of this 

227 Contract and its renewal insofar as it pertains to conveyance of water in SWP Facilities shall be 

228 governed by subdivision (e) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

240 maintaining all water measuring devices and implementing all water measurement methods as 

241 approved by the Contracting Officer pursuant to Article 6 of this Contract; (iv) the Contractor 

242 has reasonably and beneficially used the Project Water supplies made available to it and, based 

243 on projected demands, is reasonably anticipated and expects to fully utilize for reasonable and 

244 beneficial use the quantity of Project Water to be made available to it pursuant to such renewal; 

245 (v) the Contractor is complying with all terms and conditions of this Contract; and (vi) the 

246 Contractor has the physical and legal ability to deliver Project Water. 
Contract No. 14-06-200-8237A-LTR1 

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

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

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

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

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

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

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

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

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

256 circumstances of the region served by the Contractor. 

257 (c) This Contract, insofar as it pertains to the furnishing of M&I Water to the 

258 Contractor, shall be renewed for successive periods of up to 40 years each, which periods shall 

259 be consistent with then-existing Reclamation-wide policy, under terms and conditions mutually 

260 agreeable to the parties and consistent with Federal and State law. The Contractor shall be 

261 afforded the opportunity to comment to the Contracting Officer on the proposed adoption and 

262 application of any revised policy applicable to the delivery of M&I Water that would limit the 

263 term of any subsequent renewal contract with the Contractor for the furnishing of M&I Water to 

264 less than 40 years. 

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

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

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

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

269 Act of July 2, 1956 (70 Stat. 483). The Contracting Officer shall also make a determination ten 
Contract No. 14-06-200-8237A-LTR1 

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

271 of the Contract of whether a conversion of the relevant portion of this Contract to a contract 

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

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

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

275 during the term of this Contract, all authorized Project construction expected to occur will have 

276 occurred, and on that basis the Contracting Officer agrees upon such completion to allocate all 

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

278 allocation is made, and subject to satisfaction of the conditions set out in this subdivision, this 

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

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

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

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

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

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

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

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

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

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

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

290 make such a determination as soon thereafter as possible so as to permit, upon request of the 

291 Contractor and satisfaction of the conditions set out above, conversion to a contract under 

292 subsection 9(d) or 9(c)(1), whichever is applicable. In the event such determination of costs has 
Contract No. 14-06-200-8237A-LTR1 

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

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

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

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

297 subdivision. 

298 (e) DWR’s agreement to convey water under this Contract shall be effective 

299 until February 28, 2030. Thereafter, DWR and the Contractor may renew the agreement to 

300 convey for additional periods on terms mutually agreeable to the parties. The parties 

301 acknowledge that operation of SWP, including the State Facilities, is not, and shall not be, 

302 subject to Federal Reclamation law. 

303 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

306 this Contract, the Contracting Officer shall make available in the Delta for delivery to the 

307 Contractor 31,102 acre-feet of Project Water for irrigation and M&I purposes. Cross Valley 

308 Contractors shall have a primary priority to pumping capacity made available by the SWP for 

309 CVP purposes up to the allocation made for CVP irrigation contractors south of the Delta. 

310 Allocations of water supply to Cross Valley Contractors and any additional pumping capacity 

311 made available by SWP for Cross Valley Contractors’ purposes shall be addressed in the 

312 Operations Manual. Water Delivered to the Contractor in accordance with this subdivision shall 

313 be scheduled, and paid for pursuant to the provisions of Articles 4 and 7 of this Contract, 

314 attached exhibits, and the Operations Manual (including any subsequent modifications thereto). 
Contract No. 14-06-200-8237A-LTR1 

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

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

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

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

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

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

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

322 water made available to the Contractor was 21,305 acre-feet. Nothing in subdivision (b) of this 

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

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

325 applicable legal requirements. 

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

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

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

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

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

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

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

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

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

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

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

337 banking programs, surface water storage programs, and other similar programs utilizing Project 
Contract No. 14-06-200-8237A-LTR1 

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

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

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

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

342 guidelines. 

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

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

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

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

347 Contract, which evidences in excess of 29 years of diversions for irrigation and/or M&I purposes 

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

349 considered in developing an appropriate baseline for the biological assessment(s) prepared 

350 pursuant to the ESA, and any other needed environmental review. Nothing herein shall be 

351 construed to prevent the Contractor from challenging or seeking judicial relief in a court of 

352 competent jurisdiction with respect to any biological opinion or other environmental 

353 documentation referred to in this Article. 

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

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

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

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

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

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

360 Project Water, or other water available to the Project, can be made available to the Contractor, 
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361 the Contracting Officer will announce the availability of such water and shall so notify the 

362 Contractor as soon as practicable. The Contracting Officer will thereafter meet with the 

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

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

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

366 in accordance with applicable statutes, regulations, guidelines, and policies. If the Contracting 

367 Officer determines that there is an unusually large water supply not otherwise storable for Project 

368 purposes or infrequent and otherwise unmanaged flood flows of short duration from the Friant 

369 Division, then Friant Division Project Water may be made available to the Contractor as Section 

370 215 Water if the Contractor enters into a temporary contract, not to exceed one year, with the 

371 United States for the delivery of such water or, as otherwise provided for in Federal Reclamation 

372 law and associated regulations: Provided, That such water shall be first made available to the 

373 original 28 long-term Friant Division contractors. Water in addition to the quantities provided 

374 for in this Contract made available to the Contractor by the Contracting Officer shall be 

375 scheduled, conveyed and/or stored by DWR only to the extent that DWR has provided separate 

376 approval to do so. 

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

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

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

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

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

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

383 guidelines, and policies. 
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384 (h) The Contractor’s right pursuant to Federal Reclamation law and applicable 

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

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

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

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

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

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

391 contracts. 

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

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

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

395 conditions of such approval. 

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

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

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

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

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

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

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

403 Contract to use Project Water. 

404 (k) Conveyance and/or storage of Project Water by DWR shall be subject to 

405 capacity available in State Facilities in excess of capacity determined by DWR in its sole 

406 discretion to be needed for all SWP operations. For purposes of determining the available 
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407 capacity under this Contract, the deliveries of Project Water to the Contractor shall not be 

408 considered a “service to long-term SWP Contractors,” notwithstanding any arrangement the 

409 Contractor may have with a SWP Contractor. Conveyance and/or storage for the Contractor may 

410 be curtailed prior or subsequent to approval of the Contractor's schedule under Article 4 of this 

411 Contract, in the event DWR determines it will interfere with the delivery of water to SWP 

412 Contractors or other SWP operations necessary to meet long-term obligations of the SWP, 

413 including delivery of water to SWP storage or re-regulation of stored water for delivery to SWP 

414 Contractors. 

415 (l) If in any Year after DWR and the Contracting Officer have approved a 

416 schedule or any revision thereof submitted in accordance within subdivision (a) and (b) of 

417 Article 4 of this Contract, and if the Contracting Officer and/or DWR are unable to make water 

418 of suitable quality available in the quantities and at the times requested in the schedule and the 

419 Contractor does not elect to receive and does not receive such water at other times during such 

420 Year, then the Contractor shall be entitled to an adjustments for overpayment as provided in 

421 subdivision (c) of Article 7, subdivision (d) of Article 8, and Article 10 of this Contract. 

422 Notwithstanding any other provision of law, this shall be the Contractor’s sole remedy against 

423 the State of California, DWR, its officers, agents and employees for failure to deliver a quantity 

424 of water of suitable quality under this Contract for any reason. 

425 TIME FOR DELIVERY OF WATER

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

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

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

429 Historic Average and will be updated monthly, and more frequently if necessary, based on 
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430 then-current operational and hydrologic conditions and a new declaration with changes, if any, to 

431 the Water Made Available will be made. The Contracting Officer shall provide forecasts of 

432 Project operations and the basis of the estimate, with relevant supporting information, upon the 

433 written request of the Contractor. Concurrently with the declaration of the Water Made 

434 Available, the Contracting Officer shall provide the Contractor with the updated Recent Historic 

435 Average. The declaration of Project operations will be expressed in terms of both Water Made 

436 Available and the Recent Historic Average. 

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

438 Contractor, after approval of the receiving agency on behalf of the Contractor, shall submit to 

439 DWR and the Contracting Officer a written schedule, satisfactory to the Contracting Officer and 

440 consistent with the criteria specified in the Operations Manual. The written schedule shall show 

441 the monthly quantities of Project Water to be delivered by the United States to the Contractor 

442 pursuant to this Contract for the Year commencing on such March 1. The Contracting Officer 

443 shall use all reasonable means to deliver Project Water according to the approved schedule for 

444 the Year commencing on such March 1. 

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

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

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

448 during any Year. 

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

450 Contract, the United States and DWR shall deliver Project Water to the Contractor in accordance 

451 with the initial schedule submitted by the Contractor pursuant to subdivision (b) of this Article, 

452 or any written revision(s), satisfactory to the Contracting Officer, thereto submitted within a 
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453 reasonable time prior to the date(s) on which the requested change(s) is/are to be implemented. 

454 (e) Scheduling and delivery of Project Water to the Contractor shall be in 

455 accordance with detailed procedures set forth in the Operations Manual as it may be amended 

456 from time to time. 

457 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

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

460 and/or State facilities or another location or locations mutually agreed to in writing by the 

461 Contracting Officer, DWR, and the Contractor. The parties acknowledge that Project Water to 

462 be furnished to the Contractor pursuant to this Contract shall be conveyed by DWR and 

463 delivered to the Contractor by direct delivery via the Cross Valley Canal and/or by exchange 

464 arrangements involving Arvin-Edison Water Storage District or others. The parties further 

465 acknowledge that such exchange arrangements are not transfers subject to Section 3405(a) of 

466 CVPIA. Notwithstanding Article 9 of this Contract, such exchange arrangements, other than the 

467 previously approved exchange arrangements with Arvin-Edison Water Storage District, shall be 

468 submitted to the Contracting Officer for approval in accordance with principles historically 

469 applied by the Contracting Officer in approving Cross Valley exchange arrangements. DWR 

470 shall have no obligation to make such exchange arrangements or be responsible for water 

471 transported in facilities that are not a part of the SWP. 

472 (b) Omitted. 

473 (b2) When Project Water is made available by the Contracting Officer at 

474 Clifton Court Forebay, DWR shall provide to the Contractor, subject to the availability of 

475 capacity as determined by DWR, conveyance from the Delta and storage in DWR’s share of 
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476 storage at San Luis Reservoir, if necessary, of such Project Water consistent with subdivision (k) 

477 of Article 3, the following provisions, and the Operations Manual; 

478 (1) The Contracting Officer shall deliver or cause to be delivered into 

479 the DWR's Clifton Court Forebay, or at other points mutually agreed to by the parties in 

480 accordance with Article 5, Project Water in such quantities and of such quality as shall be 

481 sufficient to perform the Contracting Officer's and DWR's obligation to furnish water to the 

482 Contractor as set forth in this Contract. Such deliveries into Clifton Court Forebay shall be made 

483 at such times and rates of flow as the Contracting Officer and DWR shall agree. 

484 (2) DWR, in accordance with an approved Project Water delivery 

485 schedule, shall convey the amount of water delivered into DWR's Clifton Court Forebay by the 

486 Contracting Officer directly: (i) to turnouts from the California Aqueduct from Reaches 3 

487 through 16A or to other points of diversion mutually agreed to in writing by DWR and the 

488 Contractor, or (ii) to DWR or Federal share of storage in San Luis Reservoir for later release and 

489 delivery to the Contractor or (iii) to replace water delivered to the Contractor from DWR's share 

490 of San Luis Reservoir prior to DWR receiving Project Water from the Contracting Officer, to the 

491 extent DWR determines under subdivision (k) of Article 3 that capacity (and water in the event 

492 of an exchange) is available for such conveyance, storage, or exchange (if any). Such deliveries 

493 of Project Water shall be required to be made pursuant to subdivision (k) of Article 3 and in a 

494 manner which will not increase the cost of or adversely affect SWP operations and the quantity 

495 or quality of water deliveries to SWP Contractors. 

496 (3) If DWR delivers water to the Contractor from DWR's share of 

497 storage in San Luis Reservoir prior to the Contracting Officer providing Project Water at DWR's 
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498 Clifton Court Forebay, the United States shall return a like amount of water to DWR pursuant to 

499 the procedures set forth in the Operations Manual. 

500 (4) The total amount of Project Water delivered at Clifton Court 

501 Forebay to DWR by the Contracting Officer shall include water to compensate DWR for water 

502 conveyance and storage losses incurred in the delivery of Project Water to the Contractor. The 

503 amount of such conveyance and storage losses will be determined pursuant to procedures set 

504 forth in the Operations Manual. 

505 (5) Project Water received by DWR at Clifton Court Forebay for 

506 conveyance and/or storage for delivery to the Contractor will be commingled with waters of 

507 DWR which are pumped through facilities of the California Aqueduct and with other waters of 

508 both the United States and DWR in the joint use facilities of the San Luis Unit. 

509 (6) Priorities for use of DWR's share of storage at San Luis Reservoir 

510 for storage of Project Water shall be subject to subdivision (k) of Article 3 and all DWR 

511 obligations to the SWP operations and SWP Contractors and to the criteria specified in the 

512 Operations Manual. 

513 (7) Subject to the necessary arrangements, the Contracting Officer 

514 shall transmit or cause to be transmitted, by exchange or otherwise, such quantities of power as 

515 shall be required by DWR to pump through its Delta Pumping Plant and its share of Dos Amigos 

516 Pumping Plant, the quantities of Project Water transported into Clifton Court Forebay pursuant 

517 to (1) of this subdivision. 

518 (8) DWR shall furnish the Contracting Officer with such information 

519 as the Contracting Officer and DWR agree is needed regarding the timing and quantities of 

520 power required by DWR to pump Project Water. Such information shall be exchanged between 
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521 the Contracting Officer and DWR in accordance with provisions set forth in the Operations 

522 Manual. 

523 (9) The Contracting Officer and DWR may, under terms and 

524 conditions satisfactory to both, and in accordance with applicable law, exchange water and/or 

525 power necessary for delivery of Project Water to the Contractor under terms of this Contract. 

526 Such exchange shall be in accordance with the provisions set forth in the Operations Manual. 

527 (b3) To the extent that Friant Division Project Water exceeds Friant Division 

528 Contract demand and other Project purposes, as determined by the Contracting Officer, and if the 

529 Contractor so requests, the Contracting Officer, subject to subdivision (d) of Article 3 of this 

530 Contract, shall make Project Water provided for in subdivision (a) of Article 3 of this Contract 

531 available from such Friant Division supplies. 

532 (b4) Project Water may be provided by the Contracting Officer to the 

533 Contractor, at the Contractor's request and subject to the terms and conditions of this Contract, 

534 through Federal Delta diversion and conveyance facilities and/or stored in the Federal share of 

535 storage at San Luis Reservoir for re-regulation for later delivery to the Contractor to the extent 

536 such diversion, conveyance and/or storage does not diminish the ability of the Project to deliver 

537 Project Water to users in the Delta Division, San Luis Unit and San Felipe Division service areas 

538 pursuant to existing contracts and assignments or any renewals thereof, to meet current 

539 Reclamation commitments to Pajaro Valley Water Management Agency, or to meet other legal 

540 obligations of the Project including, but not limited to agreements related to the joint operation of 

541 the state and Federal projects. 

542 (c) The Contractor shall deliver Irrigation Water in accordance with any 

543 applicable land classification provisions of Federal Reclamation law and the associated 
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544 regulations. The Contractor shall not deliver Project Water to land outside the Contractor's 

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

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

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

548 United States, DWR or the Operating Non-Federal Entity/Entities at the point or points of 

549 delivery established pursuant to subdivision (a) of this Article. Upon the request of either party 

550 to this Contract, the Contracting Officer or DWR shall investigate, or cause to be investigated by 

551 the appropriate Operating Non-Federal Entity, the accuracy of such measurements and shall take 

552 any necessary steps to adjust any errors appearing therein. For any period of time when accurate 

553 measurements have not been made, the Contracting Officer shall consult with the Contractor and 

554 the appropriate Operating Non-Federal Entity prior to making a final determination of the 

555 quantity delivered for that period of time. 

556 (e) Neither the Contracting Officer, nor DWR, nor any Operating Non557 Federal Entity/Entities shall be responsible for the control, carriage, handling, use, disposal, or 

558 distribution of Water Delivered to the Contractor pursuant to this Contract beyond the delivery 

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

560 United States, DWR, and their officers, employees, agents, and assigns on account of damage or 

561 claim of damage of any nature whatsoever for which there is legal responsibility, including 

562 property damage, personal injury, or death arising out of or connected with the control, carriage, 

563 handling, use, disposal, or distribution of such Water Delivered beyond such delivery points, 

564 except for any damage or claim arising out of: (i) acts or omissions of the Contracting Officer, 

565 DWR, or any of their officers, employees, agents, or assigns, including the Operating Non566 Federal Entity/Entities, with the intent of creating the situation resulting in any damage or claim; 
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567 (ii) willful misconduct of the Contracting Officer, DWR, or any of their officers, employees, 

568 agents, or assigns, including the Operating Non-Federal Entity/Entities; (iii) negligence of the 

569 Contracting Officer or any of his officers, employees, agents, or assigns including the Operating 

570 Non-Federal Entity/Entities; or (iv) damage or claims resulting from a malfunction of facilities 

571 owned and/or operated by the United States, DWR, or the Operating Non-Federal Entity/Entities; 

572 Provided, That the Contractor is not the Operating Non-Federal Entity that owned or operated 

573 the malfunctioning facility(ies) from which the damage claim arose. In the event any such claim 

574 or liability, referenced in this Article or otherwise arising from this Contract, is made against 

575 DWR, its officers or its employees, the Contractor agrees to defend, indemnify and hold each of 

576 them harmless from such claim to the extent such claim does not arise from an error or omission 

577 of DWR related to the carriage and control of Project Water made available to the Contractor by 

578 the Contracting Officer. 

579 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

582 purposes within the Contractor’s Service Area is measured at each agricultural turnout and such 

583 water delivered for M&I purposes is measured at each M&I service connection. The water 

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

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

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

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

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

589 management of the water, to bill water users for water delivered by the Contractor; and, if 
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590 applicable, to record water delivered for M&I purposes by customer class as defined in the 

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

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

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

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

595 (c) of Article 26. 

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

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

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

599 to implement subdivision (a) of this Article and identifying the agricultural turnouts and the M&I 

600 service connections or alternative measurement programs approved by the Contracting Officer, 

601 at which such measurement devices or water measuring methods are being used, and, if 

602 applicable, identifying the locations at which such devices and/or methods are not yet being used 

603 including a time schedule for implementation at such locations. The Contracting Officer shall 

604 advise the Contractor in writing within 60 days as to the adequacy of, and necessary 

605 modifications, if any, of the measuring devices or water measuring methods identified in the 

606 Contractor’s report and if the Contracting Officer does not respond in such time, they shall be 

607 deemed adequate. If the Contracting Officer notifies the Contractor that the measuring devices 

608 or methods are inadequate, the parties shall within 60 days following the Contracting Officer’s 

609 response, negotiate in good faith the earliest practicable date by which the Contractor shall 

610 modify said measuring devices and/or measuring methods as required by the Contracting Officer 

611 to ensure compliance with subdivision (a) of this Article. 
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612 (c) All new surface water delivery systems installed within the Contractor's 

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

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

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

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

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

618 (e) The Contractor shall inform the Contracting Officer, DWR, and the 

619 Operating Non-Federal Entity/Entities on or before the 20th calendar day of each month of the 

620 quantity of Irrigation and M&I Water taken during the preceding month. 

621 RATES AND METHOD OF PAYMENT FOR WATER 

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

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

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

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

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

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

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

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

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

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

632 be revised annually. 

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

634 and Tiered Pricing Component as follows: 
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635 (1) Prior to July 1 of each Calendar Year, the Contracting Officer shall 

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

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

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

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

640 the Contracting Officer shall notify the Contractor in writing of the Charges to be in effect during 

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

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

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

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

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

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

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

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

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

650 (c) Except as otherwise provided in the Operations Manual, at the time the 

651 Contractor submits the initial schedule for the delivery of Project Water for each Year pursuant 

652 to subdivision (b) of Article 4 of this Contract, the Contractor shall make an advance payment to 

653 the United States equal to the total amount payable pursuant to the applicable Rate(s) set under 

654 subdivision (a) of this Article, for the Project Water scheduled to be delivered pursuant to this 

655 Contract during the first two calendar months of the Year. Before the end of the first month and 

656 before the end of each calendar month thereafter, the Contractor shall make an advance payment 

657 to the United States, at the Rate(s) set under subdivision (a) of this Article, for the Water 
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658 Scheduled to be delivered pursuant to this Contract during the second month immediately 

659 following. Adjustments between advance payments for Water Scheduled and payments at Rates 

660 due for Water Delivered shall be made before the end of the following month; Provided, That 

661 any revised schedule submitted by the Contractor pursuant to Article 4 of this Contract which 

662 increases the amount of Water Delivered pursuant to this Contract during any month shall be 

663 accompanied with appropriate advance payment, at the Rates then in effect, to assure that Project 

664 Water is not delivered to the Contractor in advance of such payment. In any month in which the 

665 quantity of Water Delivered to the Contractor pursuant to this Contract equals the quantity of 

666 Water Scheduled and paid for by the Contractor, no additional Project Water shall be delivered 

667 to the Contractor unless and until an advance payment at the Rates then in effect for such 

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

669 Scheduled and payments for the quantities of Water Delivered during each Year pursuant to this 

670 Contract shall be made as soon as practicable but no later than April 30th of the following Year, 

671 or 60 days after the delivery of Project Water carried over under subdivision (g) of Article 3 of 

672 this Contract if such water is not delivered by the last day of February. 

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

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

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

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

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

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

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

680 Entity/Entities or, if there is no Operating Non-Federal Entity, by the Contracting Officer. The 
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681 water delivery report shall be deemed a bill for the payment of Charges and the applicable Tiered 

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

683 Charges shall be made through the adjustment of payments due to the United States for Charges 

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

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

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

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

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

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

690 Contract shall be no more than the otherwise applicable Rate for Irrigation Water or M&I Water 

691 under subdivision (a) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

703 disposition of all Project and Contractor revenues, and a summary of all water delivery 
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704 information. The Contracting Officer and the Contractor shall enter into good faith negotiations 

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

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

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

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

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

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

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

712 this Contract is in effect without amending this Contract. 

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

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

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

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

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

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

719 subdivision (a) of this Article and the Irrigation Full Cost Water Rate or M&I Full Cost Water 

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

721 Delivered which exceeds 90 percent of the Contract Total shall equal the difference between 

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

723 Water Rate or M&I Full Cost Water Rate, whichever is applicable. For all Water Delivered 

724 pursuant to subdivision (a) of Article 3 of this Contract which is in excess of 80 percent of the 

725 Contract Total, this increment shall be deemed to be divided between Irrigation Water and M&I 
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726 Water in the same proportion as actual deliveries of each bear to the cumulative total Water 

727 Delivered. 

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

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

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

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

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

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

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

735 Contracting Officer prior to use of such water. 

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

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

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

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

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

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

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

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

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

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

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

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

748 impact of the proposed change. 
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749 (l) Except as provided in subsections 3405(a)(1)(B) and 3405(f) of the 

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

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

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

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

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

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

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

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

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

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

760 (n) With respect to the Rates for M&I Water the Contractor asserts that it is 

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

762 of the date of this Contract or deficit-related interest charges thereon. By entering into this 

763 Contract, the Contractor does not waive any legal rights or remedies that it may have with 

764 respect to such disputed issues. Notwithstanding the execution of this Contract and payments 

765 made hereunder, the Contractor may challenge in the appropriate administrative or judicial 

766 forums: (1) the existence, computation, or imposition of any deficit charges accruing during the 

767 term of the Existing Contract and any preceding interim renewal contracts, if applicable; (2) 

768 interest accruing on any such deficits; (3) the inclusion of any such deficit charges or interest in 

769 the Rates; (4) the application by the United States of payments made by the Contractor under its 

770 Existing Contract and any preceding interim renewal contracts, if applicable; and (5) the 

771 application of such payments in the Rates. The Contracting Officer agrees that the Contractor 
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772 shall be entitled to the benefit of any administrative or judicial ruling in favor of any Project 

773 M&I contractor on any of these issues, and credits for payments heretofore made; Provided, That 

774 the basis for such ruling is applicable to the Contractor. 

775 (o) The Contractor and the Contracting Officer concur that, as of the effective 

776 date of this Contract, the Contractor has no non-interest-bearing O&M deficits and shall have no 

777 further liability therefor; 

778 RATES AND METHOD OF PAYMENT FOR CONVEYANCE

779 AND OTHER SERVICES BY DWR

780 8. (a) To the extent Project Water is conveyed through State Facilities, payment 

781 for conveyance of water through the State Facilities shall be made by the Contractor directly to 

782 DWR. Exhibit “C” sets forth the charges and interest rates applicable at the time this long-term 

783 renewal contract is executed. DWR shall invoice the Contractor monthly for all conveyance 

784 charges owing for the previous month. Payment by the Contractor to DWR shall be due 30 days 

785 after the date of the invoice. Any payment not received within 30 days after the date of the 

786 invoice shall be considered delinquent. Delinquent charges shall be calculated in accordance 

787 with Exhibit "C" of this Contract; Provided, That no interest shall be charged to or be paid by the 

788 Contractor unless such delinquency continues for more than 30 days in total. 

789 (b) Omitted. 

790 (c) Conveyance charges for Contractor shall be determined by DWR on the 

791 same basis it uses to determine conveyance charges for use of SWP facilities by entities that are 

792 not SWP contractors. The method for determining this charge is described in DWR’s annual 

793 Bulletin 132. The charge for conveyance of water under this Contract shall be set forth in 

794 Exhibit “C” of this Contract and revised annually. 
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795 (1) In accordance with subdivision (c) of this Article, when DWR 

796 provides conveyance directly from the Delta or from the Federal share of storage at San Luis 

797 Reservoir, the unit conveyance charge shall equal at a minimum the sum of the following, as 

798 determined by DWR: (i) The equivalent unit transportation capital and Minimum OMP&R Costs 

799 for those reaches of the California Aqueduct utilized for the delivery; (ii) The portion of the 

800 Delta Water Rate for Reaches 1, 2A, 2B, and 3 of the California Aqueduct; (iii) The replacement 

801 component of the Transportation Variable OM&R Costs for the Harvey O. Banks Delta Pumping 

802 Plant and DWR's share of the Dos Amigos Pumping Plant; (iv) A charge to offset direct fish 

803 losses associated with pumping at the Banks Pumping Plant, pursuant to the December 30, 1986, 

804 agreement between the California Department of Fish and Game and DWR; and (v) The 

805 incremental costs, if any, caused by the conveyance and delivery of Project Water to the 

806 Contractor which, unless included in the increased charges to the Contractor, would result in 

807 increased charges to the SWP Contractors or increased costs to DWR. 

808 (2) When DWR provides conveyance from the State’s share of storage 

809 in San Luis Reservoir, the unit charge shall equal the sum of the following as determined by 

810 DWR: (i) The San Luis Facilities portion of the Delta Water Rate; (ii) The net unit energy cost 

811 to replace water in San Luis Reservoir; and (iii) The sum of all unit charges provided under 

812 subdivision (c)(1) of this Article. 

813 (d) Should DWR deliver Project Water to San Luis Reservoir on behalf of the 

814 Contractor and it is later determined by DWR that capacity to store such Project Water in DWR's 

815 share of San Luis Reservoir is no longer available because of need for such storage to meet SWP 

816 operations and obligations to SWP Contractors and the Contractor cannot take delivery of such 

817 Project Water, DWR shall relieve the Contractor of its obligations to pay DWR for all such 
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818 Project Water so transported, stored, and no longer available to the Contractor. DWR shall 

819 reimburse the Contractor for payments which have previously been made to DWR for any such 

820 conveyed and stored supply, less the administrative charge described in subdivision (f) of this 

821 Article. 

822 (e) If the Contractor is unable, fails or refuses to accept delivery of Project 

823 Water made available by DWR in accordance with this Contract, such inability, failure or refusal 

824 shall not relieve the Contractor of its obligation to pay DWR all associated costs. 

825 (f) The Contractor shall pay DWR a monthly administrative charge specified 

826 in Exhibit "C" of this Contract for each month in which DWR conveys Project Water to the 

827 Contractor and for each month in which DWR invoices the Contractor for delinquent charges. 

828 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

835 exchanges shall be approved absent all appropriate environmental documentation including but 

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

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

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

839 transferor and transferee. No sale, transfer or exchange of the right to Project Water under this 
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840 Contract may take place without the prior written approval of the Contracting Officer and of 

841 DWR, if State Facilities are used to convey such water. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

858 years, for M&I use, groundwater recharge, groundwater banking, similar groundwater activities, 

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

860 delivered to established cropland, wildlife refuges, groundwater basins or M&I use; (ii) occur 

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

862 through existing facilities with no new construction or modifications to facilities and be between 
Contract No. 14-06-200-8237A-LTR1 

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

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

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

866 under Federal law. 

867 APPLICATION OF PAYMENTS AND ADJUSTMENTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

884 (c) In the event that the Contractor contests the accuracy of any statement 

885 submitted to it by DWR pursuant to this Contract it shall give DWR notice thereof at least ten 
Contract No. 14-06-200-8237A-LTR1 

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886 days prior to the day upon which payment of the stated amount is due. To the extent that DWR 

887 finds that the Contractor's contentions regarding the statement are correct, it shall revise the 

888 statement accordingly, and the Contractor shall make payment of the revised amounts on or 

889 before the due date. To the extent that DWR does not find the Contractor's contentions to be 

890 correct, or where time is not available for review of such contentions for correctness prior to due 

891 date, the Contractor shall make payment of the stated amounts on or before the due date, but may 

892 make the contested part of such payment under protest and seek an adjustment as described in 

893 subdivision (d) of this Article. 

894 (d) If in any year, by reason of errors in computation or other causes, there is 

895 an overpayment or underpayment to DWR by the Contractor of its charges provided for herein, 

896 the amount of such overpayment or underpayment shall be credited or debited, as the case may 

897 be, to the Contractor's account for the next succeeding Year and DWR shall notify the Contractor 

898 thereof in writing. 

899 TEMPORARY REDUCTIONS-RETURN FLOWS

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

901 State Facilities and the requirements of Federal law; (ii) the authorized purposes and priorities of 

902 the State Facilities and State laws and policies governing the SWP; (iii) obligations of the United 

903 States and DWR under existing contracts, or renewals thereof, providing for water deliveries 

904 from the Project and State Facilities; and (iv) the terms and conditions of this Contract; the 

905 Contracting Officer and DWR shall make all reasonable efforts to optimize Project Water 

906 deliveries to the Contractor as provided in this Contract. 

907 (b) The Contracting Officer, DWR, or Operating Non-Federal Entity/Entities 

908 may temporarily discontinue or reduce the quantity of Water Delivered to the Contractor as 
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909 herein provided for the purposes of investigation, inspection, maintenance, repair, or replacement 

910 of any of the Project or State Facilities or any part thereof necessary for the delivery of Project 

911 Water to the Contractor, but so far as feasible the Contracting Officer, DWR, or Operating Non912 Federal Entity/Entities will give the Contractor due notice in advance of such temporary 

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

914 Provided, That the United States and DWR shall use its best efforts to avoid any discontinuance 

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

916 and if requested by the Contractor, the United States and DWR will, if possible, deliver the 

917 quantity of Project Water which would have been delivered hereunder in the absence of such 

918 discontinuance or reduction. 

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

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

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

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

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

924 claiming by, through, or under the Contractor. 

925 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

930 Contractor of said determination as soon as practicable. 
Contract No. 14-06-200-8237A-LTR1 

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

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

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

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

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

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

937 specified in subdivision (b) of this Article, the Contracting Officer shall apportion the available 

938 Project Water supply among the Contractors and others entitled, under existing contracts and 

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

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

941 contractual obligations of the United States. 

942 (d) DWR shall make all reasonable efforts consistent with sound fiscal 

943 policies, and proper operating procedures to maintain the necessary facilities and to deliver 

944 Project Water to the Contractor in accordance with the provisions of this Contract in such a 

945 manner and at such times as such Project Water is scheduled by the Contractor; Provided, That 

946 such Project Water has been furnished to DWR by the Contracting Officer; and, Provided, 

947 further, That in no event shall any liability accrue against DWR or any of its officers, agents or 

948 employees for damage, direct or indirect for failure to deliver Project Water to the Contractor on 

949 account of errors in operation, drought, or any other cause beyond the control of DWR. 

950 Inasmuch as DWR is providing only conveyance and storage services under this Contract, it 

951 bears no responsibility for the availability of Project Water for such conveyance. 

952 (e) If any of the parties to this Contract are precluded in whole or in part from 

953 delivering, conveying or receiving Project Water as a result of uncontrollable forces, all parties 
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954 shall be relieved from the obligation to the extent they are reasonably unable to complete the 

955 obligation due to the uncontrollable force. Uncontrollable force shall include, but is not limited 

956 to, earthquakes, fires, tornados, floods and other natural disasters. Each party shall be 

957 responsible for payment of any costs incurred on its behalf by the other party(ies) before the 

958 occurrence of the uncontrollable force. 

959 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

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

964 RULES AND REGULATIONS

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

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

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

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

969 law. 

970 WATER AND AIR POLLUTION CONTROL

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

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

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

974 authorities. 

975 QUALITY OF WATER

976 16. (a) Project and State Facilities used to deliver Project Water to the Contractor 

977 pursuant to this Contract shall be operated and maintained to enable the United States and DWR 

978 to deliver Project Water to the Contractor in accordance with the water quality standards 

979 specified in subsection 2(b) of the Act of August 26, 1937 (50 Stat. 850), as added by Section 

980 101 of the Act of October 27, 1986 (100 Stat. 3050) or other existing Federal laws. The 
Contract No. 14-06-200-8237A-LTR1 

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981 United States and DWR are under no obligation to construct or furnish water treatment facilities 

982 to maintain or to improve the quality of Water Delivered to the Contractor pursuant to this 

983 Contract. The United States and DWR do not warrant the quality of Water Delivered to the 

984 Contractor pursuant to this Contract. 

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

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

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

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

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

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

991 Service Area. 

992 WATER ACQUIRED BY THE CONTRACTOR

993 OTHER THAN FROM THE UNITED STATES

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

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

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

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

998 and non-project water were constructed without funds made available pursuant to Federal 

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

1000 Landholders of lands which receive Irrigation Water; (ii) the eligibility of land to receive 

1001 Irrigation Water must be established through the certification requirements as specified in the 

1002 Acreage Limitation Rules and Regulations (43 CFR Part 426); (iii) the water requirements of 

1003 Eligible Lands within the Contractor's Service Area can be established and the quantity of 

1004 Irrigation Water to be utilized is less than or equal to the quantity necessary to irrigate such 
Contract No. 14-06-200-8237A-LTR1 

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1005 Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation Water and non1006 Project water are/were constructed with funds made available pursuant to Federal Reclamation 

1007 law, the non-Project water will be subject to the acreage limitation provisions of Federal 

1008 Reclamation law, unless the Contractor pays to the United States the incremental fee described in 

1009 43 CFR 426.15. In determining the incremental fee, the Contracting Officer will calculate 

1010 annually the cost to the Federal Government, including interest of storing or delivering non1011 Project water, which for purposes of this Contract shall be determined as follows: The quotient 

1012 shall be the unpaid distribution system costs divided by the total irrigable acreage within the 

1013 Contractor’s Service Area. The incremental fee per acre is the mathematical result of such 

1014 quotient times the interest rate determined using Section 202 (3) of the Act of October 12, 1982 

1015 (96 Stat. 1263). Such incremental fee will be charged to each acre of excess or full cost land 

1016 within the Contractor’s Service Area that receives non-Project water through Federally financed 

1017 or constructed facilities. The incremental fee calculation methodology will continue during the 

1018 term of this Contract absent promulgation of a contrary Reclamation-wide rule, regulation, or 

1019 policy adopted after the Contractor has been afforded the opportunity to review and comment on 

1020 the proposed rule, regulation, or policy. If such rule, regulation, or policy is adopted it shall 

1021 supersede this provision. The Contractor and the Contracting Officer concur that, as of the 

1022 effective date of this Contract, the Contractor has a distribution system that was constructed 

1023 without the use of Federally financed funds. The use of this distribution system is not subject to 

1024 the provision of this subdivision of this Article. A separate written agreement with DWR must 

1025 be obtained by the Contractor prior to conveyance of such water in State Facilities. 

1026 (b) Omitted. 
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1027 OPINIONS AND DETERMINATIONS

1028 18. (a) Where the terms of this Contract provide for actions to be based upon the 

1029 opinion or determination of any party to this Contract, said terms shall not be construed as 

1030 permitting such action to be predicated upon arbitrary, capricious, or unreasonable opinions or 

1031 determinations. The parties, notwithstanding any other provisions of this Contract, expressly 

1032 reserve the right to seek relief from and appropriate adjustment for any such arbitrary, capricious, 

1033 or unreasonable opinion or determination. Each opinion or determination by any party shall be 

1034 provided in a timely manner. Nothing in subdivision (a) of Article 18 of this Contract is 

1035 intended to or shall affect or alter the standard of judicial review applicable under Federal law to 

1036 any opinion or determination implementing a specific provision of Federal law embodied in 

1037 statute or regulation. 

1038 (b) The Contracting Officer and DWR shall have the right to make 

1039 determinations necessary to administer this Contract that are consistent with the provisions of 

1040 this Contract, the laws of the United States and of the State of California, and the rules and 

1041 regulations promulgated by the Secretary of the Interior and DWR. Such determinations shall be 

1042 made in consultation with the Contractor to the extent reasonably practicable. 

1043 COORDINATION AND COOPERATION

1044 19. (a) In order to further their mutual goals and objectives, the Contracting 

1045 Officer and the Contractor shall communicate, coordinate, and cooperate with each other, and 

1046 with other affected Project Contractors, in order to improve the operation and management of the 

1047 Project. The communication, coordination, and cooperation regarding operations and 

1048 management shall include, but not be limited to, any action which will or may materially affect 

1049 the quantity or quality of Project Water supply, the allocation of Project Water supply, and 
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1050 Project financial matters including, but not limited to, budget issues. The communication, 

1051 coordination, and cooperation provided for hereunder shall extend to all provisions of this 

1052 Contract. Each party shall retain exclusive decision making authority for all actions, opinions, 

1053 and determinations to be made by the respective party. 

1054 (b) Within 120 days following the effective date of this Contract, the 

1055 Contractor, other affected Project Contractors, and the Contracting Officer shall arrange to meet 

1056 with interested Project Contractors to develop a mutually agreeable, written Project-wide 

1057 process, which may be amended as necessary separate and apart from this Contract. The goal of 

1058 this process shall be to provide, to the extent practicable, the means of mutual communication 

1059 and interaction regarding significant decisions concerning Project operation and management on 

1060 a real-time basis. 

1061 (c) In light of the factors referred to in subdivision (b) of Article 3 of this 

1062 Contract, it is the intent of the Secretary to improve water supply reliability. To carry out this 

1063 intent: 

1064 (1) The Contracting Officer will, at the request of the Contractor, 

1065 assist in the development of integrated resource management plans for the Contractor. Further, 

1066 the Contracting Officer will, as appropriate, seek authorizations for implementation of 

1067 partnerships to improve water supply, water quality, and reliability. 

1068 (2) The Secretary will, as appropriate, pursue program and project 

1069 implementation and authorization in coordination with Project Contractors to improve the water 

1070 supply, water quality, and reliability of the Project for all Project purposes. 

1071 (3) The Secretary will coordinate with Project Contractors and the 

1072 State of California to seek improved water resource management. 
Contract No. 14-06-200-8237A-LTR1 

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1073 (4) The Secretary will coordinate actions of agencies within the 

1074 Department of the Interior that may impact the availability of water for Project purposes. 

1075 (5) The Contracting Officer shall periodically, but not less than 

1076 annually, hold division level meetings to discuss Project operations, division level water 

1077 management activities, and other issues as appropriate. 

1078 (d) Without limiting the contractual obligations of the Contracting Officer 

1079 under the other Articles of this Contract, nothing in this Article shall be construed to limit or 

1080 constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 

1081 Contractor or other interested stakeholders or to make decisions in a timely fashion as needed to 

1082 protect health, safety, or the physical integrity of structures or facilities. 

1083 CHARGES FOR DELINQUENT PAYMENTS

1084 20. (a) The Contractor shall be subject to interest, administrative and penalty 

1085 charges on delinquent installments or payments. When a payment is not received by the due 

1086 date, the Contractor shall pay an interest charge for each day the payment is delinquent beyond 

1087 the due date. When a payment becomes sixty (60) days delinquent, the Contractor shall pay an 

1088 administrative charge to cover additional costs of billing and processing the delinquent payment. 

1089 When a payment is delinquent ninety (90) days or more, the Contractor shall pay an additional 

1090 penalty charge of six (6%) percent per year for each day the payment is delinquent beyond the 

1091 due date. Further, the Contractor shall pay any fees incurred for debt collection services 

1092 associated with a delinquent payment. 

1093 (b) The interest charge rate shall be the greater of the rate prescribed quarterly 

1094 in the Federal Register by the Department of the Treasury for application to overdue payments, 

1095 or the interest rate of one-half of one (0.5%) percent per month prescribed by Section 6 of the 

1096 Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate shall be 

1097 determined as of the due date and remain fixed for the duration of the delinquent period. 

1098 (c) When a partial payment on a delinquent account is received, the amount 

1099 received shall be applied, first to the penalty, second to the administrative charges, third to the 

1100 accrued interest, and finally to the overdue payment. 

1101 EQUAL OPPORTUNITY

1102 21. During the performance of this Contract, the Contractor agrees as follows: 
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1103 (a) The Contractor will not discriminate against any employee or applicant for 

1104 employment because of race, color, religion, sex, or national origin. The Contractor will take 

1105 affirmative action to ensure that applicants are employed, and that employees are treated during 

1106 employment, without regard to their race, color, religion, sex, or national origin. Such action 

1107 shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

1108 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

1109 compensation; and selection for training, including apprenticeship. The Contractor agrees to 

1110 post in conspicuous places, available to employees and applicants for employment, notices to be 

1111 provided by the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

1112 (b) The Contractor will, in all solicitations or advertisements for employees 

1113 placed by or on behalf of the Contractor, state that all qualified applicants will receive 

1114 consideration for employment without discrimination because of race, color, religion, sex, or 

1115 national origin. 

1116 (c) The Contractor will send to each labor union or representative of workers 

1117 with which it has a collective bargaining agreement or other contract or understanding, a notice, 

1118 to be provided by the Contracting Officer, advising the said labor union or workers' 

1119 representative of the Contractor's commitments under Section 202 of Executive Order 11246 of 

1120 September 24, 1965, and shall post copies of the notice in conspicuous places available to 

1121 employees and applicants for employment. 

1122 (d) The Contractor will comply with all provisions of Executive Order 

1123 No. 1246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders 

1124 of the Secretary of Labor. 

1125 (e) The Contractor will furnish all information and reports required by said 

1126 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

1127 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

1128 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with 

1129 such rules, regulations, and orders. 

1130 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

1131 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

1132 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

1133 ineligible for further Government contracts in accordance with procedures authorized in said 

1134 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

1135 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

1136 otherwise provided by law. 

1137 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

1138 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

1139 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

1140 provisions will be binding upon each subcontractor or vendor. The Contractor will take such 

1141 action with respect to any subcontract or purchase order as may be directed by the Secretary of 

1142 Labor as a means of enforcing such provisions, including sanctions for noncompliance: 
Contract No. 14-06-200-8237A-LTR1 

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1143 Provided, however, That in the event the Contractor becomes involved in, or is threatened with, 

1144 litigation with a subcontractor or vendor as a result of such direction, the Contractor may request 

1145 the United States to enter into such litigation to protect the interests of the United States. 

1146 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

1147 22. (a) The obligation of the Contractor to pay the United States and DWR as 

1148 provided in this Contract is a general obligation of the Contractor notwithstanding the manner in 

1149 which the obligation may be distributed among the Contractor's water users and notwithstanding 

1150 the default of individual water users in their obligations to the Contractor. 

1151 (b) The payment of charges becoming due hereunder is a condition precedent 

1152 to receiving benefits under this Contract. The United States and DWR shall not make water or 

1153 conveyance facilities available to the Contractor through Project or State Facilities during any 

1154 period in which the Contractor may be in arrears in the advance payment of water rates due the 

1155 United States. The Contractor shall not furnish water made available pursuant to this Contract 

1156 for lands or parties which are in arrears in the advance payment of water rates levied or 

1157 established by the Contractor. 

1158 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

1159 obligation to require advance payment for water rates which it levies. Subdivision (b) of this 

1160 Article applies to periods when the Contractor is in arrears on payment of charges to DWR.

1161 (d) If in any year the Contractor fails or is unable to raise sufficient funds by 

1162 other means, the governing body of the Contractor shall levy upon all property within the 

1163 Contractor's boundary not exempt from taxation, a special assessment sufficient to provide for all 

1164 payments due the United States and DWR under this Contract. 

1165 (e) Assessments levied by the governing body of the Contractor pursuant to 

1166 subdivision (b) of this Article shall be enforced and collected by all officers of the Contractor 

1167 charged with the duty of enforcing and collecting assessments levied by the Contractor. 
Contract No. 14-06-200-8237A-LTR1 

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1168 (f) All money collected by way of special assessments under this Article for 

1169 payments due DWR shall be kept in a separate fund by the treasurer or other officer of the 

1170 Contractor charged with the safekeeping and disbursement of funds of the Contractor, and, upon 

1171 the written demand of DWR, the treasurer or other officer shall pay over to DWR all money in 

1172 his possession or control then due DWR under this Contract, which money shall be applied by 

1173 DWR to the satisfaction of the amount due under this Contract. 

1174 (g) In the event of failure, neglect, or refusal of any officer of the Contractor 

1175 to levy any assessment necessary to provide payment by the Contractor under this Contract, to 

1176 enforce or to collect the assessment, or to pay over to the United States or DWR any money then 

1177 due collected on the assessment, either or both DWR and the United States may take such action 

1178 in a court of competent jurisdiction as they deem necessary to compel the performance in their 

1179 proper sequence of all such duties. Action taken pursuant hereto shall not deprive DWR or 

1180 United States or limit any remedy provided by this Contract or by law for the recovery of money 

1181 due or which may become due under this Contract. 

1182 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

1183 23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 

1184 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

1185 Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights 

1186 laws, as well as with their respective implementing regulations and guidelines imposed by the 

1187 U.S. Department of the Interior and/or Bureau of Reclamation. 

1188 (b) These statutes require that no person in the United States shall, on the 

1189 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be 

1190 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

1191 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

1192 Contractor agrees to immediately take any measures necessary to implement this obligation, 

1193 including permitting officials of the United States to inspect premises, programs, and documents. 

1194 (c) The Contractor makes this agreement in consideration of and for the 

1195 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or other 

1196 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of 
Contract No. 14-06-200-8237A-LTR1 

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1197 Reclamation, including installment payments after such date on account of arrangements for 

1198 Federal financial assistance which were approved before such date. The Contractor recognizes 

1199 and agrees that such Federal assistance will be extended in reliance on the representations and 

1200 agreements made in this Article, and that the United States reserves the right to seek judicial 

1201 enforcement thereof. 

1202 PRIVACY ACT COMPLIANCE

1203 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) 

1204 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et 

1205 seq.) in maintaining Landholder acreage certification and reporting records, required to be 

1206 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation 

1207 Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

1208 (b) With respect to the application and administration of the criminal penalty 

1209 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees 

1210 responsible for maintaining the certification and reporting records referenced in (a) above are 

1211 considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

1212 (c) The Contracting Officer or a designated representative shall provide the 

1213 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau 

1214 of Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--

1215 Interior, Reclamation-31) which govern the maintenance, safeguarding, and disclosure of 

1216 information contained in the Landholder's certification and reporting records. 

1217 (d) The Contracting Officer shall designate a full-time employee of the 

1218 Bureau of Reclamation to be the System Manager who shall be responsible for making decisions 

1219 on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The 

1220 Contractor is authorized to grant requests by individuals for access to their own records. 

1221 (e) The Contractor shall forward promptly to the System Manager each 

1222 proposed denial of access under 43 CFR 2.64; and each request for amendment of records filed 

1223 under 43 CFR 2.71; notify the requester accordingly of such referral; and provide the System 

1224 Manager with information and records necessary to prepare an appropriate response to the 

1225 requester. These requirements do not apply to individuals seeking access to their own 

1226 certification and reporting forms filed with the Contractor pursuant to 43 CFR 426.18, unless the 

1227 requester elects to cite the Privacy Act as a basis for the request. 

1228 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1229 25. In addition to all other payments to be made by the Contractor pursuant to this 

1230 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1231 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 
Contract No. 14-06-200-8237A-LTR1 

53

1232 of direct cost incurred by the United States for work requested by the Contractor associated with 

1233 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

1234 and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

1235 to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

1236 contract administration. 

1237 WATER CONSERVATION

1238 26. (a) Prior to the delivery of water provided from or conveyed through 

1239 Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor 

1240 shall be implementing an effective water conservation and efficiency program based on the 

1241 Contractor's water conservation plan that has been determined by the Contracting Officer to meet 

1242 the conservation and efficiency criteria for evaluating water conservation plans established under 

1243 Federal law. The water conservation and efficiency program shall contain definite water 

1244 conservation objectives, appropriate economically feasible water conservation measures, and 

1245 time schedules for meeting those objectives. Continued Project Water delivery pursuant to this 

1246 Contract shall be contingent upon the Contractor’s continued implementation of such water 

1247 conservation program. In the event the Contractor's water conservation plan or any revised water 

1248 conservation plan completed pursuant to subdivision (d) of Article 26 of this Contract have not 

1249 yet been determined by the Contracting Officer to meet such criteria, due to circumstances which 

1250 the Contracting Officer determines are beyond the control of the Contractor, water deliveries 

1251 shall be made under this Contract so long as the Contractor diligently works with the Contracting 

1252 Officer to obtain such determination at the earliest practicable date, and thereafter the Contractor 

1253 immediately begins implementing its water conservation and efficiency program in accordance 

1254 with the time schedules therein. 
Contract No. 14-06-200-8237A-LTR1 

54

1255 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1256 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall 

1257 implement the Best Management Practices identified by the time frames issued by the California 

1258 Urban Water Conservation Council for such M&I Water unless any such practice is determined 

1259 by the Contracting Officer to be inappropriate for the Contractor. 

1260 (c) The Contractor shall submit to the Contracting Officer a report on the 

1261 status of its implementation of the water conservation plan on the reporting dates specified in the 

1262 then existing conservation and efficiency criteria established under Federal law. 

1263 (d) At five -year intervals, the Contractor shall revise its water conservation plan to 

1264 reflect the then-current conservation and efficiency criteria for evaluating water conservation plans 

1265 established under Federal law and submit such revised water management plan to the Contracting 

1266 Officer for review and evaluation. The Contracting Officer will then determine if the water 

1267 conservation plan meets Reclamation’s then-current conservation and efficiency criteria for evaluating 

1268 water conservation plans established under Federal law. 

1269 (e) If the Contractor is engaged in direct groundwater recharge, such activity shall 

1270 be described in the Contractor’s water conservation plan. 

1271 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1272 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

1273 Contract shall not be applicable to or affect non-Project water or water rights now owned or hereafter 

1274 acquired by the Contractor or any user of such water within the Contractor's Service Area. Any such 

1275 water shall not be considered Project Water under this Contract. In addition, this Contract shall not be 

1276 construed as limiting or curtailing any rights which the Contractor or any water user within the 
Contract No. 14-06-200-8237A-LTR1 

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1277 Contractor's Service Area acquires or has available under any other contract pursuant to Federal 

1278 Reclamation law. 

1279 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

1280 28. (a) The O&M of a portion of the Project facilities which serve the 

1281 Contractor, and responsibility for funding a portion of the costs of such O&M, have been transferred to 

1282 two Operating Non-Federal Entities by separate agreements between the United States and the 

1283 Operating Non-Federal Entities. Those separate agreements shall not interfere with or affect the rights 

1284 or obligations of the Contractor or the United States hereunder. Specifically, portions of the Delta1285 Mendota Canal, the San Luis Canal and other related facilities are operated by the San Luis & Delta1286 Mendota Water Authority and the Friant-Kern Canal and related facilities are operated by the Friant 

1287 Water Authority. 

1288 (b) The Contractor shall pay directly to the applicable Operating Non-Federal 

1289 Entity/Entities, or to any successor/successors approved by the Contracting Officer under the terms and 

1290 conditions of the separate agreement/agreements between the United States and the Operating Non1291 Federal Entity/Entities described in subdivision (a) of this Article, all rates, charges, or assessments of 

1292 any kind, including any assessment for reserve funds, which the Operating Non-Federal Entity/Entities 

1293 or such successor/successors determines, sets, or establishes for the O&M of the portion of the Project 

1294 facilities operated and maintained by the Operating Non-Federal Entity or such successor. Such direct 

1295 payments to the Operating Non-Federal Entity or such successor shall not relieve the Contractor of its 

1296 obligation to pay directly to the United States the Contractor’s share of the Project Rates, Charges, and 

1297 Tiered Pricing Component(s) except to the extent the Operating Non-Federal Entity collects payments 

1298 on behalf of the United States in accordance with the separate agreement identified in subdivision (a) 

1299 of this Article. 
Contract No. 14-06-200-8237A-LTR1 

56

1300 (c) For so long as the O&M of any portion of the Project facilities serving the 

1301 Contractor is performed by the Operating Non-Federal Entity/Entities, or any successor/successors 

1302 thereto, the Contracting Officer shall adjust those components of the Rates for Water Delivered under 

1303 this Contract representing the cost associated with the activity being performed by the Operating Non1304 Federal Entities or their successors. 

1305 (d) In the event the O&M of the Project facilities operated and maintained by the 

1306 Operating Non-Federal Entity/Entities is re-assumed by the United States during the term of this 

1307 Contract, the Contracting Officer shall so notify the Contractor, in writing, and present to the 

1308 Contractor a revised Exhibit “B” which shall include the portion of the Rates to be paid by the 

1309 Contractor for Project Water under this Contract representing the O&M costs of the portion of such 

1310 Project facilities which have been re-assumed. The Contractor shall, thereafter, in the absence of 

1311 written notification from the Contracting Officer to the contrary, pay the Rates, Charges, and Tiered 

1312 Pricing Component specified in the revised Exhibit “B” directly to the United States in compliance 

1313 with Article 7 of this Contract. 

1314 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1315 29. The expenditure or advance of any money or the performance of any obligation of the 

1316 United States under this Contract shall be contingent upon appropriation or allotment of funds. 

1317 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

1318 under this Contract. No liability shall accrue to the United States in case funds are not appropriated or 

1319 allotted. 

1320 BOOKS, RECORDS, AND REPORTS

1321 30. (a) The Contractor shall establish and maintain accounts and other books and 

1322 records pertaining to administration of the terms and conditions of this Contract, including: the 

1323 Contractor's financial transactions, water supply data, and Project land and right-of-way agreements; 

1324 the water users' land-use (crop census), land ownership, land-leasing and water use data; and other 

1325 matters that the Contracting Officer may require. Reports thereon shall be furnished to the Contracting 

1326 Officer in such form and on such date or dates as the Contracting Officer may require. Subject to 

1327 applicable Federal laws and regulations, each party to this Contract shall have the right during office 
Contract No. 14-06-200-8237A-LTR1 

57

1328 hours to examine and make copies of the other party's books and records relating to matters covered by 

1329 this Contract. 

1330 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

1331 records, or other information shall be requested from the Contractor by the Contracting Officer unless 

1332 such books, records, or information are reasonably related to the administration or performance of this 

1333 Contract. Any such request shall allow the Contractor a reasonable period of time within which to 

1334 provide the requested books, records, or information. 

1335 (c) At such time as the Contractor provides information to the Contracting Officer 

1336 pursuant to subdivision (a) of this Article, a copy of such information shall be provided to the 

1337 Operating Non-Federal Entity/Entities. 

1338 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1339 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1340 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1341 therein shall be valid until approved in writing by the Contracting Officer. 

1342 (b) The assignment of any right or interest in this Contract by a party shall not 

1343 interfere with the rights or obligations of the other parties to this Contract absent the written 

1344 concurrence of said other parties. 

1345 (c) The Contracting Officer shall not unreasonably condition or withhold 

1346 approval of any proposed assignment. 

1347 (d) No assignment or transfer of any rights to use State Facilities authorized by this 

1348 Contract shall be valid without advance written approval by DWR. 

1349 SEVERABILITY

1350 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1351 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1352 association or other form of organization whose primary function is to represent parties to Project 
Contract No. 14-06-200-8237A-LTR1 

58

1353 contracts, brings an action in a court of competent jurisdiction challenging the legality or enforceability 

1354 of a provision included in this Contract and said person, entity, association, or organization obtains a 

1355 final court decision holding that such provision is legally invalid or unenforceable and the Contractor 

1356 has not intervened in that lawsuit in support of the plaintiff(s), the parties to this Contract shall use 

1357 their best efforts to (i) within 30 days of the date of such final court decision identify by mutual 

1358 agreement the provisions in this Contract which must be revised and (ii) within three months thereafter 

1359 promptly agree on the appropriate revision(s). The time periods specified above may be extended by 

1360 mutual agreement of the parties. Pending the completion of the actions designated above, to the extent 

1361 it can do so without violating any applicable provisions of law, the United States shall continue to 

1362 make the quantities of Project Water specified in this Contract available to the Contractor pursuant to 

1363 the provisions of this Contract which were not found to be legally invalid or unenforceable in the final 

1364 court decision. 

1365 RESOLUTION OF DISPUTES

1366 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

1367 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the dispute. 

1368 Prior to the Contractor commencing any legal action, or the Contracting Officer referring any matter to 

1369 Department of Justice, the party shall provide to the other party 30 days’ written notice of the intent to 

1370 take such action; Provided, That such notice shall not be required where a delay in commencing an 

1371 action would prejudice the interests of the party that intends to file suit. During the 30 -day notice 

1372 period, the Contractor and the Contracting Officer shall meet and confer in an attempt to resolve the 

1373 dispute. Except as specifically provided, nothing herein is intended to waive or abridge any right or 

1374 remedy that the Contractor or the United States may have. 
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59

1375 OFFICIALS NOT TO BENEFIT

1376 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1377 Contractor shall benefit from this Contract other than as a water user or landowner in the same manner 

1378 as other water users or landowners. 

1379 CHANGES IN CONTRACTOR’S SERVICE AREA

1380 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

1381 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

1382 except upon the Contracting Officer's written consent. 

1383 (b) Within 30 days of receipt of a request for such a change, the Contracting Officer 

1384 will notify the Contractor of any additional information required by the Contracting Officer for 

1385 processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1386 timely completion of the process. Such process will analyze whether the proposed change is likely to: 

1387 (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of the 

1388 Contractor to pay for Project Water furnished under this Contract or to pay for any Federally1389 constructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

1390 Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply with 

1391 NEPA and ESA. The Contractor will be responsible for all costs incurred by the Contracting Officer 

1392 in this process, and such costs will be paid in accordance with Article 25 of this Contract. Upon 

1393 approval by the Contracting Officer, the Contractor shall promptly give notice of any such change in 

1394 Contractor’s Service Area to DWR. 

1395 FEDERAL LAWS

1396 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1397 validity or application in connection with the performance of the terms and conditions of this Contract 

1398 of any Federal law or regulation; Provided, That the Contractor agrees to comply with the terms and 
Contract No. 14-06-200-8237A-LTR1 

60

1399 conditions of this Contract unless and until relief from application of such Federal law or regulation to 

1400 the implementing provision of the Contract is granted by a court of competent jurisdiction. 

1401 NOTICES

1402 37. Any notice, demand, or request authorized or required by this Contract shall be deemed 

1403 to have been given on behalf of the parties when mailed, postage prepaid; or delivered to the Area 

1404 Manager, South-Central California Area Office, 1243 “N” Street, Fresno, California 93721; to the 

1405 Chief, State Water Project Analysis Office, Department of Water Resources, P. O. Box 942836, 

1406 Sacramento, California 94236-0001; and to the Board of Directors of the Lower Tule River Irrigation 

1407 District, 357 East Olive Avenue, Tipton, California 93272. The designation of the addressee or the 

1408 address may be changed by notice given in the same manner as provided in this Article for other 

1409 notices. 

1410 CONFIRMATION OF CONTRACT

1411 38. The Contractor, after the execution of this Contract, shall promptly seek to secure a 

1412 decree of a court of competent jurisdiction of the State of California, confirming the execution of this 

1413 Contract. The Contractor shall furnish both the United States and DWR with a certified copy of the 

1414 final decree, the validation proceedings, and all pertinent supporting records of the court approving and 

1415 confirming this Contract, and decreeing and adjudging it to be lawful, valid, and binding on the 

1416 Contractor. 
Contract No. 14-06-200-8237A-LTR1 

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1417 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

1418 year first above written. 

1419 THE UNITED STATES OF AMERICA 

1420 By: __________________________________________ 

1421 Regional Director, Mid-Pacific Region 

1422 Bureau of Reclamation 

1423 Approved as to Legal Form and DEPARTMENT OF WATER RESOURCES 

1424 Sufficiency: OF THE STATE OF CALIFORNIA 

1425 By: ___________________________ By: __________________________________________ 

1426 Chief Counsel, Director, 

1427 Department of Water Resources Department of Water Resources 

1428 (SEAL) LOWER TULE RIVER IRRIGATION DISTRICT 

1429 By: __________________________________________ 

1430 President of the Board of Directors 

1431 Attest: 

1432 

1433 By: ________________________________ 

1434 Secretary of the Board of Directors 

1435 (H:\pub 440\LTRC\Final Drft LTRC’s – Fresno, Tracy\10-20-04 Lower Tule River Final Draft LTRC 

1436 with exhibits.doc)
Contract No. 14-06-200-8237A-LTR1 

EXHIBIT A

 [Map or Description of Service Area] 
Contract No. 14-06-200-8237A-LTR1 

 EXHIBIT B

LOWER TULE RIVER IRRIGATION DISTRICT

Water Rates and Charges

Note: Rates and Charges are 2004 rates. This exhibit will be updated prior to execution to the 

 contract to reflect the current Rates and Charges. 

2004 Rates Per Acre-Foot

Banks Joint Point Pumping 

 Irrigation Water M&I Water

O&M AND COST-OF-SERVICE RATES: 

Capital Rates: 

 Cross Valley Conveyance (if applicable) $5.37 ** 

 

O&M Rates: 

 Water Marketing $7.59 

 Storage $5.83 

 Direct Pumping (Project Use Energy) $3.25 

 Dos Amigos 4/ 

 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing $0.00 

 

TOTAL COST-OF-SERVICE RATES: $22.04 

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. $30.49 

 

Section 205(a)(3) Rate is applicable to a Limited 

Recipient that did not receive irrigation water on 

or before October 1, 1981. $33.11 

SURCHARGES UNDER P.L 102-575 

TO RESTORATION FUND* 

 

Restoration Payments [3407(d)(2)(A)] $7.82 

* The surcharges are payments in addition to the water rates and were determined pursuant to 

 Title XXXIV of Public Law 102-575. Restoration fund surcharges under P.L. 102-575 

 are on a fiscal year basis (10/1/01-9/30/02). 

** M&I Rates will be calculated when needed. 

4/ - Conveyance and Conveyance Pumping operation and maintenance costs were removed 

for ratesetting purposes and are to be direct billed.