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Contract No. 

Standard Irrigation District Form 

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SRSC Draft 10/01/02(w/ USBR’s 

and SRSC’s further revisions 

discussed during 10/7/02 and 

10/21/02 Negotiation Sessions) 

SRSC Draft 10/31/02 

(Unshaded provisions have been 

tentatively agreed to) 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

CONTRACT BETWEEN THE UNITED STATES AND 

___________________________________________________ 

DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES 

SETTLING WATER RIGHTS DISPUTES AND 

 PROVIDING FOR PROJECT WATER 

Table of Contents

Article No. Title Page No. 

Preamble 1 

Explanatory Recitals 2-3 

1 Definitions 3-6 

2 Term of Contract 7 

3 Water to be Furnished to Contractor 7-10 

4 Return Flow 10-11 

5 Constraints on the Availability of Water 11-12 

6 Integrated Water Management and Partnerships 12-13 

7 Use of Water Furnished to Contractor 13 

8 Rate and Method of Payment for Water 14-18 

9 Agreement on Water Quantities 19-21 

10 Measurement of Water 21-23 

11 Rules and Regulations 23 

12 General Obligation – Benefits Conditioned 

Upon Payment 23-24 
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13 Charges For Delinquent Payments 24 

14 Quality of Water 24-25 

15 Water and Air Pollution Control 25 

16 Equal Opportunity 25-26 

17 Compliance With Civil Rights Laws 

And Regulations 26-27 

Table of Contents – continued

Article No. Title Page No.

18 Mingling of Contractor’s Project and 

Non-Project Water 27-28 

19 Books, Records, and Reports 28 

20 Change Of Place Of Use Or Organization 28-29 

21 Consolidation Of Contracting Entities 29 

22 Notices 29 

23 Assignment Limited – Successors and 

Assigns Obligated 29-30 

24 Officials Not to Benefit 30 

25 Contingent Upon Appropriation or 

Allotment of Funds 30 

26 Confirmation of Contract 30 

27 Unavoidable Groundwater Percolation 30 

28 Privacy Act Compliance 31 

29 Water Conservation 31-33 

30 Opinions And Determinations 33 

31 Contractor to Pay Certain Miscellaneous Costs 34 

32 Waiver of Default 34 

 Signatures 35 

Exhibit A Schedule of Monthly Diversions of Water 

Exhibit B Map of Contractor’s Ownership 

Exhibit C Unit Duties 

Exhibit D Rates and Charges 
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2 Contract No. 

3 Standard Irrigation District Form 

4 SRSC Draft 05/31/02 

5 R.O. Draft 07/11-2002 

6 SRSC Draft 10/01/02 (w/ USBR’s 

7 and SRSC’s further revisions 

8 discussed during 10/7/02 and 

9 10/21/02 Negotiation Sessions) 

10 

11 SRSC Draft 10/31/02 

12 (Unshaded provisions have been 

13 tentatively agreed to) 

14 

15 UNITED STATES 

16 DEPARTMENT OF THE INTERIOR 

17 BUREAU OF RECLAMATION 

18 Central Valley Project, California 

19 

20 CONTRACT BETWEEN THE UNITED STATES AND 

21 _______________________________________________ 

22 DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES 

23 SETTLING WATER RIGHTS DISPUTES AND 

24 PROVIDING FOR PROJECT WATER 

25 

26 

27 THIS CONTRACT, hereinafter referred to as “Settlement Contract,” is 

28 entered into by THE UNITED STATES OF AMERICA, hereinafter referred to as the 

29 United States, made this _____ day of ____________________, 2002, pursuant to the 

30 applicable authority granted to it generally in the Act of June 17, 1902 (32 Stat. 388), and 

31 acts amendatory or supplementary thereto, including, but not limited to, the Acts of 

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

33 1187), as amended and supplemented, including but not limited to Sections 9 and 14 

34 thereto, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 

35 (96 Stat. 1262), October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV of the 

36 Act of October 30, 1992 (106 Stat. 4706), all collectively hereinafter referred to as 
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1 Federal Reclamation law, and _______________________, hereinafter referred to as the 

2 Contractor, a public agency of the State of California, duly organized, existing, and 

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

4 (may change depending on contracting entity)

5 WITNESSETH, that: 

6 EXPLANATORY RECITALS

[1st] 7 WHEREAS, the United States has constructed and is operating the Central 

8 Valley Project, California, for multiple purposes pursuant to its statutory authority; and 

[2nd] 9 WHEREAS, the Contractor has rights to divert, is diverting, and will 

10 continue to divert for reasonable beneficial use, water from the natural flow of the 

11 Sacramento River and tributaries thereto, that would have been flowing therein if the 

12 Central Valley Project were not in existence; and [Contractor Specific – “Other” Rights”] 

[3rd] 13 WHEREAS, the construction and operation of the integrated and 

14 coordinated Central Valley Project has changed and will further change the regimen of 

15 the Sacramento, American, San Joaquin, and Trinity Rivers and the Sacramento-San 

16 Joaquin Delta from unregulated flow to regulated flow; and 

[4th] 17 WHEREAS, the United States has rights to divert, is diverting, and will 

18 continue to divert waters from said Rivers and said Delta in connection with the operation 

19 of said Central Valley Project, and 

[5th] 20 WHEREAS, the Contractor and the United States had a dispute over the 

21 respective rights of the parties to divert and use water from the regulated flow of the 
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1 Sacramento River which threatened to result in litigation, and as a means to settle that 

2 dispute entered into Contract No. ______________, as amended, hereinafter referred to 

3 as the Existing Contract, which established terms for the delivery to the Contractor of 

4 Central Valley Project Water, and the quantities of Base Supply the United States and the 

5 Contractor agreed may be diverted by the Contractor from the Sacramento River pursuant 

6 to such contract; and 

[6th] 7 WHEREAS, the United States and the Contractor disagree with respect to 

8 the authority of the United States to change the quantities of Base Supply and/or Project 

9 Water specified as available for diversion in this Settlement Contract from the quantities 

10 specified in the Existing Contract, and other issues related thereto. That dispute was the 

11 subject of litigation in a lawsuit entitled Glenn-Colusa Irrigation District, et al. v. United 

12 States, et al. (Civ. No. S-01-1816 GEB/JFM (E.D. Cal.), but that litigation was dismissed, 

13 without prejudice, pursuant to a stipulation of dismissal filed by the parties thereto on 

14 August 29, 2002. Notwithstanding that dismissal, the Contractor and the United States 

15 enter into this Settlement Contract to renew the Existing Contract, pursuant to the terms 

16 of the Existing Contract, Federal Reclamation law, and the laws of the State of California

7th 17 WHEREAS, to assure the Contractor of the enjoyment and use of the 

18 regulated flow of the said Rivers and the Delta, and to provide for the economical 

19 operation of the Central Valley Project by, and the reimbursement to, the United States 

20 for expenditures made for said Project; 
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1 NOW, THEREFORE, in consideration of the performance of the herein 

2 contained provisions, conditions, and covenants, it is agreed as follows:

3 DEFINITIONS

4 1. When used herein, unless otherwise expressed or incompatible with the intent 

5 hereof, the term: 

6 (a) “Base Supply” shall mean the quantity of Surface Water established in 

7 Articles 3 and 5 which may be diverted by the Contractor from the Sacramento River 

8 each month during the period April through October of each Year without payment to the 

9 United States for such quantities diverted; 

10 (b) “Basin-Wide Water Management Plan” shall mean the mutually agreeable

11 Sacramento River Basinwide Water Management Plan dated _______developed by 

12 Glenn Colusa Irrigation District, Maxwell Irrigation District, Natomas Central Mutual 

13 Water Company, Pelger Mutual Water Company, Princeton-Codora Glenn Irrigation 

14 District, Provident Irrigation District, Reclamation District 108, Sutter Mutual Water 

15 Company, Anderson-Cottonwood Irrigation District, M&T, Inc., Meridian Farms Water 

16 Company, Reclamation District 1004 and the U.S. Bureau of Reclamation. 

17 (c) “Charges” shall mean the payments for Project Water that the Contractor 

18 is required to pay to the United States in addition to the “Rates” specified in this 

19 Contract. The Contracting Officer will, on an annual basis, determine the extent of these 

20 Charges. The type and amount of each Charge shall be specified in Exhibit “D”; 
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1 (d) “Contract Total” shall mean the sum of the Base Supply and Project 

2 Water available for diversion by the Contractor for the period April 1 through 

3 October 31; 

4 (e) “Critical Year” shall mean any Year in which either of the following 

5 eventualities exists: 

6 (1) The forecasted full natural inflow to Shasta Lake for the current Water 

7 Year, as such forecast is made by the United States on or before February 15 and 

8 reviewed as frequently thereafter as conditions and information warrant, is equal to or 

9 less than 3.2 million acre-feet; or 

10 (2) The total accumulated actual deficiencies below 4 million acre-feet in 

11 the immediately prior Water Year or series of successive prior Water Years each of 

12 which had inflows of less than 4 million acre-feet, together with the forecasted deficiency 

13 for the current Water Year, exceed 800,000 acre-feet. 

14 For the purpose of determining a Critical Year, the computation of inflow 

15 to Shasta Lake shall be performed in a manner that considers the extent of upstream 

16 development above Shasta Lake during the year in question, and shall be used as the full 

17 natural flow to Shasta Lake. In the event that major construction has occurred or occurs 

18 above Shasta Lake after September 1, 1963 and which has materially altered or alters the 

19 regimen of the stream systems contributing to Shasta Lake, the computed inflow to 

20 Shasta Lake used to define a Critical Year will, be adjusted to eliminate the effect of such 

21 material alterations. After consultation with the State of California, the National Weather 
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1 Service, and other recognized forecasting agencies, the Contracting Officer will select the 

2 forecast to be used and will make the details of it available to the Contractor. The same 

3 forecasts used by the United States for the operation of the Project shall be used to make 

4 the forecasts hereunder; 

5 (f) “CVPIA” shall mean the Central Valley Project Improvement Act, 

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

7 (g) “Eligible Lands” shall mean all lands to which Project Water may be 

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

9 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA;

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

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

12 Federal Reclamation law; 

13 (i) “Full Cost Rate” shall mean that water rate described in Sections 205(a)(3) 

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

15 (j) “Ineligible Lands” shall mean all lands to which Project Water may not be 

16 delivered in accordance with Section 204 of the RRA; 

17 (k) “Landholder” shall mean a party that directly or indirectly owns or leases 

18 nonexempt land, as provided in 43 CFR 426.2; 

19 (l) “Project” shall mean the Central Valley Project owned by the United 

20 States and managed by the Department of the Interior, Bureau of Reclamation; 
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1 (m) “Project Water” shall mean all Surface Water diverted or scheduled to be 

2 diverted each month during the period April through October of each Year by the 

3 Contractor from the Sacramento River which is in excess of the Base Supply. The United 

4 States recognizes the right of the Contractor to make arrangements for acquisition of 

5 water from projects of others than the United States for delivery through the Sacramento 

6 River and tributaries subject to written agreement between Contractor and the United 

7 States as to identification of such water which water when so identified shall not be 

8 deemed Project Water under this Settlement Contract; 

9 (n) “Rates” shall mean the payments for Project Water determined annually 

10 by the Contracting Officer in accordance with the then current applicable water 

11 ratesetting policies for the Project, as described in subdivision (a) of Article 8 of this 

12 Settlement Contract; 

13 (o) “Secretary” or “Contracting Officer” shall mean the Secretary of the 

14 Interior, a duly appointed successor, or an authorized representative acting pursuant to 

15 any authority of the Secretary and through any agency of the Department of the Interior; 

16 (p) “Surface Water” shall mean only those waters that are considered as 

17 surface water under California law. 

18 (q) 

19 “Water Year” shall mean the period commencing with October 1 of one year 

20 and extending through September 30 of the next; and 

21 (r) “Year” shall mean a calendar year. 

Deleted: “Term 91” shall mean that 

standard term included in water right 

permits issued by the California State 

Water Resources Control Board 

(SWRCB) established by Decision 1594 

and identified as Term 91, as may be 

modified or revised by the SWRCB;
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1 TERM OF SETTLEMENT CONTRACT

2 2. (a) This Settlement Contract shall become effective April 1, 2004, and shall 

3 remain in effect until and including March 31, 2044: Provided, that under terms and 

4 conditions mutually agreeable to the parties hereto, renewals may be made for successive 

5 periods not to exceed 40 years each. The terms and conditions of each renewal shall be 

6 agreed upon not later than one year prior to the expiration of the then existing Settlement 

7 Contract. 

8 (b) With respect to Project Water and the portions of this Settlement Contract 

9 pertaining thereto, upon written request by the Contractor of the Secretary made not later 

10 than one year prior to the expiration of this Settlement Contract, whenever, account being 

11 taken of the amount then credited to the costs of construction of water supply works, the 

12 remaining amount of construction costs of water supply work which is properly 

13 assignable for ultimate return by the Contractor as established by the Secretary of the 

14 Interior pursuant to (3) of Section 1 of Public Law 643 (70 Stat. 483), probably can be 

15 repaid to the United States within the term of a contract under subsection 9(d) of the 1939 

16 Reclamation Project Act (53 Stat. 1187), the relevant portions of this Settlement Contract 

17 may be converted to a contract under said subsection 9(d) upon terms and conditions 

18 mutually agreeable to the United States and the Contractor. The Secretary shall make a 

19 determination 10 years after the date of execution of this Contract, and every five years 

20 thereafter, of whether a conversion to a contract under said subsection 9(d) can be 

21 accomplished pursuant to Public Law 643. Notwithstanding any provision of this 
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1 Settlement Contract, the Contractor reserves and shall have all rights and benefits under 

2 Public Law 643. 

3 WATER TO BE FURNISHED TO CONTRACTOR

4 3. (a) Subject to the conditions, limitations, and provisions hereinafter expressed, 

5 the Contractor is hereby entitled and authorized to divert from the Sacramento River at 

6 the locations shown in Exhibit A, for beneficial use within the area delineated on 

7 Exhibit B, (both Exhibits are attached hereto and made a part hereof), the Contract Total 

8 designated in Exhibit A, or any revision thereof, in accordance with the monthly 

9 operating schedule required by Article 3(c) of this Settlement Contract. The quantity of 

10 any water diverted under this Settlement Contract from the Sacramento River, during the 

11 period April through October, for use on any lands delineated on Exhibit B, by the owner 

12 of such lands or otherwise shall constitute a part of the Contract Total as shown on 

13 Exhibit A and shall be subject to all the provisions of this Settlement Contract relating to 

14 such Contract Total as if such diversion were made by the Contractor. 

15 [NOTE: contractor-specific language dealing with individual water rights may 

16 be needed.] 

17 (b) The Contractor may have acquired rights to divert water from the 

18 Sacramento River during the period April through October, that were obtained after the 

19 date of execution of the Existing Contract, or the Contractor may acquire such rights in 

20 the future. All diversions made from the Sacramento River, pursuant to such rights, 

21 during the period April through October, shall not be considered a part of the quantity of 
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1 Base Supply and Project Water specified in Exhibit A; Provided, that the quantities 

2 diverted pursuant to the above rights shall be identified on the schedule submitted 

3 pursuant to Article 3(c) below, and shall not be substituted for any Base Supply or Project 

4 Water; Provided, further, that any such identified quantities of other acquired rights may 

5 be diverted by the Contractor before incurring any fee pursuant to Article 3(c)(1), below. 

6 (c) Before April 1 and before the first day of each month thereafter when a 

7 revision is needed, the Contractor shall submit a written schedule to the Contracting 

8 Officer indicating the Contract Total to be diverted by the Contractor during each month 

9 under this Settlement Contract. The United States shall furnish water to the Contractor in 

10 accordance with the monthly operating schedule or any revisions thereof. However, the 

11 United States recognizes the need of the Contractor to change from time to time its 

12 monthly diversions of water from the quantities shown in Exhibit A; the Contractor may 

13 make such changes, provided: 

14 

15 

16 (1) that for the quantity of Base Supply diverted in excess of the monthly 

17 quantity shown in Exhibit A, and as may be reduced in accordance with Article 5(a), 

18 during June, July, or August of any Water Year, the Contractor shall be charged a 

19 rescheduling fee equal to 50% of the sum of the storage operations and maintenance rate 

20 and the storage capital rate components of the Project ratesetting policy.

21 

Deleted: (1) that for the quantity of 

Base Supply diverted in October in 

excess of the monthly quantity shown on 

Exhibit A for October, the Contractor 

shall be charged a rescheduling fee equal 

to 10% of the sum of the storage 

operations and maintenance rate and the 

storage capital rate components of the 

Project ratesetting policy.

Deleted: (1) that for the quantity of 

Base Supply diverted in excess of the 

monthly quantity shown in Exhibit A 

during any month in which Term 91 is in 

effect, the Contractor shall be charged a 

fee equal to the sum of the storage 

operation and maintenance rate and the 

storage capital rate components of the 

Project ratesetting policy. In those 

months in which Term 91 is in effect for 

less than the entire month, the fee shall be 

computed on a pro rata basis.

Deleted: (1) that for the quantity of 

Base Supply diverted in excess of the 

monthly quantity shown in Exhibit A, and 

as may be reduced in accordance with 

Article 5(a), during June, July, or August 

of any Critical Year, the Contractor shall 

be charged a rescheduling fee equal to 

50% of the sum of the storage operations 

and maintenance rate and the storage 

capital rate components of the Project 

ratesetting policy, as adjusted for ability 

to pay.¶

Deleted: (2) such changes that the 

Contractor is aware of in advance shall be 

subject to the prior written approval of 

the Contracting Officer.
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1 (2) Provided, that in no event shall the total quantity scheduled for diversion 

2 by the Contractor from the Sacramento River: 

3 (i) During the period April through October exceed the aggregate of the 

4 Contract Total for that period shown in Exhibit A or any revision thereof; 

5 (ii) During the period July through September exceed the aggregate of the 

6 Contract Total for that period shown in Exhibit A or any revision thereof. 

7 (d) In the event conditions warrant, the Contracting Officer reserves the right 

8 to require the Contractor to submit, at least 72 hours prior to the beginning of each 

9 weekly period, its estimate of daily diversion requirements for each such period from the 

10 Sacramento River: Provided, however, that changes during any such period may be 

11 made upon the giving of 72 hours’ notice thereof to the Contracting Officer. 

12 (e) No sale, transfer, exchange, or other disposal of any of the Contract Total 

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

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

15 consent of the Contracting Officer. Such consent will not be unreasonably withheld and 

16 a decision will be rendered in a timely manner. For short-term actions that will occur 

17 within one year or less, the decision will be rendered within 30 days after receipt of a 

18 complete written proposal. For long-term actions that will occur in a period longer than 

19 one year, the decision will be rendered within 90 days after receipt of a complete written 

20 proposal. For a proposal to be deemed complete by the Contracting Officer, it must 

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

Deleted: (2) any changes to the written 

schedule for any upcoming months of the 

Year shall be subject to the prior written 

approval of the Contracting Officer. ¶

Deleted: 3
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1 sufficient to enable the Contracting Officer to comply with the National Environmental 

2 Policy Act, the Endangered Species Act, and applicable rules or regulations then in 

3 effect; Provided that, such consent does not authorize the use of Federal facilities to 

4 facilitate or effectuate the sale, transfer, exchange or other disposal of Base Supply. Such 

5 use of Federal facilities will be the subject of a separate agreement to be entered into 

6 between the Contractor and Reclamation.

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

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

9 Contracting Officer acknowledges that the Contractor is within a county, watershed or 

10 other area of origin, as those terms are utilized under California law, of water that 

11 constitutes the natural flow of the Sacramento River and its tributaries above the 

12 confluence of the American and Sacramento Rivers. 

13 (g) Nothing herein contained shall prevent the Contractor from diverting 

14 water during the months of November through March for beneficial use on the land 

15 shown on Exhibit B or elsewhere to the extent authorized under the laws of the State of 

16 California. 

17 (h) The United States assumes no responsibility for and neither it nor its 

18 officers, agents, or employees shall have any liability for or on account of: 

19 (1) The quality of water to be diverted by the Contractor; 

Deleted: f

Deleted: g
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1 (2) The control, carriage, handling, use, disposal, or distribution of water 

2 diverted by the Contractor outside the facilities constructed and then being operated and 

3 maintained by or on behalf of the United States; 

4 (3) Claims of damage of any nature whatsoever, including but not limited 

5 to, property loss or damage, personal injury, or death arising out of or connected with the 

6 control, carriage, handling, use, disposal, or distribution of said water outside of the 

7 hereinabove referred to facilities; and 

8 (4) Any damage whether direct or indirect arising out of or in any manner 

9 caused by a shortage of water whether such shortage be on account of errors in operation, 

10 drought, or unavoidable causes. 

11 RETURN FLOW

12 4. Nothing herein shall be construed as an abandonment or a relinquishment by 

13 the United States of any right it may have to the use of waste, seepage, and return flow 

14 water derived from water diverted by the Contractor hereunder and which escapes or is 

15 discharged beyond the boundaries of the lands shown on Exhibit B; Provided, that this 

16 shall not be construed as claiming for the United States any right to such water which is 

17 recovered by the Contractor pursuant to California law from within the boundaries of the 

18 lands shown on Exhibit B, and which is being used pursuant to this Settlement Contract 

19 for surface irrigation or underground storage for the benefit of the lands shown on 

20 Exhibit B by the Contractor. (Colusa Basin Drain language may be required)
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1 CONSTRAINTS ON THE AVAILABILITY OF WATER

2 5. (a) In a Critical Year, the Contractor’s Base Supply and Project Water agreed 

3 to be diverted during the period April through October of the Year in which the principal 

4 portion of the Critical Year occurs and, each monthly quantity of said period shall be 

5 reduced by twenty-five percent. 

6 (b) The amount of any overpayment by the Contractor shall, at its option, be 

7 refunded or credited upon amounts to become due to the United States from the 

8 Contractor under the provisions hereof in the ensuing Year. To the extent of such 

9 deficiency such adjustment of overpayment shall constitute the sole remedy of the 

10 Contractor. 

11 INTEGRATED WATER MANAGEMENT AND PARTNERSHIPS

12 6. The Contractor and United States desire to work together to maximize the 

13 reasonable beneficial use of water for their mutual benefit. As a consequence, the United 

14 States and the Contractor will work in partnership and with others within the Sacramento 

15 Valley, including other Contractors, to facilitate the better integration within the 

16 Sacramento Valley of all water supplies including, but not limited to, the better 

17 management and integration of surface water and groundwater, the development and 

18 better utilization of surface water storage, the effective utilization of waste, seepage and 

19 return flow water, and other operational and management options that may be identified 

20 in the future. [Language cross-referencing other related agreement will be added as 

21 appropriate to the individual Settlement Contracts.]
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1 USE OF WATER FURNISHED TO CONTRACTOR

2 7. (a) Project Water furnished to the Contractor pursuant to this Settlement 

3 Contract shall not be delivered or furnished by the Contractor for any purposes other than 

4 agricultural purposes without the written consent of the Contracting Officer. For 

5 purposes of this Settlement Contract, “agricultural purposes” includes, but is not 

6 restricted to, the watering of livestock, incidental domestic use including related 

7 landscape irrigation, or underground water replenishment. 

8 (b) The Contractor shall comply with requirements applicable to the 

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

10 execution of this Settlement Contract undertaken pursuant to Section 7 of the Endangered 

11 Species Act of 1973, as amended, that are within the Contractor’s legal authority to 

12 implement. The Contractor shall comply with the limitations or requirements imposed by 

13 environmental documentation applicable to the Contractor and within its legal authority 

14 to implement. The Existing Contract, which evidences in excess of 40 years of 

15 diversions, for agricultural uses, of the quantities of water provided for in Article 3, and 

16 the underlying water rights of the Contractor will be considered in developing an 

17 appropriate base-line for the Biological Assessment prepared pursuant to the Endangered 

18 Species Act, and in any other needed environmental review. Nothing herein shall be 

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

20 of competent jurisdiction with respect to any biological opinion or other environmental 

21 documentation referred to in this Article. 
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1 RATE AND METHOD OF PAYMENT FOR WATER

2 8. (a) The Contractor shall make payments to the United States as provided in 

3 this Article for all Project Water shown in Exhibit A as follows: 

4 (1) seventy-five percent of the amount shown as Project Water shall be 

5 paid for by the Contractor in each Year; and in addition 

6 (2) the Contractor shall pay for Project Water actually diverted in excess 

7 of seventy-five percent of the amount shown as Project Water. 

8 Such payments shall be at Rates and Charges established in accordance with: 

9 (i) the Secretary’s then-current ratesetting policies for the Project; and (ii) applicable 

10 Reclamation law and associated rules and regulations, or policies: Provided, that if the 

11 Contractor desires to use Project Water for other than agricultural use the Rates and 

12 Charges set forth above will be adjusted by the Contracting Officer to the applicable 

13 Rates and Charges for such use. The Rates and Charges applicable to the Contractor 

14 upon execution of this Settlement Contract are set forth in Exhibit “D”, as may be revised 

15 annually. The Secretary’s ratesetting policies for the Project shall be amended, modified, 

16 or superseded only through a public notice and comment procedure. The Contracting 

17 Officer shall adjust the amount of Project Water for which payment is required to the 

18 extent of any reduction in diversions of Project Water made in accordance with the water 

19 conservation provisions of Article 29(a).

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

21 Charges as follows: 

Deleted: 
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1 (1) Prior to July 1 of each Year, the Contracting Officer shall provide the 

2 Contractor an estimate of the Charges for Project Water that will be applied to the period 

3 October 1, of the current Year, through September 30, of the following Year, and the 

4 basis for such estimate. The Contractor shall be allowed not less than two months to 

5 review and comment on such estimates. On or before September 15 of each Year, the 

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

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

8 Year, and such notification shall revise Exhibit “D.” 

9 (2) Prior to October 1 of each Year, the Contracting Officer shall make 

10 available to the Contractor an estimate of the Rates for Project Water for the following 

11 Year and the computations and cost allocations upon which those Rates are based. The 

12 Contractor shall be allowed not less than two months to review and comment on such 

13 computations and cost allocations. By December 31 of each Year, the Contracting 

14 Officer shall provide the Contractor with the final Rates to be in effect for the upcoming 

15 Year, and such notification shall revise Exhibit “D”. 

16 (c) The Contractor shall pay the United States for Project Water in the 

17 following manner: 

18 (1) With respect to Rates, prior to May 1 of each Year, the Contractor 

19 shall pay the United States one-half the total amount payable pursuant to subdivision (a) 

20 of this Article and the remainder shall be paid prior to July 1 or such later date or dates as 

21 may be specified by the United States in a written notice to the Contractor: Provided, 
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1 however, that if at any time during the Year the amount of Project Water diverted by the 

2 Contractor shall equal the amount for which payment has been made, the Contractor shall 

3 pay for the remaining amount of such water as shown in Exhibit A in advance of any 

4 further diversion of Project Water. 

5 (2) With respect to Charges, the Contractor shall also make a payment to 

6 the United States, in addition to the Rate(s) in subdivision (c)(1) of this Article, at the 

7 Charges then in effect, before the end of the month following the month of delivery or 

8 transfer. The payments shall be consistent with the quantities of Project Water delivered 

9 or transferred. Adjustment for overpayment or underpayment of Charges shall be made 

10 through the adjustment of payments due to the United States for Charges for the next 

11 month. Any amount to be paid for past due payment of Charges shall be computed 

12 pursuant to Article 13 of this Settlement Contract. 

13 (d) Payments to be made by the Contractor to the United States under this 

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

15 (1) All revenues received by the United States from the Contractor 

16 relating to the delivery of Project Water or the delivery of non-Project water through 

17 Project facilities shall be allocated and applied in accordance with Federal Reclamation 

18 law and the associated rules or regulations, and the then current Project ratesetting 

19 policies for Irrigation Water. 

20 (e) The Contracting Officer shall keep its accounts pertaining to the 

21 administration of the financial terms and conditions of its long-term water service and 
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1 Settlement Contracts, in accordance with applicable Federal standards, so as to reflect the 

2 application of Project costs and revenues. The Contracting Officer shall, each Year upon 

3 request of the Contractor, provide to the Contractor a detailed accounting of all Project 

4 and Contractor expense allocations, the disposition of all Project and Contractor 

5 revenues, and a summary of all water delivery information. The Contracting Officer and 

6 the Contractor shall enter into good faith negotiations to resolve any discrepancies or 

7 disputes relating to accountings, reports, or information. 

8 (f) The parties acknowledge and agree that the efficient administration of this 

9 Settlement Contract is their mutual goal. Recognizing that experience has demonstrated 

10 that mechanisms, policies, and procedures used for establishing Rates and Charges and/or 

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

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

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

14 while this Settlement Contract is in effect without amendment of this Settlement 

15 Contract. 

16 (g) For the term of this Settlement Contract, Rates under the respective 

17 ratesetting policies for the Project will be established to recover only reimbursable 

18 operation and maintenance (including any deficits) and capital costs of the Project, as 

19 those terms are used in the then-current Project ratesetting policies, and interest, where 

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

21 the relevant Project ratesetting policy. Proposed changes of significance in practices 
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1 which implement the ratesetting policies for the Project will not be implemented until the 

2 Contracting Officer has provided the Contractor an opportunity to discuss the nature, 

3 need, and impact of the proposed change. 

4 (h) Except as provided in subsection 3405(a)(1)(B) of the CVPIA, the Rates 

5 for Project Water transferred, exchanged, or otherwise disposed of, by the Contractor 

6 shall be the Contractor’s Rates adjusted upward or downward to reflect the changed costs 

7 of delivery (if any) of the transferred, exchanged, or otherwise disposed of Project Water 

8 to the transferee’s point of delivery in accordance with the then-current ratesetting 

9 policies for the Project. Except as provided in subsection 3407(d)(2)(A) of the CVPIA, 

10 the Charges for Project Water transferred, exchanged, or otherwise disposed of, by the 

11 Contractor shall be the Contractor’s Charges specified in Exhibit D. If the Contractor is 

12 receiving lower Rates and Charges because of inability to pay and is transferring, 

13 exchanging, or otherwise disposing of Project Water to another entity whose Rates and 

14 Charges are not adjusted due to inability to pay, the Rates and Charges for transferred, 

15 exchanged, or otherwise disposed of Project Water shall be the Contractor’s Rates and 

16 Charges unadjusted for ability to pay. 

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

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

19 (j) Each payment to be made pursuant to subdivisions (a) and (b) of this 

20 Article shall be made at the office of the Bureau of Reclamation, Mid-Pacific Region, 

21 File No. 11546, P.O. Box 6000, San Francisco, California, 94160-1546, or at such other 
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1 place as the United States may designate in a written notice to the said Contractor. 

2 Payments shall be made by cash transaction, wire, or any other mechanism as may be 

3 agreed to in writing by the Contractor and the Contracting Officer. In event there should 

4 be a default in the payment of the amount due, the delinquent payment provisions of 

5 Article 13 shall apply. The Contractor shall not be relieved of the whole or any part of its 

6 said obligation by, on account of, or notwithstanding, as the case may be: 

7 (1) Its failure, refusal, or neglect to divert seventy-five percent of the 

8 quantity of Project Water shown on Exhibit A; 

9 (2) The default in payment to it by any water user of assessments, tolls, or 

10 other charges levied by or owing to said Contractor; 

11 (3) Any judicial determination that any assessment, toll, or other charge 

12 referred to in subsection 8(c)(2) of this Settlement Contract is irregular, void, or 

13 ineffectual; or 

14 (4) Any injunctive process enjoining or restraining the Contractor from 

15 making or collecting any such assessment, toll, or other charge referred to in 

16 subsection 8(c)(2) of this Settlement Contract.

17 AGREEMENT ON WATER QUANTITIES

18 9. (a) During the term of this Settlement Contract and any renewals thereof: 

19 (1) It shall constitute full agreement as between the United States and the 

20 Contractor as to the quantities of water and the allocation thereof between Base Supply 

21 and Project Water which may be diverted by the Contractor from the Sacramento River 
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1 for beneficial use on the land shown on Exhibit B which said diversion, use, and 

2 allocation shall not be disturbed so long as the Contractor shall fulfill all of its obligations 

3 hereunder; 

4 (2) Neither party shall claim any right against the other in conflict with 

5 the provisions of Article 9(a)(1) hereof. 

6 (b) Nothing herein contained is intended to or does limit rights of the 

7 Contractor against others than the United States or of the United States against any 

8 person other than the Contractor: Provided, however, that in the event the Contractor, the 

9 United States, or any other person shall become a party to a general adjudication of rights 

10 to the use of water of the Sacramento River system, this Settlement Contract shall not 

11 jeopardize the rights or position of either party hereto or of any other person and the 

12 rights of all such persons in respect to the use of such water shall be determined in such 

13 proceedings the same as if this Settlement Contract had not been entered into, and if final 

14 judgment in any such general adjudication shall determine that the rights of the parties 

15 hereto are different from the rights as assumed herein, the parties shall negotiate an 

16 amendment to give effect to such judgment. In the event the parties are unable to agree 

17 on an appropriate amendment they shall, within 60 days of determining that there is an 

18 impasse, employ the services of a neutral mediator, experienced in resolving water rights 

19 disputes, to assist in resolving the impasse. The cost of the mediation will be shared 

20 equally. A failure to reach agreement on an amendment within 60 days of the end of 

21 mediation will cause the immediate termination of this Settlement Contract. 

Deleted: Provided, further, That if, 

during the term of this Contract, the 

Contractor’s or the United States’ water 

rights are adjusted or affected, or the 

responsibility to meet flow, water quality 

and/or environmental requirements under 

those water rights is modified (e.g., 

changes to the Delta Water Quality 

Control Plan and associated water right 

actions), by or through any final 

administrative or judicial proceeding, the 

Contractor and the United States shall 

negotiate appropriate adjustments to this 

contract. In the event the parties are 

unable to agree on an appropriate 

amendment they shall, within 60 days of 

determining that there is an impasse, 

employ the services of a neutral mediator 

to assist in resolving the impasse. The 

cost of the mediation will be shared 

equally. A failure to reach agreement on 

an amendment within 60 days of the end 

of mediation will cause the immediate 

termination of this Settlement Contract.
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1 Provided, further, that the Parties recognize the significance of meeting water 

2 quality obligations within the Bay-Delta and, as a consequence, if the California State 

3 Water Resources Control Board or a court of competent jurisdiction issues a final 

4 decision or order modifying the terms and conditions of the water rights of either Party 

5 to this Settlement Contract that would materially affect the ability of that Party to meet its 

6 water quality obligations within the Bay-Delta, if any, the Contractor and the United 

7 States shall promptly meet to determine whether or not to modify any of the terms of this 

8 Settlement Contract to comply with such final decision. In this regard, the Parties agree 

9 to utilize their best efforts to reach agreement on this important matter. If within 60 days 

10 of the date of the issuance of such final decision the parties are not able to reach 

11 agreement regarding either the need to modify this Settlement Contract or the manner in 

12 which this Settlement Contract is to be modified the parties shall promptly retain a 

13 neutral mediator, experienced in resolving water right disputes, to assist the parties in 

14 resolving their dispute. The cost of the mediator shall be shared equally. In the event that 

15 either of the parties to this Settlement Contract determines that the parties will not be 

16 able to develop mutually-agreeable modification(s) to this Settlement Contract even with 

17 the assistance of a mediator, either of the parties to this Settlement Contract may attempt 

18 to resolve the impasse by seeking appropriate judicial relief through the filing of a 

19 general adjudication of the rights to the use of water in the Sacramento River system. If 

20 neither party elects to initiate such adjudication, then the quantities of water and the 

21 allocation thereof between Base Supply and Project Water which may be diverted by the 

Deleted: Provided, further, that if the 

California State Water Resources Control 

Board or a court of competent jurisdiction 

issues a decision modifying the terms and 

conditions of the water rights of either 

party to this Settlement Contract, the 

Contractor and the United States shall 

promptly meet to determine whether or 

not to modify any of the terms of this 

Settlement Contract to comply with such 

final decision. If within 60 days of the 

date of the issuance of such final decision 

the parties are not able to reach 

agreement regarding either the need to 

modify this Settlement Contract or the 

manner in which this Settlement Contract 

is to be modified, the parties shall 

promptly retain a neutral mediator, 

experienced in resolving water rights 

disputes, to assist the parties in resolving 

their dispute. The cost of the mediator 

shall be shared equally. In the event that 

either of the parties to this Settlement 

Contract determines that the parties will 

not be able to develop mutually-agreeable 

modification(s) to this Settlement 

Contract even with the assistance of a 

mediator, either of the parties to this 

Settlement Contract may attempt to 

resolve the impasse by seeking 

appropriate judicial relief including, but 

not limited to filing a general 

adjudication of the rights to the use of 

water in the Sacramento River system, or 

may provide notice to the other party of 

that party’s intent to terminate this 

Settlement Contract effective the 

following October 31st, if said notice is 

given during the period April 1 through 

August 31, or 60 days from the date the 

notice is given between September 1 and 

March 31; Provided, further That the 

immediately preceding proviso shall not 

apply if a final decision of the California 

State Water Resources Control Board or a 

court of competent jurisdiction requires 

the United States to continue to 

implement the State Water Resources 

Control Board’s Revised Water Right 

Decision 1641, dated March 15, 2000 or 

its associated 1995 Water Quality Control 

Plan, as they are currently written. ¶
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1 Contractor from the Sacramento River and its tributaries under this Settlement Contract 

2 shall not change; Provided, further, that the preceding proviso shall not apply to any 

3 obligations imposed with respect to the implementation of the State Water Resources 

4 Control Board’s Revised Water Right Decision 1641 dated March 15, 2000, or its 

5 associated 1995 Water Quality Control Plan.

6 (c) In the event this Settlement Contract terminates, the rights of the parties 

7 to thereafter divert and use water shall exist as if this Settlement Contract had not been 

8 entered into; and the fact that as a compromise settlement of a controversy as to the 

9 respective rights of the parties to divert and use water and the yield of such rights during 

10 the term hereof, this Settlement Contract places a limit on the Contract Total to be 

11 diverted annually by the Contractor during the Settlement Contract term and segregates it 

12 into Base Supply and Project Water shall not jeopardize the rights or position of either 

13 party with respect to its water rights or the yield thereof at all times after the Settlement 

14 Contract terminates. It is further agreed that the Contractor at all times will first use 

15 water to the use of which it is entitled by virtue of its own water rights, and neither the 

16 provisions of this Settlement Contract, action taken thereunder, nor payments made 

17 thereunder to the United States by the Contractor shall be construed as an admission that 

18 any part of the water used by the Contractor during the term of this Settlement Contract 

19 was in fact water to which it would not have been entitled under water rights owned by it 

20 nor shall receipt of payments thereunder by the United States from the Contractor be 

21 construed as an admission that any part of the water used by the Contractor during the 

Formatted

Formatted

Deleted: [SLS to Insert New Provisos]¶

Inserted: [SLS to Insert New 

Provisos]¶
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1 term of this Settlement Contract was in fact water to which it would have been entitled 

2 under water rights owned by it. 

3 MEASUREMENT OF WATER

4 10. (a) All water diverted by the Contractor from the Sacramento River will be 

5 diverted at the existing point or points of diversion shown on Exhibit A or at such other 

6 points as may be mutually agreed upon in writing by the Contracting Officer and the 

7 Contractor. 

8 (b) All water diverted from the Sacramento River pursuant to this Settlement 

9 Contract will be measured or caused to be measured by the United States at each point of 

10 diversion with existing equipment or equipment to be installed, operated, and maintained 

11 by the United States, and/or others, under contract with and at the option of the United 

12 States. The equipment and methods used to make such measurement shall be in 

13 accordance with sound engineering practices. Upon request of the Contractor, the 

14 accuracy of such measurements will be investigated by the Contracting Officer and any 

15 errors appearing therein will be corrected. 

16 (c) The right of ingress to and egress from all points of diversion is hereby 

17 granted to all authorized employees of the United States. The Contractor also hereby 

18 grants to the United States the right to install, operate, maintain and replace such 

19 equipment on diversion or carriage facilities at each point of diversion as the Contracting 

20 Officer deems necessary. 
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1 (d) The Contractor shall not modify, alter, remove, or replace diversion 

2 facilities or do any other act which would alter the effectiveness or accuracy of the 

3 measuring equipment installed by the United States or its representatives unless and until 

4 the Contracting Officer has been notified with due diligence and has been given an 

5 opportunity to modify such measuring equipment in such manner as may be necessary or 

6 appropriate. In the event of an emergency the Contractor shall notify the United States 

7 within a reasonable time thereafter as to the existence of the emergency and the nature 

8 and extent of such modification, alteration, removal, or replacement of diversion 

9 facilities. 

10 (e) The Contractor shall pay the United States for the costs to repair, relocate, 

11 or replace measurement equipment when the Contractor modifies, alters, removes, or 

12 replaces diversion or carriage facilities. 

13 (f) Contractor and Contracting Officer shall develop a mutually agreeable 

14 surface water delivery water measurement program which shall be implemented by 

15 Contractor, and such measurement program shall be consistent with the conservation and 

16 efficiency criteria for evaluating water conservation plans as provided in Article 29(a). 

17 (g) All new surface water delivery systems installed within the lands 

18 delineated on Exhibit B after the effective date of this Contract shall also comply with the 

19 measurement provisions described in this Article. 
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1 RULES AND REGULATIONS

2 11. The parties agree that the delivery of Project Water for irrigation use or use of 

3 Federal facilities pursuant to this Settlement Contract is subject to Federal Reclamation 

4 law, including but not limited to, the Reclamation Reform Act of 1982 (43 U.S.C.390aa 

5 et seq.), as amended and supplemented, and the rules and regulations promulgated by the 

6 Secretary of the Interior under Federal Reclamation law. 

7 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

8 

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

10 this Settlement Contract is a general obligation of the Contractor notwithstanding the 

11 manner in which the obligation may be distributed among the Contractor's water users 

12 and notwithstanding the default of individual water users in their obligations to the 

13 Contractor. 

14 

15 (b) The payment of Charges becoming due hereunder is a condition precedent 

16 to receiving benefits under this Settlement Contract. The United States shall not make 

17 water available to the Contractor through Project facilities during any period in which the 

18 Contractor may be in arrears in the advance payment of water Rates due the United 

19 States. The Contractor shall not furnish water made available pursuant to this Settlement 

20 Contract for lands or parties which are in arrears in the advance payment of water rates 

21 levied or established by the Contractor. 

22 

23 (c) With respect to subdivision (b) of this Article, the Contractor shall have 

24 no obligation to require advance payment for water Rates which it levies. 

25 

26 CHARGES FOR DELINQUENT PAYMENTS

27 

28 13. (a) The Contractor shall be subject to interest, administrative and penalty 

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

30 due date, the Contractor shall pay an interest charge for each day the payment is 

31 delinquent beyond the due date. When a payment becomes 60 days delinquent, the 

32 Contractor shall pay an administrative charge to cover additional costs of billing and 

33 processing the delinquent payment. When a payment is delinquent 90 days or more, the 

34 Contractor shall pay an additional penalty charge of six percent per year for each day the 

35 payment is delinquent beyond the due date. Further, the Contractor shall pay any fees 

36 incurred for debt collection services associated with a delinquent payment. 
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1 

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

3 in the Federal Register by the Department of the Treasury for application to overdue 

4 payments, or the interest rate of one-half of one percent per month prescribed by 

5 Section 6 of the Reclamation Project Act of 1939 (Public Law 76-260). The interest 

6 charge rate shall be determined as of the due date and remain fixed for the duration of the 

7 delinquent period. 

8 

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

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

11 to the accrued interest, and finally to the overdue payment. 

12 

13 QUALITY OF WATER

14 14. The operation and maintenance of Project facilities shall be performed in 

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

16 such facilities at the highest level reasonably attainable as determined by the Contracting 

17 Officer. The United States does not warrant the quality of water and is under no 

18 obligation to construct or furnish water treatment facilities to maintain or better the 

19 quality of water. 

20 WATER AND AIR POLLUTION CONTROL

21 15. The Contractor, in carrying out this Settlement Contract, shall comply with 

22 all applicable water and air pollution laws and regulations of the United States and the 

23 State of California, and shall obtain all required permits or licenses from the appropriate 

24 Federal, State, or local authorities. 

25 EQUAL OPPORTUNITY

26 16. During the performance of this Settlement Contract, the Contractor agrees as 

27 follows: 

28 
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1 (a) The Contractor will not discriminate against any employee or applicant 

2 for employment because of race, color, religion, sex, or national origin. The Contractor 

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

4 are treated during employment, without regard to their race, color, religion, sex, or 

5 national origin. Such action shall include, but not be limited to, the following: 

6 Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; 

7 layoff or termination, rates of payment or other forms of compensation; and selection for 

8 training, including apprenticeship. The Contractor agrees to post in conspicuous places, 

9 available to employees and applicants for employment, notices to be provided by the 

10 Contracting Officer setting forth the provisions of this nondiscrimination clause. 

11 

12 (b) The Contractor will, in all solicitations or advertisements for employees 

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

14 consideration for employment without discrimination because of race, color, religion, 

15 sex, or national origin. 

16 

17 (c) The Contractor will send to each labor union or representative of workers 

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

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

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

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

22 places available to employees and applicants for employment. 

23 

24 (d) The Contractor will comply with all provisions of Executive Order 

25 No. 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant 

26 orders of the Secretary of Labor. 

27 

28 (e) The Contractor will furnish all information and reports required by said 

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

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

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

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

33 

34 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

35 clauses of this Settlement Contract or with any of the said rules, regulations, or orders, 

36 this Settlement Contract may be canceled, terminated, or suspended, in whole or in part, 

37 and the Contractor may be declared ineligible for further Government contracts in 

38 accordance with procedures authorized in said amended Executive Order, and such other 

39 sanctions may be imposed and remedies invoked as provided in said Executive Order, or 

40 by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. 

41 
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1 (g) The Contractor will include the provisions of paragraphs (a) through (g) 

2 in every subcontract or purchase order unless exempted by the rules, regulations, or 

3 orders of the Secretary of Labor issued pursuant to Section 204 of said amended 

4 Executive Order, so that such provisions will be binding upon each subcontractor or 

5 vendor. The Contractor will take such action with respect to any subcontract or purchase 

6 order as may be directed by the Secretary of Labor as a means of enforcing such 

7 provisions, including sanctions for noncompliance: Provided, however, that in the event 

8 the Contractor becomes involved in, or is threatened with, litigation with a subcontractor 

9 or vendor as a result of such direction, the Contractor may request the United States to 

10 enter into such litigation to protect the interests of the United States. 

11 

12 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

13 (For Districts Only) 

14 

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

16 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as 

17 amended), the Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other 

18 applicable civil rights laws, as well as with their respective implementing regulations and 

19 guidelines imposed by the U.S. Department of the Interior and/or Bureau of Reclamation. 

20 

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

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

23 in, be denied the benefits of, or be otherwise subjected to discrimination under any 

24 program or activity receiving financial assistance from the Bureau of Reclamation. By 

25 executing this Settlement Contract, the Contractor agrees to immediately take any 

26 measures necessary to implement this obligation, including permitting officials of the 

27 United States to inspect premises, programs, and documents. 

28 

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

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

31 other Federal financial assistance extended after the date hereof to the Contractor by the 

32 Bureau of Reclamation, including installment payments after such date on account of 

33 arrangements for Federal financial assistance which were approved before such date. 

34 The Contractor recognizes and agrees that such Federal assistance will be extended in 

35 reliance on the representations and agreements made in this Article, and that the United 

36 States reserves the right to seek judicial enforcement thereof. 

37 

38 MINGLING OF CONTRACTOR’S PROJECT AND NON-PROJECT WATER

39 18. (a) Project Water must of necessity be transported by the Contractor to its 

40 water users by means of the same works and channels used for the transport of its non-
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1 Project Water including Base Supply. Notwithstanding such mingling of water, the 

2 provisions of Article 11 hereof shall be applicable only to Project Water, and such 

3 mingling of water shall not in any manner subject to the provisions of Article 11 hereof 

4 the Contractor’s non-Project water including Base Supply. 

5 (b) If required in accordance with subdivision (c) of this Article, the 

6 Contractor shall install and maintain such measuring equipment and distribution facilities 

7 and maintain such records as may be necessary to determine the amounts of water 

8 delivered to Excess Lands served by the Contractor. The Contractor shall not within any 

9 month deliver to Ineligible Lands water in excess of the non-Project Water, including 

10 Base Supply, for that month. The Contracting Officer or authorized representative shall 

11 have the right at all reasonable times to inspect such records and measuring equipment. 

12 (c) The Contractor will not be considered in violation of the requirement that 

13 Project Water be delivered only to Eligible Lands during any month of the irrigation 

14 season that the water requirement for beneficial use on Eligible Lands for that month is 

15 equal to or in excess of the Project Water for that month as shown on Exhibit A or any 

16 revision thereof pursuant to subdivision (c) of Article 3. The water requirement for 

17 beneficial use on Eligible Lands will be determined by multiplying: 

18 (1) the number of irrigable acres of the particular types of crops grown in 

19 that year on the acreage designated as eligible by 

20 (2) the Unit Duties as set forth in Exhibit C attached hereto and made a 

21 part hereof, or by such other Unit Duties mutually agreed upon by the Contractor and the 
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1 Contracting Officer. In order to make the computation of the water requirement for 

2 Eligible Lands, on April 1 of each Year and concurrently with its order for water for the 

3 irrigation season, the Contractor shall designate the acreage of and type of crops to be 

4 grown on its Eligible Lands that irrigation season. During any month the water 

5 requirement as above determined for crops growing on Eligible Lands during such month 

6 is equal to or in excess of the Project Water for that month as provided herein the 

7 Contractor shall not be required to measure the water delivered to Excess Lands. Any 

8 month the said water requirement is less than the amount of Project Water as provided 

9 herein, the Contractor will be required to measure water delivered to excess land in 

10 accordance with subdivision (b) hereof. 

11 BOOKS, RECORDS, AND REPORTS

12 19. The Contractor shall establish and maintain accounts and other books and 

13 records pertaining to administration of the terms and conditions of this Settlement 

14 Contract, including: the Contractor's financial transactions, water supply data, and 

15 Project land and right-of-way agreements; the water users' land-use (crop census), land 

16 ownership, land-leasing and water use data; and other matters that the Contracting 

17 Officer may require. Reports thereon shall be furnished to the Contracting Officer in 

18 such form and on such date or dates as the Contracting Officer may require. Subject to 

19 applicable Federal laws and regulations, each party to this Settlement Contract shall have 

20 the right during office hours to examine and make copies of each other’s books and 

21 official records relating to matters covered by this Settlement Contract. 

22 

23 CHANGE OF PLACE OF USE OR ORGANIZATION

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

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

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

27 area of the Contractor as shown on its Exhibit B, by inclusion, exclusion, annexation or 
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1 detachment of lands, by dissolution, consolidation, or merger or otherwise, except upon 

2 the Contracting Officer’s written consent thereto. Such consent will not be unreasonably 

3 withheld and a decision will be provided in a timely manner. [There may need to be 

4 Contractor specific language added.]

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

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

7 increased or decreased, as may be appropriate, pursuant to a supplemental agreement to 

8 be executed in respect thereto. 

9 CONSOLIDATION OF CONTRACTING ENTITIES

10 

11 21. Consolidation of Contractors may be approved by the Contracting Officer 

12 provided: (i) the Contracting Officer approves the form and organization of the resulting 

13 entity and the utilization by it of the Contract Total; and (ii) the obligations of the 

14 Contractors are assumed by such entity. 

15 No such consolidation shall be valid unless and until approved by the Contracting 

16 Officer. 

17 NOTICES

18 22. Any notice, demand, or request authorized or required by this Settlement 

19 Contract shall be deemed to have been given, on behalf of the Contractor, when mailed, 

20 postage prepaid, or delivered to the Area Manager, Northern California Area Office, 

21 Bureau of Reclamation, 16349 Shasta Dam Blvd., Shasta Lake, California, 96019, and on 

22 behalf of the United States, when mailed, postage prepaid, or delivered to the Board of 

23 Directors /City Council of the ________________________. The designation of the 

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

25 in this Article for other notices. 

26 
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1 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

2 

3 23. (a) The provisions of this Settlement Contract shall apply to and bind the 

4 successors and assigns of the parties hereto, but no assignment or transfer of this 

5 Settlement Contract or any right or interest therein shall be valid until approved in writing 

6 by the Contracting Officer. 

7 

8 (b) The assignment of any right or interest in this Settlement Contract by 

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

10 Settlement Contract absent the written concurrence of said other party. 

11 

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

13 approval of any proposed assignment. 

14 

15 OFFICIALS NOT TO BENEFIT

16 

17 24. (a) No Member of or Delegate to Congress, Resident Commissioner, or 

18 official of the Contractor shall benefit from this Settlement Contract other than as a water 

19 user or landowner in the same manner as other water users or landowners. 

20 

21 (b) No officer or member of the governing board of the Contractor shall 

22 receive any benefit that may arise by reason of this Settlement Contract other than as a 

23 landowner within the Contractor’s service area and in the same manner as other 

24 landowners within the said service area. 

25 

26 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS

27 

28 25. The expenditure or advance of any money or the performance of any 

29 obligation of the United States under this Settlement Contract shall be contingent upon 

30 appropriation or allotment of funds. Absence of appropriation or allotment of funds shall 

31 not relieve the Contractor from any obligations under this Settlement Contract. No 

32 liability shall accrue to the United States in case funds are not appropriated or allotted. 

33 

34 CONFIRMATION OF SETTLEMENT CONTRACT

35 26. The Contractor, after the execution of this Settlement Contract, shall 

36 promptly seek to secure a decree of a court of competent jurisdiction of the State of 

37 California, if appropriate, confirming the execution of this Settlement Contract. The 

38 Contractor shall furnish the United States a certified copy of the final decree, the 

39 validation proceedings, and all pertinent supporting records of the court approving and 

40 confirming this Settlement Contract, and decreeing and adjudging it to be lawful, valid, 
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1 and binding on the Contractor. This Settlement Contract shall not be binding on the 

2 United States until such final decree has been secured. 

3 

4 

5 

6 UNAVOIDABLE GROUNDWATER PERCOLATION

7 27. To the extent applicable, the Contractor shall not be deemed to have delivered 

8 Project Water to Excess Lands or Ineligible Lands if such lands are irrigated with 

9 groundwater that reaches the underground strata as an unavoidable result of the delivery 

10 of Project Water by the Contractor to Eligible Lands. 

11 PRIVACY ACT COMPLIANCE

12 

13 28. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 

14 552a) (the Act) and the Department of the Interior rules and regulations under the Act 

15 (43 CFR 2.45 et seq.) in maintaining Landholder acreage certification and reporting 

16 records, required to be submitted to the Contractor for compliance with Sections 206 and 

17 228 of the Reclamation Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 

18 426.18. 

19 

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

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

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

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

24 

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

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

27 Bureau of Reclamation Federal Register Privacy Act System of Records Notice (Acreage 

28 Limitation--Interior, Reclamation-31) which govern the maintenance, safeguarding, and 

29 disclosure of information contained in the Landholder's certification and reporting 

30 records. 

31 

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

33 Bureau of Reclamation to be the System Manager who shall be responsible for making 

34 decisions on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 

35 43 CFR 2.72. The Contractor is authorized to grant requests by individuals for access to 

36 their own records. 

37 
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1 (e) The Contractor shall forward promptly to the System Manager each 

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

3 filed under 43 CFR 2.71; notify the requester accordingly of such referral; and provide 

4 the System Manager with information and records necessary to prepare an appropriate 

5 response to the requester. These requirements do not apply to individuals seeking access 

6 to their own certification and reporting forms filed with the Contractor pursuant to 43 

7 CFR 426.18, unless the requester elects to cite the Privacy Act as a basis for the request. 

8 

9 

10 WATER CONSERVATION

11 29. (a) In order to provide further incentives for water conservation, the 

12 Contractor may reduce the amount of Project Water in any Water Year for which 

13 payment is required under Article 8(a) in accordance with the provisions of this Article 

14 29(a).

15 (1) On or before of any Water Year, the Contractor may file 

16 with Reclamation a Request for Reduction in Project Water Use, which shall specify the 

17 maximum quantity of Project Water to be diverted by the Contractor for that Water Year. 

18 The Request for Reduction in Project Water Use shall further specify the maximum 

19 quantity of Project Water to be diverted by the Contractor for each month that Project 

20 Water is available under this Settlement Contract.

21 (2) The Contracting Officer shall take action upon the Request for 

22 Reduction in Project Water Use within 30 days after receipt of the Request. If the 

23 Contracting Officer denies the Request in whole or in part, the Contracting Officer shall 

24 provide to the Contractor a written statement of the reasons for denial. Upon approval by 

25 the Contracting Officer of a reduction in Project Water use for the Water Year below 

26 seventy-five percent of the Project Water shown in Exhibit A, the Contractor’s payment 
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1 obligation for that Water Year shall be based on the revised maximum quantity of Project 

2 Water to be diverted, as established by the Contracting Officer.

3 (3) The Contractor shall limit diversions of Project Water to the revised 

4 maximum quantity of Project Water to be diverted for the Water Year, as approved by the 

5 Contracting Officer. If the Contractor’s diversions of Project Water exceed the revised 

6 maximum quantity of Project Water as approved by the Contracting Officer, the 

7 Contractor shall pay to Reclamation a penalty assessment in the amount of $___ per acre8 foot of Project Water diverted in excess of the approved quantity in addition to the 

9 payment obligation established under Article 8.

10 (4) The provisions of this Article 29(a) shall be in addition to and shall not 

11 affect the provisions of Article 3(e) pertaining to the sale, transfer, exchange or other 

12 disposal of the Contract Total designated in Exhibit A.

13 (b) Prior to the diversion of Project Water, the Contractor shall be 

14 implementing an effective water conservation and efficiency program based on the 

15 Basin-Wide Water Management Plan and/or Contractor's water conservation plan that 

16 has been determined by the Contracting Officer to meet the conservation and efficiency 

17 criteria for evaluating water conservation plans established under Federal law. The water 

18 conservation and efficiency program shall contain definite water conservation objectives, 

19 appropriate economically feasible water conservation measures, and time schedules for 

20 meeting those objectives. Continued diversion of Project Water pursuant to this 

21 Settlement Contract shall be contingent upon the Contractor’s continued implementation 

Deleted: a
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1 of such water conservation program. In the event the Contractor's water conservation 

2 plan or any revised water conservation plan completed pursuant to subdivision (c) of 

3 Article 29 of this Settlement Contract have not yet been determined by the Contracting 

4 Officer to meet such criteria, due to circumstances which the Contracting Officer 

5 determines are beyond the control of the Contractor, Project Water deliveries shall be 

6 made under this Settlement Contract so long as the Contractor diligently works with the 

7 Contracting Officer to obtain such determination at the earliest practicable date, and 

8 thereafter the Contractor immediately begins implementing its water conservation and 

9 efficiency program in accordance with the time schedules therein. 

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

11 status of its implementation of the water conservation plan on the reporting dates 

12 specified in the then existing conservation and efficiency criteria established under 

13 Federal law. 

14 (d) At five (5)-year intervals, the Contractor shall revise its water 

15 conservation plan to reflect the then current conservation and efficiency criteria for 

16 evaluating water conservation plans established under Federal law and submit such 

17 revised water management plan to the Contracting Officer for review and evaluation. 

18 The Contracting Officer will then determine if the water conservation plan meets 

19 Reclamation’s then current conservation and efficiency criteria for evaluating water 

20 conservation plans established under Federal law. 

Deleted: b

Deleted: c
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1 (e) If the Contractor is engaged in direct ground-water recharge, such activity 

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

3 OPINIONS AND DETERMINATIONS

4 

5 30. (a) Where the terms of this Settlement Contract provide for actions to be 

6 based upon the opinion or determination of either party to this Settlement Contract, said 

7 terms shall not be construed as permitting such action to be predicated upon arbitrary, 

8 capricious, or unreasonable opinions or determinations. Both parties, notwithstanding 

9 any other provisions of this Settlement Contract, expressly reserve the right to seek relief 

10 from and appropriate adjustment for any such arbitrary, capricious, or unreasonable 

11 opinion or determination. Each opinion or determination by either party shall be 

12 provided in a timely manner. Nothing in subdivision (a) of Article 30 of this Settlement 

13 Contract is intended to or shall affect or alter the standard of judicial review applicable 

14 under federal law to any opinion or determination implementing a specific provision of 

15 federal law embodied in statute or regulation. 

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

17 necessary to administer this Settlement Contract that are consistent with the provisions of 

18 this Settlement Contract, the laws of the United States and of the State of California, and 

19 the rules and regulations promulgated by the Secretary of the Interior. Such 

20 determinations shall be made in consultation with the Contractor to the extent reasonably 

21 practicable. 

Deleted: d
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1 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

2 31. (a) In addition to all other payments to be made by the Contractor pursuant to 

3 this Settlement Contract, the Contractor shall pay to the United States, within 60 days 

4 after receipt of a bill and detailed statement submitted by the Contracting Officer to the 

5 Contractor for such specific items of direct cost incurred by the United States for work 

6 requested by the Contractor associated with this Settlement Contract plus indirect costs in 

7 accordance with applicable Bureau of Reclamation policies and procedures. All such 

8 amounts referred to in this Article shall not exceed the amount agreed to in writing in 

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

10 administration. 

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

12 Contractor pursuant to Article 30 of this Settlement Contract shall be adjusted to reflect 

13 the actual costs when the work has been completed. If the advances exceed the actual 

14 costs incurred, the difference will be refunded to the Contractor. If the actual costs 

15 exceed the Contractor's advances, the Contractor will be billed for the additional costs 

16 pursuant to Article 31 of this Settlement Contract. 

17 WAIVER OF DEFAULT

18 32. The waiver by either party to this Settlement Contract as to any default shall 

19 not be construed as a waiver of any other default or as authority of the other party to 

20 continue such default or to make, do, or perform, or not to make, do, or perform, as the 

21 case may be, any act or thing which would constitute a default. 
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1 IN WITNESS WHEREOF, the parties hereto have executed this Settlement 

2 Contract as of the day and year first hereinabove written. 

3 

4 THE UNITED STATES OF AMERICA 

5 

6 

7 

8 By: __________________________ 

9 Regional Director, Mid-Pacific Region 

10 Bureau of Reclamation 

11 

12 

13 (SEAL) 

14 

15 

16 (Contractor) 

17 

18 

19 By:______________________________ 

20 President 

21 

22 

23 ATTEST: 

24 

25 

26 ________________________________ 

27 Secretary 

28 

29 

30 (I:\sac river renewal\Sac R Std Form 7-10.doc) 
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1 2002 Water Rates and Charges for Contract No. ##-##-###-##### 

2 Contractor Name - Sacramento River

3 

4 

5 

6 Per Acre-Foot 

7 

8 COST OF SERVICE RATES: 

9 

10 Capital Rates $4.24 

11 

12 O&M Rates: 

13 

14 Water Marketing $5.66 

15 Storage $4.87 

16 

17 Deficit Rates: 

18 

19 Interest Bearing $3.34 

20 

21 TOTAL $18.11 

22 

23 FULL-COST RATES: 

24 

25 Section 202(3) Rate is applicable to a 

26 Qualified Recipient or to a Limited 

27 Recipient receiving irrigation water 

28 on or before October 1, 1981. $22.12 

29 

30 Section 205(a)(3) Rate is 

31 applicable to a Limited Recipient that 

32 did not receive irrigation water on or 

33 before October 1, 1981. $24.47 

34 

35 

36 CHARGES UNDER P.L. 102-575 TO THE 

37 RESTORATION FUND 1/ 

38 

39 Restoration Payments (3407(d)(2)(A)) $7.54 

40 

41 
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1 1/ Restoration fund charges are payments in addition to the water rates and were 

2 determined pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges 

3 are on a fiscal year basis (10/1 - 9/30).