AG and M&I 

T. O. Draft 09/29-2004 

T. O. Draft 08/16-2004 

T. O. Draft 08/06-2004 

T. O. Final Delta Division Form 09/14-2004 

R. O. Final Delta Division Form 07/23-2004 

R.O. Draft 07/22-2004 

CVP-Wide Form 05/23-2004 

Delta Division 

Contract No. 

14-06-200-785-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

BYRON-BETHANY IRRIGATION DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM THE DELTA DIVISION

Table of Contents

Article No. Title Page No.

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

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

 1 Definitions............................................................................................................ 5-9 

 2 Term of Contract................................................................................................9-12

 3 Water to be Made Available and Delivered to the Contractor.........................13-17 

 4 Time for Delivery of Water .............................................................................17-18 

 5 Point of Diversion and Responsibility for Distribution of Water.................... 18-19 

 6 Measurement of Water Within the Contractor’s Service Area........................ 19-21 

 7 Rates and Method of Payment for Water.........................................................21-28 

 8 Non-Interest Bearing Operation and Maintenance Deficits.................................. 28 

 9 Sales, Transfers, or Exchanges of Water .........................................................28-29 

 10 Application of Payments and Adjustments........................................................... 30 

 11 Temporary Reductions--Return Flows ............................................................ 30-31 

 12 Constraints on the Availability of Water ......................................................... 31-33 

 13 Unavoidable Groundwater Percolation................................................................. 34 

 14 Rules and Regulations........................................................................................... 34 

 15 Water and Air Pollution Control........................................................................... 34 

 16 Quality of Water .............................................................................................. 34-35 

 17 Water Acquired by the Contractor Other Than From the United States..........35-37 

 18 Opinions and Determinations ............................................................................... 38 

 19 Coordination and Cooperation......................................................................... 38-40
Contract No. 14-06-200-785-LTR1 

Table of Contents - continued

Article No. Title Page No.

 20 Charges for Delinquent Payments ........................................................................ 40 

 21 Equal Opportunity............................................................................................40-41 

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 42 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 42 

 24 Privacy Act Compliance ..................................................................................42-43 

 25 Contractor to Pay Certain Miscellaneous Costs.................................................... 43 

 26 Water Conservation .........................................................................................44-45 

 27 Existing or Acquired Water or Water Rights........................................................ 45 

 28 Operation and Maintenance by Operating Non-Federal Entity ....................... 45-47 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 47 

 30 Books, Records, and Reports........................................................................... 47-48 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 48 

 32 Severability ......................................................................................................48-49 

 33 Resolution of Disputes.......................................................................................... 49 

 34 Officials Not to Benefit......................................................................................... 49 

 35 Changes in Contractor’s Service Area.................................................................. 50 

 36 Federal Laws......................................................................................................... 50 

 37 Notices .............................................................................................................50-51 

 38 Confirmation of Contract...................................................................................... 51 

 Signature Page ...................................................................................................... 52 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
T. O. Draft 09/29-2004 

T. O. Draft 08/16-2004 

T. O. Draft 08/06-2004 

T. O. Final Delta Division Form 09/14-2004 

R. O. Final Delta Division Form 07/23-2004 

R.O. Draft 07/22-2004 

CVP-Wide Form 05/23-2004 

Delta Division 

Contract No. 

14-06-200-785-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

6 AND

7 BYRON-BETHANY IRRIGATION DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE DELTA DIVISION

 THIS CONTRACT, made this 10 _____ day of ____________________, 2005, in pursuance 

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

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

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

14 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 (100 Stat. 

15 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all 

16 collectively hereinafter referred to as Federal Reclamation law, between THE UNITED STATES 

17 OF AMERICA, hereinafter referred to as the United States, and BYRON-BETHANY 

18 IRRIGATION DISTRICT, hereinafter referred to as the Contractor, a public agency of the State of 

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

20 WITNESSETH, That:
Contract No. 14-06-200-785-LTR1 

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21 EXPLANATORY RECITALS

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

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

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

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

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

27 San Joaquin River and their tributaries; and 

 [2nd 28 ] WHEREAS, the United States constructed the Delta-Mendota Canal and related 

29 facilities, which will be used in part for the furnishing of water to the Contractor pursuant to the 

30 terms of this Contract; and 

 [3rd 31 ] WHEREAS, the rights to Project Water were acquired by the United States pursuant 

32 to California law for operation of the Project; and 

 [4th 33 ] WHEREAS, the Contractor and the United States entered into Contract 

34 No. 14-06-200-785, as amended, which in Part A thereof, established terms for the delivery to the 

35 Contractor of Project Water from the Delta Division Facilities from through May 22, 1953, through 

36 February 28, 1994; and 

 [5th 37 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

38 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

39 interim renewal contract(s) identified as Contract No(s). 14-06-200-785-IR1, 14-06-200-785-IR2, 

40 14-06-200-785-IR3, 14-06-200-785-IR4, 14-06-200-785-IR5, 14-06-200-785-IR6, 14-06-200-785-

41 IR7, 14-06-200-785-IR8, 14-06-200-785-IR9, and 14-06-200-785-IR10, the current of which is 

42 hereinafter referred to as the Existing Contract, which provided for the continued water service to 

43 the Contractor from March 1, 1994, through February 28, 2006; and 
Contract No. 14-06-200-785-LTR1 

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44 [5.1] WHEREAS, Plain View Water District and Byron-Bethany Irrigation District have 

45 determined that consolidation of the two districts will improve the administrative efficiency of the 

46 districts and will enhance the districts’ stability; and 

47 [5.2] WHEREAS, San Joaquin Local Agency Formation Commission approved 

48 consolidation of Plain View Water District and Byron-Bethany Irrigation District on August 12, 

49 2004, by dissolving Plain View Water District and reorganizing the territory to Byron-Bethany 

50 Irrigation District; and 

51 [5.3] WHEREAS, the consolidation referred to in the preceding two explanatory recitals 

52 did not, in any manner, change the area to which Project Water may be delivered pursuant to the 

53 Existing Contract; and 

 [6th 54 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

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

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

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

 [7th 59 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 61 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 64 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

65 its obligations under the Existing Contract; and 
Contract No. 14-06-200-785-LTR1 

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 [10th 66 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

67 Officer that the Contractor has utilized the Project Water supplies available to it for reasonable and 

68 beneficial use and/or has demonstrated projected future demand for water use such that the 

69 Contractor has the capability and expects to utilize fully for reasonable and beneficial use the 

70 quantity of Project Water to be made available to it pursuant to this Contract; and 

 [11th 71 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

73 an essential portion of its water supply; and 

 [12th 74 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

75 depend upon the continued availability of water, including water service from the Project; and 

 [13th 76 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

78 Project for all Project purposes; and 

 [14th 79 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

81 of the Project as required by law; to guard reasonably against Project Water shortages; to achieve a 

82 reasonable balance among competing demands for use of Project Water; and to comply with all 

83 applicable environmental statutes, all consistent with the legal obligations of the United States 

84 relative to the Project; and 

 [15th 85 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

86 relationship in order to achieve their mutual goals; and 

87 [15.1] WHEREAS, the Contractor has utilized or may utilize transfers, contract 

88 assignments, rescheduling and conveyance of Project Water and non-Project water under this 
Contract No. 14-06-200-785-LTR1 

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89 Contract as tools to minimize the impacts of Conditions of Shortage and to maximize the beneficial 

90 use of water; and 

91 [15.2] WHEREAS, the parties desire and intend that this Contract not provide a 

92 disincentive to the Contractor in continuing to carry out the beneficial activities set out in the 

93 Explanatory Recital immediately above; and 

 [16th 94 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

98 DEFINITIONS

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

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

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

102 dates inclusive; 

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

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

105 annually by the Contracting Officer pursuant to this Contract; 

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

107 any Year such that the Contracting Officer is unable to deliver sufficient water to meet the Contract 

108 Total; 

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

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

111 regulation; 
Contract No. 14-06-200-785-LTR1 

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

113 Contractor is entitled under subdivision (a) of Article 3 of this Contract; 

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

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

116 which may be modified from time to time in accordance with Article 35 of this Contract without 

117 amendment of this Contract; 

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

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

120 (g.1) “Delta Division Facilities” shall mean those existing and future Project 

121 facilities in and south of the Sacramento-San Joaquin Rivers Delta, including, but not limited to, the 

122 Tracy Pumping Plant, the O’Neill Forebay, the O’Neill Pumping/Generating Plant, and the San Luis 

123 Reservoir, used to divert, store, and convey water to those Project Contractors entitled to receive 

124 water conveyed through the Delta-Mendota Canal; 

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

126 delivered in accordance with Section 204 of the Reclamation Reform Act of October 12, 1982 (96 

127 Stat. 1263), as amended, hereinafter referred to as RRA; 

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

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

130 Reclamation law; 

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

132 Officer that shall amortize the expenditures for construction properly allocable to the Project 

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

134 funded, less payments, over such periods as may be required under Federal Reclamation law, or 
Contract No. 14-06-200-785-LTR1 

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135 applicable contract provisions. Interest will accrue on both the construction expenditures and 

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

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

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

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

140 Regulations for the RRA; 

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

142 delivered in accordance with Section 204 of the RRA; 

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

144 the delivery of Irrigation Water; 

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

146 used primarily in the production of agricultural crops or livestock, including domestic use incidental 

147 thereto, and watering of livestock; 

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

149 nonexempt land, as provided in 43 CFR 426.2; 

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

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

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

153 which are kept for personal enjoyment or water delivered to landholdings operated in units of less 

154 than five acres unless the Contractor establishes to the satisfaction of the Contracting Officer that 

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

156 Article; 
Contract No. 14-06-200-785-LTR1 

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

158 delivery of M&I Water; 

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

160 care, control, operation, repair, replacement (other than capital replacement), and maintenance of 

161 Project facilities; 

162 (r) “Operating Non-Federal Entity” shall mean the entity(ies), its (their) 

163 successors or assigns, which has (have) the obligation to operate and maintain all or a portion of the 

164 Delta Division Facilities pursuant to written agreement(s) with the United States. When this 

165 Contract was entered into, the Operating Non-Federal Entity was the San Luis & Delta-Mendota 

166 Water Authority. 

167 (s) “Project” shall mean the Central Valley Project owned by the United States 

168 and managed by the Department of the Interior, Bureau of Reclamation; 

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

170 for Project Water from the Project with the United States pursuant to Federal Reclamation law; 

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

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

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

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

175 Officer in accordance with the then current applicable water ratesetting policies for the Project, as 

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

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

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

179 preceding contract(s); 
Contract No. 14-06-200-785-LTR1 

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

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

182 through any agency of the Department of the Interior; 

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

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

185 (z) “Water Delivered” or “Delivered Water” shall mean Project Water diverted 

186 for use by the Contractor at the point(s) of delivery approved by the Contracting Officer; 

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

188 that can be delivered to the Contractor for the upcoming Year as declared by the Contracting 

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

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

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

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

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

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

195 TERM OF CONTRACT

196 2. (a) This Contract shall be effective March 1, 2005, through February 28, 2030, 

and supersedes the Existing Contract. 197 In the event the Contractor wishes to renew this Contract 

198 beyond February 28, 2030, the Contractor shall submit a request for renewal in writing to the 

199 Contracting Officer no later than two years prior to the date this Contract expires. The renewal of 

200 this Contract insofar as it pertains to the furnishing of Irrigation Water to the Contractor shall be 

201 governed by subdivision (b) of this Article, and the renewal of this Contract insofar as it pertains to 

202 the furnishing of M&I Water to the Contractor shall be governed by subdivision (c) of this Article.
Contract No. 14-06-200-785-LTR1 

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

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

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

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

207 the Contractor, shall be renewed for a period of 25 years. 

208 (2) The conditions which must be met for this Contract to be renewed are: 

209 (i) the Contractor has prepared a water conservation plan that has been determined by the 

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

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

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

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

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

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

216 reasonably and beneficially used the Project Water supplies made available to it and, based on 

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

218 beneficial use the quantity of Project Water to be made available to it pursuant to such renewal; (v) 

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

220 has the physical and legal ability to deliver Project Water. 

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

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

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

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

225 without limitation, the Contractor’s need for continued delivery of Project Water; environmental 
Contract No. 14-06-200-785-LTR1 

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

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

228 toward achieving the purposes of the CVPIA as set out in Section 3402 and in implementing the 

229 specific provisions of the CVPIA; and current and anticipated economic circumstances of the region 

230 served by the Contractor. 

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

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

233 consistent with the then-existing Reclamation-wide policy, under terms and conditions mutually 

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

235 the opportunity to comment to the Contracting Officer on the proposed adoption and application of 

236 any revised policy applicable to the delivery of M&I Water that would limit the term of any 

237 subsequent renewal contract with the Contractor for the furnishing of M&I Water to less than 40 

238 years. 

239 (d) The Contracting Officer shall make a determination ten years after the date of 

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

241 whether a conversion of the relevant portion of this Contract to a contract under subsection 9(d) of 

242 the Reclamation Project Act of 1939 can be accomplished pursuant to the Act of July 2, 1956 (70 

243 Stat 483). The Contracting Officer shall also make a determination ten years after the date of 

244 execution of this Contract and every five years thereafter during the term of this Contract of whether 

245 a conversion of the relevant portion of this Contract to a contract under subsection 9(c)(1) of the 

246 Reclamation Project Act of 1939 can be accomplished. Notwithstanding any provision of this 

247 Contract, the Contractor reserves and shall have all rights and benefits under the Act of July 2, 1956 

248 (70 Stat. 483). The Contracting Officer anticipates that during the term of this Contract, all 
Contract No. 14-06-200-785-LTR1 

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249 authorized Project construction expected to occur will have occurred, and on that basis the 

250 Contracting Officer agrees upon such completion to allocate all costs that are properly assignable to 

251 the Contractor, and agrees further that, at any time after such allocation is made, and subject to 

252 satisfaction of the condition set out in this subdivision, this Contract shall, at the request of the 

253 Contractor, be converted to a contract under subsection 9(d) or 9(c)(1), whichever is applicable of 

254 the Reclamation Project Act of 1939, subject to applicable Federal law and under stated terms and 

255 conditions mutually agreeable to the Contractor and the Contracting Officer. A condition for such 

256 conversion to occur shall be a determination by the Contracting Officer that, account being taken of 

257 the amount credited to return by the Contractor as provided for under Federal Reclamation law, the 

258 remaining amount of construction costs assignable for ultimate return by the Contractor can 

259 probably be repaid to the United States within the term of a contract under subsection 9(d) or 

260 9(c)(1), whichever is applicable. If the remaining amount of costs that are properly assignable to 

261 the Contractor cannot be determined during the term of this Contract, the Contracting Officer shall 

262 notify the Contractor, and provide the reason(s) why such a determination could not be made. 

263 Further, the Contracting Officer shall make such a determination as soon thereafter as possible so as 

264 to permit, upon request of the Contractor and satisfaction of the conditions set out above, 

265 conversion to a contract under subsection 9(d) or 9(c)(1), whichever is applicable. In the event such 

266 determination of costs has not been made at a time which allows conversion of this Contract during 

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

268 term, the parties shall incorporate in any subsequent renewal contract as described in subdivision (b) 

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

270 subdivision. 
Contract No. 14-06-200-785-LTR1 

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271 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

273 and licenses; Federal law; and subject to the provisions set forth in Articles 11 and 12 of this 

274 Contract, the Contracting Officer shall make available for delivery to the Contractor 20,600 acre275 feet of Project Water for irrigation and M&I purposes. Water Delivered to the Contractor in 

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

277 Articles 4 and 7 of this Contract. 

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

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

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

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

282 any given Year is uncertain. The Contracting Officer’s modeling referenced in the PEIS projected 

283 that the Contract Total set forth in this Contract will not be available to the Contractor in many 

284 years. During the most recent five years, the Recent Historic Average of Water Made Available to 

285 the Contractor was 13,555 acre-feet. Nothing in subdivision (b) of this Article shall affect the rights 

286 and obligations of the parties under any provision of this Contract. 

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

288 applicable legal requirements. 

289 (c.1) In the event any Project Contractor (other than a Cross Valley Contractor) 

290 that receives Project Water through the Delta Division Facilities obtains a contractual agreement 

291 that the Contracting Officer shall make Project Water available at a point or points of delivery in or 

292 north of the Delta, at the request of the Contractor and upon completion of any required 

293 environmental documentation, this Contract shall be amended to provide for deliveries in or north 
Contract No. 14-06-200-785-LTR1 

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294 of the Delta on mutually agreeable terms. Such amendments to the Contract shall be limited solely 

295 to those changes made necessary by the addition of such alternate points of delivery in or north of 

296 the Delta; Provided, That the Contracting Officer’s use of the Harvey O. Banks Pumping Plant to 

297 deliver Project Water does not trigger this right of amendment. 

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

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

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

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

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

303 with Federal Reclamation law will be allowed; Provided, That any direct recharge program(s) is 

304 (are) described in the Contractor’s water conservation plan submitted pursuant to Article 26 of this 

305 Contract; Provided further, That such water conservation plan demonstrates sufficient lawful uses 

306 exist in the Contractor’s Service Area so that using a long-term average, the quantity of Delivered 

307 Water is demonstrated to be reasonable for such uses and in compliance with Federal Reclamation 

308 law. Groundwater recharge programs, groundwater banking programs, surface water storage 

309 programs, and other similar programs utilizing Project Water or other water furnished pursuant to 

310 this Contract conducted outside the Contractor’s Service Area may be permitted upon written 

311 approval of the Contracting Officer, which approval will be based upon environmental 

312 documentation, Project Water rights, and Project operational concerns. The Contracting Officer 

313 will address such concerns in regulations, policies, or guidelines. 

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

315 in biological opinion(s) prepared as a result of a consultation regarding the execution of this 

316 Contract undertaken pursuant to Section 7 of the Endangered Species Act of 1973 (ESA), as 
Contract No. 14-06-200-785-LTR1 

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

318 which evidences in excess of 50 years of diversions for irrigation and/or M&I purposes of the 

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

320 developing an appropriate baseline for biological assessment(s) prepared pursuant to the ESA, and 

321 any other needed environmental review. Nothing herein shall be construed to prevent the 

322 Contractor from challenging or seeking judicial relief in a court of competent jurisdiction with 

323 respect to any biological opinion or other environmental documentation referred to in this Article.

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

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

326 available to the Project, can be made available to the Contractor in addition to the Contract Total 

327 under this Article during the Year without adversely impacting other Project Contractors. At the 

328 request of the Contractor, the Contracting Officer will consult with the Contractor prior to making 

329 such a determination. If the Contracting Officer determines that Project Water, or other water 

330 available to the Project, can be made available to the Contractor, the Contracting Officer will 

331 announce the availability of such water and shall so notify the Contractor as soon as practical. The 

332 Contracting Officer will thereafter meet with the Contractor and other Project Contractors capable 

333 of taking such water to determine the most equitable and efficient allocation of such water. If the 

334 Contractor requests the delivery of any quantity of such water, the Contracting Officer shall make 

335 such water available to the Contractor in accordance with applicable statutes, regulations, 

336 guidelines, and policies. Subject to existing long-term contractual commitments, water rights and 

337 operational constraints, long-term Project Contractors shall have a first right to acquire such water, 

338 including Project Water made available pursuant to Section 215 of the RRA. 
Contract No. 14-06-200-785-LTR1 

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

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

341 referred to as “rescheduled water.” The Contractor may request permission to use during the 

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

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

344 approval may permit such uses in accordance with applicable statutes, regulations, guidelines, and 

345 policies. 

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

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

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

349 during the terms thereof shall not be disturbed so long as the Contractor shall fulfill all of its 

350 obligations under this Contract and any renewals thereof. Nothing in the preceding sentence shall 

351 affect the Contracting Officer’s ability to impose shortages under Article 11 or subdivision (b) of 

352 Article 12 of this Contract or applicable provisions of any subsequent renewal contracts. 

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

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

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

356 conditions of such approval. 

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

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

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

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

361 that the Contracting Officer retains the right to object to the substance of the Contractor’s position 
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362 in such a proceeding; Provided further, That in such proceedings the Contracting Officer shall 

363 recognize the Contractor has a legal right under the terms of this Contract to use Project Water. 

364 TIME FOR DELIVERY OF WATER

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

366 announce the Contracting Officer’s expected declaration of the Water Made Available. Such 

367 declaration will be expressed in terms of both Water Made Available and the Recent Historic 

368 Average and will be updated monthly, and more frequently if necessary, based on then-current 

369 operational and hydrologic conditions and a new declaration with changes, if any, to the Water 

370 Made Available will be made. The Contracting Officer shall provide forecasts of Project operations 

371 and the basis of the estimate, with relevant supporting information, upon the written request of the 

372 Contractor. Concurrently with the declaration of the Water Made Available, the Contracting 

373 Officer shall provide the Contractor with the updated Recent Historic Average. 

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

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

376 Officer, showing the monthly quantities of Project Water to be delivered by the United States to the 

377 Contractor pursuant to this Contract for the Year commencing on such March 1. The Contracting 

378 Officer shall use all reasonable means to deliver Project Water according to the approved schedule 

379 for the Year commencing on such March 1. 

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

381 Project Water the Contractor intends to put to reasonable and beneficial use within the Contractor's 

382 Service Area or to sell, transfer, or exchange pursuant to Article 9 of this Contract during any Year. 

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

384 Contract, the United States shall deliver Project Water to the Contractor in accordance with the 
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385 initial schedule submitted by the Contractor pursuant to subdivision (b) of this Article, or any 

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

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

388 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

390 Contract shall be delivered to the Contractor at a point or points and any additional point or points 

391 of delivery either on Project facilities or another location or locations mutually agreed to in writing 

392 by the Contracting Officer and the Contractor. 

393 (b) The Contracting Officer, either directly or indirectly through its written 

394 agreement(s) with the Operating Non-Federal Entity, shall make all reasonable efforts to maintain 

395 sufficient flows and levels of water in Project facilitiesto deliver Project Water to the Contractor at 

396 the point or points of delivery established pursuant to subdivision (a) of this Article. 

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

398 applicable land classification provisions of Federal Reclamation law and the associated regulations. 

399 The Contractor shall not deliver Project Water to land outside the Contractor's Service Area unless 

400 approved in advance by the Contracting Officer. 

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

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

403 Contracting Officer either directly or indirectly through its written agreement(s) with the Operating 

404 Non-Federal Entity, unless undertaken by the Contractor with the consent of the Contracting 

405 Officer, at the point or points of delivery established pursuant to subdivision (a) of this Article. 

406 Upon the request of either party to this Contract, the Contracting Officer shall investigate, or cause 

407 to be investigated by the appropriate Operating Non-Federal Entity, the accuracy of such 
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408 measurements and shall take any necessary steps to adjust any errors appearing therein. For any 

409 period of time when accurate measurements have not been made, the Contracting Officer shall 

410 consult with the Contractor and the appropriate Operating Non-Federal Entity, if any, prior to 

411 making a final determination of the quantity delivered for that period of time. 

412 (e) Absent a separate contrary written agreement with the Contractor, neither the 

413 Contracting Officer nor any Operating Non-Federal Entity shall be responsible for the control, 

414 carriage, handling, use, disposal, or distribution of Water Delivered to the Contractor pursuant to 

415 this Contract beyond the point or points of delivery established pursuant to subdivision (a) of this 

416 Article. The Contractor shall indemnify the United States, its officers, employees, agents, and 

417 assigns on account of damage or claim of damage of any nature whatsoever for which there is legal 

418 responsibility, including property damage, personal injury, or death arising out of or connected with 

419 the control, carriage, handling, use, disposal, or distribution of such Water Delivered beyond such 

420 point or points of delivery, except for any damage or claim arising out of: (i) acts or omissions of 

421 the Contracting Officer or any of its officers, employees, agents, and assigns, including the 

422 Operating Non-Federal Entity, with the intent of creating the situation resulting in any damage or 

423 claim; (ii) willful misconduct of the Contracting Officer or any of its officers, employees, agents, 

424 and assigns, including the Operating Non-Federal Entity; (iii) negligence of the Contracting Officer 

425 or any of its officers, employees, agents, and assigns including the Operating Non-Federal Entity; or 

426 (iv) a malfunction of facilities owned and/or operated by the United States or the Operating 

427 Non-Federal Entity. 

428 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

430 Contracting Officer. The Contractor shall ensure that all surface water delivered for irrigation 
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431 purposes within the Contractor’s Service Area is measured at each agricultural turnout and such 

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

433 measuring devices or water measuring methods of comparable effectiveness must be acceptable to 

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

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

436 methods at no cost to the United States. The Contractor shall use the information obtained from 

437 such water measuring devices or water measuring methods to ensure its proper management of the 

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

439 delivered for M&I purposes by customer class as defined in the Contractor’s water conservation 

440 plan provided for in Article 26 of this Contract. Nothing herein contained, however, shall preclude 

441 the Contractor from establishing and collecting any charges, assessments, or other revenues 

442 authorized by California law. The Contractor shall include a summary of all its annual surface 

443 water deliveries in the annual report described in subdivision (c) of Article 26. 

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

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

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

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

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

449 which such measurement devices or water measuring methods are being used, and, if applicable, 

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

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

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

453 measuring devices or water measuring methods identified in the Contractor’s report and if the 
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454 Contracting Officer does not respond in such time, they shall be deemed adequate. If the 

455 Contracting Officer notifies the Contractor that the measuring devices or methods are inadequate, 

456 the parties shall within 60 days following the Contracting Officer’s response, negotiate in good faith 

457 the earliest practicable date by which the Contractor shall modify said measuring devices and/or 

458 measuring methods as required by the Contracting Officer to ensure compliance with subdivision 

459 (a) of this Article. 

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

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

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

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

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

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

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

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

468 Water and M&I Water taken during the preceding month. 

469 RATES AND METHOD OF PAYMENT FOR WATER

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

471 Delivered Water at Rates, Charges, and the Tiered Pricing Component established in accordance 

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

473 then-existing ratesetting policy for M&I Water, which ratesetting policies shall be amended, 

474 modified, or superseded only through a public notice and comment procedure; (ii) applicable 

475 Federal Reclamation law and associated rules and regulations, or policies; and (iii) other applicable 

476 provisions of this Contract. Payments shall be made by cash transaction, electronic funds transfer, 
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477 or any other mechanism as may be agreed to in writing by the Contractor and the Contracting 

478 Officer. The Rates, Charges, and Tiered Pricing Component applicable to the Contractor upon 

479 execution of this Contract are set forth in Exhibit “B,” as may be revised annually. 

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

481 Tiered Pricing Component as follows: 

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

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

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

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

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

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

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

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

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

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

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

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

494 on such computations and cost allocations. By December 31 of each Calendar Year, the 

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

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

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

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

499 shall make an advance payment to the United States equal to the total amount payable pursuant to 
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500 the applicable Rate(s) set under subdivision (a) of this Article, for the Project Water scheduled to be 

501 delivered pursuant to this Contract during the first two calendar months of the Year. Before the end 

502 of the first month and before the end of each calendar month thereafter, the Contractor shall make 

503 an advance payment to the United States, at the Rate(s) set under subdivision (a) of this Article, for 

504 the Water Scheduled to be delivered pursuant to this Contract during the second month immediately 

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

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

507 revised schedule submitted by the Contractor pursuant to Article 4 of this Contract which increases 

508 the amount of Water Delivered pursuant to this Contract during any month shall be accompanied 

509 with appropriate advance payment, at the Rates then in effect, to assure that Project Water is not 

510 delivered to the Contractor in advance of such payment. In any month in which the quantity of 

511 Water Delivered to the Contractor pursuant to this Contract equals the quantity of Water Scheduled 

512 and paid for by the Contractor, no additional Project Water shall be delivered to the Contractor 

513 unless and until an advance payment at the Rates then in effect for such additional Project Water is 

514 made. Final adjustment between the advance payments for the Water Scheduled and payments for 

515 the quantities of Water Delivered during each Year pursuant to this Contract shall be made as soon 

516 as practicable but no later than April 30th of the following Year, or 60 days after the delivery of 

517 Project Water rescheduled under subdivision (g) of Article 3 of this Contract if such water is not 

518 delivered by the last day of February. 

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

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

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

522 month of delivery; Provided, That the Contractor may be granted an exception from the Tiered 
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523 Pricing Component pursuant to subdivision (j)(2) of this Article. The payments shall be consistent 

524 with the quantities of Irrigation Water and M&I Water Delivered as shown in the water delivery 

525 report for the subject month prepared by the Operating Non-Federal Entity or, if there is no 

526 Operating Non-Federal Entity, by the Contracting Officer. The water delivery report shall be 

527 deemed a bill for the payment of Charges and the applicable Tiered Pricing Component for Water 

528 Delivered. Adjustment for overpayment or underpayment of Charges shall be made through the 

529 adjustment of payments due to the United States for Charges for the next month. Any amount to be 

530 paid for past due payment of Charges and the Tiered Pricing Component shall be computed 

531 pursuant to Article 20 of this Contract. 

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

533 or (g) of Article 3 of this Contract as determined by the Contracting Officer pursuant to applicable 

534 statutes, associated regulations, any applicable provisions of guidelines or ratesetting policies; 

535 Provided, That the Rate for Water Delivered under subdivision (d) of Article 3 of this Contract shall 

536 be no more than the otherwise applicable Rate for Irrigation Water or M&I Water under subdivision 

537 (a) of this Article. 

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

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

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

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

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

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

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

545 administration of the financial terms and conditions of its long-term contracts, in accordance with 
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546 applicable Federal standards, so as to reflect the application of Project costs and revenues. The 

547 Contracting Officer shall, each Year upon request of the Contractor, provide to the Contractor a 

548 detailed accounting of all Project and Contractor expense allocations, the disposition of all Project 

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

550 and the Contractor shall enter into good faith negotiations to resolve any discrepancies or disputes 

551 relating to accountings, reports, or information. 

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

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

554 policies, and procedures used for establishing Rates, Charges, and Tiered Pricing Component, 

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

556 mutual best interest of the parties, it is expressly agreed that the parties may enter into agreements to 

557 modify the mechanisms, policies, and procedures for any of those purposes while this Contract is in 

558 effect without amending this Contract. 

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

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

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

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

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

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

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

566 whichever is applicable. The Tiered Pricing Component for the amount of Water Delivered which 

567 exceeds 90 percent of the Contract Total shall equal the difference between (i) the Rate established 

568 under subdivision (a) of this Article and (ii) the Irrigation Full Cost Water Rate or M&I Full Cost 
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569 Water Rate, whichever is applicable. For all Water Delivered pursuant to subdivision (a) of Article 

570 3 of this Contract which is in excess of 80 percent of the Contract Total, this increment shall be 

571 deemed to be divided between Irrigation Water and M&I Water in the same proportion as actual 

572 deliveries of each bear to the cumulative total Water Delivered. 

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

574 may request and receive an exemption from such Tiered Pricing Component for Project Water 

575 delivered to produce a crop which the Contracting Officer determines will provide significant and 

576 quantifiable habitat values for waterfowl in fields where the water is used and the crops are 

577 produced; Provided, That the exemption from the Tiered Pricing Component for Irrigation Water 

578 shall apply only if such habitat values can be assured consistent with the purposes of the CVPIA 

579 through binding agreements executed with or approved by the Contracting Officer prior to use of 

580 such water. 

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

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

583 transfers to others but shall not include Project Water transferred to the Contractor, nor shall it 

584 include the additional water provided to the Contractor under the provisions of subdivision (f) of 

585 Article 3 of this Contract. 

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

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

588 costs of the Project, as those terms are used in the then-current Project ratesetting policies, and 

589 interest, where appropriate, except in instances where a minimum Rate is applicable in accordance 

590 with the relevant Project ratesetting policy. Changes of significance in practices which implement 

591 the Contracting Officer’s ratesetting policies will not be implemented until the Contracting Officer 
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592 has provided the Contractor an opportunity to discuss the nature, need, and impact of the proposed 

593 change. 

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

595 the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates, in 

596 accordance with the applicable Project ratesetting policy, adjusted upward or downward to reflect 

597 the changed costs, if any, incurred by the Contracting Officer in the delivery of the transferred 

598 Project Water to the transferee’s point of delivery. If the Contractor is receiving lower Rates and 

599 Charges because of inability to pay and is transferring Project Water to another entity whose Rates 

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

601 Water shall not be adjusted to reflect the Contractor’s inability to pay. 

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

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

604 (n) With respect to the Rates for M&I Water, the Contractor asserts that it is not 

605 legally obligated to pay any Project deficits claimed by the United States to have accrued as of the 

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

607 Contractor does not waive any legal rights or remedies that it may have with respect to such 

608 disputed issues. Notwithstanding the execution of this Contract and payments made hereunder, the 

609 Contractor may challenge in the appropriate administrative or judicial forums; (1) the existence, 

610 computation, or imposition of any deficit charges accruing during the term of the Existing Contract 

611 and any preceding interim renewal contracts, if applicable; (2) interest accruing on any such 

612 deficits; (3) the inclusion of any such deficit charges or interest in the Rates; (4) the application by 

613 the United States of payments made by the Contractor under its Existing Contract and any 

614 preceding interim renewal contracts if applicable; and (5) the application of such payments in the 
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615 Rates. The Contracting Officer agrees that the Contractor shall be entitled to the benefit of any 

616 administrative or judicial ruling in favor of any Project M&I contractor on any of these issues, and 

617 credits for payments heretofore made, provided that the basis for such ruling is applicable to the 

618 Contractor. 

619 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

622 liability therefore. 

623 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

625 transferred, or exchanged to others for reasonable and beneficial uses within the State of California 

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

627 guidelines or regulations then in effect. No sale, transfer, or exchange of Project Water under this 

628 Contract may take place without the prior written approval of the Contracting Officer, except as 

629 provided for in subdivision (b) of this Article, and no such sales, transfers, or exchanges shall be 

630 approved absent all appropriate environmental documentation, including but not limited to, 

631 documents prepared pursuant to the NEPA and ESA. Such environmental documentation should 

632 include, as appropriate, an analysis of groundwater impacts and economic and social effects, 

633 including environmental justice, of the proposed water transfers on both the transferor and 

634 transferee. 

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

636 of the type historically carried out among Project Contractors located within the same geographical 

637 area and to allow the Contractor to participate in an accelerated water transfer program during the 
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638 term of this Contract, the Contracting Officer shall prepare, as appropriate, all necessary 

639 environmental documentation, including but not limited to documents prepared pursuant to NEPA 

640 and ESA, analyzing annual transfers within such geographical areas and the Contracting Officer 

641 shall determine whether such transfers comply with applicable law. Following the completion of 

642 the environmental documentation, such transfers addressed in such documentation shall be 

643 conducted with advance notice to the Contracting Officer, but shall not require prior written 

644 approval by the Contracting Officer. Such environmental documentation and the Contracting 

645 Officer’s compliance determination shall be reviewed every five years and updated, as necessary, 

646 prior to the expiration of the then existing five-year period. All subsequent environmental 

647 documentation shall include an alternative to evaluate not less than the quantity of Project Water 

648 historically transferred within the same geographical area. 

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

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

651 for M&I use, groundwater recharge, groundwater banking, or similar groundwater activities, surface 

652 water storage, or fish and wildlife resources; not lead to land conversion; and be delivered to 

653 established cropland, wildlife refuges, groundwater basins, or M&I use; (ii) occur within a single 

654 Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water through existing 

655 facilities with no new construction or modifications to facilities and be between existing Project 

656 Contractors and/or the Contractor and the United States, Department of the Interior; and (v) comply 

657 with all applicable Federal, State, and local or tribal laws and requirements imposed for protection 

658 of the environment and Indian Trust Assets, as defined under Federal law. 
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659 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

660 10. (a) The amount of any overpayment by the Contractor of the Contractor’s O&M, 

661 capital, and deficit (if any) obligations for the Year shall be applied first to any current liabilities of 

662 the Contractor arising out of this Contract then due and payable. Overpayments of more than 

663 $1,000 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such 

664 overpayment at the option of the Contractor may be credited against amounts to become due to the 

665 United States by the Contractor. With respect to overpayment, such refund or adjustment shall 

666 constitute the sole remedy of the Contractor or anyone having or claiming to have the right to the 

667 use of any of the Project Water supply provided for herein. All credits and refunds of overpayments 

668 shall be made within 30 days of the Contracting Officer obtaining direction as to how to credit or 

669 refund such overpayment in response to the notice to the Contractor that it has finalized the 

670 accounts for the Year in which the overpayment was made. 

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

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

673 the work has been completed. If the advances exceed the actual costs incurred, the difference will 

674 be refunded to the Contractor. If the actual costs exceed the Contractor's advances, the Contractor 

675 will be billed for the additional costs pursuant to Article 25. 

676 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

679 renewals thereof, providing for water deliveries from the Project, the Contracting Officer shall make 

680 all reasonable efforts to optimize Project Water deliveries to the Contractor as provided in this 

681 Contract. 
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682 (b) The Contracting Officer or Operating Non-Federal Entity(ies) may 

683 temporarily discontinue or reduce the quantity of Water Delivered to the Contractor as herein 

684 provided for the purposes of investigation, inspection, maintenance, repair, or replacement of any of 

685 the Project facilities or any part thereof necessary for the delivery of Project Water to the 

686 Contractor, but so far as feasible the Contracting Officer or Operating Non-Federal Entity(ies) will 

687 give the Contractor due notice in advance of such temporary discontinuance or reduction, except in 

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

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

690 service after such reduction or discontinuance, and if requested by the Contractor, the United States 

691 will, if possible, deliver the quantity of Project Water which would have been delivered hereunder 

692 in the absence of such discontinuance or reduction. 

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

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

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

696 States any right to seepage or return flow being put to reasonable and beneficial use pursuant to this 

697 Contract within the Contractor’s Service Area by the Contractor or those claiming by, through, or 

698 under the Contractor. 

699 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

701 means to guard against a Condition of Shortage in the quantity of water to be made available to the 

702 Contractor pursuant to this Contract. In the event the Contracting Officer determines that a 

703 Condition of Shortage appears probable, the Contracting Officer will notify the Contractor of said 

704 determination as soon as practicable. 
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705 (b) If there is a Condition of Shortage because of errors in physical operations of 

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

707 taken by the Contracting Officer to meet legal obligations then, except as provided in subdivision 

708 (a) of Article 18 of this Contract, no liability shall accrue against the United States or any of its 

709 officers, agents, or employees for any damage, direct or indirect, arising therefrom. 

710 (c) In any Year in which there may occur a Condition of Shortage for any of the 

711 reasons specified in subdivision (b) of this Article, and subject to subdivision (d) of this Article, the 

712 Contracting Officer will first allocate the available Project Water consistent with the Central Valley 

713 Project M&I Water Shortage Policy in its form on the effective date of this Contract for determining 

714 the amount of Project Water available for delivery to the Project Contractors. Subject to the 

715 foregoing allocation, in any year in which there may occur a Condition of Shortage, the Contracting 

716 Officer shall then apportion Project Water among the Contractor and others entitled to Project 

717 Water from Delta Division Facilities under long-term water service or repayment contracts (or 

718 renewals thereof or binding commitments therefore) in force on February 28, 2005, as follows: 

719 (1) The Contracting Officer shall make an initial and subsequent 

720 determination as necessary of the total quantity of Project Water estimated to be scheduled or 

721 actually scheduled under subdivision (b) of Article 4 of this Contract and under all other long-term 

722 water service or repayment contracts then in force for the delivery of Project Water by the United 

723 States from Delta Division Facilities during the relevant Year, the quantity so determined being 

724 hereinafter referred to as the scheduled total 

725 (2) A determination shall be made of the total quantity of Project Water 

726 that is available for meeting the scheduled total, the quantity so determined being hereinafter 

727 referred to as the available supply; 
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728 (3) The total quantity of Project Water estimated to be scheduled or 

729 actually scheduled by the Contractor during the relevant Year, under subdivision (b) of Article 4 

730 hereof, shall be divided by the scheduled total, the quotient thus obtained being hereinafter referred 

731 to as the Contractor’s proportionate share; and 

732 (4) The available supply shall be multiplied by the Contractor’s 

733 proportionate share and the result shall be the quantity of Project Water made available by the 

734 United States to the Contractor for the relevant Year in accordance with the schedule developed by 

735 the Contracting Officer under subdivision (c)(1) of this Article 12, but in no event shall such 

736 amount exceed the Contract Total. In the event the Contracting Officer subsequently determines 

737 that the Contracting Officer can increase or needs to decrease the available supply for delivery from 

738 Delta Division Facilities to long-term water service and repayment Contractors during the relevant 

739 Year, such additions or reductions to the available supply shall be apportioned consistent with 

740 subparagraphs (1) through (4), inclusive. 

741 (d) By entering into this Contract, the Contractor does not waive any legal rights 

742 or remedies it may have to file or participate in any administrative or judicial proceeding contesting 

743 (i) the sufficiency of the Central Valley Project M&I Water Shortage Policy; (ii) the substance of 

744 such a policy; (iii) the applicability of such a policy; or (iv) the manner in which such policy is 

745 implemented in order to allocate Project Water between municipal and industrial and irrigation 

746 purposes; Provided, That the Contractor has commenced any such judicial challenge or any 

747 administrative procedures necessary to institute any judicial challenge within six months of the 

748 policy becoming final. By agreeing to the foregoing, the Contracting Officer does not waive any 

749 legal defenses or remedies that it may have to assert in such a proceeding. Nothing contained herein 

750 shall be interpreted to validate or invalidate the Central Valley Project M&I Water Shortage Policy. 
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751 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

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

756 RULES AND REGULATIONS

757 14. The parties agree that the delivery of Irrigation Water or use of Federal facilities 

758 pursuant to this Contract is subject to Federal Reclamation law, including but not limited to the 

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

760 rules and regulations promulgated by the Secretary of the Interior under Federal Reclamation law. 

761 WATER AND AIR POLLUTION CONTROL

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

763 and air pollution laws and regulations of the United States and the State of California, and shall 

764 obtain all required permits or licenses from the appropriate Federal, State, or local authorities. 

765 

766 QUALITY OF WATER

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

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

769 to the Contractor in accordance with the water quality standards specified in subsection 2(b) of the 

770 Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of October 27, 1986 (100 

771 Stat. 3050) or other existing Federal laws. The United States is under no obligation to construct or 

772 furnish water treatment facilities to maintain or to improve the quality of Water Delivered to the 

773 Contractor pursuant to this Contract. The United States does not warrant the quality of Water 

774 Delivered to the Contractor pursuant to this Contract. 

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

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

777 level reasonably attainable as determined by the Contracting Officer. The Contractor shall be 
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778 responsible for compliance with all State and Federal water quality standards applicable to surface 

779 and subsurface agricultural drainage discharges generated through the use of Federal or Contractor 

780 facilities or Project Water provided by the Contractor within the Contractor's Service Area. 

781 (c) Omitted. 

782 WATER ACQUIRED BY THE CONTRACTOR

783 OTHER THAN FROM THE UNITED STATES

784 17. (a) Water or water rights now owned or hereafter acquired by the Contractor 

785 other than from the United States and Irrigation Water furnished pursuant to the terms of this 

786 Contract may be simultaneously transported through the same distribution facilities of the 

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

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

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

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

791 Water must be established through the certification requirements as specified in the Acreage 

792 Limitation Rules and Regulations (43 CFR Part 426); (iii) the water requirements of Eligible Lands 

793 within the Contractor's Service Area can be established and the quantity of Irrigation Water to be 

794 utilized is less than or equal to the quantity necessary to irrigate such Eligible Lands; and (iv) if the 

795 facilities utilized for commingling Irrigation Water and non-Project water are/were constructed with 

796 funds made available pursuant to Federal Reclamation law, the non-Project water will be subject to 

797 the acreage limitation provisions of Federal Reclamation law, unless the Contractor pays to the 

798 United States the incremental fee described in 43 CFR 426.15. In determining the incremental fee, 

799 the Contracting Officer will calculate annually the cost to the Federal Government, including 

800 interest of storing or delivering non-Project water, which for purposes of this Contract shall be 

801 determined as follows: The quotient shall be the unpaid distribution system costs divided by the 
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802 total irrigable acreage within the Contractor’s Service Area. The incremental fee per acre is the 

803 mathematical result of such quotient times the interest rate determined using Section 202 (3) of the 

804 Act of October 12, 1982 (96 Stat. 1263). Such incremental fee will be charged to each acre of 

805 excess or full cost land within the Contractor’s Service Area that receives non-Project water through 

806 Federally financed or constructed facilities. The incremental fee calculation methodology will 

807 continue during the term of this Contract absent the promulgation of a contrary Reclamation-wide 

808 rule, regulation, or policy adopted after the Contractor has been afforded the opportunity to review 

809 and comment on the proposed rule, regulation, or policy. If such rule, regulation, or policy is 

810 adopted it shall supersede this provision. 

811 (b) Water or water rights now owned or hereafter acquired by the Contractor, 

812 other than from the United States may be stored, conveyed, and/or diverted through Project 

813 facilities, subject to the completion of appropriate environmental documentation, with the approval 

814 of the Contracting Officer and the execution of any contract determined by the Contracting Officer 

815 to be necessary, consistent with the following provisions: 

816 (1) The Contractor may introduce non-Project water into Project facilities 

817 and deliver said water to lands within the Contractor’s Service Area, including Ineligible Lands, 

818 subject to payment to the United States and/or to any applicable Operating Non-Federal Entity of an 

819 appropriate rate as determined by the applicable Project ratesetting policy, the RRA, and the Project 

820 use power policy, if such Project use power policy is applicable, each as amended, modified, or 

821 superseded from time to time. 

822 (2) Delivery of such non-Project water in and through Project facilities 

823 shall only be allowed to the extent such deliveries do not: (i) interfere with other Project purposes 

824 as determined by the Contracting Officer; (ii) reduce the quantity or quality of water available to 
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825 other Project Contractors; (iii) interfere with the delivery of contractual water entitlements to any 

826 other Project Contractors; or (iv) interfere with the physical maintenance of the Project facilities. 

827 (3) Neither the United States nor the Operating Non-Federal Entity(ies) 

828 shall be responsible for control, care or distribution of the non-Project water before it is introduced 

829 into or after it is delivered from the Project facilities. The Contractor hereby releases and agrees to 

830 defend and indemnify the United States and the Operating Non-Federal Entity(ies), and their 

831 respective officers, agents, and employees, from any claim for damage to persons or property, direct 

832 or indirect, resulting from the act(s) of the Contractor, its officers, employees, agents, or assigns, in 

833 (i) extracting or diverting non-Project water from any source, or (ii) diverting such non-Project 

834 water into Project facilities. 

835 (4) Diversion of such non-Project water into Project facilities shall be 

836 consistent with all applicable laws, and if involving groundwater, consistent with any applicable 

837 groundwater management plan for the area from which it was extracted. 

838 (5) After Project purposes are met, as determined by the Contracting 

839 Officer, the United States and Project Contractors entitled to Project Water from Delta Division 

840 Facilities shall share priority to utilize the remaining capacity of the facilities declared to be 

841 available by the Contracting Officer for conveyance and transportation of non-Project water prior to 

842 any such remaining capacity being made available to non-Project contractors. Other Project 

843 Contractors shall have a second priority to any remaining capacity of facilities declared to be 

844 available by the Contracting Officer for conveyance and transportation of non-Project water prior to 

845 any such remaining capacity being made available to non-Project contractors. 
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846 OPINIONS AND DETERMINATIONS

847 18. (a) Where the terms of this Contract provide for actions to be based upon the 

848 opinion or determination of either party to this Contract, said terms shall not be construed as 

849 permitting such action to be predicated upon arbitrary, capricious, or unreasonable opinions or 

850 determinations. Both parties, notwithstanding any other provisions of this Contract, expressly 

851 reserve the right to seek relief from and appropriate adjustment for any such arbitrary, capricious, or 

852 unreasonable opinion or determination. Each opinion or determination by either party shall be 

853 provided in a timely manner. Nothing in this subdivision (a) of this Article is intended to or shall 

854 affect or alter the standard of judicial review applicable under Federal law to any opinion or 

855 determination implementing a specific provision of Federal law embodied in statute or regulation.

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

857 necessary to administer this Contract that are consistent with the provisions of this Contract, the 

858 laws of the United States and of the State of California, and the rules and regulations promulgated 

859 by the Secretary of the Interior. Such determinations shall be made in consultation with the 

860 Contractor to the extent reasonably practicable. 

861 COORDINATION AND COOPERATION

862 19. (a) In order to further their mutual goals and objectives, the Contracting Officer 

863 and the Contractor shall communicate, coordinate, and cooperate with each other, and with other 

864 affected Project Contractors, in order to improve the operation and management of the Project. The 

865 communication, coordination, and cooperation regarding operations and management shall include, 

866 but not be limited to, any action which will or may materially affect the quantity or quality of 

867 Project Water supply, the allocation of Project Water supply, and Project financial matters 

868 including, but not limited to, budget issues. The communication, coordination, and cooperation 
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869 provided for hereunder shall extend to all provisions of this Contract. Each party shall retain 

870 exclusive decision making authority for all actions, opinions, and determinations to be made by the 

871 respective party. 

872 (b) Within 120 days following the effective date of this Contract, the Contractor, 

873 other affected Project Contractors, and the Contracting Officer shall arrange to meet with interested 

874 Project Contractors to develop a mutually agreeable, written Project-wide process, which may be 

875 amended as necessary separate and apart from this Contract. The goal of this process shall be to 

876 provide, to the extent practicable, the means of mutual communication and interaction regarding 

877 significant decisions concerning Project operation and management on a real-time basis. 

878 (c) In light of the factors referred to in subdivision (b) of Article 3 of this 

879 Contract, it is the intent of the Secretary to improve water supply reliability. To carry out this 

880 intent: 

881 (1) The Contracting Officer will, at the request of the Contractor, assist in 

882 the development of integrated resource management plans for the Contractor. Further, the 

883 Contracting Officer will, as appropriate, seek authorizations for implementation of partnerships to 

884 improve water supply, water quality, and reliability. 

885 (2) The Secretary will, as appropriate, pursue program and project 

886 implementation and authorization in coordination with Project Contractors to improve the water 

887 supply, water quality, and reliability of the Project for all Project purposes. 

888 (3) The Secretary will coordinate with Project Contractors and the State 

889 of California to seek improved water resource management. 

890 (4) The Secretary will coordinate actions of agencies within the 

891 Department of the Interior that may impact the availability of water for Project purposes. 
Contract No. 14-06-200-785-LTR1 

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892 (5) The Contracting Officer shall periodically, but not less than annually, 

893 hold division level meetings to discuss Project operations, division level water management 

894 activities, and other issues as appropriate. 

895 (d) Without limiting the contractual obligations of the Contracting Officer under 

896 the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 

897 Contracting Officer’s ability to communicate, coordinate, and cooperate with the Contractor or 

898 other interested stakeholders or to make decisions in a timely fashion as needed to protect health, 

899 safety or the physical integrity of structures or facilities. 

900 CHARGES FOR DELINQUENT PAYMENTS

901 20. (a) The Contractor shall be subject to interest, administrative and penalty charges 

902 on delinquent installments or payments. When a payment is not received by the due date, the 

903 Contractor shall pay an interest charge for each day the payment is delinquent beyond the due date. 

904 When a payment becomes sixty (60) days delinquent, the Contractor shall pay an administrative 

905 charge to cover additional costs of billing and processing the delinquent payment. When a payment 

906 is delinquent ninety (90) days or more, the Contractor shall pay an additional penalty charge of six 

907 (6%) percent per year for each day the payment is delinquent beyond the due date. Further, the 

908 Contractor shall pay any fees incurred for debt collection services associated with a delinquent 

909 payment. 

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

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

912 interest rate of one-half of one (0.5%) percent per month prescribed by Section 6 of the Reclamation 

913 Project Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due 

914 date and remain fixed for the duration of the delinquent period. 

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

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

917 accrued interest, and finally to the overdue payment. 

918 EQUAL OPPORTUNITY

919 21. During the performance of this Contract, the Contractor agrees as follows: 

920 (a) The Contractor will not discriminate against any employee or applicant for 

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

922 affirmative action to ensure that applicants are employed, and that employees are treated during 

923 employment, without regard to their race, color, religion, sex, or national origin. Such action shall 
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924 include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

925 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

926 compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

927 conspicuous places, available to employees and applicants for employment, notices to be provided 

928 by the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

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

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

931 for employment without discrimination because of race, color, religion, sex, or national origin. 

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

933 with which it has a collective bargaining agreement or other contract or understanding, a notice, to 

934 be provided by the Contracting Officer, advising the said labor union or workers' representative of 

935 the Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, 

936 and shall post copies of the notice in conspicuous places available to employees and applicants for 

937 employment. 

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

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

940 the Secretary of Labor. 

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

942 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

943 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

944 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with such 

945 rules, regulations, and orders. 

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

947 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

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

949 ineligible for further Government contracts in accordance with procedures authorized in said 

950 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

951 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

952 otherwise provided by law. 

953 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

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

955 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

956 provisions will be binding upon each subcontractor or vendor. The Contractor will take such action 

957 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

958 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

959 That in the event the Contractor becomes involved in, or is threatened with, litigation with a 

960 subcontractor or vendor as a result of such direction, the Contractor may request the United States 

961 to enter into such litigation to protect the interests of the United States. 
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962 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

963 22. (a) The obligation of the Contractor to pay the United States as provided in this 

964 Contract is a general obligation of the Contractor notwithstanding the manner in which the 

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

966 individual water users in their obligations to the Contractor. 

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

968 receiving benefits under this Contract. The United States shall not make water available to the 

969 Contractor through Project facilities during any period in which the Contractor may be in arrears in 

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

971 made available pursuant to this Contract for lands or parties which are in arrears in the advance 

972 payment of water rates levied or established by the Contractor. 

973 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

974 obligation to require advance payment for water rates which it levies. 

975 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

977 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

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

979 as well as with their respective implementing regulations and guidelines imposed by the U.S. 

980 Department of the Interior and/or Bureau of Reclamation. 

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

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

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

984 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

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

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

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

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

989 financial assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, 

990 including installment payments after such date on account of arrangements for Federal financial 

991 assistance which were approved before such date. The Contractor recognizes and agrees that such 

992 Federal assistance will be extended in reliance on the representations and agreements made in this 

993 Article, and that the United States reserves the right to seek judicial enforcement thereof. 

994 PRIVACY ACT COMPLIANCE

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

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

997 seq.) in maintaining Landholder acreage certification and reporting records, required to be 
Contract No. 14-06-200-785-LTR1 

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998 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation Reform 

999 Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

1000 (b) With respect to the application and administration of the criminal penalty 

1001 provisions of the Act (5 U.S.C. 552a(i)), the Contractor and the Contractor's employees responsible 

1002 for maintaining the certification and reporting records referenced in (a) above are considered to be 

1003 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

1004 (c) The Contracting Officer or a designated representative shall provide the 

1005 Contractor with current copies of the Interior Department Privacy Act regulations and the Bureau of 

1006 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

1007 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

1008 contained in the Landholder's certification and reporting records. 

1009 (d) The Contracting Officer shall designate a full-time employee of the Bureau of 

1010 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

1011 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

1012 authorized to grant requests by individuals for access to their own records. 

1013 (e) The Contractor shall forward promptly to the System Manager each proposed 

1014 denial of access under 43 CFR 2.64; and each request for amendment of records filed under 43 CFR 

1015 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

1016 information and records necessary to prepare an appropriate response to the requester. These 

1017 requirements do not apply to individuals seeking access to their own certification and reporting 

1018 forms filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the 

1019 Privacy Act as a basis for the request. 

1020 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1021 25. In addition to all other payments to be made by the Contractor pursuant to this 

1022 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1023 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

1024 direct cost incurred by the United States for work requested by the Contractor associated with this 

1025 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 

1026 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

1027 writing in advance by the Contractor. This Article shall not apply to costs for routine contract 

1028 administration. 
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1029 WATER CONSERVATION

1030 26. (a) Prior to the delivery of water provided from or conveyed through Federally 

1031 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

1032 implementing an effective water conservation and efficiency program based on the Contractor's 

1033 water conservation plan that has been determined by the Contracting Officer to meet the 

1034 conservation and efficiency criteria for evaluating water conservation plans established under 

1035 Federal law. The water conservation and efficiency program shall contain definite water 

1036 conservation objectives, appropriate economically feasible water conservation measures, and time 

1037 schedules for meeting those objectives. Continued Project Water delivery pursuant to this Contract 

1038 shall be contingent upon the Contractor’s continued implementation of such water conservation 

1039 program. In the event the Contractor's water conservation plan or any revised water conservation 

1040 plan completed pursuant to subdivision (d) of Article 26 of this Contract have not yet been 

1041 determined by the Contracting Officer to meet such criteria, due to circumstances which the 

1042 Contracting Officer determines are beyond the control of the Contractor, water deliveries shall be 

1043 made under this Contract so long as the Contractor diligently works with the Contracting Officer to 

1044 obtain such determination at the earliest practicable date, and thereafter the Contractor immediately 

1045 begins implementing its water conservation and efficiency program in accordance with the time 

1046 schedules therein. 

1047 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1048 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

1049 the Best Management Practices identified by the time frames issued by the California Urban Water 

1050 Conservation Council for such M&I Water unless any such practice is determined by the 

1051 Contracting Officer to be inappropriate for the Contractor. 
Contract No. 14-06-200-785-LTR1 

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1052 (c) The Contractor shall submit to the Contracting Officer a report on the status 

1053 of its implementation of the water conservation plan on the reporting dates specified in the then 

1054 existing conservation and efficiency criteria established under Federal law. 

1055 (d) At five-year intervals, the Contractor shall revise its water conservation plan 

1056 to reflect the then current conservation and efficiency criteria for evaluating water conservation 

1057 plans established under Federal law and submit such revised water management plan to the 

1058 Contracting Officer for review and evaluation. The Contracting Officer will then determine if the 

1059 water conservation plan meets Reclamation’s then current conservation and efficiency criteria for 

1060 evaluating water conservation plans established under Federal law. 

1061 (e) If the Contractor is engaged in direct groundwater recharge, such activity 

1062 shall be described in the Contractor’s water conservation plan. 

1063 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1064 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

1065 Contract shall not be applicable to or affect non-project water or water rights now owned or 

1066 hereafter acquired by the Contractor or any user of such water within the Contractor's Service Area. 

1067 Any such water shall not be considered Project Water under this Contract. In addition, this Contract 

1068 shall not be construed as limiting or curtailing any rights which the Contractor or any water user 

1069 within the Contractor's Service Area acquires or has available under any other contract pursuant to 

1070 Federal Reclamation law. 

1071 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

1072 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1073 and responsibility for funding a portion of the costs of such O&M, have been transferred to the San 

1074 Luis & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement 
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1075 (8-07-20-X0354) between the United States and the Operating Non-Federal Entity San Luis 

1076 & Delta-Mendota Water Authority. That separate agreement shall not interfere with or affect the 

1077 rights or obligations of the Contractor or the United States hereunder. 

1078 (b) The Contracting Officer has previously notified the Contractor in writing that 

1079 the Operation and Maintenance of a portion of the Project facilities which serve the Contractor has 

1080 been transferred to the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, 

1081 and therefore, the Contractor shall pay directly to the Operating Non-Federal Entity San Luis & 

1082 Delta-Mendota Water Authority, or to any successor approved by the Contracting Officer under the 

1083 terms and conditions of the separate agreement between the United States and the Operating Non1084 Federal Entity San Luis & Delta-Mendota Water Authority described in subdivision (a) of this 

1085 Article, all rates, charges, or assessments of any kind, including any assessment for reserve funds, 

1086 which the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority or such 

1087 successor determines, sets, or establishes for the O&M of the portion of the Project facilities 

1088 operated and maintained by the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1089 Authority or such successor. Such direct payments to the Operating Non-Federal Entity San Luis & 

1090 Delta-Mendota Water Authority or such successor shall not relieve the Contractor of its obligation 

1091 to pay directly to the United States the Contractor’s share of the Project Rates, Charges, and Tiered 

1092 Pricing Component except to the extent the Operating Non-Federal Entity San Luis & Delta1093 Mendota Water Authority collects payments on behalf of the United States in accordance with the 

1094 separate agreement identified in subdivision (a) of this Article. 

1095 (c) For so long as the O&M of any portion of the Project facilities serving the 

1096 Contractor is performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1097 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 
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1098 Rates for Water Delivered under this Contract representing the cost associated with the activity 

1099 being performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority 

1100 or its successor. 

1101 (d) In the event the O&M of the Project facilities operated and maintained by the 

1102 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

1103 United States during the term of this Contract, the Contracting Officer shall so notify the 

1104 Contractor, in writing, and present to the Contractor a revised Exhibit “B” which shall include the 

1105 portion of the Rates to be paid by the Contractor for Project Water under this Contract representing 

1106 the O&M costs of the portion of such Project facilities which have been re-assumed. The 

1107 Contractor shall, thereafter, in the absence of written notification from the Contracting Officer to the 

1108 contrary, pay the Rates, Charges, and Tiered Pricing Component specified in the revised Exhibit 

1109 “B” directly to the United States in compliance with Article 7 of this Contract. 

1110 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1111 29. The expenditure or advance of any money or the performance of any obligation of 

1112 the United States under this Contract shall be contingent upon appropriation or allotment of funds. 

1113 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

1114 under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

1115 or allotted. 

1116 BOOKS, RECORDS, AND REPORTS

1117 30. (a) The Contractor shall establish and maintain accounts and other books and 

1118 records pertaining to administration of the terms and conditions of this Contract, including: the 

1119 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1120 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

1121 data; and other matters that the Contracting Officer may require. Reports thereon shall be furnished 

1122 to the Contracting Officer in such form and on such date or dates as the Contracting Officer may 

1123 require. Subject to applicable Federal laws and regulations, each party to this Contract shall have 

1124 the right during office hours to examine and make copies of the other party's books and records 

1125 relating to matters covered by this Contract. 
Contract No. 14-06-200-785-LTR1 

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1126 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

1127 records, or other information shall be requested from the Contractor by the Contracting Officer 

1128 unless such books, records, or information are reasonably related to the administration or 

1129 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1130 time within which to provide the requested books, records, or information. 

1131 (c) At such time as the Contractor provides information to the Contracting 

1132 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided to 

1133 the Operating Non-Federal Entity. 

1134 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1135 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1136 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1137 therein shall be valid until approved in writing by the Contracting Officer. 

1138 (b) The assignment of any right or interest in this Contract by either party shall 

1139 not interfere with the rights or obligations of the other party to this Contract absent the written 

1140 concurrence of said other party. 

1141 (c) The Contracting Officer shall not unreasonably condition or withhold 

1142 approval of any proposed assignment. 

1143 SEVERABILITY

1144 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1145 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1146 association or other form of organization whose primary function is to represent parties to Project 

1147 contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1148 enforceability of a provision included in this Contract and said person, entity, association, or 

1149 organization obtains a final court decision holding that such provision is legally invalid or 
Contract No. 14-06-200-785-LTR1 

49

1150 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

1151 parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

1152 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

1153 within three months thereafter promptly agree on the appropriate revision(s). The time periods 

1154 specified above may be extended by mutual agreement of the parties. Pending the completion of 

1155 the actions designated above, to the extent it can do so without violating any applicable provisions 

1156 of law, the United States shall continue to make the quantities of Project Water specified in this 

1157 Contract available to the Contractor pursuant to the provisions of this Contract which were not 

1158 found to be legally invalid or unenforceable in the final court decision. 

1159 RESOLUTION OF DISPUTES

1160 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

1161 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

1162 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

1163 any matter to the Department of Justice, the party shall provide to the other party 30 days’ written 

1164 notice of the intent to take such action; Provided, That such notice shall not be required where a 

1165 delay in commencing an action would prejudice the interests of the party that intends to file suit. 

1166 During the 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in 

1167 an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

1168 waive or abridge any right or remedy that the Contractor or the United States may have. 

1169 OFFICIALS NOT TO BENEFIT

1170 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1171 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1172 manner as other water users or landowners. 
Contract No. 14-06-200-785-LTR1 

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1173 CHANGES IN CONTRACTOR’S SERVICE AREA

1174 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

1175 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

1176 except upon the Contracting Officer's written consent. 

1177 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1178 Officer will notify the Contractor of any additional information required by the Contracting Officer 

1179 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1180 timely completion of the process. Such process will analyze whether the proposed change is likely 

1181 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability 

1182 of the Contractor to pay for Project Water furnished under this Contract or to pay for any Federally1183 constructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

1184 Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply 

1185 with the NEPA and the ESA. The Contractor will be responsible for all costs incurred by the 

1186 Contracting Officer in this process, and such costs will be paid in accordance with Article 25 of this 

1187 Contract.

1188 FEDERAL LAWS

1189 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1190 validity or application in connection with the performance of the terms and conditions of this 

1191 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

1192 terms and conditions of this Contract unless and until relief from application of such Federal law or 

1193 regulation to the implementing provision of the Contract is granted by a court of competent 

1194 jurisdiction. 

1195 NOTICES

1196 37. Any notice, demand, or request authorized or required by this Contract shall be 

1197 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 
Contract No. 14-06-200-785-LTR1 

51

1198 to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, California 

1199 93721, and on behalf of the United States, when mailed, postage prepaid, or delivered to the Board 

1200 of Directors of the Byron-Bethany Irrigation District, P. O. Box 160, Byron, California 94514. The 

1201 designation of the addressee or the address may be changed by notice given in the same manner as 

1202 provided in this Article for other notices. 

1203 CONFIRMATION OF CONTRACT

1204 38. The Contractor, after the execution of this Contract, shall promptly seek to secure a 

1205 decree of a court of competent jurisdiction of the State of California, confirming the execution of 

1206 this Contract. The Contractor shall furnish the United States a certified copy of the final decree, the 

1207 validation proceedings, and all pertinent supporting records of the court approving and confirming 

1208 this Contract, and decreeing and adjudging it to be lawful, valid, and binding on the Contractor. 
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1209 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

1210 year first above written. 

1211 THE UNITED STATES OF AMERICA 

1212 By: ________________________________________ 

1213 Regional Director, Mid-Pacific Region 

1214 Bureau of Reclamation 

1215 (SEAL) 

1216 BYRON-BETHANY IRRIGATION DISTRICT 

1217 By: ________________________________________ 

1218 President of the Board of Directors 

1219 Attest: 

1220 By: _______________________________ 

1221 Secretary of the Board of Directors 

1222 (H:\pub 440\LTRC\Final Draft LTRC’s – Fresno, Tracy\09-29-04 Byron Bethany WD Final Draft 

1223 LTRC with exhibits.doc)
Contract No. 14-06-200-785-LTR1 

EXHIBIT A

[Map or Description of Service Area] 
Contract No. 14-06-200-785-LTR1 

EXHIBIT B

BYRON BETHANY IRRIGATION DISTRICT

Water Rates and Charges

Note: Rates and Charges are 2004 rates. This exhibit will be updated prior to execution of the 

 Contract to reflect current Rates and Charges. 

2004 Rates per Acre-Foot Irrigation M&I COST-OF-SERVICE RATES: Water Water 

Capital Rates $10.41 $14.44 

O&M Rates: 

Water Marketing 7.59 5.01 

Storage 5.83 6.38 

Conveyance 

Conveyance Pumping 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing 

CFO/PFR Adj. Rate 1/ 1.61 1.46

TOTAL COST-OF-SERVICE-RATES 25.44 27.30

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. $38.57 

Section 205(a)(3) Rate is 

 applicable to a Limited Recipient that 

 did not receive irrigation water on or before October 1, 1981. $46.56 

CHARGES UNDER P.L. 102-575 TO RESTORATION FUND 2/ 

 Restoration Payments (3407(d)(2)(A)) $ 7.82 $15.64 

1/ Rate represents Chief Financial Officers (CFO) adjustment and Provision for Replacement 

(PFR) credit for option 2 cost deferment to be distributed over 5-year period beginning with 2003 

water rates. 

 

2/ Restoration fund charges are payments in addition to the water rates and were determined 

pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges are on a fiscal year basis 

(10/1-9/30).