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AGREEMENT ON WATER QUANTITIES

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

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

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

and Project Water which may be diverted by the Contractor from the Sacramento River 

for beneficial use on the land shown on Exhibit B which said diversion, use, and 

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

hereunder; 

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

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

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

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

person other than the Contractor: Provided, however, That in the event the Contractor, 

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

rights to the use of water of the Sacramento River system, this Settlement Contract shall 

not jeopardize the rights or position of either party hereto or of any other person and the 

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

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

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

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

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

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

impasse, employ the services of a neutral mediator, experienced in resolving water rights 
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disputes, to assist in resolving the impasse. The cost of the mediation will be shared 

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

mediation will cause the immediate termination of this Settlement Contract.; Provided, 

further, that if the California State Water Resources Control Board or a court of 

competent jurisdiction issues a decision modifying the terms and conditions of the water 

rights of either party to this Settlement Contract, the Contractor and the United States 

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

Settlement Contract to comply with such final decision. If within 60 days of the date of 

the issuance of such final decision the parties are not able to reach agreement regarding 

either the need to modify this Settlement Contract or the manner in which this Settlement 

Contract is to be modified the parties shall promptly retain a neutral mediator, 

experienced in resolving water right disputes, to assist the parties in resolving their 

dispute. The cost of the mediator shall be shared equally. In the event that either of the 

parties to this Settlement Contract determines that the parties will not be able to develop 

mutually-agreeable modification(s) to this Settlement Contract even with the assistance 

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

impasse by seeking appropriate judicial relief including, but not limited to filing a general 

adjudication of the rights to the use of water in the Sacramento River system, or may 

provide notice to the other party of that party’s intent to terminate this Settlement 

Contract effective the following October 31st, if said notice is given during the period 

April 1 through August 31, or 60 days from the date of the notice if said notice is given 

between September 1 and March 31; Provided, further That the immediately preceding 

proviso shall not apply if a final decision of the California State Water Resources 
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Control Board or a court of competent jurisdiction requires the United States to continue 

to implement State Water Resources Control Board’s Revised Water Right Decision 

1641, dated March 15, 2000 or its associated 1995 Water Quality Control Plan, as they 

are currently written 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

under water rights owned by it.