AG and M&I 

T.O. Draft 10/19-2004 

T.O. Draft 10/14-2004 

T.O. Draft 09/22-2004 

T.O. Draft 08/02-2004 

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. 

 14-06-200-3365A-C-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

WESTLANDS WATER DISTRICT

DISTRIBUTION DISTRICT NO. 2

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.........................................................21-27 

 8 Non-Interest Bearing Operation and Maintenance Deficits.................................. 27 

 9 Sales, Transfers, or Exchanges of Water .........................................................27-29 

 10 Application of Payments and Adjustments........................................................... 29 

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

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

 13 Unavoidable Groundwater Percolation................................................................. 33 

 14 Rules and Regulations........................................................................................... 33 

 15 Water and Air Pollution Control........................................................................... 33 

 16 Quality of Water .............................................................................................. 33-34 

 17 Water Acquired by the Contractor Other Than From the United States..........34-37 

 18 Opinions and Determinations ............................................................................... 37 
Contract No. 14-06-200-3365A-C-LTR1

Table of Contents - continued

Article No. Title Page No.

 19 Coordination and Cooperation......................................................................... 37-39 

 20 Charges for Delinquent Payments ........................................................................ 39 

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

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 41 

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

 24 Privacy Act Compliance ....................................................................................... 42 

 25 Contractor to Pay Certain Miscellaneous Costs............................................... 42-43 

 26 Water Conservation .........................................................................................43-44 

 27 Existing or Acquired Water or Water Rights........................................................ 44 

 28 Operation and Maintenance by San Luis & Delta-Mendota 

 Water Authority ..........................................................................................45-46 

 28.1 Operation and Maintenance by California Department of Water Resources .. 46-48 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 48 

 30 Books, Records, and Reports........................................................................... 48-49 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 49 

 32 Severability ......................................................................................................49-50 

 33 Resolution of Disputes.......................................................................................... 50 

 34 Officials Not to Benefit......................................................................................... 50 

 35 Changes in Contractor’s Service Area.................................................................. 51 

 36 Federal Laws......................................................................................................... 51 

 37 Notices ...............................................................................................................51-5 

 38 Confirmation of Contract...................................................................................... 52 

 Signature Page ...................................................................................................... 53 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
T.O. Draft 10/19-2004 

T.O. Draft 10/14-2004 

T.O. Draft 09/22-2004 

T.O. Draft 08/02-2004 

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. 

 14-06-200-3365A-C-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 WESTLANDS WATER DISTRICT

8 DISTRIBUTION DISTRICT NO. 2

9 PROVIDING FOR PROJECT WATER SERVICE

10 FROM THE DELTA DIVISION

 THIS CONTRACT, made this 11 _____ day of ____________________, 2005, in pursuance 

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

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

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

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

16 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all 

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

18 OF AMERICA, hereinafter referred to as the United States, and WESTLANDS WATER 

19 DISTRICT DISTRIBUTION DISTRICT NO. 2, hereinafter referred to as the Contractor, a public 

20 agency of the State of California, duly organized, existing, and acting pursuant to the laws thereof; 

21 WITNESSETH, That: 
Contract No. 14-06-200-3365A-C-LTR1

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22 EXPLANATORY RECITALS

 [1st 23 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

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

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

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

28 San Joaquin River and their tributaries; and 

 [2nd 29 ] WHEREAS, the United States constructed the Delta-Mendota Canal and related 

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

31 terms of this Contract; and 

 [3rd 32 ] WHEREAS, the rights to Project Water were acquired by the United States pursuant 

33 to California law for operation of the Project; and 

 [4th 34 ] WHEREAS, Mercy Springs Water District (MSWD) and the United States entered 

35 into Contract No. 14-06-200-3365A, which established terms for the delivery to MSWD of Project 

36 Water from the Delta Division Facilities from June 21, 1967 through February 28, 1995; and 

 [5th 37 ] WHEREAS, MSWD and the United States have pursuant to subsection 3404(c)(1) 

38 of the Central Valley Project Improvement Act (CVPIA), subsequently entered into interim renewal 

39 contract(s) identified as Contract No(s). 14-06-200-3365A-IR1, 14-06-200-3365A-IR2, 14-06-200-

40 3365A-IR3-A, 14-06-200-3365A-IR4-A, 14-06-200-3365A-IR5-A, 14-06-200-3365A-IR6-A, and 

41 14-06-200-3365A-IR7-A, which provided for the continued water service to the Contractor from 

42 March 1, 1995 through February 28, 2004; and 

43 [5.1] WHEREAS, during the term of Contract No. 14-06-200-3365A-IR7-A and 

44 following approval of the United States, MSWD assigned to the Contractor on March 1, 2003, the 
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45 right, title and interest in and to that portion of Contract No. 14-06-200-3365A-IR7-A consisting of 

46 4,198 acre-feet of Project Water together with any rights to renew that partial interest in Contract 

47 No. 14-02-200-3365A-IR7-A; and 

48 [5.2] WHEREAS, the Contractor and the United States have subsequent to the assignment 

49 entered into a sequential interim renewal contract identified as Contract No. 14-06-200-3365A-IR8-

50 C, hereinafter referred to as the Existing Contract, consistent with the partial assignment, to provide 

51 for continued delivery of Project Water to the Contractor from March 1, 2004 through February 28, 

52 2006; and 

 [6th 53 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

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

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

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

 [7th 58 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 60 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 63 ] WHEREAS, the United States has determined that the Contractor has fulfilled all of 

64 its obligations under the Existing Contract; and 

 [10th 65 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the Contracting 

66 Officer that the Contractor has utilized the Project Water supplies available to it for reasonable and 
Contract No. 14-06-200-3365A-C-LTR1

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67 beneficial use and expects to utilize fully for reasonable and beneficial use the quantity of Project 

68 Water to be made available to it pursuant to this Contract; and 

 [11th 69 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

71 an essential portion of its water supply; and 

 [12th 72 ] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

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

 [13th 74 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

76 Project for all Project purposes; and 

 [14th 77 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

82 relative to the Project; and 

 [15th 83 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

84 relationship in order to achieve their mutual goals; and 

85 [15.1] WHEREAS, the Contractor has utilized or may utilize transfers, contract 

86 assignments, rescheduling and conveyance of Project Water and non-Project water under this 

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

88 use of water; and 
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89 [15.2] WHEREAS, the parties desire and intend that this Contract not provide a disincentive 

90 to the Contractor in continuing to carry out the beneficial activities set out in the Explanatory 

91 Recital immediately above; and 

 [16th 92 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

96 DEFINITIONS

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

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

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

100 dates inclusive; 

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

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

103 annually by the Contracting Officer pursuant to this Contract; 

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

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

106 Total; 

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

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

109 regulation; 

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

111 Contractor is entitled under subdivision (a) of Article 3 of this Contract; 
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112 (f) “Contractor's Service Area” shall mean the area to which the Contractor is 

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

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

115 amendment of this Contract; 

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

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

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

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

120 Tracy Pumping Plant, the O’Neill Pumping/Generating Plant, and the San Luis Reservoir, used to 

121 divert, store and convey water to those Project Contractors entitled to receive water conveyed 

122 through the Delta-Mendota Canal; 

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

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

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

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

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

128 Reclamation law; 

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

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

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

132 funded, less payments, over such periods as may be required under Federal Reclamation law, or 

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

134 funded O&M deficits from October 12, 1982, on costs outstanding at that date, or from the date 
Contract No. 14-06-200-3365A-C-LTR1

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

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

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

138 Regulations for the RRA; 

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

140 delivered in accordance with Section 204 of the RRA; 

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

142 the delivery of Irrigation Water; 

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

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

145 thereto, and watering of livestock; 

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

147 nonexempt land, as provided in 43 CFR 426.2; 

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

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

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

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

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

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

154 Article; 

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

156 delivery of M&I Water; 

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

158 control, operation, repair, replacement (other than capital replacement), and maintenance of Project 

159 facilities; 

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

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

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

163 Contract was entered into, the Operating Non-Federal Entities were the San Luis & Delta-Mendota 

164 Water Authority, and with respect to the San Luis Unit facilities, the California Department of 

165 Water Resources; 

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

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

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

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

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

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

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

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

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

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

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

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

178 preceding contract(s); 
Contract No. 14-06-200-3365A-C-LTR1

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

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

181 through any agency of the Department of the Interior; 

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

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

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

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

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

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

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

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

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

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

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

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

194 TERM OF CONTRACT

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

196 and supercedes the Existing Contract. In the event the Contractor wishes to renew this Contract 

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

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

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

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

201 the furnishing of M&I Water to the Contractor shall be governed by subdivision (c) of this Article. 
Contract No. 14-06-200-3365A-C-LTR1

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

224 without limitation, the Contractor’s need for continued delivery of Project Water; environmental 
Contract No. 14-06-200-3365A-C-LTR1

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

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

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

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

229 served by the Contractor. 

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

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

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

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

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

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

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

237 years. 

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

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

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

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

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

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

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

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

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

1956 (70 Stat. 483). The Contracting Officer anticipates that during the term of this Contract, all 
Contract No. 14-06-200-3365A-C-LTR1

12

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

to permit, upon request of the Contractor and satisfaction of the condition set out above, conversion 

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

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

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

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

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

subdivision. 

238 
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239 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

242 Contract, the Contracting Officer shall make available for delivery to the Contractor 4,198 acre-feet 

243 of Project Water for irrigation and M&I purposes. Water Delivered to the Contractor in accordance 

244 with this subdivision shall be scheduled and paid for pursuant to the provisions of Articles 4 and 7 

245 of this Contract. 

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

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

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

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

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

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

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

253 the Contractor was 2,762 acre-feet. Nothing in subdivision (b) of this Article shall affect the rights 

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

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

256 applicable legal requirements. 

257 (1) In the event any Project Contractor (other than a Cross Valley 

258 Contractor) that receives Project Water through the Delta Division Facilities obtains a contractual 

259 agreement that the Contracting Officer shall make Project Water available at a point or points of 

260 delivery in or north of the Delta, at the request of the Contractor and upon completion of any 

261 required environmental documentation, this Contract shall be amended to provide for deliveries in 
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262 or north of the Delta on mutually agreeable terms. Such amendments to the Contract shall be 

263 limited solely to those changes made necessary by the addition of such alternate points of delivery 

264 in or north of the Delta; Provided, That the Contracting Officer’s use of the Harvey O. Banks 

265 Pumping Plant to deliver Project Water does not trigger this right of amendment. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

284 Contract undertaken pursuant to Section 7 of the Endangered Species Act of 1973 (ESA), as 
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285 amended, that are within the Contractor’s legal authority to implement. The Existing Contract, 

286 which evidences in excess of 37 years of diversions for irrigation and/or M&I purposes of the 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

306 including Project Water made available pursuant to Section 215 of the RRA. 
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307 (g) The Contractor may request permission to reschedule for use during the 

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

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

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

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

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

313 policies. 

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

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

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

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

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

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

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

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

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

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

324 conditions of such approval. 

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

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

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

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

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

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

332 TIME FOR DELIVERY OF WATER

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

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

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

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

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

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

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

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

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

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

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

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

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

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

347 for the Year commencing on such March 1. 

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

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

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

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

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

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

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

356 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

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

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

360 by the Contracting Officer and the Contractor. 

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

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

363 maintain sufficient flows and levels of water in Project facilitiesto deliver Project Water to the 

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

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

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

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

368 approved in advance by the Contracting Officer. 

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

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

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

372 Non-Federal Entity(ies), unless undertaken by the Contractor with the consent of the Contracting 

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

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

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

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

378 consult with the Contractor and the appropriate Operating Non-Federal Entity(ies), if any, prior to 

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

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

381 Contracting Officer nor any Operating Non-Federal Entity(ies) shall be responsible for the control, 

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

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

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

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

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

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

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

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

390 Operating Non-Federal Entity(ies), with the intent of creating the situation resulting in any damage 

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

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

393 Officer or any of its officers, employees, agents, and assigns including the Operating Non-Federal 

394 Entity(ies); or (iv) a malfunction of facilities owned and/or operated by the United States or the 

395 Operating Non-Federal Entity(ies). 

396 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

427 (a) of this Article. 

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

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

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

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

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

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

434 (e) The Contractor shall inform the Contracting Officer and the Operating Non435 Federal Entity on or before the 20th calendar day of each month of the quantity of Irrigation Water 

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

437 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

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

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

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

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

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

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

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

449 Tiered Pricing Component as follows: 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

486 delivered by the last day of February. 

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

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

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

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

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

493 report for the subject month prepared by the Operating Non-Federal Entity(ies) or, if there is no 

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

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

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

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

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

499 pursuant to Article 20 of this Contract. 

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

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

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

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

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

505 (a) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

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

519 relating to accountings, reports, or information. 

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

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

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

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

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

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

526 effect without amending this Contract. 

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

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

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

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

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

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

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

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

535 exceeds 90 percent of the Contract Total shall equal the difference between (i) the Rate established 
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536 under subdivision (a) of this Article and (ii) the Irrigation Full Cost Water Rate or M&I Full Cost 

537 Water Rate, whichever is applicable. 

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

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

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

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

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

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

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

545 such water. 

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

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

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

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

550 Article 3 of this Contract. 

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

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

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

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

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

556 the Contracting Officer’s ratesetting policies will not be implemented until the Contracting Officer 

557 has provided the Contractor an opportunity to discuss the nature, need, and impact of the proposed 

558 change. 
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559 (l) Except as provided in subsections 3405(a)(1)(B) and 3405(f) of the CVPIA, 

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

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

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

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

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

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

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

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

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

569 (n) Omitted. 

570 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

573 liability therefore. 

574 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

581 approved absent all appropriate environmental documentation, including but not limited to, 
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582 documents prepared pursuant to the NEPA and ESA. Such environmental documentation should 

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

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

585 transferee. 

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

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

588 area and to allow the Contractor to participate in an accelerated water transfer program during the 

589 term of this Contract, the Contracting Officer shall prepare, as appropriate, all necessary 

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

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

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

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

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

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

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

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

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

599 historically transferred within the same geographical area. 

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

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

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

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

604 established cropland, wildlife refuges, groundwater basins or M&I use; (ii) occur within a single 
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605 Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water through existing 

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

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

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

609 of the environment and Indian Trust Assets, as defined under Federal law. 

610 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

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

614 $1,000 shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such 

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

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

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

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

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

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

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

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

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

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

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

626 will be billed for the additional costs pursuant to Article 25. 
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627 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

632 Contract. 

633 (b) The Contracting Officer or Operating Non-Federal Entity(ies) may 

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

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

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

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

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

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

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

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

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

643 in the absence of such discontinuance or reduction. 

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

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

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

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

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

649 under the Contractor. 
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650 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

655 determination as soon as practicable. 

656 (b) If there is a Condition of Shortage because of errors in physical operations of 

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

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

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

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

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

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

663 Contracting Officer will first allocate the available Project Water consistent with the [insert title of 

664 final policy] in its form on the effective date of this Contract for determining the amount of Project 

665 Water available for delivery to the Project Contractors. Subject to the foregoing allocation, in any 

666 year in which there may occur a Condition of Shortage, the Contracting Officer shall then apportion 

667 Project Water among the Contractor and others entitled to Project Water from Delta Division 

668 Facilities under long-term water service or repayment contracts (or renewals thereof or binding 

669 commitments therefore) in force on February 28, 2005, as follows: 

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

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

672 actually scheduled under subdivision (b) of Article 4 of this Contract and under all other long-term 
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673 water service or repayment contracts then in force for the delivery of Project Water by the United 

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

675 hereinafter referred to as the scheduled total; 

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

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

678 referred to as the available supply; 

679 (3) The total quantity of Project Water estimated to be scheduled or 

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

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

682 to as the Contractor’s proportionate share; and 

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

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

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

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

687 exceed the Contract Total. In the event the Contracting Officer subsequently determines that the 

688 Contracting Officer can increase or needs to decrease the available supply for delivery from Delta 

689 Division Facilities to long-term water service and repayment Contractors during the relevant Year, 

690 such additions or reductions to the available supply shall be apportioned consistent with 

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

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

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

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

695 such a policy; (iii) the applicability of such a policy; or (iv) the manner in which such policy is 
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696 implemented in order to allocate Project Water between M&I and irrigation purposes; Provided, 

697 That the Contractor has commenced any such judicial challenge or any administrative procedures 

698 necessary to institute any judicial challenge within 6 months of the policy becoming final. By 

699 agreeing to the foregoing, the Contracting Officer does not waive any legal defenses or remedies 

700 that it may have to assert in such a proceeding. Nothing contained herein shall be interpreted to

701 validate or invalidate the Central Valley Project M&I Water Shortage Policy. 

702 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

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

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

707 RULES AND REGULATIONS

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

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

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

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

712 WATER AND AIR POLLUTION CONTROL

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

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

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

 

716 QUALITY OF WATER

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

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

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

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

721 Stat. 3050) or other existing Federal laws. The United States is under no obligation to construct or 
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722 furnish water treatment facilities to maintain or to improve the quality of Water Delivered to the 

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

724 Delivered to the Contractor pursuant to this Contract. 

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

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

727 level reasonably attainable as determined by the Contracting Officer. The Contractor shall be 

728 responsible for compliance with all State and Federal water quality standards applicable to surface 

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

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

731 (c) Omitted. 

732 WATER ACQUIRED BY THE CONTRACTOR

733 OTHER THAN FROM THE UNITED STATES

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

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

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

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

738 non-Project water were constructed without funds made available pursuant to Federal Reclamation 

739 law, the provisions of Federal Reclamation law will be applicable only to the Landholders of lands 

740 which receive Irrigation Water; (ii) the eligibility of land to receive Irrigation Water must be 

741 established through the certification requirements as specified in the Acreage Limitation Rules and 

742 Regulations (43 CFR Part 426); (iii) the water requirements of Eligible Lands within the 

743 Contractor's Service Area can be established and the quantity of Irrigation Water to be utilized is 

744 less than or equal to the quantity necessary to irrigate such Eligible Lands; and (iv) if the facilities 

745 utilized for commingling Irrigation Water and non-Project water are/were constructed with funds 
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746 made available pursuant to Federal Reclamation law, the non-Project water will be subject to the 

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

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

749 Contracting Officer will calculate annually the cost to the Federal Government, including interest of 

750 storing or delivering non-Project water, which for purposes of this Contract shall be determined as 

751 follows: The quotient shall be the unpaid distribution system costs divided by the total irrigable 

752 acreage within the Contractor’s Service Area. The incremental fee per acre is the mathematical 

753 result of such quotient times the interest rate determined using Section 202 (3) of the Act of 

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

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

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

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

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

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

760 adopted it shall supercede this provision. 

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

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

763 subject to the completion of appropriate environmental documentation, with the approval of the 

764 Contracting Officer and the execution of any contract determined by the Contracting Officer to be 

765 necessary, consistent with the following provisions: 

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

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

768 subject to payment to the United States and/or to any applicable Operating Non-Federal Entity of an 
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769 appropriate rate as determined by the applicable Project ratesetting policy, the RRA, and the Project 

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

771 superceded from time to time. 

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

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

774 determined by the Contracting Officer; (ii) reduce the quantity or quality of water available to other 

775 Project Contractors; (iii) interfere with the delivery of contractual water entitlements to any other 

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

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

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

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

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

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

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

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

784 water into Project facilities. 

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

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

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

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

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

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

791 available by the Contracting Officer for conveyance and transportation of non-Project water prior to 
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792 any such remaining capacity being made available to non-Project contractors. Other Project 

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

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

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

796 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

810 Contractor to the extent reasonably practicable. 

811 COORDINATION AND COOPERATION

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

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

814 affected Project Contractors, in order to improve the operation and management of the Project. The 
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815 communication, coordination, and cooperation regarding operations and management shall include, 

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

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

818 including, but not limited to, budget issues. The communication, coordination, and cooperation 

819 provided for hereunder shall extend to all provisions of this Contract. Each party shall retain 

820 exclusive decision making authority for all actions, opinions, and determinations to be made by the 

821 respective party. 

822 (b) Within 120 days following the effective date of this Contract, the Contractor, 

823 other affected Project Contractors, and the Contracting Officer shall arrange to meet with interested 

824 Project Contractors to develop a mutually agreeable, written Project-wide process, which may be 

825 amended as necessary separate and apart from this Contract. The goal of this process shall be to 

826 provide, to the extent practicable, the means of mutual communication and interaction regarding 

827 significant decisions concerning Project operation and management on a real-time basis. 

828 (c) In light of the factors referred to in subdivision (b) of Article 3 of this 

829 Contract, it is the intent of the Secretary to improve water supply reliability. To carry out this 

830 intent: 

831 (1) The Contracting Officer will, at the request of the Contractor, assist in 

832 the development of integrated resource management plans for the Contractor. Further, the 

833 Contracting Officer will, as appropriate, seek authorizations for implementation of partnerships to 

834 improve water supply, water quality, and reliability. 

835 (2) The Secretary will, as appropriate, pursue program and project 

836 implementation and authorization in coordination with Project Contractors to improve the water 

837 supply, water quality, and reliability of the Project for all Project purposes. 
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838 (3) The Secretary will coordinate with Project Contractors and the State 

839 of California to seek improved water resource management. 

840 (4) The Secretary will coordinate actions of agencies within the 

841 Department of the Interior that may impact the availability of water for Project purposes. 

842 (5) The Contracting Officer shall periodically, but not less than annually, 

843 hold division level meetings to discuss Project operations, division level water management 

844 activities, and other issues as appropriate. 

845 (d) Without limiting the contractual obligations of the Contracting Officer under 

846 the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 

847 Contracting Officer’s ability to communicate, coordinate, and cooperate with the Contractor or 

848 other interested stakeholders or to make decisions in a timely fashion as needed to protect health, 

849 safety or the physical integrity of structures or facilities. 

850 CHARGES FOR DELINQUENT PAYMENTS

851 20. (a) The Contractor shall be subject to interest, administrative and penalty charges 

852 on delinquent installments or payments. When a payment is not received by the due date, the 

853 Contractor shall pay an interest charge for each day the payment is delinquent beyond the due date. 

854 When a payment becomes sixty (60) days delinquent, the Contractor shall pay an administrative 

855 charge to cover additional costs of billing and processing the delinquent payment. When a payment 

856 is delinquent ninety (90) days or more, the Contractor shall pay an additional penalty charge of six 

857 (6%) percent per year for each day the payment is delinquent beyond the due date. Further, the 

858 Contractor shall pay any fees incurred for debt collection services associated with a delinquent 

859 payment. 

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

861 the Federal Register by the Department of the Treasury for application to overdue payments, or the 

862 interest rate of one-half of one (0.5%) percent per month prescribed by Section 6 of the Reclamation 

863 Project Act of 1939 (Public Law 76-260). The interest charge rate shall be determined as of the due 

864 date and remain fixed for the duration of the delinquent period. 

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

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

867 accrued interest, and finally to the overdue payment. 
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868 EQUAL OPPORTUNITY

869 21. During the performance of this Contract, the Contractor agrees as follows: 

870 (a) The Contractor will not discriminate against any employee or applicant for 

871 employment because of race, color, religion, sex, or national origin. The Contractor will take 

872 affirmative action to ensure that applicants are employed, and that employees are treated during 

873 employment, without regard to their race, color, religion, sex, or national origin. Such action shall 

874 include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

875 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

876 compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

877 conspicuous places, available to employees and applicants for employment, notices to be provided 

878 by the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

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

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

881 for employment without discrimination because of race, color, religion, sex, or national origin. 

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

883 with which it has a collective bargaining agreement or other contract or understanding, a notice, to 

884 be provided by the Contracting Officer, advising the said labor union or workers' representative of 

885 the Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, 

886 and shall post copies of the notice in conspicuous places available to employees and applicants for 

887 employment. 

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

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

890 the Secretary of Labor. 

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

892 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

893 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

894 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with such 

895 rules, regulations, and orders. 

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

897 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

898 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

899 ineligible for further Government contracts in accordance with procedures authorized in said 

900 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

901 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

902 otherwise provided by law. 

903 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

904 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

905 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 
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906 provisions will be binding upon each subcontractor or vendor. The Contractor will take such action 

907 with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a 

908 means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

909 That in the event the Contractor becomes involved in, or is threatened with, litigation with a 

910 subcontractor or vendor as a result of such direction, the Contractor may request the United States 

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

912 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

913 22. (a) The obligation of the Contractor to pay the United States as provided in this 

914 Contract is a general obligation of the Contractor notwithstanding the manner in which the 

915 obligation may be distributed among the Contractor's water users and notwithstanding the default of 

916 individual water users in their obligations to the Contractor. 

917 (b) The payment of charges becoming due hereunder is a condition precedent to 

918 receiving benefits under this Contract. The United States shall not make water available to the 

919 Contractor through Project facilities during any period in which the Contractor may be in arrears in 

920 the advance payment of water rates due the United States. The Contractor shall not furnish water 

921 made available pursuant to this Contract for lands or parties which are in arrears in the advance 

922 payment of water rates levied or established by the Contractor. 

923 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

924 obligation to require advance payment for water rates which it levies. 

925 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

927 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

928 Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights laws, 

929 as well as with their respective implementing regulations and guidelines imposed by the U.S. 

930 Department of the Interior and/or Bureau of Reclamation. 

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

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

933 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

934 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

935 Contractor agrees to immediately take any measures necessary to implement this obligation, 

936 including permitting officials of the United States to inspect premises, programs, and documents. 

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

938 of obtaining any and all Federal grants, loans, contracts, property discounts, or other Federal 

939 financial assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, 

940 including installment payments after such date on account of arrangements for Federal financial 

941 assistance which were approved before such date. The Contractor recognizes and agrees that such 
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942 Federal assistance will be extended in reliance on the representations and agreements made in this 

943 Article, and that the United States reserves the right to seek judicial enforcement thereof. 

944 PRIVACY ACT COMPLIANCE

945 24. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) 

946 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et 

947 seq.) in maintaining Landholder acreage certification and reporting records, required to be 

948 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation Reform 

949 Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

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

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

952 for maintaining the certification and reporting records referenced in (a) above are considered to be 

953 employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

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

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

956 Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--Interior, 

957 Reclamation-31) which govern the maintenance, safeguarding, and disclosure of information 

958 contained in the Landholder's certification and reporting records. 

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

960 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

961 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor is 

962 authorized to grant requests by individuals for access to their own records. 

963 (e) The Contractor shall forward promptly to the System Manager each proposed 

964 denial of access under 43 CFR 2.64; and each request for amendment of records filed under 43 CFR 

965 2.71; notify the requester accordingly of such referral; and provide the System Manager with 

966 information and records necessary to prepare an appropriate response to the requester. These 

967 requirements do not apply to individuals seeking access to their own certification and reporting 

968 forms filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects to cite the 

969 Privacy Act as a basis for the request. 

970 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

971 25. In addition to all other payments to be made by the Contractor pursuant to this 

972 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

973 detailed statement submitted by the Contracting Officer to the Contractor for such specific items of 

974 direct cost incurred by the United States for work requested by the Contractor associated with this 

975 Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies and 
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976 procedures. All such amounts referred to in this Article shall not exceed the amount agreed to in 

977 writing in advance by the Contractor. This Article shall not apply to costs for routine contract 

978 administration. 

979 WATER CONSERVATION

980 26. (a) Prior to the delivery of water provided from or conveyed through Federally 

981 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be 

982 implementing an effective water conservation and efficiency program based on the Contractor's 

983 water conservation plan that has been determined by the Contracting Officer to meet the 

984 conservation and efficiency criteria for evaluating water conservation plans established under 

985 Federal law. The water conservation and efficiency program shall contain definite water 

986 conservation objectives, appropriate economically feasible water conservation measures, and time 

987 schedules for meeting those objectives. Continued Project Water delivery pursuant to this Contract 

988 shall be contingent upon the Contractor’s continued implementation of such water conservation 

989 program. In the event the Contractor's water conservation plan or any revised water conservation 

990 plan completed pursuant to subdivision (d) of Article 26 of this Contract have not yet been 

991 determined by the Contracting Officer to meet such criteria, due to circumstances which the 

992 Contracting Officer determines are beyond the control of the Contractor, water deliveries shall be 

993 made under this Contract so long as the Contractor diligently works with the Contracting Officer to 

994 obtain such determination at the earliest practicable date, and thereafter the Contractor immediately 

995 begins implementing its water conservation and efficiency program in accordance with the time 

996 schedules therein. 

997 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

998 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 
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999 the Best Management Practices identified by the time frames issued by the California Urban Water 

1000 Conservation Council for such M&I Water unless any such practice is determined by the 

1001 Contracting Officer to be inappropriate for the Contractor. 

1002 (c) The Contractor shall submit to the Contracting Officer a report on the status 

1003 of its implementation of the water conservation plan on the reporting dates specified in the then 

1004 existing conservation and efficiency criteria established under Federal law. 

1005 (d) At 5 year intervals, the Contractor shall revise its water conservation plan to 

1006 reflect the then current conservation and efficiency criteria for evaluating water conservation plans 

1007 established under Federal law and submit such revised water management plan to the Contracting 

1008 Officer for review and evaluation. The Contracting Officer will then determine if the water 

1009 conservation plan meets Reclamation’s then current conservation and efficiency criteria for 

1010 evaluating water conservation plans established under Federal law. 

1011 (e) If the Contractor is engaged in direct groundwater recharge, such activity 

1012 shall be described in the Contractor’s water conservation plan. 

1013 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1014 27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

1015 Contract shall not be applicable to or affect non-Project water or water rights now owned or 

1016 hereafter acquired by the Contractor or any user of such water within the Contractor's Service Area. 

1017 Any such water shall not be considered Project Water under this Contract. In addition, this Contract 

1018 shall not be construed as limiting or curtailing any rights which the Contractor or any water user 

1019 within the Contractor's Service Area acquires or has available under any other contract pursuant to 

1020 Federal Reclamation law. 
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1021 OPERATION AND MAINTENANCE BY SAN LUIS & DELTA-MENDOTA WATER 

1022 AUTHORITY

1023 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1024 and responsibility for funding a portion of the costs of such O&M, have been transferred to the San 

1025 Luis & Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement 

1026 (8-07-20-X0354) between the United States and the Operating Non-Federal Entity San Luis & 

1027 Delta-Mendota Water Authority. That separate agreement shall not interfere with or affect the 

1028 rights or obligations of the Contractor or the United States hereunder. 

1029 (b) The Contracting Officer has previously notified the Contractor in writing that 

1030 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to the 

1031 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

1032 Contractor shall pay directly to the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

1033 Authority, or to any successor approved by the Contracting Officer under the terms and conditions 

1034 of the separate agreement between the United States and the Operating Non-Federal Entity San Luis 

1035 & Delta-Mendota Water Authority described in subdivision (a) of this Article, all rates, charges, or 

1036 assessments of any kind, including any assessment for reserve funds, which the Operating Non1037 Federal Entity San Luis & Delta-Mendota Water Authority or such successor determines, sets, or 

1038 establishes for the O&M of the portion of the Project facilities operated and maintained by the 

1039 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority or such successor. Such 

1040 direct payments to the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority or 

1041 such successor shall not relieve the Contractor of its obligation to pay directly to the United States 

1042 the Contractor’s share of the Project Rates, Charges, and Tiered Pricing Component except to the 

1043 extent the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority collects 
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1044 payments on behalf of the United States in accordance with the separate agreement identified in 

1045 subdivision (a) of this Article. 

1046 (c) For so long as the O&M of any portion of the Project facilities serving the 

1047 Contractor is performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water

1048 Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 

1049 Rates for Water Delivered under this Contract representing the cost associated with the activity 

1050 being performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority

1051 or its successor. 

1052 (d) In the event the O&M of the Project facilities operated and maintained by the 

1053 Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

1054 United States during the term of this Contract, the Contracting Officer shall so notify the 

1055 Contractor, in writing, and present to the Contractor a revised Exhibit “B” which shall include the 

1056 portion of the Rates to be paid by the Contractor for Project Water under this Contract representing 

1057 the O&M costs of the portion of such Project facilities which have been re-assumed. The 

1058 Contractor shall, thereafter, in the absence of written notification from the Contracting Officer to the 

1059 contrary, pay the Rates, Charges, and Tiered Pricing Component specified in the revised Exhibit 

1060 “B” directly to the United States in compliance with Article 7 of this Contract. 

1061 OPERATION AND MAINTENANCE BY CALIFORNIA DEPARTMENT OF WATER 

1062 RESOURCES

1063 28.1 (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1064 and responsibility for funding a portion of the costs of such O&M, have been transferred to the 

1065 California Department of Water Resources, an Operating Non-Federal Entity by a separate 

1066 agreement (14-06-200-9755) between the United States and Operating Non-Federal Entity 
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1067 California Department of Water Resources. This separate agreement shall not interfere with or 

1068 affect the rights or obligations of the Contractor or the United States hereunder. 

1069 (b) The Contracting Officer has previously notified the Contractor in writing that 

1070 the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 

1071 Operating Non-Federal Entity California Department of Water Resources, and the Contractor shall 

1072 pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or to any 

1073 successor approved by the Contracting Officer under the terms and conditions of the separate 

1074 agreement between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

1075 Water Authority, described in subdivision (a) of Article 28 of this Contract, all rates, charges, or 

1076 assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

1077 Entity California Department of Water Resources, or such successor determines, sets, or establishes 

1078 for the O&M of the portion of the Project facilities operated and maintained by Operating Non1079 Federal Entity California Department of Water Resources, or such successor. Such direct 

1080 payments to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such 

1081 successor shall not relieve the Contractor of its obligation to pay directly to the United States the 

1082 Contractor’s share of the Project Rates, Charges, and Tiered Pricing Components except to the 

1083 extent the Operating Non-Federal Entity collects payments on behalf of the United States in 

1084 accordance with the separate agreement identified in subdivision (a) of Article 28 of this Contract. 

1085 (c) For so long as the O&M of any portion of the Project facilities serving the 

1086 Contractor is performed by Operating Non-Federal Entity California Department of Water 

1087 Resources, or any successor thereto, the Contracting Officer shall adjust those components of the 

1088 Rates for Water Delivered under this Contract representing the cost associated with the activity 
Contract No. 14-06-200-3365A-C-LTR1

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1089 being performed by Operating Non-Federal Entity California Department of Water Resources, or its 

1090 successor. 

1091 (d) In the event the O&M of the Project facilities operated and maintained by 

1092 Operating Non-Federal Entity California Department of Water Resources, is re-assumed by the 

1093 United States during the term of this Contract, the Contracting Officer shall so notify the 

1094 Contractor, in writing, and present to the Contractor a revised Exhibit “B” which shall include the 

1095 portion of the Rates, Charges, and Tiered Pricing Component(s) to be paid by the Contractor for 

1096 Project Water under this Contract representing the O&M costs of the portion of such Project 

1097 facilities which have been re-assumed. The Contractor shall, thereafter, in the absence of written 

1098 notification from the Contracting Officer to the contrary, pay the Rates, Charges, and Tiered Pricing 

1099 Component(s) specified in the revised Exhibit “B” directly to the United States in compliance with 

1100 Article 7 of this Contract. 

1101 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1102 29. The expenditure or advance of any money or the performance of any obligation of 

1103 the United States under this Contract shall be contingent upon appropriation or allotment of funds. 

1104 Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

1105 under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

1106 or allotted. 

1107 BOOKS, RECORDS, AND REPORTS

1108 30. (a) The Contractor shall establish and maintain accounts and other books and 

1109 records pertaining to administration of the terms and conditions of this Contract, including: the 

1110 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1111 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

1112 data; and other matters that the Contracting Officer may require. Reports thereon shall be furnished 

1113 to the Contracting Officer in such form and on such date or dates as the Contracting Officer may 

1114 require. Subject to applicable Federal laws and regulations, each party to this Contract shall have 

1115 the right during office hours to examine and make copies of the other party's books and records 

1116 relating to matters covered by this Contract. 
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1117 (b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

1118 records, or other information shall be requested from the Contractor by the Contracting Officer 

1119 unless such books, records, or information are reasonably related to the administration or 

1120 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1121 time within which to provide the requested books, records, or information. 

1122 (c) At such time as the Contractor provides information to the Contracting 

1123 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided to 

1124 the Operating Non-Federal Entity. 

1125 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1126 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1127 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1128 therein shall be valid until approved in writing by the Contracting Officer. 

1129 (b) The assignment of any right or interest in this Contract by either party shall 

1130 not interfere with the rights or obligations of the other party to this Contract absent the written 

1131 concurrence of said other party. 

1132 (c) The Contracting Officer shall not unreasonably condition or withhold 

1133 approval of any proposed assignment. 

1134 SEVERABILITY

1135 32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

1136 (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

1137 association or other form of organization whose primary function is to represent parties to Project 

1138 contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1139 enforceability of a provision included in this Contract and said person, entity, association, or 

1140 organization obtains a final court decision holding that such provision is legally invalid or 
Contract No. 14-06-200-3365A-C-LTR1

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1141 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

1142 parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

1143 decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

1144 within 3 months thereafter promptly agree on the appropriate revision(s). The time periods 

1145 specified above may be extended by mutual agreement of the parties. Pending the completion of 

1146 the actions designated above, to the extent it can do so without violating any applicable provisions 

1147 of law, the United States shall continue to make the quantities of Project Water specified in this 

1148 Contract available to the Contractor pursuant to the provisions of this Contract which were not 

1149 found to be legally invalid or unenforceable in the final court decision. 

1150 RESOLUTION OF DISPUTES

1151 33. Should any dispute arise concerning any provisions of this Contract, or the parties’ 

1152 rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve the 

1153 dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer referring 

1154 any matter to the Department of Justice, the party shall provide to the other party 30 days’ written 

1155 notice of the intent to take such action; Provided, That such notice shall not be required where a 

1156 delay in commencing an action would prejudice the interests of the party that intends to file suit. 

1157 During the 30 day notice period, the Contractor and the Contracting Officer shall meet and confer in 

1158 an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

1159 waive or abridge any right or remedy that the Contractor or the United States may have. 

1160 OFFICIALS NOT TO BENEFIT

1161 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1162 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

1163 manner as other water users or landowners. 
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1164 CHANGES IN CONTRACTOR’S SERVICE AREA

1165 35. (a) While this Contract is in effect, no change may be made in the Contractor's 

1166 Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

1167 except upon the Contracting Officer's written consent. 

1168 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1169 Officer will notify the Contractor of any additional information required by the Contracting Officer 

1170 for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

1171 timely completion of the process. Such process will analyze whether the proposed change is likely 

1172 to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability 

1173 of the Contractor to pay for Project Water furnished under this Contract or to pay for any Federally1174 constructed facilities for which the Contractor is responsible; and (iii) have an impact on any Project 

1175 Water rights applications, permits, or licenses. In addition, the Contracting Officer shall comply 

1176 with the NEPA and the ESA. The Contractor will be responsible for all costs incurred by the 

1177 Contracting Officer in this process, and such costs will be paid in accordance with Article 25 of this 

1178 Contract. 

1179 FEDERAL LAWS

1180 36. By entering into this Contract, the Contractor does not waive its rights to contest the 

1181 validity or application in connection with the performance of the terms and conditions of this 

1182 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

1183 terms and conditions of this Contract unless and until relief from application of such Federal law or 

1184 regulation to the implementing provision of the Contract is granted by a court of competent 

1185 jurisdiction. 

1186 NOTICES

1187 37. Any notice, demand, or request authorized or required by this Contract shall be 

1188 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or delivered 
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1189 to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, CA 93721, and 

1190 on behalf of the United States, when mailed, postage prepaid, or delivered to the Board of Directors 

1191 of the Westlands Water District Distribution District No. 2, P.O. Box 6056, Fresno CA 93703-6056. 

1192 The designation of the addressee or the address may be changed by notice given in the same manner 

1193 as provided in this Article for other notices. 

1194 CONFIRMATION OF CONTRACT

1195 38. The Contractor, after the execution of this Contract, shall promptly seek to secure a 

1196 decree of a court of competent jurisdiction of the State of California, confirming the execution of 

1197 this Contract. The Contractor shall furnish the United States a certified copy of the final decree, the 

1198 validation proceedings, and all pertinent supporting records of the court approving and confirming 

1199 this Contract, and decreeing and adjudging it to be lawful, valid, and binding on the Contractor. 
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1200 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day and 

1201 year first above written. 

1202 THE UNITED STATES OF AMERICA 

1203 By: ________________________________________ 

1204 Regional Director, Mid-Pacific Region 

1205 Bureau of Reclamation 

1206 (SEAL) 

1207 WESTLANDS WATER DISTRICT 

1208 DISTRIBUTION DISTRICT NO. 2 

1209 By: ________________________________________ 

1210 President of the Board of Directors 

1211 Attest: 

1212 By: __________________________________ 

1213 Secretary of the Board of Directors 

1214 (H:\pub 440\LTRC\Final Draft LTRC’s-Fresno, Trac10-19-04 Westlands DD Final LTRC Draft 

1215 with exhibits.doc)
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26
Contract No. 14-06-200-3365A-C-LTR1

EXHIBIT B

WESTLANDS WATER DISTRICT DISTRIBUTION DISTRICT NO. 2

Water Rates and Charges

Note: Rates and Charges are 2004 rates. This exhibit will be updated prior to execution of the 

 contract to reflect the current Rates and Charges. 

 2004 Rates per Acre-Foot 

 Irrigation Water M&I Water COST-OF-SERVICE RATES: Westlands 

Capital Rates $15.40 1/ O&M Rates: 

Water Marketing 6.28 

Storage 5.57 

San Luis Drain .41 

Direct Pumping 1.75 

Conveyance 

Conveyance Pumping 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing 

CFO/PFR Adj. Rates 2/ 

TOTAL COST-OF-SERVICE-RATES $29.41 1/ 

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. $53.30 

Section 205(a)(3) Rate is 

 applicable to a Limited Recipient that 

 did not receive irrigation water on or before October 1, 1981. $67.87 

CHARGES UNDER P.L. 102-575 TO RESTORATION FUND 3/ 

 Restoration Payments (3407(d)(2)(A)) $ 7.69 $ 7.69 $15.38

1/ To be provided as needed. Contractor does not currently receive M&I water and is not 

projected to take any in the near future. 

2/ 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. 

 

3/ 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).