M&I Only 

Contract No. 14-06-200-5082A-IR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

AND

PLACER COUNTY WATER AGENCY

PROVIDING FOR PROJECT WATER SERVICE

FROM THE AMERICAN RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals ................................................................................................1 

1 Definitions................................................................................................................6 

2 Term of Contract ......................................................................................................9 

3 Water to be Made Available and Delivered to the Contractor ...............................11 

4 Time for Delivery of Water ...................................................................................14 

5 Point of Diversion and Responsibility for Distribution of Water ..........................15 

6 Measurement of Water Within the Service Area ...................................................17 

7 Rates and Method of Payment for Water ...............................................................19 

8 Non-Interest Bearing Operation and Maintenance Deficits ...................................23 

9 Sales, Transfers, or Exchanges of Water ...............................................................23 

10 Application of Payments and Adjustments ............................................................24 

11 Temporary Reductions--Return Flows ..................................................................25 

12 Constraints on the Availability of Water ...............................................................26 

13 Unavoidable Groundwater Percolation ..................................................................27 

14 Rules, Regulations and Determinations .................................................................27 

15 Water and Air Pollution Control ............................................................................27 

16 Quality of Water ....................................................................................................27 

17 Water Acquired by the Contractor Other Than From the United States ................28 

18 Opinions and Determinations ................................................................................29 

19 Coordination and Cooperation ...............................................................................30 

20 Charges for Delinquent Payments .........................................................................31 
Contract No.14-06-200-5082A-IR1 

Table of Contents - continued

Article No. Title Page No.

21 Equal Opportunity ..................................................................................................32 

22 General Obligation--Benefits Conditioned Upon Payment ...................................33 

23 Compliance With Civil Rights Laws and Regulations ..........................................33 

24 Privacy Act Compliance ........................................................................................34 

25 Contractor to Pay Certain Miscellaneous Costs.....................................................34 

26 Water Conservation ...............................................................................................34 

27 Existing or Acquired Water or Water Rights .........................................................35 

28 Operation and Maintenance by the Operating Non-Federal Entity .......................36 

29 Contingent on Appropriation or Allotment of Funds ............................................36 

30 Books, Records, and Reports .................................................................................36 

31 Assignment Limited--Successors and Assigns Obligated .....................................37 

32 Severability ............................................................................................................37 

33 Resolution of Disputes ...........................................................................................38 

34 Officials Not to Benefit ..........................................................................................38 

35 Changes in Contractor's Service Area ...................................................................38 

36 Federal Laws ..........................................................................................................39 

37 Notices ...................................................................................................................39 

38 Confirmation of Contract .......................................................................................39 

39 Contract Drafting Considerations ..........................................................................39 

Signature Page .......................................................................................................40 

Exhibit A - Map of Contractor’s Service Area 

Exhibit B - Rates and Charges 
Contract No. 14-06-200-5082A—IR1 

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UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

5 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

6 AND

7 PLACER COUNTY WATER AGENCY

8 PROVIDING FOR PROJECT WATER SERVICE

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FROM THE AMERICAN RIVER DIVISION

 THIS CONTRACT, made this _____ day of ____________________, 20____, in 

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

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

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

June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 (100 Stat. 3050), 

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

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

AMERICA, hereinafter referred to as the United States, and PLACER COUNTY WATER 

AGENCY, hereinafter referred to as the Contractor, a public agency of the State of California, 

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

 WITNESSETH, That: 

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EXPLANATORY RECITALS

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

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

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

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

other beneficial uses, of waters of the Sacramento River, the American River, the Trinity River, 
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and the San Joaquin River and their tributaries; and 

 [2nd] WHEREAS, the United States constructed Folsom Dam and Reservoir, 

hereinafter collectively referred to as the American River Division , which will be used in part 

for the furnishing of water to the Contractor pursuant to the terms of this Contract; and 

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

pursuant to California law for operation of the Project; and 

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

No. 14-06-200-5082A, dated September 18, 1970, as amended July 8, 1992, which established 

terms for the delivery to the Contractor of Project Water from the Auburn Reservoir or other 

mutually agreeable locations and also recognized the Contractor’s right to certain flows of the 

American River authorized by permits issued by the California State Water Right Control Board 

which is now called the State Water Resources Control Board (SWRCB); and 

 [4.1] WHEREAS, Contract No. 14-06-200-5082A, as amended, was superseded by 

Amendatory Contract No. 14-06-200-5082A on February 26, 2002, to, among other things, redesignate points of diversion and eliminate the minimum payment provisions currently included 

in the contract and reduce the annual amount of Project Water to be made available from 

117,000 acre-feet to 35,000 acre-feet; and 

 [4.2] WHEREAS, Amendatory Contract No. 14-06-200-5082A was further amended 

on August 27, 2002, to provide for a potential point of diversion on the Sacramento River, and to 

provide for a potential increase in the annual quantity provided under this contract to an amount 

in excess of 35,000 acre-feet, if and when a point of diversion for Project Water is established on 

the Sacramento River and if the proposed Auburn Dam is fully Completed, and the United States 

obtains the necessary water rights for the Auburn Project, and 

[4.3] WHEREAS, Amendatory Contract No. 14-06-200-5082A, dated February 26, 

2002, as amended on August 27, 2002, is hereinafter referred to as the Existing Contract; and 

 [4.4] WHEREAS, the SWRCB by Order WR 2008-0045 revoked Reclamation’s right 

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to appropriate water in connection with the Auburn-Folsom South Unit (Auburn Dam and 

Reservoir) of the Project; and 

 [5th] Omitted; and 

 [6th] WHEREAS, Section 3404(c) of the Central Valley Project Improvement Act 

(CVPIA) provides for long-term renewal of Existing Contracts following completion of 

appropriate environmental documentation, including the Programmatic Environmental Impact 

Statement (PEIS), which was required by Section 3409 of the CVPIA, pursuant to the National 

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

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

and 

 [6.1 ] WHEREAS, the United States has completed the PEIS, but since all the 

environmental documentation necessary to execute a long-term renewal contract has not been 

completed, the Contractor has requested an interim renewal contract pursuant to Section 3404(c) 

(1) of the CVPIA, and 

 [7th] WHEREAS, the United States has determined that the Contractor has fulfilled all 

of its obligations under the Existing Contract; and 

 [8th] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

Contracting Officer that the Contractor has projected future demand for water use such that the 

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

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

 [9th] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

as an essential portion of its water supply; and 

 [10th] WHEREAS, the economies of regions within the Project, including the 

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

Project; and 

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[10.1 ] WHEREAS, in the California Bay-Delta Authority (CALFED) Programmatic 

Record of Decision, dated August 28, 2000, the United States and the State of California adopted 

a general target of continuously improving Delta water quality for all uses. The CALFED 

Agencies’ target for providing safe, reliable, and affordable drinking water in a cost-effective 

way, is to achieve either: “(a) average concentrations at Clifton Court Forebay and other 

southern and central Delta drinking water intakes of 50 ug/L bromide and 3.0 mg/L total organic 

carbon, or (b) an equivalent level of public health protection using a cost-effective combination 

of alternative source waters, source control and treatment technologies;” and

 [11th] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

Project for all Project purposes; and 

[11.1] WHEREAS, the Contractor and the water users in its Service Area have improved 

and will continue to improve water use efficiency through water conservation, water reclamation, 

and other Best Management Practices; however, implementing these measures have reduced and 

continue to reduce the ability of the Contractor and the water users in its Service Area to 

withstand a Condition of Shortage; and 

 [12th] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

of the United States relative to the Project; and 

 [13th] WHEREAS, the parties intend by this Contract to develop a more cooperative 

relationship in order to achieve their mutual goals; and 

 [13.1] WHEREAS, the Contractor is a signatory to the Water Forum Agreement, dated 

April 2000, which has the co-equal objectives to (1) provide a reliable and safe water supply for 

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the Sacramento region’s economic health and planned development through the year 2030, and 

(2) preserve the fishery, wildlife, recreational and aesthetic values of the lower American River; 

and 

 [13.2] WHEREAS, the Contracting Officer is in support of the co-equal objectives of the 

Water Forum Agreement and intends to work cooperatively with the Contractor to investigate 

actions that they could take to implement the objectives of the Water Forum Agreement, which, 

if agreed to, would be the subject of a separate agreement between them; and 

 [13.3] WHEREAS, in order to continue water service provided under Project water 

service contracts that expire prior to the completion of all appropriate environmental 

documentation, the United States intends to execute interim renewal contracts for M&I water for 

a period not to exceed three (3) Years in length, and for successive interim periods of not more 

than two (2) Years in length, until such appropriate environmental documentation, is finally 

completed, at which time the Secretary shall, pursuant to Federal Reclamation law, upon request 

of the Contractor, enter into a long-term renewal contract for a period of forty (40) Years; and 

may thereafter renew such long-term renewal contracts for successive periods not to exceed forty 

(40) Years each; and 

 [14th] WHEREAS, the contract between the United States and the Contractor dated 

February 20, 1963, relating to the operation of the Contractor’s Middle Fork American River 

Project Reservoirs is still in full force and effect and is not affected by the terms and conditions 

of this Contract; and 

 [15th] WHEREAS, the United States and the Contractor are willing to enter into this 

Interim Renewal (hereinafter “Contract”) consistent with the provisions of Section 3404(c) of 

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

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

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

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DEFINITIONS

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

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

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

both dates inclusive; 

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

in addition to the Rates as determined annually by the Contracting Officer pursuant to this 

Contract; 

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

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

Contract Total; 

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

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

or regulation; 

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

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

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

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

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

without amendment of this Contract; 

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

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

 (g.1) “Diversion Water” shall mean water to which the Contractor has acquired 

rights under Permit Nos. 13855, 13856, 13857, and 13858 issued by the California State Water 

Rights Board, now referred to as the State Water Resources Control Board; 

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 (h-i) Omitted; 

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

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

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

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

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

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

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

in accordance with subsections 202(3)(B) and (3)(C) of the Reclamation Reform Act of 

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October 12, 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA. The Full-Cost 

Rate includes actual operation, maintenance, and replacement costs consistent with Section 426.2 

of the Rules and Regulations for the RRA; 

 (k-l) Omitted; 

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

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

incidental thereto, and watering of livestock; 

 (n) Omitted; 

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

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

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

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

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

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

this Article; 

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

the delivery of M&I Water; 

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

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

maintenance of Project facilities; 

 (r) Omitted; 

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

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

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

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

Reclamation law; 

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

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

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

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

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

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

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

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

preceding contract(s); 

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

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

through any agency of the Department of the Interior; 

 (y) Omitted 

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

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

Officer; 

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

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

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

 (bb) “Water Scheduled” shall mean Water Made Available to the Contractor 

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

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

 (cc) "Year" shall mean the period from and including March 1 of each 

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

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TERM OF CONTRACT

2. (a) This Contract shall be effective from January 1, 2012 and shall remain in 

effect through February 28, 2014, and thereafter will be renewed as described in this Article. 

Except as provided in subdivision (b) of this Article, until completion of all appropriate 

environmental review, and provided that the Contractor has complied with all the terms and 

conditions of the interim renewal contract in effect for the period immediately preceding the 

requested successive interim renewal contract, this Contract will be renewed, upon request of the 

Contractor, for successive interim periods each of which shall be no more than two (2) Years in 

length. Also, except as provided in subdivision (b) of this Article, in order to promote orderly 

and cost effective contract administration, the terms and conditions in subsequent interim 

renewal contracts shall be identical to the terms and conditions in the interim renewal contract 

immediately preceding the subsequent interim renewal contract: Provided, however, That each 

party preserves the right to propose modification(s) in any interim renewal contract other than 

those described in subdivision (b) of this Article, in which case the parties shall negotiate in good 

faith appropriate modification(s) to be included in any successive interim renewal contracts. 

Said modification(s) of each successive interim renewal contract shall be agreed upon within a 

reasonable time prior to the expiration of the then existing interim renewal contract. Nothing in 

this Article shall in any way alter the obligation that, upon final completion of any necessary 

supplemental environmental documentation, the Secretary shall, pursuant to Federal Reclamation 

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law, upon request of the Contractor, enter into a long-term renewal contract for a period of forty 

(40) Years and may thereafter renew such long-term renewal contracts for successive periods not 

to exceed forty (40) Years each. 

 (b) The parties have engaged and if necessary will continue to engage in good 

faith negotiations intended to permit the execution of a forty (40) Year long-term renewal 

contract contemplated by Section 3404 (c) of the CVPIA, hereinafter referred to as a “long-term 

renewal contract”. The parties recognize the possibility that this schedule may not be met 

without further negotiations. Accordingly: In the event (i) the Contractor and Contracting Officer 

have reached agreement on the terms of the Contractor’s long-term renewal contract or (ii) the 

Contractor and Contracting Officer have not completed the negotiations on the Contractor’s 

long-term renewal contract, believe that further negotiations on that contract would be beneficial, 

and mutually commit to continue to negotiate to seek to reach agreement, but (iii) all 

environmental documentation required to allow execution of the Contractor’s long-term renewal 

contract by both parties has not been completed in time to allow execution of the Contractor’s 

long-term renewal contract by February 28, 2014, then (iv), the parties will expeditiously 

complete the environmental documentation required of each of them in order to execute the 

Contractor’s long-term renewal contract at the earliest practicable date. In addition, the 

Contractor’s then-current interim renewal contract will be renewed without change upon the 

request of either party through the agreed-upon effective date of the Contractor’s long-term 

renewal contract or, in the absence of agreement on the terms of the Contractor’s long-term 

renewal contract, through the succeeding February 28. 

 (c) The omission of language in this Contract providing for conversion of this 

interim renewal contract or any subsequent renewals thereof to a repayment contract pursuant to 

subsection (c)(1) of Section 9 of the Reclamation Projects Act of 1939 (53 Stat. 1187), shall not 

prejudice the Contractor's right to assert a right to have such language included in subsequent 

renewals of this Contract or to exercise such conversion, all as provided by law, or to negotiate 

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WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

this Contract, the Contracting Officer shall make available for delivery to the Contractor up to 

35,000 acre-feet of Project Water for M&I purposes. Provided, however, during the two (2) 

month period of January and February of 2012, the Contracting Officer shall make available for 

delivery to the Contractor that portion of the 2011 allocation of Project Water unused by the 

Contractor under the Existing Contract. Water Delivered to the Contractor in accordance with 

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

this Contract. 

 (1) The Contracting Officer recognizes that the Contractor has a right 

to Diversion Water from the American River in the amount of 120,000 acre-feet in any Year said 

water is available. Said Diversion Water is in addition to the Project Water made available 

pursuant to this Contract. The quantities of Diversion Water to which the Contractor is entitled 

and which are not taken or otherwise disposed of by the Contractor during that Year shall 

become the property of the United States. 

 (2) The quantity of Diversion Water specified in Article 3(a)(1) above, 

is contingent upon the right of the Contractor to continue to take said quantity of water annually 

pursuant to California law. In the event that under such law the Contractor’s right to take 

Diversion Water is less than the amount specified in Article 3(a)(1) above, the amount of 

Diversion Water which the Contracting Officer will recognize under this Contract shall be 

reduced accordingly. 

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

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

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

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

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

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

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

water made available to the Contractor was 32,000 acre feet. Nothing in subdivision (b) of this 

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

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

applicable legal requirements. 

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

water furnished pursuant to this Contract. Groundwater recharge programs (direct, indirect, or in 

lieu), groundwater banking programs, surface water storage programs, and other similar 

programs utilizing Project Water or other water furnished pursuant to this Contract conducted 

within the Contractor’s Service Area which are consistent with applicable State law and result in 

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

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

Article 26 of this Contract; 

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Provided, further, That such water conservation plan demonstrates 

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

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

compliance with Federal Reclamation law. Groundwater recharge programs, groundwater 

banking programs, surface water storage programs, and other similar programs utilizing Project 

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

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

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

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

guidelines. 

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

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

as amended, that are within the Contractor’s legal authority to implement. Nothing herein shall 

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

competent jurisdiction with respect to any biological opinion or other environmental 

documentation referred to in this Article. 

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

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

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

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

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

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

Project Water, or other water available to the Project, can be made available to the Contractor, 

the Contracting Officer will announce the availability of such water and shall so notify the 

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

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

efficient allocation of such water. If the Contractor requests the delivery of any quantity of such 

water, the Contracting Officer shall make such water available to the Contractor in accordance 

with applicable statutes, regulations, guidelines, and policies. Subject to existing long-term 

contractual commitments, water rights and operational constraints, long-term Project Contractors 

shall have a first right to acquire such water, including Project Water made available pursuant to 

Section 215 of the RRA. 

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

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

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

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

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Contract No. 14-06-200-5082A-IR1 

339 

340 

341 

342 

343 

344 

345 

346 

347 

348 

349 

350 

351 

352 

353 

354 

355 

356 

357 

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

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

guidelines, and policies. 

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

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

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

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

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

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

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

contracts. 

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

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

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

conditions of such approval. 

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

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

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

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

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

Contractor’s position in such a proceeding; 

358 

359 Provided further, That in such proceedings the 

360 

361 

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

Contract to use Project Water. 

362 

363 

364 

TIME FOR DELIVERY OF WATER

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

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

14
Contract No. 14-06-200-5082A-IR1 

365 

366 

367 

368 

369 

370 

371 

372 

373 

374 

375 

376 

377 

378 

379 

380 

381 

382 

383 

384 

385 

386 

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

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

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

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

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

request of the Contractor. Concurrently with the declaration of the Water Made Available, the 

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

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

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

Contracting Officer, showing the monthly quantities of Project Water to be delivered by the 

United States to the Contractor pursuant to this Contract for the Year commencing on such 

March 1. The Contracting Officer shall use all reasonable means to deliver Project Water 

according to the approved schedule for the Year commencing on such March 1. 

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

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

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

during any Year. 

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

Contract, the United States shall deliver Project Water to the Contractor in accordance with the 

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

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

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

387 

388 

389 

390 

POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

Contract shall be delivered to the Contractor at Folsom Dam and any additional point or points of 

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

15
Contract No. 14-06-200-5082A-IR1 

391 

392 

393 

394 

395 

396 

397 

398 

399 

400 

401 

402 

403 

404 

405 

406 

407 

408 

409 

410 

411 

412 

413 

414 

415 

416 

by the Contracting Officer and the Contractor, including a potential point of delivery on the 

Sacramento River north of the American River. The parties acknowledge that the potential 

Sacramento River point of delivery may be at a point that, as of the date of this Contract, is not 

included as an authorized point of delivery under the water right permits of the Project. Project 

Water will not be delivered to this point of delivery unless and until such point is added to the 

water right permits of the Project. Upon request of the Contractor, the Contracting Officer shall 

petition the California State Water Resources Control Board to include the necessary point of 

delivery to the water rights for the Project, and the Contractor shall cooperate with and assist the 

Contracting Officer in prosecuting such petition in a timely manner. The Contracting Officer 

shall bear neither responsibility nor liability for existing and/or future-constructed non-Federal 

diversion or delivery facilities or the use thereof. 

 (1) The parties hereby acknowledge execution of the Stipulated 

Agreement dated September 8, 1998, recognizing the agreement by the United States, Bureau of 

Reclamation, subject to certain conditions, to dismiss protests to the Contractor’s petition to 

expand the place of use under the Contractor’s water right permits. 

 (b) Omitted. 

 (c) The Contractor shall not deliver Project Water to land outside the 

Contractor's Service Area unless approved in advance by the Contracting Officer. 

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

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

United States or other appropriate entity as designated by the Contracting Officer at the point or 

points of delivery established pursuant to subdivision (a) of this Article. Upon the request of 

either party to this Contract, the Contracting Officer shall investigate the accuracy, or cause to be 

investigated, of such measurements and shall take any necessary steps to adjust any errors 

appearing therein. For any period of time when accurate measurements have not been made, the 

Contracting Officer shall consult with the Contractor prior to making a final determination of the 

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Contract No. 14-06-200-5082A-IR1 

417 

418 

419 

420 

421 

422 

423 

424 

425 

426 

427 

428 

429 

430 

quantity delivered for that period of time. 

 (e) The Contracting Officer shall not be responsible for the control, carriage, 

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

Contract beyond the delivery points specified in subdivision (a) of this Article. The Contractor 

shall indemnify the United States, its officers, employees, agents, and assigns on account of 

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

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

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

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

Officer or any of its officers, employees, agents, or assigns with the intent of creating the 

situation resulting in any damage or claim; (ii) willful misconduct of the Contracting Officer or 

any of its officers, employees, agents, or assigns; (iii) negligence of the Contracting Officer or 

any of its officers, employees, agents, or assigns; or (iv) damage or claims resulting from a 

malfunction of facilities owned and/or operated by the United States. 

431 

432 

433 

434 

435 

436 

437 

438 

439 

440 

441 

442 

MEASUREMENT OF WATER WITHIN THE SERVICE AREA

 6. (a) The Contractor shall ensure that, unless the Contractor has established a 

measuring program satisfactory to the Contracting Officer, the Contractor shall ensure that all 

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

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

acceptable to the Contracting Officer. The Contractor shall be responsible for installing, 

operating, and maintaining and repairing all such measuring devices and implementing all such 

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

information obtained from such water measuring devices or water measuring methods to ensure 

its proper management of the water, to bill water users for water delivered by the Contractor; 

and, if applicable, to record water delivered for M&I purposes by customer class as defined in 

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

17
Contract No. 14-06-200-5082A-IR1 

443 

444 

445 

446 

447 

448 

449 

450 

451 

452 

453 

454 

455 

456 

457 

458 

459 

460 

461 

462 

463 

464 

465 

466 

467 

468 

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

charges, assessments, or other revenues authorized by California law. The Contractor shall 

include a summary of all its annual surface water deliveries in the annual report described in 

subdivision (c) of Article 26. 

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

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

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

to implement subdivision (a) of this Article and identifying the M&I service connections or 

alternative measurement programs approved by the Contracting Officer, at which such 

measurement devices or water measuring methods are being used, and, if applicable, identifying 

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

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

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

of the measuring devices or water measuring methods identified in the Contractor’s report and if 

the Contracting Officer does not respond in such time, they shall be deemed adequate. If the 

Contracting Officer notifies the Contractor that the measuring devices or methods are 

inadequate, the parties shall within 60 days following the Contracting Officer‘s response, 

negotiate in good faith the earliest practicable date by which the Contractor shall modify said 

measuring devices and/or measuring methods as required by the Contracting Officer to ensure 

compliance with subdivision (a) of this Article. 

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

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

provisions described in subdivision (a) of this Article. 

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

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

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

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Contract No. 14-06-200-5082A-IR1 

469 

470 

 (e) The Contractor shall inform the Contracting Officer on or before the 20th

calendar day of each month of the quantity of M&I Water taken during the preceding month. 

471 

472 

473 

474 

475 

476 

477 

478 

479 

480 

481 

482 

483 

484 

485 

486 

487 

488 

489 

490 

491 

492 

493 

494 

RATES AND METHOD OF PAYMENT FOR WATER

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

all Delivered Water at Rates and Charges established in accordance with (i) the Secretary’s thenexisting ratesetting policy for M&I Water, which ratesetting policies shall be amended, modified, 

or superseded only through a public notice and comment procedure; (ii) applicable Federal 

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

provisions of this Contract. Payments shall be made by cash transaction, electronic funds 

transfer, or any other mechanism as may be agreed to in writing by the Contractor and the 

Contracting Officer. The Rates and Charges, applicable to the Contractor upon execution of this 

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

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

Charges as follows: 

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

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

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

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

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

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

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

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

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

shall make available to the Contractor an estimate of the Rates for Project Water for the 

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

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

19
Contract No. 14-06-200-5082A-IR1 

495 

496 

497 

498 

499 

500 

501 

502 

503 

504 

505 

506 

507 

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

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

and such notification shall revise Exhibit “B.” 

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

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

Contractor shall make an advance payment to the United States equal to the total amount payable 

pursuant to the applicable Rate(s) set under subdivision (a) of this Article, for the Project Water 

scheduled to be delivered pursuant to this Contract during the first two calendar months of the 

Year. Before the end of the first month and before the end of each calendar month thereafter, the 

Contractor shall make an advance payment to the United States, at the Rate(s) set under 

subdivision (a) of this Article, for the Water Scheduled to be delivered pursuant to this Contract 

during the second month immediately following. Adjustments between advance payments for 

Water Scheduled and payments at Rates due for Water Delivered shall be made before the end of 

the following month; Provided, That any revised schedule submitted by the Contractor pursuant 

to Article 4 of this Contract which increases the amount of Water Delivered pursuant to this 

Contract during any month shall be accompanied with appropriate advance payment, at the Rates 

then in effect, to assure that Project Water is not delivered to the Contractor in advance of such 

payment. In any month in which the quantity of Water Delivered to the Contractor pursuant to 

this Contract equals the quantity of Water Scheduled and paid for by the Contractor, no 

additional Project Water shall be delivered to the Contractor unless and until an advance 

payment at the Rates then in effect for such additional Project Water is made. Final adjustment 

between the advance payments for the Water Scheduled and payments for the quantities of Water 

Delivered during each Year pursuant to this Contract shall be made as soon as practicable but no 

later than April 30th of the following Year, or 60 days after the delivery of Project Water carried 

over under subdivision (g) of Article 3 of this Contract if such water is not delivered by the last 

day of February. 

508 

509 

510 

511 

512 

513 

514 

515 

516 

517 

518 

519 

520 

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Contract No. 14-06-200-5082A-IR1 

521 

522 

523 

524 

525 

526 

527 

528 

529 

530 

531 

532 

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

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

effect, before the end of the month following the month of delivery. The payments shall be 

consistent with the quantities of M&I Water Delivered as shown in the water delivery report for 

the subject month prepared by the Contracting Officer. The water delivery report shall be 

deemed a bill for the payment of Charges for Water Delivered. Adjustment for overpayment or 

underpayment of Charges shall be made through the adjustment of payments due to the United 

States for Charges for the next month. Any amount to be paid for past due payment of Charges 

shall be computed pursuant to Article 20 of this Contract. 

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

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

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

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

534 

535 

536 

537 

538 

539 

540 

541 

542 

543 

544 

545 

546 

Contract shall be no more than the otherwise applicable Rate for M&I Water under subdivision 

(a) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

21
Contract No. 14-06-200-5082A-IR1 

547 

548 

549 

550 

551 

552 

553 

554 

555 

556 

557 

558 

559 

560 

561 

562 

563 

564 

565 

566 

567 

568 

569 

570 

571 

572 

disposition of all Project and Contractor revenues, and a summary of all water delivery 

information. The Contracting Officer and the Contractor shall enter into good faith negotiations 

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

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

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

policies, and procedures used for establishing Rates and Charges and/or for making and 

allocating payments, other than those set forth in this Article may be in the mutual best interest 

of the parties, it is expressly agreed that the parties may enter into agreements to modify the 

mechanisms, policies, and procedures for any of those purposes while this Contract is in effect 

without amending this Contract. 

 (j) (1-3) Omitted 

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

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

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

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

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

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

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

impact of the proposed change. 

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

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

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

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

accordance with the then-applicable Project ratesetting policy. 

 (m) Omitted. 

 (n) Omitted 

22
Contract No. 14-06-200-5082A-IR1 

573 

574 

NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

 8. Omitted. 

575 

576 

577 

578 

579 

580 

581 

582 

583 

584 

585 

586 

587 

588 

589 

590 

591 

592 

593 

594 

595 

596 

597 

598 

SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

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

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

transferor and transferee. 

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

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

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

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

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

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

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

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

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

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

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

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

23
Contract No. 14-06-200-5082A-IR1 

599 

600 

601 

602 

603 

604 

605 

606 

607 

608 

609 

610 

611 

612 

613 

614 

615 

616 

617 

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

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

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

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

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

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

delivered to established cropland, wildlife refuges, groundwater basins or M&I use, or for fish 

and wildlife purposes; (ii) occur within a single Year; (iii) occur between a willing seller and a 

willing buyer; (iv) convey water through existing facilities with no new construction or 

modifications to facilities and be between existing Project Contractors and/or the Contractor and 

the United States, Department of the Interior; and (v) comply with all 

applicable Federal, State, and local or tribal laws and requirements imposed for protection of the 

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

 (d) Solely for the purpose of determining whether Section 3405(a)(1)(M) of 

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

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

of origin, as those terms are utilized under California law, of water that constitutes the natural 

flow of the American River and its tributaries above the confluence of the American and 

Sacramento Rivers. 

618 

619 

620 

621 

622 

623 

624 

APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

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

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

refund, any amount of such overpayment, at the option of the Contractor, may be credited against 

amounts to become due to the United States by the Contractor. With respect to overpayment, 

24
Contract No. 14-06-200-5082A-IR1 

625 

626 

627 

628 

629 

630 

631 

632 

633 

634 

635 

such refund or adjustment shall constitute the sole remedy of the Contractor or anyone having or 

claiming to have the right to the use of any of the Project Water supply provided for herein. All 

credits and refunds of overpayments shall be made within 30 days of the Contracting Officer 

obtaining direction as to how to credit or refund such overpayment in response to the notice to 

the Contractor that it has finalized the accounts for the Year in which the overpayment was 

made. 

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

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

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

difference will be refunded to the Contractor. If the actual costs exceed the Contractor's 

advances, the Contractor will be billed for the additional costs pursuant to Article 25. 

636 

637 

638 

639 

640 

641 

642 

643 

644 

645 

646 

647 

TEMPORARY REDUCTIONS--RETURN FLOWS

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

requirements of Federal law; and (ii) the obligations of the United States under existing 

contracts, or renewals thereof, providing for water deliveries from the Project, the Contracting 

Officer shall make all reasonable efforts to optimize Project Water deliveries to the Contractor as 

provided in this Contract. 

 (b) The Contracting Officer may temporarily discontinue or reduce the 

quantity of Water Delivered to the Contractor as herein provided for the purposes of 

investigation, inspection, maintenance, repair, or replacement of any of the Project facilities or 

any part thereof necessary for the delivery of Project Water to the Contractor, but so far as 

feasible the Contracting Officer will give the Contractor due notice in advance of such temporary 

discontinuance or reduction, except in case of emergency, in which case no notice need be given; 

Provided, That the United States shall use its best efforts to avoid any discontinuance or 

reduction in such service. Upon resumption of service after such reduction or discontinuance, 

and if requested by the Contractor, the United States will, if possible, deliver the quantity of 

648 

649 

650 

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Contract No. 14-06-200-5082A-IR1 

651 

652 

653 

654 

Project Water which would have been delivered hereunder in the absence of such discontinuance 

or reduction. 

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

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

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

the United States any right to seepage or return flow being put to reasonable and beneficial use 

pursuant to this Contract within the Contractor’s Service Area by the Contractor or those 

claiming by, through, or under the Contractor. 

655 

656 

657 

658 

659 

660 

661 

662 

663 

664 

665 

666 

667 

668 

669 

670 

671 

672 

673 

674 

675 

676 

677 

678 

679 

680 

681 

CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

available to the Contractor pursuant to this Contract. In the event the Contracting Officer 

determines that a Condition of Shortage appears probable, the Contracting Officer will notify the 

Contractor of said determination as soon as practicable. 

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

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

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

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

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

 (c) Omitted. 

 (d) Project Water furnished under this Contract will be allocated in 

accordance with the then-existing Project M&I Water Shortage Policy. Such policy shall be 

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

 (e) By entering into this Contract, the Contractor does not waive any legal 

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

contesting (i) the sufficiency of the manner in which any Project M&I Water Shortage Policy 

adopted after the effective date of this Contract was promulgated; (ii) the substance of such a 

policy; or (iii) the applicability of such a policy. By agreeing to the foregoing, the Contracting 

Officer does not waive any legal defenses or remedies that it may then have to assert in such a 

proceeding. 

26
Contract No. 14-06-200-5082A-IR1 

682 

683 

UNAVOIDABLE GROUNDWATER PERCOLATION

 13. Omitted. 

684 

685 

686 

687 

688 

689 

690 

RULES, REGULATIONS AND DETERMINATIONS

 14. The parties agree that the delivery of M&I Water or use of Federal facilities 

pursuant to this Contract is subject to Federal Reclamation law and the applicable rules and 

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

691 

692 

693 

694 

695 

WATER AND AIR POLLUTION CONTROL

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

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

shall obtain all required permits or licenses from the appropriate Federal, State, or local 

authorities. 

696 

697 

698 

699 

700 

701 

702 

703 

704 

705 

706 

707 

708 

709 

710 

711 

QUALITY OF WATER

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

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

Water to the Contractor in accordance with the water quality standards specified in subsection 

2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

October 27, 1986 (100 Stat. 3050), or other existing Federal laws. The United States is under no 

obligation to construct or furnish water treatment facilities to maintain or to improve the quality 

of Water Delivered to the Contractor pursuant to this Contract. The United States does not 

warrant the quality of Water Delivered to the Contractor pursuant to this Contract. 

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

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

highest level reasonably attainable as determined by the Contracting Officer. The Contractor 

shall be responsible for compliance with all State and Federal water quality standards applicable 

to surface and subsurface agricultural drainage discharges generated through the use of Federal 

or Contractor facilities or Project Water provided by the Contractor within the Contractor's 

Service Area. 

27
Contract No. 14-06-200-5082A-IR1 

712 WATER ACQUIRED BY THE CONTRACTOR

713 

714 

715 

716 

717 

718 

719 

720 

721 

722 

723 

724 

725 

726 

727 

728 

729 

730 

731 

732 

733 

734 

735 

736 

737 

738 

OTHER THAN FROM THE UNITED STATES

 17. (a) Omitted. 

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

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

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

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

Contracting Officer to be necessary, consistent with the following provisions: 

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

facilities and deliver said water to lands within the Contractor’s Service Area, subject to payment 

to the United States of an appropriate rate as determined by the applicable Project ratesetting 

policy and the Project use power policy, if such Project use power policy is applicable, each as 

amended, modified, or superseded from time to time. In addition, if electrical power is required 

to pump non-Project water through the facilities, the Contractor shall be responsible for 

obtaining the necessary power and paying the necessary charges therefore. 

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

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

purposes as determined by the Contracting Officer; (ii) reduce the quantity or quality of water 

available to other Project contractors; (iii) interfere with the delivery of contractual water 

entitlements to any other Project water service contractors; or (iv) interfere with the physical 

maintenance of the Project facilities; Provided, that nothing in this Article is intended to limit the 

United States’ obligation to pass the Contractor’s Diversion Water through Project storage 

facilities to the extent required under the applicable provisions of California law. 

 (3) The United States shall not be responsible for control, care, or 

distribution of the non-Project water before it is introduced into or after it is delivered from the 

Project facilities. The Contractor hereby releases and agrees to defend and indemnify the United 

States and their respective officers, agents, and employees, from any claim for damage to 

28
Contract No. 14-06-200-5082A-IR1 

739 

740 

741 

742 

743 

744 

745 

746 

747 

748 

749 

persons or property, direct or indirect, resulting from the acts of the Contractor or its officers, 

employees, agents or assigns, in (i) extracting or diverting non-Project water from any source, or 

(ii) diverting such non-Project water into Project facilities. 

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

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

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

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

Officer, the United States and the Contractor shall share priority to utilize the remaining capacity 

of the facilities declared to be available by the Contracting Officer for conveyance and 

transportation of non-Project water prior to any such remaining capacity being made available to 

non-Project contractors. 

750 OPINIONS AND DETERMINATIONS

751 

752 

753 

754 

755 

756 

757 

758 

759 

760 

761 

762 

763 

764 

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

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

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

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

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

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

provided in a timely manner. Nothing in subdivision (a) of Article 18 of this Contract is 

intended to or shall affect or alter the standard of judicial review applicable under Federal law to 

any opinion or determination implementing a specific provision of Federal law embodied in 

statute or regulation. 

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

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

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

promulgated by the Secretary. Such determinations shall be made in consultation with the 

29
Contract No. 14-06-200-5082A-IR1 

765 Contractor to the extent reasonably practicable. 

766 

767 

768 

769 

770 

771 

772 

773 

774 

775 

776 

777 

778 

779 

780 

781 

782 

783 

784 

785 

786 

787 

788 

789 

790 

COORDINATION AND COOPERATION

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

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

with other affected Project Contractors, in order to improve the operation and management of the 

Project. The communication, coordination, and cooperation regarding operations and 

management shall include, but not be limited to, any action which will or may materially affect 

the quantity or quality of Project Water supply, the allocation of Project Water supply, and 

Project financial matters including, but not limited to, budget issues. The communication, 

coordination, and cooperation provided for hereunder shall extend to all provisions of this 

Contract. Each party shall retain exclusive decision making authority for all actions, opinions, 

and determinations to be made by the respective party. 

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

Contractor, other affected Project Contractors, and the Contracting Officer shall arrange to meet 

with interested Project Contractors to develop a mutually agreeable, written Project-wide 

process, which may be amended as necessary separate and apart from this Contract. The goal of 

this process shall be to provide, to the extent practicable, the means of mutual communication 

and interaction regarding significant decisions concerning Project operation and management on 

a real-time basis. 

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

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

intent: 

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

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

the Contracting Officer will, as appropriate, seek authorizations for implementation of 

partnerships to improve water supply, water quality, and reliability. 

30
Contract No. 14-06-200-5082A-IR1 

791 

792 

793 

794 

795 

796 

797 

798 

799 

800 

801 

802 

803 

804 

805 

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

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

supply, water quality, and reliability of the Project for all Project purposes. 

 (3) The Secretary will coordinate with Project Contractors and the 

State of California to seek improved water resource management. 

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

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

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

annually, hold division level meetings to discuss Project operations, division level water 

management activities, and other issues as appropriate. 

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

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

constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 

Contractor or other interested stakeholders or to make decisions in a timely fashion as needed to 

protect health, safety, or the physical integrity of structures or facilities. 

806 CHARGES FOR DELINQUENT PAYMENTS

807 

808 

809 

810 

811 

812 

813 

814 

815 

816 

817 

818 

819 

820 

821 

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

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

date, the Contractor shall pay an interest charge for each day the payment is delinquent beyond 

the due date. When a payment becomes sixty (60) days delinquent, the Contractor shall pay an 

administrative charge to cover additional costs of billing and processing the delinquent payment. 

When a payment is delinquent ninety (90) days or more, the Contractor shall pay an additional 

penalty charge of six (6%) percent per year for each day the payment is delinquent beyond the 

due date. Further, the Contractor shall pay any fees incurred for debt collection services 

associated with a delinquent payment. 

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

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

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

Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate shall be 

determined as of the due date and remain fixed for the duration of the delinquent period. 

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

31
Contract No. 14-06-200-5082A-IR1 

822 

823 

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

accrued interest, and finally to the overdue payment. 

824 

825 

826 

827 

828 

829 

830 

831 

832 

833 

834 

835 

836 

837 

838 

839 

840 

841 

842 

843 

844 

845 

846 

847 

848 

849 

850 

851 

852 

853 

854 

855 

856 

857 

858 

859 

860 

EQUAL OPPORTUNITY

 21. During the performance of this Contract, the Contractor agrees as follows: 

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

employment because of race, color, religion, sex, or national origin. The Contractor will take 

affirmative action to ensure that applicants are employed, and that employees are treated during 

employment, without regard to their race, color, religion, sex, or national origin. Such action 

shall include, but not be limited to, the following: Employment, upgrading, demotion, or 

transfer; recruitment or recruitment advertising; layoff or termination, rates of payment or other 

forms of compensation; and selection for training, including apprenticeship. The Contractor 

agrees to post in conspicuous places, available to employees and applicants for employment, 

notices to be provided by the Contracting Officer setting forth the provisions of this 

nondiscrimination clause. 

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

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

consideration for employment without discrimination because of race, color, religion, sex, or 

national origin. 

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

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

to be provided by the Contracting Officer, advising the said labor union or workers' 

representative of the Contractor's commitments under Section 202 of Executive Order 11246 of 

September 24, 1965, and shall post copies of the notice in conspicuous places available to 

employees and applicants for employment. 

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

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

of the Secretary of Labor. 

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

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

pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with 

such rules, regulations, and orders. 

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

clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

ineligible for further Government contracts in accordance with procedures authorized in said 

amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

32
Contract No. 14-06-200-5082A-IR1 

861 

862 

863 

864 

865 

866 

867 

otherwise provided by law. 

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

every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

provisions will be binding upon each subcontractor or vendor. The Contractor will take such 

action with respect to any subcontract or purchase order as may be directed by the Secretary of 

Labor as a means of enforcing such provisions, including sanctions for noncompliance: 

Provided, however, That in the event the Contractor becomes involved in, or is threatened with, 

litigation with a subcontractor or vendor as a result of such direction, the Contractor may request 

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

868 

869 

870 

871 

872 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

873 

874 

875 

876 

877 

878 

879 

880 

881 

882 

883 

884 

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

this Contract is a general obligation of the Contractor notwithstanding the manner in which the 

obligation may be distributed among the Contractor's water users and notwithstanding the default 

of individual water users in their obligations to the Contractor. 

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

to receiving benefits under this Contract. The United States shall not make water available to the 

Contractor through Project facilities during any period in which the Contractor may be in arrears 

in the advance payment of water rates due the United States. The Contractor shall not furnish 

water made available pursuant to this Contract for lands or parties which are in arrears in the 

advance payment of water rates levied or established by the Contractor. 

 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

obligation to require advance payment for water rates which it levies. 

885 

886 

887 

888 

889 

890 

891 

892 

893 

894 

895 

896 

897 

COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

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

Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other applicable civil rights 

laws, as well as with their respective implementing regulations and guidelines imposed by the 

U.S. Department of the Interior and/or Bureau of Reclamation. 

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

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

denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

Contractor agrees to immediately take any measures necessary to implement this obligation, 

including permitting officials of the United States to inspect premises, programs, and documents. 

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

33
Contract No. 14-06-200-5082A-IR1 

898 

899 

900 

901 

902 

903 

904 

905 

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

Federal financial assistance extended after the date hereof to the Contractor by the Bureau of 

Reclamation, including installment payments after such date on account of arrangements for 

Federal financial assistance which were approved before such date. The Contractor recognizes 

and agrees that such Federal assistance will be extended in reliance on the representations and 

agreements made in this Article, and that the United States reserves the right to seek judicial 

enforcement thereof. 

906 

907 

PRIVACY ACT COMPLIANCE

 24. Omitted. 

908 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

909 

910 

911 

912 

913 

914 

915 

916 

 25. In addition to all other payments to be made by the Contractor pursuant to this 

Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

of direct cost incurred by the United States for work requested by the Contractor associated with 

this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

contract administration. 

917 

918 

919 

920 

921 

922 

923 

924 

925 

926 

927 

WATER CONSERVATION

 26. (a) Prior to the delivery of water provided from or conveyed through 

Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor 

shall be implementing an effective water conservation and efficiency program based on the 

Contractor's water conservation plan that has been determined by the Contracting Officer to meet 

the conservation and efficiency criteria for evaluating water conservation plans established under 

Federal law. The water conservation and efficiency program shall contain definite water 

conservation objectives, appropriate economically feasible water conservation measures, and 

time schedules for meeting those objectives. Continued Project Water delivery pursuant to this 

Contract shall be contingent upon the Contractor’s continued implementation of such water 

conservation program. In the event the Contractor's water conservation plan or any revised water 

34
Contract No. 14-06-200-5082A-IR1 

928 

929 

930 

931 

932 

933 

934 

935 

936 

937 

938 

939 

940 

941 

942 

943 

944 

945 

946 

947 

948 

949 

950 

conservation plan completed pursuant to subdivision (d) of Article 26 of this Contract have not 

yet been determined by the Contracting Officer to meet such criteria, due to circumstances which 

the Contracting Officer determines are beyond the control of the Contractor, water deliveries 

shall be made under this Contract so long as the Contractor diligently works with the Contracting 

Officer to obtain such determination at the earliest practicable date, and thereafter the Contractor 

immediately begins implementing its water conservation and efficiency program in accordance 

with the time schedules therein. 

 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall 

implement the Best Management Practices identified by the time frames issued by the California 

Urban Water Conservation Council for such M&I Water unless any such practice is determined 

by the Contracting Officer to be inappropriate for the Contractor. 

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

status of its implementation of the water conservation plan on the reporting dates specified in the 

then existing conservation and efficiency criteria established under Federal law. 

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

plan to reflect the then-current conservation and efficiency criteria for evaluating water 

conservation plans established under Federal law and submit such revised water management 

plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

determine if the water conservation plan meets Reclamation’s then-current conservation and 

efficiency criteria for evaluating water conservation plans established under Federal law. 

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

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

951 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

952 

953 

 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

35
Contract No. 14-06-200-5082A-IR1 

954 

955 

956 

957 

958 

hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

Area. Any such water shall not be considered Project Water under this Contract. In addition, 

this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

any water user within the Contractor's Service Area acquires or has available under any other 

contract pursuant to Federal Reclamation law. 

959 OPERATION AND MAINTENANCE BY THE OPERATING NON-FEDERAL ENTITY

960 28. Omitted. 

961 

962 

963 

964 

965 

966 

CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

 29. The expenditure or advance of any money or the performance of any obligation of 

the United States under this Contract shall be contingent upon appropriation or allotment of 

funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

obligations under this Contract. No liability shall accrue to the United States in case funds are 

not appropriated or allotted. 

967 

968 

969 

970 

971 

972 

973 

974 

975 

976 

977 

978 

979 

980 

981 

982 

983 

BOOKS, RECORDS, AND REPORTS

 30. (a) The Contractor shall establish and maintain accounts and other books and 

records pertaining to administration of the terms and conditions of this Contract, including: the 

Contractor's financial transactions, water supply data, and Project land and right-of-way 

agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

data; and other matters that the Contracting Officer may require. Reports thereon shall be 

furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

Officer may require. Subject to applicable Federal laws and regulations, each party to this 

Contract shall have the right during office hours to examine and make copies of the other party's 

books and records relating to matters covered by this Contract. 

 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

books, records, or other information shall be requested from the Contractor by the Contracting 

Officer unless such books, records, or information are reasonably related to the administration or 

performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

time within which to provide the requested books, records, or information. 

 (c) Omitted. 

36
Contract No. 14-06-200-5082A-IR1 

984 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

985 

986 

987 

988 

989 

990 

991 

992 

 31. (a) The provisions of this Contract shall apply to and bind the successors and 

assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

therein shall be valid until approved in writing by the Contracting Officer. 

 (b) The assignment of any right or interest in this Contract by either party 

shall not interfere with the rights or obligations of the other party to this Contract absent the 

written concurrence of said other party. 

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

approval of any proposed assignment. 

993 

994 

995 

996 

997 

998 

999 

1000 

1001 

1002 

1003 

1004 

1005 

1006 

1007 

1008 

1009 

SEVERABILITY

 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

an association or other form of organization whose primary function is to represent parties to 

Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

enforceability of a provision included in this Contract and said person, entity, association, or 

organization obtains a final court decision holding that such provision is legally invalid or 

unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

final court decision identify by mutual agreement the provisions in this Contract which must be 

revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

The time periods specified above may be extended by mutual agreement of the parties. Pending 

the completion of the actions designated above, to the extent it can do so without violating any 

applicable provisions of law, the United States shall continue to make the quantities of Project 

Water specified in this Contract available to the Contractor pursuant to the provisions of this 

Contract which were not found to be legally invalid or unenforceable in the final court decision. 

37
Contract No. 14-06-200-5082A-IR1 

1010 RESOLUTION OF DISPUTES

1011 

1012 

1013 

1014 

 33. Should any dispute arise concerning any provisions of this Contract, or the 

parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

Officer referring any matter to Department of Justice, the party shall provide to the other party 

30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

required where a delay in commencing an action would prejudice the interests of the party that 

intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

United States may have. 

1015 

1016 

1017 

1018 

1019 

1020 

1021 

1022 

1023 

1024 

OFFICIALS NOT TO BENEFIT

 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

Contractor shall benefit from this Contract other than as a water user or landowner in the same 

manner as other water users or landowners. 

1025 

1026 

1027 

1028 

1029 

1030 

1031 

1032 

1033 

1034 

1035 

1036 

1037 

CHANGES IN CONTRACTOR’S SERVICE AREA

 35. (a) While this Contract is in effect, no change may be made in the 

Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

or otherwise, except upon the Contracting Officer's written consent. 

 (b) Within 30 days of receipt of a request for such a change, the Contracting 

Officer will notify the Contractor of any additional information required by the Contracting 

Officer for processing said request, and both parties will meet to establish a mutually agreeable 

schedule for timely completion of the process. Such process will analyze whether the proposed 

change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

(ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

Contracting Officer shall comply with the NEPA and ESA. The Contractor will be responsible 

38
Contract No. 14-06-200-5082A-IR1 

1038 

1039 

for all costs incurred by the Contracting Officer in this process, and such costs will be paid in 

accordance with Article 25 of this Contract. 

1040 

1041 

1042 

FEDERAL LAWS

 36. By entering into this Contract, the Contractor does not waive its rights to contest 

the validity or application in connection with the performance of the terms and conditions of this 

Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

the terms and conditions of this Contract unless and until relief from application of such Federal 

law or regulation to the implementing provision of the Contract is granted by a court of 

competent jurisdiction. 

1043 

1044 

1045 

1046 

1047 

1048 

1049 

1050 

1051 

1052 

1053 

1054 

NOTICES

 37. Any notice, demand, or request authorized or required by this Contract shall be 

deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

delivered to the Area Manager, Bureau of Reclamation, 7794 Folsom Dam Road, Folsom, 

California 95630-1777, and on behalf of the United States, when mailed, postage prepaid, or 

delivered to the Board of Directors of the Placer County Water Agency, P. O. Box 6570, 

Auburn, California 95604. The designation of the addressee or the address may be changed by 

notice given in the same manner as provided in this Article for other notices. 

1055 

1056 

1057 

1058 

1059 

1060 

1061 

CONFIRMATION OF CONTRACT

38. The Contractor, after the execution of this Contract, shall furnish to the 

Contracting Officer evidence that pursuant to the laws of the State of California, the Contractor 

is a legally constituted entity and the Contract is lawful, valid, and binding on the Contractor. 

This Contract shall not be binding on the United States until such evidence has been provided to 

the Contracting Officer’s satisfaction. 

1062 

1063 

1064 

1065 

1066 

1067 

1068 

CONTRACT DRAFTING CONSIDERATIONS

39. This Contract has been negotiated and reviewed by the parties hereto, each of 

whom is sophisticated in the matters to which this Contract pertains. Articles 1 through 39 of the 

Contract have been drafted, negotiated, and reviewed by the parties, and no one party shall be 

considered to have drafted the stated articles. 

39
Contract No. 14-06-200-5082A-IR1 

40

1069 

1070 

1071 

1072 

1073 

1074 

1075 

1076 

1077 

1078 

1079 

1080 

1081 

1082 

1083 

 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

the day and year first above written. 

 THE UNITED STATES OF AMERICA 

 By: ______________________________________ 

 Regional Director, Mid-Pacific Region 

 Bureau of Reclamation 

(SEAL) 

 PLACER COUNTY WATER AGENCY 

 By: ______________________________________ 

 Chair of the Board of Directors 

Attest: 

By: ______________________________ 

 Secretary of the Board of Directors 
EXHIBIT A

Placer County Water Agency 

[Map or Description of Service Area] 
EXHIBIT B

RATES AND CHARGES

(PLACEHOLDER)