R. O. Draft 10/06-2003 

Contract No. 14-06-200-4736A-R-1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

CONTRACT BETWEEN THE UNITED STATES AND

DRISCOLL STRAWBERRY ASSOCIATES, INCORPORATED,

DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES,

SETTLING WATER RIGHTS DISPUTES AND

 PROVIDING FOR PROJECT WATER 

Table of Contents

Article No. Title Page No.

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

Explanatory Recitals ................................................................................ 2-3 

1 Definitions................................................................................................ 3-6 

2 Term of Settlement Contract........................................................................7 

3 Water to be Furnished to Contractor........................................................ 7-9 

4 Return Flow ........................................................................................... 9-10 

5 Constraints on the Availability of Water ...................................................10 

6 Integrated Water Management and Partnerships ................................. 10-11 

7 Use of Water Furnished to Contractor................................................. 11-12 

8 Rate and Method of Payment for Water .............................................. 12-16 

9 Agreement on Water Quantities........................................................... 16-19 

10 Measurement of Water......................................................................... 19-20 

11 Rules and Regulations................................................................................20 

12 General Obligation--Benefits Conditioned 

 Upon Payment.........................................................................................20 

13 Charges for Delinquent Payments ....................................................... 20-21 

14 Quality of Water ........................................................................................21 

15 Water and Air Pollution Control................................................................21 

16 Equal Opportunity................................................................................ 21-22 

17 Compliance With Civil Rights Laws 

 and Regulations.......................................................................................23 

18 Mingling of Contractor’s Project and 

 Non-Project Water ..................................................................................23 
Contract No. 14-06-200-4736A-R-1 

Table of Contents - continued

Article No. Title Page No. 

19 Books, Records, and Reports.....................................................................23 

20 Change of Place of Use..............................................................................23 

21 Consolidation of Contracting Entities........................................................23 

22 Notices .......................................................................................................23 

23 Assignment Limited--Successors and 

 Assigns Obligated ............................................................................. 23-24 

24 Officials Not to Benefit..............................................................................24 

25 Contingent Upon Appropriation or 

 Allotment of Funds .................................................................................24 

26 Confirmation of Settlement Contract.........................................................24 

27 Unavoidable Groundwater Percolation......................................................24 

28 Privacy Act Compliance ...................................................................... 24-25 

29 Water Conservation ............................................................................. 25-26 

30 Opinions and Determinations .............................................................. 26-27 

31 Contractor to Pay Certain Miscellaneous Costs................................... 27-28 

32 Waiver of Default ......................................................................................28 

33 Contract Assignment or Termination Upon Transfer of Land............. 28-29 

34 Termination................................................................................................29 

Signature Page ...........................................................................................30 

Exhibit A Schedule of Monthly Diversions of Water 

Exhibit B Map of Contractor’s Ownership 

Exhibit C Omitted 

Exhibit D Water Rates and Charges 
R. O. Draft 10/06-2003 

1 Contract No. 14-06-200-4736A-R-1 

2 UNITED STATES 

3 DEPARTMENT OF THE INTERIOR 

4 BUREAU OF RECLAMATION 

5 Central Valley Project, California 

6 CONTRACT BETWEEN THE UNITED STATES AND

7 DRISCOLL STRAWBERRY ASSOCIATES, INCORPORATED,

8 DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES

9 SETTLING WATER RIGHTS DISPUTES AND

10 PROVIDING FOR PROJECT WATER 

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

12 into by THE UNITED STATES OF AMERICA, hereinafter referred to as the United States, 

13 made this _____ day of ____________________, 2004, pursuant to the applicable authority 

14 granted to it generally in the Act of June 17, 1902 (32 Stat. 388), and acts amendatory or 

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

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

17 including but not limited to Sections 9 and 14 thereto, July 2, 1956 (70 Stat. 483), June 21, 1963 

18 (77 Stat. 68), October 12, 1982 (96 Stat. 1262), October 27, 1986 (100 Stat. 3050), as amended, 

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

20 referred to as Federal Reclamation law, and DRISCOLL STRAWBERRY ASSOCIATES, 

21 INCORPORATED, hereinafter referred to as the Contractor, a corporation, acting pursuant to 

22 Sections 12003 and 12004 of the California Water Code, with its principal place of business in 

23 California; 

24 WITNESSETH, that: 
Contract No. 14-06-200-4736A-R-1 

2

25 EXPLANATORY RECITALS

[1 26 st] WHEREAS, the United States has constructed and is operating the Central Valley 

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

[2 28 nd] WHEREAS, the Contractor has rights to divert, is diverting, and will continue to 

29 divert for reasonable beneficial use, water from the natural flow of the Sacramento River and 

30 tributaries thereto, that would have been flowing therein if the Central Valley Project were not in 

31 existence; and 

[3 32 rd] WHEREAS, the construction and operation of the integrated and coordinated 

33 Central Valley Project has changed and will further change the regimen of the Sacramento, 

34 American, San Joaquin, and Trinity Rivers and the Sacramento-San Joaquin Delta from 

35 unregulated flow to regulated flow; and 

[4th 36 ] WHEREAS, the United States has rights to divert, is diverting, and will continue 

37 to divert waters from said Rivers and said Delta in connection with the operation of said Central 

38 Valley Project; and 

[5th 39 ] WHEREAS, the Contractor and the United States had a dispute over the 

40 respective rights of the parties to divert and use water from the regulated flow of the Sacramento 

41 River which threatened to result in litigation, and as a means to settle that dispute entered into 

42 Contract No. 14-06-200-4736A, hereinafter referred to as the Existing Contract, which 

43 established terms for the delivery to the Contractor of Central Valley Project Water, and the 

44 quantities of Base Supply the United States and the Contractor agreed may be diverted by the 

45 Contractor from the Sacramento River pursuant to such contract; and 

[6th 46 ] WHEREAS, the United States and the Contractor disagree with respect to the 

47 authority of the United States to change the quantities of Base Supply and/or Project Water 
Contract No. 14-06-200-4736A-R-1 

3

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

49 the Existing Contract, and other issues related thereto. That dispute was the subject of litigation 

50 in a lawsuit entitled Glenn-Colusa Irrigation District, et al. v. United States, et al. [Civ. No. S51 01-1816 GEB/JFM (E.D. Cal.)], but that litigation was dismissed, without prejudice, pursuant to 

52 a stipulation of dismissal filed by the parties thereto on August 29, 2002. Notwithstanding that 

53 dismissal, the Contractor and the United States enter into this Settlement Contract to renew the 

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

55 the laws of the State of California; and

[7th 56 ] WHEREAS, to assure the Contractor of the enjoyment and use of the regulated 

57 flow of the said Rivers and the Delta, and to provide for the economical operation of the Central 

58 Valley Project by, and the reimbursement to, the United States for expenditures made for said 

59 Project. 

60 NOW, THEREFORE, in consideration of the performance of the herein contained 

61 provisions, conditions, and covenants, it is agreed as follows:

62 DEFINITIONS

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

64 hereof, the term: 

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

66 Articles 3 and 5 which may be diverted by the Contractor from the Sacramento River each month 

67 during the period April through October of each Year without payment to the United States for 

68 such quantities diverted; 

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

70 Sacramento River Basinwide Water Management Plan, dated _______, developed by 
Contract No. 14-06-200-4736A-R-1 

4

71 Glenn-Colusa Irrigation District, Maxwell Irrigation District, Natomas Central Mutual Water 

72 Company, Pelger Mutual Water Company, Princeton-Codora Glenn Irrigation District, Provident 

73 Irrigation District, Reclamation District 108, Sutter Mutual Water Company, Anderson74 Cottonwood Irrigation District, Meridian Farms Water Company, Reclamation District 1004, and 

75 the U.S. Bureau of Reclamation; 

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

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

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

79 Charges. The type and amount of each Charge shall be specified in Exhibit D; 

80 (d) “Contract Total” shall mean the sum of the Base Supply and Project Water 

81 available for diversion by the Contractor for the period April 1 through October 31; 

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

83 eventualities exists: 

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

85 Water Year, as such forecast is made by the United States on or before 

86 February 15 and reviewed as frequently thereafter as conditions and information warrant, is 

87 equal to or less than 3.2 million acre-feet; or 

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

89 in the immediately prior Water Year or series of successive prior Water Years each of which had 

90 inflows of less than 4 million acre-feet, together with the forecasted deficiency for the current 

91 Water Year, exceed 800,000 acre-feet. 

92 For the purpose of determining a Critical Year, the computation of inflow to 

93 Shasta Lake shall be performed in a manner that considers the extent of upstream development 
Contract No. 14-06-200-4736A-R-1 

5

94 above Shasta Lake during the year in question, and shall be used as the full natural flow to 

95 Shasta Lake. In the event that major construction has occurred or occurs above Shasta Lake after 

96 September 1, 1963, and which has materially altered or alters the regimen of the stream systems 

97 contributing to Shasta Lake, the computed inflow to Shasta Lake used to define a Critical Year 

98 will be adjusted to eliminate the effect of such material alterations. After consultation with the 

99 State of California, the National Weather Service, and other recognized forecasting agencies, the 

100 Contracting Officer will select the forecast to be used and will make the details of it available to 

101 the Contractor. The same forecasts used by the United States for the operation of the Project 

102 shall be used to make the forecasts hereunder; 

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

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

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

106 delivered in accordance with Section 204 of the Reclamation Reform Act of October 12, 1982 

107 (96 Stat. 1263), as amended, hereinafter referred to as RRA;

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

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

110 Reclamation law; 

111 (i) “Full Cost Rate” shall mean that water rate described in 

112 Sections 205(a)(3) or 202(3) of the RRA, whichever is applicable; 

113 (j) Omitted; 

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

115 nonexempt land, as provided in 43 CFR 426.2; 
Contract No. 14-06-200-4736A-R-1 

6

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

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

118 (m) “Project Water” shall mean all Surface Water diverted or scheduled to be 

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

120 from the Sacramento River which is in excess of the Base Supply. The United States recognizes 

121 the right of the Contractor to make arrangements for acquisition of water from projects of others 

122 than the United States for delivery through the Sacramento River and tributaries subject to 

123 written agreement between Contractor and the United States as to identification of such water, 

124 which water, when so identified, shall not be deemed Project Water under this Settlement 

125 Contract; 

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

127 by the Contracting Officer in accordance with the then current applicable water ratesetting 

128 policies for the Project, as described in subdivision (a) of Article 8 of this Settlement Contract; 

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

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

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

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

133 surface water under California law; 

134 (q) “Water Year” shall mean the period commencing with October 1 of 1 year 

135 and extending through September 30 of the next; and 

136 (r) “Year” shall mean a calendar year. 
Contract No. 14-06-200-4736A-R-1 

7

137 TERM OF SETTLEMENT CONTRACT

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

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

140 mutually agreeable to the parties hereto, renewals may be made for successive periods not to 

141 exceed 40 years each. The terms and conditions of each renewal shall be agreed upon not later 

142 than 1 year prior to the expiration of the then existing Settlement Contract. 

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

144 pertaining thereto, upon written request by the Contractor of the Secretary made not later than 1 

145 year prior to the expiration of this Settlement Contract, whenever, account being taken of the 

146 amount then credited to the costs of construction of water supply works, the remaining amount of 

147 construction costs of water supply work which is properly assignable for ultimate return by the 

148 Contractor as established by the Secretary of the Interior pursuant to (3) of Section 1 of Public 

149 Law 643 (70 Stat. 483), probably can be repaid to the United States within the term of a contract 

150 under subsection 9(d) of the 1939 Reclamation Project Act (53 Stat. 1187), the relevant portions 

151 of this Settlement Contract may be converted to a contract under said subsection 9(d) upon terms 

152 and conditions mutually agreeable to the United States and the Contractor. The Secretary shall 

153 make a determination 10 years after the date of execution of this Settlement Contract, and every 

154 5 years thereafter, of whether a conversion to a contract under said subsection 9(d) can be 

155 accomplished pursuant to Public Law 643. Notwithstanding any provision of this Settlement 

156 Contract, the Contractor reserves and shall have all rights and benefits under Public Law 643. 

157 WATER TO BE FURNISHED TO CONTRACTOR

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

159 expressed, the Contractor is hereby entitled and authorized to divert from the Sacramento River 
Contract No. 14-06-200-4736A-R-1 

8

160 at the locations shown in Exhibit A, for beneficial use within the area delineated on Exhibit B, 

161 (both Exhibits are attached hereto and made a part hereof), the Contract Total designated in 

162 Exhibit A, or any revision thereof. 

163 (b) No sale, transfer, exchange, or other disposal of any of the Contract Total 

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

165 Exhibit B shall be made by the Contractor without first obtaining the written consent of the 

166 Contracting Officer. Such consent will not be unreasonably withheld and a decision will be 

167 rendered in a timely manner. For short-term actions that will occur within 1 year or less, the 

168 decision will be rendered within 30 days after receipt of a complete written proposal. For long169 term actions that will occur in a period longer than 1 year, the decision will be rendered within 

170 90 days after receipt of a complete written proposal. For a proposal to be deemed complete by 

171 the Contracting Officer, it must comply with all provisions required by State and Federal law, 

172 including information sufficient to enable the Contracting Officer to comply with the National 

173 Environmental Policy Act, the Endangered Species Act, and applicable rules or regulations then 

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

175 or effectuate the sale, transfer, exchange or other disposal of Base Supply. Such use of Federal 

176 facilities will be the subject of a separate agreement to be entered into between the Contractor 

177 and Reclamation. 

178 (c) For the purpose of determining whether Section 3405(a)(1)(M) of the 

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

180 Officer acknowledges that the Contractor is within a county, watershed, or other area of origin, 

181 as those terms are utilized under California law, of water that constitutes the natural flow of the 
Contract No. 14-06-200-4736A-R-1 

9

182 Sacramento River and its tributaries above the confluence of the American and Sacramento 

183 Rivers. 

184 (d) Nothing herein contained shall prevent the Contractor from diverting 

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

186 Exhibit B or elsewhere to the extent authorized under the laws of the State of California. 

187 (e) The United States assumes no responsibility for and neither it nor its 

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

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

190 (2) The control, carriage, handling, use, disposal, or distribution of 

191 water diverted by the Contractor outside the facilities constructed and then being operated and 

192 maintained by or on behalf of the United States; 

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

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

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

196 referred to facilities; and 

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

198 manner caused by a shortage of water whether such shortage be on account of errors in 

199 operation, drought, or unavoidable causes. 

200 RETURN FLOW

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

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

203 from water diverted by the Contractor hereunder and which escapes or is discharged beyond the 

204 boundaries of the lands shown on Exhibit B; Provided, that this shall not be construed as 
Contract No. 14-06-200-4736A-R-1 

10

205 claiming for the United States any right to such water which is recovered by the Contractor 

206 pursuant to California law from within the boundaries of the lands shown on Exhibit B, and 

207 which is being used pursuant to this Settlement Contract for surface irrigation or underground 

208 storage for the benefit of the lands shown on Exhibit B by the Contractor. 

209 CONSTRAINTS ON THE AVAILABILITY OF WATER

210 5. In a Critical Year, the Contractor shall have the option to: 

211 (a) Irrigate not in excess of 75 percent of their irrigable acreage shown on 

212 Exhibit A; or 

213 (b) Divert from the Sacramento River not in excess of 75 percent of the 

214 Contract Total shown on Exhibit A, subject to the installation of measurement equipment 

215 satisfactory to the Contracting Officer. The Contractor shall install, operate, and maintain this 

216 equipment at the Contractor’s expense. The Contractor shall submit, by April 1 of that Critical 

217 Year, a written schedule to the Contracting Officer indicating the Contract Total to be diverted 

218 by the Contractor during each month of that Critical Year under this Settlement Contract. 

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

220 refunded or credited upon amounts to become due to the United States from the Contractor under 

221 the provisions hereof in the ensuing Year. To the extent of such deficiency such adjustment of 

222 overpayment shall constitute the sole remedy of the Contractor. 

223 INTEGRATED WATER MANAGEMENT AND PARTNERSHIPS

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

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

226 and the Contractor will work in partnership and with others within the Sacramento Valley, 

227 including other Contractors, to facilitate the better integration within the Sacramento Valley of 
Contract No. 14-06-200-4736A-R-1 

11

228 all water supplies including, but not limited to, the better management and integration of surface 

229 water and groundwater, the development and better utilization of surface water storage, the 

230 effective utilization of waste, seepage and return flow water, and other operational and 

231 management options that may be identified in the future. 

232 USE OF WATER FURNISHED TO CONTRACTOR

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

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

235 agricultural purposes without the written consent of the Contracting Officer. For purposes of this 

236 Settlement Contract, “agricultural purposes” includes, but is not restricted to, the irrigation of 

237 crops, the watering of livestock, incidental domestic use including related landscape irrigation, or 

238 underground water replenishment. 

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

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

241 of this Settlement Contract undertaken pursuant to Section 7 of the Endangered Species Act of 

242 1973, as amended, that are within the Contractor’s legal authority to implement. The Contractor 

243 shall comply with the limitations or requirements imposed by environmental documentation 

244 applicable to the Contractor and within its legal authority to implement. The Existing Contract, 

245 which evidences in excess of 40 years of diversions, for agricultural uses, of the quantities of 

246 water provided for in Article 3, and the underlying water rights of the Contractor will be 

247 considered in developing an appropriate base-line for the Biological Assessment prepared 

248 pursuant to the Endangered Species Act, and in any other needed environmental review. 

249 Nothing herein shall be construed to prevent the Contractor from challenging or seeking judicial 
Contract No. 14-06-200-4736A-R-1 

12

250 relief in a court of competent jurisdiction with respect to any biological opinion or other 

251 environmental documentation referred to in this Article. 

252 RATE AND METHOD OF PAYMENT FOR WATER

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

254 this Article for each acre of land irrigated in each Year. 

255 Such payments shall be at Rates and Charges established in accordance with: (i) 

256 the Secretary’s then current ratesetting policies for the Project; and (ii) applicable Reclamation 

257 law and associated rules and regulations, or policies: Provided, that if the Contractor desires to 

258 use Project Water for other than agricultural use the Rates and Charges set forth above will be 

259 adjusted by the Contracting Officer to the applicable Rates and Charges for such use. The Rates 

260 and Charges applicable to the Contractor upon execution of this Settlement Contract are set forth 

261 in Exhibit D, as may be revised annually. The Secretary’s ratesetting policies for the Project 

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

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

264 Charges as follows: 

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

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

267 October 1, of the current Year, through September 30, of the following Year, and the basis for 

268 such estimate. The Contractor shall be allowed not less than 2 months to review and comment 

269 on such estimates. On or before September 15 of each Year, the Contracting Officer shall notify 

270 the Contractor in writing of the Charges to be in effect during the period October 1 of the current 

271 Year, through September 30, of the following Year, and such notification shall revise Exhibit D. 
Contract No. 14-06-200-4736A-R-1 

13

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

273 available to the Contractor an estimate of the Rates for Project Water for the following Year and 

274 the computations and cost allocations upon which those Rates are based. The Contractor shall be 

275 allowed not less than 2 months to review and comment on such computations and cost 

276 allocations. By December 31 of each Year, the Contracting Officer shall provide the Contractor 

277 with the final Rates to be in effect for the upcoming Year, and such notification shall revise 

278 Exhibit D. 

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

280 following manner: 

281 (1) With respect to Rates and Charges, on or before May 1 of each 

282 Year, the Contractor shall pay the United States one-half the total amount payable pursuant to 

283 subdivision (a) of this Article and the remainder shall be paid on or before July 1 or such later 

284 date or dates as may be specified by the United States in a written notice to the Contractor. 

285 (2) The amount to be paid on or before May 1 of each Year shall be 

286 based on a written estimate, provided to the Contracting Officer by the Contractor on or before 

287 April 1 of each Year, of the total area to be irrigated during the ensuing irrigation season. 

288 (3) The amount to be paid on or before July 1 shall be equal to the 

289 difference between the amount paid on May 1 and the total amount due for the Year, based on 

290 the total area actually irrigated prior to July 1. 

291 (4) If additional areas are placed under irrigation on or after July 1, 

292 additional payment shall be made in advance of such additional irrigation at the Rates and 

293 Charges shown in Exhibit D for each additional acre placed under irrigation. 
Contract No. 14-06-200-4736A-R-1 

14

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

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

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

297 relating to the delivery of Project Water or the delivery of non-Project Water through Project 

298 facilities shall be allocated and applied in accordance with Federal Reclamation law and the 

299 associated rules or regulations, and the then current Project ratesetting policies for irrigation 

300 water. 

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

302 administration of the financial terms and conditions of its long-term water service and Settlement 

303 Contracts, in accordance with applicable Federal standards, so as to reflect the application of 

304 Project costs and revenues. The Contracting Officer shall, each Year upon request of the 

305 Contractor, provide to the Contractor a detailed accounting of all Project and Contractor expense 

306 allocations, the disposition of all Project and Contractor revenues, and a summary of all water 

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

308 negotiations to resolve any discrepancies or disputes relating to accountings, reports, or 

309 information. 

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

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

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

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

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

315 the mechanisms, policies, and procedures for any of those purposes while this Settlement 

316 Contract is in effect without amendment of this Settlement Contract. 
Contract No. 14-06-200-4736A-R-1 

15

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

318 ratesetting policies for the Project will be established to recover only reimbursable operation and 

319 maintenance (including any deficits) and capital costs of the Project, as those terms are used in 

320 the then-current Project ratesetting policies, and interest, where appropriate, except in instances 

321 where a minimum Rate is applicable in accordance with the relevant Project ratesetting policy. 

322 Proposed changes of significance in practices which implement the ratesetting policies for the 

323 Project will not be implemented until the Contracting Officer has provided the Contractor an 

324 opportunity to discuss the nature, need, and impact of the proposed change. The Contractor 

325 retains all rights to challenge the validity of Rates and Charges imposed pursuant to this 

326 Settlement Contract, including but not limited to operation and maintenance expenses and 

327 operation and maintenance deficits, in an appropriate administrative or judicial proceeding. 

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

329 for Project Water transferred, exchanged, or otherwise disposed of, by the Contractor shall be the 

330 Contractor’s Rates adjusted upward or downward to reflect the changed costs of delivery (if any) 

331 of the transferred, exchanged, or otherwise disposed of Project Water to the transferee’s point of 

332 delivery in accordance with the then-current ratesetting policies for the Project. Except as 

333 provided in subsection 3407(d)(2)(A) of the CVPIA, the Charges for Project Water transferred, 

334 exchanged, or otherwise disposed of, by the Contractor shall be the Contractor’s Charges 

335 specified in Exhibit D. If the Contractor is receiving lower Rates and Charges because of 

336 inability to pay and is transferring, exchanging, or otherwise disposing of Project Water to 

337 another entity whose Rates and Charges are not adjusted due to inability to pay, the Rates and 

338 Charges for transferred, exchanged, or otherwise disposed of Project Water shall be the 

339 Contractor’s Rates and Charges unadjusted for ability to pay. 
Contract No. 14-06-200-4736A-R-1 

16

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

341 Officer is authorized to adjust determinations of ability to pay every 5 years. 

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

343 Article shall be made at the office of the Bureau of Reclamation, Mid-Pacific Region, File No. 

344 11546, P.O. Box 6000, San Francisco, California 94160-1546, or at such other place as the 

345 United States may designate in a written notice to the said Contractor. Payments shall be made 

346 by cash transaction, wire, or any other mechanism as may be agreed to in writing by the 

347 Contractor and the Contracting Officer. In event there should be a default in the payment of the 

348 amount due, the delinquent payment provisions of Article 13 shall apply. The Contractor shall 

349 not be relieved of the whole or any part of its said obligation by, on account of, or 

350 notwithstanding, as the case may be its failure, refusal, or neglect to divert the quantity of Project 

351 Water shown on Exhibit A. 

352 AGREEMENT ON WATER QUANTITIES

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

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

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

356 Project Water which may be diverted by the Contractor from the Sacramento River for beneficial 

357 use on the land shown on Exhibit B which said diversion, use, and allocation shall not be 

358 disturbed so long as the Contractor shall fulfill all of its obligations hereunder; 

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

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

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

362 Contractor against others than the United States or of the United States against any person other 
Contract No. 14-06-200-4736A-R-1 

17

363 than the Contractor: Provided, however, that in the event the Contractor, the United States, or 

364 any other person shall become a party to a general adjudication of rights to the use of water of 

365 the Sacramento River system, this Settlement Contract shall not jeopardize the rights or position 

366 of either party hereto or of any other person and the rights of all such persons in respect to the 

367 use of such water shall be determined in such proceedings the same as if this Settlement Contract 

368 had not been entered into, and if final judgment in any such general adjudication shall determine 

369 that the rights of the parties hereto are different from the rights as assumed herein, the parties 

370 shall negotiate an amendment to give effect to such judgment. In the event the parties are unable 

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

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

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

374 failure to reach agreement on an amendment within 60 days of the end of mediation will cause 

375 the immediate termination of this Settlement Contract. 

376 (c) In the event that the California State Water Resources Control Board or a 

377 court of competent jurisdiction issues a final decision or order modifying the terms and 

378 conditions of the water rights of either party to this Settlement Contract in order to impose Bay379 Delta water quality obligations, the Contractor and the United States shall promptly meet to 

380 determine whether or not to modify any of the terms of this Settlement Contract to comply with 

381 the final decision or order, including, but not limited to, the applicability of the rescheduling 

382 charge in Article 3(c)(1) of this Settlement Contract. If within 60 days of the date of the issuance 

383 of the final decision or order the parties are not able to reach agreement regarding either the need 

384 to modify this Settlement Contract or the manner in which this Settlement Contract is to be 

385 modified, the parties shall promptly retain a neutral mediator, experienced in resolving water 
Contract No. 14-06-200-4736A-R-1 

18

386 right disputes, to assist the parties in resolving their dispute. The cost of the mediator shall be 

387 shared equally. In the event that either of the parties to this Settlement Contract determines that 

388 the parties will not be able to develop mutually-agreeable modification(s) to this Settlement 

389 Contract even with the assistance of a mediator, either of the parties to this Settlement Contract 

390 may attempt to resolve the impasse by seeking appropriate judicial relief including, but not 

391 limited to, filing a general adjudication of the rights to the use of water in the Sacramento River 

392 system. The foregoing provisions of this sub-article shall only apply to the incremental 

393 obligations contained within a final decision or order of the State Water Resources Control 

394 Board that reflects a modification to the obligations imposed in State Water Resources Control 

395 Board Revised Water Rights Decision 1641 dated March 15, 2000, and its associated 1995 Water 

396 Quality Control Plan which, taken together, will be considered the baseline for the application of 

397 the provisions of this sub-article. 

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

399 thereafter divert and use water shall exist as if this Settlement Contract had not been entered into; 

400 and the fact that as a compromise settlement of a controversy as to the respective rights of the 

401 parties to divert and use water and the yield of such rights during the term hereof, this Settlement 

402 Contract places a limit on the Contract Total to be diverted annually by the Contractor during the 

403 Settlement Contract term and segregates it into Base Supply and Project Water shall not 

404 jeopardize the rights or position of either party with respect to its water rights or the yield thereof 

405 at all times after the Settlement Contract terminates. It is further agreed that the Contractor at all 

406 times will first use water to the use of which it is entitled by virtue of its own water rights, and 

407 neither the provisions of this Settlement Contract, action taken thereunder, nor payments made 

408 thereunder to the United States by the Contractor shall be construed as an admission that any part 
Contract No. 14-06-200-4736A-R-1 

19

409 of the water used by the Contractor during the term of this Settlement Contract was in fact water 

410 to which it would not have been entitled under water rights owned by it nor shall receipt of 

411 payments thereunder by the United States from the Contractor be construed as an admission that 

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

413 fact water to which it would have been entitled under water rights owned by it. 

414 MEASUREMENT OF WATER

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

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

417 may be mutually agreed upon in writing by the Contracting Officer and the Contractor. 

418 (b) The right of ingress to and egress from all points of diversion is hereby 

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

420 the United States the right to install, operate, maintain, and replace measuring equipment on 

421 diversion or carriage facilities at each point of diversion as the Contracting Officer deems 

422 necessary. 

423 (c) The Contractor shall not modify, alter, remove, or replace diversion 

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

425 equipment installed by the United States or its representatives unless and until the Contracting 

426 Officer has been notified with due diligence and has been given an opportunity to modify such 

427 measuring equipment in such manner as may be necessary or appropriate. In the event of an 

428 emergency the Contractor shall notify the United States within a reasonable time thereafter as to 

429 the existence of the emergency and the nature and extent of such modification, alteration, 

430 removal, or replacement of diversion facilities. 
Contract No. 14-06-200-4736A-R-1 

20

431 (d) The Contractor shall pay the United States for the costs to repair, relocate, 

432 or replace measurement equipment when the Contractor modifies, alters, removes, or replaces 

433 diversion or carriage facilities. 

434 RULES AND REGULATIONS

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

436 Federal facilities pursuant to this Settlement Contract is subject to Federal Reclamation law, 

437 including but not limited to, the Reclamation Reform Act of 1982 (43 U.S.C.390aa et seq.), as 

438 amended and supplemented, and the rules and regulations promulgated by the Secretary of the 

439 Interior under Federal Reclamation law. 

440 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

444 the default of individual water users in their obligations to the Contractor. 

 

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

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

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

448 may be in arrears in the advance payment of water Rates due the United States. The Contractor 

449 shall not furnish water made available pursuant to this Settlement Contract for lands or parties 

450 which are in arrears in the advance payment of water rates levied or established by the 

451 Contractor. 

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

453 obligation to require advance payment for water Rates which it levies. 

454 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

460 When a payment is delinquent 90 days or more, the Contractor shall pay an additional penalty 

461 charge of six percent per year for each day the payment is delinquent beyond the due date. 
Contract No. 14-06-200-4736A-R-1 

21

462 Further, the Contractor shall pay any fees incurred for debt collection services associated with a 

463 delinquent payment. 

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

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

466 or the interest rate of one-half of one percent per month prescribed by Section 6 of the 

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

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

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

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

471 accrued interest, and finally to the overdue payment. 

472 QUALITY OF WATER

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

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

475 facilities at the highest level reasonably attainable as determined by the Contracting Officer. The 

476 United States does not warrant the quality of water and is under no obligation to construct or 

477 furnish water treatment facilities to maintain or better the quality of water. 

478 WATER AND AIR POLLUTION CONTROL

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

480 applicable water and air pollution laws and regulations of the United States and the State of 

481 California, and shall obtain all required permits or licenses from the appropriate Federal, State, 

482 or local authorities. 

483 EQUAL OPPORTUNITY

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

485 follows: 

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

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

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

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

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

491 transfer; recruitment or recruitment advertising; layoff or termination, rates of payment or other 
Contract No. 14-06-200-4736A-R-1 

22

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

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

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

495 nondiscrimination clause. 

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

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

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

499 national origin. 

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

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

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

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

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

505 employees and applicants for employment. 

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

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

508 of the Secretary of Labor. 

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

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

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

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

513 such rules, regulations, and orders. 

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

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

516 Settlement Contract may be canceled, terminated, or suspended, in whole or in part, and the 

517 Contractor may be declared ineligible for further Government contracts in accordance with 

518 procedures authorized in said amended Executive Order, and such other sanctions may be 

519 imposed and remedies invoked as provided in said Executive Order, or by rule, regulation, or 

520 order of the Secretary of Labor, or as otherwise provided by law. 

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

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

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

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

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

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

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

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

529 the United States to enter into such litigation to protect the interests of the United States. 
Contract No. 14-06-200-4736A-R-1 

23

530 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

531 17. Omitted. 

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

533 18. Omitted. 

534 BOOKS, RECORDS, AND REPORTS

535 19. The Contractor shall establish and maintain accounts and other books and records 

536 pertaining to administration of the terms and conditions of this Settlement Contract, including: 

537 the Contractor's financial transactions, water supply data, and Project land and right-of-way 

538 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 

539 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

540 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

541 Officer may require. Subject to applicable Federal laws and regulations, each party to this 

542 Settlement Contract shall have the right during office hours to examine and make copies of each 

543 other’s books and official records relating to matters covered by this Settlement Contract. 

544 CHANGE OF PLACE OF USE

545 20. Unless the written consent of the United States is first obtained no change shall be 

546 made in the place of water use shown on Exhibit B. 

547 CONSOLIDATION OF CONTRACTING ENTITIES

548 21. Omitted 

549 NOTICES

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

551 shall be deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, 

552 or delivered to the Area Manager, Northern California Area Office, Bureau of Reclamation, 

553 16349 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalf of the United 

554 States, when mailed, postage prepaid, or delivered to Mr. Don Roberts, Driscoll Strawberry 

555 Associates, Incorporated, 345 Hemsted Drive, Suite B, Redding, California 96002. The 

556 designation of the addressee or the address may be changed by notice given in the same manner 

557 as provided in this Article for other notices. 

558 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

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

560 successors and assigns of the parties hereto, but no assignment or transfer of this Settlement 
Contract No. 14-06-200-4736A-R-1 

24

561 Contract or any right or interest therein shall be valid until approved in writing by the 

562 Contracting Officer. 

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

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

565 Contract absent the written concurrence of said other party. 

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

567 approval of any proposed assignment. 

568 OFFICIALS NOT TO BENEFIT

569 24. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

570 Contractor shall benefit from this Settlement Contract other than as a water user or landowner in 

571 the same manner as other water users or landowners. 

572 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS

573 25. The expenditure or advance of any money or the performance of any obligation of 

574 the United States under this Settlement Contract shall be contingent upon appropriation or 

575 allotment of funds. Absence of appropriation or allotment of funds shall not relieve the 

576 Contractor from any obligations under this Settlement Contract. No liability shall accrue to the 

577 United States in case funds are not appropriated or allotted. 

578 CONFIRMATION OF SETTLEMENT CONTRACT

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

580 seek to secure a decree of a court of competent jurisdiction of the State of California, if 

581 appropriate, confirming the execution of this Settlement Contract. The Contractor shall furnish 

582 the United States a certified copy of the final decree, the validation proceedings, and all pertinent 

583 supporting records of the court approving and confirming this Settlement Contract, and 

584 decreeing and adjudging it to be lawful, valid, and binding on the Contractor. This Settlement 

585 Contract shall not be binding on the United States until such final decree has been secured. 

586 UNAVOIDABLE GROUNDWATER PERCOLATION

587 27. Omitted 

588 PRIVACY ACT COMPLIANCE

589 28. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 552a) 

590 (the Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et 

591 seq.) in maintaining Landholder acreage certification and reporting records, required to be 

592 submitted to the Contractor for compliance with Sections 206 and 228 of the Reclamation 

593 Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 
Contract No. 14-06-200-4736A-R-1 

25

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

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

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

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

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

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

600 of Reclamation Federal Register Privacy Act System of Records Notice (Acreage Limitation--

601 Interior, Reclamation-31) which govern the maintenance, safeguarding, and disclosure of 

602 information contained in the Landholder's certification and reporting records. 

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

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

605 on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The 

606 Contractor is authorized to grant requests by individuals for access to their own records. 

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

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

609 under 43 CFR 2.71; notify the requester accordingly of such referral; and provide the System 

610 Manager with information and records necessary to prepare an appropriate response to the 

611 requester. These requirements do not apply to individuals seeking access to their own 

612 certification and reporting forms filed with the Contractor pursuant to 43 CFR 426.18, unless the 

613 requester elects to cite the Privacy Act as a basis for the request. 

614 WATER CONSERVATION

615 29. (a) Prior to the diversion of Project Water, the Contractor shall be 

616 implementing an effective water conservation and efficiency program based on the Basin-Wide 

617 Water Management Plan and/or Contractor's water conservation plan that has been determined 

618 by the Contracting Officer to meet the conservation and efficiency criteria for evaluating water 

619 conservation plans established under Federal law. The water conservation and efficiency 

620 program shall contain definite water conservation objectives, appropriate economically feasible 

621 water conservation measures, and time schedules for meeting those objectives. Continued 

622 diversion of Project Water pursuant to this Settlement Contract shall be contingent upon the 

623 Contractor’s continued implementation of such water conservation program. In the event the 

624 Contractor's water conservation plan or any revised water conservation plan completed pursuant 
Contract No. 14-06-200-4736A-R-1 

26

625 to subdivision (d) of Article 29 of this Settlement Contract have not yet been determined by the 

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

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

628 under this Settlement Contract so long as the Contractor diligently works with the Contracting 

629 Officer to obtain such determination at the earliest practicable date, and thereafter the Contractor 

630 immediately begins implementing its water conservation and efficiency program in accordance 

631 with the time schedules therein. 

632 (b) The Contractor shall submit to the Contracting Officer a report on the 

633 status of its implementation of the water conservation plan on the reporting dates specified in the 

634 then existing conservation and efficiency criteria established under Federal law. 

635 (c) At 5-year intervals, the Contractor shall revise its water conservation plan 

636 to reflect the then current conservation and efficiency criteria for evaluating water conservation 

637 plans established under Federal law and submit such revised water management plan to the 

638 Contracting Officer for review and evaluation. The Contracting Officer will then determine if 

639 the water conservation plan meets Reclamation’s then current conservation and efficiency 

640 criteria for evaluating water conservation plans established under Federal law. 

641 (d) If the Contractor is engaged in direct ground-water recharge, such activity 

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

643 OPINIONS AND DETERMINATIONS

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

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

646 shall not be construed as permitting such action to be predicated upon arbitrary, capricious, or 

647 unreasonable opinions or determinations. Both parties, notwithstanding any other provisions of 
Contract No. 14-06-200-4736A-R-1 

27

648 this Settlement Contract, expressly reserve the right to seek relief from and appropriate 

649 adjustment for any such arbitrary, capricious, or unreasonable opinion or determination. Each 

650 opinion or determination by either party shall be provided in a timely manner. Nothing in 

651 subdivision (a) of Article 30 of this Settlement Contract is intended to or shall affect or alter the 

652 standard of judicial review applicable under Federal law to any opinion or determination 

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

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

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

656 Settlement Contract, the laws of the United States and of the State of California, and the rules 

657 and regulations promulgated by the Secretary of the Interior. Such determinations shall be made 

658 in consultation with the Contractor to the extent reasonably practicable. 

659 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

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

662 receipt of a bill and detailed statement submitted by the Contracting Officer to the Contractor for 

663 such specific items of direct cost incurred by the United States for work requested by the 

664 Contractor associated with this Settlement Contract plus indirect costs in accordance with 

665 applicable Bureau of Reclamation policies and procedures. All such amounts referred to in this 

666 Article shall not exceed the amount agreed to in writing in advance by the Contractor. This 

667 Article shall not apply to costs for routine contract administration. 

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

669 Contractor pursuant to Article 31 of this Settlement Contract shall be adjusted to reflect the 

670 actual costs when the work has been completed. If the advances exceed the actual costs incurred, 
Contract No. 14-06-200-4736A-R-1 

28

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

672 advances, the Contractor will be billed for the additional costs pursuant to Article 31 of this 

673 Settlement Contract. 

674 WAIVER OF DEFAULT

675 32. The waiver by either party to this Settlement Contract as to any default shall not 

676 be construed as a waiver of any other default or as authority of the other party to continue such 

677 default or to make, do, or perform, or not to make, do, or perform, as the case may be, any act or 

678 thing which would constitute a default. 

679 CONTRACT ASSIGNMENT OR TERMINATION UPON TRANSFER OF LAND

680 33. (a) The rights and obligations of the Contractors may be transferred in 

681 connection with the transfer of title to the land or any portion thereof delineated on Exhibit B on 

682 the following terms and conditions: 

683 (1) A voluntary inter vivos transfer may be made, upon mutual 

684 agreement of the United States and the Contractors, to a person eligible to hold title to the land as 

685 a nonexcess landowner; and 

686 (2) In the event the title of the Contractors to such land, or any portion 

687 thereof, is transferred by operation of law, such as by conveyance in satisfaction of a mortgage, 

688 by inheritance, or by device, the rights and obligations of the Contractors shall pass with the title 

689 and the land shall be subject to provisions of Reclamation law pertaining to such transfers. Any 

690 transfer of the rights and obligations of this Settlement Contract by the person acquiring title by 

691 operation of law shall be in accordance with provisions of subsection (1) above. 
Contract No. 14-06-200-4736A-R-1 

29

692 (b) The Contractors shall notify the Contracting Officer in writing of any 

693 proposed transfer of this Settlement Contract. In addition, in the case of a partial assignment the 

694 Contractors shall: 

695 (1) Designate the proportionate quantities of Base Supply and Project 

696 Water which they desire to assign; and 

697 (2) Furnish the United States with a copy of the deed transferring title. 

698 (c) No transfer of this Settlement Contract shall be effective unless and until 

699 approved by the Contracting Officer, and, if approved, shall be effective from the date of such 

700 approval. 

701 (d) Upon mutual agreement between the United States and the Contractor, this 

702 Settlement Contract or a portion thereof may be terminated and the new landowner will have the 

703 privilege of entering into a Settlement Contract for water service for a proportionate share of the 

704 Contract Total provided he is duly qualified to receive water for such land. 

705 TERMINATION

706 34. This Settlement Contract will terminate upon mutual agreement of the parties 

707 prior to the end of the term or any renewal thereof. 
Contract No. 14-06-200-4736A-R-1 

30

708 IN WITNESS WHEREOF, the parties hereto have executed this Settlement 

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

710 THE UNITED STATES OF AMERICA 

711 By: ______________________________________ 

712 Regional Director, Mid-Pacific Region 

713 Bureau of Reclamation 

714 (SEAL) 

715 DRISCOLL STRAWBERRY ASSOCIATES, INC. 

716 By: ______________________________________ 

717 Title: _________________________________ 

718 (I:\10-06-03 Driscoll Strawberry Associates, Inc., Final Draft Contract with exhibits.doc) 
Contract No. 14-06-200-4736A-R-1 

Exhibit A 

Driscoll Strawberry Associates, Incorporated 

Sacramento River 

SCHEDULE OF MONTHLY DIVERSIONS OF WATER

 Base Supply Project Water Contract Total 

 (acre-feet) (acre-feet) (acre-feet) 

 April 80 0 80

 May 130 0 130

 June 170 60 130

 July 0 170 170

 August 0 150 150

 September 0 110 110

 October 50 0 50

 

 Total 330 490 820

 Irrigable Acres: 160 

 

 Points of Diversion: 207.3L and 207.5L 

 Dated:
Contract No. 14-06-200-4736A-R-1 

Exhibit B 

(Map to be inserted to identify area covered by contract) 

Driscoll Strawberry Associates, Incorporated 

Sacramento River 
Contract No. 14-06-200-4736A-R-1 

Exhibit C 

Omitted 
Contract No. 14-06-200-4736A-R-1 

Exhibit D 

Driscoll Strawberry Associates, Incorporated 

Sacramento River 

WATER RATES AND CHARGES

 

Note: Rates and Charges shown are 2003 rates. This exhibit will be updated prior to execution 

of the contract to reflect the Rates and Charges for 2004 

 

COST OF SERVICE RATES: Per Irrigated Acre

Capital Rates 

 Storage $10.42 

O&M Rates: 

 Water Marketing $19.23 

 Storage $17.06 

Deficit Rates: 

 Interest Bearing $4.81 

CFO/PFR Adjustment Rate 1/ $63.88

 

 TOTAL $115.40 

FULL-COST RATES: 

Section 202(3) Rate is applicable to a 

 Qualified Recipient or to a Limited 

 Recipient receiving irrigation water 

 on or before October 1, 1981. $132.02 

Section 205(a)(3) Rate is 

 applicable to a Limited Recipient that 

 did not receive irrigation water on or 

 before October 1, 1981. $139.96 

CHARGES UNDER P.L. 102-575 TO THE 

RESTORATION FUND 2/ 

 Restoration Payments (3407(d)(2)(A)) $23.55 

1/ Chief Financial Officer (CFO) adjustment and Provision for Replacement (PFR) expense is being 

distributed over a 5-year period beginning in FY 2003 for those contractors that requested those costs be 

deferred. 

2/ Restoration fund charges are payments in addition to the water rates and were determined pursuant to 

Title XXXIV of Public Law 102-575. Restoration fund charges are on a fiscal year basis (10/1 - 9/30).