.. 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

Short FOnTI - Irrigation 

Contract No. 

14-06-200-1175A-R-1 

CONTRACT BETWEEN THE UNITED STATES AND 

THE EMILE AND SIMONE FURLAN FAMILY TRUST, 

DIVERTER OF WATER FROM SACRAMENTO RNER SOURCES, 

SETTLING WATER RIGHTS DISPUTES AND PROVIDING FOR PROJECT WATER 

Article No. 

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Table of Contents 

Page No. 

Preanlble ...................................................................................................... 1 

Explanatory Recitals ................................................................................ 1-3 

Definitions ................................................................................................ 4-6 

Tenn of Settlelnent Contract. ....................................................................... 7 

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

Return Flow ............................................................................................... 10 

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

Integrated Water Management and Partnerships ....................................... 11 

Use 0 f Water Furni shed to Contractor ................................................. 11-12 

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

Agreement C 11 Water Quantities ........................................................... 16-19 

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

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

General Obligation--Benefits Conditioned 

Upon Paylnent ......................................................................................... 20 

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

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

Water and Ai]' Pollution Control. ............................................................... 21 

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

On'litted ...................................................................................................... 22 

Om~!ted ...................................................................................................... 22 
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Article No. 

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Exhibit A 

Exhibit B 

Exhibit C 

Exhibit D 

Contract No. 14-06-200-1175A-R-l 

Table of Contents - continued 

Page No. 

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

Change of Place ofUse .............................................................................. 23 

Omitted ...................................................................................................... 23 

Notices ....................................................................................................... 23 

Assignment Limited--Successors and 

Assigns Obligated ................................................................................... 23 

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

Contingent Upon Appropriation or 

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

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

Omitted ...................................................................................................... 24 

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

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

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

Contractor to Pay Certain Miscellaneous Costs ......................................... 27 

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

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

Termination ................................................................................................ 29 

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

Schedule of Monthly Diversions of Water 

Map of Contractor's Ownership 

Omitted 

Water Rates and Charges 
1 Contract No. 

2 14-06-200-1 175A-R-l 

3 UNITED STATES 

4 DEPARTMENT OF THE INTERIOR 

5 BUREAU OF RECLAMATION 

6 Central Valley Project, California 

7 CONTRACT BETWEEN THE UNITED STATES AND 

8 THE EMILE AND SIMONE FURLAN FAMILY TRUST, 

9 DIVERTER OF WATER FROM SACRAMENTO RNER SOURCES, 

10 SETTLING WATER RIGHTS DISPUTES AND PROVIDING FOR PROJECT WATER 

11 THIS CONTRACT, hereinafter referred to as "Settlement Contract," is entered into 

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

13 this J D~ day of C~ , 2006, pursuant to the applicable authority granted to 

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

J 5 thereto, including, but not limited to, the Acts of August 26, 1937 (50 Stat. 844), as amended and 

16 supplemented, August 4, ] 939 (53 Stat. 1187), as amended and supplemented, including but not 

17 limited to Sections 9 and 14 thereto, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), 

18 October 12, 1982 (96 Stat. 1263), OCLober 27, 1986 (100 Stat. 3050), as amended, and Title 

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

20 as Federal Reclamation law, and THE EMILE AND SIMONE FURLAN FAMILY TRUST, 

21 hereinafter referred to as the Contractor, acting pursuant to Sections 12003 and 12004 of the 

22 California Water Code, with its principal place of business in California; 

23 WITNESSETH, that: 

24 EXPLANATORY RECITALS 

25 [1 st] WHEREAS, the United States has constructed and is operating the Central Valley 

26 Project, California, for multiple purposes pursuant to its statutory authority; and 
Contract No. 14-06-200-1175A-R-l 

27 [2nd

] WHEREAS, the Contractor has rights to divert, is diverting, and will continue to 

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

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

30 existence; and 

31 [3rd] WHEREAS, the construction and operation of the integrated and coordinated 

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

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

34 unregulated flow to reglllated flow; and 

35 [4th] WHEREAS, the United States has rights to divert, is diverting, and will continue 

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

37 Valley Project; and 

38 [5th] WHEREAS, the Contractor's predecessor in interest, Emile Furlan and Simone 

39 Furlan, and the United States had a dispute over the respective rights of the parties to divert and 

40 use water from the regulated flow of the Sacramento River which threatened to result in 

41 litigation, and as a means to settle that dispute entered into Contract No. 14-06-200-1175A, as 

42 amended, hereinafter referred to as the Existing Contract, which established terms for the 

43 delivery to the Contractor's predecessor in interest of Central Valley Project Water, and the 

44 quantities of Base Supply the United States and the Contractor's predecessor in interest agreed 

45 may be diverted by the Contractor's predecessor in interest from the Sacramento River pursuant 

46 to such contract; and 

47 [6th] WHEREAS, the Contractor's predecessor in interest conveyed the land to which 

48 the Existing Contract was appurtenant to the Furlan Family Trust, and the Trust subsequently 

2 
Contract No. 14-06-200-1175A-R-I 

49 assigned a portion of the Existing Contract to a third party which acquired a portion of the land 

50 held by the Trust; and 

51 [711l] WHEREAS, the United States and the Contractor disagree with respect to the 

52 authority of the United States to change the quantities of Base Supply and/or Project Water 

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

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

55 in a lawsuit entitled Glenn-Colusa Irrigation District, et al. v. United States, et al. 

56 [Civ. No. S-Ol 1816 GEB/JFM (E.D. Cal.)], but that litigation was dismissed, without prejudice, 

57 pursuant to a stipulation of dismissal filed by the parties thereto on August 29, 2002. 

58 Notwithstanding that dismissal, the Contractor and the United States enter into this Settlement 

59 Contract to renew the Existing Contract, pursuant to the tenns of the Existing Contract, Federal 

60 Rec1amationlaw, and the laws ofthe State of Cali fomi a; and 

61 [8Ih

] WHEREAS, notwithstanding the facts contained in the previous recital, the U.S. 

62 and the Contractor have agreed to adjust the amount of water under this Settlement Contract to 

63 reflect the sale ofland and partial assignment of contract referenced in the 6th Recital; and 

64 [9th

] WHEREAS, to assure the Contractor of the enjoyment and use of the regulated 

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

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

67 Project; 

68 NOW, THEREFORE, in consideration ofthe perfonnance of the herein contained 

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

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71 1. 

Contract No. 14-06-200-1 17SA-R-I 

DEFINITIONS 

When used herein, unless otherwise expressed or incompatible with the intent hereof, the 

72 tenn: 

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(a) "Base Supply" shall mean the quantity of Surface Water established in Articles 3 

and 5 which may be diverted by the Contractor from the Sacramento River each month during 

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

quantities diverted; 

(b) "Basin-Wide Water Management Plan" shall mean the mutually agreeable 

Sacramento River Basinwide Water Management Plan, dated October II, 2004, developed by 

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

Company, Pelger Mutual Water Company, Princeton-Cod ora Glenn Irrigation District, Provident 

Irrigation District, Reclamation District 108, Sutter Mutual Water Company, AndersonCottonwood Irrigation District, Meridian Fanns Water Company, Reclamation District 1004, and 

the U.S. Bureau of Reclamation; 

(c) "Charges" shall mean the payments for Project Water that the Contractor is 

required to pay to the United States in addition to the "Rates" specified in this Settlement 

Contract. The Contracting Officer will, on an annual basis, detennine the extent ofthese 

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

(d) "Contract Total" shaH mean the sum of the Base Supply and Project Water 

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

(e) "Critical Year" shall mean any Year in which either of the following eventualities 

exists: 

4 
Contract No. 14-06-200-1175A-R-l 

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

93 Year, as such forecast is made by the United States on or before February 15 and reviewed as 

94 frequently thereafter as conditions and information warrant, is equal to or less than 3.2 million 

95 acre-feet; or 

96 (2) The total accumulated actual deficiencies below 4 million acre-feet in the 

97 immediately prior Water Year or series of successive prior Water Years each of which had 

98 inflows ofless than 4 million acre-feet, together with the forecasted deficiency for the current 

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

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

10] Shasta Lake shall be performed in a manner that considers the extent of upstream development 

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

103 Shasta Lake. In the event that majo: construction has occurred or occurs above Shasta Lake after 

104 September 1, 1963, and which has rllaterially altered or alters the regimen ofthe stream systems 

105 contributing to Shasta Lake, the computed inflow to Shasta Lake llsed to define a Critical Year 

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

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

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

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

] ] 0 shall be used to make the forecasts hereunder; 

III (£) "CVPJA" shall mean' the Central Valley Project Improvement Act, Title XXXIV 

112 ofthe Act of October 30, 1992 (106 Stat 4706); 

113 

114 

(g) 

(h) 

Omitted; 

Omitted; 

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(i) 

(j) 

Omitted; 

Omitted; 

Contract No. 14-06-200-1175A-R-l 

(k) Omited; 

(I) "Project" shall mean the Central Valley Project owned by the United States and 

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

(m) "Project Water" shall mean all Surface Water diverted or scheduled to be diverted 

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

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

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

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

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

water, when so identified, shall not be deemed Project Water under this Settlement Contract; 

(n) "Rates" shall mean the payments for Project Water detennined annually by the 

Contracting Officer in accordance with the then current applicable water rate setting policies for 

the Proj ect, as described in subdivision (a) of Article 8 of this Settlement Contract; 

(0) "Secretary" or "Contracting Officer" shall mean the Secretary of the Interior, a 

131 duly appointed successor, or an authorized representative acting pursuant to any authority of the 

132 Secretary and through any agency of the Department of the Interior; 

133 

134 

135 

136 

137 

(p) "Surface Water" shall mean only those waters that are considered as surface water 

under California law; 

(q) "Water Year" shall mean the period commencing with October 1 of one year and 

extending through September 30 of the next; and 

(r) "Year" shall mean a calendar year. 

6 
Contract No. 14-06-200-1175A-R-l 

138 TERM OF SETTLEMENT CONTRACT 

139 2. (a) This Settlement Contract shall become effective April 1, 2006, and shall remain in 

140 effect until and including March 31,2046; Provided, that under tenllS and conditions mutually 

141 agreeable to the parties hereto, renewals may be made for successive periods not to exceed 40 

142 years each. The terms and conditions of each renewal shall be agreed upon not later than one 

143 year prior to the expiration of the then existing Settlement Contract. 

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

145 peliaining thereto, upon written request by the Contractor of the Secretary made not later than 

146 one year prior to the expiration ofthis Settlement Contract, whenever, account being taken of the 

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

148 construction costs of water supply work which is properly assignable for ultimate retumlJ'y the of .... 

149 Contractor as established by the Secretary ofthe Interior pursuant to (3) of Section I of Public 

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

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

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

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

154 make a detennination ten years after the date of execution of this Settlement Contract, and every 

155 five years thereafter, of whether a conversion to a contract under said subsection 9{ d) can be 

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

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

158 WATER TO BE FURNISHED TO CONTRACTOR 

159 ... 

j. (a) Subject to the conditions, limitations, and provisions hereinafter expressed, the 

160 Contractor is hereby entitled and aUlhorized to divert from the Sacramento River at the locations 

7 
Contract No. 14-06-200-1175A-R-l 

161 shown in Exhibit A, for beneficial use within the area delineated on Exhibit B, (both Exhibits are 

162. attached hereto and made a part hereof), the Contract Total designated in Exhibit A, or any 

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revision thereof. 

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

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

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

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

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

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

90 days after receipt of a complete written proposal. For a proposal to be deemed compl,eteby 

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

including infonnation sufficient to enable the Contracting Officer to comply with the National 

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

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

or effectuate the sale, transfer, exchange or other disposal of Base Supply_ Such use of Federal 

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

and Reclamation. 

(c) For the purpose of determining whether Section 3405(a)(l)(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. 

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Contract No. 14-06-200-1175A-R-l 

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

the months of November through March for beneficial use on the land shown on Exhibit B or 

elsewhere to the extent authorized under the laws of the State of California. 

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

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

(1) 

(2) 

The quality of water to be diverted by the Contractor; 

The control, carriage, handling, use, disposal, or distribution of water 

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

maintained by or on behalf of the United States; 

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

property loss or damage, personal iujury, or death arising out of or connected with the coptrQI, 

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

to facilities; and 

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

caused by a shortage of water whether such shortage be on account of errors in operation, 

drought, or unavoidable causes. 

(f) In addition to the provisions of subdivision (e) of Article 3 of this G::ontract, if 

there is a shortage of Project Water because of actions taken by the Contracting Officer to meet 

legal obligations then, except as provided in subdivision (a) of Article 30 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. 

9 
Contract No. 14-06-200-1175A-R-1 

204 RETURN FLOW 

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

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

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

208 boundaries of the lands shown on Exhibit B; Provided, that this shall not be construed as 

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

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

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

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

213 CONSTRAINTS ON THE A V AILABILITY OF WATER 

214 5. 

215 

216 

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

(a) 

(b) 

Irrigate not in excess of 75 percent of its irrigable acreage shown on Exhibit A; or 

Divert from the Sacramento River not in excess of75 percent of the Contract 

217 Total shown on Exhibit A, subject to the installation of measurement equipment satisfactory to 

218 the Contracting Officer. The Contractor shall install, operate, and maintain this equipment at the 

219 Contractor's expense. The Contractor shall submit, by April 1 of that Critical Year, a written 

220 schedule to the Contracting Officer indicating the Contract Total to be diverted by the Contractor 

221 during each month of that Critical Year under this Settlement Contract. 

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

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

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

225 overpayment shall constitute the sole remedy of the Contractor. 

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Contract No. l4-06-200-1175A-R-l 

INTEGRA TED WATER MANAGEMENT AND PARTNERSHIPS 

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

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

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

other contractors, to facilitate the better integration within the Sacramento Valley of all water 

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

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

utilization of waste, seepage and return flow water, and other operational and management 

options that may be identified in the future. 

USE OF WATER FURNISHED TO CONTRACTOR 

236 7. (a) Project Water furnished to the Contractor pursuant to this Settlement Con.v:act 

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

purposes without the written consent ofthe Contracting Officer. For purposes of this Settlement 

Contract, "agricultural purposes" includes, but is not restricted to, the irrigation of crops, the 

watering of livestock, incidental domestic use including related landscape irrigation, and 

underground water replenishment. 

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

biological opinion(s) prepared as a result of a consultation regarding the executio,jil of this 

Settlement Contract undertaken pursuant to Section 7 ofthe Endangered Species Act of 1973, as 

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

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

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

c.onsidered in developing an appropriate base-line for the Biological Assessment prepared 

11 
Contract No. 14-06-200-1175A-R-l 

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

250 Nothing herein shall be construed to prevent the Contractor from challenging or seeking judicial 

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

252 environmental documentation referred to in this Article. 

253 RATE AND METHOD OF PAYMENT FOR WATER 

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

255 Article for each acre ofland irrigated from April 1, through October 31 each Year. Such 

256 payments shall be at Rates and Charges established in accordance with: (i) the Secretary's then 

257 current ratesetting policies for the Project; and (ii) applicable Reclamation law and associated 

258 rules and regulations, or policies; Provided, that if the Contractor desires to use Project Water for 

259 other than agricultural purposes the Rates and Charges set forth above will be adjusted b¥,.the 

260 Contracting Officer to the applicable Rates and Charges for such purposes. The Rates and 

261 Charges applicable to the Contractor upon execution of this Settlement Contract are set f011h in 

262 Exhibit D, as may be revised annually. The Secretary's ratesetting policies for the Project shall 

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

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

265 follows: 

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

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

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

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

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

12 
Contract No. 14-06-200-1175A-R-I 

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

272 Year, through September 30, of the following Year, and such notification shall revise Exhibit D. 

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

274 available to the Contractor an estimate ofthe Rates for Project Water for the following Year and 

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

276 allowed not less than two months to review and comment on such computations and cost 

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

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

279 Exhibit D. 

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

281 manner: 

282 (1) With respect to Rates and Charges, on or before May] of each Year, the 

283 Contractor shall pay the United States one-half the total amount payable pursuant to 

284 subdivision (a) ofthis Article and the remainder shall be paid on or before July 1 or such later 

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

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

287 a written estimate, provided to the Contracting Officer by the Contractor on or before April 1 of 

288 each Year, of the total area to be irrigated between April 1 and October 31 of that. Year. • f 

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

290 between the amount paid on May I and the total amount due for the Year, based on the total area 

291 actually irrigated from April 1 to July 1. 

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Contract No. 14-06-200-1 1 75A-R-I 

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

293 October 31, additional payment shall be made in advance of such additional irrigation at the 

294 Rates and Charges shown in Exhibit D for each additional acre placed under irrigation. 

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

296 Contract may be paid from any revenues available to the Contractor. All revenues received by 

297 the United States from the Contractor relating to the delivery of Project Water or the delivery of 

298 non-Project Water through Project facilities shall be allocated and applied in accordance with 

299 Federal Reclamation law and the associated rules or regulations, and the then current Project 

300 ratesetting policies for irrigation water. 

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

302 the financial terms and conditions of its long-term water service and Settlement Contract~. in 

303 accordance with applicable Federal standards, so as to reflect the application of Project costs and 

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

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

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

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

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

309 (1) The parties acknowledge and agree that the efficient administration ofthis 

310 Settlement Contract is their mutual goaL Recognizing that experience has demonstrated that 

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

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

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

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Contract No. 14-06-200-1 I 75A-R-l 

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

Contract is in effect without amendment of this Settlement Contract. 

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

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

maintenance (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 rate setting policy. 

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

Project 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. The Contractor 

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

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

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

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

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

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

330 of the transferred, exchanged, or otherwise disposed of Project Water to the transferee's point of 

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

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

333 exchanged, or otherwise disposed 01: by the Contractor shall be the Contractor's Charges 

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

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

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

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Contract No. 14-06-200-1l75A-R-1 

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

338 Contractor's Rates and Charges unadjusted for ability to pay. 

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

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

341 (j) Each payment to be made pursuant to subdivisions (a) and (c) of this Article shall 

342 be made at the office of the Bureau of Reclamation, MP Region: Mid-Pacific, P.O. Box 894242, 

343 Los Angeles, CA 90189-4242, or at such other place as the United States may designate in a 

344 written notice to the said Contractor. Payments shall be made by cash transaction, wire, or any 

345 other mechanism as may be agreed to in writing by the Contractor and the Contracting Officer. 

346 In event there should be a default in the payment of the amount due, the delinquent payment 

347 provisions of Article 13 shall apply. The Contractor shall not be relieved ofthe whole o~any 

348 part of its said obligation by, on account of, or notwithstanding, as the case may be its failure, 

349 refusal, or neglect to divert the quantity of Project Water shown on Exhibit A. 

350 AGREEMENT ON WATER QUANTITIES 

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

352 

353 

354 

355 

356 

357 

358 

359 

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

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

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

use on the land shown on Exhibit B from April 1 through October 31, which said diversion, use, 

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

hereunder; 

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

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

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Contract No. 14-06-200-1175A-R-l 

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

against others than the United States or of the United States against any person other than the 

Contractor; Provided, however, that in the event the Contractor, the United States, or any other 

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

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

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

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

not been entered into, and if final judgment in any such general adjudication shall deternline that 

the lights of the parties hereto are different from the rights as assumed herein, the parties shall 

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

agree on an appropriate amendment they shall, within 60 days of determining that there if:m 

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

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

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

the immediate ternlination of this Settlement Contract. 

(c) In the event that the California State Water Resources Control Board or a cou11 of 

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

water rights of either party to this Settlement Contract in order to impose Bay-Delta water 

quality obligations, the Contractor and the United States shall promptly meet to determine 

whether or not to modify any ofthe tenns of this Settlement Contract to comply with the final 

decision or order. Ifwithin 60 days of the date of the issuance of the final decision or order the 

parties are not able to reach agreement regarding either the need to modify this Settlement 

Contract or the manner in which this Settlement Contract is to be modified, the parties shall 

17 
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Contract No. 14-06-200-117SA-R-1 

promptly retain a neutral mediator, experienced in resolving water right disputes, to assist the 

parties in resolving their dispute. The cost of the mediator shall be shared equally. In the event 

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

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

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

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

the rights to the use of water in the Sacramento River system. The foregoing provisions ofthis 

sub-article shall only apply to the incremental obligations contained within a final decision or 

order of the State Water Resources Control Board that reflects a modification to the obligations 

imposed in State Water Resources Control Board Revised Water Rights Decision 1641 dated 

March 15,2000, and its associated 1995 Water Quality Control Plan which, taken togeth~r, will 

be considered the baseline for the application ofthe provisions ofthis sub-article. 

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

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

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

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

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

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

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

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

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

neither the provisions ofthis Settlement Contract, action taken thereunder, nor payments made 

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

18 
Contract No. 14-06-200-1 I 75A-R-1 

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

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

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

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

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

411 MEASUREMENT OF WATER 

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

413 at the existing point or points of diversion shown on Exhibit A or at such other points as may be 

414 mutually agreed upon in writing by the Contracting Officer and the Contractor. 

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

416 all authorized employees of the United States. The Contractor also hereby grants to the l;dnited 

417 States the right to install, operate, maintain, and replace measuring equipment on diversion or 

418 carriage facilities at each point of diversion as the Contracting Officer deems necessary. 

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

420 do any other act which would alter the effectiveness or accuracy of the measuring equipment 

421 installed by the United States or its representatives unless and until the Contracting Officer has 

422· been notified with due diligence and has been given an opportunity to modi(y such measuring 

423 equipment in such manner as may be necessary or appropriate. In the event of an~mergency the 

424 Contractor shall notify the United States within a reasonable time thereafter as to the existence of 

425 the emergency and the nature and extent of such modification, alteration, removal, or 

426 replacement of diversion facilities. 

]9 
Contract No. 14-06-200-1175A-R-I 

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

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

429 diversion or carriage facilities. 

430 RULES AND REGULATIONS 

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

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

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

434 and supplemented, and the rules and regulations promulgated by the Secretary of the Interior 

435 under Federal Reclamation law. 

436 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT 

437 12. (a) The obligation ofthe Contractor to pay the United States as provided in tI;is 

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

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

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

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

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

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

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

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

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

447 Contractor. 

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

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

450 CHARGES FOR DELINQUENT PAYMENTS 

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

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

453 Contractor shall pay an interest charge for each day the payment is delinquent beyond the due 

454 date. When a payment becomes 60 days delinquent, the Contractor shall pay an administrative 

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

456 payment is delinquent 90 days or more, the Contractor shall pay an additional penalty charge of 

457 six percent per year for each day the payment is delinquent beyond the due date. Further, the 

20 
Contract No. 14-06-200-1 1 75A-R-1 

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

459 payment. 

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

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

462 interest rate of one-half of one percent per month prescribed by Section 6 of the Reclamation 

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

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

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

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

467 interest, and finally to the overdue payment. 

468 QUALITY OF WATER 

469 14. The operation and maintenance of Project facilities shall be performed in such manner as 

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

471 highest level reasonably attainable as deternlined by the Contracting Officer. The United Btates 

472 does not warrant the quality of water and is under no obligation to construct or furnish water 

473 treatment facilities to maintain or better the quality of water. 

474 WATER AND AIR POLLUTION CONTROL 

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

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

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

478 authorities. 

479 EQUAL OPPORTUNITY 

480· 16. During the performance of this Settlement Contract, the Contractor agrees as follows: 

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

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

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

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

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

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

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

21 
Contract No. 14-06-200-1175A-R-l 

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

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

490 nondiscrimination clause. 

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

492 or on behalf of the Contractor, state that all qualified applicants will receive consideration for 

493 employment without discrimination because of race, color, religion, sex, or national origin. 

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

495 which it has a collective bargaining agreement or other contract or understanding, a notice, to be 

496 provided by the Contracting Officer, advising the said labor union or workers' representative of 

497 the Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 

498 1965, and shall post copies ofthe notice in conspicuous places available to employees and 

499 applicants for employment. 

500 (d) The Contractor will comply with all provisions of Executive Order No. 11246 of 

501 September 24, 1965, as amended, and of the rules, regulations, and relevant orders of the 

502 Secretary of Labor. 

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

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

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

506 the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, 

507 regulations, and orders. 

508 (£) In the event of the Contractor's noncompliance with the nondiscrimination clauses 

509 of this Settlement Contract or with any ofthe said rules, regulations, or orders, this Settlement 

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

511 be declared ineligible for further Government contracts in accordance with procedures 

512 authorized in said amended Executive Order, and such other sanctions may be imposed and 

513 remedies invoked as provided in said Executive Order, or by rule, regulation, or order of the 

514 Secretary of Labor, or as otherwise provided by law. 

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

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

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

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

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

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

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

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

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

524 17. Omitted. 

525 18. Omitted. 

22 
Contract No. 14-06-200-1175A-R-l 

526 BOOKS, RECORDS, AND REPORTS 

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

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

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

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

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

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

533 Officer may require. SUbject to applicable Federal laws and regulations, each party to this 

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

535 other's books and official records relating to matters covered by this Settlement Contract. 

536 CHANGE OF PLACE OF USE 

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

538 in the place of water use shown on Exhibit B. 

539 21. Omitted. 

540 NOTICES 

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

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

543 delivered to the Area Manager, Northern California Area Office, Bureau of Reclamation, 16349 

544 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalfofthe United States, when 

545 mailed, postage prepaid, or delivered to The Emile and Simone Furlan Family Trust, 22122 

546 Karnak Road, Knights Landing, California 95645-9405. The designation ofthe addressee or the 

547 address may be changed by notice given in the same manner as provided in this Article for other 

548· notices. 

549 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED 

550 23. (a) The provisions ofthis Settlement Contract shall apply to and bind the successors 

551 and assigns of the parties hereto, but no assignment or transfer of this Settlement Contract or any 

552 right or interest therein shall be valid until approved in writing by the Contracting Officer. 

553 (b) The assignment of any right or interest in this Settlement Contract by either party 

554 shall not interfere with the rights or obligations of the other party to this Settlement Contract 

555 absent the written concurrence of said other party. 

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

557 of any proposed assignment. 

23 
Contract No. 14-06-200-1175A-R-1 

OFFICIALS NOT TO BENEFIT 

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

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

560 the same manner as other water users or landowners. 

561 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS 

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

563 United States under this Settlement Contract shall be contingent upon appropriation or allotment 

564 of funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from 

565 any obligations under this Settlement Contract. No liability shall accrue to the United States in 

566 case funds are not appropriated or allotted. 

567 CONFIRMA TION OF SETTLEMENT CONTRACT 

568 26. The Contractor, after the execution ofthis Settlement Contract, shall promptly seek to 

569 secure a decree of a court of competent jurisdiction of the State of California, if appropriate, 

570 confirming the execution of this Settlement Contract. The Contractor shall furnish the United 

571 States a certified copy of the final decree, the validation proceedings, and all pertinent supporting 

572 records of the court approving and confirming this Settlement Contract, and decreeing ai}d 

573 adjudging it to be lawful, valid, and binding on the Contractor. This Settlement Contract shall 

574 not be binding on the United States until such final decree has been secured. 

575 27. Omitted. 

576 PRIV ACY ACT COMPLIANCE 

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

578 Act) and the Department of the Interior rules and regulations under the Act (43 CFR 2.45 et seq.) 

579 in maintaining Landholder acreage certification and reporting records, required to be submitted 

580 to the Contractor for compliance with Sections 206 and 228 of the Reclamation Reform Act of 

581 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18. 

582 (b) With respect to the application and administration of the crimillal penalty 

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

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

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

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

587 Contractor with current copies ofthe Interior Department Privacy Act regulations and the Bureau 

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

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

590 infomlation contained in the Landholder's certification and reporting records. 

24 
Contract No. 14-06-200-117SA-R-l 

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

592 Reclamation to be the System Manager who shall be responsible for making decisions on denials 

593 pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The Contractor 

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

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

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

597 CFR 2.71; notify the requester accordingly of such referral; and provide the System Manager 

598 with information and records necessary to prepare an appropriate response to the requester. 

599 These requirements do not apply to individuals seeking access to their own certification and 

600 reporting forms filed with the Contractor pursuant to 43 CFR 426.18, unless the requester elects 

601 to cite the Privacy Act as a basis for the request. 

602 WATER CONSERVATION 

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

604 effective water conservation and efficiency program based on the Basin-Wide Water 

605 Management Plan and/or Contractor's water conservation plan that has been determined qy the 

606 Contracting Officer to meet the consen'ation and efficiency criteria for evaluating water 

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

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

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

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

611 Contractor's continued implementation of such water conservation program. In the event the 

612 Contractor's water conservation plan or any revised water conservation plan completed pursuant 

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

614 Contracting Officer to meet such criteria, due tocircumstances which the Contracting Officer 

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

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

617 Officer to obtain such detemlination at the earliest practicable date, and thereafter the Contractor 

25 
Contract No. 14-06-200-1175A-R-l 

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

619 with the time schedules therein. 

620 

621 

622 

623 

624 

625 

626 

627 

628 

629 

(b) 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. 

(c) 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 detennine if 

the water conservation plan meets Reclamation's then current conservation and efficiency 

criteria for evaluating water conservation plans established under Federal law. 

(d) Ifthe Contractor is engaged in direct groundwater recharge, such activity shall be 

630 described in the Contractor's water conservation plan. 

631 OPINIONS AND DETERMINATIONS 

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

633 the opinion or determination of either party to this Settlement Contract, said tenns shall not be 

634 construed as permitting such action to be predicated upon arbitrary, capricious, or unreasonable 

635 opinions or determinations. Both parties, notwithstanding any other provisions ofthis Settlement 

636 Contract, expressly reserve the right to seek relief from and appropriate adjustment for any such 

637 arbitrary, capricious, or unreasonable opinion or determination. Each opinion or detennination 

638 by either party shall be provided in a timely manner. Nothing in subdivision (a) of Article 30 of 

639 this Settlement Contract is intended to or shall affect or alter the standard of judicial review 

26 
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641 

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644 

645 

646 

647 

648 

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650 

651 

652 

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655 

656 

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Contract No. 14-06-200-1175A-R-l 

applicable under Federal law to any opinion or detelmination implementing a specific provision 

of Federal1aw embodied in statute or regulation. 

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

administer this Settlement Contract that are consistent with the provisions of this Settlement 

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

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

consultation with the Contractor to the extent reasonably practicable. 

CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS 

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

Settlement 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 su.ch 

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

associated with this Settlement 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. 

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

Contractor pursuant to Article 31 of this Settlement 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 31 of this 

Settlement Contract. 

27 
Contract No. 14-06-200-1175A-R-I 

662 WAIVER OF DEFAULT 

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

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

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

666 thing which would constitute a default. 

667 CONTRACT ASSIGNMENT OR TERMINATION UPON TRANSFER OF LAND 

668 33. (a) The rights and obligations ofthe Contractors may be transferred in connection 

669 with the transfer oftitle to the land or any portion thereof delineated on Exhibit B on the 

670 following terms and conditions: 

671 (1) A voluntary inter vivos transfer may be made, upon mutual agreement of 

672 the United States and the Contractors, to a person eligible to hold title to the land as a nonexcess 

673 landowner; and 

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

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

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

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

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

679 operation of law shall be in accordance with provisions of subsection (1) above. 

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

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

682 Contractors shall: 

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

684 which they desire to assign; and 

28 
685 

686 (c) 

Contract No. 14-06-200-117SA-R-l 

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

No transfer of this Settlement Contract shall be effective unless and until 

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

688 approval. 

689 

690 

691 

692 

693 

694 

695 

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

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

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

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

TERMINATION 

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

end of the term or any renewal thereof. 

29 
Contract No. 14-06-200-117SA-R-1 

696 IN WITNESS WHEREOF, the parties hereto have executed this Settlement Contract as of the 

697 day and year first hereinabove written. 

698 THE UNITED STATES OF AMERlCA 

699 

700 

701 

APPROVED AS TO it~ /' ", FORM AND SUFFIC~~ ... , 

~tJ1£U~ .. 

tffr'~~i~~E~~G6~'f~ ~~ft: 

702 (SEAL) 

By: ---r~~~~~~--~r---------- Regional irector, Mid-Pacific R IOn 

Bureau of Reclamation 

703 EMILE AND SIMONE FURLAN F AMIL Y TRUST 

704 

705 Trustee ~~ftt1..X:- ~41 

30 
• ALL-PURPOSE ACKNOWLEDGEMENT 

~ __ }ss 

before me, MliE£/ltE /J'J, VA'l Itt;t/ , Jj/)t;ay !NOTARY) ? 

personally appeared ~/ in/) AI I;" & 4-!A.AI Ti2 v t2t-t:- e... 

} S!GNER!S) 

~ personally known to me - OR - proved to me on the basis of satisfactory 

evidence to be the person(s) whose name(s) 

is/are subscribed to the within instrument and 

--acknowledged to me that he/she/they executed 

the same in his.L.!lWtheir - authorized 

capacity(ies), and that by his/her/their 

signature(s) on the instrument the person(s), 

or the entity upon behalf of which the 

person(s) acted, executed the instrument. 

WITNESS my hand and official seaL 

~~Vnk~ NOTARY'S SIGNATURE 

---------OPTIONAL INFORMATION --------- Tb.t:. information below is not required by law. However, it could prevent fraudulent attachment of this acknowledgerlmllt to an unauthorized document. 

",-

CAPACITY'CLAiMED BY SIGNER (PRINCIPAL) DESCRIPTION OF ATTACHED DOCUMENT 

INDIVIDUAL 

CORPORATE 

o PARTNER(S) 

ATTORNEY-IN-FACT 

o TRUSTEE(S) 

o GUARDIAN/CONSERVATOR 

TITLE OR TYPE OF DOCUMENT 

DATE OF DOCUMENT o OTHER: ______________________ ___ 

SIGNER IS REPRESENTING: NAME OF PERSON,S) OR ENTlTY(lES) 

APA5199 

RIGHT THUMBPRINT 

OF 

SIGNER 

VALLEY-SIERRA, 800-362-3369 
• 

Contract No. 14-06-200-117SA-R-l 

Exhibit A 

THE EMILE and SIMONE FURLAN FAMILY TRUST 

Sacramento River 

SCHEDULE OF MONTHLY DIVERSIONS OF WATER 

Base Supply (AF) Project Water (AF) Contract Total (AF) 

April 01 00 01 

May 09 00 09 

June 11 02 13 

July 02 12 14 

August 00 12 12 

September 00 04 04 

October 00 00 00 

Total 23 30 53 

Irrigable Acres: 24 

Points of Diversion: 32.5L 

Dated: 03-15-2006 
T11N R2E 

Note: The Public Land Survey depjcted here 

was digitized from USGS topographic maps. ~~~~--:-:-T-";;;;;;;: 

The Emile and Simone Furlan Family Trust 

Dale: November 5. 2004. Revised 31201()6 725-202-53 

~ Contractor's Service Area Contract No. 14-06-200-1175A-R-1 ~ 

• Point of Diversion Exhibit B ( 

o 

_______ 0.5 a=:======, 1 Miles 

File Name: N:ldoslrictslrontrac1Slfur1ar1_errlle_and_simonelfur1ar1_emlle_and_Simone.mx<l 
• , 

Exhibit C 

Omitted 

Contract No. 14-06-200-1175A-R-l 
• 

Contract No. 14-06-200-1175A-R-l 

Exhibit D 

THE EMILE and SIMONE FURLAN FAMILY TRUST 

Sacramento River 

2006 Water Rates and Charges per Irrigated Acre 

Cost of Service Rate 

Full Cost Rates 

Section 202(3) Rate 

Applicable to a Qualified Recipient or to a Limited Recipient 

receiving irrigation water on or before October 1, 1981 

Section 205(a)(3) Rate 

Applicable to a Limited Recipient who did not receive 

irrigation water on or before October 1, 1981. 

Charl!es Under P.L. 102-575 To The Restoration FundI 

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

Irrigation 

$33.94 

$43.17 

$47.49 

$14.79 

I 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).