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1 UNITED STATES

2 DEPARTMENT OF THE INTERIOR

3 BUREAU OF RECLAMATION

4 Central Valley Project, California

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

6 AND

7 _________________________________

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM DIVISION

10 THIS CONTRACT, made this _____ day of ____________________, 2001, in

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

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

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

14 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1262), October 27, 1986 (100 Stat.

15 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all collectively

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

17 hereinafter referred to as the United States, and ___________________________, hereinafter referred

18 to as the Contractor, a public agency of the State of California, duly organized, existing, and acting

19 pursuant to the laws thereof, with its principal place of business in California; 
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20 WITNESSETH, That: 

21 EXPLANATORY RECITALS

[1st 22 ] WHEREAS, the United States has constructed and is operating the Central Valley

23 Project, California, for diversion, storage, carriage, distribution and beneficial use, for flood

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

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

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

27 the San Joaquin River and their tributaries; and

[2nd 28 ] WHEREAS, the United States constructed _________________________,

29 hereinafter collectively referred to as the _____________ [Division/Unit] facilities, which will be

30 used in part for the furnishing of water to the Contractor pursuant to the terms of this Contract;

31 and

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

33 pursuant to California law for operation of the Project; and

[4th 34 ] WHEREAS, the Contractor and the United States entered into Contract 

35 No. ______________, as amended, which established terms for the delivery to the Contractor of

36 Central Valley Project Water from the __________ [Division/Unit] from ____________ through

37 ______________________; and

[ 5th 38 ] [FOR IRC'S] WHEREAS, the Contractor and the United States have pursuant to
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39 subsection 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently

40 entered into interim renewal contract(s) identified as Contract

41 No(s).____________________________, the current of which is hereinafter referred to as the

42 Existing Contract, which provided for the continued water service to the Contractor from

43 __________________________ through _________________________; and 

[6th 44 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of

45 interim and existing long-term Central Valley Project Water service contracts following

46 completion of appropriate environmental documentation, including a programmatic

47 environmental impact statement (PEIS) pursuant to the National Environmental Policy Act

48 analyzing the direct and indirect impacts and benefits of implementing the CVPIA and the

49 potential renewal of all existing contracts for Project Water; and

[7th 50 ] WHEREAS, the United States has completed the PEIS and all other appropriate

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

[8th 52 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing

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

54 of the State of California, for water service from the Central Valley Project; and 

[9th 55 ] WHEREAS, the United States has determined that the Contractor has fulfilled all

56 of its obligations under the Existing Contract; and

[10th 57 ] [CONTRACTOR SPECIFIC] WHEREAS, the Contractor has demonstrated to the
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1 Contractor Specific issue - This recital may need to be modified for individual contractors

who do not have the capability today to take Project Water but can demonstrate that they will have the

capability to take Project Water prior to the delivery of water. 

4

58 satisfaction of the Contracting Officer that the Contractor has utilized the Central Valley Project

59 Water supplies available to it for reasonable and beneficial use and/or has demonstrated projected

future demand for water use such that the Contractor has the capability160 and expects to utilize

61 fully for reasonable and beneficial use the quantity of Project Water to be made available to it

62 pursuant to this Contract; and

[11th 63 ] WHEREAS, water obtained from the Central Valley Project has been relied upon

64 by urban and agricultural areas within California for more than fifty (50) years, and is considered

65 by the Contractor as an essential portion of its water supply; and

[12th 66 ] WHEREAS, the economies of regions within the Central Valley Project,

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

68 service from the Central Valley Project; and

[13th 69 ] WHEREAS, the Secretary intends through coordination, cooperation, and

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

71 Project for all Project purposes; and

[14th 72 ] WHEREAS, the mutual goals of the United States and the Contractor include: to

73 provide for reliable Central Valley Project Water supplies; to control costs of those supplies; to
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74 achieve repayment of the Central Valley Project as required by law; to guard reasonably against

75 Central Valley Project Water shortages; to achieve a reasonable balance among competing

76 demands for use of Central Valley Project Water; and to comply with all applicable

77 environmental statutes, all consistent with the legal obligations of the United States relative to

78 the Central Valley Project; and

[15th 79 ] WHEREAS, the parties intend by this Contract to develop a more cooperative

80 relationship in order to achieve their mutual goals; and 

[16th 81 ] WHEREAS, the United States and the Contractor are willing to enter into this 

82 long-term renewal contract pursuant to Federal Reclamation law on the terms and conditions set

83 forth below;

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

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

86 DEFINITIONS

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

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

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

90 both dates inclusive;

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

92 in addition to the Rates and Tiered Pricing Components specified in this Contract as determined
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 May need to be modified for some divisions, including a definition of interruption of supply.

3

Some Contractors may propose alternate language. Some Contractors may use a legal description, others may use a

map.

6

93 annually by the Contracting Officer pursuant to this Contract; 

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

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

the Contract Total;296 

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

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

99 regulation; 

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

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

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

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

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

without amendment of this Contract;3105

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

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

108 (h) “Eligible Lands” shall mean all lands to which Irrigation Water may be
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109 delivered in accordance with Section 204 of the Reclamation Reform Act of October 12, 1982

110 (96 Stat. 1263), as amended, hereinafter referred to as RRA; 

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

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

113 Reclamation law;

114 (j) “Full Cost Rate” shall mean that water rate described in Sections 205(a)(3)

115 or 202(3) of the RRA, whichever is applicable;

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

117 be delivered in accordance with Section 204 of the RRA;

118 (l) “Irrigation Full Cost Water Rate” shall have the same meaning as “full

119 cost” as that term is used in paragraph (3) of Section 202 of the Reclamation Reform Act of

120 1982;

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

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

123 incidental thereto, and watering of livestock;

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

125 nonexempt land, as provided in 43 CFR 426.2;
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 Some Contractors may want to include “other water” definition in lieu of this definition. Individual Contractors with

unique circumstances may negotiate a lower threshold.

8

(o) “Municipal and Industrial (M&I) Water”4126 shall mean water made available

127 from the Project other than Irrigation Water made available to the Contractor. M&I Water shall

128 include water used for human use and purposes such as the watering of landscaping or pasture

129 for animals (e.g., horses) which are kept for personal enjoyment or water delivered to land

130 holdings operated in units of less than five (5) acres unless the Contractor establishes to the

131 satisfaction of the Contracting Officer that the use of water delivered to any such landholding is a

132 use described in subdivision (m) of this Article;

133 (p) “M&I Full Cost Water Rate” shall mean the annual rate, which, as

134 determined by the Contracting Officer, shall amortize the expenditures for construction allocable

135 to Project M&I facilities in service, including, O&M deficits funded, less payments, over such

136 periods as may be required under Federal Reclamation law with interest accruing from the dates

137 such costs were first incurred plus the applicable rate for the O&M of such Project facilities. 

138 Interest rates used in the calculation of the M&I Full Cost Rate shall comply with the Interest

139 Rate methodology contained in Section 202 (3) (B) and (C) of the RRA;

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

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

142 maintenance of Project facilities;
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143 (r) “Operating Non-Federal Entity" shall mean the ___________, a 

144 Non-Federal entity which has the obligation to operate and maintain all or a portion of the

145 ____________ [Division/Unit] facilities pursuant to an agreement with the United States, and

146 which may have funding obligations with respect thereto;

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

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

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

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

151 Reclamation law;

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

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

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

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

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

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

158 (w) “Recent Historic Average” shall mean the most recent five (5) -year

159 average of the final forecast of Water Made Available to the Contractor pursuant to this Contract

160 or its preceding contract(s);

161 (x) “Secretary” shall mean the Secretary of the Interior, a duly appointed
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 This language may be modified at the Contractor level.

10

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

163 through any agency of the Department of the Interior; 

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

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

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

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

Officer5168 ;

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

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

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

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

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

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

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

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

177 TERM OF CONTRACT 
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178 2. (a) This Contract shall be effective March 1, 2001, through February 28,

179 2026. In the event the Contractor wishes to renew the Contract beyond February 28, 2026, the

180 Contractor shall submit a request for renewal in writing to the Contracting Officer no later than

181 two (2) years prior to the date this Contract expires. The renewal of this Contract insofar as it

182 pertains to the furnishing of Irrigation Water to the Contractor shall be governed by subdivision

183 (b) of this Article, and the renewal of this Contract insofar as it pertains to the furnishing of M&I

184 Water to the Contractor shall be governed by subdivision (c) of this Article.

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

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

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

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

189 Water to the Contractor, shall be renewed for a period of twenty-five (25) years.

190 (2) The conditions which must be met for this Contract to be renewed

191 are: (i) the Contractor has prepared a water conservation plan that has been determined by the

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

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

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

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

196 operating and maintaining all water measuring devices and implementing all water measurement
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197 methods as approved by the Contracting Officer pursuant to Article 6 of this Contract; (iv) the

198 Contractor has reasonably and beneficially used the Project Water supplies made available to it

199 and, based on projected demands, is reasonably anticipated and expects fully to utilize for

200 reasonable and beneficial use the quantity of Project Water to be made available to it pursuant to

201 such renewal; (v) the Contractor is complying with all terms and conditions of this Contract; and

202 (vi) the Contractor has the physical and legal ability to deliver Project Water.

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

204 (b)(1) of this Article and any subsequent renewal contracts shall be developed consistent with the

205 parties’ respective legal rights and obligations, and in consideration of all relevant facts and

206 circumstances, as those circumstances exist at the time of renewal, including, without limitation,

207 the Contractor’s need for continued delivery of Project Water; environmental conditions affected

208 by implementation of the Contract to be renewed, and specifically changes in those conditions

209 that occurred during the life of the Contract to be renewed; the Secretary’s progress toward

210 achieving the purposes of the CVPIA as set out in Section 3402 and in implementing the specific

211 provisions of the CVPIA; and current and anticipated economic circumstances of the region

212 served by the Contractor.

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

214 Contractor, shall be renewed for a period of twenty five (25) years and thereafter shall be

215 renewed for successive periods of up to forty (40) years each, which periods shall be consistent
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216 with the then-existing Reclamation-wide policy, under terms and conditions mutually agreeable

217 to the parties and consistent with federal and state law. The present Reclamation-wide policy,

218 dated March 20, 2000, provides that the term of such contracts shall be no more than twenty five

219 (25) years each, subject to a variance to allow a longer term in appropriate circumstances. The

220 Contractor shall be afforded the opportunity to comment to the Contracting Officer on the

221 proposed adoption and application of any revised Reclamation-wide policy applicable to the

222 delivery of Project M&I Water that would limit the term of any subsequent renewal contract with

223 the Contractor for the furnishing of M&I Water to less than twenty five (25) years.

224 (d) The Contracting Officer anticipates that by December 31, 2024, all

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

226 Contracting Officer agrees by that date to allocate all costs that are properly assignable to the

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

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

229 Contractor, be converted to a contract under subsection (d) , Section 9 of the Reclamation Project

230 Act of 1939, subject to applicable Federal law and under stated terms and conditions mutually

231 agreeable to the Contractor and the Contracting Officer. A condition for such conversion to

232 occur shall be a determination by the Contracting Officer that, account being taken of the amount

233 credited to return by the Contractor as provided for under Reclamation law, the remaining

234 amount of construction costs assignable for ultimate return by the Contractor can probably be
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235 repaid to the United States within the term of a contract under said subsection (d). If the

236 remaining amount of costs that are properly assignable to the Contractor cannot be determined by

237 December 31, 2024, the Contracting Officer shall notify the Contractor, and provide the reason(s)

238 why such a determination could not be made. Further, the Contracting Officer shall make such a

239 determination as soon thereafter as possible so as to permit, upon request of the Contractor and

240 satisfaction of the condition set out above, conversion to a contract under said subsection (d). In

241 the event such determination of costs has not been made at a time which allows conversion of

242 this Contract during the term of this Contract or the Contractor has not requested conversion of

243 this Contract within such term, the parties shall incorporate in any subsequent renewal contract as

244 described in subdivision (b) of this Article a provision that carries forth in substantially identical

245 terms the provisions of this subdivision In the event the Contracting Officer is able to make a

246 determination of the remaining amount of costs that are properly assignable to the Contractor

247 before December 31, 2024, the Contracting Officer shall do so at the earliest time the Contracting

248 Officer has such ability. The Contracting Officer shall make a determination 10 years after the

249 date of execution of this Contract, and every 5 years thereafter during the term of this Contract,

250 of whether a conversion to a contract under said subsection 9(d) can be accomplished pursuant to

251 the Act of July 2, 1956 (Public Law 643). Notwithstanding any provision of this Contract, the

252 Contractor reserves and shall have all rights and benefits under Public Law 643.
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6 Delta Export Agricultural contracts will require restructuring of this Article.

15

253 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR 

3. (Divisional)(a)6254 During each Year, consistent with all applicable State water rights,

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

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

257 acre-feet of water for irrigation and M&I purposes. The quantity of Water Delivered to the

258 Contractor in accordance with this subdivision shall be scheduled and paid for pursuant to the

259 provisions of Articles 4 and 7 of this Contract. 

260 (b) Because the capacity of the Central Valley Project to deliver Project Water

261 has been constrained in recent years and may be constrained in the future due to many factors

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

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

264 any given Year is uncertain. The Contracting Officer’s most recent modeling referenced in the

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

266 Contractor in many years. During the most recent five (5) years, the Recent Historic Average of

267 water made available to the Contractor was ____ acre-feet. Nothing in subdivision (b) of this

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

269 (c) The Contractor shall utilize the Project Water in accordance with all
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270 applicable legal requirements.

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

272 Water or other water furnished pursuant to this Contract. Ground-water recharge programs,

273 ground-water banking programs, surface water storage programs, and other similar programs

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

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

276 consistent with Reclamation law will be allowed; Provided, That any direct recharge program(s)

277 is (are) described in the Contractor’s Water Conservation Plan submitted pursuant to Article 26

278 of this Contract; Provided, further, That such Water Conservation Plan demonstrates sufficient

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

280 of Delivered Water is demonstrated to be reasonable for such uses and in compliance with

281 Reclamation Law. Ground-water recharge programs, ground-water banking programs, surface

282 water storage programs, and other similar programs utilizing Project Water or other water

283 furnished pursuant to this Contract conducted outside the Contractor’s Service Area may be

284 permitted upon written approval of the Contracting Officer, which approval will be based upon

285 environmental documentation, Project Water rights, and Project operational concerns. The

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

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

288 Contractor in biological opinion(s) prepared as a result of a consultation regarding the execution
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7 Specific Contract Issue: The concern over land use authority may be the subject of

discussion with individual contractors.

17

289 of this Contract undertaken pursuant to Section 7 of the Endangered Species Act of 1973, as

290 amended, that are within the Contractor’s legal authority to implement. The Contractor shall

291 comply with the limitations or requirements imposed by environmental documentation applicable

292 to the Contractor and within its legal authority to implement regarding specific activities,

293 including conversion of Irrigation Water to M&I Water. Nothing herein shall be construed to

294 prevent the Contractor from challenging or seeking judicial relief in a court of competent

295 jurisdiction with respect to any biological opinion or other environmental documentation referred

to in this Article.7296

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

298 Contact, the Contracting Officer will make a determination whether Project Water, or other water

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

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

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

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

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

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

305 Contractor as soon as practical. The Contracting Officer will thereafter meet with the Contractor
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 “Rescheduled” in some divisions.

18

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

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

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

309 with applicable statutes, regulations, guidelines, and policies. 

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

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

Year referred to as “carryover.”8312 The Contractor may request permission to use during the

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

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

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

316 and policies.

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

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

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

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

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

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

323 subdivision (b) of Article 12 of this Contract or applicable provisions of any subsequent renewal
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324 contracts.

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

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

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

328 conditions of such approval.

329 [DIVISIONAL ISSUE – SECTION 215 WATER]

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

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

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

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

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

335 Contractor’s position in such a proceeding.; Provided further, that in such proceedings the

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

337 Contract to use Project Water.

338 TIME FOR DELIVERY OF WATER

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

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

341 declaration will be updated monthly, and more frequently if necessary, based on then-current
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342 operational and hydrologic conditions and a new declaration with changes, if any, to the Water

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

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

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

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

347 declaration of Project operations will be expressed in terms of both Water Made Available and

348 the Recent Historic Average.

349 (b) [DIVISIONAL / CONTRACTOR SPECIFIC ISSUE – MORE SPECIFIC

350 INFORMATION WILL BE INCLUDED FOR SOME ] On or before each March 1 and at such

351 other times as necessary, the Contractor shall submit to the Contracting Officer a written

352 schedule, satisfactory to the Contracting Officer, showing the monthly quantities of Project

353 Water to be delivered by the United States to the Contractor pursuant to this Contract for the

354 Year commencing on such March 1. The Contracting Officer shall use all reasonable means to

355 deliver Project Water according to the approved schedule for the Year commencing on such

356 March 1.

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

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

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

360 during any Year. 
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361 (d) Subject to the conditions set forth in subdivision (a) of Article 3 of this

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

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

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

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

366 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

368 Contract shall be delivered to the Contractor at __________________________and any

369 additional point or points of delivery either on Project facilities or another location or locations

370 mutually agreed to in writing by the Contracting Officer and the Contractor.

371 (b) [DIVISIONAL ISSUE – FOR SOME DIVISIONS POINTS OF

372 DELIVERY SPECIFICALLY IDENTIFIED.] The Contracting Officer, the Operating 

373 Non-Federal Entity, or other appropriate entity shall make all reasonable efforts to maintain

374 sufficient flows and levels of water in the _____________ Canal to deliver Project Water to the

375 Contractor at specific turnouts established pursuant to subdivision (a) of this Article.

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

377 applicable land classification provisions of Federal Reclamation law and the associated

378 regulations. The Contractor shall not deliver Project Water to land outside the Contractor's
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379 Service Area unless approved in advance by the Contracting Officer.

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

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

382 United States, the Operating Non-Federal Entity or other appropriate entity as designated by the

383 Contracting Officer (hereafter “other appropriate entity”) at the point or points of delivery

384 established pursuant to subdivision (a) of this Article. Upon the request of either party to this

385 Contract, the Contracting Officer shall investigate, or cause to be investigated by the responsible

386 Operating Non-Federal Entity, the accuracy of such measurements and shall take any necessary

387 steps to adjust any errors appearing therein. For any period of time when accurate measurements

388 have not been made, the Contracting Officer shall consult with the Contractor and the

389 responsible Operating Non-Federal Entity prior to making a final determination of the quantity

390 delivered for that period of time.

391 (e) Neither the Contracting Officer nor any Operating Non-Federal Entity

392 shall be responsible for the control, carriage, handling, use, disposal, or distribution of Project

393 Water Delivered to the Contractor pursuant to this Contract beyond the delivery points specified

394 in subdivision (a) of this Article. The Contractor shall indemnify the United States, its officers,

395 employees, agents, and assigns on account of damage or claim of damage of any nature

396 whatsoever for which there is legal responsibility, including property damage, personal injury, or

397 death arising out of or connected with the control, carriage, handling, use, disposal, or
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 Recognize unique circumstances at Contractor level may require negotiation of different language.

23

398 distribution of such Project Water beyond such delivery points, except for any damage or claim

399 arising out of (i) acts or omissions of the Contracting Officer or any of its officers, employees,

400 agents, or assigns, including any responsible Operating Non-Federal Entity, with the intent of

401 creating the situation resulting in any damage or claim, (ii) willful misconduct of the Contracting

402 Officer or any of its officers, employees, agents, or assigns, including any responsible Operating

403 Non-Federal Entity, (iii) negligence of the Contracting Officer or any of its officers, employees,

404 agents, or assigns including any responsible Operating Non-Federal Entity, or (iv) damage or

405 claims resulting from a malfunction of facilities owned and/or operated by the United States or

406 responsible Operating Non-Federal Entity; Provided, That the Contractor is not the Operating

407 Non-Federal Entity that owned or operated the malfunctioning facility(ies) from which the

408 damage claim arose.

MEASUREMENT OF WATER WITHIN THE SERVICE AREA9

409

410 6.(Contractor Specific)(a) By __________________[DATE] ________, the

411 Contractor shall ensure that, unless the Contractor establishes an alternative measurement

412 program satisfactory to the Contracting Officer, all surface water delivered for irrigation purposes

413 within the Contractor’s Service Area is measured at each agricultural turnout and such water

414 delivered for municipal and industrial purposes is measured at each municipal and industrial
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415 service connection. The water measuring devices or water measuring methods of comparable

416 effectiveness must be acceptable to the Contracting Officer. The Contractor shall be responsible

417 for installing, operating, and maintaining and repairing all such measuring devices and

418 implementing all such water measuring methods at no cost to the United States. The Contractor

419 shall use the information obtained from such water measuring devices or water measuring

420 methods to ensure its proper management of the water, to bill water users for water delivered by

421 the Contractor; and, if applicable, to record water delivered for municipal and industrial purposes

422 by customer class as defined in the Contractor’s water conservation plan provided for in Article

423 26 of this Contract. Nothing herein contained, however, shall preclude the Contractor from

424 establishing and collecting any charges, assessments, or other revenues authorized by California

425 law. The Contractor shall include a summary of all its annual surface water deliveries in the

426 annual report described in subdivision (c) of Article 26.

427 (b) (Contractor Specific) To the extent the information has not otherwise

428 been provided, upon execution of this Contract, the Contractor shall provide to the Contracting

429 Officer a written report describing the measurement devices or water measuring methods being

430 used or to be used to implement subdivision (a) of this Article and identifying the agricultural

431 turnouts and the municipal and industrial service connections or alternative measurement

432 programs approved by the Contracting Officer, at which such measurement devices or water

433 measuring methods are being used, and, if applicable, identifying the locations at which such
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434 devices and/or methods are not yet being used including a time schedule for implementation at

435 such locations. The Contracting Officer shall advise the Contractor in writing within sixty (60)

436 days as to the adequacy of, and necessary modifications, if any, of the measuring devices or water

437 measuring methods identified in the Contractor’s report and if the Contracting Officer does not

438 respond in such time, they shall be deemed adequate. If the Contracting Officer notifies the

439 Contractor that the measuring devices or methods are inadequate, the parties shall within sixty

440 (60) days following the Contracting Officer‘s response, negotiate in good faith the earliest

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

442 methods as required by the Contracting Officer to ensure compliance with subdivision (a) of this

443 Article. 

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

Service Area after the effective date of this Contract shall also10 445 comply with the measurement

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

447 (d) (Contractor Specific) The Contractor shall inform the Contracting Officer

448 and the State of California in writing by April 30 of each Year of the monthly volume of surface

449 water delivered within the Contractor’s Service Area during the previous Year.

450 (e) (Contractor Specific) The Contractor shall inform the Contracting Officer

and the Operating Non-Federal Entity on or before the twentieth (20th 451 ) calendar day of each
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452 month of the quantity of Irrigation and M&I Water taken during the preceding month.

453 RATES AND METHOD OF PAYMENT FOR WATER

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

455 all Delivered Water at Rates, Charges, and the Tiered Pricing Component established in

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

457 Secretary’s then-existing ratesetting policy for M&I Water. Such ratesetting policies shall be

458 amended, modified, or superseded only through a public notice and comment procedure; (ii)

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

460 applicable provisions of this Contract. Payments shall be made by cash transaction, wire, or any

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

462 The Rates, Charges, and Tiered Pricing Components applicable to the Contractor upon execution

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

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

465 and Tiered Pricing Components as follows:

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

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

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

469 Calendar Year, and the basis for such estimate. The Contractor shall be allowed not less than
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470 two (2) months to review and comment on such estimates. On or before September 15 of each

471 Calendar Year, the Contracting Officer shall notify the Contractor in writing of the Charges to be

472 in effect during the period October 1 of the current Calendar Year, through September 30, of the

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

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

475 shall make available to the Contractor an estimate of the Rates and Tiered Pricing Components

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

477 those Rates are based. The Contractor shall be allowed not less than two (2) months to review

478 and comment on such computations and cost allocations. By December 31 of each Calendar

479 Year, the Contracting Officer shall provide the Contractor with the final Rates and Tiered Pricing

480 Components to be in effect for the upcoming Year, and such notification shall revise Exhibit

481 “B”. (c) At the time the Contractor submits the initial schedule for the delivery of

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

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

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

485 scheduled to be delivered pursuant to this Contract during the first two (2) calendar months of the

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

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

488 subdivision (a) of this Article, for the Water Scheduled to be delivered pursuant to this Contract
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489 during the second month immediately following. Adjustments between advance payments for

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

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

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

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

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

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

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

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

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

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

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

501 later than April 30th of the following Year, or sixty (60) days after the delivery of Project Water

502 carried over under subdivision (f) of Article 3 of this Contract if such water is not delivered by

503 the last day of February.

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

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

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

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

509 consistent with the quantities of Irrigation Water and M&I Water Delivered as shown in the

510 water delivery report for the subject month prepared by the Operating Non-Federal Entity or, if

511 there is no Operating Non-Federal Entity, by the Contracting Officer. The water delivery report

512 shall be deemed a bill for the payment of Charges and the applicable Tiered Pricing Component

513 for Water Delivered. Adjustment for overpayment or underpayment of Charges shall be made

514 through the adjustment of payments due to the United States for Charges for the next month. 

515 Any amount to be paid for past due payment of Charges and the Tiered Pricing Component shall

516 be computed pursuant to Article 20 of this Contract.

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

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

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

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

521 Contract shall be no more than the otherwise applicable Rate for Irrigation Water or M&I Water

522 under subdivision (a) of this Article.

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

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

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

526 the delivery of Project Water or the delivery of non-project water through Project facilities shall
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527 be allocated and applied in accordance with Federal Reclamation law and the associated rules or

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

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

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

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

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

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

534 Project and Contractor revenues, and a summary of all water delivery information. The

535 Contracting Officer and the Contractor shall enter into good faith negotiations to resolve any

536 discrepancies or disputes relating to accountings, reports, or information.

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

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

539 policies, and procedures used for establishing Rates, Charges, and Tiered Pricing Components,

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

541 mutual best interest of the parties, it is expressly agreed that the parties may enter into

542 agreements to modify the mechanisms, policies, and procedures for any of those purposes while

543 this Contract is in effect without amending this Contract.

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

545 exceed eighty (80%) percent of the Contract Total, then before the end of the month following
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546 the month of delivery the Contractor shall make an additional payment to the United States equal

547 to the applicable Tiered Pricing Component. The Tiered Pricing Component for the amount of

548 Water Delivered in excess of eighty (80%) percent of the Contract Total, but less than or equal to

549 ninety (90%) percent of the Contract Total, shall equal the one-half of the difference between the

550 Rate established under subdivision (a) of this Article and the Irrigation Full Cost Water Rate or

551 M&I Full Cost Water Rate, whichever is applicable. The Tiered Pricing Component for the

552 amount of Water Delivered which exceeds ninety (90%) percent of the Contract Total shall equal

553 the difference between (i) the Rate established under subdivision (a) of this Article and (ii) the

554 Irrigation Full Cost Water Rate or M&I Full Cost Water Rate, whichever is applicable. 

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

556 Contractor may request and receive an exemption from such Tiered Pricing Components for 

557 Project Water delivered to produce a crop which the Contracting Officer determines will provide

558 significant and quantifiable habitat values for waterfowl in fields where the water is used and the

559 crops are produced; Provided, That the exemption from the Tiered Pricing Components for

560 Irrigation Water shall apply only if such habitat values can be assured consistent with the

561 purposes of CVPIA through binding agreements executed with or approved by the Contracting

562 Officer prior to use of such water.

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

564 Components pursuant to this Article, Water Delivered shall include Project Water that the
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565 Contractor transfers to others but shall not include Project Water transferred and delivered to the

Contractor.11 566

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

568 policies will be established to recover only reimbursable “operation and maintenance” (including

569 any deficits) and capital costs of the Project, as those terms are used in the then-current Project

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

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

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

573 until the Contracting Officer has provided the Contractor an opportunity to discuss the nature,

574 need, and impact of the proposed change.

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

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

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

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

579 accordance with the then applicable CVP Ratesetting Policy; If the Contractor is receiving lower

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

581 whose Rates and Charges are not adjusted due to inability to pay, the Rates and Charges for

582 transferred Project Water shall be the Contractor’s Rates and Charges unadjusted for ability to
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583 pay. 

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

585 Officer is authorized to adjust determinations of ability to pay every five (5) years.

586 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

588 this Contract, the Contractor has no non-interest bearing operation and maintenance deficits and

589 shall have no further liability therefor.

590 [Or,] 

591 The Contractor and the Contracting Officer have entered into a written agreement

592 specifying a mutually acceptable mechanism through which the Contractor will retire its

593 outstanding non-interest bearing Operation and Maintenance deficits. 

594 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

599 Water under this Contract may take place without the prior written approval of the Contracting
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600 Officer, except as provided for in subdivision (b) of this Article, and no such sales, transfers, or

601 exchanges shall be approved absent compliance with appropriate environmental documentation

602 including but not limited to the National Environmental Policy Act and the Endangered Species

603 Act. Such environmental documentation should include, as appropriate, an analysis of

604 groundwater impacts and economic and social effects, including environmental justice, of the

605 proposed water transfers on both the transferor and transferee.

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

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

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

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

610 necessary environmental documentation including, but not limited to, the National

611 Environmental Policy Act and the Endangered Species Act analyzing annual transfers within

612 such geographical areas and the Contracting Officer shall determine whether such transfers

613 comply with applicable law. Following the completion of the environmental documentation,

614 such transfers addressed in such documentation shall be conducted with advance notice to the

615 Contracting Officer, but shall not require prior written approval by the Contracting Officer. Such

616 environmental documentation and the Contracting Officer’s compliance determination shall be

617 reviewed every five (5) years and updated, as necessary, prior to the expiration of the then618 existing five (5) -year period. All subsequent environmental documentation shall include an
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619 alternative to evaluate not less than the quantity of Project Water historically transferred within

620 the same geographical area.

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

622 water transfer must: (i) be for irrigation purposes for lands irrigated within the previous three (3)

623 years, for M&I use, ground-water recharge, water banking, or fish and wildlife resources; not

624 lead to land conversion; and be delivered to established cropland, wildlife refuges, ground-water

625 basins or municipal and industrial use; (ii) occur within a single Year; (iii) occur between a

626 willing seller and a willing buyer; (iv) convey water through existing facilities with no new

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

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

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

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

631 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

633 O&M, Capital, and deficit (if any) obligations for the Year shall be applied first to any current

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

635 more than One Thousand Dollars ($1,000) shall be refunded at the Contractor’s request. In lieu

636 of a refund, any amount of such overpayment at the option of the Contractor, may be credited
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637 against amounts to become due to the United States by the Contractor. With respect to

638 overpayment, such refund or adjustment shall constitute the sole remedy of the Contractor or

639 anyone having or claiming to have the right to the use of any of the Project Water supply

640 provided for herein. All credits and refunds of overpayments shall be made within thirty (30)

641 days of the Contracting Officer obtaining direction as to how to credit or refund such

642 overpayment in response to the notice to the Contractor that it has finalized the accounts for the

643 Year in which the overpayment was made.

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

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

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

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

648 advances, the Contractor will be billed for the additional costs pursuant to Article 25 of this

649 Contract.

650 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

654 Officer shall make all reasonable efforts to optimize Project Water deliveries to the Contractor as
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37

655 provided in this Contract.

656 (b) The Contracting Officer or Operating Non-Federal Entity may temporarily

657 discontinue or reduce the quantity of Water Delivered to the Contractor as herein provided for

658 the purposes of investigation, inspection, maintenance, repair, or replacement of any of the

659 Project facilities or any part thereof necessary for the delivery of Project Water to the Contractor,

660 but so far as feasible the Contracting Officer or Operating Non-Federal Entity will give the

661 Contractor due notice in advance of such temporary discontinuance or reduction, except in case

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

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

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

665 States will, if possible, deliver the quantity of Project Water which would have been delivered

666 hereunder in the absence of such discontinuance or reduction.

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

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

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

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

pursuant to this Contract within the Contractor’s Service Area12 671 by the Contractor or those

672 claiming by, through, or under the Contractor.
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673 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

676 available to the Contractor pursuant to this long-term renewal Contract. In the event the

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

678 Officer will notify the Contractor of said determination as soon as practicable.

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

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

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

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

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

684 (c) DIVISIONAL ISSUE - APPORTIONMENT AMONG

685 CONTRACTORS.

686 (d) DIVISIONAL ISSUE - M&I Water Service Contracts 

687 UNAVOIDABLE GROUNDWATER PERCOLATION

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

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

690 lands are irrigated with groundwater that reaches the underground strata as an unavoidable result
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13 Contractor Specific Issue - This may need to be modified on an individual contractor basis. 

Some contractors may be precluded by law to agreeing to all or part of this Article.

14 Some Contractors may request tailored language regarding water quality.

39

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

RULES AND REGULATIONS13 692

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

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

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

696 the rules and regulations promulgated by the Secretary of the Interior under Federal Reclamation

697 law.

698 

699 WATER AND AIR POLLUTION CONTROL

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

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

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

703 authorities.

QUALITY OF WATER14 704

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

706 to this Contract shall be operated and maintained to enable the United States to deliver Project
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707 Water to the Contractor in accordance with the water quality standards specified in subsection

708 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

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

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

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

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

713 (b) The Operation and Maintenance of Project facilities shall be performed in

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

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

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

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

718 Federal or Contractor facilities or Project Water provided by the Contractor within the

719 Contractor's Service Area. 

720 (c) [DIVISIONAL ISSUE – DRAINAGE, WHERE APPLICABLE]

721 WATER ACQUIRED BY THE CONTRACTOR

722 OTHER THAN FROM THE UNITED STATES

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

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

725 Contract may be simultaneously transported through the same distribution facilities of the
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726 Contractor subject to the following: (i) if the facilities utilized for commingling Irrigation Water

727 and non-project water were constructed without funds made available pursuant to Federal

728 Reclamation law, the provisions of Federal Reclamation law will be applicable only to the

729 Landholders of lands which receive Irrigation Water; (ii) the eligibility of land to receive

730 Irrigation Water must be established through the certification requirements as specified in the

731 Acreage Limitation Rules and Regulations (43 CFR Part 426); (iii) the water requirements of

732 Eligible Lands within the Contractor's Service Area can be established and the quantity of

733 Irrigation Water to be utilized is less than or equal to the quantity necessary to irrigate such

734 Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation Water and non-project

735 water are/were constructed with funds made available pursuant to Federal Reclamation law, the

736 non-project water will be subject to the acreage limitation provisions of Federal Reclamation

737 law, unless the Contractor pays to the United States the incremental fee described in 43 CFR

738 426.15. In determining the incremental fee, the Contracting Officer will calculate annually the

739 cost to the Federal Government, including interest of storing or delivering non-project water,

740 which for purposes of this Contract shall be determined as follows: The quotient shall be the

741 unpaid distribution system costs divided by the total irrigable acreage within the Contractors

742 Service Area. The incremental fee per acre is the mathematical result of such quotient times the

743 interest rate determined using Section 202 (3) of the Act of October 12, 1982 (96 Stat. 1263). 

744 Such incremental fee will be charged to each acre of excess or full cost land within the
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745 Contractor’s Service Area that receives non-project water through Federally financed or

746 constructed facilities. The incremental fee calculation methodology will continue during the

747 term of this Contract absent the promulgation of a contrary Reclamation- wide rule, regulation or

748 policy adopted after the Contractor has been afforded the opportunity to review and comment on

749 the proposed rule, regulation or policy. If such rule, regulation or policy is adopted it shall

750 supersede this provision. 

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

752 other than from the United States or adverse to the Project or its contractors (i.e. non-project

753 water), may be stored, conveyed and/or diverted through Project facilities, subject to the

754 completion of appropriate environmental documentation, with the approval of the Contracting

755 Officer and the execution of any contract determined by the Contracting Officer to be necessary,

756 consistent with the following provisions:

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

758 facilities and deliver said water to lands within the Contractor’s Service Area, including

759 Ineligible Lands, subject to payment to the United States and/or to any applicable Operating Non760 Federal Entity of an appropriate rate as determined by the CVP Ratesetting Policy and the

761 Reclamation Reform Act of 1982, each as amended, modified or superceded from time to time. 

762 In addition, if electrical power is required to pump non-project water through the facilities, the

763 Contractor shall be responsible for obtaining the necessary power and paying the necessary
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764 charges therefor.

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

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

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

768 other Project water service contractors; (iii) interfere with the delivery of contractual water

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

770 maintenance of the Project facilities.

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

772 shall be responsible for control, care or distribution of the non-project water before it is

773 introduced into or after it is delivered from the Project facilities. The Contractor hereby releases

774 and agrees to defend and indemnify the United States and the Operating Non-Federal Entity, and

775 their respective officers, agents, and employees, from any claim for damage to persons or

776 property, direct or indirect, resulting from Contractor’s diversion or extraction of non-project

777 water from any source.

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

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

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

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

782 Officer, the United States and the Contractor shall share priority to utilize the remaining capacity
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783 of the facilities declared to be available by the Contracting Officer for conveyance and

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

785 non-Project contractors.[DIVISIONAL ISSUE – DIVISIONS MAY SEEK LANGUAGE

786 PROVIDING FOR WHEELING AND NON-PROJECT WATER PURSUANT TO CVPIA

787 SECTION 3408(c), ETC.]

788 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

796 to or shall affect or alter the standard of judicial review applicable under federal law to any

797 opinion or determination implementing a specific provision of federal law embodied in statute or

798 regulation. 

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

800 necessary to administer this Contract that are consistent with the provisions of this Contract, the
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801 laws of the United States and of the State of California, and the rules and regulations

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

803 with the Contractor to the extent reasonably practicable.

804 COORDINATION AND COOPERATION

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

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

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

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

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

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

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

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

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

814 and determinations to be made by the respective party. 

815 (b) Within one hundred twenty (120) days following the effective date of this

816 Contract, the Contractor, other affected Project Contractors, and the Contracting Officer shall

817 arrange to meet with interested Project Contractors to develop a mutually agreeable, written

818 Project-wide process, which may be amended as necessary separate and apart from this Contract. 
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819 The goal of this process shall be to provide, to the extent practicable, the means of mutual

820 communication and interaction regarding significant decisions concerning Project operation and

821 management on a real-time basis. 

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

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

824 intent:

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

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

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

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

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

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

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

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

833 State of California to seek improved water resource management.

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

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

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

837 annually, hold division level meetings to discuss Project operations, division level water
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838 management activities, and other issues as appropriate.

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

840 hereunder, nothing in this Contract shall be construed to limit or constrain the Contracting

841 Officer’s ability to communicate, coordinate, and cooperate with the Contractor or other

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

843 safety, physical integrity of structures or facilities, or the Contracting Officer’s ability to comply

844 with applicable laws. 

845 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

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

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

854 associated with a delinquent payment.

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

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

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

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

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

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

861 received shall be applied, first to the penalty, second to the administrative charges, third to the
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862 accrued interest, and finally to the overdue payment.

863 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

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

874 nondiscrimination clause.

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

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

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

878 national origin.

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

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

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

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

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

884 employees and applicants for employment.

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

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

887 of the Secretary of Labor. 

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

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

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

891 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with
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892 such rules, regulations, and orders.

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

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

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

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

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

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

899 otherwise provided by law.

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

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

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

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

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

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

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

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

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

909 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

913 of individual water users in their obligations to the Contractor.

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

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

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

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

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

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

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

921 obligation to require advance payment for water rates which it levies.
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922 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

924 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the

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

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

927 U.S. Department of the Interior and/or Bureau of Reclamation.

928 (b) These statutes require that no person in the United States shall, on the

929 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be

930 denied the benefits of, or be otherwise subjected to discrimination under any program or activity

931 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the

932 Contractor agrees to immediately take any measures necessary to implement this obligation,

933 including permitting officials of the United States to inspect premises, programs, and documents.

934 (c) The Contractor makes this agreement in consideration of and for the

935 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or other

936 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of

937 Reclamation, including installment payments after such date on account of arrangements for

938 Federal financial assistance which were approved before such date. The Contractor recognizes

939 and agrees that such Federal assistance will be extended in reliance on the representations and

940 agreements made in this Article, and that the United States reserves the right to seek judicial

941 enforcement thereof.

942 PRIVACY ACT COMPLIANCE

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

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

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

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

947 Reform Act of 1982 (96 Stat. 1266), and pursuant to 43 CFR 426.18.

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

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

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

951 considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m).
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952 (c) The Contracting Officer or a designated representative shall provide the

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

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

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

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

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

958 of Reclamation to be the System Manager who shall be responsible for making decisions on

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

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

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

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

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

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

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

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

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

968 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

969 25. In addition to all other payments to be made by the Contractor pursuant to this

970 Contract, the Contractor shall pay to the United States, within sixty (60) days after receipt of a

971 bill and detailed statement submitted by the Contracting Officer to the Contractor for such

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

973 associated with this Contract plus indirect costs in accordance with applicable Bureau of

974 Reclamation policies and procedures. All such amounts referred to in this Article shall not

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

976 to costs for routine contract administration.
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977 WATER CONSERVATION

978 26. (a) Prior to the delivery of water provided from or conveyed through Federally

979 constructed or Federally financed facilities pursuant to this Contract, the Contractor shall be

980 implementing an effective water conservation and efficiency program based on the Contractor's

981 water conservation plan that has been determined by the Contracting Officer to meet the

982 conservation and efficiency criteria for evaluating water conservation plans established under

983 Federal law. The water conservation and efficiency program shall contain definite water

984 conservation objectives, appropriate economically feasible water conservation measures, and

985 time schedules for meeting those objectives. Continued Project Water delivery pursuant to this

986 Contract shall be contingent upon the Contractor’s continued implementation of such water

987 conservation program. In the event the Contractor's water conservation plan or any revised water

988 conservation plan completed pursuant to subdivision (d) of Article 26 of this Contract have not

989 yet been determined by the Contracting Officer to meet such criteria, due to circumstances which

990 the Contracting Officer determines are beyond the control of the Contractor, water deliveries

991 shall be made under this Contract so long as the Contractor diligently works with the Contracting

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

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

994 with the time schedules therein. 

995 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of
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996 Article 3 of this Contract equal or exceed two thousand (2,000) acre-feet per Year, the Contractor

997 shall implement the Best Management Practices identified by the time frames issued by the

998 California Urban Water Conservation Council for such M&I Water unless any such practice is

999 determined by the Contracting Officer to be inappropriate for the Contractor. 

1000 (c) The Contractor shall submit to the Contracting Officer a report on the

1001 status of its implementation of the water conservation plan on the reporting dates specified in the

1002 then existing conservation and efficiency criteria established under Federal law. 

1003 (d) At five (5)-year intervals, the Contractor shall revise its water conservation 

1004 plan to reflect the then current conservation and efficiency criteria for evaluating water

1005 conservation plans established under Federal law and submit such revised water management

1006 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then

1007 determine if the water conservation plan meets Reclamation’s then current conservation and

1008 efficiency criteria for evaluating water conservation plans established under Federal law. 

1009 (e) If the Contractor is engaged in direct ground-water recharge, such activity

1010 shall be described in the Contractor’s water conservation plan.

1011 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1012 27. Except as specifically provided in Article 17 of this Contract, the provisions of

1013 this Contract shall not be applicable to or affect non-project water or water rights now owned or
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54

1014 hereafter acquired by the Contractor or any user of such water within the Contractor's Service

1015 Area. Any such water shall not be considered Project Water under this Contract. In addition,

1016 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or

1017 any water user within the Contractor's Service Area acquires or has available under any other

1018 contract pursuant to Federal Reclamation law.

OPERATION AND MAINTENANCE BY NON-FEDERAL ENTITY15 1019

1020 28. (a) The Operation and Maintenance of a portion of the Project facilities which

1021 serve the Contractor, and responsibility for funding a portion of the costs of such Operation and

1022 Maintenance, have been transferred to the Operating Non-Federal Entity by separate agreement

1023 between the United States and the Operating Non-Federal Entity. That separate agreement shall

1024 not interfere with or affect the rights or obligations of the Contractor or the United States

1025 hereunder.

1026 (b) The Contracting Officer has previously notified the Contractor in writing

1027 that the Operation and Maintenance of a portion of the Project facilities which serve the

1028 Contractor has been transferred to the Operating Non-Federal Entity, and therefore, the

1029 Contractor shall pay directly to the Operating Non-Federal Entity, or to any successor approved

1030 by the Contracting Officer under the terms and conditions of the separate agreement between the
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1031 United States and the Operating Non-Federal Entity described in subdivision (a) of this Article,

1032 all rates, charges, or assessments of any kind, including any assessment for reserve funds, which

1033 the Operating Non-Federal Entity or such successor determines, sets, or establishes for the

1034 Operation and Maintenance of the portion of the Project facilities operated and maintained by the

1035 Operating Non-Federal Entity or such successor. Such direct payments to the Operating 

1036 Non-Federal Entity or such successor shall not relieve the Contractor of its obligation to pay

1037 directly to the United States the Contractor’s share of the Project Rates, Charges, and Tiered

1038 Pricing Components except to the extent the Operating Non-Federal Entity collects payments on

1039 behalf of the United States in accordance with the separate agreement identified in subdivision

1040 (a) of this Article. 

1041 (c) For so long as the Operation and Maintenance of any portion of the Project

1042 facilities serving the Contractor is performed by the Operating Non-Federal Entity, or any

1043 successor thereto, the Contracting Officer shall adjust those components of the Rates for Water 

1044 Delivered under this Contract representing the cost associated with the activity being performed

1045 by the Operating Non-Federal Entity or its successor.

1046 (d) In the event the Operation and Maintenance of the Project facilities

1047 operated and maintained by the Operating Non-Federal Entity is re-assumed by the United States

1048 during the term of this Contract, the Contracting Officer shall so notify the Contractor, in writing,

1049 and present to the Contractor a revised Exhibit “B” which shall include the portion of the Rates
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1050 to be paid by the Contractor for Project Water under this Contract representing the Operation and

1051 Maintenance costs of the portion of such Project facilities which have been re-assumed. The

1052 Contractor shall, thereafter, in the absence of written notification from the Contracting Officer to

1053 the contrary, pay the Rates, Charges, and Tiered Pricing Component(s) specified in the revised

1054 Exhibit “B” directly to the United States in compliance with Article 7 of this Contract.

1055 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1056 29. The expenditure or advance of any money or the performance of any obligation of

1057 the United States under this Contract shall be contingent upon appropriation or allotment of

1058 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any

1059 obligations under this Contract. No liability shall accrue to the United States in case funds are

1060 not appropriated or allotted.

1061 BOOKS, RECORDS, AND REPORTS

1062 30. (a) The Contractor shall establish and maintain accounts and other books and

1063 records pertaining to administration of the terms and conditions of this Contract, including: the

1064 Contractor's financial transactions, water supply data, and Project land and right-of-way

1065 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use

1066 data; and other matters that the Contracting Officer may require. Reports thereon shall be

1067 furnished to the Contracting Officer in such form and on such date or dates as the Contracting

1068 Officer may require. Subject to applicable Federal laws and regulations, each party to this

1069 Contract shall have the right during office hours to examine and make copies of the other party's

1070 books and records relating to matters covered by this Contract.

1071 (b) Notwithstanding the provisions of subdivision (a) of this Article, no

1072 books, records, or other information shall be requested from the Contractor by the Contracting

1073 Officer unless such books, records, or information are reasonably related to the administration or
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1074 performance of this Contract. Any such request shall allow the Contractor a reasonable period of

1075 time within which to provide the requested books, records, or information.

1076 (c) At such time as the Contractor provides information to the Contracting

1077 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided to

1078 the Operating Non-Federal Entity.

1079 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1080 31. (a) The provisions of this Contract shall apply to and bind the successors and

1081 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest

1082 therein shall be valid until approved in writing by the Contracting Officer. 

1083 (b) The assignment of any right or interest in this Contract by either party shall

1084 not interfere with the rights or obligations of the other party to this Contract absent the written

1085 concurrence of said other party.

1086 (c) The Contracting Officer shall not unreasonably condition or withhold his

1087 approval of any proposed assignment.

1088 SEVERABILITY

1089 32. In the event that a person or entity who is neither (i) a party to a Project contract,

1090 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii)

1091 an association or other form of organization whose primary function is to represent parties to

1092 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or

1093 enforceability of a provision included in this Contract and said person, entity, association, or
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1094 organization obtains a final court decision holding that such provision is legally invalid or

1095 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s),

1096 the parties to this Contract shall use their best efforts to (i) within thirty (30) days of the date of

1097 such final court decision identify by mutual agreement the provisions in this Contract which must

1098 be revised, and (ii) within three (3) months thereafter promptly agree on the appropriate

1099 revision(s). The time periods specified above may be extended by mutual agreement of the

1100 parties. Pending the completion of the actions designated above, to the extent it can do so

1101 without violating any applicable provisions of law, the United States shall continue to make the

1102 quantities of Project Water specified in this Contract available to the Contractor pursuant to the

1103 provisions of this Contract which were not found to be legally invalid or unenforceable in the

1104 final court decision.

1105 RESOLUTION OF DISPUTES

1106 33. Should any dispute arise concerning any provisions of this Contract, or the

1107 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to

1108 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting

1109 Officer referring any matter to Department of Justice, the party shall provide to the other party

1110 thirty (30) days’ written notice of the intent to take such action; Provided, That such notice shall

1111 not be required where a delay in commencing an action would prejudice the interests of the party
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1112 that intends to file suit. During the thirty (30)-day notice period, the Contractor and the

1113 Contracting Officer shall meet and confer in an attempt to resolve the dispute. Except as

1114 specifically provided, nothing herein is intended to waive or abridge any right or remedy that the

1115 Contractor or the United States may have. 

1116 OFFICIALS NOT TO BENEFIT

1117 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the

1118 Contractor shall benefit from this Contract other than as a water user or landowner in the same

1119 manner as other water users or landowners.

1120 CHANGES IN CONTRACTOR’S SERVICE AREA

1121 35. (a) While this Contract is in effect, no change may be made in the Contractor's

1122 Service Area or boundaries, by inclusion or exclusion of lands, dissolution, consolidation,

1123 merger, or otherwise, except upon the Contracting Officer's written consent.

1124 (b) Within thirty (30) days of receipt of a request for such a change, the

1125 Contracting Officer will notify the Contractor of any additional information required by the

1126 Contracting Officer for processing said request, and both parties will meet to establish a mutually

1127 agreeable schedule for timely completion of the process. Such process will analyze whether the

1128 proposed change is likely to: (i) result in the use of Project Water contrary to the terms of this

1129 Contract; (ii) impair the ability of the Contractor to pay for Project Water furnished under this

1130 Contract or to pay for any Federally-constructed facilities for which the Contractor is responsible;

1131 and (iii) have an impact on any Project Water rights applications, permits, or licenses. In
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1132 addition, the Contracting Officer shall comply with the National Environmental Policy Act and

1133 the Endangered Species Act. The Contractor will be responsible for all costs incurred by the

1134 Contracting Officer in this process, and such costs will be paid in accordance with Article 25 of

1135 this Contract.

1136 FEDERAL LAWS

1137 36. By entering into this Contract, the Contractor does not waive its rights to contest

1138 the validity or application in connection with the performance of the terms and conditions of this

1139 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with

1140 the terms and conditions of this Contract unless and until relief from application of such Federal

1141 law or regulation to the implementing provision of the Contract is granted by a court of

1142 competent jurisdiction.

1143 NOTICES

1144 37. Any notice, demand, or request authorized or required by this Contract shall be

1145 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or

1146 delivered to the Area Manager __________________________________________ , and on

1147 behalf of the United States, when mailed, postage prepaid, or delivered to the Board of

1148 Directors/City Council of the ____________________________. The designation of the

1149 addressee or the address may be changed by notice given in the same manner as provided in this

1150 Article for other notices.
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1151 CONFIRMATION OF CONTRACT

1152 38. The Contractor, after the execution of this Contract, shall promptly seek to secure

1153 a decree of a court of competent jurisdiction of the State of California, confirming the execution

1154 of this Contract. The Contractor shall furnish the United States a certified copy of the final

1155 decree, the validation proceedings, and all pertinent supporting records of the court approving

1156 and confirming this Contract, and decreeing and adjudging it to be lawful, valid, and binding on

1157 the Contractor. 

1158

1159 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the

1160 day and year first above written.

1161 THE UNITED STATES OF AMERICA

1162 By:_________________________________

1163 Regional Director, Mid-Pacific Region

1164 Bureau of Reclamation

1165 [NAME OF CONTRACTOR]

1166 By:_________________________________

1167 President of the Board of Directors
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1 Attest:

2 By:_______________________________

3 Secretary of the Board of Directors
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EXHIBIT A

[Map or Description of Service Area]
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EXHIBIT B

[Initial Rates and Charges]

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