M&I Only 

R. O. CVP-Wide Draft 4/19-2004 

Shasta CSD Draft 3/01-2004 

Shasta CSD Draft 7/22-2003 

Shasta CSD Draft 7/18-2003 

Shasta CSD Draft 6/26-2003 

Shasta/Trinity Division Draft 6/16-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

14-06-200-862A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

AND

SHASTA COMMUNITY SERVICES DISTRICT

PROVIDING FOR PROJECT WATER SERVICE

FROM THE TRINITY RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals ............................................................................................ 1-4 

 1 Definitions............................................................................................................ 4-7 

 2 Term of Contract..................................................................................................7-9 

 3 Water to be Made Available and Delivered to the Contractor...........................9-12 

 4 Time for Delivery of Water .............................................................................12-13 

 5 Point of Diversion and Responsibility for Distribution of Water....................13-15 

 6 Measurement of Water Within the Contractor’s Service Area........................15-16 

 7 Rates and Method of Payment for Water.........................................................16-22 

 8 Non-Interest Bearing Operation and Maintenance Deficits.................................. 22 

 9 Sales, Transfers, or Exchanges of Water .........................................................22-23 

 10 Application of Payments and Adjustments........................................................... 23 

 11 Temporary Reductions--Return Flows ............................................................24-25 

 12 Constraints on the Availability of Water .........................................................25-26 

 13 Unavoidable Groundwater Percolation................................................................. 26 

 14 Rules and Regulations........................................................................................... 26 

 15 Water and Air Pollution Control........................................................................... 26 

 16 Quality of Water .............................................................................................. 26-27 

 17 Water Acquired by the Contractor Other Than From the United States..........27-28 

 18 Opinions and Determinations ..........................................................................28-29 

 19 Coordination and Cooperation.........................................................................29-31 
Contract No. 14-06-200-862A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 20 Charges for Delinquent Payments ........................................................................ 31 

 21 Equal Opportunity............................................................................................31-32 

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 32 

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

 24 Privacy Act Compliance ....................................................................................... 33 

 25 Contractor to Pay Certain Miscellaneous Costs.................................................... 33 

 26 Water Conservation .........................................................................................34-35 

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

 28 Operation and Maintenance by Operating Non-Federal Entity ............................ 35 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 35 

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

 31 Assignment Limited--Successors and Assigns Obligated ...............................36-37 

 32 Severability ........................................................................................................... 36 

 33 Resolution of Disputes.....................................................................................37-38 

 34 Officials Not to Benefit......................................................................................... 37 

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

 36 Federal Laws....................................................................................................38-39 

 37 Notices .................................................................................................................. 38

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

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

 Exhibit A – Map of Contractor’s Service Area 

 Exhibit B – Rates and Charges 
M&I Only 

R. O. CVP-Wide Draft 4/19-2004 

Shasta CSD Draft 3/01-2004 

Shasta CSD Draft 7/22-2003 

Shasta CSD Draft 7/18-2003 

Shasta CSD Draft 6/26-2003 

Shasta/Trinity Division Draft 6/16-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

14-06-200-862A-LTR1 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

4 Central Valley Project, California 

5 LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

6 AND

7 SHASTA COMMUNITY SERVICES DISTRICT

8 PROVIDING FOR PROJECT WATER SERVICE

9 FROM THE TRINITY RIVER DIVISION

10 THIS CONTRACT, made this _____ day of ____________________, 20___, in 

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

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

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

14 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 

15 (100 Stat. 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all 

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

17 OF AMERICA, hereinafter referred to as the United States, and SHASTA COMMUNITY 

18 SERVICES DISTRICT, hereinafter referred to as the Contractor, a public agency of the State of 

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

20 WITNESSETH, That:

21 EXPLANATORY RECITALS

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

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

24 flood control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection 
Contract No. 14-06-200-862A-LTR1 

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

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

27 and the San Joaquin River and their tributaries; and 

 [2nd 28 ] WHEREAS, the United States constructed the Spring Creek Power Conduit 

29 which will be used in the furnishing of water to the Contractor pursuant to the terms of this 

30 Contract; and 

 [3rd 31 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

 [4th 33 ] WHEREAS, the Contractor and the United States entered into Contract 

34 No. 14-06-200-862A which established terms for the delivery to the Contractor of Central Valley 

35 Project Water from the Trinity River Division from March 25, 1964, through December 31, 

36 2003; and 

 [5th 37 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

38 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

39 interim renewal contract(s) identified as Contract No(s). 14-06-200-862A-IR1 and 14-06-200-

40 862A-IR2, the current of which is hereinafter referred to as the Existing Contract, which 

41 provided for the continued water service to the Contractor from March 1, 2004, through 

42 February 28, 2006; and 

 [6th 43 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

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

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

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

 [7th 48 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

49 environmental review necessary to provide for long-term renewal of the Existing Contract; and 
Contract No. 14-06-200-862A-LTR1 

3

 [8th 50 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 53 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

54 of its obligations under the Existing Contract; and 

 [10th 55 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

56 Contracting Officer that the Contractor has utilized the Project Water supplies available to it for 

57 reasonable and beneficial use and/or has demonstrated projected future demand for water use 

58 such that the Contractor has the capability and expects to utilize fully for reasonable and 

59 beneficial use the quantity of Project Water to be made available to it pursuant to this Contract; 

60 and 

 [11th 61 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

63 as an essential portion of its water supply; and 

 [12th 64 ] WHEREAS, the economies of regions within the Project, including the 

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

66 Project; and 

67 [12.1] WHEREAS, Contractor has made and will continue to make substantial capital 

68 investments in diversion and treatment facilities, and requires a consistent, predictable quality of 

69 raw water in order to meet Safe Drinking Water Act requirements for its municipal customers, 

70 and to provide a consistent and predictable quality of water for its industrial customers; and 

 [13th 71 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

73 Project for all Project purposes; and 

74 [13.1] WHEREAS, the Contractor is located in the region of the Redding Groundwater 

75 Basin, and it is the desire of both the United States and the Contractor to facilitate the 
Contract No. 14-06-200-862A-LTR1 

4

76 cooperative efforts of local water service agencies to develop the Redding Groundwater Basin 

77 for conjunctive management and use with Project Water supplies, to maximize the reasonable 

78 beneficial use of water for the water service agencies and their customers in the region; and 

 [14th 79 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

84 of the United States relative to the Project; and 

 [15th 85 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

86 relationship in order to achieve their mutual goals; and 

 [16th 87 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

91 DEFINITIONS

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

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

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

95 both dates inclusive; 

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

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

98 annually by the Contracting Officer pursuant to this Contract; 

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

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

101 Contract Total; 
Contract No. 14-06-200-862A-LTR1 

5

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

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

104 or regulation; 

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

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

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

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

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

110 without amendment of this Contract; 

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

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

113 (h) Omitted; 

114 (i) Omitted; 

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

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

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

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

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

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

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

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

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

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

125 of the Rules and Regulations for the RRA; 

126 (k) Omitted; 

127 (l) Omitted; 
Contract No. 14-06-200-862A-LTR1 

6

128 (m) Omitted; 

129 (n) Omitted; 

130 (o) “Municipal and Industrial (M&I) Water” shall mean Project Water made 

131 available to the Contractor for purposes other than the commercial production of agricultural 

132 crops or livestock; 

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

134 the delivery of M&I Water; 

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

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

137 maintenance of Project facilities; 

138 (r) Omitted; 

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

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

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

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

143 Reclamation law; 

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

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

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

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

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

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

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

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

152 preceding contract(s); 
Contract No. 14-06-200-862A-LTR1 

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

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

155 through any agency of the Department of the Interior; 

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

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

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

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

160 Officer; 

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

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

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

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

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

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

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

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

169 TERM OF CONTRACT 

170 2. (a) This Contract shall be effective March 1, 20___, through February 28, 

171 20___, and supercedes the Existing Contract. In the event the Contractor wishes to renew this 

172 Contract beyond February 28, 20___, the Contractor shall submit a request for renewal in writing 

173 to the Contracting Officer no later than two years prior to the date this Contract expires. 

174 (b) Omitted. 

175 (c) This Contract shall be renewed for successive periods of up to 40 years 

176 each, which periods shall be consistent with then-existing Reclamation-wide policy, under terms 

177 and conditions mutually agreeable to the parties and consistent with Federal and State law. The 

178 Contractor shall be afforded the opportunity to comment to the Contracting Officer on the 
Contract No. 14-06-200-862A-LTR1 

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179 proposed adoption and application of any revised policy applicable to the delivery of M&I Water 

180 that would limit the term of any subsequent renewal contract with the Contractor for the 

181 furnishing of M&I Water to less than 40 years. 

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

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

184 Contract, of whether a conversion to a contract under said subsection (c)(1) of Section 9 of the 

185 Reclamation Project Act of 1939 can be accomplished. The Contracting Officer anticipates that 

186 during the term of this Contract, all authorized Project construction expected to occur will have 

187 occurred, and on that basis the Contracting Officer agrees upon such completion to allocate all 

188 costs that are properly assignable to the Contractor, and agrees further that, at any time after such 

189 allocation is made, and subject to satisfaction of the condition set out in this subdivision, this 

190 Contract shall, at the request of the Contractor, be converted to a contract under said subsection 

191 9(c)(1), of the Reclamation Project Act of 1939, subject to applicable Federal law and under 

192 stated terms and conditions mutually agreeable to the Contractor and the Contracting Officer. A 

193 condition for such conversion to occur shall be a determination by the Contracting Officer that, 

194 account being taken of the amount credited to return by the Contractor as provided for under 

195 Federal Reclamation law, the remaining amount of construction costs assignable for ultimate 

196 return by the Contractor can probably be repaid to the United States within the term of a contract 

197 under said subsection 9(c)(1). If the remaining amount of costs that are properly assignable to 

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

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

200 made. Further, the Contracting Officer shall make such a determination as soon thereafter as 

201 possible so as to permit, upon request of the Contractor and satisfaction of the condition set out 
Contract No. 14-06-200-862A-LTR1 

9

202 above, conversion to a contract under said subsection 9(c)(1). In the event such determination of 

203 costs has not been made at a time which allows conversion of this Contract during the term of 

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

205 the parties shall incorporate in any subsequent renewal contract as described in subdivision (b) of 

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

207 subdivision. 

208 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

211 this Contract, the Contracting Officer shall make available for delivery to the Contractor 1,000 

212 acre-feet of Project Water for M&I purposes. Provided, That in no event shall the United States, 

213 at any time, be obligated to furnish water at the point or points of delivery at a rate in excess of 

214 1,750 gallons per minute. The United States shall not be responsible for the furnishing of water 

215 at heads or pressures sufficient to deliver water into or through the Contractor’s facilities. Water 

216 Delivered to the Contractor in accordance with this subdivision shall be scheduled and paid for 

217 pursuant to the provisions of Articles 4 and 7 of this Contract. 

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

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

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

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

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

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

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

225 water made available to the Contractor was 920 acre-feet. Nothing in subdivision (b) of this 

226 Article shall affect the rights and obligations of the parties under any provision of this Contract. 
Contract No. 14-06-200-862A-LTR1 

10

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

228 applicable legal requirements. 

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

230 furnished pursuant to this Contract. Ground-water recharge programs (direct, indirect, or in 

231 lieu), ground-water banking programs, surface water storage programs, and other similar 

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

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

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

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

236 Article 26 of this Contract; Provided, further, That such water conservation plan demonstrates 

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

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

239 compliance with Federal Reclamation law. Ground-water recharge programs, ground-water 

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

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

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

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

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

245 guidelines. 

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

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

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

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

250 Contract, which evidences in excess of 39 years of diversions for M&I purposes of the quantities 

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

252 developing an appropriate baseline for biological assessment(s) prepared pursuant to the ESA, 
Contract No. 14-06-200-862A-LTR1 

11

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

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

255 respect to any biological opinion or other environmental documentation referred to in this 

256 Article. 

257 (f) As soon as possible following each declaration of Water Made Available 

258 under Article 4 of this Contact, the Contracting Officer will make a determination whether 

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

260 addition to the Contract Total under Article 3 of this Contract during the Year without adversely 

261 impacting other Project Contractors. At the request of the Contractor, the Contracting Officer 

262 will consult with the Contractor prior to making such a determination. If the Contracting Officer 

263 determines that Project Water, or other water available to the Project, can be made available to 

264 the Contractor, the Contracting Officer will announce the availability of such water and shall so 

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

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

267 equitable and efficient allocation of such water. If the Contractor requests the delivery of any 

268 quantity of such water, the Contracting Officer shall make such water available to the Contractor 

269 in accordance with applicable statutes, regulations, guidelines, and policies. 

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

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

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

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

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

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

276 guidelines, and policies. 

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

278 State law to the reasonable and beneficial use of Water Delivered pursuant to this Contract 
Contract No. 14-06-200-862A-LTR1 

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

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

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

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

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

284 contracts. 

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

286 delivered for other than M&I purposes upon written approval by the Contracting Officer in 

287 accordance with the terms and conditions of such approval. 

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

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

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

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

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

293 Contractor’s position in such a proceeding; Provided further, That in such proceedings the 

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

295 Contract to use Project Water. 

296 TIME FOR DELIVERY OF WATER

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

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

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

300 Historic Average and will be updated monthly, and more frequently if necessary, based on then301 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

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

303 operations and the basis of the estimate, with relevant supporting information, upon the written 
Contract No. 14-06-200-862A-LTR1 

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

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

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

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

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

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

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

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

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

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

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

315 during any Year. 

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

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

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

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

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

321 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

323 Contract shall be delivered to the Contractor at the downstream end of the metering equipment 

324 installed by the United States at Station 98+60 of the Spring Creek Power Conduit and any 

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

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

327 (b) Omitted. 

328 (c) Omitted. 
Contract No. 14-06-200-862A-LTR1 

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

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

331 United States at the point or points of delivery established pursuant to subdivision (a) of this 

332 Article. Upon the request of either party to this Contract, the Contracting Officer shall 

333 investigate the accuracy of such measurements and shall take any necessary steps to adjust any 

334 errors appearing therein. For any period of time when accurate measurements have not been 

335 made, the Contracting Officer shall consult with the Contractor prior to making a final 

336 determination of the quantity delivered for that period of time. 

337 (e) (1) All pumps, pipelines, storage tanks, distribution lines, and other 

338 facilities, hereinafter referred to as the facilities, required to take, convey, and distribute water to 

339 the water users served by the Contractor shall be constructed or installed by the Contractor at its 

340 sole expense. Operation and maintenance of the facilities and the expense thereof also shall be 

341 the sole responsibility of the Contractor. The facilities may be installed, operated, and 

342 maintained on or across property of the United States in the area of the turnout(s) described in 

343 subdivision (a) of this Article subject to such restrictions and regulations as to location, method 

344 of installation, and operation and maintenance as may be promulgated by the Contracting 

345 Officer. 

346 (e) (2) The Contracting Officer shall not be responsible for the control, 

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

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

349 Contractor shall indemnify the United States, its officers, employees, agents, and assigns on 

350 account of damage or claim of damage of any nature whatsoever for which there is legal 

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

352 with the control, carriage, handling, use, disposal, or distribution of such Water Delivered

353 beyond such delivery points, except for any damage or claim arising out of (i) acts or omissions 

354 of the Contracting Officer or any of its officers, employees, agents, or assigns, with the intent of 
Contract No. 14-06-200-862A-LTR1 

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

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

357 Officer or any of its officers, employees, agents, or assigns, or (iv) damage or claims resulting 

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

359 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

360 6. The Contractor has established a measuring program satisfactory to the 

361 Contracting Officer. The Contractor shall ensure that all surface water delivered for M&I 

362 purposes is measured at each M&I service connection. The water measuring devices or water 

363 measuring methods of comparable effectiveness must be acceptable to the Contracting Officer. 

364 The Contractor shall be responsible for installing, operating, and maintaining and repairing all 

365 such measuring devices and implementing all such water measuring methods at no cost to the 

366 United States. The Contractor shall use the information obtained from such water measuring 

367 devices or water measuring methods to ensure its proper management of the water, to bill water 

368 users for water delivered by the Contractor; and, if applicable, to record water delivered for M&I 

369 purposes by customer class as defined in the Contractor’s water conservation plan provided for 

370 in Article 26 of this Contract. Nothing herein contained, however, shall preclude the Contractor 

371 from establishing and collecting any charges, assessments, or other revenues authorized by 

372 California law. The Contractor shall include a summary of all its annual surface water deliveries 

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

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

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

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

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

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

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

380 the locations at which such devices and/or methods are not yet being used including a time 
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381 schedule for implementation at such locations. The Contracting Officer shall advise the 

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

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

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

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

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

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

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

389 compliance with subdivision (a) of this Article. 

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

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

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

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

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

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

 (e) The Contracting Officer shall inform the Contractor on or before the 20th 396 

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

398 RATES AND METHOD OF PAYMENT FOR WATER

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

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

401 accordance with (i) the Secretary’s then-existing ratesetting policy for M&I Water. Such 

402 ratesetting policy shall be amended, modified, or superceded only through a public notice and 

403 comment procedure; (ii) applicable Federal Reclamation law and associated rules and 

404 regulations, or policies; and (iii) other applicable provisions of this Contract. Payments shall be 

405 made by cash transaction, electronic funds transfer, or any other mechanism as may be agreed to 

406 in writing by the Contractor and the Contracting Officer. The Rates, Charges, and Tiered Pricing 
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407 Component applicable to the Contractor upon execution of this Contract are set forth in Exhibit 

408 “B,” as may be revised annually. 

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

410 and Tiered Pricing Component as follows: 

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

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

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

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

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

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

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

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

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

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

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

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

423 comment on such computations and cost allocations. By December 31 of each Calendar Year, 

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

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

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

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

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

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

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

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

432 Contractor shall make an advance payment to the United States, at the Rate(s) set under 
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433 subdivision (a) of this Article, for the Water Scheduled to be delivered pursuant to this Contract 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

448 day of February. 

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

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

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

452 month of delivery; Provided, That the Contractor may be granted an exception from the Tiered 

453 Pricing Component pursuant to subdivision (j)(2) of this Article. The payments shall be 

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

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

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

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

458 through the adjustment of payments due to the United States for Charges for the next month. 
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459 Any amount to be paid for past due payment of Charges and the Tiered Pricing Component shall 

460 be computed pursuant to Article 20 of this Contract. 

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

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

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

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

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

466 (a) of this Article. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

483 policies, and procedures used for establishing Rates, Charges, and the Tiered Pricing 

484 Component, and/or for making and allocating payments, other than those set forth in this Article 
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485 may be in the mutual best interest of the parties, it is expressly agreed that the parties may enter 

486 into agreements to modify the mechanisms, policies, and procedures for any of those purposes 

487 while this Contract is in effect without amending this Contract. 

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

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

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

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

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

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

494 subdivision (a) of this Article and the M&I Full Cost Water Rate. The Tiered Pricing 

495 Component for the amount of Water Delivered which exceeds 90 percent of the Contract Total 

496 shall equal the difference between (i) the Rate established under subdivision (a) of this Article 

497 and (ii) the M&I Full Cost Water Rate. 

498 (2) Omitted. 

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

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

501 Contractor transfers to others but shall not include Project Water transferred and delivered to the 

502 Contractor, nor shall it include the additional water provided to the Contractor under the 

503 provisions of subdivision (f) of Article 3 of this Contract. 

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

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

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

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

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

509 which implement the Contracting Officer’s ratesetting policies will not be implemented until the 
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510 Contracting Officer has provided the Contractor an opportunity to discuss the nature, need, and 

511 impact of the proposed change. 

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

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

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

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

516 accordance with the then applicable Project ratesetting policy. If the Contractor is receiving 

517 lower Rates and Charges because of inability to pay and is transferring Project Water to another 

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

519 for transferred Project Water shall be the Contractor’s Rates and Charges and will not be 

520 adjusted to reflect the Contractor’s inability to pay. 

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

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

523 (n) With respect to the Rates for M&I Water, the Contractor asserts that it is 

524 not legally obligated to pay any Project deficits claimed by the United States to have accrued as 

525 of the date of this Contract or deficit-related interest charges thereon. By entering into this 

526 Contract, the Contractor does not waive any legal rights or remedies that it may have with 

527 respect to such disputed issues. Notwithstanding the execution of this Contract, and payments 

528 made hereunder, the Contractor may challenge in the appropriate administrative or judicial 

529 forums: (1) the existence, computation, or imposition of any deficit charges accruing during the 

530 term of the Existing Contract and any preceding interim renewal contracts, if applicable; (2) 

531 interest accruing on any such deficits; (3) the inclusion of any such deficit charges or interest in 

532 the Rates; (4) the application by the United States of payments made by the Contractor under its 

533 Existing Contract and any preceding interim renewal contracts, if applicable; and (5) the 

534 application of such payments in the Rates. The Contracting Officer agrees that the Contractor 

535 shall be entitled to the benefit of any administrative or judicial ruling in favor of any Project 
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536 M&I contractor on any of these issues, and credits for payments theretofore made, Provided,

537 That the basis for such ruling is applicable to the Contractor. 

538 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

541 liability therefor. 

542 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

551 documentation should include, as appropriate, an analysis of ground-water impacts and 

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

553 both the transferor and transferee. 

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

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

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

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

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

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

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

561 Following the completion of the environmental documentation, such transfers addressed in such 
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562 documentation shall be conducted with advance notice to the Contracting Officer, but shall not 

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

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

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

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

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

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

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

570 years, for M&I use, ground-water recharge, water banking, similar ground-water activities, 

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

572 delivered to established cropland, wildlife refuges, ground-water basins or M&I use; (ii) occur 

573 within a single Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water 

574 through existing facilities with no new construction or modifications to facilities and be between 

575 existing Project Contractors and/or the Contractor and the United States, Department of the 

576 Interior; and (v) comply with all applicable Federal, State, and local or tribal laws and 

577 requirements imposed for protection of the environment and Indian Trust Assets, as defined 

578 under Federal law. 

579 (d) For the purpose of determining whether Section 3405(a)(1)(M) of the 

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

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

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

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

584 Rivers. 

585 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

587 O&M, capital, and deficit (if any) obligations for the Year shall be applied first to any current 
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588 liabilities of the Contractor arising out of this Contract then due and payable. Overpayments of 

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

590 of such overpayment, at the option of the Contractor, may be credited against amounts to become 

591 due to the United States by the Contractor. With respect to overpayment, such refund or 

592 adjustment shall constitute the sole remedy of the Contractor or anyone having or claiming to 

593 have the right to the use of any of the Project Water supply provided for herein. All credits and 

594 refunds of overpayments shall be made within 30 days of the Contracting Officer obtaining 

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

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

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

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

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

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

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

602 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

607 provided in this Contract. 

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

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

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

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

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

613 discontinuance or reduction, except in case of emergency, in which case no notice need be given; 
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614 Provided, That the United States shall use its best efforts to avoid any discontinuance or 

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

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

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

618 or reduction. 

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

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

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

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

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

624 claiming by, through, or under the Contractor. 

625 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

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

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

630 Contractor of said determination as soon as practicable. 

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

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

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

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

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

636 (c) Omitted. 

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

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

639 amended, modified, or superceded only through a public notice and comment procedure. 
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640 (e) By entering into this Contract, the Contractor does not waive any legal 

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

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

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

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

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

646 proceeding. 

647 UNAVOIDABLE GROUNDWATER PERCOLATION

648 13. Omitted. 

649 RULES AND REGULATIONS

650 14. The parties agree that the delivery of Project Water or use of Federal facilities 

651 pursuant to this Contract is subject to Federal Reclamation law, as amended and supplemented, 

652 and the rules and regulations promulgated by the Secretary of the Interior under Federal 

653 Reclamation law. 

654 WATER AND AIR POLLUTION CONTROL

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

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

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

658 authorities. 

659 QUALITY OF WATER

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

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

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

663 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

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

665 obligation to construct or furnish water treatment facilities to maintain or to improve the quality 
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666 of Water Delivered to the Contractor pursuant to this Contract. The United States does not 

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

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

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

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

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

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

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

674 Service Area. 

675 WATER ACQUIRED BY THE CONTRACTOR

676 OTHER THAN FROM THE UNITED STATES

677 17. (a) Omitted. 

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

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

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

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

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

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

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

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

686 policy, the RRA, and the Project use power policy, if such Project use power policy is applicable, 

687 each as amended, modified, or superceded from time to time. 

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

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

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

691 available to other Project Contractors; (iii) interfere with the delivery of contractual water 
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692 entitlements to any other Project Contractors; or (iv) interfere with the physical maintenance of 

693 the Project facilities. 

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

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

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

697 States, and its respective officers, agents, and employees, from any claim for damage to persons 

698 or property, direct or indirect, resulting from the acts of the Contractor, its officers’, employees’, 

699 agents’ or assigns’, act(s) in (i) extracting or diverting non-Project water from any source, or (ii) 

700 diverting such non-Project water into Project facilities. 

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

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

703 ground-water management plan for the area from which it was extracted. 

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

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

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

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

708 non-Project contractors. 

709 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

717 intended to or shall affect or alter the standard of judicial review applicable under Federal law to 
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718 any opinion or determination implementing a specific provision of Federal law embodied in 

719 statute or regulation. 

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

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

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

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

724 with the Contractor to the extent reasonably practicable. 

725 COORDINATION AND COOPERATION

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

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

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

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

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

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

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

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

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

735 and determinations to be made by the respective party. 

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

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

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

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

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

741 and interaction regarding significant decisions concerning Project operation and management on 

742 a real-time basis. 
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743 (c) In light of the factors referred to in subdivision (b) of Article 3 of this 

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

745 intent: 

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

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

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

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

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

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

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

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

754 State of California to seek improved water resource management. 

755 (3.1) The Secretary and the Contractor desire to work together to 

756 maximize the reasonable beneficial use of water for their mutual benefit. As a consequence, the 

757 Secretary and the Contractor will work in partnership and with others in the region of the 

758 Redding Groundwater Basin, including other Contractors in the Shasta and Trinity Divisions of 

759 the Project, to facilitate the better integration with the region of the Redding Groundwater Basin 

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

761 surface water and groundwater, transfers and exchanges of water, the development and better 

762 utilization of surface water storage, the effective utilization of waste, seepage and return flow 

763 water, and other operational and management options that may be identified in the future. 

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

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

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

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

768 management activities, and other issues as appropriate. 
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769 (d) Without limiting the contractual obligations of the Contracting Officer 

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

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

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

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

774 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

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

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

783 associated with a delinquent payment. 

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

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

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

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

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

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

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

791 accrued interest, and finally to the overdue payment. 

792 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

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

803 nondiscrimination clause. 
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804 (b) The Contractor will, in all solicitations or advertisements for employees 

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

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

807 national origin. 

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

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

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

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

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

813 employees and applicants for employment. 

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

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

816 of the Secretary of Labor. 

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

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

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

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

821 such rules, regulations, and orders. 

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

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

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

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

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

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

828 otherwise provided by law. 

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

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

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

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

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

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

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

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

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

838 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

842 of individual water users in their obligations to the Contractor. 
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843 (b) The payment of charges becoming due hereunder is a condition precedent 

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

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

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

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

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

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

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

851 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

853 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

870 enforcement thereof. 

871 PRIVACY ACT COMPLIANCE

872 24. Omitted. 

873 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

874 25. In addition to all other payments to be made by the Contractor pursuant to this 

875 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

876 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

877 of direct cost incurred by the United States for work requested by the Contractor associated with 
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878 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

879 and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

880 to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

881 contract administration. 

882 WATER CONSERVATION

883 26. (a) Prior to the delivery of water provided from or conveyed through 

884 Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor 

885 shall be implementing an effective water conservation and efficiency program based on the 

886 Contractor's water conservation plan that has been determined by the Contracting Officer to meet 

887 the conservation and efficiency criteria for evaluating water conservation plans established under 

888 Federal law. The water conservation and efficiency program shall contain definite water 

889 conservation objectives, appropriate economically feasible water conservation measures, and 

890 time schedules for meeting those objectives. Continued Project Water delivery pursuant to this 

891 Contract shall be contingent upon the Contractor’s continued implementation of such water 

892 conservation program. In the event the Contractor's water conservation plan or any revised water 

893 conservation plan completed pursuant to subdivision (d) of Article 26 of this Contract have not 

894 yet been determined by the Contracting Officer to meet such criteria, due to circumstances which 

895 the Contracting Officer determines are beyond the control of the Contractor, water deliveries 

896 shall be made under this Contract so long as the Contractor diligently works with the Contracting 

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

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

899 with the time schedules therein. 

900 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

901 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall 

902 implement the Best Management Practices identified by the time frames issued by the California 
Contract No. 14-06-200-862A-LTR1 

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903 Urban Water Conservation Council for such M&I Water unless any such practice is determined 

904 by the Contracting Officer to be inappropriate for the Contractor. 

905 (c) The Contractor shall submit to the Contracting Officer a report on the 

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

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

908 (d) At five-year intervals, the Contractor shall revise its water conservation 

909 plan to reflect the then-current conservation and efficiency criteria for evaluating water 

910 conservation plans established under Federal law and submit such revised water management 

911 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

912 determine if the water conservation plan meets Reclamation’s then-current conservation and 

913 efficiency criteria for evaluating water conservation plans established under Federal law. 

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

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

916 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

917 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

918 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

919 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

920 Area. Any such water shall not be considered Project Water under this Contract. In addition, 

921 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

922 any water user within the Contractor's Service Area acquires or has available under any other 

923 contract pursuant to Federal Reclamation law. 

924 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

925 28. Omitted. 

926 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

927 29. The expenditure or advance of any money or the performance of any obligation of 

928 the United States under this Contract shall be contingent upon appropriation or allotment of 

929 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 
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930 obligations under this Contract. No liability shall accrue to the United States in case funds are 

931 not appropriated or allotted. 

932 BOOKS, RECORDS, AND REPORTS

933 30. (a) The Contractor shall establish and maintain accounts and other books and 

934 records pertaining to administration of the terms and conditions of this Contract, including: the 

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

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

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

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

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

940 Contract shall have the right during office hours to examine and make copies of the other party's 

941 books and records relating to matters covered by this Contract. 

942 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

943 books, records, or other information shall be requested from the Contractor by the Contracting 

944 Officer unless such books, records, or information are reasonably related to the administration or 

945 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

946 time within which to provide the requested books, records, or information. 

947 (c) Omitted. 

948 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

949 31. (a) The provisions of this Contract shall apply to and bind the successors and 

950 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

951 therein shall be valid until approved in writing by the Contracting Officer. 

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

953 shall not interfere with the rights or obligations of the other party to this Contract absent the 

954 written concurrence of said other party. 

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

956 approval of any proposed assignment. 

957 SEVERABILITY

958 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

959 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

960 an association or other form of organization whose primary function is to represent parties to 

961 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 
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962 enforceability of a provision included in this Contract and said person, entity, association, or 

963 organization obtains a final court decision holding that such provision is legally invalid or 

964 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

965 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

966 final court decision identify by mutual agreement the provisions in this Contract which must be 

967 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

968 The time periods specified above may be extended by mutual agreement of the parties. Pending 

969 the completion of the actions designated above, to the extent it can do so without violating any 

970 applicable provisions of law, the United States shall continue to make the quantities of Project 

971 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

972 Contract which were not found to be legally invalid or unenforceable in the final court decision. 

973 RESOLUTION OF DISPUTES

974 33. Should any dispute arise concerning any provisions of this Contract, or the 

975 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

976 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

977 Officer referring any matter to Department of Justice, the party shall provide to the other party 

978 30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

979 required where a delay in commencing an action would prejudice the interests of the party that 

980 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

981 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

982 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

983 United States may have. 

984 OFFICIALS NOT TO BENEFIT

985 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

986 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

987 manner as other water users or landowners. 
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988 CHANGES IN CONTRACTOR’S SERVICE AREA

989 35. (a) While this Contract is in effect, no change may be made in the 

990 Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

991 or otherwise, except upon the Contracting Officer's written consent. 

992 (b) Within 30 days of receipt of a request for such a change, the Contracting 

993 Officer will notify the Contractor of any additional information required by the Contracting 

994 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

995 schedule for timely completion of the process. Such process will analyze whether the proposed 

996 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

997 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

998 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

999 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

1000 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 

1001 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

1002 be paid in accordance with Article 25 of this Contract. 

1003 FEDERAL LAWS

1004 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1005 the validity or application in connection with the performance of the terms and conditions of this 

1006 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1007 the terms and conditions of this Contract unless and until relief from application of such Federal 

1008 law or regulation to the implementing provision of the Contract is granted by a court of 

1009 competent jurisdiction. 

1010 NOTICES

1011 37. Any notice, demand, or request authorized or required by this Contract shall be 

1012 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1013 delivered to the Area Manager, Bureau of Reclamation, Northern California Area Office, 16349 

1014 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalf of the United States, when 

1015 mailed, postage prepaid, or delivered to the Board of Directors of the Shasta Community 

1016 Services District, P. O. Box 2520, 10711 French Alley, Shasta, California 96087. The 
Contract No. 14-06-200-862A-LTR1 

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1017 designation of the addressee or the address may be changed by notice given in the same manner 

1018 as provided in this Article for other notices. 

1019 CONFIRMATION OF CONTRACT

1020 38. The Contractor, after the execution of this Contract, shall furnish to the 

1021 Contracting Officer evidence that pursuant to the laws of the State of California, the Contractor 

1022 is a legally constituted entity and the Contract is lawful, valid, and binding on the Contractor. 

1023 This Contract shall not be binding on the United States until such evidence has been provided to 

1024 the Contracting Officer’s satisfaction. 
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1025 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

1026 the day and year first above written. 

1027 THE UNITED STATES OF AMERICA 

1028 By: ______________________________________ 

1029 Regional Director, Mid-Pacific Region 

1030 Bureau of Reclamation 

1031 SHASTA COMMUNITY 

1032 SERVICES DISTRICT 

1033 By: ______________________________________ 

1034 President of the Board of Directors 

1035 Attest: 

1036 By: _______________________________ 

1037 Secretary of the Board of Directors 

1038 (I:\LTRC\Draf LTRC\04-19-2004 Shasta CSD LTRC Final Draft Contract.doc) 
Contract No. 14-06-200-862A-LTR1 

EXHIBIT A

[Map or Description of Contractor’s Service Area]
Contract No. 14-06-200-862A-LTR1 

EXHIBIT B 

2004 Water Rates and Charges 

Shasta Community Services District – Spring Creek Power Conduit

 M&I COST OF SERVICE RATES:

 Capital Rate: $ 8.19 

 O&M Rates: 

Water Marketing 5.01 

Storage 6.38 

 Deficit Rate: 2.46 

 CFO/PRF Adjustment Rate 1/ 2.21

 TOTAL $24.25 

 M&I FULL COST RATE: $29.32

 CHARGES UNDER P.L. 102-575 TO THE

 RESTORATION FUND 2/ 

 Restoration Payments (3407(d)(2)(A)) $15.64

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

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

those costs be deferred. 

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

pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges are on a fiscal year 

basis (10/1 - 9/30).