M&I Only 

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

Keswick Draft 3/01-2004 

Keswick Draft 7/22-2003 

Keswick Draft 7/18-2003 

Keswick Draft 6/27-2003 

Shasta/Trinity Division Draft 6/16-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

14-06-200-1307A-LTR1 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT BETWEEN THE UNITED STATES 

AND

SHASTA COUNTY FOR THE BENEFIT OF

COUNTY SERVICE AREA NO. 25 -- KESWICK

PROVIDING FOR PROJECT WATER SERVICE

FROM THE TRINITY RIVER DIVISION

Table of Contents

Article No. Title Page No.

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

 Explanatory Recitals ............................................................................................ 2-4 

 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 .................................................................................. 13 

 5 Point of Diversion and Responsibility for Distribution of Water....................14-15 

 6 Measurement of Water Within the Contractor’s Service Area........................15-17 

 7 Rates and Method of Payment for Water.........................................................17-22 

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

 9 Sales, Transfers, or Exchanges of Water .........................................................22-24 

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

 11 Temporary Reductions--Return Flows ................................................................. 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........................................................................... 27 

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

 17 Water Acquired by the Contractor Other Than From the United States..........27-29 

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

 19 Coordination and Cooperation.........................................................................29-31 

 20 Charges for Delinquent Payments ...................................................................31-32 
Contract No. 14-06-200-1307A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity............................................................................................32-33 

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

 23 Compliance With Civil Rights Laws and Regulations ....................................33-34 

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

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

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

 27 Existing or Acquired Water or Water Rights........................................................ 36 

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

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

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

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

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

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

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

 35 Changes in Contractor’s Service Area............................................................. 38-39 

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

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

 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 

Keswick Draft 3/01-2004 

Keswick Draft 7/22-2003 

Keswick Draft 7/18-2003 

Keswick Draft 6/27-2003 

Shasta/Trinity Division Draft 6/16-2003 

CVP-Wide Draft 5/23-2003 

Contract No. 

14-06-200-1307A-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 COUNTY FOR THE BENEFIT OF

8 COUNTY SERVICE AREA NO. 25 -- KESWICK

9 PROVIDING FOR PROJECT WATER SERVICE

10 FROM THE TRINITY RIVER DIVISION

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

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

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

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

15 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 

16 (100 Stat. 3050), as amended, and Title XXXIV of the Act of October 30, 1992 (106 Stat. 4706), all 

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

18 OF AMERICA, hereinafter referred to as the United States, and SHASTA COUNTY for the benefit 

19 of COUNTY SERVICE AREA NUMBER 25 -- KESWICK, hereinafter referred to as the 

20 Contractor, a public agency of the State of California, duly organized, existing, and acting pursuant 

21 to the laws thereof; 

22 WITNESSETH, That:
Contract No. 14-06-200-1307A- LTR1 

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23 EXPLANATORY RECITALS

 [1st 24 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

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

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

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

29 and the San Joaquin River and their tributaries; and 

 [2nd 30 ] WHEREAS, the United States constructed the Spring Creek Power Conduit 

31 which will be used for the furnishing of water to the Contractor pursuant to the terms of this 

32 Contract; and 

 [3rd 33 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

 [4th 35 ] WHEREAS, the Contractor and the United States entered into Contract 

36 No. 14-06-200-1307A, which established terms for the delivery to the Contractor of Project 

37 Water from the Trinity River Division from September 16, 1964, through June 30, 2005, 

38 hereinafter referred to as the “Existing Contract”; and 

 [5th 39 ] WHEREAS, the United States and the Contractor have, pursuant to subsection 

40 3404(c)(3) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into a 

41 binding agreement identified as Binding Agreement No. 14-06-200-1307A-BA, which sets out 

42 the terms pursuant to which the Contractor agreed to renew the Existing Contract before its 

43 expiration date after completion of a programmatic environmental impact statement and other 

44 appropriate environmental documentation and negotiation of a renewal contract, and which also 

45 sets out the consequences of a subsequent decision not to renew; and 

 [6th 46 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of the 

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

48 programmatic environmental impact statement (PEIS) pursuant to the National Environmental 
Contract No. 14-06-200-1307A- LTR1 

3

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

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

 [7th 51 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

 [8th 53 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

 [9th 56 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

57 of its obligations under the Existing Contract; and 

 [10th 58 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

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

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

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

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

63 and 

 [11th 64 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

66 as an essential portion of its water supply; and 

 [12th 67 ] WHEREAS, the economies of regions within the Project, including the 

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

69 Project; and 

70 [12.1] WHEREAS, the Contractor has made and will continue to make substantial 

71 capital investments in diversion and treatment facilities, and requires a consistent, predictable 

72 quality of raw water in order to meet Safe Drinking Water Act requirements for its municipal 

73 customers, and to provide a consistent and predictable quality of water for its industrial 

74 customers; and 
Contract No. 14-06-200-1307A- LTR1 

4

 [13th 75 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

77 Project for all Project purposes; and 

78 [13.1] WHEREAS, the Contractor is located in the region of the Redding Groundwater 

79 Basin, and it is the desire of both the United States and the Contractor to facilitate the 

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

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

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

 [14th 83 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

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

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

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

88 of the United States relative to the Project; and 

 [15th 89 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

90 relationship in order to achieve their mutual goals; and 

 [16th 91 ] WHEREAS, the United States and the Contractor are willing to enter into this 

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

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

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

95 DEFINITIONS

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

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

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

99 both dates inclusive; 
Contract No. 14-06-200-1307A- LTR1 

5

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

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

102 annually by the Contracting Officer pursuant to this Contract; 

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

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

105 Contract Total; 

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

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

108 or regulation; 

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

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

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

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

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

114 without amendment of this Contract; 

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

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

117 (h) Omitted; 

118 (i) Omitted; 

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

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

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

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

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

124 and funded O&M deficits from October 12, 1982, on costs outstanding at that date, or from the 
Contract No. 14-06-200-1307A- LTR1 

6

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

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

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

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

129 of the Rules and Regulations for the RRA; 

130 (k) Omitted; 

131 (l) Omitted; 

132 (m) Omitted; 

133 (n) Omitted; 

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

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

136 crops or livestock; 

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

138 the delivery of M&I Water; 

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

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

141 maintenance of Project facilities; 

142 (r) Omitted; 

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

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

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

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

147 Reclamation law; 

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

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

150 accordance with the terms and conditions of water rights acquired pursuant to California law; 
Contract No. 14-06-200-1307A- LTR1 

7

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

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

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

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

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

156 preceding contract(s); 

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

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

159 through any agency of the Department of the Interior; 

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

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

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

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

164 Officer; 

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

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

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

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

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

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

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

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

173 TERM OF CONTRACT 

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

175 20___, and supercedes the Existing Contract. In the event the Contractor wishes to renew this 
Contract No. 14-06-200-1307A- LTR1 

8

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

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

178 (b) Omitted. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

195 9(c)(1), of the Reclamation Project Act of 1939, subject to applicable Federal law and under 

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

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

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

199 Federal Reclamation law, the remaining amount of construction costs assignable for ultimate 
Contract No. 14-06-200-1307A- LTR1 

9

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

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

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

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

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

205 possible so as to permit, upon request of the Contractor and satisfaction of the condition set out 

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

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

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

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

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

211 subdivision. 

212 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

215 this Contract, the Contracting Officer shall make available for delivery to the Contractor 500 

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

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

218 1,250 gallons per minute. The facilities of the Contractor shall include devices satisfactory to the 

219 Contracting Officer which will limit the rate of flow to the Contractor to 1,250 gallons per 

220 minute. The United States shall not be responsible for maintaining or limiting the heads or 

221 pressures at which the water is delivered. Water Delivered to the Contractor in accordance with 

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

223 this Contract. 
Contract No. 14-06-200-1307A- LTR1 

10

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

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

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

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

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

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

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

231 water made available to the Contractor was 460 acre-feet. Nothing in subdivision (b) of this 

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

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

234 applicable legal requirements. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

249 will be based upon environmental documentation, Project Water rights, and Project operational 
Contract No. 14-06-200-1307A- LTR1 

11

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

251 guidelines. 

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

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

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

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

256 Contract, which evidences in excess of 38 years of diversions for M&I purposes of the quantities 

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

258 developing an appropriate baseline for biological assessment(s) prepared pursuant to the ESA, 

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

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

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

262 Article. 

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

264 under Article 4 of this Contract, the Contracting Officer will make a determination whether 

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

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

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

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

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

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

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

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

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

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

275 in accordance with applicable statutes, regulations, guidelines, and policies. 
Contract No. 14-06-200-1307A- LTR1 

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

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

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

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

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

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

282 guidelines, and policies. 

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

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

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

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

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

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

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

290 contracts. 

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

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

293 accordance with the terms and conditions of such approval. 

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

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

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

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

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

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

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

301 Contract to use Project Water. 
Contract No. 14-06-200-1307A- LTR1 

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302 TIME FOR DELIVERY OF WATER

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

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

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

306 Historic Average and will be updated monthly, and more frequently if necessary, based on then307 current operational and hydrologic conditions and a new declaration with changes, if any, to the 

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

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

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

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

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

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

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

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

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

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

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

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

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

321 during any Year. 

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

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

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

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

326 time prior to the date(s) on which the requested change(s) is/are to be implemented. 
Contract No. 14-06-200-1307A- LTR1 

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327 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

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

330 installed by the United States approximately at Station 170+62.0 of the Spring Creek Power 

331 Conduit and any additional point or points of delivery either on Project facilities or another 

332 location or locations mutually agreed to in writing by the Contracting Officer and the Contractor. 

333 (b) Omitted. 

334 (c) Omitted. 

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

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

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

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

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

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

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

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

343 (e) (1) All pumps, pipelines, storage tanks, pressure regulators and 

344 controls, distribution lines, and other facilities, hereinafter referred to as the facilities, required to 

345 take, convey, and distribute water to the water users served by the Contractor shall be 

346 constructed or installed by the Contractor at its sole expense. Operation and maintenance of the 

347 facilities and the expense thereof also shall be the sole responsibility of the Contractor. The 

348 facilities may be installed, operated, and maintained on or across property of the United States in 

349 the area of the turnout(s) described in subdivision (a) of this Article subject to such restrictions 

350 and regulations as to location, method of installation, and operation and maintenance as may be 

351 promulgated by the Contracting Officer. 
Contract No. 14-06-200-1307A- LTR1 

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

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

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

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

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

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

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

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

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

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

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

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

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

365 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

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

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

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

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

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

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

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

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

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

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

377 from establishing and collecting any charges, assessments, or other revenues authorized by 
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378 California law. The Contractor shall include a summary of all its annual surface water deliveries 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

395 compliance with subdivision (a) of this Article. 

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

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

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

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

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

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

 (e) The Contracting Officer shall inform the Contractor on or before the 20th 402 

403 calendar day of each month of the quantity of M&I Water taken during the preceding month. 
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404 RATES AND METHOD OF PAYMENT FOR WATER

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

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

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

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

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

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

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

412 in writing by the Contractor and the Contracting Officer. The Rates, Charges, and Tiered Pricing 

413 Component applicable to the Contractor upon execution of this Contract are set forth in Exhibit 

414 “B,” as may be revised annually. 

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

416 and Tiered Pricing Component as follows: 

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

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

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

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

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

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

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

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

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

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

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

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

429 comment on such computations and cost allocations. By December 31 of each Calendar Year, 
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430 the Contracting Officer shall provide the Contractor with the final Rates and Tiered Pricing 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

454 day of February. 
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455 (d) The Contractor shall also make a payment in addition to the Rate(s) in 

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

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

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

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

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

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

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

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

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

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

466 be computed pursuant to Article 20 of this Contract. 

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

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

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

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

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

472 (a) of this Article. 

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

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

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

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

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

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

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

480 administration of the financial terms and conditions of its long-term contracts, in accordance 
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481 with applicable Federal standards, so as to reflect the application of Project costs and revenues. 

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

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

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

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

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

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

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

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

490 Component, and/or for making and allocating payments, other than those set forth in this Article 

491 may be in the mutual best interest of the parties, it is expressly agreed that the parties may enter 

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

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

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

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

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

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

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

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

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

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

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

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

504 (2) Omitted. 

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

506 Component pursuant to this Article, Water Delivered shall include Project Water that the 
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507 Contractor transfers to others but shall not include Project Water transferred to the Contractor, 

508 nor shall it include the additional water provided to the Contractor under the provisions of 

509 subdivision (f) of Article 3 of this Contract. 

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

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

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

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

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

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

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

517 impact of the proposed change. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

532 Contract, the Contractor does not waive any legal rights or remedies that it may have with 
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533 respect to such disputed issues. Notwithstanding the execution of this Contract, and payments 

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

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

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

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

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

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

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

541 shall be entitled to the benefit of any administrative or judicial ruling in favor of any Project 

542 M&I contractor on any of these issues, and credits for payments heretofore made, Provided, That 

543 the basis for such ruling is applicable to the Contractor. 

544 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

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

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

547 liability therefor. 

548 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

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

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

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

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

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

557 documentation should include, as appropriate, an analysis of ground-water impacts and 
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558 economic and social effects, including environmental justice, of the proposed water transfers on 

559 both the transferor and transferee. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

582 Interior; and (v) comply with all applicable Federal, State, and local or tribal laws and 
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583 requirements imposed for protection of the environment and Indian Trust Assets, as defined 

584 under Federal law. 

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

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

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

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

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

590 Rivers. 

591 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

607 advances, the Contractor will be billed for the additional costs pursuant to Article 25. 
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608 TEMPORARY REDUCTIONS--RETURN FLOWS

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

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

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

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

613 provided in this Contract. 

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

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

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

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

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

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

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

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

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

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

624 or reduction. 

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

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

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

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

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

630 claiming by, through, or under the Contractor. 

631 CONSTRAINTS ON THE AVAILABILITY OF WATER

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

633 reasonable means to guard against a Condition of Shortage in the quantity of water to be made 
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634 available to the Contractor pursuant to this Contract. In the event the Contracting Officer 

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

636 Contractor of said determination as soon as practicable. 

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

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

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

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

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

642 (c) Omitted. 

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

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

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

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

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

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

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

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

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

652 proceeding. 

653 UNAVOIDABLE GROUNDWATER PERCOLATION

654 13. Omitted. 

655 RULES AND REGULATIONS

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

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

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

659 Reclamation law. 
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660 WATER AND AIR POLLUTION CONTROL

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

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

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

664 authorities. 

665 QUALITY OF WATER

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

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

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

669 2(b) of the Act of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of 

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

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

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

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

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

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

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

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

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

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

680 Service Area. 

681 WATER ACQUIRED BY THE CONTRACTOR

682 OTHER THAN FROM THE UNITED STATES

683 17. (a) Omitted. 

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

685 other than from the United States, may be stored, conveyed, and/or diverted through Project 
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686 facilities, subject to the completion of appropriate environmental documentation, with the 

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

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

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

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

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

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

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

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

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

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

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

698 entitlements to any other Project Contractors; or (iv) interfere with the physical maintenance of 

699 the Project facilities. 

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

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

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

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

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

705 employees’, agents’ or assigns’ act(s) in (i) extracting or diverting non-Project water from any 

706 source, or (ii) diverting such non-Project water into Project facilities. 

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

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

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

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

711 Officer, the United States and the Contractor shall share priority to utilize the remaining capacity 
Contract No. 14-06-200-1307A- LTR1 

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

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

714 non-Project contractors. 

715 OPINIONS AND DETERMINATIONS

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

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

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

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

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

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

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

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

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

725 statute or regulation. 

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

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

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

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

730 with the Contractor to the extent reasonably practicable. 

731 COORDINATION AND COOPERATION

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

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

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

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

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

737 the quantity or quality of Project Water supply, the allocation of Project Water supply, and 
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738 Project financial matters including, but not limited to, budget issues. The communication, 

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

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

741 and determinations to be made by the respective party. 

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

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

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

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

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

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

748 a real-time basis. 

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

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

751 intent: 

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

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

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

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

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

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

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

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

760 State of California to seek improved water resource management. 

761 (3.1) The Secretary and the Contractor desire to work together to 

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

763 Secretary and the Contractor will work in partnership and with others in the region of the 
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764 Redding Groundwater Basin, including other Contractors in the Shasta and Trinity Divisions of 

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

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

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

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

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

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

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

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

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

774 management activities, and other issues as appropriate. 

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

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

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

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

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

780 CHARGES FOR DELINQUENT PAYMENTS

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

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

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

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

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

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

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

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

789 associated with a delinquent payment. 

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

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

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

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

794 determined as of the due date and remain fixed for the duration of the delinquent period. 
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795 (c) When a partial payment on a delinquent account is received, the amount 

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

797 accrued interest, and finally to the overdue payment. 

798 EQUAL OPPORTUNITY

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

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

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

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

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

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

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

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

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

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

809 nondiscrimination clause. 

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

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

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

813 national origin. 

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

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

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

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

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

819 employees and applicants for employment. 

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

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

822 of the Secretary of Labor. 

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

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

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

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

827 such rules, regulations, and orders. 

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

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

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

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

832 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 
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833 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

834 otherwise provided by law. 

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

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

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

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

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

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

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

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

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

844 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

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

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

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

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

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

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

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

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

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

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

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

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

857 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

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

859 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as amended), the 

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

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

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

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

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

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

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

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

868 including permitting officials of the United States to inspect premises, programs, and documents. 
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869 (c) The Contractor makes this agreement in consideration of and for the 

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

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

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

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

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

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

876 enforcement thereof. 

877 PRIVACY ACT COMPLIANCE

878 24. Omitted. 

879 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

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

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

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

883 of direct cost incurred by the United States for work requested by the Contractor associated with 

884 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

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

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

887 contract administration. 

888 WATER CONSERVATION

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

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

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

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

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

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

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

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

897 Contract shall be contingent upon the Contractor’s continued implementation of such water 
Contract No. 14-06-200-1307A- LTR1 

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

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

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

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

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

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

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

905 with the time schedules therein. 

906 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

907 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall 

908 implement the Best Management Practices identified by the time frames issued by the California 

909 Urban Water Conservation Council for such M&I Water unless any such practice is determined 

910 by the Contracting Officer to be inappropriate for the Contractor. 

911 (c) The Contractor shall submit to the Contracting Officer a report on the 

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

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

914 (d) At five-year intervals, the Contractor shall revise its water conservation 

915 plan to reflect the then-current conservation and efficiency criteria for evaluating water 

916 conservation plans established under Federal law and submit such revised water management 

917 plan to the Contracting Officer for review and evaluation. The Contracting Officer will then 

918 determine if the water conservation plan meets Reclamation’s then-current conservation and 

919 efficiency criteria for evaluating water conservation plans established under Federal law. 

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

921 shall be described in the Contractor’s water conservation plan. 
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922 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

923 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

924 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

925 hereafter acquired by the Contractor or any user of such water within the Contractor's Service 

926 Area. Any such water shall not be considered Project Water under this Contract. In addition, 

927 this Contract shall not be construed as limiting or curtailing any rights which the Contractor or 

928 any water user within the Contractor's Service Area acquires or has available under any other 

929 contract pursuant to Federal Reclamation law. 

930 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

931 28. Omitted. 

932 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

933 29. The expenditure or advance of any money or the performance of any obligation of 

934 the United States under this Contract shall be contingent upon appropriation or allotment of 

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

936 obligations under this Contract. No liability shall accrue to the United States in case funds are 

937 not appropriated or allotted. 

938 BOOKS, RECORDS, AND REPORTS

939 30. (a) The Contractor shall establish and maintain accounts and other books and 

940 records pertaining to administration of the terms and conditions of this Contract, including: the 

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

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

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

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

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

946 Contract shall have the right during office hours to examine and make copies of the other party's 

947 books and records relating to matters covered by this Contract 

948 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

949 books, records, or other information shall be requested from the Contractor by the Contracting 

950 Officer unless such books, records, or information are reasonably related to the administration or 

951 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

952 time within which to provide the requested books, records, or information. 

953 (c) Omitted. 
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954 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

955 31. (a) The provisions of this Contract shall apply to and bind the successors and 

956 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

957 therein shall be valid until approved in writing by the Contracting Officer. 

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

959 shall not interfere with the rights or obligations of the other party to this Contract absent the 

960 written concurrence of said other party. 

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

962 approval of any proposed assignment. 

963 SEVERABILITY

964 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

965 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

966 an association or other form of organization whose primary function is to represent parties to 

967 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

968 enforceability of a provision included in this Contract and said person, entity, association, or 

969 organization obtains a final court decision holding that such provision is legally invalid or 

970 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

971 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

972 final court decision identify by mutual agreement the provisions in this Contract which must be 

973 revised, and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

974 The time periods specified above may be extended by mutual agreement of the parties. Pending 

975 the completion of the actions designated above, to the extent it can do so without violating any 

976 applicable provisions of law, the United States shall continue to make the quantities of Project 

977 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

978 Contract which were not found to be legally invalid or unenforceable in the final court decision. 
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979 RESOLUTION OF DISPUTES

980 33. Should any dispute arise concerning any provisions of this Contract, or the 

981 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

982 resolve the dispute. Prior to the Contractor commencing any legal action, or the Contracting 

983 Officer referring any matter to Department of Justice, the party shall provide to the other party 

984 30 days’ written notice of the intent to take such action; Provided, That such notice shall not be 

985 required where a delay in commencing an action would prejudice the interests of the party that 

986 intends to file suit. During the 30-day notice period, the Contractor and the Contracting Officer 

987 shall meet and confer in an attempt to resolve the dispute. Except as specifically provided, 

988 nothing herein is intended to waive or abridge any right or remedy that the Contractor or the 

989 United States may have. 

990 OFFICIALS NOT TO BENEFIT

991 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

992 Contractor shall benefit from this Contract other than as a water user or landowner in the same 

993 manner as other water users or landowners. 

994 CHANGES IN CONTRACTOR’S SERVICE AREA

995 35. (a) While this Contract is in effect, no change may be made in the 

996 Contractor's Service Area, by inclusion or exclusion of lands, dissolution, consolidation, merger, 

997 or otherwise, except upon the Contracting Officer's written consent. 

998 (b) Within 30 days of receipt of a request for such a change, the Contracting 

999 Officer will notify the Contractor of any additional information required by the Contracting 

1000 Officer for processing said request, and both parties will meet to establish a mutually agreeable 

1001 schedule for timely completion of the process. Such process will analyze whether the proposed 

1002 change is likely to: (i) result in the use of Project Water contrary to the terms of this Contract; 

1003 (ii) impair the ability of the Contractor to pay for Project Water furnished under this Contract or 

1004 to pay for any Federally-constructed facilities for which the Contractor is responsible; and (iii) 

1005 have an impact on any Project Water rights applications, permits, or licenses. In addition, the 

1006 Contracting Officer shall comply with the NEPA and the ESA. The Contractor will be 
Contract No. 14-06-200-1307A- LTR1 

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1007 responsible for all costs incurred by the Contracting Officer in this process, and such costs will 

1008 be paid in accordance with Article 25 of this Contract. 

1009 FEDERAL LAWS

1010 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1011 the validity or application in connection with the performance of the terms and conditions of this 

1012 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1013 the terms and conditions of this Contract unless and until relief from application of such Federal 

1014 law or regulation to the implementing provision of the Contract is granted by a court of 

1015 competent jurisdiction. 

1016 NOTICES

1017 37. Any notice, demand, or request authorized or required by this Contract shall be 

1018 deemed to have been given, on behalf of the Contractor, when mailed, postage prepaid, or 

1019 delivered to the Area Manager, Bureau of Reclamation, Northern California Area Office, 16349 

1020 Shasta Dam Boulevard, Shasta Lake, California 96019, and on behalf of the United States, when 

1021 mailed, postage prepaid, or delivered to the Shasta County Board of Supervisors, c/o Keswick 

1022 County Service Area No. 25, 1855 Placer Street, Redding, California 96001. The designation of 

1023 the addressee or the address may be changed by notice given in the same manner as provided in 

1024 this Article for other notices. 

1025 CONFIRMATION OF CONTRACT

1026 38. The Contractor, after the execution of this Contract, shall furnish to the 

1027 Contracting Officer evidence that pursuant to the laws of the State of California, the Contractor 

1028 is a legally constituted entity and the Contract is lawful, valid, and binding on the Contractor. 

1029 This Contract shall not be binding on the United States until such evidence has been provided to 

1030 the Contracting Officer’s satisfaction. 
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1031 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of 

1032 the day and year first above written. 

1033 THE UNITED STATES OF AMERICA 

1034 By: ______________________________________ 

1035 Regional Director, Mid-Pacific Region 

1036 Bureau of Reclamation 

1037 SHASTA COUNTY WATER AGENCY 

1038 By: ______________________________________ 

1039 Chairman, Board of Directors 

1040 Attest: 

1041 By: _________________________________ 

1042 County Clerk and Ex-Officio Clerk 

1043 of the Board of Directors 

1044 (I:\LTRC\Draft LTRC\04-19-2004 Keswick Final LTRC Draft Contract.doc) 
Contract No. 14-06-200-1307A- LTR1 

EXHIBIT A

[Map or Description of Contractor’s Service Area]
Contract No. 14-06-200-1307A- LTR1 

EXHIBIT B 

2004 Water Rates and Charges 

Shasta County for the Benefit of

County Service Area No. 25 – Keswick – Trinity River Division

 M&I COST OF SERVICE RATES:

 Capital Rate: $ 9.27 

 O&M Rates: 

Water Marketing 5.01 

Storage 6.38 

 Deficit Rate: 5.51 

 CFO/PRF Adjustment Rate 1/ 1.83

 TOTAL $28.01 

 M&I FULL COST RATE: $34.77

 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).