1 

R.O. Draft 05/15-2002 

R.O. Draft 06/21-2002

Contract No. 

Standard Irrigation District Form 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

CONTRACT BETWEEN THE UNITED STATES AND 

___________________________________________________ 

DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES PROVIDING 

FOR PROJECT WATER SERVICE AND AGREEMENT ON DIVERSION OF 

WATER 

Table of Contents

Article No. Title Page No. 

Preamble 1 

Explanatory Recitals 2-3 

1 Definitions 3-6 7

2 Term of Contract 6-7 

3 Water to be Furnished to Contractor 7-9 8-10

4 Return Flow 9 10-11

5 Constraints on the Availability of Water 10-11-12

6 Integrated Water Management and Partnerships 12

6 7 Use of Water Furnished to Contractor 11 12-13

7 8 Rate and Method of Payment for Water 11-16 13-18

8 9 Agreement on Water Quantities 16-18-20 

9 10 Measurement of Water 18-20-22

10 11 Rules and Regulations 20-21 22

11 12 General Obligation – Benefits Conditioned 

Upon Payment 21 22-23

12 13 Charges For Delinquent Payments 21 23

13 14 Quality of Water 22 23

14 15 Water and Air Pollution Control 22 24

15 16 Equal Opportunity 22-23 24-25

16 17 Compliance With Civil Rights Laws 

And Regulations 23-24 25

17 18 Mingling of Contractor’s Project and 

Non-Project Water 24-25 26-27

18 19 Books, Records, and Reports 25-26 27

19 20 Change Of Place Of Use Or Organization 26 27-28
Table of Contents – continued

Article No. Title Page No.

20 21 Consolidation Of Contracting Entities 26 28

21 22 Notices 26-27 28

22 23 Assignment Limited – Successors and 

Assigns Obligated 27 28-29

23 24 Officials Not to Benefit 27 29

24 25 Contingent Upon Appropriation or 

Allotment of Funds 27 29

25 26 Confirmation of Contract 27 29

26 27 Unavoidable Groundwater Percolation 28 29

27 28 Privacy Act Compliance 28 29-30

28 29 Water Conservation 29-30-31

29 30 Opinions And Determinations 30-31 32

30 31 Contractor to Pay Certain Miscellaneous Costs 31 32-33

31 32 Waiver of Default 31 33

 Signatures 32 33-34

Exhibit A Schedule of Monthly Diversions of Water 

Exhibit B Map of Contractor’s Ownership 

Exhibit C Unit Duties 

Exhibit D Rates and Charges 35
1 

1 R.O. Draft 05/15-2002 

2 R.O. Draft 06/21-2002

3 Contract No. 

4 Standard Irrigation District Form 

5 

6 

7 UNITED STATES 

8 DEPARTMENT OF THE INTERIOR 

9 BUREAU OF RECLAMATION 

10 Central Valley Project, California 

11 

12 CONTRACT BETWEEN THE UNITED STATES AND 

13 ___________________________________________________ 

14 DIVERTER OF WATER FROM SACRAMENTO RIVER SOURCES PROVIDING 

15 FOR PROJECT WATER SERVICE AND AGREEMENT ON DIVERSION OF 

16 WATER 

17 

18 THIS CONTRACT, made this _____ day of ____________________, 2002, 

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

20 supplementary thereto, including, but not limited to, the Acts of August 26, 1937 (50 

21 Stat. 844), as amended and supplemented, August 4, 1939 (53 Stat. 1187), as amended 

22 and supplemented, July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 

23 1982 (96 Stat. 1262), October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV 

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

25 Federal Reclamation law, between THE UNITED STATES OF AMERICA, hereinafter 

26 referred to as the United States, and _______________________, hereinafter referred to 

27 as the Contractor, a public agency of the State of California, duly organized, existing, and 

28 acting pursuant to the laws thereof, with its principal place of business in California;

29 (may change depending on contracting entity) 

30 WITNESSETH, That: 
2

1 EXPLANATORY RECITALS

2 [1st] WHEREAS, the United States has constructed and is operating the Central 

3 Valley Project, California, for diversion, storage, carriage, distribution and beneficial use, 

4 for flood control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, 

5 protection and restoration, generation and distribution of electric energy, salinity control, 

6 navigation and other beneficial uses, of waters of the Sacramento River, the American 

7 River, the Trinity River, and the San Joaquin River and their tributaries; and 

[2nd 8 ] WHEREAS, the Contractor asserts that it has rights to divert, is diverting, 

9 and will continue to divert for reasonable beneficial use, water from the natural flow of 

10 the Sacramento River and tributaries thereto, that would have been flowing therein if the 

11 Central Valley Project were not in existence; and [Contractor Specific – “Other” Rights]

[3rd 12 ] WHEREAS, the construction and operation of the integrated and 

13 coordinated Central Valley Project has changed and will further change the regimen of 

14 the Sacramento, American, San Joaquin, and Trinity Rivers and the Sacramento-San 

15 Joaquin Delta from unregulated flow to regulated flow; and 

[4th 16 ] WHEREAS, the United States asserts that it has rights to divert, is diverting, 

17 and will continue to divert waters from said Rivers and said Delta in connection with the 

18 operation of said Central Valley Project, and 

[5th 19 ] WHEREAS, the Contractor and the United States had a dispute over the 

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

21 Sacramento River which threatened to result in litigation, and as a means to settle that 

22 dispute, entered into Contract No. ______________, as amended, hereinafter referred to 

23 as the Existing Contract, which established terms for the delivery to the Contractor of 
3

1 Central Valley Project Water, and the quantities of Base Supply the United States and the

2 Contractor agreed may be diverted by the Contractor from the Sacramento River pursuant 

3 to such contract from ____________ through March 31, 2004; and 

[6th 4 ] WHEREAS, although the Contractor and the United States has requested the 

5 long-term renewal of the Existing Contract, disagree with respect to the authority of the 

6 United States to change the quantities of Base Supply and/or Project water specified in 

7 this Contract from the quantities specified in the Existing Contract and that dispute is 

8 being litigated in a lawsuit entitled GCID v. United States of America, Civ. No. S-01-

9 1816 GEB/JFM (E.D. CA), both the Contractor and the United States are willing to agree 

10 to the dismissal of that lawsuit without waiving or otherwise prejudicing their respective 

11 right to assert whatever arguments and defenses either of them believe is appropriate if 

12 that issue is subsequently litigated and enter into this Contract pursuant to the terms of 

13 the Existing Contract, Federal Reclamation law, and the laws of the State of California, 

14 and the United States has determined that the Contractor has fulfilled all of its obligations 

15 under; and

[7th 16 ] WHEREAS, to assure the Contractor of the enjoyment and use of the 

17 regulated flow of the said Rivers and the Delta, and to provide for the economical 

18 operation of the Central Valley Project by, and the reimbursement to, the United States 

19 for expenditures made for said Project; 

20 NOW, THEREFORE, in consideration of the performance of the herein 

21 contained provisions, conditions, and covenants, it is agreed as follows:
4

1 DEFINITIONS

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

3 hereof, the term: 

4 (a) “Base Supply” shall mean the quantity of water established in Articles 3 

5 and 5 which the United States agrees may be diverted by the Contractor from the 

6 Sacramento River each month during the period April through October of each Year 

7 without payment to the United States for such quantities diverted; 

8 (b) “Charges” shall mean the payments for Project Water which the 

9 Contractor is required by Federal Reclamation law to pay to the United States in addition 

10 to the Rates specified in this Contract as determined annually by the Contracting Officer 

11 pursuant to this Contract. The type and amount of each Charge shall be specified in 

12 Exhibit D; 

13 (c) “Contract Total” shall mean the sum of the Base Supply and Project 

14 Water available for diversion by the Contractor for the period April 1 through October 

15 31; 

16 (d) “Critical Year” shall mean any Year in which either of the following 

17 eventualities exists: 

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

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

20 reviewed as frequently thereafter as conditions and information warrant, is equal to or 

21 less than three 3.2 million two hundred thousand (3,200,000) acre-feet; or 

22 (2) The total accumulated actual deficiencies below four 4 million 

23 (4,000,000) acre-feet in the immediately prior Water Year or series of successive prior 
5

1 Water Years each of which had inflows of less than four 4 million (4,000,000) acre-feet, 

2 together with the forecasted deficiency for the current Water Year, exceed eight hundred 

3 thousand (800,000) acre-feet. For the purpose of determining a Critical Year the 

4 computed inflow to Shasta Lake under present upstream development above Shasta Lake 

5 shall be used as the full natural inflow to Shasta Lake. In the event that major 

6 construction occurs above Shasta Lake after April 1, 2004 September 1, 1963, which 

7 materially alters the present regimen of the stream systems contributing to Shasta Lake, 

8 the computed inflow to Shasta Lake used to define a Critical Year will, be adjusted to 

9 eliminate the effect of such material alterations. After consultation with the State of 

10 California, the National Weather Service, and other recognized forecasting agencies, the 

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

12 available to the Contractor. The same forecasts used by the United States for the 

13 operation of the Project shall be used to make the forecasts hereunder; 

14 (e) “CVPIA” shall mean the Central Valley Project Improvement Act, Title 

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

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

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

18 1982 (96 Stat. 1263), as amended, hereinafter referred to as RRA;

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

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

21 Federal Reclamation law; 

22 (h) “Full Cost Rate” shall mean that water rate described in Sections 

23 205(a)(3) or 202(3) of the RRA, whichever is applicable; 
6

1 (i) “Ineligible Lands” shall mean all lands to which Project Water may not be 

2 delivered in accordance with Section 204 of the RRA; 

3 (j) “Landholder” shall mean a party that directly or indirectly owns or leases 

4 nonexempt land, as provided in 43 CFR 426.2; 

5 (k) “Project” shall mean the Central Valley Project owned by the United 

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

7 (l) “Project Water” shall mean all water diverted or scheduled to be diverted 

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

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

10 recognizes the right of the Contractor to make arrangements for acquisition of water from 

11 projects of others than the United States for delivery through the Sacramento River and 

12 tributaries subject to written agreement between Contractor and the United States as to 

13 identification of such water which water when so identified shall not be deemed Project 

14 Water under this cContract; 

15 (m) “Rates” shall mean the payments for Project Water determined annually 

16 by the Contracting Officer in accordance with the then current applicable water 

17 ratesetting policies for the Project, as described in subdivision (a) of Article 8 of this 

18 Contract; 

19 (n) “Secretary” or “Contracting Officer” shall mean the Secretary of the 

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

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

22 (o) “Water Year” shall mean the period commencing with October 1 of one 

23 year and extending through September 30 of the next; and 
7

1 (p) “Year” shall mean a calendar year. 

2 TERM OF CONTRACT

3 2. (a) This contract shall become effective April 1, 2004, and shall remain in 

4 effect until and including March 31, 2044: Provided, Tthat under terms and conditions 

5 mutually agreeable to the parties hereto, renewals may be made for successive periods 

6 not to exceed forty (40) years each. The terms and conditions of each renewal shall be 

7 agreed upon not later than one (1) year prior to the expiration of the then existing 

8 contract:. 

9 (b) Provided further, That uUpon written request by the Contractor of the 

10 Secretary made not later than one (1) year prior to the expiration of this contract, 

11 whenever, account being taken of the amount then credited to the costs of construction of 

12 water supply works, the remaining amount of construction costs of water supply work 

13 which is properly assignable for ultimate return by the Contractor as established by the 

14 Secretary of the Interior pursuant to (3) of Section 1 of Public Law 643 (70 Stat. 483), 

15 probably can be repaid to the United States within the term of a contract under subsection 

16 (d), Section 9 of the 1939 Reclamation Project Act (53 Stat. 1187), then this contract may 

17 be converted to a contract under said subsection (d) upon terms and conditions mutually 

18 agreeable to the United States and the Contractor. The Secretary shall make a 

19 determination 10 years after the date of execution of this Contract, and every five years 

20 thereafter, of whether a conversion to a contract under said subsection (d) can be 

21 accomplished pursuant to Public Law 643.

22 Notwithstanding any provision of this contract, the Contractor reserves and 

23 shall have all rights and benefits under Public Law 643. 
8

1 WATER TO BE FURNISHED TO CONTRACTOR

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

3 the Contractor is hereby entitled and authorized to divert from the Sacramento River at 

4 the locations shown in Exhibit A, for beneficial use within the area delineated on Exhibit 

5 B, (both Exhibits are attached hereto and made a part hereof), the Contract Total 

6 designated in Exhibit A, or any revision thereof, in accordance with the monthly 

7 operating schedule required by Article 3(b) of this cContract. The quantity of any water 

8 diverted from the Sacramento River for use on any lands delineated on Exhibit B, by the 

9 owner of such lands or otherwise shall constitute a part of the Contract Total as shown on 

10 Exhibit A and shall be subject to all the provisions of this cContract relating to such 

11 Contract Total as if such diversion were made by the Contractor. 

12 (b) The Contractor may have acquired rights to divert water from the 

13 Sacramento River during the period April to October, which were obtained after the date 

14 of execution of the Existing Contract. However, all diversions made from the 

15 Sacramento River during the period April to October are subject to the terms and 

16 conditions of this Contract, and the quantity of Base Supply and Project Water in the 

17 Existing Contract shall not be increased in this Contract.

18 (b c) The United States recognizes the need of the Contractor to vary from 

19 time to time its monthly diversions of water from the quantities shown in Exhibit A, or 

20 any revision thereof. Before April 1 of each Year the Contractor shall submit a written 

21 schedule to the Contracting Officer indicating the Contract Total to be diverted by the 

22 Contractor during each month. The United States shall furnish water to the Contractor in 

23 accordance with the monthly operating schedule or any revisions thereof: Provided, 
9

1 Tthat in no event shall the total quantity scheduled for diversion or diverted by the 

2 Contractor from the Sacramento River: 

3 (1) During the period April through October exceed the aggregate of the 

4 Contract Total for those months shown in Exhibit A or any revision thereof; 

5 (2) During the period July through September exceed the aggregate of the 

6 Contract Total for those months shown in Exhibit A or any revision thereof; and 

7 Provided, further, Tthat with the prior written approval of the Contracting Officer, water 

8 to be diverted in April, May, or June may be diverted in September or October, or vice 

9 versa. The Contractor shall be charged a fee, based upon the appropriate components of 

10 the water ratesetting policy for the Project, for the Base Supply scheduled for diversion in 

11 April, May, or June that is diverted in September or October, or vice versa. 

12 (c d) In the event conditions warrant, the Contracting Officer reserves the 

13 right to require the Contractor to submit, at least seventy-two (72) hours prior to the 

14 beginning of each weekly period, its estimate of daily diversion requirements for each 

15 such period from the Sacramento River: Provided, however, Tthat changes during any 

16 such period may be made upon the giving of seventy-two (72) hours’ notice thereof to the 

17 Contracting Officer. 

18 (d e) No sale, transfer, exchange, or other disposal of any water (such as 

19 forbearance of diversions) or the right to the use thereof for use on land other than that 

20 shown on Exhibit B shall be made by the Contractor without: 

21 (1) First obtaining the written consent of the Contracting Officer; and 
10

1 (2) Compliance with all applicable State and Federal laws, including but 

2 not limited to the National Environmental Policy Act and the Endangered Species Act, 

3 and applicable guidelines or regulations then in effect. 

4 (e f) Nothing herein contained shall prevent the Contractor from diverting 

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

6 shown on Exhibit B to the extent authorized under the laws of the State of California. 

7 (f g) The United States assumes no responsibility for and neither it nor its 

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

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

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

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

12 maintained by or on behalf of the United States; 

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

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

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

16 hereinabove referred to facilities; and 

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

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

19 drought, or unavoidable causes. 

20 RETURN FLOW

21 4. The United States reserves the right to the use of all waste, seepage, and return 

22 flow water derived from water diverted by the Contractor hereunder and which escapes 

23 or is discharged beyond the boundaries of the lands shown on Exhibit B. Nothing herein 
11

1 shall be construed as an abandonment or a relinquishment by the United States of the 

2 right to the use of any such water; Provided, Tthat this shall not be construed as claiming 

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

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

5 and which is being used pursuant to this cContract for surface irrigation or underground 

6 storage on the lands shown on Exhibit B by the Contractor. (Colusa Basin Drain 

7 language may be required) 

8 CONSTRAINTS ON THE AVAILABILITY OF WATER

9 5. (a) In any Water Year that (1) the forecasted full natural inflow to Shasta Lake 

10 for the current Water Year, as such forecast is made by the United States on or before 

11 February 15 and reviewed as frequently thereafter as conditions and information warrant, 

12 is equal to or less than three 3.8 million eight hundred thousand (3,800,000) acre-feet; or 

13 (2) If the total accumulated actual deficiencies in the full natural inflow to Shasta 

14 Lake in the immediately prior Water Year or series of successive prior Water Years, each 

15 of which had inflows of less than four 4 million (4,000,000) acre-feet, together with the 

16 forecasted deficiency for the current Water Year, are between 200,000 acre-feet and 

17 800,000 acre-feet, then the following reductions in the Contractor’s monthly Contract 

18 Total shall be imposed: 

19 Deficiency (acre-feet) Reduction

20 200,000 – 400,000 10 percent 

21 400,001 – 600,000 15 percent 

22 600,001 – 800,000 20 percent 

23 

24 (b) In a Critical Year, the Contractor’s Base Supply and Project Water agreed 

25 to be diverted during the period April through October of the Year in which the principal 
12

1 portion of the Critical Year occurs and, each monthly quantity of said period shall be 

2 reduced by twenty-five percent (25%). 

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

4 refunded or credited upon amounts to become due to the United States from the 

5 Contractor under the provisions hereof in the ensuing Year. To the extent of such 

6 deficiency such adjustment of overpayment shall constitute the sole remedy of the 

7 Contractor. 

8 INTEGRATED WATER MANAGEMENT AND PARTNERSHIPS

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

10 reasonable beneficial use of water to their mutual benefit. As a consequence, the United 

11 States will work in partnership with the Contractor and others within the Sacramento 

12 Valley to facilitate the better integration within the Sacramento Valley of all water 

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

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

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

16 and management options that may be identified in the future. 

17 USE OF WATER FURNISHED TO CONTRACTOR

18 67. (a) Project Water furnished to the Contractor pursuant to this cContract shall 

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

20 purposes without the written consent of the Contracting Officer. , including, For 

21 purposes of this Contract, “agricultural purposes” includes, but is not restricted to, the 

22 watering of livestock, incidental domestic use including related landscape irrigation, or 

23 underground water replenishment without written consent of the Contracting Officer. 
13

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

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

3 execution of this Contract undertaken pursuant to Section 7 of the Endangered Species 

4 Act of 1973, as amended, that are within the Contractor’s legal authority to implement. 

5 The Contractor shall comply with the limitations or requirements imposed by 

6 environmental documentation applicable to the Contractor and within its legal authority 

7 to implement regarding specific activities, including conversion of Irrigation Water to 

8 M&I Water. Nothing herein shall be construed to prevent the Contractor from 

9 challenging or seeking judicial relief in a court of competent jurisdiction with respect to 

10 any biological opinion or other environmental documentation referred to in this Article. 

11 RATE AND METHOD OF PAYMENT FOR WATER

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

13 this Article for all Project Water shown in Exhibit A of this cContract at Rates and 

14 Charges established in accordance with: (i) the Secretary’s then-current ratesetting 

15 policies for the Project; and (ii) applicable Reclamation law and associated rules and 

16 regulations, or policies: Provided, Tthat if the Contractor desires to use Project Water for 

17 other than agricultural use the Rates and Charges set forth above will be adjusted by the 

18 Contracting Officer to the applicable Rates and Charges for such use. The Rates and 

19 Charges applicable to the Contractor upon execution of this Contract are set forth in 

20 Exhibit “D”, as may be revised annually. The Secretary’s ratesetting policies for the 

21 Project shall be amended, modified, or superseded only through a public notice and 

22 comment procedure. 
14

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

2 Charges as follows: 

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

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

5 October 1, of the current Year, through September 30, of the following Year, and the 

6 basis for such estimate. The Contractor shall be allowed not less than two (2) months to 

7 review and comment on such estimates. On or before September 15 of each Year, the 

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

9 during the period October 1 of the current Year, through September 30, of the following 

10 Year, and such notification shall revise Exhibit “D.” 

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

12 available to the Contractor an estimate of the Rates for Project Water for the following 

13 Year and the computations and cost allocations upon which those Rates are based. The 

14 Contractor shall be allowed not less than two (2) months to review and comment on such 

15 computations and cost allocations. By December 31 of each Year, the Contracting 

16 Officer shall provide the Contractor with the final Rates to be in effect for the upcoming 

17 Year, and such notification shall revise Exhibit “D”. 

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

19 following manner: 

20 (1) With respect to Rates, prior to May 1 of each Year, the Contractor 

21 shall pay the United States one-half (1/2) the total amount payable pursuant to 

22 subdivision (a) of this Article and the remainder shall be paid prior to July 1 or such later 

23 date or dates as may be specified by the United States in a written notice to the 
15

1 Contractor: Provided, however, Tthat if at any time during the Year the amount of Project 

2 Water diverted by the Contractor shall equal the amount for which payment has been 

3 made, the Contractor shall pay for the remaining amount of such water as shown in 

4 Exhibit A in advance of any further diversion of Project Water. 

5 (2) With respect to Charges, the Contractor shall also make a payment to 

6 the United States, in addition to the Rate(s) in subdivision (c)(1) of this Article, at the 

7 Charges then in effect, before the end of the month following the month of delivery or 

8 transfer. The payments shall be consistent with the quantities of Project Water delivered 

9 or transferred. Adjustment for overpayment or underpayment of Charges shall be made 

10 through the adjustment of payments due to the United States for Charges for the next 

11 month. Any amount to be paid for past due payment of Charges shall be computed 

12 pursuant to Article 12 13 of this Contract. 

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

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

15 (d1) (Contractor Specific)All revenues received by the United States from 

16 the Contractor relating to the delivery of Project Water or the delivery of non-Project 

17 water through Project facilities shall be allocated and applied in accordance with Federal 

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

19 ratesetting policies for Irrigation Water. 

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

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

22 settlement contracts, in accordance with applicable Federal standards, so as to reflect the 

23 application of Project costs and revenues. The Contracting Officer shall, each Year upon 
16

1 request of the Contractor, provide to the Contractor a detailed accounting of all Project 

2 and Contractor expense allocations, the disposition of all Project and Contractor 

3 revenues, and a summary of all water delivery information. The Contracting Officer and 

4 the Contractor shall enter into good faith negotiations to resolve any discrepancies or 

5 disputes relating to accountings, reports, or information. 

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

7 Contract is their mutual goal. Recognizing that experience has demonstrated that 

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

9 making and allocating payments, other than those set forth in this Article may be in the 

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

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

12 while this Contract is in effect without amendment of this Contract. 

13 (g) For the term of this cContract, Rates under the respective ratesetting 

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

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

16 used in the then-current Project ratesetting policies, and interest, where appropriate, 

17 except in instances where a minimum Rate is applicable in accordance with the relevant 

18 Project ratesetting policy. Proposed changes of significance in practices which 

19 implement the ratesetting policies for the Project will not be implemented until the 

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

21 need, and impact of the proposed change. 

22 (h) Except as provided in subsections 3405(a)(1)(B) and 3405(f)

23 3407(d)(2)(a) of the CVPIA, the Rates for Project Water transferred, exchanged, or 
17

1 otherwise disposed of, by the Contractor shall be the Contractor’s Rates adjusted upward 

2 or downward to reflect the changed costs of delivery (if any) of the transferred, 

3 exchanged, or otherwise disposed of Project Water to the transferee’s point of delivery in 

4 accordance with the then-current ratesetting policies for the Project. If the Contractor is 

5 receiving lower Rates and Charges because of inability to pay and is transferring, 

6 exchanging, or otherwise disposing of Project Water to another entity whose Rates and 

7 Charges are not adjusted due to inability to pay, the Rates and Charges for transferred, 

8 exchanged, or otherwise disposed of Project Water shall be the Contractor’s Rates and 

9 Charges unadjusted for ability to pay. 

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

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

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

13 Article shall be made at the office of the Bureau of Reclamation, Mid-Pacific Region, 

14 File No. 11546, P.O Box 6000, San Francisco, California, 94160-1546, or at such other 

15 place as the United States may designate in a written notice to the said Contractor. 

16 Payments shall be made by cash transaction, wire, or any other mechanism as may be 

17 agreed to in writing by the Contractor and the Contracting Officer. In event there should 

18 be a default in the payment of the amount due, the delinquent payment provisions of 

19 Article 12 13 shall apply. The Contractor shall not be relieved of the whole or any part of 

20 its said obligation by, on account of, or notwithstanding, as the case may be: 

21 (1) Its failure, refusal, or neglect to divert the quantity of Project Water as 

22 hereinabove provided; 
18

1 (2) The default in payment to it by any water user of assessments, tolls, or 

2 other charges levied by or owing to said Contractor; 

3 (3) Any judicial determination that any assessment, toll, or other charge 

4 referred to in subsection 8(c)(2) of this Contract is irregular, void, or ineffectual; or 

5 (4) Any injunctive process enjoining or restraining the Contractor from 

6 making or collecting any such assessment, toll, or other charge referred to in subsection 

7 8(c)(2) of this Contract.

8 AGREEMENT ON WATER QUANTITIES

9 89. (a) During the term of this cContract and any renewals thereof: 

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

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

12 and Project Water which may be diverted by the Contractor from the Sacramento River 

13 for beneficial use on the land shown on Exhibit B which said diversion, use, and 

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

15 hereunder; 

16 (2) Neither party shall not claim any right against the United States other 

17 party in conflict with the provisions hereof of this Article 9(a).

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

19 Contractor against others than the United States or of the United States against any 

20 person other than the Contractor: Provided, however, Tthat in the event the Contractor, 

21 the United States, or any other person shall become a party to a general adjudication of 

22 rights to the use of water of the Sacramento River system, this cContract shall not 

23 jeopardize the rights or position of either party hereto or of any other person and the 
19

1 rights of all such persons in respect to the use of such water shall be determined in such 

2 proceedings the same as if this cContract had not been entered into, and if final judgment 

3 in any such general adjudication shall determine that the rights of the parties hereto are 

4 different from the rights as assumed herein, the United States shall submit it to the 

5 Contractor an amendment to give effect to such judgment and the cContract shall be 

6 deemed to have been amended accordingly unless within sixty (60) days after submission 

7 of such amendment to the Contractor, the Contractor elects to terminate the cContract or 

8 within the same period of time the parties agree upon mutually satisfactory amendments 

9 to give effect to such judgment: Provided, further, Tthat if, during the term of this 

10 Contract, the Contractor’s or the United States’ water rights are adjusted or affected, or 

11 the responsibility to meet flow, water quality and/or environmental requirements under 

12 those water rights is modified (e.g., changes to the Delta Water Quality Control Plan and 

13 associated water right actions), by or through any final administrative or judicial 

14 proceeding, the Contractor and the United States shall negotiate appropriate adjustments 

15 to this cContract. 

16 (c) In the event this cContract terminates, the rights of the parties to thereafter 

17 divert and use water shall exist as if this cContract had not been entered into; and the fact 

18 that as a compromise settlement of a controversy as to the respective rights of the parties 

19 to divert and use water and the yield of such rights during the term hereof, this cContract 

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

21 cContract term and segregates it into Base Supply and Project Water shall not jeopardize 

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

23 all times after the cContract terminates. It is further agreed that the Contractor at all 
20

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

2 rights, and neither the provisions of this cContract, action taken thereunder, nor payments 

3 made thereunder to the United States by the Contractor shall be construed as an 

4 admission that any part of the water used by the Contractor during the term of this 

5 cContract was in fact water to which it would not have been entitled under water rights 

6 owned by it nor shall receipt of payments thereunder by the United States from the 

7 Contractor be construed as an admission that any part of the water used by the Contractor 

8 during the term of this cContract was in fact water to which it would have been entitled 

9 under water rights owned by it. 

10 MEASUREMENT OF WATER

11 910. (a) All water diverted by the Contractor from Sacramento River will be 

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

13 points as may be mutually agreed upon in writing by the Contracting Officer and the 

14 Contractor. 

15 (b) All water diverted from the Sacramento River pursuant to this cContract 

16 will be measured or caused to be measured by the United States at each point of diversion 

17 with existing equipment or equipment to be installed, operated, and maintained by the 

18 United States, and/or others, under contract with and at the option of the United States. 

19 The equipment and methods used to make such measurement shall be in accordance with 

20 sound engineering practices. Upon request of the Contractor, the accuracy of such 

21 measurements will be investigated by the Contracting Officer and any errors appearing 

22 therein will be corrected. 
21

1 (c) The right of ingress to and egress from all points of diversion is hereby 

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

3 grants to the United States the right to install, operate, maintain and replace such 

4 equipment on diversion or carriage facilities at each point of diversion as the Contracting 

5 Officer deems necessary. 

6 (d) The Contractor shall not modify, alter, remove, or replace diversion 

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

8 measuring equipment installed by the United States or its representatives unless and until 

9 the Contracting Officer has been notified with due diligence and has been given an 

10 opportunity to modify such measuring equipment in such manner as may be necessary or 

11 appropriate. In the event of an emergency the Contractor shall notify the United States 

12 within a reasonable time thereafter as to the existence of the emergency and the nature 

13 and extent of such modification, alteration, removal, or replacement of diversion 

14 facilities. 

15 (e) The Contractor shall pay the United States for the costs to repair, relocate, 

16 or replace measurement equipment when the Contractor modifies, alters, removes, or 

17 replaces diversion or carriage facilities. 

18 (f) (Contractor Specific) By __________________[DATE] ________, the 

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

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

21 purposes on the lands delineated on Exhibit B is measured at each agricultural turnout. 

22 The water measuring devices or water measuring methods of comparable effectiveness 

23 must be acceptable to the Contracting Officer. The Contractor shall be responsible for 
22

1 installing, operating, and maintaining and repairing all such measuring devices and 

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

3 Contractor shall inform the Contracting Officer in writing by April 30 of each Year of the 

4 monthly volume of surface water delivered to the lands delineated on Exhibit B during 

5 the previous Year. This information will be used by Reclamation to satisfy the water 

6 measurement requirements of the Contractor’s water conservation plan, as set forth in 

7 Article 28 29 of this Contract. 

8 (g) All new surface water delivery systems installed within the lands 

9 delineated on Exhibit B after the effective date of this Contract shall also comply with the 

10 measurement provisions described in this Article. 

11 RULES AND REGULATIONS

12 1011. The parties agree that the delivery of Project Water for irrigation use or use 

13 of Federal facilities pursuant to this Contract is subject to Federal Reclamation law, 

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

15 seq.), as amended and supplemented, and the rules and regulations promulgated by the 

16 Secretary of the Interior under Federal Reclamation law. 

17 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

18 

19 1112. (a) The obligation of the Contractor to pay the United States as provided 

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

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

22 notwithstanding the default of individual water users in their obligations to the 

23 Contractor. 

24 

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

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

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

28 Contractor may be in arrears in the advance payment of water rates due the United States. 

29 The Contractor shall not furnish water made available pursuant to this Contract for lands 
23

1 or parties which are in arrears in the advance payment of water rates levied or established 

2 by the Contractor. 

3 

4 (c) With respect to subdivision (b) of this Article, the Contractor shall have 

5 no obligation to require advance payment for water rates which it levies. 

6 

7 CHARGES FOR DELINQUENT PAYMENTS

8 

9 1213. (a) The Contractor shall be subject to interest, administrative and penalty 

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

11 due date, the Contractor shall pay an interest charge for each day the payment is 

12 delinquent beyond the due date. When a payment becomes sixty (60) days delinquent, 

13 the Contractor shall pay an administrative charge to cover additional costs of billing and 

14 processing the delinquent payment. When a payment is delinquent ninety (90) days or 

15 more, the Contractor shall pay an additional penalty charge of six (6%) percent per year 

16 for each day the payment is delinquent beyond the due date. Further, the Contractor shall 

17 pay any fees incurred for debt collection services associated with a delinquent payment. 

18 

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

20 in the Federal Register by the Department of the Treasury for application to overdue 

21 payments, or the interest rate of one-half of one (0.5%) percent per month prescribed by 

22 Section 6 of the Reclamation Project Act of 1939 (Public Law 76-260). The interest 

23 charge rate shall be determined as of the due date and remain fixed for the duration of the 

24 delinquent period. 

25 

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

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

28 to the accrued interest, and finally to the overdue payment. 

29 

30 QUALITY OF WATER

31 1314. The operation and maintenance of Project facilities shall be performed in 

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

33 such facilities at the highest level reasonably attainable as determined by the Contracting 

34 Officer. The United States does not warrant the quality of water and is under no 

35 obligation to construct or furnish water treatment facilities to maintain or better the 

36 quality of water. 
24

1 WATER AND AIR POLLUTION CONTROL

2 1415. The Contractor, in carrying out this Contract, shall comply with all 

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

4 of California, and shall obtain all required permits or licenses from the appropriate 

5 Federal, State, or local authorities. 

6 EQUAL OPPORTUNITY

7 

8 1516. During the performance of this Contract, the Contractor agrees as follows: 

9 

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

11 for employment because of race, color, religion, sex, or national origin. The Contractor 

12 will take affirmative action to ensure that applicants are employed, and that employees 

13 are treated during employment, without regard to their race, color, religion, sex, or 

14 national origin. Such action shall include, but not be limited to, the following: 

15 Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; 

16 layoff or termination, rates of payment or other forms of compensation; and selection for 

17 training, including apprenticeship. The Contractor agrees to post in conspicuous places, 

18 available to employees and applicants for employment, notices to be provided by the 

19 Contracting Officer setting forth the provisions of this nondiscrimination clause. 

20 

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

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

23 consideration for employment without discrimination because of race, color, religion, 

24 sex, or national origin. 

25 

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

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

28 notice, to be provided by the Contracting Officer, advising the said labor union or 

29 workers' representative of the Contractor's commitments under Section 202 of Executive 

30 Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous 

31 places available to employees and applicants for employment. 

32 

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

34 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant 

35 orders of the Secretary of Labor. 

36 

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

38 amended Executive Order and by the rules, regulations, and orders of the Secretary of 

39 Labor, or pursuant thereto, and will permit access to its books, records, and accounts by 

40 the Contracting Officer and the Secretary of Labor for purposes of investigation to 

41 ascertain compliance with such rules, regulations, and orders. 
25

1 

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

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

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

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

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

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

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

9 

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

11 in every subcontract or purchase order unless exempted by the rules, regulations, or 

12 orders of the Secretary of Labor issued pursuant to Section 204 of said amended 

13 Executive Order, so that such provisions will be binding upon each subcontractor or 

14 vendor. The Contractor will take such action with respect to any subcontract or purchase 

15 order as may be directed by the Secretary of Labor as a means of enforcing such 

16 provisions, including sanctions for noncompliance: Provided, however, Tthat in the 

17 event the Contractor becomes involved in, or is threatened with, litigation with a 

18 subcontractor or vendor as a result of such direction, the Contractor may request the 

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

20 

21 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

22 (For Districts Only) 

23 

24 1617. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 

25 1964 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 (P.L. 93-112, as 

26 amended), the Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and any other 

27 applicable civil rights laws, as well as with their respective implementing regulations and 

28 guidelines imposed by the U.S. Department of the Interior and/or Bureau of Reclamation. 

29 

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

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

32 in, be denied the benefits of, or be otherwise subjected to discrimination under any 

33 program or activity receiving financial assistance from the Bureau of Reclamation. By 

34 executing this Contract, the Contractor agrees to immediately take any measures 

35 necessary to implement this obligation, including permitting officials of the United States 

36 to inspect premises, programs, and documents. 

37 

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

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

40 other Federal financial assistance extended after the date hereof to the Contractor by the 

41 Bureau of Reclamation, including installment payments after such date on account of 

42 arrangements for Federal financial assistance which were approved before such date. 

43 The Contractor recognizes and agrees that such Federal assistance will be extended in 

44 reliance on the representations and agreements made in this Article, and that the United 

45 States reserves the right to seek judicial enforcement thereof. 
26

1 

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

3 1718. (a) Project Water must of necessity be transported by the Contractor to its 

4 water users by means of the same works and channels used for the transport of its non5 Project Water including Base Supply. Notwithstanding such mingling of water, the 

6 provisions of Article 11 hereof shall be applicable only to Project Water, and such 

7 mingling of water shall not in any manner subject to the provisions of Article 11 hereof 

8 the Contractor’s non-Project wWater including Base Supply. 

9 (b) If required in accordance with subdivision (c) of this Article, the 

10 Contractor shall install and maintain such measuring equipment and distribution facilities 

11 and maintain such records as may be necessary to determine the amounts of water 

12 delivered to Excess Lands served by the Contractor. The Contractor shall not within any 

13 month deliver to Ineligible Lands water in excess of the non-Project Water, including 

14 Base Supply, for that month. The Contracting Officer or authorized representative shall 

15 have the right at all reasonable times to inspect such records and measuring equipment. 

16 (c) The Contractor will not be considered in violation of the requirement that 

17 Project Water be delivered only to Eligible Lands during any month of the irrigation 

18 season that the water requirement for beneficial use on Eligible Lands for that month is 

19 equal to or in excess of the Project Water for that month as shown on Exhibit A or any 

20 revision thereof pursuant to subdivision (b) of Article 3. The water requirement for 

21 beneficial use on Eligible Lands will be determined by multiplying: 

22 (1) the number of irrigable acres of the particular types of crops grown in 

23 that year on the acreage designated as eligible by 
27

1 (2) the Unit Duties as set forth in Exhibit C attached hereto and made a 

2 part hereof, or by such other Unit Duties mutually agreed upon by the Contractor and the 

3 Contracting Officer. In order to make the computation of the water requirement for 

4 Eligible Lands, on April 1 of each Year and concurrently with its order for water for the 

5 irrigation season, the Contractor shall designate the acreage of and type of crops to be 

6 grown on its Eligible Lands that irrigation season. During any month the water 

7 requirement as above determined for crops growing on Eligible Lands during such month 

8 is equal to or in excess of the Project Water for that month as provided herein the 

9 Contractor shall not be required to measure the water delivered to Excess Lands. Any 

10 month the said water requirement is less than the amount of Project Water as provided 

11 herein, the Contractor will be required to measure water delivered to excess land in 

12 accordance with subdivision (b) hereof. 

13 BOOKS, RECORDS, AND REPORTS

14 1819. The Contractor shall establish and maintain accounts and other books and 

15 records pertaining to administration of the terms and conditions of this Contract, 

16 including: the Contractor's financial transactions, water supply data, and Project land and 

17 right-of-way agreements; the water users' land-use (crop census), land ownership, land18 leasing and water use data; and other matters that the Contracting Officer may require. 

19 Reports thereon shall be furnished to the Contracting Officer in such form and on such 

20 date or dates as the Contracting Officer may require. Subject to applicable Federal laws 

21 and regulations, each party to this Contract shall have the right during office hours to 

22 examine and make copies of each other’s books and official records relating to matters 

23 covered by this Contract. 

24 

25 CHANGE OF PLACE OF USE OR ORGANIZATION

26 1920. (a) Unless the written consent of the United States is first obtained no 

27 change shall be made in the place of water use shown on Exhibit B. 

28 (b) While this cContract is in effect, no change shall be made in the area of 

29 the Contractor as shown on its Exhibit B, by inclusion or exclusion of lands, by 
28

1 dissolution, consolidation, or merger or otherwise, except upon the Contracting Officer’s 

2 written assent thereto. 

3 (c) In the event lands are excluded from the area of the Contractor, as 

4 provided herein, the quantity of Project Water to be diverted may be decreased pursuant 

5 to a supplemental agreement to be executed in respect thereto. 

6 CONSOLIDATION OF CONTRACTING ENTITIES

7 2021. Consolidation of Contractors may be approved by the Contracting Officer 

8 provided: (i) the Contracting Officer approves the form and organization of the resulting 

9 entity and the utilization by it of the Contract Total; and (ii) the obligations of the 

10 Contractor are assumed by such entity. 

11 No such consolidation shall be valid unless and until approved by the Contracting 

12 Officer. 

13 NOTICES

14 2122. Any notice, demand, or request authorized or required by this Contract 

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

16 prepaid, or delivered to the Area Manager, Northern California Area Office, Bureau of 

17 Reclamation, 16349 Shasta Dam Blvd., Shasta Lake, California, 96019, and on behalf of 

18 the United States, when mailed, postage prepaid, or delivered to the Board of Directors 

19 /City Council of the ________________________. The designation of the addressee or 

20 the address may be changed by notice given in the same manner as provided in this 

21 Article for other notices. 

22 

23 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

24 

25 2223. (a) The provisions of this Contract shall apply to and bind the 

26 successors and assigns of the parties hereto, but no assignment or transfer of this Contract 

27 or any right or interest therein shall be valid until approved in writing by the Contracting 

28 Officer. 

29 

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

31 shall not interfere with the rights or obligations of the other party to this Contract absent 

32 the written concurrence of said other party. 

33 
29

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

2 approval of any proposed assignment. 

3 

4 OFFICIALS NOT TO BENEFIT

5 

6 2324. (a) No Member of or Delegate to Congress, Resident Commissioner, or 

7 official of the Contractor shall benefit from this Contract other than as a water user or 

8 landowner in the same manner as other water users or landowners. 

9 

10 (b) No officer or member of the governing board of the Contractor shall 

11 receive any benefit that may arise by reason of this cContract other than as a landowner 

12 within the Contractor’s service area and in the same manner as other landowners within 

13 the said service area. 

14 

15 CONTINGENT UPON APPROPRIATION OR ALLOTMENT OF FUNDS

16 

17 2425. The expenditure or advance of any money or the performance of any 

18 obligation of the United States under this Contract shall be contingent upon appropriation 

19 or allotment of funds. Absence of appropriation or allotment of funds shall not relieve 

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

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

22 

23 CONFIRMATION OF CONTRACT

24 2526. The Contractor, after the execution of this Contract, shall promptly seek to 

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

26 appropriate, confirming the execution of this cContract. The Contractor shall furnish the 

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

28 pertinent supporting records of the court approving and confirming this Contract, and 

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

30 Contract shall not be binding on the United States until such final decree has been 

31 secured. 

32 UNAVOIDABLE GROUNDWATER PERCOLATION

33 2627. To the extent applicable, the Contractor shall not be deemed to have 

34 delivered Project Water to Excess Lands or Ineligible Lands if such lands are irrigated 

35 with groundwater that reaches the underground strata as an unavoidable result of the 

36 delivery of Project Water by the Contractor to Eligible Lands. 

37 PRIVACY ACT COMPLIANCE

38 

39 2728. (a) The Contractor shall comply with the Privacy Act of 1974 (5 U.S.C. 

40 552a) (the Act) and the Department of the Interior rules and regulations under the Act (43 
30

1 CFR 2.45 et seq.) in maintaining Landholder acreage certification and reporting records, 

2 required to be submitted to the Contractor for compliance with Sections 206 and 228 of 

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

4 

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

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

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

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

9 

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

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

12 Bureau of Reclamation Federal Register Privacy Act System of Records Notice (Acreage 

13 Limitation--Interior, Reclamation-31) which govern the maintenance, safeguarding, and 

14 disclosure of information contained in the Landholder's certification and reporting 

15 records. 

16 

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

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

19 decisions on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 

20 43 CFR 2.72. The Contractor is authorized to grant requests by individuals for access to 

21 their own records. 

22 

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

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

25 filed under 43 CFR 2.71; notify the requester accordingly of such referral; and provide 

26 the System Manager with information and records necessary to prepare an appropriate 

27 response to the requester. These requirements do not apply to individuals seeking access 

28 to their own certification and reporting forms filed with the Contractor pursuant to 43 

29 CFR 426.18, unless the requester elects to cite the Privacy Act as a basis for the request. 

30 

31 WATER CONSERVATION

32 2829. (a) Prior to the diversion of Project Water, the Contractor shall be 

33 implementing an effective water conservation and efficiency program based on the 

34 Contractor's water conservation plan that has been determined by the Contracting Officer 

35 to meet the conservation and efficiency criteria for evaluating water conservation plans 

36 established under Federal law. The water conservation and efficiency program shall 

37 contain definite water conservation objectives, appropriate economically feasible water 

38 conservation measures, and time schedules for meeting those objectives. Continued 
31

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

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

3 the Contractor's water conservation plan or any revised water conservation plan 

4 completed pursuant to subdivision (c) of Article 28 29 of this Contract have not yet been 

5 determined by the Contracting Officer to meet such criteria, due to circumstances which 

6 the Contracting Officer determines are beyond the control of the Contractor, Project 

7 Water deliveries shall be made under this Contract so long as the Contractor diligently 

8 works with the Contracting Officer to obtain such determination at the earliest practicable 

9 date, and thereafter the Contractor immediately begins implementing its water 

10 conservation and efficiency program in accordance with the time schedules therein. 

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

12 status of its implementation of the water conservation plan on the reporting dates 

13 specified in the then existing conservation and efficiency criteria established under 

14 Federal law. 

15 (c) At five (5)-year intervals, the Contractor shall revise its water 

16 conservation plan to reflect the then current conservation and efficiency criteria for 

17 evaluating water conservation plans established under Federal law and submit such 

18 revised water management plan to the Contracting Officer for review and evaluation. 

19 The Contracting Officer will then determine if the water conservation plan meets 

20 Reclamation’s then current conservation and efficiency criteria for evaluating water 

21 conservation plans established under Federal law. 

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

23 shall be described in the Contractor’s water conservation plan. 
32

1 OPINIONS AND DETERMINATIONS

2 

3 2930. (a) Where the terms of this Contract provide for actions to be based upon 

4 the opinion or determination of either party to this Contract, said terms shall not be 

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

6 unreasonable opinions or determinations. Both parties, notwithstanding any other 

7 provisions of this Contract, expressly reserve the right to seek relief from and appropriate 

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

9 Each opinion or determination by either party shall be provided in a timely manner. 

10 Nothing in subdivision (a) of Article 29 30 of this Contract is intended to or shall affect 

11 or alter the standard of judicial review applicable under federal law to any opinion or 

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

13 regulation. 

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

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

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

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

18 made in consultation with the Contractor to the extent reasonably practicable. 

19 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

20 3031. (a) In addition to all other payments to be made by the Contractor pursuant 

21 to this Contract, the Contractor shall pay to the United States, within sixty (60) days after 

22 receipt of a bill and detailed statement submitted by the Contracting Officer to the 

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

24 requested by the Contractor associated with this Contract plus indirect costs in 
33

1 accordance with applicable Bureau of Reclamation policies and procedures. All such 

2 amounts referred to in this Article shall not exceed the amount agreed to in writing in 

3 advance by the Contractor. This Article shall not apply to costs for routine contract 

4 administration. 

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

6 Contractor pursuant to Article 30 31 of this Contract shall be adjusted to reflect the actual 

7 costs when the work has been completed. If the advances exceed the actual costs 

8 incurred, the difference will be refunded to the Contractor. If the actual costs exceed the 

9 Contractor's advances, the Contractor will be billed for the additional costs pursuant to 

10 Article 30 of this Contract. 

11 WAIVER OF DEFAULT

12 3132. The waiver by either party to this cContract as to any default shall not be 

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

14 such default or to make, do, or perform, or not to make, do, or perform, as the case may 

15 be, any act or thing which would constitute a default. 

16 IN WITNESS WHEREOF, the parties hereto have executed this cContract as 

17 of the day and year first hereinabove written. 

18 

19 THE UNITED STATES OF AMERICA 

20 

21 

22 

23 By: __________________________ 

24 Regional Director, Mid-Pacific Region 

25 Bureau of Reclamation 

26 

27 

28 (SEAL) 

29 

30 

31 
34

1 (Contractor) 

2 

3 

4 By:______________________________ 

5 President 

6 

7 

8 ATTEST: 

9 

10 

11 ________________________________ 

12 Secretary 

13 

14 

15 (I:\Sac River Renewal\Contract Draft and Support Docs\Sac R Std Form Draft 6-21.doc) 
35

1 EXHIBIT D 

2 

3 2002 Water Rates and Charges for Contract No. ##-##-###-#####

4 Contractor Name - Sacramento River

5 

6 

7 

8 Per Acre-Foot 

9 

10 COST OF SERVICE RATES:

11 

12 Capital Rates $ 4.24 

13 

14 O&M Rates: 

15 

16 Water Marketing 5.66 

17 Storage 4.87 

18 

19 Deficit Rates: 

20 

21 Interest Bearing 3.34 

22 

23 TOTAL $18.11 

24 

25 FULL-COST RATES:

26 

27 Section 202(3) Rate is applicable to a 

28 Qualified Recipient or to a Limited 

29 Recipient receiving irrigation water 

30 on or before October 1, 1981. $22.12 

31 

32 Section 205(a)(3) Rate is applicable to a Limited 

33 Recipient that did not receive irrigation water on or 

34 before October 1, 1981. $24.47 

35 

36 

37 CHARGES UNDER P.L. 102-575 TO THE

38 RESTORATION FUND 1/ 

39 

40 Restoration Payments (3407(d)(2)(A)) $ 7.54 

41 

42 

43 1/ Restoration fund charges are payments in addition to the water rates and were 

44 determined pursuant to Title XXXIV of Public Law 102-575. Restoration fund charges 

45 are on a fiscal year basis (10/1 - 9/30).