Draft City of Coalinga Interim Contract No. 14-06-200-4173A-IR1 

 

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JUNE 21, 2007 DRAFT 

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

6 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

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8 _CITY OF COALINGA 

9 PROVIDING FOR PROJECT WATER SERVICE

10 SAN LUIS UNIT AND DELTA DIVISION

Table of Contents

Article No. Title Page No.

Preamble 1 

 Explanatory Recitals ............................................................................................ 2-5 

 1 Definitions ...........................................................................................................6-9 

 2 Term of Contract and Right to Use of Water ................................................... 9-11 

 3 Water to be Made Available and Delivered to the Contractor ........................11-15 

 4 Time for Delivery of Water ............................................................................. 15-16 

 5 Point of Diversion and Responsibility for Distribution of Water.................... 16-18 

 6 Measurement of Water Within the Contractor’s Service Area........................18-20 

 7 Rates and Method of Payment for Water......................................................... 20-24 

 9 Sales, Transfers, or Exchanges of Water .............................................................. 25 

 10 Application of Payments and Adjustments...................................................... 26-27 

 11 Temporary Reductions--Return Flows ............................................................ 27-28 

 12 Constraints on the Availability of Water ......................................................... 28-29 

 13 Unavoidable Groundwater Percolation................................................................. 29 

 14 Rules and Regulations .......................................................................................... 30 

 15 Water and Air Pollution Control........................................................................... 30 

 16 Quality of Water ................................................................................................... 30 

 17 Water Acquired by the Contractor Other Than From the United States .........31-32 

 18 Opinions and Determinations .......................................................................... 33-35 

 19 Coordination and Cooperation.............................................................................. 35 

 20 Charges for Delinquent Payments ........................................................................ 35 
Draft City of Coalinga Interim Contract No. 14-06-200-4173A-IR1 

 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity............................................................................................ 35-36 

 22 General Obligation--Benefits Conditioned Upon Payment .................................. 37 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 37 

 24 Privacy Act Compliance ....................................................................................... 38 

 25 Contractor to Pay Certain Miscellaneous Costs ................................................... 38 

 26 Water Conservation ......................................................................................... 38-39 

 27 Existing or Acquired Water or Water Rights........................................................ 40 

 28 Operation and Maintenance by San Luis & Delta-Mendota Water Authority 40-41 

 28.1 Operation and Maintenance by California Department of Water Resources ..41-43 

 28.2 Operation and Maintenance by Westlands Water District ..............................44-45 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 45 

 30 Books, Records, and Reports................................................................................ 46 

 31 Assignment Limited--Successors and Assigns Obligated ............................... 46-47 

 32 Severability ........................................................................................................... 47 

 33 Resolution of Disputes.......................................................................................... 48 

 34 Officials Not to Benefit......................................................................................... 48 

 35 Changes in Contractor’s Service Area.............................................................48-49 

 36 Federal Laws......................................................................................................... 49 

 37 Notices .................................................................................................................. 49

 Signature Page ...................................................................................................... 50 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
Draft City of Coalinga Interim Contract No. 14-200-4173A-IR1 

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UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

Central Valley Project, California 

15 INTERIM RENEWAL CONTRACT BETWEEN THE UNITED STATES

16 CITY OF COALINGA

17 PROVIDING FOR PROJECT WATER SERVICE FROM

18 SAN LUIS UNIT AND DELTA DIVISION

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THIS CONTRACT, made this 1st day of January, 2009, in pursuance generally of the Act of 

June 17, 1902 (32 Stat. 388), and acts amendatory or supplementary thereto, including, but not 

limited to, the Acts of August 26, 1937 (50 Stat. 844), as amended and supplemented, August 4, 1939 

(53 Stat. 1187), as amended and supplemented, July 2, 1956 (70 Stat. 483), June 3, 1960 (74 Stat. 

156), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), October 27, 1986 (100 Stat. 

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

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

hereinafter referred to as the United States, and CITY OF COALINGA, hereinafter referred to as the 

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

the laws thereof; 

 WITNESSETH, That: 

30 EXPLANATORY RECITALS

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

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

control, irrigation, municipal, domestic, industrial, fish and wildlife mitigation, protection and 
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restoration, generation and distribution of electric energy, salinity control, navigation and other 

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

San Joaquin River and their tributaries; and 

[2nd] WHEREAS, the United States constructed the Delta Division Facilities, including the 

San Luis Unit facilities (which include the San Luis Canal, Coalinga Canal, Pleasant Valley Pumping 

Plant, and Dos Amigos Pumping Plant), which will be used in part for the furnishing of water to the 

Contractor pursuant to the terms of this Contract; and 

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

to California law for operation of the Project; and 

[4th] WHEREAS, the United States and the Contractor entered into Contract No. No. 14-

06-200-4173A as amended, which provided the Contractor, Project Water from Project facilities from 

October 28, 1968 to December 31, 2008, hereinafter referred to as the Existing Contract; and 

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

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

binding agreement identified as Binding Agreement No. 14-06-200-4173A-BA, which sets out the 

terms pursuant to which the Contractor agreed to renew the Existing Contract before the expiration 

date after completion of the Programmatic Environmental Impact Statement (PEIS) and other 

appropriate environmental documentation and negotiation of a renewal contract; and which also sets 

out the consequences of a subsequent decision not to renew: and 

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

Existing Contract following completion of appropriate environmental documentation, including the 

PEIS, which was required by Section 3409 of the CVPIA, pursuant to the National Environmental 
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Policy Act (NEPA) analyzing the direct and indirect impacts and benefits of implementing the 

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

 [7th] WHEREAS, rights of renewal of Existing Contract and to convert said contract to a 

contract as provided by subsection (d), Section 9 of the Act of August 4, 1939 (53 Stat. 1187), are set 

forth in said contract; and 

 [8th] WHEREAS, the United States has completed the PEIS, but since all the environmental 

documentation necessary to execute a long-term renewal contract has not been completed, the 

Contractor has requested an interim renewal contract pursuant to Section 3404(c)(1) of the CVPIA; 

and 

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

its obligations under the Existing Contract; and 

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

Officer that the Contractor has utilized the Project Water supplies available to it for reasonable and 

beneficial use and expects to utilize fully for reasonable and beneficial use the quantity of Project 

Water to be made available to it pursuant to this Contract; and 

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

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

essential portion of its water supply; and 

[11.1] WHEREAS, at the time of execution of this Interim Contract, the United States is the 

sole source of water supply to the Contractor; and 

[12th] WHEREAS, the economies of regions within the Project, including the Contractor’s, 

depend upon the continued availability of water, including water service from the Project; and 
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[13th] WHEREAS, the Secretary intends through coordination, cooperation, and partnerships 

to pursue measures to improve water supply, water quality, and reliability of the Project for all 

Project purposes; and 

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

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

of the Project as required by law; to guard reasonably against Project Water shortages; to achieve a 

reasonable balance among competing demands for use of Project Water; and to comply with all 

applicable environmental statutes, all consistent with the legal obligations of the United States 

relative to the Project; and 

[14.1] WHEREAS, the parties intend by this Contract to develop a more cooperative 

relationship in order to achieve their mutual goals; and 

[14.2th] WHEREAS, in the CALFED Programmatic Record of Decision, dated August 28, 

2000, the United States and the State of California adopted a general target of continuously 

improving Delta water quality for all uses. The CALFED Agencies’ target for providing safe, 

reliable, and affordable drinking water in a cost-effective way, is to achieve either: (a) average 

concentrations at Clinton Forebay and other southern and central Delta drinking water intakes of 50 

ug/L bromide and 3.0 mg/L total organic carbon, or (b) an equivalent level of public health protection 

using a cost-effective combination of alternative source waters, source control and treatment 

technologies; and 

[15th] WHEREAS, the Contractor has utilized or may utilize transfers, contract assignments, 

rescheduling and conveyance of Project Water and non-Project water under this Contract as tools to 

minimize the impacts of Conditions of Shortage and to maximize the beneficial use of water; and 
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[15.1] WHEREAS, the parties desire and intend that this Contract not provide a disincentive 

to the Contractor in continuing to carry out the beneficial activities set out in the Explanatory Recital 

immediately above; and 

 [15.2] WHEREAS, in order to continue water service provided under Project water service 

contracts that expire prior to the completion of all appropriate environmental documentation, the 

United States intends to execute interim renewal contracts for a period not to exceed three (3) Years 

in length, and for successive interim periods of not more than two (2) Years in length, until such 

appropriate environmental documentation, is finally completed, at which time the Secretary shall, 

pursuant to Federal Reclamation law, upon request of the Contractor, enter into a long-term renewal 

contract for a period of forty (40) Years; and may thereafter renew such long-term renewal contracts 

for successive periods not to exceed forty (40) Years each; and 

 [15.3] WHEREAS, the Secretary intends to assure uninterrupted water service and continuity 

of contract through the process set fourth in Article 2 hereof; and 

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

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

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

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

118 DEFINITIONS

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

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

 (a) “Calendar Year” shall mean the period January 1 through December 31, both 
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dates inclusive; 

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

addition to the Rates as determined annually by the Contracting Officer pursuant to this Contract; 

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

any Year such that the Contracting Officer is unable to deliver sufficient water to meet the Contract; 

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

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

regulation; 

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

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

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

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

which may be modified from time to time in accordance with Article 35 of this Contract without 

amendment of this Contract; 

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

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

(g.1) “Delta Division Facilities” shall mean those existing and future Project 

facilities in and south of the Sacramento-San Joaquin Rivers Delta, including, but not limited to, the 

Tracy Pumping Plant, the O’Neill Forebay, the O’Neill Pumping/Generating Plant, and the San Luis 

Reservoir, used to divert, store, and convey water to those Project Contractors entitled to receive 

water conveyed through the Delta-Mendota Canal; 

 (h-l) Omitted;
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(m) “Irrigation Water” shall mean water made available from the Project that is 

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

thereto, and watering of livestock; 

(n) Omitted; 

(o) “Municipal and Industrial (M&I) Water” shall mean Project Water, other than 

Irrigation Water, made available to the Contractor. M&I Water shall include water used for human 

use and purposes such as the watering of landscaping or pasture for animals (e.g., horses) which are 

kept for personal enjoyment or water delivered to landholdings operated in units of less than five 

acres unless the Contractor establishes to the satisfaction of the Contracting Officer that the use of 

water delivered to any such landholding is a use described in subdivision (m) of this Article; 

(p) “Omitted; 

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

care, control, operation, repair, replacement (other than capital replacement), and maintenance of 

Project facilities; 

(r) “Operating Non-Federal Entity” shall mean the entity(ies), its (their) 

successors or assigns, which has (have) the obligation to operate and maintain all or a portion of the 

Delta Division Facilities pursuant to written agreement(s) with the United States. When this Contract 

was entered into, the Operating Non-Federal Entities were the San Luis & Delta-Mendota Water 

Authority and, with respect to San Luis Unit facilities and the California Department of Water 

Resources and Westlands Water District; 

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

and managed by the Department of the Interior, Bureau of Reclamation; 
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(t) “Project Contractors” shall mean all parties who have water service contracts 

for Project Water from the Project with the United States pursuant to Federal Reclamation law; 

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

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

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

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

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

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

(w) Omitted 

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

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

through any agency of the Department of the Interior; 

(y) Omitted 

(z) “Water Delivered” or “Delivered Water” shall mean Project Water diverted for 

use by the Contractor at the point(s) of delivery approved by the Contracting Officer; 

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

that can be delivered to the Contractor for the upcoming Year as declared by the Contracting Officer, 

pursuant to subdivision (a) of Article 4 of this Contract;

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

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

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

(cc) "Year" shall mean the period from and including March 1 of each Calendar 
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188 Year through the last day of February of the following Calendar Year. 

189 TERM OF CONTRACT - RIGHT TO USE OF WATER

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2. (a) This Contract shall be effective from January 1, 2009 and shall remain in 

effect through February 28, 2011, and thereafter will be renewed as described in this Article. Except 

as provided in subdivision (b) of this Article, until completion of all appropriate environmental 

review, and provided that the Contractor has complied with all the terms and conditions of the 

interim renewal contract in effect for the period immediately preceding the requested successive 

interim renewal contract, this Contract will be renewed, upon request of the Contractor, for 

successive interim periods each of which shall be no more than two (2) Years in length. Also, except 

as provided in subdivision (b) of this Article, in order to promote orderly and cost effective contract 

administration, the terms and conditions in subsequent interim renewal contracts shall be identical to 

the terms and conditions in the interim renewal contract immediately preceding the subsequent 

interim renewal contract: Provided, however, That each party preserves the right to propose 

modification(s) in any interim renewal contract other than those described in subdivision (b) of this 

Article, in which case the parties shall negotiate in good faith appropriate modification(s) to be 

included in any successive interim renewal contracts. Said modification(s) of each successive 

interim renewal contract shall be agreed upon within a reasonable time prior to the expiration of the 

then existing interim renewal contract. Nothing in this Article shall in any way alter the obligation 

that, upon final completion of any necessary environmental documentation, the Secretary shall, 

pursuant to Federal Reclamation law, upon request of the Contractor, enter into a long-term renewal 

contract for a period of forty (40) Years and may thereafter renew such long-term renewal contracts 

for successive periods not to exceed forty (40) Years each. 

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(b) The parties have engaged and if necessary will continue to engage in 

good faith negotiations intended to permit the execution of a forty (40) Year long-term renewal 

contract contemplated by Section 3404 (c) of the CVPIA, hereinafter referred to as a Along-term 

renewal contract@. The parties recognize the possibility that this schedule may not be met without 

further negotiations. Accordingly: In the event (i) the Contractor and Contracting Officer have 

reached agreement on the terms of the Contractor=s long-term renewal contract or (ii) the Contractor 

and Contracting Officer have not completed the negotiations on the Contractor=s long-term renewal 

contract, believe that further negotiations on that contract would be beneficial, and mutually commit 

to continue to negotiate to seek to reach agreement, but (iii) all environmental documentation 

required to allow execution of the Contractor=s long-term renewal contract by both parties has not 

been completed in time to allow execution of the Contractor=s long-term renewal contract by 

February 28, 2011, then (iv), the parties will expeditiously complete the environmental 

documentation required of each of them in order to execute the Contractor=s long-term renewal 

contract at the earliest practicable date. In addition, the Contractor=s then current interim renewal 

contract will be renewed without change upon the request of either party through the agreed-upon 

effective date of the Contractor=s long-term renewal contract or, in the absence of agreement on the 

terms of the Contractor=s long-term renewal contract, through the succeeding February 28. 

 (c) The omission of language in this Contract providing for conversion of this 

interim renewal contract or any subsequent renewals thereof to a repayment contract, pursuant to the 

Act of July 2, 1956 (70 Stat. 483), shall not prejudice the Contractor's right to assert a right to have 

such language included in subsequent renewals of this Contract or to exercise such conversion, all as 
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provided by law, or to negotiate the language regarding such conversion to be included in subsequent 

renewal contracts. 

233 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

Contracting Officer shall make available for delivery to the Contractor 10,000 acre-feet of Project 

Water for M&I purposes. Provided, however, during the two (2) month period of January and 

February of Year, 2009, the Contracting Officer shall make available for delivery to the Contractor 

that portion of the 2008 allocation of Project Water unused by the Contractor under the Existing 

Contract. Water Delivered to the Contractor in accordance with this subdivision shall be scheduled 

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

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

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

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

actually receiving the amount of Project Water set out in subdivision (a) of this Article in any given 

Year is uncertain. The Contracting Officer’s modeling referenced in the PEIS projected that the 

Contract Total set forth in this Contract will not be available to the Contractor in many years. 

Nothing in this subdivision (b) of this Article shall affect the rights and obligations of the parties 

under any provision of this Contract. 

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

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(c.1) Omitted 
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 (d) The Contractor shall make reasonable and beneficial use of all water furnished 

pursuant to this Contract. Groundwater recharge programs (direct, indirect, or in lieu), groundwater 

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

Water or other water furnished pursuant to this Contract conducted within the Contractor’s Service 

Area which are consistent with applicable State law and result in use consistent with Federal 

Reclamation law will be allowed; Provided, That any direct recharge program(s) is (are) described in 

the Contractor’s water conservation plan submitted pursuant to Article 26 of this Contract; 

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further, That such water conservation plan demonstrates sufficient lawful uses exist in the 

Contractor’s Service Area so that using a long-term average, the quantity of Delivered Water is 

demonstrated to be reasonable for such uses and in compliance with Federal Reclamation law. 

Groundwater recharge programs, groundwater banking programs, surface water storage programs, 

and other similar programs utilizing Project Water or other water furnished pursuant to this Contract 

conducted outside the Contractor’s Service Area may be permitted upon written approval of the 

Contracting Officer, which approval will be based upon environmental documentation, Project Water 

rights, and Project operational concerns. The Contracting Officer will address such concerns in 

regulations, policies, or guidelines. 

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

biological opinion(s) prepared as a result of a consultation regarding the execution of this Contract 

undertaken pursuant to Section 7 of the Endangered Species Act of 1973 (ESA), as amended, that are 

within the Contractor’s legal authority to implement. The Existing Contract, which evidences in 

excess of 40 years of diversions for M&I purposes of the quantities of Project Water provided in 

subdivision (a) of Article 3 of this Contract, will be considered in developing an appropriate baseline 
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for the biological assessment(s) prepared pursuant to the ESA, and any other needed environmental 

review. Nothing herein shall be construed to prevent the Contractor from challenging or seeking 

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

environmental documentation referred to in this Article. 

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

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

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

under this Article during the Year without adversely impacting other Project Contractors. At the 

request of the Contractor, the Contracting Officer will consult with the Contractor prior to making 

such a determination. If the Contracting Officer determines that Project Water, or other water 

available to the Project, can be made available to the Contractor, the Contracting Officer will 

announce the availability of such water and shall so notify the Contractor as soon as practical. The 

Contracting Officer will thereafter meet with the Contractor and other Project Contractors capable of 

taking such water to determine the most equitable and efficient allocation of such water. If the 

Contractor requests the delivery of any quantity of such water, the Contracting Officer shall make 

such water available to the Contractor in accordance with applicable statutes, regulations, guidelines, 

and policies. Subject to existing interim renewal and long-term contractual commitments, water 

rights and operational constraints, interim renewal and long-term Project Contractors shall have a 

first right to acquire such water, including Project Water made available pursuant to Section 215 of 

the RRA. 

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

subsequent Year some or all of the Water Made Available to the Contractor during the current Year, 
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referred to as “rescheduled water.” The Contractor may request permission to use during the current 

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

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

permit such uses in accordance with applicable statutes, regulations, guidelines, and policies. 

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

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

term thereof and any subsequent renewal interim contracts, as described in Article 2 of this Contract, 

during the terms thereof shall not be disturbed so long as the Contractor shall fulfill all of its 

obligations under this Contract and any renewals thereof. Nothing in the preceding sentence shall 

affect the Contracting Officer’s ability to impose shortages under Article 11 or subdivision (b) of 

Article 12 of this Contract or applicable provisions of any subsequent interim renewal contracts. 

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

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

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

conditions of such approval. 

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

rights necessary for the Project and to provide the water available under this Contract and any 

renewal thereof. The Contracting Officer shall not object to participation by the Contractor, in the 

capacity and to the extent permitted by law, in administrative proceedings related to the Project 

Water rights; Provided, that the Contracting Officer retains the right to object to the substance of the 

Contractor’s position in such a proceeding; 

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Provided, further, That in such proceedings the 

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

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319 use Project Water. 

320 TIME FOR DELIVERY OF WATER

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

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

declaration will be expressed in terms of Water Made Available and will be updated monthly, and 

more frequently if necessary, based on then-current operational and hydrologic conditions and a new 

declaration with changes, if any, to the Water Made Available will be made. The Contracting Officer 

shall provide forecasts of Project operations and the basis of the estimate, with relevant supporting 

information, upon the written request of the Contractor. 

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

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

Officer, showing the monthly quantities of Project Water to be delivered by the United States to the 

Contractor pursuant to this Contract for the Year commencing on such March 1. The Contracting 

Officer shall use all reasonable means to deliver Project Water according to the approved schedule 

for the Year commencing on such March 1. 

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

Project Water the Contractor intends to put to reasonable and beneficial use within the Contractor's 

Service Area or to sell, transfer, or exchange pursuant to Article 9 of this Contract during any Year. 

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

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

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

revision(s) thereto satisfactory to the Contracting Officer, submitted within a reasonable time prior to 
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341 the date(s) on which the requested change(s) is/are to be implemented. 

342 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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362 

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

Contract shall be delivered to the Contractor at Project facilities and any additional point or points of 

delivery either on Project facilities or another location or locations mutually agreed to in writing by 

the Contracting Officer and the Contractor. 

(b) The Contracting Officer, either directly or indirectly through its written 

agreements(s) with the Operating Non-Federal Entity(ies), shall make all reasonable efforts to 

maintain sufficient flows and levels of water in the Project facilities to deliver Project Water to the 

Contractor at the point or points of delivery established pursuant to subdivision (a) of this Article. 

 (c) The Contractor shall not deliver Project Water to land outside the Contractor's 

Service Area unless approved in advance by the Contracting Officer. 

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

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

Contracting Officer either directly or indirectly through its written agreements(s) with the Operating 

Non-Federal Entity(ies), unless undertaken by the Contractor with the consent of the Contracting 

Officer at the point or points of delivery established pursuant to subdivision (a) of this Article. Upon 

the request of either party to this Contract, the Contracting Officer shall investigate, or cause to be 

investigated by the appropriate Operating Non-Federal Entity (ies) the accuracy of such 

measurements and shall take any necessary steps to adjust any errors appearing therein. For any 

period of time when accurate measurements have not been made, the Contracting Officer shall 

consult with the Contractor and the appropriate Operating Non-Federal Entity(ies), if any, prior to 
17

363 

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365 

366 

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372 

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379 

making a final determination of the quantity delivered for that period of time. 

(e) Absent a separate contrary written agreement with the Contractor, neither the 

Contracting Officer nor any Operating Non-Federal Entity(ies) shall be responsible for the control, 

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

Contract beyond the point or points of delivery established pursuant to subdivision (a) of this Article. 

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

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

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

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

point or points of delivery except for any damage or claim arising out of: (i) acts or omissions of the 

Contracting Officer or any of its officers, employees, agents, and assigns, including any responsible 

Operating Non-Federal Entity(ies), with the intent of creating the situation resulting in any damage or 

claim; (ii) willful misconduct of the Contracting Officer or any of its officers, employees, agents, and 

assigns, including any responsible Operating Non-Federal Entity; (iii) negligence of the Contracting 

Officer or any of its officers, employees, agents, and assigns including the Operating Non-Federal 

Entity(ies); or (iv) damage or claims resulting from a malfunction of facilities owned and/or operated 

by the United States or responsible Operating Non-Federal Entity(ies). 

380 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

381 

382 

383 

384 

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

Contracting Officer. The Contractor shall ensure that, unless the Contractor establishes an alternative 

measurement program satisfactory to the Contracting Officer, all surface water delivered for M&I 

purposes is measured at each M&I service connection. The water measuring devices or water 
18

385 

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401 

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405 

406 

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

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

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

States. The Contractor shall use the information obtained from such water measuring devices or 

water measuring methods to ensure its proper management of the water; to bill water users for water 

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

customer class as defined in the Contractor’s water conservation plan provided for in Article 26 of 

this Contract. Nothing herein contained, however, shall preclude the Contractor from establishing 

and collecting any charges, assessments, or other revenues authorized by California law. The 

Contractor shall include a summary of all its annual surface water deliveries in the annual report 

described in subdivision (c) of Article 26. 

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

of this Contract, the Contractor shall provide to the Contracting Officer a written report describing 

the measurement devices or water measuring methods being used or to be used to implement 

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

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

water measuring methods are being used, and, if applicable, identifying the locations at which such 

devices and/or methods are not yet being used including a time schedule for implementation at such 

locations. The Contracting Officer shall advise the Contractor in writing within 60 days as to the 

adequacy and necessary modifications, if any, of the measuring devices or water measuring methods 

identified in the Contractor’s report and if the Contracting Officer does not respond in such time, they 

shall be deemed adequate. If the Contracting Officer notifies the Contractor that the measuring 
19

407 

408 

409 

410 

411 

412 

413 

414 

415 

416 

417 

418 

419 

devices or methods are inadequate, the parties shall within 60 days following the Contracting 

Officer’s response, negotiate in good faith the earliest practicable date by which the Contractor shall 

modify said measuring devices and/or measuring methods as required by the Contracting Officer to 

ensure compliance with subdivision (a) of this Article. 

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

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

provisions described in subdivision (a) of this Article. 

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

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

Contractor’s Service Area during the previous Year. 

(e) The Contractor shall inform the Contracting Officer and the Operating 

Non-Federal Entity on or before the 20th calendar day of each month of the quantity of M&I Water 

taken during the preceding month. 

420 RATES AND METHOD OF PAYMENT FOR WATER

421 

422 

423 

424 

425 

426 

427 

428 

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

Delivered Water at Rates and Charges established in accordance with: (i) the Secretary’s thenexisting ratesetting policy for M&I Water. Such ratesetting policies shall be amended, modified, or 

superseded only through a public notice and comment procedure; (ii) applicable Federal Reclamation 

law and associated rules and regulations, or policies; and (iii) other applicable provisions of this 

Contract. Payments shall be made by cash transaction, electronic funds transfer, or any other 

mechanism as may be agreed to in writing by the Contractor and the Contracting Officer. The Rates 

and Charges applicable to the Contractor upon execution of this Contract are set forth in Exhibit “B,” 
20

429 

430 

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434 

435 

436 

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438 

439 

440 

441 

442 

443 

444 

445 

446 

447 

448 

449 

450 

as may be revised annually. 

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

as follows: 

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

Contractor an estimate of the Charges for Project Water that will be applied to the period October 1, 

of the current Calendar Year, through September 30, of the following Calendar Year, and the basis 

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

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

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

current Calendar Year, through September 30, of the following Calendar Year, and such notification 

shall revise Exhibit “B.” 

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

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

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

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

 By December 31 of each Calendar Year, the Contracting Officer shall provide the Contractor with 

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

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

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

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

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

delivered pursuant to this Contract during the first two calendar months of the Year. Before the end 
21

451 

452 

453 

454 

of the first month and before the end of each calendar month thereafter, the Contractor shall make an 

advance payment to the United States, at the Rate(s) set under subdivision (a) of this Article, for the 

Water Scheduled to be delivered pursuant to this Contract during the second month immediately 

following. Adjustments between advance payments for Water Scheduled and payments at Rates due 

for Water Delivered shall be made before the end of the following month; Provided, That any revised 

schedule submitted by the Contractor pursuant to Article 4 of this Contract which increases the 

amount of Water Delivered pursuant to this Contract during any month shall be accompanied with 

appropriate advance payment, at the Rates then in effect, to assure that Project Water is not delivered 

to the Contractor in advance of such payment. In any month in which the quantity of Water 

Delivered to the Contractor pursuant to this Contract equals the quantity of Water Scheduled and paid 

for by the Contractor, no additional Project Water shall be delivered to the Contractor unless and 

until an advance payment at the Rates then in effect for such additional Project Water is made. Final 

adjustment between the advance payments for the Water Scheduled and payments for the quantities 

of Water Delivered during each Year pursuant to this Contract shall be made as soon as practicable 

but no later than April 30th of the following Year, or 60 days after the delivery of Project Water 

“rescheduled” under subdivision (g) of Article 3 of this Contract if such water is not delivered by the 

last day of February. 

455 

456 

457 

458 

459 

460 

461 

462 

463 

464 

465 

466 

467 

468 

469 

470 

471 

472 

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

subdivision (c) of this Article to the United States for Water Delivered, at the Charges then in effect, 

before the end of the month of delivery. The payments shall be consistent with the quantities of M&I 

Water Delivered as shown in the water delivery report for the subject month prepared by the 

Operating Non-Federal Entity(ies) or, if there is no Operating Non-Federal Entity, by the Contracting 
22

473 

474 

475 

476 

477 

478 

479 

Officer. The water delivery report shall be deemed a bill for the payment of Charges for Water 

Delivered. Adjustment for overpayment or underpayment of Charges shall be made through the 

adjustment of payments due to the United States for Charges for the next month. Any amount to be 

paid for past due payment of Charges shall be computed pursuant to Article 20 of this Contract. 

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

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

statutes, associated regulations, any applicable provisions of guidelines or ratesetting policies; 

Provided, That the Rate for Water Delivered under subdivision (d) or (f) of Article 3 of this Contract 

shall be no more than the otherwise applicable Rate for M&I Water under subdivision (a) of this 

Article. 

480 

481 

482 

483 

484 

485 

486 

487 

488 

489 

490 

491 

492 

493 

494 

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

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

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

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

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

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

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

of the financial terms and conditions of its long-term contracts, in accordance with applicable Federal 

standards, so as to reflect the application of Project costs and revenues. The Contracting Officer 

shall, each Year upon request of the Contractor, provide to the Contractor a detailed accounting of all 

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

and a summary of all water delivery information. The Contracting Officer and the Contractor shall 
23

495 

496 

497 

498 

499 

500 

501 

502 

503 

504 

505 

506 

507 

508 

509 

510 

511 

512 

513 

514 

515 

516 

enter into good faith negotiations to resolve any discrepancies or disputes relating to accountings, 

reports, or information. 

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

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

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

payments, other than those set forth in this Article may be in the mutual best interest of the parties, it 

is expressly agreed that the parties may enter into agreements to modify the mechanisms, policies, 

and procedures for any of those purposes while this Contract is in effect without amending this 

Contract. 

(j) Omitted 

 (1-3) Omitted 

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

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

costs of the Project, as those terms are used in the then-current Project ratesetting policies, and 

interest, where appropriate, except in instances where a minimum Rate is applicable in accordance 

with the relevant Project ratesetting policy. Changes of significance in practices which implement 

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

has provided the Contractor an opportunity to discuss the nature, need, and impact of the proposed 

change. 

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

the Rates for Project Water transferred by the Contractor shall be the Contractor’s Rates adjusted 

upward or downward to reflect the changed costs of delivery (if any) of the transferred Project Water 
24

517 

518 

519 

to the transferee’s point of delivery in accordance with the then applicable CVP Ratesetting Policy. 

(m-n) Omitted. 

 

520 NON-INTEREST BEARING OPERATION AND MAINTENANCE DEFICITS

521 8. Omitted 

522 SALES, TRANSFERS, OR EXCHANGES OF WATER

523 

524 

525 

526 

527 

528 

529 

530 

531 

532 

533 

534 

535 

536 

537 

538 

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

transferred, or exchanged to others for reasonable and beneficial uses within the State of California if 

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

guidelines or regulations then in effect. No sale, transfer, or exchange of Project Water under this 

Contract may take place without the prior written approval of the Contracting Officer, except as 

provided for in subdivision (b) of this Article, and no such sales, transfers, or exchanges shall be 

approved absent all appropriate environmental documentation, including but not limited to 

documents prepared pursuant to the NEPA and the ESA. Such environmental documentation should 

include, as appropriate, an analysis of groundwater impacts and economic and social effects, 

including environmental justice, of the proposed water transfers on both the transferor and transferee. 

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

the type historically carried out among Project Contractors located within the same geographical area 

and to allow the Contractor to participate in an accelerated water transfer program during the term of 

this Contract, the Contracting Officer shall prepare, as appropriate, all necessary environmental 

documentation including, but not limited to documents prepared pursuant to the NEPA and the ESA 

analyzing annual transfers within such geographical areas and the Contracting Officer shall 
25

539 

540 

541 

542 

543 

544 

545 

546 

547 

548 

549 

550 

551 

552 

553 

554 

555 

556 

determine whether such transfers comply with applicable law. Following the completion of the 

environmental documentation, such transfers addressed in such documentation shall be conducted 

with advance notice to the Contracting Officer, but shall not require prior written approval by the 

Contracting Officer. Such environmental documentation and the Contracting Officer’s compliance 

determination shall be reviewed every five years and updated, as necessary, prior to the expiration of 

the then existing five-year period. All subsequent environmental documentation shall include an 

alternative to evaluate not less than the quantity of Project Water historically transferred within the 

same geographical area. 

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

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

M&I use, groundwater recharge, groundwater banking, or similar groundwater activities, surface 

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

established cropland, wildlife refuges, groundwater basins, or M&I use; (ii) occur within a single 

Year; (iii) occur between a willing seller and a willing buyer; (iv) convey water through existing 

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

Contractors and/or the Contractor and the United States, Department of the Interior; and (v) comply 

with all applicable Federal, State, and local or tribal laws and requirements imposed for protection of 

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

557 APPLICATION OF PAYMENTS AND ADJUSTMENTS

558 

559 

560 

10. (a) The amount of any overpayment by the Contractor of the Contractor’s O&M, 

capital, and deficit (if any) obligations for the Year shall be applied first to any current liabilities of 

the Contractor arising out of this Contract then due and payable. Overpayments of more than $1,000 
26

561 

562 

563 

564 

565 

566 

567 

568 

569 

570 

571 

572 

573 

shall be refunded at the Contractor’s request. In lieu of a refund, any amount of such overpayment at 

the option of the Contractor, may be credited against amounts to become due to the United States by 

the Contractor. With respect to overpayment, such refund or adjustment shall constitute the sole 

remedy of the Contractor or anyone having or claiming to have the right to the use of any of the 

Project Water supply provided for herein. All credits and refunds of overpayments shall be made 

within 30 days of the Contracting Officer obtaining direction as to how to credit or refund such 

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

in which the overpayment was made. 

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

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

the work has been completed. If the advances exceed the actual costs incurred, the difference will be 

refunded to the Contractor. If the actual costs exceed the Contractor's advances, the Contractor will 

be billed for the additional costs pursuant to Article 25. 

574 TEMPORARY REDUCTIONS--RETURN FLOWS

575 

576 

577 

578 

579 

580 

581 

582 

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

the requirements of Federal law and (ii) the obligations of the United States under existing contracts, 

or renewals thereof, providing for water deliveries from the Project, the Contracting Officer shall 

make all reasonable efforts to optimize Project Water deliveries to the Contractor as provided in this 

Contract. 

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

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

purposes of investigation, inspection, maintenance, repair, or replacement of any of the Project 
27

583 

584 

585 

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

as feasible the Contracting Officer or Operating Non-Federal Entity(ies) will give the Contractor due 

notice in advance of such temporary discontinuance or reduction, except in case of emergency, in 

which case no notice need be given; Provided, That the United States shall use its best efforts to 

avoid any discontinuance or reduction in such service. Upon resumption of service after such 

reduction or discontinuance, and if requested by the Contractor, the United States will, if possible, 

deliver the quantity of Project Water which would have been delivered hereunder in the absence of 

such discontinuance or reduction. 

586 

587 

588 

589 

590 

591 

592 

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

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

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

States any right as seepage or return flow being put to reasonable and beneficial use pursuant to this 

Contract within the Contractor=s Service Area by the Contractor or those claiming by, through, or 

under the Contractor. 

593 

594 

595 

596 

597 CONSTRAINTS ON THE AVAILABILITY OF WATER

598 

599 

600 

601 

602 

603 

604 

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

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

Contractor pursuant to this Contract. In the event the Contracting Officer determines that a 

Condition of Shortage appears probable, the Contracting Officer will notify the Contractor of said 

determination as soon as practicable. 

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

the Project, drought, other physical causes beyond the control of the Contracting Officer or actions 
28

605 

606 

607 

608 

609 

610 

611 

612 

613 

614 

615 

616 

taken by the Contracting Officer to meet legal obligations then, except as provided in subdivision (a) 

of Article 18 of this Contract, no liability shall accrue against the United States or any of its officers, 

agents, or employees for any damage, direct or indirect, arising therefrom. 

(c) Omitted. 

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

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

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

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

or remedies it may have to file or participate in any administrative or judicial proceeding contesting; 

(i) the sufficiency of the Central Valley Project M&I Water Shortage Policy; (ii) the substance of 

such a policy; (iii) the applicability of such a policy; or (iv) the manner in which such policy is 

implemented in order to allocate Project Water between municipal and industrial and irrigation 

purposes; Provided, That the Contractor has commenced any such judicial challenge or any 

administrative procedures necessary to institute any judicial challenge within 6 months of the policy 

becoming final. By agreeing to the foregoing, the Contracting Officer does not waive any legal 

defenses or remedies that it may have to assert in such a proceeding. Nothing contained herein shall 

be interpreted to validate or invalidate the Central Valley Project M&I Water Shortage Policy. 

617 

618 

619 

620 

621 

622 UNAVOIDABLE GROUNDWATER PERCOLATION

623 13. Omitted 

624 RULES AND REGULATIONS

625 

626 

14. The parties agree that the delivery of M&I Water or use of Federal facilities pursuant 

to this Contract is subject to the applicable provisions of Federal Reclamation law and any applicable 
29

627 rules and regulations promulgated by the Secretary of the Interior under such law. 

628 WATER AND AIR POLLUTION CONTROL

629 

630 

631 

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

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

obtain all required permits or licenses from the appropriate Federal, State, or local authorities. 

632 QUALITY OF WATER

633 

634 

635 

636 

637 

638 

639 

640 

641 

642 

643 

644 

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

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

the Contractor in accordance with the water quality standards specified in subsection 2(b) of the Act 

of August 26, 1937 (50 Stat. 865), as added by Section 101 of the Act of October 27, 1986 (100 Stat. 

3050) or other existing Federal laws. The United States is under no obligation to construct or furnish 

water treatment facilities to maintain or to improve the quality of Water Delivered to the Contractor 

pursuant to this Contract. The United States does not warrant the quality of Water Delivered to the 

Contractor pursuant to this Contract. 

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

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

level reasonably attainable as determined by the Contracting Officer. 

(c) Omitted

645 WATER ACQUIRED BY THE CONTRACTOR

646 OTHER THAN FROM THE UNITED STATES

647 

648 

649 

17. (a) Omitted

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

other than from the United States, may be stored, conveyed, and/or diverted through Project facilities, 
30

650 

651 

652 

653 

654 

655 

656 

657 

658 

659 

660 

661 

662 

663 

664 

665 

666 

667 

668 

669 

670 

671 

subject to the completion of appropriate environmental documentation, with the approval of the 

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

necessary, consistent with the following provisions: 

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

and deliver said water to lands within the Contractor’s Service Area, subject to payment to the United 

States and/or to any applicable Operating Non-Federal Entity of an appropriate rate as determined by 

the CVP Ratesetting Policy and the RRA, each as amended, modified, or superseded from time to 

time. In addition, if electrical power is required to pump non-Project water through the facilities, the 

Contractor shall be responsible for obtaining the necessary power and paying the necessary charges 

therefore. 

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

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

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

Project water service contractors; (iii) interfere with the delivery of contractual water entitlements to 

any other Project water service contractors; or (iv) interfere with the physical maintenance of the 

Project facilities. 

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

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

into or after it is delivered from the Project facilities. The Contractor hereby releases and agrees to 

defend and indemnify the United States and the Operating Non-Federal Entity(ies), and their 

respective officers, agents, and employees, from any claim for damage to persons or property, direct 

or indirect, resulting from the acts(s) the Contractor or its officers, employees, agents, or assigns, in 
31

672 

673 

674 

675 

676 

677 

678 

679 

680 

681 

682 

683 

684 

(i) extracting or diverting non-Project water from any source, or (ii) diverting such non-Project water 

into Project facilities. 

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

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

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

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

Officer, the United States and the Project Contractors entitled to Project Water from Delta Division 

Facilities shall share priority to utilize the remaining capacity of the facilities declared to be available 

by the Contracting Officer for conveyance and transportation of non-Project water prior to any such 

remaining capacity being made available to non-Project contractors. Other Project Contractors shall 

have a second priority to any remaining capacity of facilities declared to be available by the 

Contracting Officer for conveyance and transportation of non-Project water prior to any such 

remaining capacity being made available to non-Project contractors. 

685 OPINIONS AND DETERMINATIONS

686 

687 

688 

689 

690 

691 

692 

693 

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

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

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

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

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

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

provided in a timely manner. Nothing in this subdivision (a) of this Article is intended to or shall 

affect or alter the standard of judicial review applicable under Federal law to any opinion or 
32

694 

695 

696 

697 

698 

699 

determination implementing a specific provision of Federal law embodied in statute or regulation. 

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

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

United States and of the State of California, and the rules and regulations promulgated by the 

Secretary of the Interior. Such determinations shall be made in consultation with the Contractor to 

the extent reasonably practicable. 

700 COORDINATION AND COOPERATION

701 

702 

703 

704 

705 

706 

707 

708 

709 

710 

711 

712 

713 

714 

715 

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

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

affected Project Contractors, in order to improve the operation and management of the Project. The 

communication, coordination, and cooperation regarding operations and management shall include, 

but not be limited to, any action which will or may materially affect the quantity or quality of Project 

Water supply, the allocation of Project Water supply, and Project financial matters including, but not 

limited to, budget issues. The communication, coordination, and cooperation provided for hereunder 

shall extend to all provisions of this Contract. Each party shall retain exclusive decision making 

authority for all actions, opinions, and determinations to be made by the respective party. 

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

other affected Project Contractors, and the Contracting Officer shall arrange to meet with interested 

Project Contractors to develop a mutually agreeable, written Project-wide process, which may be 

amended as necessary separate and apart from this Contract. The goal of this process shall be to 

provide, to the extent practicable, the means of mutual communication and interaction regarding 

significant decisions concerning Project operation and management on a real-time basis. 
33

716 

717 

718 

719 

720 

721 

722 

723 

724 

725 

726 

727 

728 

729 

730 

731 

732 

733 

734 

735 

736 

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

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

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

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

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

improve water supply, water quality, and reliability. 

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

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

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

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

California to seek improved water resource management. 

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

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

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

hold division level meetings to discuss Project operations, division level water management 

activities, and other issues as appropriate. 

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

the other Articles of this Contract, nothing in this Article shall be construed to limit or constrain the 

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

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

physical integrity of structures or facilities. 
34

737 CHARGES FOR DELINQUENT PAYMENTS

738 

739 

740 

741 

742 

743 

744 

745 

746 

747 

748 

749 

750 

751 

752 

753 

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

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

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

When a payment becomes 60 days delinquent, the Contractor shall pay an administrative charge to 

cover additional costs of billing and processing the delinquent payment. When a payment is 

delinquent 90 days or more, the Contractor shall pay an additional penalty charge of six percent per 

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

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

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

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

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

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

remain fixed for the duration of the delinquent period. 

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

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

accrued interest, and finally to the overdue payment. 

754 EQUAL OPPORTUNITY

755 

756 

757 

758 

759 

760 

761 

762 

763 

764 

765 

766 

767 

768 

769 

770 

771 

772 

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

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

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

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

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

include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

compensation; and selection for training, including apprenticeship. The Contractor agrees to post in 

conspicuous places, available to employees and applicants for employment, notices to be provided by 

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

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

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

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

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

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

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

Contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and 

shall post copies of the notice in conspicuous places available to employees and applicants for 
35

773 

774 

775 

776 

777 

778 

779 

780 

781 

782 

783 

784 

785 

786 

787 

788 

789 

790 

791 

792 

793 

employment. 

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

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

the Secretary of Labor. 

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

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

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

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

regulations, and orders. 

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

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

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

for further Government contracts in accordance with procedures authorized in said amended 

Executive Order, and such other sanctions may be imposed and remedies invoked as provided in said 

Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided 

by law. 

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

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

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

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

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

means of enforcing such provisions, including sanctions for noncompliance: Provided, however, 

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

subcontractor or vendor as a result of such direction, the Contractor may request the United States to 

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

794 

795 

796 

797 

798 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

799 

800 

801 

802 

803 

804 

805 

806 

807 

808 

809 

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

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

may be distributed among the Contractor's water users and notwithstanding the default of individual 

water users in their obligations to the Contractor. 

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

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

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

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

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

payment of water rates levied or established by the Contractor. 

(c) With respect to subdivision (b) of this Article, the Contractor shall have no 
36

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

811 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

812 

813 

814 

815 

816 

817 

818 

819 

820 

821 

822 

823 

824 

825 

826 

827 

828 

829 

23. (a) The Contractor shall comply with Title VI of the Civil Rights Act of 1964 (42 

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

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

well as with their respective implementing regulations and guidelines imposed by the U.S. 

Department of the Interior and/or Bureau of Reclamation. 

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

of race, color, national origin, handicap, or age, be excluded from participation in, be denied the 

benefits of, or be otherwise subjected to discrimination under any program or activity receiving 

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

agrees to immediately take any measures necessary to implement this obligation, including 

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

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

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

assistance extended after the date hereof to the Contractor by the Bureau of Reclamation, including 

installment payments after such date on account of arrangements for Federal financial assistance 

which were approved before such date. The Contractor recognizes and agrees that such Federal 

assistance will be extended in reliance on the representations and agreements made in this Article, 

and that the United States reserves the right to seek judicial enforcement thereof. 

830 PRIVACY ACT COMPLIANCE

831 

832 

24. Omitted 

833 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

834 

835 

836 

837 

838 

839 

840 

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

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

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

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

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

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

writing in advance by the Contractor. This Article shall not apply to costs for routine contract 
37

841 administration 

842 WATER CONSERVATION

843 

844 

845 

846 

847 

848 

849 

850 

851 

852 

853 

854 

855 

856 

857 

858 

859 

860 

861 

862 

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

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

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

conservation plan that has been determined by the Contracting Officer to meet the conservation and 

efficiency criteria for evaluating water conservation plans established under Federal law. The water 

conservation and efficiency program shall contain definite water conservation objectives, appropriate 

economically feasible water conservation measures, and time schedules for meeting those objectives. 

Continued Project Water delivery pursuant to this Contract shall be contingent upon the Contractor’s 

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

conservation plan or any revised water conservation plan completed pursuant to subdivision (d) of 

this Article 26 have not yet been determined by the Contracting Officer to meet such criteria, due to 

circumstances which the Contracting Officer determines are beyond the control of the Contractor, 

water deliveries shall be made under this Contract so long as the Contractor diligently works with the 

Contracting Officer to obtain such determination at the earliest practicable date, and thereafter the 

Contractor immediately begins implementing its water conservation and efficiency program in 

accordance with the time schedules therein. 

(b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor shall implement 

the Best Management Practices identified by the time frames issued by the California Urban Water 

Conservation Council for such M&I Water unless any such practice is determined by the Contracting 
38

863 

864 

865 

866 

867 

868 

869 

870 

871 

872 

873 

874 

Officer to be inappropriate for the Contractor. 

(c) The Contractor shall submit to the Contracting Officer a report on the status of 

its implementation of the water conservation plan on the reporting dates specified in the then existing 

conservation and efficiency criteria established under Federal law. 

(d) At five-year intervals, the Contractor shall revise its water conservation plan to 

reflect the then current conservation and efficiency criteria for evaluating water conservation plans 

established under Federal law and submit such revised water management plan to the Contracting 

Officer for review and evaluation. The Contracting Officer will then determine if the water 

conservation plan meets Reclamation’s then current conservation and efficiency criteria for 

evaluating water conservation plans established under Federal law. 

(e) If the Contractor is engaged in direct groundwater recharge, such activity shall 

be described in the Contractor’s water conservation plan. 

875 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

876 

877 

878 

879 

880 

881 

882 

27. Except as specifically provided in Article 17 of this Contract, the provisions of this 

Contract shall not be applicable to or affect non-Project water or water rights now owned or hereafter 

acquired by the Contractor or any user of such water within the Contractor's Service Area. Any such 

water shall not be considered Project Water under this Contract. In addition, this Contract shall not 

be construed as limiting or curtailing any rights which the Contractor or any water user within the 

Contractor's Service Area acquires or has available under any other contract pursuant to Federal 

Reclamation law. 

883 OPERATION AND MAINTENANCE BY SAN LUIS & DELTA-MENDOTA WATER 

884 AUTHORITY

885 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, and 
39

886 

887 

888 

889 

890 

891 

892 

893 

894 

895 

896 

897 

898 

899 

900 

901 

902 

903 

904 

905 

906 

907 

responsibility for funding a portion of the costs of such O&M, have been transferred to the San Luis 

& Delta-Mendota Water Authority, an Operating Non-Federal Entity by separate agreement (8-07-

20-X0354) between the United States and the Operating Non-Federal Entity San Luis & DeltaMendota Water Authority. That separate agreement shall not interfere with or affect the rights or 

obligations of the Contractor or the United States hereunder. 

(b) The Contracting Officer has previously notified the Contractor in writing that 

the O&M of a portion of the Project facilities which serve the Contractor has been transferred to the 

Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, and therefore, the 

Contractor shall pay directly to the Operating Non-Federal Entity San Luis & Delta-Mendota Water 

Authority, or to any successor approved by the Contracting Officer under the terms and conditions of 

the separate agreement between the United States and the Operating Non-Federal Entity San Luis & 

Delta-Mendota Water Authority, described in subdivision (a) of this Article, all rates, charges, or 

assessments of any kind, including any assessment for reserve funds, which the Operating 

Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor determines, sets, 

or establishes for the O&M of the portion of the Project facilities operated and maintained by the 

Operating Non-Federal Entity or such successor. Such direct payments to the Operating Non-Federal 

Entity San Luis & Delta-Mendota Water Authority, or such successor shall not relieve the Contractor 

of its obligation to pay directly to the United States the Contractor’s share of the Project Rates and 

Charges except to the extent the Operating Non-Federal Entity collects payments on behalf of the 

United States in accordance with the separate agreement identified in subdivision (a) of this Article. 

(c) For so long as the O&M of any portion of the Project facilities serving the 

Contractor is performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water 
40

908 

909 

910 

911 

912 

913 

914 

915 

916 

917 

918 

919 

920 

Authority, or any successor thereto, the Contracting Officer shall adjust those components of the 

Rates for Water Delivered under this Contract representing the cost associated with the activity being 

performed by the Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or its 

successor. 

(d) In the event the O&M of the Project facilities operated and maintained by the 

Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority is re-assumed by the 

United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

in writing, and present to the Contractor a revised Exhibit ”B” which shall include the portion of the 

Rates to be paid by the Contractor for Project Water under this Contract representing the O&M costs 

of the portion of such Project facilities which have been re-assumed. The Contractor shall, thereafter, 

in the absence of written notification from the Contracting Officer to the contrary, pay the Rates and 

Charges specified in the revised Exhibit “B” directly to the United States in compliance with Article 

7 of this Contract. 

921 OPERATION AND MAINTENANCE BY 

922 CALIFORNIA DEPARTMENT OF WATER RESOURCES

923 

924 

925 

926 

927 

928 

929 

930 

28.1 (a) The O&M of a portion of the Project facilities which serve the Contractor, and 

responsibility for funding a portion of the costs of such O&M, have been transferred to the California 

Department of Water Resources, an Operating Non-Federal Entity by a separate agreement (14-06-

200-9755) between the United States and Operating Non-Federal Entity California Department of 

Water Resources. This separate agreement shall not interfere with or affect the rights or obligations 

of the Contractor or the United States hereunder. 

(b) The Contracting Officer has previously notified the Contractor in writing that 

the O&M of a portion of the Project facilities which serve the Contractor has been transferred to 
41

931 

932 

933 

934 

935 

936 

937 

938 

939 

940 

941 

942 

943 

944 

945 

946 

947 

948 

949 

950 

951 

952 

Operating Non-Federal Entity California Department of Water Resources, and the Contractor shall 

pay directly to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or to any 

successor approved by the Contracting Officer under the terms and conditions of the separate 

agreement between the United States and Operating Non-Federal Entity San Luis & Delta-Mendota 

Water Authority, described in subdivision (a) of Article 28 of this Contract, all rates, charges, or 

assessments of any kind, including any assessment for reserve funds, which Operating Non-Federal 

Entity California Department of Water Resources, or such successor determines, sets, or establishes 

for the O&M of the portion of the Project facilities operated and maintained by Operating NonFederal Entity California Department of Water Resources, or such successor. Such direct payments 

to Operating Non-Federal Entity San Luis & Delta-Mendota Water Authority, or such successor shall 

not relieve the Contractor of its obligation to pay directly to the United States the Contractor’s share 

of the Project Rates and Charges except to the extent the Operating Non-Federal Entity collects 

payments on behalf of the United States in accordance with the separate agreement identified in 

subdivision (a) of Article 28 of this Contract. 

 (c) For so long as the O&M of any portion of the Project facilities serving the 

Contractor is performed by Operating Non-Federal Entity California Department of Water Resources, 

or any successor thereto, the Contracting Officer shall adjust those components of the Rates for 

Water Delivered under this Contract representing the cost associated with the activity being 

performed by Operating Non-Federal Entity California Department of Water Resources, or its 

successor. 

(d) In the event the O&M of the Project facilities operated and maintained by 

Operating Non-Federal Entity California Department of Water Resources is re-assumed by the 
42

953 

954 

955 

956 

957 

958 

959 

United States during the term of this Contract, the Contracting Officer shall so notify the Contractor, 

in writing, and present to the Contractor a revised Exhibit “B” which shall include the portion of the 

Rates and Charges, to be paid by the Contractor for Project Water under this Contract representing 

the O&M costs of the portion of such Project facilities which have been re-assumed. The Contractor 

shall, thereafter, in the absence of written notification from the Contracting Officer to the contrary, 

pay the Rates and Charges specified in the revised Exhibit “B” directly to the United States in 

compliance with Article 7 of this Contract. 

960 OPERATION AND MAINTENANCE BY WESTLANDS WATER DISTRICT

961 

962 

963 

964 

965 

966 

967 

968 

969 

970 

971 

972 

973 

974 

28.2 (a) The O&M of a portion of the Project facilities which serve the 

Contractor, and responsibility for funding a portion of the costs of such O&M, have been transferred 

to the Westlands Water District, the Operating Non-Federal Entity Westlands Water District by a 

separate contract (14-06-200-2020A) between the United States and Westlands Water District, the 

Operating Non-Federal Entity Westlands Water District. That above referenced contract shall not 

interfere with or affect the rights or obligations of the Contractor or the United States hereunder. 

 (b) The Contracting Officer has previously notified the Contractor in 

writing that the O&M of a portion of the Project facilities which serve the Contractor has been 

transferred to the Operating Non-Federal Entity Westlands Water District. Therefore, the Contractor 

shall enter into a separate agreement with the Operating Non-Federal Entity Westlands Water District 

that provides for the terms and conditions pursuant to which the Operating Non-Federal Entity 

Westlands Water District will deliver Project Water to the Contractor through the portion of the 

Project facilities operated and maintained by the Operating Non-Federal Entity Westlands Water 

District, including the amount(s) the Contractor is to pay the Operating Non-Federal Entity 
43

975 

976 

977 

978 

979 

980 

981 

982 

983 

984 

985 

986 

987 

988 

989 

990 

991 

992 

993 

994 

995 

996 

Westlands Water District for that service. The Contractor shall pay directly to the Operating NonFederal Entity Westlands Water District , or to any successor approved by the Contracting Officer, 

all rates, charges, or assessments of any kind, including any assessment for reserve funds, described 

in the separate agreement referred to above or any amendatory or replacement agreement approved 

by the Contracting Officer, which the Operating Non-Federal Entity Westlands Water District and or 

such successor determines, sets, or establishes for the Operating Non-Federal Entity Westlands Water 

District or such successor. Such direct payments to the Operating Non-Federal Entity Westlands 

Water District or such successor shall not relieve the Contractor of its obligation to pay directly to the 

United States the Contractor=s share of the Project Rates and Charges referred to in this Contract. 

(c) For so long as the O&M of any portion of the Project facilities serving the 

Contractor is performed by the Operating Non-Federal Entity Westlands Water District, or any 

successor thereto, the Contracting Officer shall adjust those components of the Rates for Water 

Delivered under this Contract representing the cost associated with the activity being performed by 

the Operating Non-Federal Entity Westlands Water District or its successor. 

(d) In the event the O&M of the Project facilities operated and maintained by the 

Operating Non-Federal Entity Westlands Water District is re-assumed by the United States during the 

term of this Contract, the Contracting Officer shall so notify the Contractor, in writing, and present to 

the Contractor a revised Exhibit AB” which shall include the portion of the Rates and Charges to be 

paid by the Contractor for Project Water under this Contract representing the O&M costs of the 

portion of such Project facilities which have been re-assumed. The Contractor shall, thereafter, in the 

absence of written notification from the Contracting Officer to the contrary, pay the Rates and 

Charges specified in the revised Exhibit AB@ directly to the United States in compliance with Article 7 
44

997 of this Contract. 

998 PUMPING PLANTS, POWER FOR PUMPING PLANTS, AND TRANSFER

999 OF OPERATION AND MAINTENANCE TO THE CONTRACTOR

1000 

 

 28.3. Omitted 

1001 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1002 

1003 

1004 

1005 

1006 

29. The expenditure or advance of any money or the performance of any obligation of the 

United States under this Contract shall be contingent upon appropriation or allotment of funds. 

Absence of appropriation or allotment of funds shall not relieve the Contractor from any obligations 

under this Contract. No liability shall accrue to the United States in case funds are not appropriated 

or allotted. 

1007 BOOKS, RECORDS, AND REPORTS

1008 

1009 

1010 

1011 

1012 

1013 

1014 

1015 

1016 

1017 

1018 

1019 

1020 

1021 

1022 

1023 

1024 

30. (a) The Contractor shall establish and maintain accounts and other books and 

records pertaining to administration of the terms and conditions of this Contract including: the 

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

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

matters that the Contracting Officer may require. Reports thereon shall be furnished to the 

Contracting Officer in such form and on such date or dates as the Contracting Officer may require. 

Subject to applicable Federal laws and regulations, each party to this Contract shall have the right 

during office hours to examine and make copies of the other party's books and records relating to 

matters covered by this Contract. 

(b) Notwithstanding the provisions of subdivision (a) of this Article, no books, 

records, or other information shall be requested from the Contractor by the Contracting Officer unless 

such books, records, or information are reasonably related to the administration or performance of 

this Contract. Any such request shall allow the Contractor a reasonable period of time within which 

to provide the requested books, records, or information. 

(c) At such time as the Contractor provides information to the Contracting Officer 

pursuant to subdivision (a) of this Article, a copy of such information shall be provided to the 

Operating Non-Federal Entity(ies). 
45

1025 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1026 

1027 

1028 

1029 

1030 

1031 

1032 

1033 

31. (a) The provisions of this Contract shall apply to and bind the successors and 

assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

therein shall be valid until approved in writing by the Contracting Officer. 

(b) The assignment of any right or interest in this Contract by either party shall not 

interfere with the rights or obligations of the other party to this Contract absent the written 

concurrence of said other party. 

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

of any proposed assignment. 

1034 SEVERABILITY

1035 

1036 

1037 

1038 

1039 

1040 

1041 

1042 

1043 

1044 

1045 

1046 

1047 

32. In the event that a person or entity who is neither (i) a party to a Project contract, nor 

(ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) an 

association or other form of organization whose primary function is to represent parties to Project 

contracts, brings an action in a court of competent jurisdiction challenging the legality or 

enforceability of a provision included in this Contract and said person, entity, association, or 

organization obtains a final court decision holding that such provision is legally invalid or 

unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), the 

parties to this Contract shall use their best efforts to (i) within 30 days of the date of such final court 

decision identify by mutual agreement the provisions in this Contract which must be revised and (ii) 

within three months thereafter promptly agree on the appropriate revision(s). The time periods 

specified above may be extended by mutual agreement of the parties. Pending the completion of the 

actions designated above, to the extent it can do so without violating any applicable provisions of 

law, the United States shall continue to make the quantities of Project Water specified in this 
46

1048 

1049 

Contract available to the Contractor pursuant to the provisions of this Contract which were not found 

to be legally invalid or unenforceable in the final court decision. 

1050 RESOLUTION OF DISPUTES

1051 

1052 

1053 

1054 

 33. Should any dispute arise concerning any provisions of this Contract, or the 

parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to resolve 

the dispute. Prior to the Contractor commencing any legal action, or the Contracting Officer 

referring any matter to Department of Justice, the party shall provide to the other party 30 days’ 

written notice of the intent to take such action; Provided, That such notice shall not be required where 

a delay in commencing an action would prejudice the interests of the party that intends to file suit. 

During the 30-day notice period, the Contractor and the Contracting Officer shall meet and confer in 

an attempt to resolve the dispute. Except as specifically provided, nothing herein is intended to 

waive or abridge any right or remedy that the Contractor or the United States may have. 

1055 

1056 

1057 

1058 

1059 

1060 OFFICIALS NOT TO BENEFIT

1061 

1062 

1063 

1064 

34. No Member of or Delegate to Congress, Resident Commissioner, or official of 

the Contractor shall benefit from this Contract other than as a water user or landowner in the same 

manner as other water users or landowners. 

1065 CHANGES IN CONTRACTOR’S SERVICE AREA

1066 

1067 

1068 

1069 

1070 

1071 

1072 

35. (a) While this Contract is in effect, no change may be made in the Contractor's 

Service Area by inclusion or exclusion of lands, dissolution, consolidation, merger, or otherwise, 

except upon the Contracting Officer's written consent. 

(b) Within 30 days of receipt of a request for such a change, the Contracting 

Officer will notify the Contractor of any additional information required by the Contracting Officer 

for processing said request, and both parties will meet to establish a mutually agreeable schedule for 

timely completion of the process. Such process will analyze whether the proposed change is likely 
47

1073 

1074 

1075 

1076 

1077 

1078 

1079 

to: (i) result in the use of Project Water contrary to the terms of this Contract; (ii) impair the ability of 

the Contractor to pay for Project Water furnished under this Contract or to pay for any 

Federally-constructed facilities for which the Contractor is responsible; and (iii) have an impact on 

any Project Water rights applications, permits, or licenses. In addition, the Contracting Officer shall 

comply with the NEPA and the ESA. The Contractor will be responsible for all costs incurred by the 

Contracting Officer in this process, and such costs will be paid in accordance with Article 25 of this 

Contract. 

1080 FEDERAL LAWS

1081 

1082 

36. By entering into this Contract, the Contractor does not waive its rights to contest the 

validity or application in connection with the performance of the terms and conditions of this 

Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with the 

terms and conditions of this Contract unless and until relief from application of such Federal law or 

regulation to the implementing provision of the Contract is granted by a court of competent 

jurisdiction. 

1083 

1084 

1085 

1086 

1087 

1088 NOTICES

1089 

1090 

1091 

1092 

1093 

1094 

1095 

1096 

37. Any notice, demand, or request authorized or required by this Contract shall be 

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

to the Area Manager, South-Central California Area Office, 1243 N Street, Fresno, California 97321, 

and on behalf of the United States, when mailed, postage prepaid, or delivered to the City Council of 

the City of Coalinga, 160 West Elm, Coalinga, California 93210. The designation of the addressee or 

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

notices. 
48

1097 

1098 

1099 

1100 

1101 

1102 

1103 

1104 

1105 

1106 

1107 

1108 

1109 

1110 

1111 

1112 

1113 

1114 

IN WITNESS WHEREOF, the parties hereto have executed this Interim Renewal Contract as 

of the day and year first above written. 

 THE UNITED STATES OF AMERICA 

 By: _________________________________________ 

 Regional Director, Mid-Pacific Region 

Bureau of Reclamation 

(SEAL) 

 Approved as to form: 

_________________________________ 

 City Attorney 

 CITY OF COALINGA 

 

 By: __________________________________________ 

Mayor 

Attest: 

By: _______________________________ 

 City Clerk 
 EXHIBIT A

[Map or Description of Service Area] 
EXHIBIT B

2009 Water Rates and Charges