Comparison of Existing Sacramento River Settlement Contract with Draft Renewal Contract

(Standard Form Irrigation Contract)

1

Existing Contract Renewal Contract Comments 

Preamble Preamble Added references to specific laws enacted since execution of 

existing contract. 

Explanatory Recitals 

(5) 

Explanatory Recitals 

(7) 

5th & 6th recitals are new. 

Article 1 - Definitions Article 1 - Definitions Definitions now shown in alphabetical order. New definitions were 

added for “Basin-Wide Water Management Plan”, “Charges”, 

“CVPIA”, “Excess Lands”, “Full-Cost Rate”, “Ineligible Lands”, 

“Landholder”, “Rates”, & “Surface Water”. 

2 - Term 2 - Term No change: Term will be 40 years. 

3 - Water to be 

Furnished To 

Contractor 

3 - Water to be 

Furnished To 

Contractor 

Article 3(b) recognizes that contractor may have acquired other 

rights to divert water; 

Article 3(c) requires the contractor to submit a water diversion 

schedule by April 1; 

Article 3(c)(1) requires payment of an annually adjusted fee for 

rescheduling Base Supply during the months of June through 

October. Fee is equal to 50% of the sum of the storage O&M rate 

and storage capital rate. 

4 – Return Flow 4 – Return Flow Language was revised. 

5 – Critical Year 

Reduction 

5 – Constraints on the 

Availability of Water 

Renamed article, but no change in reduction of supply that applies 

during a “Critical Year” when water quantities are reduced by 25%.

6 – Need for more 

water 

6 – Integrated Water 

Management 

Existing Article 6 was deleted as Reclamation does not have 

additional Project Water that can be made available for diversion. 

Renewal Article 6 was inserted to provide cooperation to maximize 

benefits. 

7 – Use of Water 7 – Use of Water Article 7(a) was revised to provide a more complete definition of 

agricultural purposes; 

Article 7(b) was added to obtain contractor’s compliance with 

biological opinions prepared pursuant to the Endangered Species 

Act of 1973. 

8 - Payments 8 – Payments Contractors no longer have to pay for 100% of Project Water 

whether it is diverted or not. Must pay for 75% of Project Water in 

Exhibit A whether or not this quantity is actually diverted. Payment 

for diversions of Project Water in excess of 75% will be made for 

the amount actually diverted. 

The Rate for Project Water will be the Cost of Service rate 

(determined annually), instead of $2.00 per acre-foot (the 2003 

Cost of Service rate is in the $20.00 range). 

Contractors must pay a Restoration Fund Charge for Project Water 

actually diverted (the 2003 Restoration Fund charge for irrigation 

water is $7.69 per acre-foot; the 2003 M&I charge is $15.38). 

Article 8(g) has been revised to give the contractor the right to 

challenge the validity of Rates and Charges. 

9 – Agreement on 

Water Quantities. 

9 – Agreement on 

Water Quantities. 

Article 9(c) was added in case of a decision that modifies the terms 

and conditions of the water rights of the contractor or the United 

States. 

10 - Measurement 10 - Measurement Article 10 (e) was added to require the contractor to pay the United 

States for costs incurred if the diversion point is moved or 

modified. 

Articles 10(f) and (g) are new subarticles. 

11 – All Benefits 

Conditioned Upon 

Payment 

11 – Rules and 

Regulations 

Existing Article 11 is now Article 12. 

Renewal Article 11 replaces Articles 14, 15, 16 and 17 of existing 

contract and cites the Reclamation Reform Act of 1982, which 
Comparison of Existing Sacramento River Settlement Contract with Draft Renewal Contract

(Standard Form Irrigation Contract)

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addresses acreage limitation provisions that apply to Project 

Water. 

12 – Waiver of Default 12 – General 

Obligation ... 

Existing Article 12 is now Article 32, but language remains the 

same. 

13 – Books, Records, 

... 

13 – Charges for 

Delinquent Payments

Existing Article 13 is now Article 19. 

Renewal Article 13 dealing with delinquent payments expands 

language that was in existing Article 8. 

14 – Land Not to 

Receive Project Water 

14 – Quality of Water Existing Article 14 was replaced by renewal Article 11. 

Renewal Article 14 is new. 

15 – Valuation and 

Sale of Excess Lands 

15 – Water and Air 

Pollution Control 

Existing Article 15 was replaced by renewal Article 11. 

Renewal Article 15 is new. 

16 – Excess Lands 16 – Equal 

Opportunity 

Existing Article 16 was replaced by renewal Article 11. 

Renewal Article 16 is new. Inclusion in the contract is required by 

Executive Order. 

17 – Amendment of 

Federal Reclamation 

Laws 

17 – Compliance with 

Civil Rights Laws and 

Regulations 

Existing Article 17 was replaced by renewal Article 11. 

Renewal Article 17 is new. Inclusion in the contract is required by 

various statutes, including the Civil Rights Act of 1964. This Article 

is omitted when the contractor is the actual user of water. 

18 – Mingling ... 18 – Mingling ... No change except for using some new defined terms. 

19 – Contingent Upon 

... 

19 – Books, Records, 

... 

Existing Article 19 is now renewal Article 25. 

Renewal Article 19 was existing Article 13. 

20 – Officials Not to 

Benefit 

20 – Change of Place 

of Use ... 

Existing Article 20 is now renewal Article 24 which has been 

expanded. 

Renewal article is not applicable to all contractors, in which case it 

will show as being omitted. 

21 - Notices 21 – Consolidation 

of Contracting Entities

Existing Article 21 is now renewal Article 22. 

Renewal Article 21 was existing Article 23. 

22 – Contract 

Assignment or 

Termination 

22 - Notices Existing Article 22 is now renewal Article 33. 

Renewal Aticle 22 was existing Article 21. 

23 - Consolidation 

of Contracting Entities 

23 – Assignment 

Limited ... 

Existing Article 23 is now renewal Article 21. 

Renewal article is not applicable to all contractors, in which case it 

will show as being omitted. 

24 – Remedies ...- 

Opinions & 

Determinations 

24 - Officials Not to 

Benefit 

Existing Article 24 is now renewal Article 30 which was edited and 

no longer includes subarticle (c). 

Renewal Article 24 was existing Article 20. 

25 – Assurance 

Relating to Validity of 

Contract 

25 – Contingent Upon 

... 

Existing Article 25 has been revised and is now renewal Article 26.

Renewal Article 25 was existing Article 19, but has been updated. 

26 - Termination 26 - Confirmation of 

Settlement Contract 

Existing Article 26 is now renewal Article 34. 

Renewal Article 26 replaces existing Article 25. 

 27 – Unavoidable 

Groundwater 

Percolation 

This article addresses the issue covered by language in existing 

Article 14. 

 28 – Privacy Act 

Compliance 

New article – required by the Reclamation Reform Act of 1982. 

 29 – Water 

Conservation 

New article which is applicable to the diversion of Project 

Water. Contractors with more than 2,000 acre-feet of Project 

Water, or more than 2,000 irrigable acres, will have to develop and 

implement water conservation plans. 

Subarticle 29(e) allows the Contractor to offer to reduce the 

amount of Project Water to be taken in any one year (with 
Comparison of Existing Sacramento River Settlement Contract with Draft Renewal Contract

(Standard Form Irrigation Contract)

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Reclamation’s approval) in order to reduce the amount payable 

under Article 8(a)(1). 

 30 – Opinions and 

Determinations 

This was existing Article 24, but was edited and no longer includes 

subarticle (c). This subarticle allowed contractors who signed 

contracts in 1964 to take advantage of any new terms and 

conditions offered to those who signed at a later date. Since all 

renewal contracts will be signed at roughly the same time, this 

subarticle is no longer necessary. 

 31 – Contractor to 

Pay Certain Misc. 

Costs. 

New article. 

 32 – Waiver of 

Default 

This article was existing Article 12. 

33 – Contract 

Assignment or 

Termination ... 

This article was existing Article 22. 

34 - Termination This article was existing Article 26. 

Exhibit A Exhibit A Schedule of Monthly Diversions of Water to be updated to show 

current diversion points. 

Exhibit B Exhibit B Map of Contract Service Area to be updated. 

Exhibit C Exhibit C Unit Duties to be updated. 

 Exhibit D New Exhibit to show Rates and Charges for Project Water.