- 9I

United States Department ofthe

BUREAU OFREGL4MATION

Washington, D.C. 20240 7

INREPLYWTh TO:

D-5200 -

WTR-4. 00

MEMORANDUM

To: Regional Director, PN, MP, LC, UC, GP ... ••-.

Attention: PN-1000, PN-3300 MP-100, MP-440, LC-1000, LC-4440,

UC-100, UC-284, GP-1000, GP-2 100

From: - Eluid L. Marti

Commissioner

Subject: - Water Measurement Policy

The need for the development of a specific standard contract article requiring the measurement

and reporting ofwater deliveries to irrigation, municipal and industrial; and other water users

was raised as part ofthe Bureau ofReclamation’s (Reclamation) review of its Standard

Articles. Similar concerns were also raised by the Office ofInspector General (IG) in its 1992

audit entitled “Repayment of Municipal and Industrial Water Supply Investment Costs.” The

IG suggested that Reclamation “. . . establish internal controls requiring periodic reviews of

annual project water use to ensure that the quantity delivered conforms with that specified in

the contracts.” This suggestion was accepted and instituted by the Commissioner in his

memorandum to the regions dated November 22, 1994.

In view ofthese concerns, the creation of a water measurement standard article for inclusion in

all water service, and repayment contracts was discussed at the contracts and repayments

conference held in Boulder City, Nevada, on January 29, 1997. The consensus was that a

standard article may be impractical due to differences in water sources and delivery systems.

A particular cQncern raised at the conference was the potential forthe terms of a water

measurement standard article to be interpreted as Reclamation overriding State water right

laws. Therefore, in lieu of a standard article, a specific policy mandating the inclusion of

water measurement articles in contracts was recommended.

I concur with that recommendation. All future short- and long-term water service and

repayment contracts and amendments ofexisting contracts for the delivery of project water or

delivery of non-project water through Federal Reclamation facilities shall contain appropriate

water measurement articles as determined by the regional director. However, where existing

agreements and/or State requirements pertaining to water measurement are present such

agreements and/or State requirements may be used in lieu of this policy and reflected in the

contract. Although flexibility in negotiating a water measurement article’s terms is delegated

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to the regional director, a briefdiscussion explaining the article shall be included in the basis

of negotiation.

Water measurement articles shall provide for:

1. The specific source and quantity of water for which the contractor is entitled;

2. Each contract party’s responsibility for the furnishing, location, installation, operation,

and maintenance ofthe specified type ofwater measuring devices. When possible the

operation and maintenance ofthe water measurement devices should be at the contractor’s

expense;

3. Delivery and measurement of water where possible should be at the appropriate

Reclamation facility. Where this is not possible, or when necessary to be in conformance with

State laws, compacts, or other agreements requiring water measurement devices at other

locations, advance consultation and approval from State-appointed watermasters, or other

similar appropriate authority, s’hall be obtained forthe installation, operation, and maintenance

of the devices.

4. Reporting on at least an annual basis of monthly water volumes; and

5. Periodic inspections ofthe devices or methods by the contracting officer.

Attached are examples of water measurement articles currently in use which may be helpful in.

developing articles for your contracts.

This policy applies, but is not limited to, contracts written pursuant to the Reclamation Project

Act of 1939; Water Supply Act of 1958; Small Reclamation Projects Act of 1956;

Rehabilitation and Betterment Act; Distribution Systems Loan Act; Warren Act; and

Emergency Fund Act contracts. It does not apply to Safety of Dams Act contracts.

Pl~ase insert this memorandum in section II ofthe looseleaf book “Policy Instructions for

Repayment, Water Service, and other Contracts” sent to you by our memorandum of

February 26, 1980.

Attachment