Irrigation and M&I 

Rev. R. O. Draft 10/19-2004 

Rev. SCCAO Draft 10/17-2004

Rev. SCCAO Draft 03/19-2004 

Rev. SCCAO Draft 09/22-2003 

Rev. RO Draft 02/06-2002 

SCCAO Draft 11/16-2000 

Contract No. 

14-06-200-8293A-LTR1

UNITED STATES 

DEPARTMENT OF THE INTERIOR 

BUREAU OF RECLAMATION 

 Central Valley Project, California 

LONG-TERM RENEWAL CONTRACT AMONG THE UNITED STATES,

THE DEPARTMENT OF WATER RESOURCES OF THE STATE OF CALIFORNIA,

AND THE COUNTY OF TULARE

PROVIDING FOR PROJECT WATER SERVICE

Table of Contents

Article No. Title Page No.

 Preamble .............................................................................................................. 1-2 

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

 1 Definitions.......................................................................................................... 5-10 

 2 Term of Contract.............................................................................................. 10-14

 3 Water to be Made Available and Delivered to the Contractor......................... 14-19 

 4 Time for Delivery of Water ............................................................................. 20-21 

 5 Point of Diversion and Responsibility for Distribution of Water....................21-26 

 6 Measurement of Water Within the Contractor’s Service Area........................ 26-28 

 7 Rates and Method of Payment for Water......................................................... 28-35 

 8 Rates and Method of Payment for Conveyance 

 and Other Services by DWR....................................................................... 35-37 

 9 Sales, Transfers, or Exchanges of Water ......................................................... 37-39 

 10 Application of Payments and Adjustments...................................................... 39-40 

 11 Temporary Reductions--Return Flows ............................................................ 40-42 

 12 Constraints on the Availability of Water ......................................................... 42-43 

 13 Unavoidable Groundwater Percolation................................................................. 43 

 14 Rules and Regulations........................................................................................... 43 

 15 Water and Air Pollution Control........................................................................... 44 

 16 Quality of Water ................................................................................................... 44 

 17 Water Acquired by the Contractor Other Than From the United States.......... 44-46 

 18 Opinions and Determinations .......................................................................... 46-47 

 19 Coordination and Cooperation......................................................................... 47-49 

 20 Charges for Delinquent Payments ........................................................................ 49
Contract No. 14-06-200-8293A-LTR1 

Table of Contents - continued

Article No. Title Page No.

 21 Equal Opportunity............................................................................................49-50 

 22 General Obligation--Benefits Conditioned Upon Payment ............................. 50-52 

 23 Compliance With Civil Rights Laws and Regulations ......................................... 52 

 24 Privacy Act Compliance ..................................................................................52-53 

 25 Contractor to Pay Certain Miscellaneous Costs.................................................... 53 

 26 Water Conservation ......................................................................................... 54-55 

 27 Existing or Acquired Water or Water Rights................................................... 55-56 

 28 Operation and Maintenance by Operating Non-Federal Entity ....................... 56-57 

 29 Contingent on Appropriation or Allotment of Funds ........................................... 57 

 30 Books, Records, and Reports........................................................................... 57-58 

 31 Assignment Limited--Successors and Assigns Obligated .................................... 58 

 32 Severability ........................................................................................................... 59 

 33 Resolution of Disputes..................................................................................... 59-60 

 34 Officials Not to Benefit......................................................................................... 60 

 35 Changes in Contractor’s or Subcontractor’s Service Area .............................. 60-61 

 36 Federal Laws......................................................................................................... 61 

 37 Notices .................................................................................................................. 61

 38 Confirmation of Contract...................................................................................... 61 

 39 Subcontracts--Sale of Water ............................................................................ 61-62 

 Signature Page ...................................................................................................... 63 

 

 Exhibit A - Map of Contractor's Service Area 

 Exhibit B - Rates and Charges
Rev. R. O. Draft 10/19-2004 

 Rev. SCCAO Draft 10/17-2004

Rev. SCCAO Draft 03/19-2004 

Rev. SCCAO Draft 09/22-2003 

Rev. RO Draft 02/06-2002 

SCCAO Draft 11/16-2000 

Contract No. 

14-06-200-8293A-LTR1

 

1 UNITED STATES 

2 DEPARTMENT OF THE INTERIOR 

3 BUREAU OF RECLAMATION 

Central Valley Project, California 

4 

5 LONG-TERM RENEWAL CONTRACT AMONG THE UNITED STATES,

6 THE DEPARTMENT OF WATER RESOURCES OF THE STATE OF CALIFORNIA,

7 AND THE COUNTY OF TULARE

8 PROVIDING FOR PROJECT WATER SERVICE

9 THIS CONTRACT, made this _____ day of ____________________, 2005, in 

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

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

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

13 July 2, 1956 (70 Stat. 483), June 21, 1963 (77 Stat. 68), October 12, 1982 (96 Stat. 1263), 

14 October 27, 1986 (100 Stat. 3050), as amended, and Title XXXIV of the Act of October 30, 1992 

15 (106 Stat. 4706), all collectively hereinafter referred to as Federal Reclamation law and pursuant 

16 to the California Central Valley Project Act [Part 3, Division 6 (commencing at Section 11100) 

17 of the California Water Code] and the California Water Resources Development Bond Act 

18 [Chapter 8, Part 6, Division 6 (commencing at Section 12930) of the California Water Code,] 

19 and all acts of the California legislature amendatory thereto or supplementary thereof, among 

20 THE UNITED STATES OF AMERICA, hereinafter referred to as the United States, the 

21 DEPARTMENT OF WATER RESOURCES OF THE STATE OF CALIFORNIA, hereinafter 

22 referred to as DWR, and the COUNTY OF TULARE, hereinafter referred to as the Contractor, 
Contract No. 14-06-200-8293A-LTR1 

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

24 laws thereof; 

25 WITNESSETH, That: 

26 EXPLANATORY RECITALS

[1st 27 ] WHEREAS, the United States has constructed and is operating the Central Valley 

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

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

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

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

32 and the San Joaquin River and their tributaries; and 

[2nd 33 ] WHEREAS, the United States constructed the Project facilities, which will be 

34 used in part for the furnishing of water to the Contractor pursuant to the terms of this Contract; 

35 and 

36 [2.2] WHEREAS, as provided herein, Project Water may be made available to the 

37 Contractor from the Sacramento-San Joaquin Delta and/or the Friant Division and delivered to 

38 the Contractor through appropriate Federal, state and/or local facilities; and 

39 [2.3] WHEREAS, DWR is engaged in the operation of the State Water Resources 

40 Development System pursuant to the laws of the State of California involving the development, 

41 transportation, and delivery of water supplies to public agencies throughout the State of 

42 California; and 

43 [2.4] WHEREAS, the Cross Valley Canal, connecting the California Aqueduct and the 

44 Friant-Kern Canal in Kern County, has been constructed by the Contractor and others at no cost 

45 to either the United States or DWR; and 
Contract No. 14-06-200-8293A-LTR1 

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46 [2.5] WHEREAS, the Contractor has the right to use the Cross Valley Canal for 

47 conveyance of the Project Water furnished hereunder; and 

[3rd 48 ] WHEREAS, the rights to Project Water were acquired by the United States 

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

[4th 50 ] WHEREAS, the Contractor and the United States entered into 

51 Contract No. 14-06-200-8293A, as amended, which established terms for the delivery to the 

52 Contractor of Project Water via the Cross Valley Canal from November 10, 1975, through 

53 February 29, 1996; and 

[5th 54 ] WHEREAS, the Contractor and the United States have pursuant to subsection 

55 3404(c)(1) of the Central Valley Project Improvement Act (CVPIA), subsequently entered into 

56 interim renewal contract(s) identified as Contract No(s). 14-06-200-8293A-IR1, -IR2, -IR3, 

57 -IR4, -IR5, -IR6, -IR7, and -IR8, the current of which is hereinafter referred to as the Existing 

58 Contract, which provided for the continued water service to the Contractor from March 1, 2004, 

59 through February 28, 2005; and 

60 [5.2] WHEREAS, the Contractor proposes to enter into subcontracts for the furnishing 

61 of water made available to the Contractor under this Contract; and 

[6th 62 ] WHEREAS, Section 3404(c) of the CVPIA provides for long-term renewal of 

63 the Existing Contract following completion of appropriate environmental documentation, 

64 including a programmatic environmental impact statement (PEIS) pursuant to the National 

65 Environmental Policy Act (NEPA) analyzing the direct and indirect impacts and benefits of 

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

67 and 
Contract No. 14-06-200-8293A-LTR1 

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[7th 68 ] WHEREAS, the United States has completed the PEIS and all other appropriate 

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

[8th 70 ] WHEREAS, the Contractor has requested the long-term renewal of the Existing 

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

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

[9th 73 ] WHEREAS, the United States has determined that the Contractor has fulfilled all 

74 of its obligations under the Existing Contract; and 

[10th 75 ] WHEREAS, the Contractor has demonstrated to the satisfaction of the 

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

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

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

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

80 and 

[11th 81 ] WHEREAS, water obtained from the Project has been relied upon by urban and 

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

83 as an essential portion of its water supply; and 

[12th 84 ] WHEREAS, the economies of regions within the Project, including the 

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

86 Project; and 

[13th 87 ] WHEREAS, the Secretary intends through coordination, cooperation, and 

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

89 Project for all Project purposes; and 
Contract No. 14-06-200-8293A-LTR1 

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[14th 90 ] WHEREAS, the mutual goals of the United States and the Contractor include: to 

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

92 repayment of the Central Valley Project as required by law; to guard reasonably against Project 

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

94 Water; and to comply with all applicable environmental statutes, all consistent with the legal 

95 obligations of the United States relative to the Project; and 

[15th 96 ] WHEREAS, the parties intend by this Contract to develop a more cooperative 

97 relationship in order to achieve their mutual goals; and 

98 [15.2] WHEREAS, the Contractor desires to contract with DWR for conveyance of 

99 Project Water through the facilities of the State Water Project (SWP) as aforesaid under an 

100 arrangement wherein the United States will furnish the necessary power for pumping such water 

101 through DWR's Delta Pumping Plant and Dos Amigos Pumping Plant pursuant to the then102 existing CVP Project use power policy; and 

103 [15.3] WHEREAS, DWR is willing to convey such water through State Facilities subject 

104 to needs and obligations of the SWP and the availability of transportation capacity and payment 

105 of costs as herein provided; and 

[16th 106 ] WHEREAS, the United States, DWR, and the Contractor are willing to enter into 

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

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

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

110 DEFINITIONS

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

112 incompatible with the intent of the parties as expressed in this Contract, the term: 
Contract No. 14-06-200-8293A-LTR1 

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

114 both dates inclusive; 

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

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

117 annually by the Contracting Officer pursuant to this Contract; 

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

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

120 Contract Total; 

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

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

123 or regulation; 

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

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

126 (f) “Contractor’s Service Area” or, if applicable, “Subcontractor’s Service 

127 Area,” shall mean the area to which the Contractor is permitted to provide Project Water under 

128 this Contract as described in Exhibit “A” attached hereto, which may be modified from time to 

129 time in accordance with Article 35 of this Contract without amendment of this Contract; 

130 (f2) “Cross Valley Canal” shall mean the water conveyance and related works 

131 constructed by the Contractor and others to deliver water from the State Facilities, which canal 

132 currently is operated by KCWA; 

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

134 XXXIV of the Act of October 30, 1992 (106 Stat. 4706); 
Contract No. 14-06-200-8293A-LTR1 

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135 (h) “Eligible Lands” shall mean all lands to which Irrigation Water may be 

136 delivered in accordance with Section 204 of the Reclamation Reform Act of October 12, 1982 

137 (96 Stat. 1263), as amended, hereinafter referred to as RRA; 

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

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

140 Reclamation law; 

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

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

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

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

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

146 and funded O&M deficits from October 12, 1982, on costs outstanding at that date, or from the 

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

148 in accordance with subsections 202(3)(B) and (3)(C) of the RRA. The Full Cost Rate includes 

149 actual operation, maintenance, and replacement costs consistent with Section 426.2 of the Rules 

150 and Regulations for the RRA; 

151 (k) “Ineligible Lands” shall mean all lands to which Irrigation Water may not 

152 be delivered in accordance with Section 204 of the RRA; 

153 (l) “Irrigation Full Cost Water Rate” shall mean the Full Cost Rate applicable 

154 to the delivery of Irrigation Water; 

155 (m) “Irrigation Water” shall mean water made available from the Project that 

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

157 incidental thereto, and watering of livestock; 
Contract No. 14-06-200-8293A-LTR1 

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158 (m2) “KCWA” shall mean the Kern County Water Agency; 

159 (n) “Landholder” shall mean a party that directly or indirectly owns or leases 

160 nonexempt land, as provided in 43 CFR 426.2; 

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

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

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

164 which are kept for personal enjoyment or water delivered to land holdings operated in units of 

165 less than five acres unless the Contractor establishes to the satisfaction of the Contracting Officer 

166 that the use of water delivered to any such landholding is a use described in subdivision (m) of 

167 this Article; 

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

169 the delivery of M&I Water; 

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

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

172 maintenance of Project facilities; 

173 (r) “Operating Non-Federal Entity” shall mean either the San Luis & 

174 Delta- Mendota Water Authority or the Friant Water Authority, their successors or assigns, non175 Federal entities which have the obligation to operate and maintain all or a portion of the Project 

176 facilities pursuant to agreements with the United States, and which may have funding obligations 

177 with respect thereto; 

178 (r2) "Operations Manual" shall mean the manual setting forth detailed 

179 operations and management procedures prepared by DWR, the Contracting Officer and the 

180 Contractor; 
Contract No. 14-06-200-8293A-LTR1 

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

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

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

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

185 Reclamation law; 

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

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

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

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

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

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

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

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

194 preceding contract(s); 

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

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

197 through any agency of the Department of the Interior; 

198 (x2) “State Facilities” shall mean that portion of the SWP (including DWR's 

199 portion of joint facilities), necessary to convey Project Water from the Sacramento-San Joaquin 

200 Delta (Delta) to Reach 16A of the California Aqueduct; 

201 (x3) “SWP” shall mean the California State Water Project; 

202 (x4) “SWP Contractor” shall mean those entities with a long-term water supply 

203 contract for water deliveries of SWP water on the date this Contract is executed; 
Contract No. 14-06-200-8293A-LTR1 

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204 (x5) “Subcontractor” shall mean an individual, group of individuals, 

205 organization, or entity in the County who contracts with the Contractor to use Water Made 

206 Available to the Contractor under this Contract; 

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

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

209 (y2) “Transportation Minimum OMP&R Costs” and “Transportation Variable 

210 OMP&R Costs” shall mean those costs as defined in the long-term SWP contracts and as 

211 annually described in DWR Bulletin 132; 

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

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

214 Officer; 

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

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

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

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

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

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

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

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

223 TERM OF CONTRACT

224 2. (a) This Contract shall be effective March 1, 2005, through February 28, 

225 2030. In the event the Contractor wishes to renew this Contract beyond February 28, 2030, the 

226 Contractor shall submit a request for renewal in writing to the Contracting Officer no later than 
Contract No. 14-06-200-8293A-LTR1 

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227 two years prior to the date this Contract expires. The renewal of this Contract insofar as it 

228 pertains to the furnishing of Irrigation Water to the Contractor shall be governed by subdivision 

229 (b) of this Article, and the renewal of this Contract insofar as it pertains to the furnishing of M&I 

230 Water to the Contractor shall be governed by subdivision (c) of this Article. The terms of this 

231 Contract and its renewal insofar as it pertains to conveyance of water in SWP Facilities shall be 

232 governed by subdivision (e) of this Article. 

233 (b) (1) Under terms and conditions of a renewal contract that are mutually 

234 agreeable to the parties hereto, and upon a determination by the Contracting Officer that at the 

235 time of contract renewal the conditions set forth in subdivision (b)(2) of this Article are met, and 

236 subject to Federal and State law, this Contract, insofar as it pertains to the furnishing of Irrigation 

237 Water to the Contractor, shall be renewed for a period of 25 years. 

238 (2) The conditions which must be met for this Contract to be renewed 

239 are: (i) the Contractor has prepared a water conservation plan that has been determined by the 

240 Contracting Officer in accordance with Article 26 of this Contract to meet the conservation and 

241 efficiency criteria for evaluating such plans established under Federal law; (ii) the Contractor is 

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

243 water conservation plan as required by Article 26 of this Contract; (iii) the Contractor is 

244 maintaining all water measuring devices and implementing all water measurement methods as 

245 approved by the Contracting Officer pursuant to Article 6 of this Contract; (iv) the Contractor 

246 has reasonably and beneficially used the Project Water supplies made available to it and, based 

247 on projected demands, is reasonably anticipated and expects to fully utilize for reasonable and 

248 beneficial use the quantity of Project Water to be made available to it pursuant to such renewal; 
Contract No. 14-06-200-8293A-LTR1 

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249 (v) the Contractor is complying with all terms and conditions of this Contract; and (vi) the 

250 Contractor has the physical and legal ability to deliver Project Water. 

251 (3) The terms and conditions of the renewal contract described in 

252 subdivision (b)(1) of this Article and any subsequent renewal contracts shall be developed 

253 consistent with the parties’ respective legal rights and obligations, and in consideration of all 

254 relevant facts and circumstances, as those circumstances exist at the time of renewal, including, 

255 without limitation, the Contractor’s need for continued delivery of Project Water; environmental 

256 conditions affected by implementation of the Contract to be renewed, and specifically changes in 

257 those conditions that occurred during the life of the Contract to be renewed; the Secretary’s 

258 progress toward achieving the purposes of the CVPIA as set out in Section 3402 and in 

259 implementing the specific provisions of the CVPIA; and current and anticipated economic 

260 circumstances of the region served by the Contractor. 

261 (c) This Contract, insofar as it pertains to the furnishing of M&I Water to the 

262 Contractor, shall be renewed for successive periods of up to 40 years each, which periods shall 

263 be consistent with then-existing Reclamation-wide policy, under terms and conditions mutually 

264 agreeable to the parties and consistent with Federal and State law. The Contractor shall be 

265 afforded the opportunity to comment to the Contracting Officer on the proposed adoption and 

266 application of any revised policy applicable to the delivery of M&I Water that would limit the 

267 term of any subsequent renewal contract with the Contractor for the furnishing of M&I Water to 

268 less than 40 years. 

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

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

271 Contract, of whether a conversion of the relevant portion of this Contract to a contract under 
Contract No. 14-06-200-8293A-LTR1 

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272 subsection 9(d) of the Reclamation Project Act of 1939 can be accomplished pursuant to the 

273 Act of July 2, 1956 (70 Stat. 483). The Contracting Officer shall also make a determination ten 

274 years after the date of execution of this Contract and every five years thereafter during the term 

275 of the Contract of whether a conversion of the relevant portion of this Contract to a contract 

276 under subsection 9(c)(1) of the Reclamation Project Act of 1939 can be accomplished. 

277 Notwithstanding any provision of this Contract, the Contractor reserves and shall have all rights 

278 and benefits under the Act of July 2, 1956 (70 Stat 483). The Contracting Officer anticipates that 

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

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

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

282 allocation is made, and subject to satisfaction of the conditions set out in this subdivision, this 

283 Contract shall, at the request of the Contractor, be converted to a contract under subsection 9(d) 

284 or 9(c)(1), whichever is applicable, of the Reclamation Project Act of 1939, subject to applicable 

285 Federal law and under stated terms and conditions mutually agreeable to the Contractor and the 

286 Contracting Officer. A condition for such conversion to occur shall be a determination by the 

287 Contracting Officer that, account being taken of the amount credited to return by the Contractor 

288 as provided for under Federal Reclamation law, the remaining amount of construction costs 

289 assignable for ultimate return by the Contractor can probably be repaid to the United States 

290 within the term of a contract under subsection 9(d) or 9(c) (1), whichever is applicable. If the 

291 remaining amount of costs that are properly assignable to the Contractor cannot be determined 

292 during the term of this Contract, the Contracting Officer shall notify the Contractor, and provide 

293 the reason(s) why such a determination could not be made. Further, the Contracting Officer shall 

294 make such a determination as soon thereafter as possible so as to permit, upon request of the 
Contract No. 14-06-200-8293A-LTR1 

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295 Contractor and satisfaction of the conditions set out above, conversion to a contract under 

296 subsection 9(d) or 9(c)(1), whichever is applicable. In the event such determination of costs has 

297 not been made at a time which allows conversion of this Contract during the term of this 

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

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

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

301 subdivision. 

302 (e) DWR’s agreement to convey water under this Contract shall be effective 

303 until February 28, 2030. Thereafter, DWR and the Contractor may renew the agreement to 

304 convey for additional periods on terms mutually agreeable to the parties. The parties 

305 acknowledge that operation of the SWP, including the State Facilities, is not, and shall not be, 

306 subject to Federal Reclamation law. 

307 WATER TO BE MADE AVAILABLE AND DELIVERED TO THE CONTRACTOR

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

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

310 this Contract, the Contracting Officer shall make available in the Delta for delivery to the 

311 Contractor 5,308 acre-feet of Project Water for irrigation and M&I purposes. Cross Valley 

312 Contractors shall have a primary priority to pumping capacity made available by the SWP for 

313 CVP purposes up to the allocation made for CVP irrigation contractors south of the Delta. 

314 Allocations of water supply to Cross Valley Contractors and any additional pumping capacity 

315 made available by SWP for Cross Valley Contractors’ purposes shall be addressed in the 

316 Operations Manual. Water Delivered to the Contractor in accordance with this subdivision shall 
Contract No. 14-06-200-8293A-LTR1 

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317 be scheduled, and paid for pursuant to the provisions of Articles 4 and 7 of this Contract, 

318 attached exhibits, and the Operations Manual (including any subsequent modifications thereto). 

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

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

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

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

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

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

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

326 water made available to the Contractor was 3,493 acre-feet. Nothing in subdivision (b) of this 

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

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

329 applicable legal requirements. 

330 (d) The Contractor or, if applicable, Subcontractor, shall make reasonable and 

331 beneficial use of all water furnished pursuant to this Contract. Groundwater recharge programs 

332 (direct, indirect or in lieu), groundwater banking programs, surface water storage programs, and 

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

334 conducted within the Contractor’s Service Area or, if applicable, Subcontractor’s Service Area, 

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

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

337 described in the Contractor’s or Subcontractor’s water conservation plan submitted pursuant to 

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

339 sufficient lawful uses exist in the Contractor’s Service Area or, if applicable, Subcontractor’s 
Contract No. 14-06-200-8293A-LTR1 

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340 Service Area, so that using a long-term average, the quantity of Delivered Water is demonstrated 

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

342 recharge programs, groundwater banking programs, surface water storage programs, and other 

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

344 conducted outside the Contractor’s Service Area or, if applicable, Subcontractor’s Service Area, 

345 may be permitted upon written approval of the Contracting Officer, which approval will be based 

346 upon environmental documentation, Project Water rights, and Project operational concerns. The 

347 Contracting Officer will address such concerns in regulations, policies, or guidelines. 

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

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

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

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

352 Contract, which evidences in excess of 29 years of diversions for irrigation and/or M&I purposes 

353 of the quantities of water provided in subdivision (a) of Article 3 of this Contract, will be 

354 considered in developing an appropriate baseline for the biological assessment(s) prepared 

355 pursuant to the ESA, and any other needed environmental review. Nothing herein shall be 

356 construed to prevent the Contractor from challenging or seeking judicial relief in a court of 

357 competent jurisdiction with respect to any biological opinion or other environmental 

358 documentation referred to in this Article. 

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

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

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

362 Total under Article 3 of this Contract during the Year without adversely impacting other Project 
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363 Contractors. At the request of the Contractor, the Contracting Officer will consult with the 

364 Contractor prior to making such a determination. If the Contracting Officer determines that 

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

366 the Contracting Officer will announce the availability of such water and shall so notify the 

367 Contractor as soon as practicable. The Contracting Officer will thereafter meet with the 

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

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

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

371 in accordance with applicable statutes, regulations, guidelines, and policies. If the Contracting 

372 Officer determines that there is an unusually large water supply not otherwise storable for Project 

373 purposes or infrequent and otherwise unmanaged flood flows of short duration from the Friant 

374 Division, then Friant Division Project Water may be made available to the Contractor as Section 

375 215 Water if the Contractor enters into a temporary contract, not to exceed one year, with the 

376 United States for the delivery of such water or, as otherwise provided for in Federal Reclamation 

377 law and associated regulations: Provided, That such water shall be first made available to the 

378 original 28 long-term Friant Division contractors. Water in addition to the quantities provided 

379 for in this Contract made available to the Contractor by the Contracting Officer shall be 

380 scheduled, conveyed and/or stored by DWR only to the extent that DWR has provided separate 

381 approval to do so. 

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

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

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

385 current Year a quantity of Project Water which may be made available by the United States to 
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386 the Contractor during the subsequent Year referred to as “preuse”. The Contracting Officer’s 

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

388 guidelines, and policies. 

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

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

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

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

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

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

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

396 contracts. 

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

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

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

400 conditions of such approval. 

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

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

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

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

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

406 Contractor’s position in such a proceeding. Provided further, That in such proceedings the 

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

408 Contract to use Project Water. 
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409 (k) Conveyance and/or storage of Project Water by DWR shall be subject to 

410 capacity available in State Facilities in excess of capacity determined by DWR in its sole 

411 discretion to be needed for all SWP operations. For purposes of determining the available 

412 capacity under this Contract, the deliveries of Project Water to the Contractor shall not be 

413 considered a “service to long-term SWP Contractors,” notwithstanding any arrangement the 

414 Contractor may have with a SWP Contractor. Conveyance and/or storage for the Contractor may 

415 be curtailed prior or subsequent to approval of the Contractor's schedule under Article 4 of this 

416 Contract, in the event DWR determines it will interfere with the delivery of water to SWP 

417 Contractors or other SWP operations necessary to meet long-term obligations of the SWP, 

418 including delivery of water to SWP storage or reregulation of stored water for delivery to SWP 

419 Contractors. 

420 (l) If in any Year after DWR and the Contracting Officer have approved a 

421 schedule or any revision thereof submitted in accordance within subdivision (a) and (b) of

422 Article 4 of this Contract, and if the Contracting Officer and/or DWR are unable to make water 

423 of suitable quality available in the quantities and at the times requested in the schedule and the 

424 Contractor does not elect to receive and does not receive such water at other times during such 

425 Year, then the Contractor shall be entitled to an adjustments for overpayment as provided in 

426 subdivision (c) of Article 7, subdivision (d) of Article 8, and Article 10 of this Contract. 

427 Notwithstanding any other provision of law, this shall be the Contractor’s sole remedy against 

428 the State of California, DWR, its officers, agents and employees for failure to deliver a quantity 

429 of water of suitable quality under this Contract for any reason. 
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430 TIME FOR DELIVERY OF WATER

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

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

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

434 Historic Average and will be updated monthly, and more frequently if necessary, based on 

435 then-current operational and hydrologic conditions and a new declaration with changes, if any, to 

436 the Water Made Available will be made. The Contracting Officer shall provide forecasts of 

437 Project operations and the basis of the estimate, with relevant supporting information, upon the 

438 written request of the Contractor. Concurrently with the declaration of the Water Made 

439 Available, the Contracting Officer shall provide the Contractor with the updated Recent Historic 

440 Average. The declaration of Project operations will be expressed in terms of both Water Made 

441 Available and the Recent Historic Average. 

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

443 Contractor, after approval of the receiving agency on behalf of the Contractor, shall submit to 

444 DWR and the Contracting Officer a written schedule, satisfactory to the Contracting Officer and 

445 consistent with the criteria specified in the Operations Manual. The written schedule shall show 

446 the monthly quantities of Project Water to be delivered by the United States to the Contractor 

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

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

449 the Year commencing on such March 1. 

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

451 of Project Water the Contractor intends to put to reasonable and beneficial use within the 
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452 Contractor’s Service Area or, if applicable, Subcontractor’s Service Area, or to sell, transfer or 

453 exchange pursuant to Article 9 of this Contract during any Year. 

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

455 Contract, the United States and DWR shall deliver Project Water to the Contractor in accordance 

456 with the initial schedule submitted by the Contractor pursuant to subdivision (b) of this Article, 

457 or any written revision(s), satisfactory to the Contracting Officer, thereto submitted within a 

458 reasonable time prior to the date(s) on which the requested change(s) is/are to be implemented. 

459 (e) Scheduling and delivery of Project Water to the Contractor shall be in 

460 accordance with detailed procedures set forth in the Operations Manual as it may be amended 

461 from time to time. 

462 POINT OF DIVERSION AND RESPONSIBILITY FOR DISTRIBUTION OF WATER

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

464 Contract shall be delivered to the Contractor at a point or points of delivery either on Project 

465 and/or State facilities or another location or locations mutually agreed to in writing by the 

466 Contracting Officer, DWR, and the Contractor. The parties acknowledge that Project Water to 

467 be furnished to the Contractor pursuant to this Contract shall be conveyed by DWR and 

468 delivered to the Contractor by direct delivery via the Cross Valley Canal and/or by exchange 

469 arrangements involving Arvin-Edison Water Storage District or others. The parties further 

470 acknowledge that such exchange arrangements are not transfers subject to Section 3405(a) of 

471 CVPIA. Notwithstanding Article 9 of this Contract, such exchange arrangements, other than the 

472 previously approved exchange arrangements with Arvin-Edison Water Storage District, shall be 

473 submitted to the Contracting Officer for approval in accordance with principles historically 

474 applied by the Contracting Officer in approving Cross Valley exchange arrangements. DWR 
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475 shall have no obligation to make such exchange arrangements or be responsible for water 

476 transported in facilities that are not a part of the SWP. 

477 (b) Omitted. 

478 (b2) When Project Water is made available by the Contracting Officer at 

479 Clifton Court Forebay, DWR shall provide to the Contractor, subject to the availability of 

480 capacity as determined by DWR, conveyance from the Delta and storage in DWR’s share of 

481 storage at San Luis Reservoir, if necessary, of such Project Water consistent with subdivision (k) 

482 of Article 3, the following provisions, and the Operations Manual; 

483 (1) The Contracting Officer shall deliver or cause to be delivered into 

484 the DWR's Clifton Court Forebay, or at points mutually agreed to by the parties in accordance 

485 with Article 5, Project Water in such quantities and of such quality as shall be sufficient to 

486 perform the Contracting Officer's and DWR's obligation to furnish water to the Contractor as set 

487 forth in this contract. Such deliveries into Clifton Court Forebay shall be made at such times and 

488 rates of flow as the Contracting Officer and DWR shall agree. 

489 (2) DWR, in accordance with an approved Project Water delivery 

490 schedule, shall convey the amount of water delivered into DWR's Clifton Court Forebay by the 

491 Contracting Officer directly: (i) to turnouts from the California Aqueduct from Reaches 3 

492 through 16A or to other points of diversion mutually agreed to in writing by DWR and the 

493 Contractor, or (ii) to DWR or federal share of storage in San Luis Reservoir for later release and 

494 delivery to the Contractor or (iii) to replace water delivered to the Contractor from DWR's share 

495 of San Luis Reservoir prior to DWR receiving Project Water from the Contracting Officer, to the 

496 extent DWR determines under subdivision (k) of Article 3 that capacity (and water in the event 

497 of an exchange) is available for such conveyance, storage, or exchange (if any). Such deliveries 
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498 of Project Water shall be required to be made pursuant to subdivision (k) of Article 3 and in a 

499 manner which will not increase the cost of or adversely affect SWP operations and the quantity 

500 or quality of water deliveries to SWP Contractors. 

501 (3) If DWR delivers water to the Contractor from DWR's share of 

502 storage in San Luis Reservoir prior to the Contracting Officer providing Project Water at DWR's 

503 Clifton Court Forebay, the United States shall return a like amount of water to DWR pursuant to 

504 the procedures set forth in the Operations Manual. 

505 (4) The total amount of Project Water delivered at Clifton Court 

506 Forebay to DWR by the Contracting Officer shall include water to compensate DWR for water 

507 conveyance and storage losses incurred in the delivery of Project Water to the Contractor. The 

508 amount of such conveyance and storage losses will be determined pursuant to procedures set 

509 forth in the Operations Manual. 

510 (5) Project Water received by DWR at Clifton Court Forebay for 

511 conveyance and/or storage for delivery to the Contractor will be commingled with waters of 

512 DWR which are pumped through facilities of the California Aqueduct and with other waters of 

513 both the United States and DWR in the joint use facilities of the San Luis Unit. 

514 (6) Priorities for use of DWR's share of storage at San Luis Reservoir 

515 for storage of Project Water shall be subject to subdivision (k) of Article 3 and all DWR 

516 obligations to the SWP operations and SWP Contractors and to the criteria specified in the 

517 Operations Manual. 

518 (7) Subject to the necessary arrangements, the Contracting Officer 

519 shall transmit or cause to be transmitted, by exchange or otherwise, such quantities of power as 

520 shall be required by DWR to pump through its Delta Pumping Plant and its share of Dos Amigos 
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521 Pumping Plant, the quantities of Project Water transported into Clifton Court Forebay pursuant 

522 to (1) of this subdivision. 

523 (8) DWR shall furnish the Contracting Officer with such information 

524 as the Contracting Officer and DWR agree is needed regarding the timing and quantities of 

525 power required by DWR to pump Project Water. Such information shall be exchanged between 

526 the Contracting Officer and DWR in accordance with provisions set forth in the Operations 

527 Manual. 

528 (9) The Contracting Officer and DWR may, under terms and 

529 conditions satisfactory to both, and in accordance with applicable law, exchange water and/or 

530 power necessary for delivery of Project Water to the Contractor under terms of this Contract. 

531 Such exchange shall be in accordance with the provisions set forth in the Operations Manual. 

532 (b3) To the extent that Friant Division Project Water exceeds Friant Division 

533 Contract demand and other Project purposes, as determined by the Contracting Officer, and if the 

534 Contractor so requests, the Contracting Officer, subject to subdivision (d) of Article 3 of this 

535 Contract, shall make Project Water provided for in subdivision (a) of Article 3 of this Contract 

536 available from such Friant Division supplies. 

537 (b4) Project Water may be provided by the Contracting Officer to the 

538 Contractor, at the Contractor's request and subject to the terms and conditions of this Contract, 

539 through Federal Delta diversion and conveyance facilities and/or stored in the Federal share of 

540 storage at San Luis Reservoir for reregulation for later delivery to the Contractor to the extent 

541 such diversion, conveyance and/or storage does not diminish the ability of the Project to deliver 

542 Project Water to users in the Delta Division, San Luis Unit and San Felipe Division service areas 

543 pursuant to existing contracts and assignments or any renewals thereof, to meet current 
Contract No. 14-06-200-8293A-LTR1 

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544 Reclamation commitments to Pajaro Valley Water Management Agency, or to meet other legal 

545 obligations of the Project including, but not limited to agreements related to the joint operation of 

546 the state and Federal projects. 

547 (c) The Contractor or, if applicable, Subcontractor, shall deliver Irrigation 

548 Water in accordance with any applicable land classification provisions of Federal Reclamation 

549 law and the associated regulations. The Contractor or, if applicable, Subcontractor, shall not 

550 deliver Project Water to land outside the Contractor’s Service Area or, if applicable, 

551 Subcontractor’s Service Area, unless approved in advance by the Contracting Officer. 

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

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

554 United States, DWR or the Operating Non-Federal Entity/Entities at the point or points of 

555 delivery established pursuant to subdivision (a) of this Article. Upon the request of either party 

556 to this Contract, the Contracting Officer or DWR shall investigate, or cause to be investigated by 

557 the appropriate Operating Non-Federal Entity, the accuracy of such measurements and shall take 

558 any necessary steps to adjust any errors appearing therein. For any period of time when accurate 

559 measurements have not been made, the Contracting Officer shall consult with the Contractor and 

560 the appropriate Operating Non-Federal Entity prior to making a final determination of the 

561 quantity delivered for that period of time. 

562 (e) Neither the Contracting Officer, nor DWR, nor any Operating 

563 Non-Federal Entity/Entities shall be responsible for the control, carriage, handling, use, disposal, 

564 or distribution of Water Delivered to the Contractor pursuant to this Contract beyond the delivery 

565 points specified in subdivision (a) of this Article. The Contractor shall indemnify the 

566 United States, DWR, and their officers, employees, agents, and assigns on account of damage or 
Contract No. 14-06-200-8293A-LTR1 

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567 claim of damage of any nature whatsoever for which there is legal responsibility, including 

568 property damage, personal injury, or death arising out of or connected with the control, carriage, 

569 handling, use, disposal, or distribution of such Water Delivered beyond such delivery points, 

570 except for any damage or claim arising out of: (i) acts or omissions of the Contracting Officer or 

571 any of his officers, employees, agents, or assigns, including the Operating Non-Federal 

572 Entity/Entities, with the intent of creating the situation resulting in any damage or claim; 

573 (ii) willful misconduct of the Contracting Officer, or any of his officers, employees, agents, or 

574 assigns, including the Operating Non-Federal Entity/Entities; (iii) negligence of the Contracting 

575 Officer, DWR, or any of their officers, employees, agents, or assigns including the Operating 

576 Non-Federal Entity/Entities; or (iv) damage or claims resulting from a malfunction of facilities 

577 owned and/or operated by the United States, DWR, or the Operating Non-Federal Entity/Entities; 

578 Provided, That the Contractor is not the Operating Non-Federal Entity that owned or operated 

579 the malfunctioning facility(ies) from which the damage claim arose. In the event any such claim 

580 or liability, referenced in this Article or otherwise arising from this Contract, is made against 

581 DWR, its officers or its employees, the Contractor agrees to defend, indemnify and hold each of 

582 them harmless from such claim to the extent such claim does not arise from an error or omission 

583 of DWR related to the carriage and control of Project Water made available to the Contractor by 

584 the Contracting Officer. 

585 MEASUREMENT OF WATER WITHIN THE CONTRACTOR’S SERVICE AREA

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

587 Contracting Officer. The Contractor shall ensure that all surface water delivered for irrigation 

588 purposes within the Contractor’s Service Area or, if applicable, Subcontractor’s Service Area, is 

589 measured at each agricultural turnout and such water delivered for M&I purposes is measured at 
Contract No. 14-06-200-8293A-LTR1 

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590 each M&I service connection. The water measuring devices or water measuring methods of 

591 comparable effectiveness must be acceptable to the Contracting Officer. The Contractor shall be 

592 responsible for installing, operating, and maintaining and repairing all such measuring devices 

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

594 Contractor shall use the information obtained from such water measuring devices or water 

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

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

597 customer class as defined in the Contractor’s or, if applicable, Subcontractor’s, water 

598 conservation plan provided for in Article 26 of this Contract. Nothing herein contained, however, 

599 shall preclude the Contractor from establishing and collecting any charges, assessments, or other 

600 revenues authorized by California law. The Contractor shall include a summary of all its annual 

601 surface water deliveries in the annual report described in subdivision (c) of Article 26. 

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

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

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

605 to implement subdivision (a) of this Article and identifying the agricultural turnouts and the M&I 

606 service connections or alternative measurement programs approved by the Contracting Officer, 

607 at which such measurement devices or water measuring methods are being used, and, if 

608 applicable, identifying the locations at which such devices and/or methods are not yet being used 

609 including a time schedule for implementation at such locations. The Contracting Officer shall 

610 advise the Contractor in writing within 60 days as to the adequacy of, and necessary 

611 modifications, if any, of the measuring devices or water measuring methods identified in the 

612 Contractor’s report and if the Contracting Officer does not respond in such time, they shall be 
Contract No. 14-06-200-8293A-LTR1 

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613 deemed adequate. If the Contracting Officer notifies the Contractor that the measuring devices 

614 or methods are inadequate, the parties shall within 60 days following the Contracting Officer’s 

615 response, negotiate in good faith the earliest practicable date by which the Contractor shall 

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

617 to ensure compliance with subdivision (a) of this Article. 

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

619 Service Area or, if applicable, Subcontractor’s Service Area, after the effective date of this 

620 Contract shall also comply with the measurement provisions described in subdivision (a) of this 

621 Article. 

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

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

624 within the Contractor’s Service Area or, if applicable, Subcontractor’s Service Area, during the 

625 previous Year. 

626 (e) The Contractor shall inform the Contracting Officer, DWR, and the 

Operating Non-Federal Entity/Entities on or before the 20th 627 calendar day of each month of the 

628 quantity of Irrigation and M&I Water taken during the preceding month. 

629 RATES AND METHOD OF PAYMENT FOR WATER 

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

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

632 accordance with: (i) the Secretary’s ratesetting policy for Irrigation Water adopted in 1988 and 

633 the Secretary’s then-existing ratesetting policy for M&I Water. Such ratesetting policies shall be 

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

635 (ii) applicable Federal Reclamation law and associated rules and regulations, or policies; and 
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636 (iii) other applicable provisions of this Contract. Payments shall be made by cash transaction, 

637 electronic funds transfer, or any other mechanism as may be agreed to in writing by the 

638 Contractor and the Contracting Officer. The Rates, Charges, and Tiered Pricing Component 

639 applicable to the Contractor upon execution of this Contract are set forth in Exhibit “B”, as may 

640 be revised annually. 

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

642 and Tiered Pricing Component as follows: 

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

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

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

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

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

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

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

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

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

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

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

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

655 comment on such computations and cost allocations. By December 31 of each Calendar Year, 

656 the Contracting Officer shall provide the Contractor with the final Rates and Tiered Pricing 

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

 
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658 (c) Except as otherwise provided in the Operations Manual, at the time the 

659 Contractor submits the initial schedule for the delivery of Project Water for each Year pursuant 

660 to subdivision (b) of Article 4 of this Contract, the Contractor shall make an advance payment to 

661 the United States equal to the total amount payable pursuant to the applicable Rate(s) set under 

662 subdivision (a) of this Article, for the Project Water scheduled to be delivered pursuant to this 

663 Contract during the first two calendar months of the Year. Before the end of the first month and 

664 before the end of each calendar month thereafter, the Contractor shall make an advance payment 

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

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

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

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

669 any revised schedule submitted by the Contractor pursuant to Article 4 of this Contract which 

670 increases the amount of Water Delivered pursuant to this Contract during any month shall be 

671 accompanied with appropriate advance payment, at the Rates then in effect, to assure that Project 

672 Water is not delivered to the Contractor in advance of such payment. In any month in which the 

673 quantity of Water Delivered to the Contractor pursuant to this Contract equals the quantity of 

674 Water Scheduled and paid for by the Contractor, no additional Project Water shall be delivered 

675 to the Contractor unless and until an advance payment at the Rates then in effect for such 

676 additional Project Water is made. Final adjustment between the advance payments for the Water 

677 Scheduled and payments for the quantities of Water Delivered during each Year pursuant to this 

678 Contract shall be made as soon as practicable but no later than April 30th of the following Year, 

679 or 60 days after the delivery of Project Water carried over under subdivision (g) of Article 3 of 

680 this Contract if such water is not delivered by the last day of February. 
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681 (d) The Contractor shall also make a payment in addition to the Rate(s) in 

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

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

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

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

686 consistent with the quantities of Irrigation Water and M&I Water Delivered as shown in the 

687 water delivery report for the subject month prepared by the Operating Non-Federal 

688 Entity/Entities or, if there is no Operating Non-Federal Entity, by the Contracting Officer. The 

689 water delivery report shall be deemed a bill for the payment of Charges and the applicable Tiered 

690 Pricing Component for Water Delivered. Adjustment for overpayment or underpayment of 

691 Charges shall be made through the adjustment of payments due to the United States for Charges 

692 for the next month. Any amount to be paid for past due payment of Charges and the Tiered 

693 Pricing Component shall be computed pursuant to Article 20 of this Contract. 

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

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

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

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

698 Contract shall be no more than the otherwise applicable Rate for Irrigation Water or M&I Water 

699 under subdivision (a) of this Article. 

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

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

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

703 the delivery of Project Water or the delivery of non-project water through Project facilities shall 
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704 be allocated and applied in accordance with Federal Reclamation law and the associated rules or 

705 regulations, and the then-current Project ratesetting policies for M&I Water or Irrigation Water. 

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

707 administration of the financial terms and conditions of its long-term contracts, in accordance 

708 with applicable Federal standards, so as to reflect the application of Project costs and revenues. 

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

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

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

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

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

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

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

716 policies, and procedures used for establishing Rates, Charges, and Tiered Pricing Components, 

717 and/or for making and allocating payments, other than those set forth in this Article may be in 

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

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

720 this Contract is in effect without amending this Contract. 

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

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

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

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

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

726 Contract Total, shall equal one-half of the difference between the Rate established under 
Contract No. 14-06-200-8293A-LTR1 

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727 subdivision (a) of this Article and the Irrigation Full Cost Water Rate or M&I Full Cost Water 

728 Rate, whichever is applicable. The Tiered Pricing Component for the amount of Water 

729 Delivered which exceeds 90 percent of the Contract Total shall equal the difference between 

730 (i) the Rate established under subdivision (a) of this Article and (ii) the Irrigation Full Cost 

731 Water Rate or M&I Full Cost Water Rate, whichever is applicable. For all Water Delivered 

732 pursuant to subdivision (a) of Article 3 of this Contract which is in excess of 80 percent of the 

733 Contract Total, this increment shall be deemed to be divided between Irrigation Water and M&I 

734 Water in the same proportion as actual deliveries of each bear to the cumulative total Water 

735 Delivered. 

736 (2) Subject to the Contracting Officer’s written approval, the 

737 Contractor may request and receive an exemption from such Tiered Pricing Components for 

738 Project Water delivered to produce a crop which the Contracting Officer determines will provide 

739 significant and quantifiable habitat values for waterfowl in fields where the water is used and the 

740 crops are produced; Provided, That the exemption from the Tiered Pricing Component for 

741 Irrigation Water shall apply only if such habitat values can be assured consistent with the 

742 purposes of the CVPIA through binding agreements executed with or approved by the 

743 Contracting Officer prior to use of such water. 

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

745 Component pursuant to this Article, Water Delivered shall include Project Water that the 

746 Contractor transfers to others but shall not include Project Water transferred to the Contractor, 

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

748 subdivision (f) of Article 3 of this Contract. 
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749 (k) For the term of this Contract, Rates under the respective ratesetting 

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

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

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

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

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

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

756 impact of the proposed change. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

775 term of the Existing Contract and any preceding interim renewal contracts, if applicable; 

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

777 in the Rates; (4) the application by the United States of payments made by the Contractor under 

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

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

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

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

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

783 (o) The Contractor and the Contracting Officer concur that, as of the effective 

784 date of this Contract, the Contractor has no non-interest-bearing O&M deficits and shall have no 

785 further liability therefor. 

786 RATES AND METHOD OF PAYMENT FOR CONVEYANCE

787 AND OTHER SERVICES BY DWR

788 8. (a) To the extent Project Water is conveyed through State Facilities, payment 

789 for conveyance of water through the State Facilities shall be made by the Contractor directly to 

790 DWR. Exhibit “C” sets forth the charges and interest rates applicable at the time this long-term 

791 renewal contract is executed. DWR shall invoice the Contractor monthly for all conveyance 

792 charges owing for the previous month. Payment by the Contractor to DWR shall be due 30 days 

793 after the date of the invoice. Any payment not received within 30 days after the date of the 

794 invoice shall be considered delinquent. Delinquent charges shall be calculated in accordance 
Contract No. 14-06-200-8293A-LTR1 

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795 with Exhibit “C” of this Contract; Provided, That no interest shall be charged to or be paid by the 

796 Contractor unless such delinquency continues for more than 30 days in total. 

797 (b) Omitted. 

798 (c) Conveyance charges for the Contractor shall be determined by DWR on 

799 the same basis it uses to determine conveyance charges for use of SWP facilities by entities that 

800 are not SWP contractors. The method for determining this charge is described in DWR’s annual 

801 Bulletin 132. The charge for conveyance of water under this Contract shall be set forth in 

802 Exhibit “C” of this Contract and revised annually. 

803 (1) In accordance with subdivision (c) of this Article, when DWR 

804 provides conveyance directly from the Delta or from the Federal share of storage at San Luis 

805 Reservoir, the unit conveyance charge shall equal at a minimum the sum of the following, as 

806 determined by DWR: (i) The equivalent unit transportation capital and Minimum OMP&R Costs 

807 for those reaches of the California Aqueduct utilized for the delivery; (ii) The portion of the 

808 Delta Water Rate for Reaches 1, 2A, 2B, and 3 of the California Aqueduct; (iii) The replacement 

809 component of the Transportation Variable OM&R Costs for the Harvey O. Banks Delta Pumping 

810 Plant and DWR's share of the Dos Amigos Pumping Plant; (iv) A charge to offset direct fish 

811 losses associated with pumping at the Banks Pumping Plant, pursuant to the December 30, 1986, 

812 agreement between the California Department of Fish and Game and DWR; and (v) The 

813 incremental costs, if any, caused by the conveyance and delivery of Project Water to the 

814 Contractor which, unless included in the increased charges to the Contractor, would result in 

815 increased charges to the SWP Contractors or increased costs to DWR. 

816 (2) When DWR provides conveyance from the State’s share of storage 

817 in San Luis Reservoir, the unit charge shall equal the sum of the following as determined by 
Contract No. 14-06-200-8293A-LTR1 

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818 DWR: (i) The San Luis Facilities portion of the Delta Water Rate; (ii) The net unit energy cost 

819 to replace water in San Luis Reservoir; and (iii) The sum of all unit charges provided under 

820 subdivision (c)(1) of this Article. 

821 (d) Should DWR deliver Project Water to San Luis Reservoir on behalf of the 

822 Contractor and it is later determined by DWR that capacity to store such Project Water in DWR's 

823 share of San Luis Reservoir is no longer available because of need for such storage to meet SWP 

824 operations and obligations to SWP Contractors and the Contractor cannot take delivery of such 

825 Project Water, DWR shall relieve the Contractor of its obligations to pay DWR for all such 

826 Project Water so transported, stored, and no longer available to the Contractor. DWR shall 

827 reimburse the Contractor for payments which have previously been made to DWR for any such 

828 conveyed and stored supply, less the administrative charge described in subdivision (f) of this 

829 Article. 

830 (e) If the Contractor is unable, fails or refuses to accept delivery of Project 

831 Water made available by DWR in accordance with this Contract, such inability, failure or refusal 

832 shall not relieve the Contractor of its obligation to pay DWR all associated costs. 

833 (f) The Contractor shall pay DWR a monthly administrative charge specified 

834 in Exhibit “C” of this Contract for each month in which DWR conveys Project Water to the 

835 Contractor and for each month in which DWR invoices the Contractor for delinquent charges. 

836 SALES, TRANSFERS, OR EXCHANGES OF WATER

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

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

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

840 and applicable guidelines or regulations then in effect. No sale, transfer, or exchange of Project 
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841 Water under this Contract may take place without the prior written approval of the Contracting 

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

843 exchanges shall be approved absent all appropriate environmental documentation including but 

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

845 documentation should include, as appropriate, an analysis of groundwater impacts and economic 

846 and social effects, including environmental justice, of the proposed water transfers on both the 

847 transferor and transferee. No sale, transfer or exchange of the right to Project Water under this 

848 Contract may take place without the prior written approval of the Contracting Officer and of 

849 DWR, if State Facilities are used to convey such water. 

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

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

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

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

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

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

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

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

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

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

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

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

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

863 quantity of Project Water historically transferred within the same geographical area. 
Contract No. 14-06-200-8293A-LTR1 

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

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

866 years, for M&I use, groundwater recharge, groundwater banking, similar groundwater activities, 

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

868 delivered to established cropland, wildlife refuges, groundwater basins or M&I use; (ii) occur 

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

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

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

872 Interior; and (v) comply with all applicable Federal, State, and local or tribal laws and 

873 requirements imposed for protection of the environment and Indian Trust Assets, as defined 

874 under Federal law. 

875 APPLICATION OF PAYMENTS AND ADJUSTMENTS 

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

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

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

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

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

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

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

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

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

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

886 Contractor that it has finalized the accounts for the Year in which the overpayment was made. 
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887 (b) All advances for miscellaneous costs incurred for work requested by the 

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

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

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

891 advances, the Contractor will be billed for the additional costs pursuant to Article 25. 

892 (c) In the event that the Contractor contests the accuracy of any statement 

893 submitted to it by DWR pursuant to this Contract it shall give DWR notice thereof at least ten 

894 days prior to the day upon which payment of the stated amount is due. To the extent that DWR 

895 finds that the Contractor's contentions regarding the statement are correct, it shall revise the 

896 statement accordingly, and the Contractor shall make payment of the revised amounts on or 

897 before the due date. To the extent that DWR does not find the Contractor's contentions to be 

898 correct, or where time is not available for review of such contentions for correctness prior to due 

899 date, the Contractor shall make payment of the stated amounts on or before the due date, but may 

900 make the contested part of such payment under protest and seek an adjustment as described in 

901 subdivision (d) of this Article. 

902 (d) If in any year, by reason of errors in computation or other causes, there is 

903 an overpayment or underpayment to DWR by the Contractor of its charges provided for herein, 

904 the amount of such overpayment or underpayment shall be credited or debited, as the case may 

905 be, to the Contractor's account for the next succeeding Year and DWR shall notify the Contractor 

906 thereof in writing. 

907 TEMPORARY REDUCTIONS-RETURN FLOWS

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

909 State Facilities and the requirements of Federal law; (ii) the authorized purposes and priorities of 
Contract No. 14-06-200-8293A-LTR1 

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910 the State Facilities and State laws and policies governing the SWP; (iii) the obligations of the 

911 United States and DWR under existing contracts, or renewals thereof, providing for water 

912 deliveries from the Project and State Facilities; and (iv) the terms and conditions of this Contract; 

913 the Contracting Officer and DWR shall make all reasonable efforts to optimize Project Water 

914 deliveries to the Contractor as provided in this Contract. 

915 (b) The Contracting Officer, DWR, or Operating Non-Federal Entity/Entities 

916 may temporarily discontinue or reduce the quantity of Water Delivered to the Contractor as 

917 herein provided for the purposes of investigation, inspection, maintenance, repair, or replacement 

918 of any of the Project or State Facilities or any part thereof necessary for the delivery of Project 

919 Water to the Contractor, but so far as feasible the Contracting Officer, DWR, or Operating 

920 Non-Federal Entity/Entities will give the Contractor due notice in advance of such temporary 

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

922 Provided, That the United States and DWR shall use its best efforts to avoid any discontinuance 

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

924 and if requested by the Contractor, the United States and DWR will, if possible, deliver the 

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

926 discontinuance or reduction. 

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

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

929 beyond the Contractor’s Service Area or, if applicable, Subcontractor’s Service Area; Provided, 

930 That this shall not be construed as claiming for the United States any right to seepage or return 

931 flow being put to reasonable and beneficial use pursuant to this Contract within the Contractor’s 
Contract No. 14-06-200-8293A-LTR1 

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932 Service Area or, if applicable, Subcontractor’s Service Area, by the Contractor or those claiming 

933 by, through, or under the Contractor. 

CONSTRAINTS ON THE AVAILABILITY OF WATER

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

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

936 available to the Contractor pursuant to this Contract. In the event the Contracting Officer 

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

938 Contractor of said determination as soon as practicable. 

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

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

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

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

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

944 (c) In any Year in which there may occur a shortage for any of the reasons 

945 specified in subdivision (b) of this Article, the Contracting Officer shall apportion the available 

946 Project Water supply among the Contractors and others entitles, under existing contracts and 

947 future contracts (to the extent such future contracts are permitted under subsections (a) and (b) of 

948 Section 3404 of the CVPIA) and renewals thereof, to receive Project Water consistent with the 

949 contractual obligations of the United States. 

950 (d) DWR shall make all reasonable efforts consistent with sound fiscal 

951 policies, and proper operating procedures to maintain the necessary facilities and to deliver 

952 Project Water to the Contractor in accordance with the provisions of this Contract in such a 

953 manner and at such times as such Project Water is scheduled by the Contractor; Provided, That 
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954 such Project Water has been furnished to DWR by the Contracting Officer; and, Provided, 

955 further, That in no event shall any liability accrue against DWR or any of its officers, agents or 

956 employees for damage, direct or indirect for failure to deliver Project Water to the Contractor on 

957 account of errors in operation, drought, or any other cause beyond the control of DWR. 

958 Inasmuch as DWR is providing only conveyance and storage services under this Contract, it 

959 bears no responsibility for the availability of Project Water for such conveyance. 

960 (e) If any of the parties to this Contract are precluded in whole or in part from 

961 delivering, conveying or receiving Project Water as a result of uncontrollable forces, all parties 

962 shall be relieved from the obligation to the extent they are reasonably unable to complete the 

963 obligation due to the uncontrollable force. Uncontrollable force shall include, but is not limited 

964 to, earthquakes, fires, tornados, floods and other natural disasters. Each party shall be 

965 responsible for payment of any costs incurred on its behalf by the other party (ies) before the 

966 occurrence of the uncontrollable force. 

967 UNAVOIDABLE GROUNDWATER PERCOLATION

968 13. To the extent applicable, the Contractor shall not be deemed to have delivered 

969 Irrigation Water to Excess Lands or Ineligible Lands within the meaning of this Contract if such 

970 lands are irrigated with groundwater that reaches the underground strata as an unavoidable result 

971 of the delivery of Irrigation Water by the Contractor to Eligible Lands. 

972 RULES AND REGULATIONS

973 14. The parties agree that the delivery of Irrigation Water or use of Federal facilities 

974 pursuant to this Contract is subject to Federal Reclamation law, including but not limited to, the 

975 Reclamation Reform Act of 1982 (43 U.S.C.390aa et seq.), as amended and supplemented, and 

976 the rules and regulations promulgated by the Secretary of the Interior under Federal Reclamation 

977 law. 

 
Contract No. 14-06-200-8293A-LTR1 

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978 WATER AND AIR POLLUTION CONTROL

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

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

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

982 authorities. 

983 QUALITY OF WATER

984 16. (a) Project and State Facilities used to deliver Project Water to the Contractor 

985 pursuant to this Contract shall be operated and maintained to enable the United States and DWR 

986 to deliver Project Water to the Contractor in accordance with the water quality standards 

987 specified in subsection 2(b) of the Act of August 26, 1937 (50 Stat. 850), as added by Section 

988 101 of the Act of October 27, 1986 (100 Stat. 3050) or other existing Federal laws. The 

989 United States and DWR are under no obligation to construct or furnish water treatment facilities 

990 to maintain or to improve the quality of Water Delivered to the Contractor pursuant to this 

991 Contract. The United States and DWR do not warrant the quality of Water Delivered to the 

992 Contractor pursuant to this Contract. 

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

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

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

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

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

998 or Contractor facilities or Project Water provided by the Contractor within the Contractor’s 

999 Service Area or, if applicable, Subcontractor’s Service Area. 

1000 WATER ACQUIRED BY THE CONTRACTOR

1001 OTHER THAN FROM THE UNITED STATES

1002 17. (a) Water or water rights now owned or hereafter acquired by the Contractor 

1003 or, if applicable, Subcontractor, other than from the United States and Irrigation Water furnished 
Contract No. 14-06-200-8293A-LTR1 

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1004 pursuant to the terms of this Contract may be simultaneously transported through the same 

1005 distribution facilities of the Contractor or, if applicable, Subcontractor, subject to the following: 

1006 (i) if the facilities utilized for commingling Irrigation Water and non-project water were 

1007 constructed without funds made available pursuant to Federal Reclamation law, the provisions of 

1008 Federal Reclamation law will be applicable only to the Landholders of lands which receive 

1009 Irrigation Water; (ii) the eligibility of land to receive Irrigation Water must be established 

1010 through the certification requirements as specified in the Acreage Limitation Rules and 

1011 Regulations (43 CFR Part 426); (iii) the water requirements of Eligible Lands within the 

1012 Contractor’s Service Area or, if applicable, Subcontractor’s Service Area, can be established and 

1013 the quantity of Irrigation Water to be utilized is less than or equal to the quantity necessary to 

1014 irrigate such Eligible Lands; and (iv) if the facilities utilized for commingling Irrigation Water 

1015 and non-Project water are/were constructed with funds made available pursuant to Federal 

1016 Reclamation law, the non-Project water will be subject to the acreage limitation provisions of 

1017 Federal Reclamation law, unless the Contractor pays to the United States the incremental fee 

1018 described in 43 CFR 426.15. In determining the incremental fee, the Contracting Officer will 

1019 calculate annually the cost to the Federal Government, including interest of storing or delivering 

1020 non-Project water, which for purposes of this Contract shall be determined as follows: The 

1021 quotient shall be the unpaid distribution system costs divided by the total irrigable acreage within 

1022 the Contractor’s Service Area. The incremental fee per acre is the mathematical result of such 

1023 quotient times the interest rate determined using Section 202 (3) of the Act of October 12, 1982 

1024 (96 Stat. 1263). Such incremental fee will be charged to each acre of excess or full cost land 

1025 within the Contractor’s Service Area that receives non-Project water through Federally financed 

1026 or constructed facilities. The incremental fee calculation methodology will continue during the 
Contract No. 14-06-200-8293A-LTR1 

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1027 term of this Contract absent promulgation of a contrary Reclamation-wide rule, regulation, or 

1028 policy adopted after the Contractor has been afforded the opportunity to review and comment on 

1029 the proposed rule, regulation, or policy. If such rule, regulation, or policy is adopted it shall 

1030 supersede this provision. The Contractor and the Contracting Officer concur that, as of the 

1031 effective date of this Contract, the Contractor has a distribution system that was constructed 

1032 without the use of Federally financed funds. The use of this distribution system is not subject to 

1033 the provisions of this subdivision of this Article. The Contractor and the Contracting Officer 

1034 concur that, as of the effective date of this Contract, the Contractor has a distribution system that 

1035 was constructed without the use of Federally financed funds. The use of this distribution system 

1036 is not subject to the provision of this subdivision of this Article. A separate written agreement 

1037 with DWR must be obtained by the Contractor prior to conveyance of such water in State 

1038 Facilities. 

1039 (b) Omitted. 

1040 OPINIONS AND DETERMINATIONS

1041 18. (a) Where the terms of this Contract provide for actions to be based upon the 

1042 opinion or determination of any party to this Contract, said terms shall not be construed as 

1043 permitting such action to be predicated upon arbitrary, capricious, or unreasonable opinions or 

1044 determinations. The parties, notwithstanding any other provisions of this Contract, expressly 

1045 reserve the right to seek relief from and appropriate adjustment for any such arbitrary, capricious, 

1046 or unreasonable opinion or determination. Each opinion or determination by any party shall be 

1047 provided in a timely manner. Nothing in subdivision (a) of Article 18 of this Contract is 

1048 intended to or shall affect or alter the standard of judicial review applicable under Federal law to 
Contract No. 14-06-200-8293A-LTR1 

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1049 any opinion or determination implementing a specific provision of Federal law embodied in 

1050 statute or regulation. 

1051 (b) The Contracting Officer and DWR shall have the right to make 

1052 determinations necessary to administer this Contract that are consistent with the provisions of 

1053 this Contract, the laws of the United States and of the State of California, and the rules and 

1054 regulations promulgated by the Secretary of the Interior and DWR. Such determinations shall be 

1055 made in consultation with the Contractor to the extent reasonably practicable. 

1056 COORDINATION AND COOPERATION

1057 19. (a) In order to further their mutual goals and objectives, the Contracting 

1058 Officer and the Contractor shall communicate, coordinate, and cooperate with each other, and 

1059 with other affected Project Contractors, in order to improve the operation and management of the 

1060 Project. The communication, coordination, and cooperation regarding operations and 

1061 management shall include, but not be limited to, any action which will or may materially affect 

1062 the quantity or quality of Project Water supply, the allocation of Project Water supply, and 

1063 Project financial matters including, but not limited to, budget issues. The communication, 

1064 coordination, and cooperation provided for hereunder shall extend to all provisions of this 

1065 Contract. Each party shall retain exclusive decision making authority for all actions, opinions, 

1066 and determinations to be made by the respective party. 

1067 (b) Within 120 days following the effective date of this Contract, the 

1068 Contractor, other affected Project Contractors, and the Contracting Officer shall arrange to meet 

1069 with interested Project Contractors to develop a mutually agreeable, written Project-wide 

1070 process, which may be amended as necessary separate and apart from this Contract. The goal of 

1071 this process shall be to provide, to the extent practicable, the means of mutual communication 
Contract No. 14-06-200-8293A-LTR1 

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1072 and interaction regarding significant decisions concerning Project operation and management on 

1073 a real-time basis. 

1074 (c) In light of the factors referred to in subdivision (b) of Article 3 of this 

1075 Contract, it is the intent of the Secretary to improve water supply reliability. To carry out this 

1076 intent: 

1077 (1) The Contracting Officer will, at the request of the Contractor, 

1078 assist in the development of integrated resource management plans for the Contractor. Further, 

1079 the Contracting Officer will, as appropriate, seek authorizations for implementation of 

1080 partnerships to improve water supply, water quality, and reliability. 

1081 (2) The Secretary will, as appropriate, pursue program and project 

1082 implementation and authorization in coordination with Project Contractors to improve the water 

1083 supply, water quality, and reliability of the Project for all Project purposes. 

1084 (3) The Secretary will coordinate with Project Contractors and the 

1085 State of California to seek improved water resource management. 

1086 (4) The Secretary will coordinate actions of agencies within the 

1087 Department of the Interior that may impact the availability of water for Project purposes. 

1088 (5) The Contracting Officer shall periodically, but not less than 

1089 annually, hold division level meetings to discuss Project operations, division level water 

1090 management activities, and other issues as appropriate. 

1091 (d) Without limiting the contractual obligations of the Contracting Officer 

1092 under the other Article of this Contract, nothing in this Article shall be construed to limit or 

1093 constrain the Contracting Officer’s ability to communicate, coordinate, and cooperate with the 
Contract No. 14-06-200-8293A-LTR1 

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1094 Contractor or other interested stakeholders or to make decisions in a timely fashion as needed to 

1095 protect health, safety, or the physical integrity of structures or facilities. 

1096 CHARGES FOR DELINQUENT PAYMENTS

1097 20. (a) The Contractor shall be subject to interest, administrative and penalty 

1098 charges on delinquent installments or payments. When a payment is not received by the due 

1099 date, the Contractor shall pay an interest charge for each day the payment is delinquent beyond 

1100 the due date. When a payment becomes sixty (60) days delinquent, the Contractor shall pay an 

1101 administrative charge to cover additional costs of billing and processing the delinquent payment. 

1102 When a payment is delinquent ninety (90) days or more, the Contractor shall pay an additional 

1103 penalty charge of six (6%) percent per year for each day the payment is delinquent beyond the 

1104 due date. Further, the Contractor shall pay any fees incurred for debt collection services 

1105 associated with a delinquent payment. 

1106 (b) The interest charge rate shall be the greater of the rate prescribed quarterly 

1107 in the Federal Register by the Department of the Treasury for application to overdue payments, 

1108 or the interest rate of one-half of one (0.5%) percent per month prescribed by Section 6 of the 

1109 Reclamation Project Act of 1939 (Public Law 76-260). The interest charge rate shall be 

1110 determined as of the due date and remain fixed for the duration of the delinquent period. 

1111 (c) When a partial payment on a delinquent account is received, the amount 

1112 received shall be applied, first to the penalty, second to the administrative charges, third to the 

1113 accrued interest, and finally to the overdue payment. 

1114 EQUAL OPPORTUNITY

1115 21. During the performance of this Contract, the Contractor agrees as follows: 

1116 (a) The Contractor will not discriminate against any employee or applicant for 

1117 employment because of race, color, religion, sex, or national origin. The Contractor will take 

1118 affirmative action to ensure that applicants are employed, and that employees are treated during 

1119 employment, without regard to their race, color, religion, sex, or national origin. Such action 

1120 shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; 

1121 recruitment or recruitment advertising; layoff or termination, rates of payment or other forms of 

1122 compensation; and selection for training, including apprenticeship. The Contractor agrees to 

1123 post in conspicuous places, available to employees and applicants for employment, notices to be 

1124 provided by the Contracting Officer setting forth the provisions of this nondiscrimination clause. 

1125 (b) The Contractor will, in all solicitations or advertisements for employees 

1126 placed by or on behalf of the Contractor, state that all qualified applicants will receive 

1127 consideration for employment without discrimination because of race, color, religion, sex, or 

1128 national origin. 
Contract No. 14-06-200-8293A-LTR1 

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1129 (c) The Contractor will send to each labor union or representative of workers 

1130 with which it has a collective bargaining agreement or other contract or understanding, a notice, 

1131 to be provided by the Contracting Officer, advising the said labor union or workers' 

1132 representative of the Contractor's commitments under Section 202 of Executive Order 11246 of 

1133 September 24, 1965, and shall post copies of the notice in conspicuous places available to 

1134 employees and applicants for employment. 

1135 (d) The Contractor will comply with all provisions of Executive Order 

1136 No. 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders 

1137 of the Secretary of Labor. 

1138 (e) The Contractor will furnish all information and reports required by said 

1139 amended Executive Order and by the rules, regulations, and orders of the Secretary of Labor, or 

1140 pursuant thereto, and will permit access to its books, records, and accounts by the Contracting 

1141 Officer and the Secretary of Labor for purposes of investigation to ascertain compliance with 

1142 such rules, regulations, and orders. 

1143 (f) In the event of the Contractor's noncompliance with the nondiscrimination 

1144 clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be 

1145 canceled, terminated, or suspended, in whole or in part, and the Contractor may be declared 

1146 ineligible for further Government contracts in accordance with procedures authorized in said 

1147 amended Executive Order, and such other sanctions may be imposed and remedies invoked as 

1148 provided in said Executive Order, or by rule, regulation, or order of the Secretary of Labor, or as 

1149 otherwise provided by law. 

1150 (g) The Contractor will include the provisions of paragraphs (a) through (g) in 

1151 every subcontract or purchase order unless exempted by the rules, regulations, or orders of the 

1152 Secretary of Labor issued pursuant to Section 204 of said amended Executive Order, so that such 

1153 provisions will be binding upon each subcontractor or vendor. The Contractor will take such 

1154 action with respect to any subcontract or purchase order as may be directed by the Secretary of 

1155 Labor as a means of enforcing such provisions, including sanctions for noncompliance: 

1156 Provided, however, That in the event the Contractor becomes involved in, or is threatened with, 

1157 litigation with a subcontractor or vendor as a result of such direction, the Contractor may request 

1158 the United States to enter into such litigation to protect the interests of the United States. 

1159 GENERAL OBLIGATION--BENEFITS CONDITIONED UPON PAYMENT

1160 22. (a) The obligation of the Contractor to pay the United States and DWR as 

1161 provided in this Contract is a general obligation of the Contractor notwithstanding the manner in 

1162 which the obligation may be distributed among the Contractor's water users and notwithstanding 

1163 the default of individual water users in their obligations to the Contractor. 

1164 (b) The payment of charges becoming due hereunder is a condition precedent 

1165 to receiving benefits under this Contract. The United States and DWR shall not make water or 
Contract No. 14-06-200-8293A-LTR1 

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1166 conveyance facilities available to the Contractor through Project or State Facilities during any 

1167 period in which the Contractor may be in arrears in the advance payment of water rates due the 

1168 United States. The Contractor shall not furnish water made available pursuant to this Contract 

1169 for lands or parties which are in arrears in the advance payment of water rates levied or 

1170 established by the Contractor. 

1171 (c) With respect to subdivision (b) of this Article, the Contractor shall have no 

1172 obligation to require advance payment for water rates which it levies. Subdivision (b) of this 

1173 Article applies to periods when the Contractor is in arrears on payment of charges to DWR. 

1174 (d) If in any year the Contractor fails or is unable to raise sufficient funds by 

1175 other means, the governing body of the Contractor shall levy upon all property within the 

1176 Contractor's boundary not exempt from taxation, a special assessment sufficient to provide for all 

1177 payments due the United States and DWR under this Contract. 

1178 (e) Assessments levied by the governing body of the Contractor pursuant to 

1179 subdivision (b) of this Article shall be enforced and collected by all officers of the Contractor 

1180 charged with the duty of enforcing and collecting assessments levied by the Contractor. 

1181 (f) All money collected by way of special assessments under this Article for 

1182 payments due DWR shall be kept in a separate fund by the treasurer or other officer of the 

1183 Contractor charged with the safekeeping and disbursement of funds of the Contractor, and, upon 

1184 the written demand of DWR, the treasurer or other officer shall pay over to DWR all money in 

1185 his possession or control then due DWR under this contract, which money shall be applied by 

1186 DWR to the satisfaction of the amount due under this Contract. 

1187 (g) In the event of failure, neglect, or refusal of any officer of the Contractor 

1188 to levy any assessment necessary to provide payment by the Contractor under this Contract, to 
Contract No. 14-06-200-8293A-LTR1 

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1189 enforce or to collect the assessment, or to pay over to the United States or DWR any money then 

1190 due collected on the assessment, either or both DWR and the United States may take such action 

1191 in a court of competent jurisdiction as they deem necessary to compel the performance in their 

1192 proper sequence of all such duties. Action taken pursuant hereto shall not deprive DWR or 

1193 United States or limit any remedy provided by this Contract or by law for the recovery of money 

1194 due or which may become due under this Contract. 

1195 COMPLIANCE WITH CIVIL RIGHTS LAWS AND REGULATIONS

1196 23. (a) The Contractor, or if applicable, Subcontractor shall comply with Title VI 

1197 of the Civil Rights Act of 1964 (42 U.S.C. 2000d), Section 504 of the Rehabilitation Act of 1975 

1198 (P.L. 93-112, as amended), the Age Discrimination Act of 1975 (42 U.S.C. 6101, et seq.) and 

1199 any other applicable civil rights laws, as well as with their respective implementing regulations 

1200 and guidelines imposed by the U.S. Department of the Interior and/or Bureau of Reclamation. 

1201 (b) These statutes require that no person in the United States shall, on the 

1202 grounds of race, color, national origin, handicap, or age, be excluded from participation in, be 

1203 denied the benefits of, or be otherwise subjected to discrimination under any program or activity 

1204 receiving financial assistance from the Bureau of Reclamation. By executing this Contract, the 

1205 Contractor agrees to immediately take any measures necessary to implement this obligation, 

1206 including permitting officials of the United States to inspect premises, programs, and documents. 

1207 (c) The Contractor makes this agreement in consideration of and for the 

1208 purpose of obtaining any and all Federal grants, loans, contracts, property discounts, or other 

1209 Federal financial assistance extended after the date hereof to the Contractor by the Bureau of 

1210 Reclamation, including installment payments after such date on account of arrangements for 

1211 Federal financial assistance which were approved before such date. The Contractor recognizes 

1212 and agrees that such Federal assistance will be extended in reliance on the representations and 

1213 agreements made in this Article, and that the United States reserves the right to seek judicial 

1214 enforcement thereof. 

1215 PRIVACY ACT COMPLIANCE

1216 24. (a) The Contractor, or if applicable, Subcontractor shall comply with the 

1217 Privacy Act of 1974 (5 U.S.C. 552a) (the Act) and the Department of the Interior rules and 

1218 regulations under the Act (43 CFR 2.45 et seq.) in maintaining Landholder acreage certification 

1219 and reporting records, required to be submitted to the Contractor, or if applicable, Subcontractor 

1220 for compliance with Sections 206 and 228 of the Reclamation Reform Act of 1982 (96 Stat. 

1221 1266), and pursuant to 43 CFR 426.18. 
Contract No. 14-06-200-8293A-LTR1 

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1222 (b) With respect to the application and administration of the criminal penalty 

1223 provisions of the Act (5 U.S.C. 552a(i)), the Contractor, or if applicable, Subcontractor and their 

1224 employees responsible for maintaining the certification and reporting records referenced in (a) 

1225 above are considered to be employees of the Department of the Interior. See 5 U.S.C. 552a(m). 

1226 (c) The Contracting Officer or a designated representative shall provide the 

1227 Contractor, or if applicable, Subcontractor with current copies of the Interior Department Privacy 

1228 Act regulations and the Bureau of Reclamation Federal Register Privacy Act System of Records 

1229 Notice (Acreage Limitation--Interior, Reclamation-31) which govern the maintenance, 

1230 safeguarding, and disclosure of information contained in the Landholder's certification and 

1231 reporting records. 

1232 (d) The Contracting Officer shall designate a full-time employee of the 

1233 Bureau of Reclamation to be the System Manager who shall be responsible for making decisions 

1234 on denials pursuant to 43 CFR 2.61 and 2.64 amendment requests pursuant to 43 CFR 2.72. The 

1235 Contractor, or if applicable, Subcontractor is authorized to grant requests by individuals for 

1236 access to their own records. 

1237 (e) The Contractor, or if applicable, Subcontractor shall forward promptly to 

1238 the System Manager each proposed denial of access under 43 CFR 2.64; and each request for 

1239 amendment of records filed under 43 CFR 2.71; notify the requester accordingly of such referral; 

1240 and provide the System Manager with information and records necessary to prepare an 

1241 appropriate response to the requester. These requirements do not apply to individuals seeking 

1242 access to their own certification and reporting forms filed with the Contractor, or if applicable, 

1243 Subcontractor pursuant to 43 CFR 426.18, unless the requester elects to cite the Privacy Act as a 

1244 basis for the request. 

1245 CONTRACTOR TO PAY CERTAIN MISCELLANEOUS COSTS

1246 25. In addition to all other payments to be made by the Contractor pursuant to this 

1247 Contract, the Contractor shall pay to the United States, within 60 days after receipt of a bill and 

1248 detailed statement submitted by the Contracting Officer to the Contractor for such specific items 

1249 of direct cost incurred by the United States for work requested by the Contractor associated with 

1250 this Contract plus indirect costs in accordance with applicable Bureau of Reclamation policies 

1251 and procedures. All such amounts referred to in this Article shall not exceed the amount agreed 

1252 to in writing in advance by the Contractor. This Article shall not apply to costs for routine 

1253 contract administration. 
Contract No. 14-06-200-8293A-LTR1 

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1254 WATER CONSERVATION

1255 26. (a) Prior to the delivery of water provided from or conveyed through 

1256 Federally constructed or Federally financed facilities pursuant to this Contract, the Contractor or, 

1257 if applicable, Subcontractor, shall be implementing an effective water conservation and 

1258 efficiency program based on the Contractor’s or, if applicable, Subcontractor's, water 

1259 conservation plan that has been determined by the Contracting Officer to meet the conservation 

1260 and efficiency criteria for evaluating water conservation plans established under Federal law. 

1261 The water conservation and efficiency program shall contain definite water conservation 

1262 objectives, appropriate economically feasible water conservation measures, and time schedules 

1263 for meeting those objectives. Continued Project Water delivery pursuant to this Contract shall be 

1264 contingent upon the Contractor’s or, if applicable, Subcontractor’s, continued implementation of 

1265 such water conservation program. In the event the Contractor’s or, if applicable, Subcontractor's, 

1266 water conservation plan or any revised water conservation plan completed pursuant to 

1267 subdivision (d) of Article 26 of this Contract have not yet been determined by the Contracting 

1268 Officer to meet such criteria, due to circumstances which the Contracting Officer determines are 

1269 beyond the control of the Contractor or, if applicable, Subcontractor, water deliveries shall be 

1270 made under this Contract so long as the Contractor or, if applicable, Subcontractor, diligently 

1271 works with the Contracting Officer to obtain such determination at the earliest practicable date, 

1272 and thereafter the Contractor or, if applicable, Subcontractor, immediately begins implementing 

1273 its water conservation and efficiency program in accordance with the time schedules therein. 

1274 (b) Should the amount of M&I Water delivered pursuant to subdivision (a) of 

1275 Article 3 of this Contract equal or exceed 2,000 acre-feet per Year, the Contractor or, if 

1276 applicable, Subcontractor, shall implement the Best Management Practices identified by the time 
Contract No. 14-06-200-8293A-LTR1 

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1277 frames issued by the California Urban Water Conservation Council for such M&I Water unless 

1278 any such practice is determined by the Contracting Officer to be inappropriate for the Contractor 

1279 or, if applicable, Subcontractor. 

1280 (c) The Contractor or, if applicable, Subcontractor, shall submit to the 

1281 Contracting Officer a report on the status of its implementation of the water conservation plan on 

1282 the reporting dates specified in the then-existing conservation and efficiency criteria established 

1283 under Federal law. 

1284 (d) At five-year intervals, the Contractor or, if applicable, Subcontractor, shall 

1285 revise its water conservation plan to reflect the then-current conservation and efficiency criteria 

1286 for evaluating water conservation plans established under Federal law and submit such revised 

1287 water management plan to the Contracting Officer for review and evaluation. The Contracting 

1288 Officer will then determine if the water conservation plan meets Reclamation’s then-current 

1289 conservation and efficiency criteria for evaluating water conservation plans established under 

1290 Federal law. 

1291 (e) If the Contractor or, if applicable, Subcontractor, is engaged in direct 

1292 groundwater recharge, such activity shall be described in the Contractor’s or, if applicable, 

1293 Subcontractor’s, water conservation plan. 

1294 EXISTING OR ACQUIRED WATER OR WATER RIGHTS

1295 27. Except as specifically provided in Article 17 of this Contract, the provisions of 

1296 this Contract shall not be applicable to or affect non-Project water or water rights now owned or 

1297 hereafter acquired by the Contractor or, if applicable, Subcontractor, or any user of such water 

1298 within the Contractor’s Service Area or, if applicable, Subcontractor’s, Service Area. Any such 

1299 water shall not be considered Project Water under this Contract. In addition, this Contract shall 
Contract No. 14-06-200-8293A-LTR1 

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1300 not be construed as limiting or curtailing any rights which the Contractor or, if applicable, 

1301 Subcontractor, or any water user within the Contractor’s Service Area or, if applicable, 

1302 Subcontractor’s, Service Area acquires or has available under any other contract pursuant to 

1303 Federal Reclamation law. 

1304 OPERATION AND MAINTENANCE BY OPERATING NON-FEDERAL ENTITY

1305 28. (a) The O&M of a portion of the Project facilities which serve the Contractor, 

1306 and responsibility for funding a portion of the costs of such O&M, have been transferred to two 

1307 Operating Non-Federal Entities by separate agreements between the United States and the 

1308 Operating Non-Federal Entities. Those separate agreements shall not interfere with or affect the 

1309 rights or obligations of the Contractor or the United States hereunder. Specifically, portions of 

1310 the Delta-Mendota Canal, the San Luis Canal and other related facilities are operated by the 

1311 San Luis & Delta-Mendota Water Authority and the Friant-Kern Canal and related facilities are 

1312 operated by the Friant Water Authority. 

1313 (b) The Contractor shall pay directly to the applicable Operating Non-Federal 

1314 Entity, or to any successor approved by the Contracting Officer under the terms and conditions 

1315 of the separate agreements between the United States and the Operating Non-Federal Entities 

1316 described in subdivision (a) of this Article, all rates, charges, or assessments of any kind, 

1317 including any assessment for reserve funds, which the Operating Non-Federal Entity or such 

1318 successor determines, sets, or establishes for the O&M of the portion of the Project facilities 

1319 operated and maintained by the Operating Non-Federal Entity or such successor. Such direct 

1320 payments to the Operating Non-Federal Entity or such successor shall not relieve the Contractor 

1321 of its obligation to pay directly to the United States the Contractor’s share of the Project Rates, 

1322 Charges, and Tiered Pricing Component(s) except to the extent the Operating Non-Federal Entity 
Contract No. 14-06-200-8293A-LTR1 

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1323 collects payments on behalf of the United States in accordance with the separate agreement 

1324 identified in subdivision (a) of this Article. 

1325 (c) For so long as the O&M of any portion of the Project facilities serving the 

1326 Contractor is performed by the Operating Non-Federal Entity/Entities, or any successor thereto, 

1327 the Contracting Officer shall adjust those components of the Rates for Water Delivered under 

1328 this Contract representing the cost associated with the activity being performed by the Operating 

1329 Non-Federal Entity/Entities or their successors. 

1330 (d) In the event the O&M of the Project facilities operated and maintained by 

1331 the Operating Non-Federal Entity is re-assumed by the United States during the term of this 

1332 Contract, the Contracting Officer shall so notify the Contractor, in writing, and present to the 

1333 Contractor a revised Exhibit “B” which shall include the portion of the Rates to be paid by the 

1334 Contractor for Project Water under this Contract representing the O&M costs of the portion of 

1335 such Project facilities which have been re-assumed. The Contractor shall, thereafter, in the 

1336 absence of written notification from the Contracting Officer to the contrary, pay the Rates, 

1337 Charges, and Tiered Pricing Component specified in the revised Exhibit “B” directly to the 

1338 United States in compliance with Article 7 of this Contract. 

1339 CONTINGENT ON APPROPRIATION OR ALLOTMENT OF FUNDS

1340 29. The expenditure or advance of any money or the performance of any obligation of 

1341 the United States under this Contract shall be contingent upon appropriation or allotment of 

1342 funds. Absence of appropriation or allotment of funds shall not relieve the Contractor from any 

1343 obligations under this Contract. No liability shall accrue to the United States in case funds are 

1344 not appropriated or allotted. 

1345 BOOKS, RECORDS, AND REPORTS

1346 30. (a) The Contractor shall establish and maintain accounts and other books and 

1347 records pertaining to administration of the terms and conditions of this Contract, including: the 

1348 Contractor's financial transactions, water supply data, and Project land and right-of-way 

1349 agreements; the water users' land-use (crop census), land ownership, land-leasing and water use 
Contract No. 14-06-200-8293A-LTR1 

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1350 data; and other matters that the Contracting Officer may require. Reports thereon shall be 

1351 furnished to the Contracting Officer in such form and on such date or dates as the Contracting 

1352 Officer may require. Subject to applicable Federal laws and regulations, each party to this 

1353 Contract shall have the right during office hours to examine and make copies of the other party's 

1354 books and records relating to matters covered by this Contract. 

1355 (b) Notwithstanding the provisions of subdivision (a) of this Article, no 

1356 books, records, or other information shall be requested from the Contractor by the Contracting 

1357 Officer unless such books, records, or information are reasonably related to the administration or 

1358 performance of this Contract. Any such request shall allow the Contractor a reasonable period of 

1359 time within which to provide the requested books, records, or information. 

1360 (c) At such time as the Contractor provides information to the Contracting 

1361 Officer pursuant to subdivision (a) of this Article, a copy of such information shall be provided 

1362 to the Operating Non-Federal Entity/Entities. 

1363 ASSIGNMENT LIMITED--SUCCESSORS AND ASSIGNS OBLIGATED

1364 31. (a) The provisions of this Contract shall apply to and bind the successors and 

1365 assigns of the parties hereto, but no assignment or transfer of this Contract or any right or interest 

1366 therein shall be valid until approved in writing by the Contracting Officer. 

1367 (b) The assignment of any right or interest in this Contract by a party shall not 

1368 interfere with the rights or obligations of the other parties to this Contract absent the written 

1369 concurrence of said other parties. 

1370 (c) The Contracting Officer shall not unreasonably condition or withhold 

1371 approval of any proposed assignment. 

1372 (d) No assignment or transfer of any rights to use State Facilities authorized 

1373 by this Contract shall be valid without advance written approval by DWR. 
Contract No. 14-06-200-8293A-LTR1 

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1374 SEVERABILITY

1375 32. In the event that a person or entity who is neither (i) a party to a Project contract, 

1376 nor (ii) a person or entity that receives Project Water from a party to a Project contract, nor (iii) 

1377 an association or other form of organization whose primary function is to represent parties to 

1378 Project contracts, brings an action in a court of competent jurisdiction challenging the legality or 

1379 enforceability of a provision included in this Contract and said person, entity, association, or 

1380 organization obtains a final court decision holding that such provision is legally invalid or 

1381 unenforceable and the Contractor has not intervened in that lawsuit in support of the plaintiff(s), 

1382 the parties to this Contract shall use their best efforts to (i) within 30 days of the date of such 

1383 final court decision identify by mutual agreement the provisions in this Contract which must be 

1384 revised and (ii) within three months thereafter promptly agree on the appropriate revision(s). 

1385 The time periods specified above may be extended by mutual agreement of the parties. Pending 

1386 the completion of the actions designated above, to the extent it can do so without violating any 

1387 applicable provisions of law, the United States shall continue to make the quantities of Project 

1388 Water specified in this Contract available to the Contractor pursuant to the provisions of this 

1389 Contract which were not found to be legally invalid or unenforceable in the final court decision. 

1390 RESOLUTION OF DISPUTES

1391 33. Should any dispute arise concerning any provisions of this Contract, or the 

1392 parties’ rights and obligations thereunder, the parties shall meet and confer in an attempt to 

1393 resolve the dispute. Prior to the Contractor or, if applicable, Subcontractor, commencing any 

1394 legal action, or the Contracting Officer referring any matter to Department of Justice, the party 

1395 shall provide to the other party 30 days’ written notice of the intent to take such action; Provided, 

1396 That such notice shall not be required where a delay in commencing an action would prejudice 
Contract No. 14-06-200-8293A-LTR1 

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1397 the interests of the party that intends to file suit. During the 30-day notice period, the Contractor 

1398 or, if applicable, Subcontractor, and the Contracting Officer shall meet and confer in an attempt 

1399 to resolve the dispute. Except as specifically provided, nothing herein is intended to waive or 

1400 abridge any right or remedy that the Contractor or, if applicable, Subcontractor, or the 

1401 United States may have. 

1402 OFFICIALS NOT TO BENEFIT

1403 34. No Member of or Delegate to Congress, Resident Commissioner, or official of the 

1404 Contractor, or if applicable, Subcontractor shall benefit from this Contract other than as a water 

1405 user or landowner in the same manner as other water users or landowners. 

1406 CHANGES IN CONTRACTOR’S OR SUBCONTRACTOR’S SERVICE AREA

1407 35. (a) While this Contract is in effect, no change may be made in the 

1408 Contractor’s Service Area or, if applicable, Subcontractor’s, Service Area, by inclusion or 

1409 exclusion of lands, dissolution, consolidation, merger, or otherwise, except upon the Contracting 

1410 Officer's written consent. 

1411 (b) Within 30 days of receipt of a request for such a change, the Contracting 

1412 Officer will notify the Contractor or, if applicable, Subcontractor, of any additional information 

1413 required by the Contracting Officer for processing said request, and both parties will meet to 

1414 establish a mutually agreeable schedule for timely completion of the process. Such process will 

1415 analyze whether the proposed change is likely to: (i) result in the use of Project Water contrary 

1416 to the terms of this Contract; (ii) impair the ability of the Contractor or, if applicable, 

1417 Subcontractor, to pay for Project Water furnished under this Contract or to pay for any Federally1418 constructed facilities for which the Contractor or, if applicable, Subcontractor, is responsible; 

1419 and (iii) have an impact on any Project Water rights applications, permits, or licenses. In 

1420 addition, the Contracting Officer shall comply with NEPA and ESA. The Contractor or, if 

1421 applicable, Subcontractor, will be responsible for all costs incurred by the Contracting Officer in 

1422 this process, and such costs will be paid in accordance with Article 25 of this Contract. Upon 
Contract No. 14-06-200-8293A-LTR1 

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1423 approval by the Contracting Officer, the Contractor or, if applicable, the Subcontractor, shall 

1424 promptly give notice of any such change in Contractor’s Service Area or, if applicable, the 

1425 Subcontractor’s Service Area, to DWR. 

1426 FEDERAL LAWS

1427 36. By entering into this Contract, the Contractor does not waive its rights to contest 

1428 the validity or application in connection with the performance of the terms and conditions of this 

1429 Contract of any Federal law or regulation; Provided, That the Contractor agrees to comply with 

1430 the terms and conditions of this Contract unless and until relief from application of such Federal 

1431 law or regulation to the implementing provision of the Contract is granted by a court of 

1432 competent jurisdiction. 

1433 NOTICES

1434 37. Any notice, demand, or request authorized or required by this Contract shall be 

1435 deemed to have been given on behalf of the parties when mailed, postage prepaid; or delivered to 

1436 the Area Manager, South-Central California Area Office, 1243 “N” Street, Fresno, California 

1437 93721-1813; to the Chief, State Water Project Analysis Office, Department of Water Resources, 

1438 P. O. Box 942836, Sacramento, California 94236-0001; and to the Board of Supervisors of the 

1439 County of Tulare, P. O. Box 911, Visalia, California 93279. The designation of the addressee or 

1440 the address may be changed by notice given in the same manner as provided in this Article for 

1441 other notices. 

1442 CONFIRMATION OF CONTRACT

1443 38. The Contractor, after the execution of this Contract, shall promptly seek to secure 

1444 a decree of a court of competent jurisdiction of the State of California, confirming the execution 

1445 of this Contract. The Contractor shall furnish both the United States and DWR with a certified 

1446 copy of the final decree, the validation proceedings, and all pertinent supporting records of the 

1447 court approving and confirming this Contract, and decreeing and adjudging it to be lawful, valid, 

1448 and binding on the Contractor. 

1449 SUBCONTRACTS--SALE OF WATER

1450 39. The Contractor may enter into subcontracts with third parties for the wholesale 

1451 distribution to such third parties of Project Water furnished pursuant to this Contract within the 
Contract No. 14-06-200-8293A-LTR1 

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1452 Contractor's Service Area. Each such subcontract shall be subject to the obligations and 

1453 limitations imposed, and to the rights granted, by this Contract and shall so provide. The terms 

1454 and conditions of each subcontract, not previously approved, shall be approved by the 

1455 Contracting Officer prior to the execution of such subcontract. Approval shall be limited to 

1456 approval of the Subcontractor's Service Area and a determination that the subcontract is 

1457 consistent with the provisions of this Contract. Nothing contained herein or in any subcontract 

1458 shall be deemed in any way to release the Contractor from its primary liability to the 

1459 United States hereunder with respect to each and all of the obligations undertaken by the 

1460 Contractor in this Contract. 
Contract No. 14-06-200-8293A-LTR1 

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1461 IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the day 

1462 and year first above written. 

1463 THE UNITED STATES OF AMERICA 

1464 By: ________________________________ 

1465 Regional Director, Mid-Pacific Region 

1466 Bureau of Reclamation 

1467 Approved as to Legal Form and DEPARTMENT OF WATER RESOURCES 

1468 Sufficiency: OF THE STATE OF CALIFORNIA 

1469 By: ___________________________ By: ________________________________ 

1470 Chief Counsel, Director, 

1471 Department of Water Resources Department of Water Resources 

1472 (SEAL) COUNTY OF TULARE 

1473 By: ________________________________ 

1474 Chairman, Board of Supervisors 

1475 Attest: 

1476 By: _________________________ By: ___________________________________ 

1477 County Clerk County Counsel 

 

1478 (H:\pub 440\LTRC\Final Draft LTRC’s – Fresno, Tracy\10-19-04 County of Tulare Final Draft 

1479 LTRC with exhibits.doc) 
Contract No. 14-06-200-8293A-LTR1 

 

EXHIBIT A

 [Map or Description of Service Area] 
Contract No. 14-06-200-8293A-LTR1 

 

 EXHIBIT B

COUNTY OF TULARE

Water Rates and Charges

Note: Rates and Charges are 2004 rates. This exhibit will be updated prior to execution of the 

 contract to reflect the current Rates and Charges 1480 

2004 Rates Per Acre-Foot

 Banks Joint Point Pumping 

 Irrigation Water M&I Water

O&M AND COST-OF-SERVICE RATES: 

Capital Rates: 

 Cross Valley Conveyance (if applicable) $5.63 $9.86 

 

O&M Rates: 

 Water Marketing $7.59 $5.01 

 Storage $5.83 $6.38 

 Direct Pumping (Project Use Energy) $3.25 $3.25 

 Dos Amigos 4/ 2/ 

Deficit Rates: 

 Non-Interest Bearing 

 Interest Bearing $2.29 $36.15 

 

CFO/PFR Adj. Rate: ** $2.62 $0.00 

TOTAL COST-OF-SERVICE RATES: $27.20 $60.65 

FULL-COST RATES: 

Section 202(3) Rate is applicable to a Qualified 

recipient or to a Limited Recipient receiving 

irrigation water on or before October 1, 1981. $36.79 

 

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

Recipient that did not receive irrigation water on 

or before October 1, 1981. $39.32 

 

SURCHARGES UNDER P.L 102-575 

TO RESTORATION FUND* 

Restoration Payments [3407(d)(2)(A)] $7.82 $15.64 

** Rate represents the Chief Financial Officer (CFO) adjustment and Provision for 

replacement (PFR) credit for option 2 cost deferment to be distributed 

over a 5-year period beginning with 2003 water rates. 

2/ - Except for Folsom-South Canal Conveyance Costs, Conveyance and Conveyance 

Pumping Operation and Maintenance Costs were removed for ratesetting purposes and 

4/ - Conveyance and Conveyance Pumping operation and maintenance costs were removed for 

ratesetting purposes and are to be direct billed. 
Contract No. 14-06-200-8293A-LTR1