Article 2. Cooperation With County Water Districts of California Water Code >> Division 11. >> Part 6. >> Chapter 3. >> Article 2.

As used in this article "districts" means one or more irrigation districts together with one or more county water districts.

As used in this article "contract with the United States" means a contract made under the provisions of the Federal Reclamation Law for any or all of the following purposes:
  (a) Acquisition, extension, or operation of works for irrigation, drainage, flood control, or development of electric or other power.
  (b) A water supply.
  (c) Assumption as principal or guarantor of indebtedness to the United States.

As used in ths article "power rights" includes power possibilities, power resources, and power privileges.

Districts may contract with each other pursuant to this article only when both:
  (a) Each of the districts before or after contracting pursuant to this article makes a contract with the United States.
  (b) All of the contracting districts propose to divert or carry water for use in the districts by means of a single main canal or system of works.

Any contract between districts made before each of the districts has made a contract with the United States shall be effective when all of the districts have so contracted with the United States.

In any contract between districts they may contract to compromise and settle any controversies existing between them as to the extent or priority of their respective rights and claims to the use of water and agree upon the limitation and definition of the areas within them respectively upon which such water shall be beneficially used.

Districts may also contract that applications theretofore filed by either of them with the State Water Rights Board or its predecessor shall be amended to conform to the provisions of the contract between them and that permits and licenses be issued accordingly.

Districts may also contract to compromise and settle any controversies existing between them as to power rights upon the canal or other water system, and for these purposes any of the districts may demise to another of the districts all of the power rights which the demising district has or thereafter obtains.

The lease may be made for any term not exceeding 99 years and may vest in the lessee the operation, management, development, and control of the power rights and the use, sale, and control of power produced therefrom. The lease may provide for the payment of rentals and any other matters relevant to the leasing of the power rights as the districts may in their discretion deem advisable not in conflict with the Constitution of this State nor with the express terms of the statutes under which the districts are respectively organized and exist.

Districts may also contract that when the lease has been executed, the lessor may be required upon any terms agreed upon to procure for the lessee district contracts or applications for electric power signed by consumers in the lessor district and that the lessee district shall serve electric power in the lessor distict at rates and upon terms and conditions prescribed in the contract.

Districts may also contract that they shall cooperate to obtain permits and licenses to appropriate water for power purposes and to construct power facilities from the State Water Rights Board or any federal agency or both in the manner prescribed in the contract.

Districts may also contract for any other matters authorized by law.

Districts so contracting have full power to perform and observe the contracts in accordance with the tenor and spirit thereof.

Contracts made pursuant to this article shall be liberally construed to effectuate them according to their true intent.

The execution of a contract between districts may be authorized by resolution of their respective boards.

Any and all such contracts executed prior to September 13, 1941, by and between such districts and all acts of boards of directors and other officers of such districts leading up to and including the execution of such contract or contracts, are hereby legalized, ratified, confirmed and declared valid to all intents and purposes, and the power of such districts to execute, carry out, perform and observe such contracts and every provision thereof is hereby ratified, confirmed and declared valid and such contracts are hereby declared to be in all respects the legal and binding obligations of, against and in favor of each of such contracting districts.