2007 California Water Code Article 4. Contracts Other Than With State Agencies

CA Codes (wat:11670-11671)

11670.  Any contract or lease made by the department with any
person, other than a state agency, providing for the furnishing by
the department of water, the use of water, water storage, electric
power, or other service for resale shall be subject to cancellation
by the department upon five years' notice, and such a contract or
lease shall be so canceled in whole or in part whenever the State or
any financially responsible state agency makes application for the
water, use of water, water storage, electric power, or other service,
or any part thereof, covered by the contract or lease and enters
into a contract or lease binding itself to take the water, use of
water, water storage, electric power, or other service, or any part
thereof, and pay for it at a rate or price at least equal to that
specified in the contract or lease to be canceled and for a period at
least equal to the unexpired portion of the term of such contract or
lease.


11671.  The department shall not cancel any contract or lease under
the next preceding section unless and until it first determines and
assures itself that notwithstanding the cancellation, it will receive
and be paid a total revenue or consideration at least equal to that
which would be received by it were the contract or lease not
canceled, and within the unexpired portion of the term of the
contract or lease.