Class B & Class C Contracts

Class B Contracts There are three types of Class B contracts:

  • Class B contracts
  • Section 131 contracts
  • Temporary Use permits 
Class B ContractsClass B contracts are the contracts Northern Water allotted to municipalities from 1938 to 1993.
Section 131 ContractsSection 131 contracts are essentially a continuously renewable 1-year contract. If a municipality pays its annual assessments, Northern Water will continue to deliver the water. If a municipality fails to pay, Northern Water will terminate the contract and the municipality has no further obligation.

Northern Water allows a municipality to approve its Section 131 contract by whatever means the municipality believes is necessary to ensure the contract is legally binding on the municipality, either by a municipal ordinance or a resolution.

Temporary Use PermitsAll Temporary Use permits accumulated by a municipality each year must be converted to Section 131 contracts by March 1 of the following year. Please see the Policy Regarding Conversion of Temporary Use Permits to Section 131 Contract (adopted: Jan. 10, 2003).

Class C Contracts Under a Class C contract an allottee agrees that any water Northern Water allots shall be for domestic, irrigation, multipurpose or industrial use within or through facilities or upon lands owned, operated or served by the Class C allottee, and located within Northern Water boundaries.

Class B & Class C Limits
Northern Water sets limits on how much water Class B and Class C allottees may acquire. Please see the Interim Guidelines on Limitations on Ownership of C-BT Allotment Contracts for Domestic or Municipal Purposes (adopted: Feb. 10, 1995).

Fixed Quota Program
In 1993 the Northern Water Board adopted a policy allowing allottees the option of a guaranteed 70 percent quota each year through the Fixed Quota Program. An allottee must apply and receive board approval to participate.

Once approved, a participating allottee must remain in the program for 10 years. A participant may renew a fixed quota. However, if not renewed after 10 years a fixed quota expires and the allotment contract reverts to a variable quota.

Please see:

Notice of Claim of LienTo file a Notice of Claim of Lien with Northern Water on a Class B or C allotment contract, this document is required: Notice of Claim of Lien or Security Interest in a Class B or C Allotment and Request for Notification of Action Regarding a Class B or C Allotment Contract.

For more Notice of Claim of Lien information please see the Rule Regarding Notice of Claim of Lien and Change or Removal of Allotment Contracts Issued by Northern Water (adopted: April 9, 2010).