After Snow Mountain Water and Power sold the Potter Valley Project to Pacific Gas & Electric Company the original contract with Potter Valley Irrigation District was transferred. On March 30th, 1936 PVID and PG&E entered into an agreement that states in part, on page 1., "Whereas under and by virtue of Permits numbered 2954 and 3635 granted it by the Division of Water Resources, State Department of Public Works, Pacific has the right and is willing to sell and deliver to District at the tailrace of said power plant an aggregate of 19,000 acre feet of water annually; ". The Agreement goes on to state, on page 2. #3."Pacific will sell and deliver to District and District will purchase and accept from Pacific at a rate of flow not to exceed 50 cfs at said tailrace (a) during each summer period of the term hereof such quantity of water up to 16,660 acre feet as shall be required by District, and (b) during each winter period of the term hereof such quantity of water up to the difference between 19,000 acre feet and the quantity which District shall have purchased during the preceding summer period."