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I I I I I I I I I I I I I I I I I I I D, Examples of Possible Interstate Transactions The following example will help to illustrate a potential transaction. Assume that an authorized entity in the State of California or Nevada (acting as a Consuming State) wants 50,000 acre-feet (at) of water stored on its behalf to develop storage credits for future use, The entity would enter into an interstate storage agreement with an authorized entity in the Storing State (for example, the State of Arizona) and obtain the approval of the Secretary, The Consuming State entity would pay the Storing State entity to divert and store the water off stream, The water to be stored would be unused Arizona entitlement or unused apportionment of the Consuming State that would otherwise have been left in the mainstream, or a combination of both, The Storing State entity would divert and store the 50,000 af of Colorado River water off stream in Arizona for the credit of the Consuming State entity, The water could be stored, for example, by actually putting it into the ground ( direct recharge), by storing it in an off stream surface reservoir, or by exchanging it for groundwater that otherwise would be withdrawn and consumed (indirect recharge). The water diverted and stored off stream in Arizona will be accounted for as being consumptively used in that same year in Arizona, in accordance with Article V of the Decree, The interstate agreement would identifY the type(s) and location(s) of storage facility(ies) utilized. The Consuming State entity would accrue credits in the amount of water stored. In the future when the Consuming State entity desires to use all or a portion of the storage credits accumulated from the storage of the 50,000 af, it would notifY the Storing State entity and the Secretary in advance. The storing entity in the State of Arizona would then intentionally create up to 50,000 afofunused apportionment by decreasing its consumptive use of Colorado River water in the requested quantity. The Secretary, through Reclamation, in accordance with the interstate storage agreement, would operate the Colorado River within its current and projected routine operations consistent with the provisions of the BCP A and the Decree and release and deliver up to 50,000 af of Arizona unused apportionment from the mainstream of the Colorado River for diversion by the Consuming State entity, as allowed in the Decree, The water delivered in satisfaction of storage credits will be accounted for as consumptive use of Arizona's unused apportionment in that same year in the Consuming State, in accordance with Article V of the Decree. E, Related Reclamation Actions Reclamation completed a Final Environmental Impact Statement (PElS) for "Water Allocations and Water Service Contracting for the Central Arizona Project (CAP)" in 1982, The FEIS analyzed the environmental consequences of the allocation of waters and of water service contracting for Arizona's remaining entitlement of Colorado River water to be delivered by the CAP, The FEIS cited Arizona's new 1980 Groundwater Management Act (ACT) as a related non-Reclamation action, The Act created four Active Management Areas (AMA) in specific basins that experienced extensive ground-water declines and established goals to control their water development and use. LC Region DEAl I 4 12/97