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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />OQ0353 <br /> <br />of California's junior priority holders. <br /> <br />Response: Under this rule, only water that is unused by all entitlement holders in the <br />applicable State's priority system is eligible for storage by an authorized entity for use in an <br />interstate transaction. <br /> <br />Comment: One respondent noted that its contract with the Secretary allows it to request <br />Reclamation to approve an exchange, lease, or transfer ofits water entitlement. The respondent <br />further stated its intent to pursue interstate marketing opportunities and position its Colorado <br />River water supply as an unused apportionment which may be released annually for use in the <br />other Lower Division States under the Decree. <br /> <br />Response: The Department recognizes that the entitlement holder's contract allows it to <br />request approval: of an exchange, lease, or transfer and notes that any change in the place of use <br />or type of use of the entitlement is subject to the Secretary's approval. The development of <br />ICUA under a Storage and Interstate Release Agreement may involve the exchange, lease, or <br />transfer of Colorado River water pursuant to an individual entitlement holder's contract, Any <br />such exchange, lease, or transfer would be subject to Secretarial approval unless the entitlement <br />holder's contract specifies otherwise. Moreover, to participate under this rule as an authorized <br />entity in a Storing State, that entity ,must be expressly authorized under State law. <br /> <br />Comment: The rule should be modified to allow authorized entities in California and <br />Nevada to have equal access to store that portion of Arizona's Colorado River apportionment <br />that is not otherwise put to use by entitlement holders within Arizona. Also, authorized entities in <br />California and Nevada should have equal access to the quantity ofICUA that Arizona will make <br />available to consuming entities when those entities request it. <br /> <br />Response: The Department recognizes these concerns expressed by a State agency and a <br />water district but does not believe it is appropriate to establish an allocation method in this rule, <br />Storage and Interstate Release Agreements are voluntary interstate water transactions. The <br />Secretary will not require authorized entities of one State to enter into Storage and Interstate <br />Release Agreements with authorized entities in another State. The Department encourages each <br />storing entity to consider the needs of all consuming entities under prospective Storage and <br />Interstate Release Agreements. <br /> <br />Comment: Modify ~ 414.3(a) to allow a more general description of the entities by which <br />Colorado River water will be stored and the storage facilities in which it will be stored. <br /> <br />Response: The Department did not accept this recommendation. It is necessary to clearly <br />identify the actual entity that will store Colorado River water under the Storage and Interstate <br />Release Agreement and the facility where it will be stored so that a thorough review of the <br />impacts of the storage on environmental and trust resources can be performed. <br /> <br />21 <br />