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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 />OlHl333 <br /> <br />Response: This final rule does not apply to intrastate transactions. This final rule applies <br />only to interstate transactions. As explained in more detail below, the Department believes that <br />Storage and Interstate Release Agreements under this final rule can be implemented in a manner <br />that will provide opportunities for Tribes to benefit. <br /> <br />Comment: Several Tribes commented that they have been unable to fully benefit from <br />their water rights because of the Federal government's failure to provide the Tribes with the <br />necessary financial, technical, and political assistance to fully develop their water resources, <br /> <br />Response: The Department acknowledges this concern and recognizes that a number of <br />Tribes have been unable to use their entitlement due to the lack of distribution and delivery <br />systems. The Department is committed to making progress to help Tribes make better use of <br />their water rights. For example, a Central Arizona Project (CAP) distribution system has been <br />built for the Ale,Chin Tribe. A distribution system for the Fort McDowell Tribe is under <br />construction and the Department has entered into a repayment contract with the Gila River Indian <br />Community for construction of a CAP distribution system. Five of the ten Indian Tribes with <br />contracts for delivery of CAP water have utilized their statutory right to lease or transfer water. <br />More specifically, the Ale Chin, Fort McDowell, Tohono O'odham, Salt River, and Yavapai <br />Prescott Tribes have leased or transferred CAP water. <br /> <br />Comment: Indian Tribes should receive compensation for their unused or undeveloped <br />Tribal water resources because of the Federal government's failure to provide the Tribes with the <br />necessary assistance to fully develop their water resources. <br /> <br />Response: The issue of compensating the Tribes in connection with the development of <br />Tribal water rights is beyond the scope of this rule. <br /> <br />Comment: The Department should permit Tribal governments to market their Central <br />'Arizona Project allocations on the same basis as the State. Central Arizona Water Conservation <br />District's (CAWCD) non-Indian subcontractors have the capability to take direct delivery of CAP <br />water but have not taken delivery of substantial quantities, primarily for economic reasons. Tribes <br />with CAP allocations, with the exception of the Ale-Chin Indian Community, are not able to take <br />delivery or put to use any substantial quantity of CAP water because the distribution and delivery <br />systems that are needed to allow the Tribes to put this water to use have not been constructed, <br /> <br />Response: The Department reiterates that it fully expects the Lower Division States to <br />enact measures and take actions that will allow the Tribes to participate in opportunities covered <br />by this rule. One such example of Tribal participation in a Storage and Interstate Release <br />Agreement would be affording Tribes the opportunity to develop underground storage facilities <br />where Colorado River water could be stored. For example, the Department notes that the State of <br />Arizona is exploring the use of facilities on Tribal lands for storage of Colorado River water. <br />Thus, Tribes could participate by leasing the use of these facilities to the storing entity. <br />Moreover, this final rule does not specifically address or preclude independent actions by the <br /> <br />7 <br />