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<br />. <br /> <br />. <br /> <br />reservoir conditions. On June 15,2005, the US Bureau of Reclamation published a Federal Register <br />notice to begin the NEP A process to develop the shortage criteria and coordinated operations with a <br />deadline for completion of the process by December 31, 2007. <br /> <br />On February 3,2006 the Governor's representatives for the 7-Basin States wrote a letter to the Secretary <br />of Interior stating the 7-States had agreed on a 3-pronged strategy for improving management and <br />operations of the Colorado River. First, the states would work with Reclamation to develop Lower Basin <br />shortage criteria in conjunction with new coordinated operating criteria for Lakes Powell and Mead under <br />low reservoir conditions. Second, the states would look for ways to improve system efficiency and <br />management. Finally the states would look for ways to augment the water supplies of the Colorado <br />River. In furtherance of the activities outlined in the draft agreement attached to the February 3,2006 <br />letter, the 7-Basin States have been working to finalize the terms of that agreement, the latest draft of <br />which is dated December 18,2006. The 7-State Agreement as it currently stands is outlined in detail in a <br />memorandum to the Board and will be discussed at some length at the Boards January meeting. <br /> <br />Other actions associated with the agreement include work on: 1) the forbearance agreement needed to <br />implement the Lower Basin-Intentionally Created Surplus program and Lake Mead Accounts; the <br />Shortage Sharing Agreement between Arizona and Nevada, which may include provisions for sharing <br />shortages with Mexico, the Long-Term Augmentation Study being funded by the Southern Nevada Water <br />Authority, and the 2007 weather modification demonstration program contracts with Colorado, Utah and <br />Wyoming. These will be discussed further at the January meeting as well. <br /> <br />Colorado River Water Users Association Speech: The theme of the annual meeting this year was <br />"Common Goals." I was one of the panel speakers discussing issues limiting water marketing between <br />the Upper and Lower Basins. I emphasized the importance of the Colorado River Compact to the Upper <br />Basin, the protections it provides, and the reasons for them. Randy Seaholm and Ted Kowalski also <br />attended the meeting. <br /> <br />Secretary ofInterior Kempthorne Addresses the Colorado River Water Users Association at their <br />Annual Meeting on December 13-15, 2006: The Secretary, in his remarks, stated that he expects to see <br />an agreement on the sharing of Colorado River water during drought conditions signed by the 7 -Basin <br />States in 2007 and noted that the EIS for improving the coordinated operations between Lakes Powell and <br />Mead under lower reservoir conditions would be completed by December 31, 2007. Completion of the <br />EIS is a critical element ofthe 7-Basin States agreement. He also stated that Interior would move forward <br />with the lining of the All American Canal and the construction of the Drop 2 reservoir along the canal to <br />improve the operations of the canal system as quickly as possible. The canal ling and reservoir project, <br />which will help save precious and limited water supplies, is receiving heavy opposition from Mexico and <br />environmental groups. He emphasized the need for cooperation and coordination among all interests in <br />finding creative solutions to a wide array of water issues and avoid the potential conflicts that exist. The <br />full text of the Secretary's remarks are attached or may be viewed on line at <br />http://www .usbr.gov/roomlspeechldetail.cfm?RecordID= 32 <br /> <br />Two Colorado River Water Projects Move Ahead: The federal government will move ahead with two <br />Colorado River water projects, despite stiff opposition from Mexico and concerns by environmental <br />groups that the work could further damage sensitive river habitat. <br /> <br />Interior Secretary Dirk Kempthome said Dec. 15 the two projects - lining an agricultural canal west of <br />Yuma and building a new reservoir along the canal- will help capture wasted water as the seven river <br />states struggle to stretch their resources. Kempthorne said the U.S. will continue to meet with Mexican <br />officials, who say lining the All American Canal as planned will rob farmers in the Mexicali Valley ofa <br />water source they have relied on for decades. Water from the dirt canal has seeped into aquifers that flow <br />. into Mexico; lining the canal will halt the seepage. <br /> <br />29 <br />