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March 12-13, 2007 Board Meeting Agenda Item 9 Page 3 of5 . at the beginning and Lake Mead absorbs the drought impacts on the tail end until Powell has recovered to the 602(a) storage level. Under the proposed low reservoir adjustments to the "Criteria" when the reservoirs reach certain reduced levels of storage as shown in the attached illustration, they would be operated in a manner that keeps the amount of storage in the two reservoirs approximately equal as the Lower Basin begins to take shortages. The range of release would be expanded in order to provide the operational flexibility necessary to achieve this objective, which is beneficial to the Upper Basin. As an aside, the "Conservation before Shortage" alternative proposed by environmental groups assumes the same reservoir operations. Preliminary DEIS Review A preliminary review of the results contained in the DEIS does not reveal any significant surprises, which given the significant level of consultation Reclamation did with the various interest groups is as it should be. However, staffhas had relatively little time to evaluate the DEIS since its release and we will provide additional observations and comments at the March meeting. Furthermore, Reclamation will host a meeting on March 6th to review the DEIS with all interested parties which staff will attend. . The 7-Colorado River Basin States will be meeting on March 15-16 to begin development of joint state comments, which comments will be further discussed among the principles on March 23rd. Important Considerations for Colorado Colorado's main objective in this endeavor is to maximize protection of its existing uses and maintain its future development opportunities to the full extent provided for in the Compacts. The Upper Basin also wants to protect power operations at CRSP units to the greatest degree possible. In order to achieve these objectives, the Upper Basin needs to assure that there is sufficient storage in Lake Powell to assure that the flow at Lee Ferry, Arizona does not fall below the 10-year running average of75 MAF. Furthermore, because the Upper Basin is responsible for one-half of any deficiency in the delivery of 1.5 MAF to Mexico each year, the Upper Basin needs to assure that Lower Basin uses are consistent with the Compacts and do not result in larger or more frequent deficiencies in the Mexican Treaty deliveries. . Therefore, the Upper Basin needs to pay particular attention to 602(a) storage levels in Lake Powell and operations at Lake Mead that may result in equalization or the balancing of contents between Lakes Powell and Mead. Lake levels at Mead depend on Lower Basin uses, both mainstem and tributary, and the amount of shortages taken by the Lower Basin States and Mexico.