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<br />development, and most water users are junior in priority and need protection from lower <br />basin calls. All projects are at risk; the Yampa Roundtable has taken protective positions, <br />particularly with wrapping their arms around Article 13 of the Compact. Mr. Sharp said <br />the basin is able to complete reasonable development without fear of curtailment, and all <br />roundtable members agree that orderly development is necessary. <br /> <br />Scott Balcomb began his update of Colorado River issues by saying that the river is <br />experiencing an unprecedented drought. Informal discussions among the Upper and <br />Lower Basin States continue, with states agreeing that each one needs to be in charge of <br />their own fate. Mr. Balcomb then gave a brief background of Colorado River issues, <br />starting with the early massive federal help for California agriculture, and the 1922 <br />Compact that established the Upper Basin delivery requirement at Lee FelTY. The Upper <br />Basin Compact created the Upper Basin River Commission. The Secretary of the Interior <br />manages the river below Lee Ferry and the Upper Colorado Commission manages the <br />river above Lee Ferry. Scott added that the Lower Basin states are entitled to 8 and a half <br />million acre feet, but something is clearly going wrong. The Upper Basin intends to <br />continue to develop our share of the river, but how do you deprive someone who is <br />currently using that water supply? That is the practical problem on the river. Mr. <br />Balcomb indicated that Arizona has designs to take Powell below the power level. In <br />which case, the endangered species program might go away because the power sales fund <br />that program. He added that the fiscal situation of the nation does nothing to help the <br />situation. California has historically overused the river, but has since perceived they <br />could not continue that overuse. The seven states have worked to establish shortage <br />criteria, and getting California back to the 4.4 million acre-feet was a milestone. That <br />process showed dialogue can work before just turning the situation over to the judicial <br />system. Arizona's CAP has a subordinate position on the system, and could possibly <br />have to take an entire shortage should one occur. Arizona's growth places high <br />requirements for industrial and municipal uses. Scott told attendees that the seven states <br />can fight and litigate or try to work things out. The Upper Basin strategy is to bring new <br />water into the lower river system. How do we accomplish this? The way the river <br />system is run in the Lower Basin is wasteful. "Take or pay" but doesn't happen in the <br />lower basin system. The system must become more efficient, while at the same helping <br />Nevada with their water crisis. Do we stop growth or find a new water supply? Nevada <br />has offered to help fund some of these new improvements, and their help is important <br />because they could sue the Upper Basin states. Another solution to finding a new water <br />supply is to look at desalinating water that could be provided to Mexico farmers and <br />cities. This could replace the water Mexico gets under Compact, but will require <br />international cooperation. Some indications are that the Mexican government might <br />accept an idea like this. They are highly motivated, and presently the US and Mexico <br />agree on the desirability to do something like this. A draft shortage sharing agreement <br />has been sent to the Secretary of the Interior with some innovative ideas on how to get <br />new water into the system. Arizona might be backing out of the agreement because they <br />are suffering through the worse drought in history and are very nervous right now. <br />Colorado River issues are very political right now, and a political candidate in Nevada is <br />running on platform to sue to break the Compact. The shortage criteria are actually <br />working against 100 years of political inertia, and the whole thing could fall apart. <br />