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<br />000676 <br /> <br />3/13/00 USBR Staff Draft <br /> <br />ATIAOIMENTB <br />(Dnft of Proposed New Po6c:y Memonmdum) <br /> <br />To: . Chief of Staff <br />Attention: W-IS()O <br />Director, Operations <br />Attention: W-6000 <br />Director, Office of Policy <br />Attention: W-SOOO, D-SOOO. <br />Director, Reclamation Service Center <br />. Attention: 0-1000 <br />Regional Directors, PN, MP, LC, UC, GP <br />Attention: PN-l000, PN-33oo, MP-l 00, MP-440, .LC-) 000, LC-44S0, UC-t 00, <br />UC-446, GP-l000, GP-21oo '. <br /> <br />From: Eluid L. Martinez <br />CommissiODel' <br /> <br />Subject Revisions and Clarifications to Policy for Pricing Project Water' Converting nom <br />hrigation to Municipal and bidustriaI (M&I) Service <br /> <br />Based on the deliberations of the Water Transfers Team which I appointed to assist in the <br />development of policies fur the transfer of project water, I have decided to provide some revisions <br />and cJarificatioIlB to the pricing policy for project water converted from historic irrigation to new <br />nnmicipaI and industrial uses which was issued by me on November 13, 1997. A number of <br />topics were identified by the team for clarificationBS deHDeated below. <br /> <br />1. Clarify the approaches thoJ may be used to develop rates for the purposes of <br />establishing negotiating posm01l3. <br /> <br />A. Market rates - The November 1997 memorandum recommends that a number of <br />pricing mec~n;sms be considered in detennining a rate to be used. This will provide <br />the negotiators. a range within which they could reach a final price. The objective is to <br />get the best rate for the United. States within the context of facilitating transfers and the <br />negotiating process. The use of an identified market rate would provide ReclamAnon a <br />strong negotiating position. Frequently, however, market rates specific to a local area <br />are not available or may be inappropriate given the primary objective of &cilitating <br />transfers. A second choice for determining a rate is from an existing M&I service <br />contract with Reclamation. If a contract is currently iD place, the rate from that <br />contract could be used. . <br />