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<br />000681 <br /> <br />For the purpose of this statement of principles, all proposed transactions must be between <br />willing parties to the transaction and must be in accordance with applicable State and Federal <br />law. Presentation of a proposal by one party, seeking Federal support or action against other <br />parties, will not be considered in the absence of substantial support for the proposal among <br />affected non-Federal parties. <br /> <br />VOLUNTARY WATER TRANSACI10N PRINCIPLES <br /> <br />1. Primacy in water allocation and management decisions rests principally with the StatJes. <br />Voluntary water transactions under this policy must be in accordance withappHcable State <br />and Federal laws. <br /> <br />2. The Department of the Interior (DOl) will become involWd in facilitating a proposed <br />voluntaIy water transaction only when it can be accomplisbedwithout diminutiOn of service 10 <br />those parties otherwise being served by such Fedeial resoun:es, and when: . <br /> <br />(a) there is an existing Federal con~ or other legal ob6gation associated with the water <br />supply; or .. <br /> <br />(b) there is ~ existing ~ right held by the Federal Government that may be a1rected by <br />the 1ransaction; or <br /> <br />o it is proposed to use Federa1ly-owned storage or conveyance capacity 10 fBcilitate the <br />transaction; or <br /> <br />(d) the proposed transaction will affect Federal project operations; and <br /> <br />(e) the appropriate State, TnDal, or other non-Federal political authorities or subdivisions <br />request DOra active involvement. <br /> <br />3. DOl will participate in or approve transactions when there are no adverse thinl-party <br />consequences, or when such third-party consequences Will be heard and adjudicateclln <br />appropriate State forums, or when such consequences Will be mitigated to the satisfBctiOll of <br />the affected parties. <br /> <br />4. As a general rule, oars role will be to facilitate transactions that are in accordance with <br />applicable State and Fedemllaw and proposed by oth~rs. In doing SQ, DOl will consider the <br />positions of the affected State, TnDal, and local authorities. DOl will not .suggest a specific <br />transact;ion except when it is part of an Indian water rights settlement, a solution to a wateI' <br />rights controversy, or when it may provide a dependable water supply the provision of which <br />otherwise would involve the expenditure of Federal fimds. Such a suggestion would not be <br />canied out without the concurrence of all affected non-Federal parties. <br /> <br />2 <br />