WSPC12549

• File Number: 8282.752
• Description: Colorado River Basin - Operations and Accounting - Offstream Storage - Lower Basin
• State: CO
• Basin: Colorado Mainstem
• Water Division: 5
• Date: 1/21/1998
• Author: Arizona Water Banking Authority
• Title: Arizona Water Banking Authority - Discussion of Proposed Interstate Banking Rules - RE-Offstream Storage-Colorado River Water-Interstate Redemption of Storage Credits-Lower Division States - 01-21-98
• Water Supply Pro - Doc Type: Report/Study

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may hold a public meeting rather than a hearing, and Reclamation will include the results
in the Administrative Record. If Reclamation holds a hearing, Reclamation will continue the
hearing until all persons wishing to testify have had an opportunity to do so. In order to assist
the transcriber and to ensure an accurate record, Reclamation requests that each person who
testifies at a hearing give the transcriber a copy of that testimony. In order to assist Reclamation
in hearing preparation, Reclamation also requests that each person who plans to testify submit to
Reclamation at the address previously specified (see ADDRESSES) an advance copy of that
testimony.

II. Background

The Colorado River serves as a source of water for irrigation, domestic, and other uses in
the States of Arizona, California, Colorado, Nevada, New Mexico, Utah, and Wyoming, and in
the Republic of Mexico. The initial apportionment of water from the Colorado River was made
by an interstate compact, the Colorado River Compact, dated November 24, 1922 (Compact).
The Compact became effective in 1929 following ratification by six states and approval by the
Congress of the United States. The State of Arizona became the final State to ratify the
Compact in 1944. The Compact defined the Colorado River Basin and divided the seven States
into two basins, an Upper Basin and a Lower Basin. The Compact apportioned to each basin, in
perpetuity, the exclusive beneficial consumptive use of 7.5 million acre-feet (maf) of water.
Under the Compact, "consumptive use" means diversions of water from the mainstream of the
Colorado River, including water drawn from the mainstream by underground pumping, less
return flow to the river.
The Lower Basin includes those parts of the States of Arizona, California, Nevada, New
Mexico, and Utah within and from which waters naturally drain into the Colorado River system
below Lee Ferry (Arizona), a point in the mainstream of the Colorado River 1 mile below the
mouth of the Paria River. The Compact also grouped the seven States into two divisions, the
Upper Division and the Lower Division. The Lower Division consists of the States of Arizona,
California, and Nevada. All mainstream Colorado River water apportioned by the Compact to
the Lower Basin is divided among the three Lower Division States. All mainstream Colorado
River waters apportioned to the Lower Basin, except for a few thousand acre-feet apportioned
to the State of Arizona, have been allocated to specific entities and, except for certain Federal
establishments, placed under permanent water delivery contracts with the Secretary for irrigation
or domestic use. These entities include irrigation districts, water districts, municipalities, Federal
establishments including Indian reservations, public institutions, private water companies, and
individuals.
The Supreme Court of the United States, in its Opinion of June 3, 1963, (373 U.S. 546) and
Decree entered March 9, 1964 (376 U.S. 340) (Decree), in the case of Arizona v. California, et
al., confirmed that the Secretary was vested with sufficient authority and charged with the
responsibility to direct, manage, and coordinate the operation of dams and related works on the
Colorado River in the Lower Basin. The Supreme Court concluded, among other things, that the
Secretary derives significant authority from the contract authority under section 5 of the Boulder
Canyon Project Act of 1928 (45 Stat. 1057,43 U.S.C. 617)(BCPA) that requires water users in

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