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<br />0008~J,7 <br /> <br />Without this "Quantification Settlement Agreement" - parties did not know the amount of <br />their basic allocations and proposed transfers did not have a "baseline" against which reductions <br />could be demonstrated. Now we all know the "rules of the road" within California's Colorado <br />River allocation. <br /> <br />Success in the QSA negotiations was based on the hard work of many people in this <br />room: those willing to stay at the table until solutions could be found. This success was built on <br />the foundation of the Interim Surplus Guidelines. The Department's adoption of Interim <br />Surplus Guidelines was based on another historic success. The strategy used by the Department <br />was based on a consensus Seven Basin States Plan submitted to the Secretary on behalf of the <br />Governor's of all seven Colorado River Basin states. <br /> <br />I have been asked repeatedly whether these actions (i.e., adoption of the Interim Surplus <br />Guidelines for operation of Lake Mead and execution of the QSA) - failed to meet the needs in <br />the basin in light of the worsening drought and the possible termination of surplus flows next <br />year.II <br /> <br />Those who believe that the Surplus Guidelines (or for that matter the QSA) are a <br />"failure" fundamentally miss the purpose of the Guidelines. <br /> <br />The Guidelines were not a promise to provide the Lower Basin States with extra water <br />for 15 years.11 The Guidelines were designed to provide the Secretary with the tool- objective <br />criteria - for the management of surplus declarations in the Lower Basin.i! <br /> <br />3 Some have commented that the Department should not have adopted Surplus Guidelines without simultaneously <br />promulgating Shortage Guidelines. While the decision to proceed with adoption ofInterim Surplus Guidelines was <br />undertaken prior to my tenure as Assistant Secretary, I concur with approach selected by the Department Certainly, <br />the Department would not have been able to complete the work associated with a combination of surplus and <br />shortage guidelines within the timeframe of the last administration. Timely adoption of Surplus Guidelines in 2001 <br />afforded the Secretary with an improved management system for operation of Lake Mead, beginning with the <br />preparation of the 2002 Annual Operating Plan which was fonnally adopted by Secretary Norton on December 16, <br />2002. <br /> <br />4 See Record of Decision, Interim Surplus Guidelines at "Implementing the Decision, ~ 4, Relationship with <br />Existing Law: These Guidelines are not intended to, and do not: a. Guarantee or assure any water user a firm supply <br />for any specified period." Interim Surplus Guidelines, Record of Decision, 66 Fed. Reg. 7772 (Jan. 25, 2001). <br /> <br />S The text of the Record of Decision adopting the Interim Surplus Guidelines is clear on this point: <br />"As a result of actual operating experience and through preparation of AOPs, particularly during <br />recent years when there has been increasing demand for surplus water, the Secretary has <br />detennined that there is a need for more specific surplus guidelines. consistent with the Decree and <br />applicable federal law. to assist in the Secretary's annual decision makin!! durin!! an interim <br />period. <br /> <br />Additionally, throu!!h adoption of specific interim surolus guidelines. the Secretary will be able to <br />afford mainstream users of Colorado River water. particularlv those in California who currently <br />utilize surplus flows. a !!reater del!1'ee of predictability with respect to the likely existence. or lack <br /> <br />Prepared Remarks - Keynote Address <br />Law of the Colorado River <br /> <br />Page 5 of 8 <br />