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<br />that have been the subject of intense negotiations in California over the past five <br /> <br />years, which still have not been resolved, with the result that the implementa ion of <br /> <br />revised guidelines for Secretarial "surplus" determinations of water availabili y at <br /> <br />Lake Mead for 15 years while California undertakes a variety of conservation <br /> <br />projects and water transfers to reduce its uses to 4.4 MAF annually has been taIled. <br /> <br />b. Arizona <br /> <br />In 1944 the Secretary and the State of Arizona entered into a master c ntract <br /> <br />for the delivery to Arizona of a maximum of 2.8 MAF annually. Following the <br /> <br />Supreme Court's decision in Arizona v. California in 1963, Congress in 1968 e acted <br /> <br /> <br />the Colorado River Basin Project Act, 43 U.S.C. 1501 et sea., which authorize <br /> <br />Secretary to construct the Central Arizona Project ("CAP") to enable Arizona <br /> <br />to beneficial use that portion of Arizona's annual apportionment of mainstrea <br /> <br />Colorado River water not previonsly allocated. Althongh the 1964 decree in ,zona <br /> <br />v. California had largely left to the Secretary's discretion the allocation of shor ages <br /> <br />among the three Lower Division States in years when 7.5 MAF was not availab e for <br /> <br />apportionment, 376 U.S. at 342-43, the 1968 Act limited diversions by the CAP in <br /> <br />such years to the extent necessary to assure the availability of 4.4 MAF for use in <br /> <br />California. In 1972, the Secretary entered into a contract with the Central Ari ona <br /> <br />Water Conservation District for delivery of the CAPs water entitlement and <br /> <br />repayment of Arizona's share of the project costs. The CAWCD and the Secreta <br /> <br />27 <br />