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protection afforded to the Upper Basin by Lake Powell, and to delay the onset <br />and minimize the extent and duration of shortages in the Lower Basin. <br />4. On May 2, 2005, the Secretary announced her intent to undertake a process to <br />develop Lower Basin shortage guidelines and explore management options for <br />the coordinated operation of Lakes Powell and Mead. On June 15, 2005, the <br />Bureau of Reclamation published a notice in the Federal Register, announcing <br />its intent to implement the Secretary`s direction. The Bureau of Reclamation <br />has proceeded to undertake scoping and develop alternatives pursuant to the <br />National Environmental Policy Act (the NEPA Process), which the Parties <br />anticipate will form the basis for a ROD to be issued by the Secretary by <br />December 2007. <br />5. On August 2S, 2005, the Parties wrote a letter to the Secretary expressing <br />conceptual agreement in the development and implementation of three broad <br />strategies for improved management and operation of the Colorado River: <br />Coordinated Reservoir Management and Lower Basin Shortage Guidelines; <br />System Efficiency and Management; and Augmentation of Supply. <br />6. On February 3, 2006, the Parties transmitted to the Secretary their <br />recommendation for the scope of the NEPA Process (Preliminary Proposal), <br />which refined many of the elements outlined in the August 25, 20051etter. <br />7. In February 2007, the Secretary issued a Draft Environmental Impact <br />Statement (DEIS} pursuant to the NEPA Process. The DEIS includes an <br />alternative, called the Basin States' Alternative, that is based on the <br />recommendations of the Parties. <br />8. At the request of the Secretary, the Parties have continued their discussions <br />relative to the areas of agreement outlined in the letters of August 25, 2005 <br />and February 3, 2006, and the DEIS, and have agreed on: a) additional actions <br />for their mutual benefit designed to augment the supply of water available for <br />use in the Colorado River System and improve the management of water in <br />the Colorado River; b} recommendations to the Secretary for adoption as the <br />preferred alternative in the Final Environmental Impact Statement and in the <br />ROD; and e) consultation processes among themselves, and consultation <br />recommendations to the Secretary for incorporation into the ROD. <br />C. Pu~~ose. The Parties intend that the actions by them contemplated in this <br />Agreement will: improve cooperation and communication among them; provide <br />additional security and certainty in the water supply of the Colorado River System for the <br />benefit of the people served by water from the Colorado River System; and avoid <br />circumstances which could otherwise form the basis for claims or controversies over <br />interpretation or implementation of the Colorado River Compact and other applicable <br />provisions of the law of the river. <br />5 <br />