Basin States' Comments on Draft Environmental Impact Statement, CO River Interim guidelines for Lower Basin Shrotages and Coordinated Operations for Lake Powell and Lake Mead

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ATTACHMENT D Arizona-Nevada Shortage-Sharing Agreement This Agreement is entered into among the Arizona Department of Water Resources ("Arizona"), the Arizona Water Banking Authority ("AWBA"), the Colorado River Commission of Nevada ("CRC") and the Southern Nevada Water Authority ("SNWA"). For convenience, Arizona, AWBA, CRC and SNWA are at times herein referred to individually as "Party" and collectively as "Parties" and CRC and SNWA are referred to as "Nevada". Preamble The 1944 Mexican Water Treaty, the 1964 U.S. Supreme Court Decree in Arizona v. California, and the 1968 Colorado River Basin Project Act authorize and guide the Secretary of the Interior {"Secretary") in the determination of water deliveries to the Republic of Mexico and from the mainstream of the Colorado River within the Lower Basin during shortage conditions. However, there remain significant differences of opinion between Arizona and Nevada regarding how much water would be delivered to each state within the Lower Colorado River Basin during a shortage declared by the Secretary. Arizona and Nevada have now, therefore, agreed on how Secretarial shortage declarations of up to 500,000 acre-feet within the United States would be shared between them during an Interim Period. This Agreement is conditioned upon the inclusion of all material terms :from the Seven Basin States' Preliminary Proposal Regarding Colorado River Interim Operations {Seven States' Proposal) that was forwarded to the Secretary on February 3, 2006, as it may be modified, within the Record of Decision for Colorado River Reservoir Operations: Development of Lower Basin Shortage Guidelines and Coordinated Management Strategies for Lake Powell and Lake Mead Under Law Reservoir Conditions ("Record of Decision"). If shortage declarations within the United States exceed 500,000 acre-feet, the Secretary would consult with representatives from the seven Colorado River Basin states before allocating additional shortage reductions. That consultation would be initiated anytime that the water surface elevation of Lake Mead is at or below water surface elevation 1025 feet. AGREEMENT Now, therefore, based upon the mutual covenants and promises contained herein, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto do agree as follows: I. Definitions: a. Interim Period. The period beginning on the date the Secretary issues a Record of Decision and ending on Decernber 31, 2025 (through preparation of the 2026 Annual Operating Plan). b. Shortage. Any shortage within the United States declared by the Secretary pursuant to Article II(B)(3) of the Decree during the Interim Period. I