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2. Reduction in Mexican Deliveries. The Parties have entered into this Agreement <br />based on the presumption that the United States will reduce deliveries to Mexico as <br />described in the Seven States' Proposal. In the event that the United States does not <br />eeduce deliveries to Mexico in accordance with paragraph {3}(F)(5) of the Seven States' <br />Proposal, the Parties have agreed only to the shortage allocations described in Section 3 <br />of this Agreement. <br />3. Shortage Sharing Between___Arizona and Nevada. During the lnterim Period the <br />Parties agree that shortages shall be allocated between Arizona and Nevada in the <br />following quantities: <br />A. In years when Lake Mead content is projected on January 1 to be at or <br />below elevation 1075 ft. and at or above 1050 ft., then Nevada's share of <br />the shortage within the United States shall equal 13,000 acre-feet and <br />Arizona's share of the shortage within the United States shall equal <br />320,000 acre-feet. <br />B. [n years when Lake Mead content is projected on January 1 to be below <br />elevation 1050 ft. and at or above 1025 ft., then Nevada's share of the <br />shortage within the United States shall equal 17,000 acre-feet and <br />Arizona's share of the shortage within the United States shall equal <br />400,000 acre-feet. <br />C. In years when Lake Mead content is projected an January 1 to be below <br />1025 ft., then Nevada's share of the shortage within the United States shall <br />equal 20,000 acre-feet and Arizona's share of the shortage within the <br />United States shall equal 480,000 acre-feet. <br />~reement Limite to aximum orta e Vo ume o 500,000 Acre, <br />g -feet,, Within <br />the United States. This Agreement and the Parties relative obligations hereunder are <br />specifically limited to a maximum shortage volume of 500,000 acre-feet within the <br />United States in any year during the lnterim Period. Should Lower Basin total shortage <br />volume exceed 500,000 acre-feet within the United States, then the Parties will consult <br />with the Secretary concerning shortage sharing beyond 500,000 acre-feet within the <br />United States. <br />5. Shortage Assistance. For the purpose of assisting Arizona in offsetting impacts <br />from shortages that may occur during the Interim Period, SHWA agrees to provide to the <br />Arizona Water Banking Authority the surn of $8,000,000.00 {Eight Million Dollars} ("the <br />Funds"). The Arizona Water Banking Authority wilE use the Funds to purchase and/or <br />store water supplies. This sum shall be paid to Arizona within 60 days of the date the <br />Secretary issues a Record of Decision, unless otherwise agreed in writing by the SNWA <br />and Arizona. Neither the payment nor the use of the Funds are conditioned on the <br />occurrence of a shortage during the lnterim Period, and the Funds shall be nonrefundable. <br />6. Condition Precedent to Effectiveness of A reement. The Parties agree, as an <br />express condition precedent to the effectiveness and enforceability of this Agreement, <br />2 <br />