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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that the Secretary must issue a Record of Decision that is cansistent with all material terms included in the Seven States' Proposal, including this Agreement, by July I, 200$, unless otherwise agreed to in writing by the Parties. If such condition precedent does not occur 6y the date set forth herein or as extended or modified by written agreement of the Parties, this Agreement shall be of no force or effect among the Parties. 7. l~eyada's Use of Tributary Conservation Water and Nevada State,Groundwater During Declared Shprta~e Condition. The Parties anticipate that following the issuance of the Record of Decision, Nevada will be able to create Intentionally Created Surplus ("ICS") by introducing into the Colorado River mainstream Nevada State Groundwater ("Imported ICS") and Virgin and Muddy River water pursuant to Nevada water rights that pre-date the Boulder Canyon Project Act ("Tributary Conservation ICS"). Pursuant to a mutually agreed upon forbearance agreement, the Secretary will deliver such ICS for municipal and industrial uses within Nevada. The Parties have agreed that the water that would be used to create Tributary Conservation ICS and Imported ICS during non- shortage years will be available during declared shortages. It is anticipated by the Parties that the Record of Decision will establish guidelines whereby the Secretary of Interior, through the Bureau of Reclamation, may enter into agreements to verify and deliver ICS to the party that created it. Arizona agrees that if in any year, pursuant to Article II {B)(3} of the Decree, there is insufficient mainstream water available to satisfy the consumptive use of 7.5 maf in the lower division states, then Arizona will not object to the delivery by the Secretary to Nevada of water that would otherwise qualify for creation and release of Tributary Conservation ICS or Imported ICS during anon-shortage year nor otherwise claim a right to use such water in any form or fashion. Arizona's agreement not to object to any secretarial delivery of and [Nevada's diversion of such water shall be binding on Arizona only to the extent that such delivery does not cause the total deliveries within the lower division states to exceed 7.5 maf in any year in which the Secretary has declared a shortage. Furthermore, Arizona's agreement is conditioned on application of the same provisions far verification that would apply to the creation of Tributary Conservation ICS or Imported ICS under the Seven States' Proposal. S. Reservation of Ri hts. Notwithstanding the terms of this Agreement, in the event that for any reason this Agreement is terminated, or that the term of this Agreement is not extended, or upon the withdrawal of any Party from this Agreement, the Parties reserve, and shall not be deemed to have waived, any and all rights, including any claims or defenses, they may have as of the date hereof or as may accrue during the term hereof, including specifically the respective legal positions of Nevada and Arizona regarding how the delivery of water under a shortage declaration by the Secretary would be administered within the Lower Colorado River Basin and any other rights, claims or defenses under any existing federal or state law or administrative rule, regulation or guideline, including without limitation the Colorado River Compact, the Decree in Arizona v. California (the "Decree"), the Colorado River Basin Project Act of I968, and any other applicable provision of federal law, rule, regulation, or guideline.