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24 depletions. The U.S. Section of the IBWC, in its Canalization Project Environmental Impact Statement (EIS), has recognized the need to secure water to offset depletions from its proposed habitat restoration projects. The Corps presentation indicated they are in the planning stages of numerous habitat restoration projects within the Middle Rio Grande and will comply with the requirement of no new net depletions. New Mexico reports that the Corps has not yet submitted permit applications or met with the Office of the State Engineer on these projects. Water Resource Development Act Section 729 Comprehensive Plan nino Studv The Corps and NMISC provided an update of the Section 729 water resources investigation in the reach of the Rio Grande between San Acacia and Elephant Butte Reservoir to characterize the interaction of surface water and shallow groundwater. The Corps reported work under the study is nearly complete and that the Corps and NMISC are completing financial accounting for the project. New Mexico reports that surface water stage and groundwater levels as well as water quality have been measured at multiple sites during 2003 and throughout 2004 to document the hydraulic interaction of surface water and groundwater, that New Mexico anticipates continuing data collection in conjunction with the New Mexico Institute of Mining and Technology and that New Mexico has developed a linked surface water/groundwater model for the reach based, in part, on data collected from the Section 729 study. Low Flow Conveyance Channel Desion. Construction, ODeration and Maintenance Reclamation again discussed its proposed project to relocate the river channel, and the adjacent Low Flow Conveyance Channel (LFCC), to the west side of the valley floor downstream from San Marcial. Reclamation indicated that the project is on hold due to lack of funding. Environmental issues and the results of New Mexico's modeling of the reach will be critical in determining whether the project should move forward. The New Mexico Engineer Adviser reported on the NMISC's linked surface water/groundwater model analysis of altemative LFCC operations using the MODBranch model of the San Acacia reach. Results from the modeling indicate that the impact on New Mexico of not fully operating the LFCC are on the order of an additional depletion of 15,000 to 20,000 acre-feet of water in an average river flow year. Further, the modeling indicated partial operation of the LFCC may result in increased water depletion through the reach when compared to no operation of the LFCC. New Mexico indicated it would continue to refine the modeling analysis in 2005 and meet with Reclamation and the Service to fully evaluate the impact of not recommencing LFCC operations as well as the potential impact of realigning the LFCC and river below San Marcial by Reclamation.