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Representatives of the seven states and hempthorne, in turn, signed a document affirming the historic <br />agreement. The signing ceremony occurred at the annual Colorado River Water Users Association <br />meeting and was greeted with a standing ovation. <br />The adoption of the shortage criteria follow the 2001 adoption of interim guidelines for surplus water <br />conditions in the Lower Basin; and many people point out that by adding agreements such as these to the <br />Law of the River, it has helped ensure the Compact keeps pace with changes in the Colorado River Basin. <br />The potential for a major shortfall in supplies because of the severe drought has led to the current <br />Reclamation/seven-state/environmentalists effort to craft shortage criteria. In November, Reclamation <br />issued its final Environmental Impact Statement (EIS) for the "Colorado River Interim Guidelines for <br />Lower Basin Shortages and Coordinated Operations for Lake Powell and Lake Mead." But even then, <br />after months of working to reach agreement on a plan, there were last minute disputes over elements of <br />the plan. <br />Disputes on the shortage proposal exemplify the difficulty of forging agreements and proposals that all <br />the states will support, much less the other interests in those states. They also illustrate the Colorado River <br />Basin's unique federal-state political and legal dynamic -especially in the Lower Basin states of Arizona, <br />California and Nevada. <br />Meanwhile, Mexico is facing its own challenges with water salinity, urban growth, and protecting and <br />restoring environmental values; and actions being undertaken in the United States to conserve Colorado <br />River water that benefits Mexico have generated tension between the two countries. Already the two <br />countries found themselves in a legal conflict over the lining of the All-American Canal. The canal loses <br />an estimated 67,700 acre-feet of water from seepage each year; replacing portions with aconcrete-lined <br />channel will conserve water for California's Colorado River water users. But some of the water from the <br />unlined canal currently seeps into the ground where it is pumped out of the groundwater aquifer in the <br />Mexicali Valley. Another conservation effort on the U.S. side of the border -construction of a reservoir <br />along the All-American Canal to capture unused water -will reduce the amount of water that currently <br />flows across the border into Mexico. This water is not counted in Mexico's annual Colorado River <br />allocation, but the country has grown to rely on it. <br />Conflict is a familiar component in the Colorado River Basin; even with the Compact in place, the states <br />have pursued legislative and legal actions against one another over the past 85 years. Yet at the <br />international, federal and state levels, most conflicts result in an effort to reach some sort of a compromise <br />to resolve the underlying issue. Continuing this trend -and perhaps even broadening it to include other <br />stakeholders - is very critical as the w°hole basin, on both sides of the border, confronts the future. <br />This Western Water marks the 85th anniversary of the Colorado River Compact and considers its role in <br />the past and present on key issues such as federal funding for water projects and international issues. <br />Much of the content for this magazine came from the Foundation's September Colorado River <br />Symposium, The Colorado River Compact at 85 and Changes on the River. The Foundation will publish <br />the full proceedings of the symposium, which was recorded, in Spring 2008. <br />HAT CREEK WATER COURT APPLICATION - On December 26, 2007, the CWCB filed an <br />application in the Division 5 Water Court to change the Hat Creek Ditch water right (acquired from the <br />Colorado Water Trust in 2007) from irrigation use to instream flow use to preserve the natural <br />environments of Hat Creek and East Brush Creek to a reasonable degree. Statements of Opposition were <br />filed by the Colorado Water Trust (in support); Diamond S Ranch, LLC; and the Town of Eagle. Issues <br />raised in the Statements of Opposition include the need to determine the historic irrigation of land under <br />~23~ <br />