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WATER MARKETING ON THE COLORADO RIVER SYMPOSIUM PROCEEDINGS SEPTEMBER 1999 o Basin marketing scenario, obviously the Bureau of Reclamation - to some extent in the Upper Basin but to much more extent in the Lower Basin - would playa major role in shepherding, if you will, that water through the federal reservoir system. What role do you see the Secretary of Interior, the Bureau of Reclamation, playing in accomplishing that? UNDERWOOD: This is my outlook on the Law of the River. The Secretary has been given broad responsibilities and authority, but who framed them? The states framed them. And to allow for a market to occur, I think the states have to be the parties that agree. I'll give you an example of our current discus- sions on the Colorado River in California. People can agree to a large quantity of water shifting hands, that's not the problem. The problem is under what terms and conditions. You say, "Well, jeez, that should be a simple thing because the hard part has to be that you're going to shift large volumes of water." It's not. It has to do with how it will affect third parties and how they are protected. That's where the negotiations get very tough. What happens? Like most cases you hear about marketing and leasing, users want long term arrange- ments because they're going to have a dependency. What are they going to do at the end of [a short-term lease]? Unless a state or an individual has short term needs such a lease won't work. So the hard part of making arrangements are the terms and conditions. And only the states, in my mind, can do that. It's not a responsibility of the Secretary. I think the Secretary can help facilitate, but it has to be between the states. WEATHERFORD: Do you think, picking up on an earlier idea, that the states would be more effective in that role if they were in some type of collective organization, such as a seven state commission? UNDERWOOD: I've gone through similar discus- sions in my past lives about creating other organiza- tions. If you look at some of the past experiences that have been successful, a lot of it had to do with continuity of staff, continuity of people and relation- ships. The problem in some cases when you create interstate bodies is that they may be political appoin- tees. They may come and go. Sometimes that's good because it brings fresh ideas. But in many cases, the continuity may be more important to resolve issues. I'd be very concerned about how they were appointed because the entity may become more political than resolution oriented. MULROY: Can I ask a follow-up to that? If there's no continuity in a larger interstate group, where do you find that continuity today? UNDERWOOD: I agree that right now - in the Lower Basin states for various reasons, even internally within California - that there is not the unity. Not even one voice within California. It hasn't been that way the past and it has happened in other states in a similar fashion. And I agree with you, Pat, ideally, I think it would work well. But how you structured it would be very key as to how those people served,for what durations and what interests that they bring to the table. MULROY: Those are details that would absolutely have to be worked out. But I think you need to start with the concept that there are enough common issues out there that require ongoing dialogue in some sort of a structured format. You start from that premise. And then the details of who appoints and how appoints, those pieces could be filled in later. UNDERWOOD: I agree. I think the key is the willingness to talk and to be constructive in your talks. I was brought from the East out of college to work in the West on water. I learned a lot from my mentors about how well people can work together. I guess if I had to analyze within California and other states right now, it's probably the lowest I've ever seen it. There needs to be that focal point and maybe when it gets so low, Pat, that's what happens, people rise up and make the right things happen. I think it's well overdue. MULROY: There's another driving force here. We all in the Lower Basin turn to the Secretary of Interior and asked him to assume the role of the mediator and the facilitator in the Lower Basin because we couldn't get our act together. Whoever sits in that position now has inherent conflicts that really make him a user in his trustee responsibilities along with the rest of us. So without a clear un-disinterested facilitator and no common forum for dialog, I think what you're seeing now is a low point in the ability of the Lower Basin to address its issues. It's only going to get worse. MUTz: I just wanted to make an observation with regard to continuity. Continuity is fine except some, at least the state water administtatots, have so many duties going on that they may not be able to afford