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<br />Since the AOP relates to actions taken each and every month, most people <br />concentrated on that. The meetings were a real eye-opener for many. Most <br />participants found the work challenging but rewarding. <br /> <br />Concerning the 5-year review, we are using that same public work group <br />to assist us in preparing for the next review in four more years. This makes <br />sense since its members are rapidly gaining a working understanding of the <br />river management process and their input will be very useful. <br /> <br />Some of the concerns to be addressed include the minimum objective <br />release from Lake Powell, the equalization provision, Section 602(a) storage <br />determination, and surplus and shortage declarations. We expect that by the <br />time the next 5-year review 'begins, we will have the data to deal with <br />possible changes in the criteria. We may also find that the existing criteria <br />are serving us very well, that they contain the necessary flexibility to meet <br />each of our needs, and should be continued. <br /> <br />Let's move to a few critical issues and see how these issues are coming <br />to bear...and by that perhaps begin to answer some of the questions Lucy asked <br />me to consider. <br /> <br />First off, let's consider water marketing. <br /> <br />This is a subject that strikes at the very heart of the relationships of <br />the Upper and Lower Basins. <br /> <br />Some people will make a strong case that there is surplus water in the <br />Upper Basin that has not been developed. That water, they contend, will never <br />be developed because of the impacts of application of the Endangered Species <br />Act, Native American water rights decisions, and various environmental <br />concerns that may require in-stream flows, as well as economic constraints. <br /> <br />Probably an equal number of people will make the opposite case that the <br />undeveloped waters still are apportioned under the 1922 Colorado River Compact <br />and represent the future development opportunities of the Upper Basin states, <br />and that such waters should be developed as a matter of both need and right. <br />They argue that simply because of the massive, and often unchecked, growth of <br />the Lower Basin states, they should not be penalized. <br /> <br />The truth probably lies somewhere in between. The value of <br />understanding the opposite extremes of debate helps us to accept that this is <br />largely a problem of the states...and is one that can best be settled by the <br />states. Unless the foundation of western water law is changed, namely that <br />water is a property of the states, it is fitting that the states be at the <br />forefront in addressing any concerns relating to water transfers. <br /> <br />Yesterday Carroll Multz, the new Federal Representative and Chairman of <br />the Upper Colorado River Commission, clearly and correctly indicated that any <br />interstate water marketing, leasing, or banking proposals will require the <br />participation, and possibly the approval, of the Federal government. To <br />refresh your memory, he said that was because any water moving from state to <br />state must pass through Federal facilities. <br /> <br />4 <br />