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600,000 acre foot shortage: In years when Lake Mead content is projected on January 1 to be below 1025 ft., a quantity of 600,000 acre-feet shall not be released or delivered in the Lower Division States and Mexico. 4. The three conditions described above are illustrated in Figure 2. Figure 2 Lake Mead Ste Shortage Mead Elevation (ft) Stepped Shortage Mead Live Storage 1075 to 1050 400 kaf 9.37 to 7.47 maf <1050 to 1025 - 500 kaf ----------------- -------- 7.47 to 5.80 maf <1025 to 1000 ----------------------------------------- 600 kaf 5.80 to 4.33 maf <1000 Increased reductions to be consistent with consultation(s) <4.33 maf The United States, through the appropriate mechanisms, should implement a shortage pursuant to Article 10 of the 1944 Treaty in any year in which the Secretary has declared that a shortage condition exists pursuant to Art. II(3)(3) of the Decree. The total quantity of water that will not be released or delivered to Mexico shall be based on Lower Basin water deliveries during normal water supply conditions. The proportion of the shortage that shall be borne by Mexico will be 17% (1.5 maf / 9 maf x 100% = 17%). 6. Arizona and Nevada will share shortages based on a shortage sharing agreement. In the event that no agreement has been reached, Arizona and Nevada will share shortages in accordance with the 1968 Colorado River Basin Project Act, the Decree, other existing law as applicable, and the Interstate Banking Agreement between Arizona and Nevada parties. 7. Whenever Lake Mead reaches elevationl025 ft., the Secretary will consult with the States to determine whether Colorado River hydrologic conditions, together with the delivery of 8.4 million acre-feet of Colorado River water to Lower Basin users and Mexico, will cause the elevation of Lake Mead to fall below 1000 ft. Upon such a determination, the Secretary shall consult with the states to discuss further measures that may be undertaken to avoid or reduce further increases in shortage determinations. If increased reductions are required, the Secretary shall implement the reductions consistent with the law of the river. 8. The States will evaluate factors at critical elevations that may avoid shortage determinations as reservoir elevations approach critical thresholds. The States may provide operational recommendations surrounding the critical elevations at some later date. 6