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I. INTRODUCTION <br />l.l. Historical Context. <br />One of the great paradoxes among several notable ones in the history of western water law <br />and policy is that it is characterized both by intense levels of conflict and by remarkable episodes of <br />cooperation. Further, both of these modes of interaction have been played out from the smallest to <br />the grandest of scales -- from disputes among nineteenth century miners on the same mountain <br />stream which gave rise to the prior appropriation system, to interstate disputes involving entire <br />river basins and millions of acre-feet of water that resulted in compacts allocating water among <br />states. <br />When negotiators from seven western states assembled in Santa Fe in 1922 to craft the <br />Colorado River Compact, they were impelled by a common understanding that the alternative to <br />agreement was grim indeed: water rights litigation of unprecedented scope, complexity, expense, <br />and duration. Upon refusing to ratify the Compact, the state of Arizona did indeed spend much of <br />the next half-century seeking to establish its rights against California and Nevada in court, while <br />the upper Colorado River Basin states divided waters allocated to the upper half of the river <br />peaceably among themselves in 1948. <br />It was in the spirit of these Colorado River compacts that representatives of the states of <br />Colorado, Utah, and Wyoming, water user groups, environmental organizations, and the U.S. <br />Department of the Interior in 1988 reached agreement on how the Endangered Species Act should <br />be implemented in the Upper Colorado River Basin with respect to the endangered fish species. <br />Their agreement took the form of the Recovery Implementation Program for Endangered Fish <br />Species in the Upper Colorado River Basin (U.S. Fish & Wildlife Service, 9/29/87), the purpose <br />of which was to recover the endangered fish species in the Upper Colorado River Basin while <br />water development proceeds in the Upper Basin. The endangered species include the Colorado <br />1-1 <br />