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challenging. <br />Implementation of the Quantification Settlement Agreement faces a number of <br />challenges. We recognize that state court litigation in California is proceeding and none of us <br />knows for certain what the outcome will be. Lining of the All- American Canal, a centerpiece of <br />California's plan to reduce its use of the Colorado - faces increased international scrutiny. <br />Moreover, none of us should underestimate the hard work facing the Imperial Irrigation District <br />as it ramps up its water conservation activities according to the QSA's transfer schedule. <br />Turning back to the Arizona Water Settlements Act of 2004, which President Bush <br />signed into law last December, all of the parties in Arizona are working hard to implement this <br />historic settlement. An enormous amount of hard work remains. The Act requires that a number <br />of actions, including Reclamation contracting, State Court proceedings and numerous <br />agreements be completed by December 31, 2007. If not, the Act becomes ineffective and, in <br />essence, it's back to the drawing board. Reclamation is committed to making the necessary <br />investment of our resources to meet the target. <br />Lastly, the MSCP is now under way. I'm pleased to publicly announce that Reclamation <br />has chosen Lorri Gray to serve as Program Manager and oversee the MSCP. Those of you who <br />worked on the MSCP know how dedicated Lorri was to getting that program up and running. <br />Lorri made many sacrifices to complete development of the MSCP - and, as many of you did, <br />she worked early mornings, late nights and weekends, taking time away from her family life, to <br />see that the MSCP implementing documents were complete, thorough and finalized. The hard <br />work paid off. <br />As the MSCP gets under way in its first year, Reclamation will be focused on three key <br />areas: <br />Establishing management processes with the partners to ensure both visibility and <br />transparency for Reclamation's implementation of the Program; <br />Developing partnerships with state fish and game offices as well as local <br />communities; and, <br />Identifying available parcels of land and beginning the planning process for <br />habitat development. <br />We're excited to be moving forward with this program. We've already seen encouraging <br />signs that a number of groups committed to environmental restoration of the lower Colorado are <br />considering joining the effort. We believe that this program, designed at more than $600 million, <br />and indexed to rise with the rate of inflation over the 50 year term of the Program, will provide <br />great benefits to a broad range of listed species - and just as importantly will prevent additional <br />listings. <br />Prepared Remarks - Keynote Address <br />Law of the Colorado River 5 <br />