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the FWS believes are necessary to fully protect the species. Of this total amount of water, 70,000 acre feet will be provided by water re- regulation projects in each of the states: the Tamarack Project in Colorado, an environmental storage account in Lake McConaughy in Nebraska, and a storage account in an enlarged Pathfinder Reservoir in Wyoming. The balance of the water needed to meet the Program water goal will be provided through as- yet unspecified water conservation and supply projects in the basin. Through the first increment, the parties will contribute cash and cash equivalents totaling $75 million to fund program administration and the acquisition of land and water to meet program goals. Cash equivalents involve the value of land and water contributed to the program. Contributions through the first increment will be as follows: • $15 million by Colorado -- $10.8 million in cash and $4.2 million in water from the Tamarack Project. • $15 million by Nebraska -- $5.3 million in land, $9 million in water from Lake McConaughy, and $700,000 in cash. • $7.5 million by Wyoming -- $4 million in cash, and $3.5 million in water from enlarged Pathfinder Reservoir. • $37.5 million by the federal government, in cash. Each state will develop its own program to mitigate the effects of new water development. The Colorado framework links the anticipated impacts of water development to increases in human population. The Colorado program looks at six basic sources of water supply that will be developed to serve new population, some which will add water to the system, others which will deplete water from the system. As new people move to the Front Range, the overall effect of this new water development will increase South Platte flows in the fall, winter and spring, and decrease flows in the summer. To mitigate this effect, Colorado will implement new water regulation projects, like the Tamarack project, to shift river flows back to the summer period. The program will provide the required regulatory compliance under the ESA to offset alleged effects to endangered species and their habitats of all existing and new water projects, as long the Program milestones are met. If the program expires or if activities under the program are not adequately completed, the FWS may reinitiate consultation on all permits that have relied on the program as the reasonable and prudent alternative. Before doing so, the FWS must discuss the issues and seek resolution through the Governance Committee. Through the reinitiation process, Colorado may continue its activities, and there will be a presumption that the Colorado program avoids violation of the ESA with respect to all permits in Colorado covered by the program. After that point, there is no assurance that the Colorado programs will be adequate to offset the effects of water project development and use. However, the FWS will consider the Colorado program in the development of any new reasonable and prudent alternatives for such development. ii