BOARD00320

• Board Meeting Date: 3/21/2006
• Description: WSP Section - Colorado River Update on 7-State Proposal to Reclamation
• Board Meetings - Doc Type: Memo

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Agenda Item 6
March 21-22 Board Meeting
Page 2 of5

Kuharich, Scott Balcomb and Jim Lochhead with support from myself as Colorado's
representative to the Technical Group.

On January 31, 2006, after three days of intense discussions, representatives of the 7-
Colorado River Basin states reached tentative agreement on a set of recommendations to
Secretary of Interior Norton for consideration by Reclamation during the NEP A scoping
process for the development of shortage guidelines for the Lower Basin and for the
coordinated operations of Glen Canyon and Hoover Dams under low reservoir
conditions. The Basin states recommendations are contained in three documents: I) a
transmittal letter to Secretary Norton, 2) a Seven Basin states' Preliminary Proposal
Regarding Colorado River Interim Operations, and 3) a draft Basin states agreement.
These three documents were sent to Secretary Norton on February 3, 2006 and are
attached hereto.

It is anticipated that as the Basin states and stakeholders continue through the NEP A
process that both the preliminary proposal and the draft agreement may be refined and
more detail added, and additional agreements developed as necessary among the parties
to implement the recommendations made to Interior.

Leeal Issues Set Aside:
I. Lower Basin Overuse - Lower Basin uses averaged 7.989 maf from the mainstem,
2.508 maf on the tributaries and there was 1,321 maf of evaporative losses from
Lakes Mead, Mohave, Havasu and Imperial during the 1996-2000 time frame, Some
ofthe uses were the result of surplus conditions. The use of surplus and unused
allocations in one state creates no recurrent right to the use of such waters,
2. Tributary Uses - Arizona argues that they have unrestricted use of tributary water
contrary to the plain reading ofthe Colorado River Compact. The Compact allowed
for only an additional 1.0 maf of tributary use, Nevada's efforts to develop a
Virgin\Muddy River pipeline to support Las Vegas rapid growth raised the tributary
issue to the forefront
3. Mexican Treaty Deliveries - The Upper Basin is being charged for one-half of the
Mexican Treaty obligation pursuant to the 1970 Coordinated Long-Range Operating
Criteria. Tributary inflows under today's conditions average about 1.3 maf, even in
light of the Lower Basin's current uses.
4, Coordinated Long-Range Operating Criteria - The Criteria in order to maintain
the respective legal positions of the states in 1970 have created a large disparity in
reservoir storage during significant droughts. Lake Powell absorbs all the effects of
the drought on the front end while Lake Mead absorbs the drought impacts on the
backend until Lake Powell recovers to an elevation that is at or above the 602(a)
storage leveL Calculation of 602(A) storage requirements and the inclusion of
minimum power protection and an annual delivery by the Upper Basin of one-half of
the Mexican Treaty obligation are the areas of dispute,

2005-2006 7-Basin State Discussions:
7-Basin State Goals - Setting aside the legal issues, the goals of these discussions were
to minimize the shortages that the Lower Basin would incur and to avoid the possibility