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~ I- , - - ., ~ process requires that these items be pursued soon if they have any chance of being addressed this year. Mexican Treaty Nel!otiations . Arizona will bring a draft letter to the January 31 meeting requesting that Interior and State pursue ASAP shortage negotiations with Mexico through the IBWC . CR Basin States want Interior and State to define the process which they know will be lengthy . Interior wants a dialogue with the 7-States on this matter (sec. Wymer) . Mexico's proportionate share of approximately 9.0 MAP is about 17% Bill Swan of Imperial raised the issue that there might not really be enough savings in this area to be worth our time. Arizona is vitally interested in pursuing this, because if they have to take a short in the future, sharing it with Mexico would help reduce their pain. Coniunctive Use Principals . Lower Basin Conditions for maintaining water levcls in Powell 1. Keep Lower Basin whole over time (Mass balance of benefits to Powell and Mead as against the Minimum Objective Release from Powell. They want the base kept at 8.23 maffor this) Note that this assumes 100% deficiency in meeting the Mexican treaty as they evaluate being made whole. 2. Remain in place through 2016 and review criteria in 2016, including the 8.23 MAP MOR 3. Need to develop trigger elevations in both Powell and Mead 4. Need to protect elevation 1050 in Mead, return to 8.23 or more if necessary in order to stay above 1050. At one point they said the Powell reduced release would stay in place until the Lower Basin goes into a shortage which would be about elev. 1050...?? 5. Need a payback timeframe 6. There must be benefits to both basins 7. There would be no compact calls against the VB during this time frame. I don't know how much they are really giving us here as Powell would need to fall to the dead pool for a call to be made and the odds for this are much lower( about 2%) than hitting one of the crises elevations at Mead which go up to 44%. 8. We added with respect to interim surplus guidelines, that such would be effectively suspended during shortage operations 9. I believe we also added that in order to absolute protect 1000 means that there are shortages to the Lower Basin, but did not define shortage. We had a discussion of these conditions related more towards a full understanding and without any commitments by anyone to anything. My personal feeling is that while paybacks are not a good idea, if there is a guarantee of no calls or curtailments against the Upper Basin, there maybe some room for discussion.