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<br />I <br /> <br />water supply to the valleys is unevenly dis- <br />tributed with respect to the demand. We have <br />the demand curve here in red. This is a <br />representative supply of surface water to <br />meet that demand. You will notice that we <br />have an excess early in the year and a deficit <br />late in the year. People down in the valley <br />are pretty darn smart and they found out there <br />were wells available in the area and they <br />could meet some of these deficiencies by in- <br />stalling wells. They installed wells then to <br />try and overcome this deficit that comes in <br />the late part of the year. In so doing they <br />created a serious problem and that is that <br />they affected the surface rights picture that <br />was long established. Now some people are <br />getting ground water supplies, they are sub- <br />tracting from the surface water supplies and <br />the rights structure has been thrown haywire. <br /> <br />As a consequence your Board has recog- <br />nized this problem. They proposed legisla- <br />tion. Jimmy Geissinger was given the charge <br />to come up with some legislation that could <br />be passed and that would help solve this <br />problem. I am sure that nobody is happy <br />exactly with the legislation but it looks <br />like we are going to have some this year. <br /> <br />This is one of the major points that I <br />have to make and that is, that at this time <br />this is when the payoff for these kinds of <br />studies start. At this particular time this <br />kind of information is going to be most <br />useful. In order to administer this water <br />this kind of information is required. <br /> <br />I <br /> <br />In the Arkansas Valley, which we have <br />used pretty much as a prototype, the princi- <br />pal techniques have been developed. First <br />we found out where the water is, then our <br />aim was to predict what would happen to the <br />water under various plans of water management. <br />We are nearing perfection of this particular <br />tool and we believe that it is perfected so <br />