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f" . . December 12, 2005 Page 14 of15 Working Draft for Discussion . Shortage Guidelines for the Operation of Lake Mead Shortage declarations made by the Secretary would be triggered at Lake Mead elevations so as to provide protection for future water deliveries to the Lower Division States. One shortage strategy that has been considered is: 1. For Mead elevations between 1,075 finsl and 1,050 finsl, the shortage reduction should be 400,000 acre-feet (at). 2. For Mead elevations between 1,050 finsl and 1,025 finsl, the shortage reduction should be 500,000 af. 3. For Mead elevations beginning at elevation 1,025 finsl and below, the shortage reduction should be 600,000 af. The Lower Division States will also consider other trigger elevations and stepped shortage reductions, as well as, the use of a protection or absolute protection elevation level in Lake Mead in order to protect senior rights and for the secondary benefit of maintaining use of the SNW A intakes. . Declared shortages are to be shared proportionally with Mexico based on the reduction in water deliveries from a normal condition. The shortage to be borne by Mexico would be detennined in accordance with the 1944 treaty between the United States and Mexico. Arizona and Nevada would proportionately share shortages based on the provisions of the 1968 Colorado River Basin Project Act, the terms of water delivery contracts, and the Nevada Interstate Banking Agreement with the Arizona Water Banking Authority. A shortage sharing agreement between Arizona and Nevada would determine the proportionate reductions for each state. Hydrologic conditions could necessitate reductions in excess ofthe maximum reduction contained in the guidelines, for example 600,000 af. Such an event . 14