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Agenda Item 14e January 23-24, 2002 Board Meeting Page 6 of7 basin. Outside of ALP, which also benefits New Mexico, Colorado has been allowed to . proceed with less than 10,000 AF of new development. Thus, Colorado needs to develop an equitable position with respect to significant new water development projects in neighboring states which development relies on either the use of unused apportionment in another state or precludes further development in a portion of Colorado. Colorado's position should also consider how the basin states have dealt with overuse of compact apportionment by California. Staff sees a clear need for New Mexico, Utah and Arizona to bring closure to a water rights settlement with the Navajo Nation, Such a settlt,ment should be accomplished within the "Law of the River," Such a settlement with the Navajo Nation should not be treat differently than those with other Tribes, New Mexico should not be treated any different than California when asked to live within their compact apportionment. Observations As staff reviews the Navajo-Gallup Project, there is a clear need for additional water supplies on Project lands, The Navajo-Gallup Project is certainly one of the more feasible options, and the Navajo Nation and New Mexico clearly want to resolve the issues and proceed with the Project. We need to continue to talk with the Navajo Nation and New Mexico about solutions that would allow a Navajo water rights settlement to occur and provide additional water to areas clearly in need of it. 4t Staff circulated the September 14, 2001, memorandum to the Upper Colorado River Commission and other Upper Basin States for review and comment. We have received verbal comments from New Mexico which are reflected in .this memorandum and a written response from Utah which was previously provided to the Board, These responses were not unexpected given the water needs in certain portions of these states, However, the responses do indicate a clear need to work through the Upper Colorado River Commission to arrive at a position that can equitably protect and benefit each state, At the November Board meeting, staff was directed to seek comments on the proposed policy from the Colorado River Policy Advisory Council and interested parties in the San Juan Basin, Additionally, the Upper Colorado River Commission discussed this matter at their December 2001 meeting in Las Vegas and the Colorado River Basin 1 States will be discussing the matter on January 16,2002, Attached is a letter from Jim Lochhead that represents the position of some San Juan Basin interests and most of the Colorado River Policy Advisory CounciL In short, their advice is to defer adoption of a policy at this time and coordinate and orally communicate our concerns through our Upper Colorado River Commissioner and the Governor's representatives on Colorado River matters, .