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<br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />Mr. Ronald R. Gastelum <br /> <br />2 <br /> <br />applicable provisions of the Interim Surplus Guidelines, the Full Domestic Surplus! will govern <br />releases for use in the Lower Basin States of Arizona, Nevada, and California during CY 2003. <br /> <br />In the event the Quantification Settlement Agreement and its related documents are executed on <br />or befure December 31, 2002, a Full Domestic Surplus will exist and Reclamation is authorized to <br />deliver Colorado River water to MWD in CY 2003 in accordance with the terms of these <br />agreements. Specifically, the Department will reduce MWD's request of 1.25 maf consumptive <br />use by 121,400 at;> and approval is granted Reclamation to deliver 1,128,600 af consumptive use <br />amount for MWD. Should the actual consumptive use of Priorities 1,2 and 3b be less than the <br />total approved during CY 2003, that amount of water will be made available to MWD in CY <br />2003. <br /> <br />Approved Water Order ifOuantification Settlement Agreement is Not Executed <br />bv December 31. 2002 <br /> <br />The 2003 AOP also provides that in the event that the Quantification Settlement Agreement and <br />its related documents are not executed by December 31, 2002, consistent with applicable <br />provisions of the Interim Surplus Guidelines, the Normal determination will govemreleases fur <br />nse in the States of Arizona, Nevada and California during CY 2003 in accordance with Article <br />II(B)(I) of the Decree. In accordance with this determination, there will be no surplus water <br />available to the Lower Basin States of Arizona, Nevada and California. In such an event, <br />Colorado River water contractors in California will be limited to 4.4 maf of consumptive use of <br />Colorado River water. Thus, based on water orders received by Reclamation for 2003, demand in <br />California will exceed supply and the availability of water to junior users will depend on the <br />quantity approved for senior right holders. <br /> <br />In the event the Quantification Settlement Agreement and its related documents are not executed <br />on or before December 31, 2002, a Full Domestic Surplus will not exist and Reclamation is <br />authorized to deliver to MWD the maximum quantity of water legally available to MWD in light <br />ofthe Secretary's detennination of available CY 2003 supplies and in light of the approved water <br />orders of senior right holders. <br /> <br />In a normal year in which 4.4 maf of Colorado River water is available to the State of Califurnia, <br />MWD is entitled under its 1931 contract to such water as it can put to beneficial use, subject to <br /> <br />1 A "surplus"condition exists "if sufficient mainstream water is available for release, as determined by the <br />Secretary of the Interior, to satisfy annual consumptive use in the ... States [of Arizona, California and Nevada] in <br />excess of7,500,OOO acre-feet ..... Arizona v. Califurnia. 376 U.S. 340, 342 at Art. ll(B)(2) ("1964 Decree'). <br /> <br />2 This'reduction is pursuant to the Quantification Settlement Agreement and Reclamation's proposed <br />Inadvertent Overrun and Payback Policy in which MWD's order would be reduced by the amount Priorities 1, 2 <br />and 3b consumptive use orders are over 420,000 af Palo Verde Irrigation District's consumptive use order (with <br />estimated measured and unmeasured returns) is 502,900 afand Yuma Project Reservation Division (with estimated <br />measured and unmeasured returns) is 38,500 af. <br />