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<br />Discussion <br /> <br /> <br />This memorandum updates the information in the July Board memorandum, The . <br />updates are in bold print. <br />Arizona and others have argued that with the adoption of the Interim Surplus <br />Operating Criteria that the Secretary's temporary use of the conserved water from the <br />lining of the Coachella Canal is now over, They argue that under the limited surplus <br />declaration that all water delivered to California is now used as contracted for and there is <br />no longer any salvaged water available. As a result, the Secretary should either begin <br />operation of the Yuma Desalter or find another source of water of suitable quality to <br />offset the need to operate the Desalter, None action would mean that the US, would <br />begin to accumulate a debt against this obligation; <br />California and a number of special interest groups do not agree with this <br />position and copies of their letters to Reclamation on this matter are attached. <br />Reclamation has not taken a formal position on the matter, but has refused to seek a <br />Solicitor's opinion on the issue. <br />The legal and policy questions under discussion are: <br />1, Has in fact the "interim period" during which the Secretary may utilize the water <br />conserved by the lining of the Coachella Can,al to offset the need to operate the Yuma <br />Desalter legally ended? <br />The answer to this question is very uncl~ar and there are good arguments on <br />both sides, The "interim period" is over if in declaring a limited surplus all <br />water is contracted and accounted for, If it is over, the V,S. can not and should <br />not be allowed to accumulate a debt or take 118,000 AF from reservoir storage, <br />The V,S, should be treated no different than any contractor and forced to meet . <br />its obligations. <br />