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3. If the State E~gineer determines in writing to the Owners and the Water Users that Compact waters are not required for interstate delivery in the year of storage, such waters are thereby relinquished to beneficial uses in ~olorado .in accordance with this Agreement. Compact Waters, for which the State Engineer has made no order of relinquishment by December 31 in any year shall automatically be deemed available for beneficial uses in Colorado in the fallowing year in accordance with the fOllowing plan of distribution. 4. Upon any determination by the State Engineer that Compact Waters are not required for interstate delivery in the year of capture, Compact Waters then in storage shall be divided in two equal shares for distribution as follows: a) one-half to the Owners of the Pre-Compact Re'servoirs, and b) one-half to the direct flow rights on the Rio Grande mains~em. "Irrespective of which reservoir actually impounds Compact Waters, Compact Water that passes to the Owners under this plan of distribution shall be divided equally between the San Luis Valley Irrigation District and the Santa Maria Reservoir Company. The Owners shall be entitled to use and dispose of the wate! "so allocated to them as if such water were stored under exercise of their own priorities. The" one-half interest held for the direct flow rights on the Rio Grande mainstem shall be released pursuant to call by the Board of Directors of the Water Users, it being intended to allocate such waters in the irrigation season fallowing the year in which Compact Waters are impounded in three separate releases, with: a) the first release commencing at a time generally benefitting those junior direct flow rights diverting water when the River flow is estimated by the Board to have reached its annual peak and water can be beneficially used, - 3 -