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<br />OOll517 <br /> <br />December 17,1997 <br />DRAFT <br /> <br />LeQallssues <br /> <br />There have been long-standing disagreements among the agencies within <br /> <br /> <br />California on certain issues. Some of these issues need to be resolved by further <br /> <br />negotiation, administrative action, litigation or legislation. Recognizing the mutual benefits <br /> <br /> <br />of proceeding with implementation of the Plan, the agencies hope definitive resolution of <br /> <br /> <br />these legal issues will be resolved by agreement or deferred, making resolution by other <br /> <br /> <br />methods unnecessary. These issues include, without limitation, the following: legality of <br /> <br />transfers; reasonable and beneficial use; wheeling arrangements; banking in Lake Mead; <br /> <br />subordination/priorities; administration of Present Perfected Rights not included in <br /> <br /> <br />Califomia's Seven Party Agreement; forfeiture/abandonment based on historical average <br /> <br />use. Approval of this Plan by any party is not intended and shall not be construed as a <br /> <br /> <br />waiver of its position on any deferred legal issue. <br /> <br />Phases of 4.4 Plan <br /> <br />The Plan will be implemented in two phases. During the first phase, which is <br /> <br /> <br />between now and the year (2010 or 2015), programs will be implemented to reduce <br /> <br />Califomia's annual use of Colorado River water from about 5.2 MAF to approximately 4.6 <br /> <br />to 4.7 MAF per year through firm and non-firm transfers. Also during the first phase, <br /> <br />programs will be identified and staged for implementation during the second phase. The <br /> <br />second phase will commence in the year (2011 or 2016). During the second phase, <br /> <br />programs will be implemented to allow California to meet its Colorado River water needs <br /> <br />c:I...144p1rv17.wpd <br /> <br />4 <br />