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<br />i921. <br /> <br />Waler Righls Under Slate Law <br />Public agencies in California hold appropriative <br />rights, valid in srate law, for the beneficial consump- <br />tive use of water from rhe Colorado River, some initi- <br />ated as ear\v as 1877, The total entitlement under such <br />rights vested prior to June 25, 1929, the effective date <br />of the Colorado Ri\'er Compact and the Boulder Can- <br />yon Project Act, was greatly in excess of thc 5,362,000 <br />acre-feet per annum set forth in the California Water <br />deli\.erv contracts with the Secretary of the Interior. <br />\Vorks. now in operation are of sufficient aggregate <br />capacity to put that quamity and more to beneficial <br />consumptive use in the stolte. <br /> <br />Hoover Dam Power Contracts <br />In 1930 the Secretar\' executed a contract under <br />which the Cit\, of Los Angeles Department of 'Vater <br />and Power an'd the Southern California Edison Com- <br />pany hec.lme lessees of the Hoover powerplant, obli- <br />gated to generate energy at cost to other allortees, of <br />which The Metropolitan \Vater Disrrict of Southern <br />C;})ifornia was the major one, under a separate energy <br />purchase contract with the Secretary. Ultim:nely <br />other California enciries and the states of Arizona and <br />Nevada contracted for the purchase of energy, The <br />general effect of the 1930 contracts. however, was to <br />obligate the California contractors for 100 percent of <br />the firm energy. In essence, they undenvrote the en- <br />tire cost, since the Arizona and Ne\'ada arrangements <br />were on a "tnke or relinquish" basis. (See Appendix 1) <br />Arizona and 1\Tevada have sjncc contracted for their <br />shnres, and no\\. the great plant is a tremendolls boon <br />to the entire Southwest. <br /> <br />The California contracts were modified in 1940 to <br />adjust the interest rate and to provide for payments <br />of $300,000 a vear each to Arizona and Neyada in lieu <br />of taxes and o'f $500,000 a vear into a Colorado River <br />Development Fund, in addition to repayment of direct <br />COsts. <br /> <br />Waler DelivenJ COlltracts <br />In compliance with the terms of the Boulder Can- <br />yon Project Act, California agencies in the period 1930 <br />to 1934 executed contracts with the Secretarv of the <br />Interior for storage and deliven" of wat~r from <br />Hoover Dam Reservoir (Lake M';ad) , They call for <br />a total net diversion of not less than 5,362:000 acre- <br />feet of water a year, a quantity thought to be well <br />within the bounds of the Limitation Act, although <br />the contracts are subject to the availability of water <br />under the Colorado River Compact and the Boulder <br />Canyon Project Act. Diversion works .md converancc <br />facilities of sufficient capacity to utilize the entire <br />amount and more are constructed and in operation. <br /> <br />Seven-Party Agreement <br />Prior to execution of the water contracts and in <br />response to a request by the Secretary, the California <br /> <br />entities in 1931 agreed among themselves as to their <br />relative priorities of right to Colorado River water. <br />This seven-party priority agreement was made a part <br />of each water delivery contract, The first three pri- <br />orities go to the agticulrural agencies, leaving The <br />Metropolitan \Vater District relativelv low on the <br />scale, except for certain rights to wate; in Lake Mead <br />a.ccumulated to its credit by reason of reduced diver- <br />sIOns. <br /> <br />Total of the first three is 3,850,000 acre-feet a year, <br />leaving Metropolitan onl,\' 550,000 acre-feet of the <br />7,500,000 apportioned to the Lower Basin b\' the Com- <br />pact, since California by its Limitation Act is held to <br />only 4,400,000 acre-feet of that basic quantity, The <br />remaining 662,000 acre-feet a year of 1\1erropolitan's <br />right, and any additional water for the agricultural <br />agencies, must come from the "excess or surplus" re- <br />ferred to in the Project Act and Limitation Act, (See <br />Appendix 2) <br /> <br />At the time the seven-parry agreement was reached <br />in 193 I, it was generally believed that there would be <br />ample "excess or surplus" water beyond the 4.4 million <br />acre-feet basic quantity to pro~ide the remaining <br />6621000 acre-feet of Metropolitan's contract amount. <br />plus additional water for the agricultural agencie" <br /> <br />Mexican Water Treaty <br />For its last 7 5 miles, Colorado River flows through <br />Mexico, and even before 1922 a considerable area of <br />land south of the border was irrigated from the stream, <br />J\1exicnn officials watched with some apprehension <br />the rapid rise in water use in the United States, and <br />ahollt 1940 began negotiations with this country as to <br />an international division of the Water. <br /> <br />In 1945 the Mexican \Vater Treaty was ratified, <br />over the opposition of California and Nevada, guaran- <br />teeing Mcxico 1,500,000 acre-feet a year of Colorado <br />River water, twice as much as was anticipated in the <br />United States prior to the negotiations, Because the <br />Treaty guarantee is a first lien on the river, it creates <br />a legal Water shortage in the United States to be added <br />to the natural shortage that has been developing since <br />1930 by reason of a drop in the natural flow of the <br />Colorado, <br /> <br />A primary function of Davis Dam, completed on <br />the Colotado by the United States in 1950, is to re- <br />regulate the flows released from Hoover Dam into <br />the delivery schedules set up under the rernlS of the <br />Treaty. <br /> <br />Upper Colorado River Basi.. Compact <br />California is, of course, not signatory, but the Upper <br />Colorado River Basin Compact is of interest because <br />of the method used in it to divide water among the <br />signatory srJ.tes, because of some of its terms and defi- <br />nitions and because it is a part of the Law of the <br /> <br />14 <br />