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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 />
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