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<br />such guidelines fmal in order to give California an opportunity to put in place a <br />realistic strategy to assure that it will be able to reduce its use when necessary, or to <br />meet its needs from sources that do not jeopardize the entitlement of others. <br /> <br />Banking <br /> <br />I continue to believe, as I observed last year, that some forms of banking, <br />which may include top-water banking, are useful tools that can contribute to more <br />effective management of the River, encouraging additional conservation. Since <br />conservation incentives are one of the most important tools we have in encouraging <br />efficient use of the limited resource we have, I believe banking should remain in our <br />arsenal of techniques. However, considering the intense level of controversy top- <br />water banking spawns, I believe formal regulatory consideration should be left to a <br />later time. I shall, however, stand ready to entertain specific proposals for top-water <br />banking that are put before me, on a case-by-case basis, particularly where there is a <br />potential to demonstrate innovative conservation methods. Any such proposals will <br />be subject to public review and input from interested parties. <br /> <br />The San Luis Rey Settlement <br /> <br />I am distressed that we have still not been able to effect a settlement of water <br />rights claims with the five bands ofIndians in San Diego County, and I intend to <br />continue to search out means, with the cooperation and participation of California <br />stakeholders in the Colorado River, to effectuate a settlement consistent with the <br />law enacted by Congress in 1988. Securing such a settlement is in my view key to <br />advancing Colorado River issues of interest to the State of California. <br /> <br />Conclusion <br /> <br />Before closing, I want to emphasize that I have been addressing only Lower <br />Basin matters, and only water supply problems, not environmental issues, which are <br />being addressed in separate forums. I also want to <br />reiterate my commitment to working within the Law of the River, and to assuring <br />that the entitlement of each contractor and of each Basin State is <br /> <br />7 <br />