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<br />. <br /> <br />. <br /> <br />.t. <br /> <br />of the Operating Criteria unless spill avoidance and/or the storage equalization criteria <br />in Article II(3) is controlling. <br /> <br />. Lower Basin Deliverv: Under the most probable inflow scenario, downstream deliveries <br />are expected to control the releases from Hoover Dam. The Partial Domestic Surplus <br />condition is the criterion governing the operation of Lake Mead for calendar year 2004 <br />in accordance with Article ill(3)(a) of the Operating Criteria and Article II(8)(I) of the <br />Decree. <br /> <br />. Water Apnortioned but Unused: Reclamation does not anticipate any available unused <br />apportionment for calendar year 2004 at this time. However, if any unused <br />apportionment is available, the Secretary shall allocate any available unused <br />apportionments for calendar year 2004 in accordance with Article II(8)(6) of the Decree <br />and Section 1(8) of the ISG. <br /> <br />. 1944 U.S.-Mexico Water Treaty Deliverv: A volume of 1.5 mafofwaterwill be allowed <br />to be scheduled for delivery to Mexico during calendar year 2004 in accordance with <br />Article IS of the 1944 U.S.-Mexico Water Treaty and Minute No. 242 of the <br />International Boundary and Water Commission. <br /> <br />Navajo - Gal/up Water Supply ProjectlNavajo Nation Water Rights Settlement <br /> <br />Included in the Board folder is a copy of the Executive Summary from the proposed <br />Settlement Agreernent to resolve the claims of the Navajo Nation to the use of waters of the San Juan <br />River Basin in New Mexico in a manner that would inure to the benefit of the Navajo Nation and <br />the State of New Mexico. The proposed Settlement Agreement is intended to provide water rights <br />and associated water development projects, including the Navajo-Gallup Water Supply Project, for <br />the benefit of the Navajo Nation in exchange for a release of claims to water that potentially might <br />otherwise displace existing non-Navajo water uses in the Basin in New Mexico. The proposed <br />Settlement Agreement is currently undergoing review by the Navajo Nation, the State of New <br />Mexico and the United States. The New Mexico Interstate Stream Commission will take comments <br />on the proposed Settlement Agreement through January 15, 2004. <br /> <br />In fulfillment of this Agreement, the State of New Mexico, would transfer a portion of its <br />Colorado River apportionment from a diversion point in the San Juan River in the Upper Colorado <br />River Basin to places of use on the Navajo Indian Reservation located within the Lower Colorado <br />River Basin and the Rio Grande Basin. The transport of the water would be through a pipeline <br />nearly 100 miles in length. All of the water proposed for use in New Mexico would be a depletion <br />of the Colorado River at Lee Ferry, and would be charged against New Mexico's Upper Colorado <br />River Basin apportionment. <br /> <br />The Navajo Nation is seeking water right settlements from New Mexico, an Upper Basin <br />state, and Arizona, a Lower Basin state. New Mexico's proposal to take water from the San Juan <br />River to serve the Navajo in the northern portion of the Navajo Nation would entail a Colorado River <br />transbasin transfer, from the Upper Basin to the Lower Basin. As we have discussed in the past, <br /> <br />4 <br />