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<br />l'f'o"r'r: . <br />,i''' .:. .J it.) <br /> <br />. <br /> <br />solution would be for BEP to request to be excluded from PVID's service area. I understand <br />that BEP also has discussed with PVID the possibility of receiving water from PYID's <br />Colorado River entitlement. <br /> <br />. New applications - There are about 10 new applications requesting a total of 15 acre-feet of <br />water that have been received during the past few months. These applications have been <br />reviewed by the Board staff and are determined to be eligible to receive Project water. I am <br />planning to place these and any other application that the Board may receive, on the Board's <br />consent calendar in August. <br /> <br />. Needles' Subcontract - The subcontract document between Needles and applicants for Project <br />water has been reviewed by the Solicitor's Office. Reclamation and the City of Needles are <br />attempting to reconcile the solicitor's comments and incorporate language into the final <br />document. Reclamation has indicated that it is ready to recommend about 300 approved <br />applications, which will be forwarded to the City of Needles to execute subcontracts with the <br />applicants. <br /> <br />Operation of the well field - At a meeting in Yuma on June 12th with representatives from the <br />CRB, City of Needles, BLM, and lID, Reclamation indicated that the well field should begin <br />operation and pump about 1,500 acre-feet of Project water this year to provide for use of water <br />by BLM, the City of Needles, and other current users. However, the costs associated with <br />operation of the well field are of concern to the City of Needles without a revenue stream <br />being in place to cover the costs. A possible revenue stream could be provided through an <br />Advanced Delivery concept. This concept was discussed with Reclamation and Reclamation <br />indicated its willingness to consider it. <br /> <br />. Advanced delivery concept - I have reported at previous Board meetings that based upon the <br />applications that have been received, the amount of water requested for current use of the <br />Project water is less that 1,500 acre feet, including the City of Needles and BLM's use. With <br />such a small use of Project water, the operation and maintenance cost of the Project becomes <br />prohibitive. An advanced delivery concept has been developed to make these costs more <br />reasonable. A white paper discussing this issue is included in the Board folder. Based on this <br />concept, the unused capacity ofthe Project well field, up to 6,500 acre-feet, would be pumped <br />and delivered to a potential user (e.g., CVWD or MWD) at a minimum cost (O&M costs). <br />The water used will be paid back in the future through an exchanged and forbearance <br />agreement. The amount of water available for advance delivery depends on whether the BEP <br />applies for Project water. The concept may lose its necessity and importance to the Project <br />if the BEP is approved as a Project water user. However, the advanced delivery concept can <br />still be beneficial to Project water users even with BEP. <br /> <br />9 <br />