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I' U . " l~ . lj-1.. River. and authorized the construction of the Hoover Dam. One of the principal issues con- cerned the allocation and apportionment of the lower basin's share of water among the States 01 California. Arizona. and Nevada. The Court con- cluded that "It]he Secretary ollhe Interior could make contracts for the sale and delivery of water stored in Lake Mead above Hoover Dam. and the use of such waters was prohibited without such a contract:,11 Non-Exportation Laws The controversy surrounding the coal slurry pipeline issue emphasizes the concern states have about sharing the water within their borders with other states. "As sources of supply become increasingly critical, states are raising jurisdiC- tional barriers to water exportations; and lor the first time, questions are being raised as to the right of the state to preempt the use 01 water either directly by legislative proscriptions on extra-territorial diversions, or Indirectly by narrow definitions of lawful beneficial uses."12 In an effort to conserve and protect their groundwater resources. a number of states have enacted statutes that prohibit the exportation of water, either absolutely or under certain con- ditions. For example, the City of EI Paso, Texas has brought suit against New Mexico in federal court seeking to have a New Mexico statute which prohibits the exportation of groundwater declared unconslitutional.13 Two Nebraska landowners appealed to the United States Supreme Court to reverse a decision of the Nebraska Supreme Court upholding the con- stitutionality of a state statute prohibiting the exportation of groundwater to a state which does not grant similar reciprocal privileges in State ex. reI. Doug/as v. Sporhase.14 The United States Supreme Court reversed this decision holding that the reCiprocity requirement violated the Commerce Clause of the U.S. Constitution as being an unreasonable burden on interstate commerce.15 There are clearly a number of factors influenc- ing the validity of restrictions in non-exportation statutes. The U.S. Supreme Court's determin- ation that water is an article of commerce re- quires that state groundwater regulations not be unreasonable burdens on commerce. The con- servation and preservation of diminishing sources of groundwater was recognized by the Court as legitimate and important aspects of groundwater regulation. The Court goes on to say that. The State's interest in conservation and preservation 01 groundwater is advanced by the first three conditions in 946-613.01 lor the withdrawal 01 water lor an interstate transfer. Those requirements are that the withdrawal of the groundwater requested is reasonable, is not contrary to the conser- vation and use of groundwater, and is not otherwise detrimental to the public welfare. 16 The Court further suggests that. If it could be shown that the State as a whole suffers a water shortage. that the intrastate transportation of water from areas of abundance to areas of shortage is feasi- ble regardless of distance. and Ihat the importation of water from adjoining States would roughly compensate for any exporta- tion to those States, then the Conservation and preservation purpose might be credibly advanced lor the reCiprocity provision. A demonstrably arid state conceivably might be able to marshall eviaence to establish a close means-end relationship between even a total ban on the exportation 01 water and a purpose 10 conserve and preserve water.17 The particular language of Ihese statutes and their impact on interstate commerce will be strictty scrutinized to determine if they are facially discriminatory. Grayrocks The Grayrocks Dam and Reservoir are located on the mainstem of the Laramie River, 10 miles upstream from the mouth, a major tributary of the North Platte River in Wyoming. They provide the primary source of water for the operation of a coal-fired steam electric generating plant. known as the Laramie River Station, located northeast of Wheat land, Wyoming. The dam, reservoir, and power plant together comprise the Missouri Basin Power Project, commonly known as Ihe Grayrocks Project. The Rural Electrification Association (REA) granted a loan guarantee for the Project in 1976 and the Omaha District of the U.S. Army Corps of Engineers (Corps) issued a construction permit in 1978. The reservoir is expected to have a normal storage capacity 01 approximately 104,100 acre.feet. Both the North Platte and Laramie rivers are fairly heavily controlled as the United States Supreme Court has issued decrees affecting both rivers. The State 01 Nebraska became con- cerned early as to the pOSSible effect the Gray- rocks reservoir would have on North Platte River Ifows and particularly wintertime flows, much of which IS slored in downstream Lake McCon- aughy. Nebraska's Objective then became two- fold: (1) to limit the amount of water consumed by the power plant to a minimum, and (2) to obtain guaranteed releases lrom the reservoir to main- tain North Plalle streamllows. 2.3