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" ....., , ,0 l; , h pacts on the interstate streams on which no compacts currently exist. Description and Methods of Implementa- tion. This alternative is most applicable to three particular interstate streams or basins: the White River - Hal Creek Basm. the Lower Niobrara and Ponca Creek Basin. and the Missouri River. With the exception of these three interstate systems. all other major Interstate streams affecting Nebraska are covered by compact or decree. A compact was negotiated with South Dakota fOf the Lower Niobrara River and Ponca Creek but was never approved by the U.S. Congress. White River and Hat Creek flow northeast out of Nebraska and through Indian reservations in South Dakota. These Indian reservations claim superior rights 10 the streamflow in the basin under the federal reservation doctrine. These claims may potentially limit surface waler de- velopment in this area of Nebraska. Historically the Missouri River has had a plenti- ful supply of water with no great demand lor an interstate allocation, Indian and federal reserved water rights claims, however, could have a po- tentially serious impact on the Missouri River. 1 In addition, demands for Missouri River water for such new uses as energy development are in- creasing. These potential demands are gener- ating renewed interest in compact discussions among the Missouri Basin states. By authorizing and initiating the negotiation and formation of agreements or compacts on these interstate streams, the state would be taking the first step towards establishing lirm water rights to the streamflow. Ultimately all the states involved and the U.S. Congress must ap- prove any agreement between states before It becomes effective. In addition, where Indian and federal reserved rights are Involved. it will be necessary to Inventory and preferably adjudicate and quantify those rights before any compact can be realistically negotiated. If compacts regarding any of these streams could be finalized. they could provide added protection lor both upstream and downstream water rights recognized by the agreement.The compacts could also provide more security in existing water projects and offer a more realistic appraisal of the water available for future project development. This alternative could Initially be implemented by an act of the Legislature. An agency or indivId- ual would have to be deSignated to conduct the negotiations. Considerable lime would be in- volved with the negotiatIon process. The ex- pense would vary according to the dllflculty of the issues to be addressed but should not be prohibitive. Physical/Hydrologic/Environmental Im- pacts. To the extent that any compact. negoti- ated and approved. does not significantly change Nebraska's Current status with respect to inflows and outflows on interstate streams, this altern- ative should not present any maior physical/hy- drologic/environmental impacts. However, on the Missouri River particularly, the potential exists for large scale upstream consumption. A compact on the Misscuri might guarantee down- stream states like Nebraska more water than they would receive if upstream diversions are subjected only to the approval of individual states. Socio-Economic Impacts. In theory. inter- state compacts promote economic efficiency by increaSing water users' security of water right. Whether or not the result of a compact is efficient, however, depends on the skill of negotiation and the degree to which they seek to establish an allocation based on notions of economic effi- ciency. Furthermore. a compact that results in an efficient allocation of water tOday may result in inefficient allocations over time as economic conditions change. Consequently, compacts must be drafted with a degree of flexibility illong run economic efficiency goals are not to be thwarted. Alternative #3: Authorize and initi- ate the negotiation and formation of interstate compacts with states Sharing interstate groundwater basins with Nebraska. Description and Methods of Implementa- tion. Two existing compacts to which Nebraska IS a party currently address groundwater with respect to its effect on surface flows: the Upper Niobrara RiverCompact and the Blue River Basin Compact. In many situations. It may be that not enough rnformation is available about either ground- water-surface water interrelationships on a given interstate stream or an interstate groundwater basin to make an apportionment. Under these circumstances. a compact could be negotiated to conduct a study for the purpose of making such a determrnatlon on apportionment. Implementation of this alternative could be accomplished in the same way as Alternative 2. Legislative action would be needed to assign negohaling responsibilities to a particular agency Physical/Hydrologic/Environmental Im- pacts. Implementation ot this alternative could 3.3