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<br />003285 <br /> <br />Section 5 of the Project Act."s See 43 U.S.C. S 6l7(d). <br />He found the Project Act to be "the source of author- <br />ity for the allocation and delivery of water to Arizona, <br />California, and Nevada from Lake Mead and from the <br />Colorado River below Lake Mead.... He derived this <br />authority of the Secretary of the Interior from his <br />reading of several sections of the Project Act'O as well <br />as the legislative history of the Act. In addition, the <br />California legislature had limited the amount of water <br />that a state could divert annually.ll One significant <br />limitation on the Secretary's authority was that Sec- <br />tion 6 of the Project Act requires the terms of the con- <br />tracts to satisfy water rights perfected by June 25, <br />1929," the effective date of the Project Act. .see id. S <br />6l7(e). Master Rifkind viewed the Project Act as, thus, <br />setting the terms for water unappropriated as of that <br />date. Such water could, according to Master Rifkind, <br />be made available for use within the state only if the <br />Secretary should contract for the delivery of the water <br />to that state." Once the contracts were in force, the <br />Secretary retained discretion to decide how much of <br />this water could be consumed." Of course, once the <br />water was released for consumption, the Secretary was <br />obliged to allocate certain quantit\es to each state." <br />Under these authorities, Master Rifkind found the <br />division of water rights among these three states. He <br />found California limited annually to 4,400,000 acre- <br /> <br />feet of consumptive use" of the first 7,500,000 acre- <br />feet of water stored in Lake Mead and flowing in the <br />mainstream from Hoover Dam.n He found that the <br />Secretary effectively contracted with the three states <br />or entitie~ within those states. Under these contracts, <br />Arizona was entitled to an annual skare of 2,800,000 <br />acre-feet of consumptive use of water. California agen- <br />cies were entitled under contract to 5,362,000 acre-feet <br />of consumptive use per year, subject to the limitation <br />that the Master found elsewhere which restricted Cali- <br />fornia's share to 4,400,000 acre-feet annuall1' Nevada <br />was entitled to 300,000 acre-feet.'s The water in excess <br />, of 7,500,000 acre-feet, he found, belonged 50% to Cali- <br />fornia and 50% to Arizona, unless the Secretary con- <br />tracted with Nevada to allocate 4% of the surplus to <br />Nevada at the expense of Arizona." In event of a <br />shortage, below 7,500,000 acre-feet in a year, the states <br />were to receive a proportional allocation based on their <br />respective shares of the first 7,500,000 acre-feet.so <br />Water rights perfected under state law or reserved <br />under federal law before June 25, 1929, the effective <br />date of the Project Act, were titled "present perfected <br />rights'''' and were to be satisfied first in any event.1I <br />Thus, rights in existence at the time of the Project Act <br /> <br />: <br /> <br />8. SPECIAL MAsTER'S REPORT at 138. <br />9. [d. at 151-54. <br />10. Id. at 151.64. <br />11. [d. at 166 & 0.27. <br />12. [d. at 152 & 0.20. <br />13. [d. at 152-53. <br />14. [d. at 221-37. <br />15. [d. at 222. <br /> <br />16. No used by the Special Master and the Court, tbe phrase COD- <br />sumptive use means the diversions from the river less any ntum flow <br />available for consumptive use in the United States or in satisfaction of <br />tbe Meucan Treaty obligation. For the definition 81 adopted in the <br />Court's decree, see 37S U.s. at 340. <br />17. SPECIAL MABrBa's REPoRT at 167-94. <br />18. Id. at 201-10, 221-47. <br />19. Id. at 224-25. <br />20. Id. at 233. <br />21. Id. at 306-11. For tha definition,. adopted in ths Court's decree, <br />see 376 U.S. at 341. <br />22. SPECIAL MAsTER'S REPORT' at 306-07. <br /> <br />8 <br /> <br />9 <br />