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<br />~646 <br /> <br />27 <br /> <br />ultimately adopted new legislation essentially conferring a <br />monopoly upon the State Department of Natural Resources to <br />lease water within the State of Montana. Commission member Dan <br />Kemmis, a member of the legislative task force that developed <br />this legislation, reported on the draft legislation at the <br />January 8 and 9 meeting in Helena (Tr. pp. B-20). Commissioner <br />Kemmis indicated that the legislature was unlikely to <br />authorize general water marketing by state water users, and <br />would even insist upon tight restrictions as to water marketed <br />by the State. He stated that environmental and public interest <br />criteria and limits on the quantity to be marketed would be <br />contained in that legislation. <br /> <br />Because the state water marketing legislation <br />restricts the amount of water the State can market, the <br />Commission was insistent that the Tribes be limited in 45 <br />quantity. (E.'!., Tr. Jan. 28-29, 1985, pp. 82, 134-140.) <br />The tribal negotiating team resisted quantity limitations, but <br />finally as reed to that concept in view of the overall benefits <br />to the Tribes under the Compact. (Tr. Feb. 2B, 1985, pp. <br />24-34). On thp other hand, while the state water marketing <br />legislation enacted in 1985 confers authority to market water <br />exclusively in the State Department of Natural Resources, the <br />tribal negotiating team was concerned with the possibility that <br />the Statp may in the future drop this public leasing concept <br />and simply allow private water users to make commercial <br />marketing transactions. This concern gave shape to the <br />requirements of Section K, paragraphs 5 and 6. <br /> <br />(3) Benefits to the Tribes <br /> <br />The tribal negotiating team believes that this water <br />marketing authority creates an opportunity which may someday be <br />of great economic value to the Tribes. The restrictions that <br />we agreed to were drafted so that they could be complied with <br />easily for diversions from Fort Peck Reservoir and the mainstem <br />of the Missouri River. There is an ample water supply there, <br />and it is unlikely that a diversion will adversely affect an <br />existing user, impair water quality, create saline seep or <br />injure fish or wildlife populations in the River. Although a <br />use cannot cause unreasonable and significant environmental <br />damage and must comply with certain state regulations such as <br /> <br />. i <br /> <br />, <br />j <br />..1 <br /> <br />45partial agreement in principle had been reached on other <br />provisions concerning tribal transfers of diversions from the <br />Missouri outside the Reservation at the January 28, 1985 Helena <br />meeting (Tr. p. 138; see also Tr. Jan. 8-9, 1985, pp. 21-28, <br />103, 128-131). The State at that time agreed to the reciprocal <br />joint venture arrangement contained in Section K, paragraphs 2 <br />and 3 (Tr. Jan. 2l'-29, 1985, pp. B7, 141). <br /> <br />'''.'j <br />,.. <br />;:. <br />,-I <br />