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<br />. <br /> <br />. <br /> <br />On April 6. 1998, Mr. Kennedy and I met with representatives from the other Colorado River <br />Basin states to provide an update on the discussions related to development of the 4.4 Plan, as well <br />as to discuss other items ofmutuaI interest. The main topics of discussion were I) California's 4.4 <br />Plan, 2) Reclamation's proposed rule on off stream storage of Colorado River water, 3) the Salton <br />Sea Reclamation Act, and 4) settlement of the Central Arizona Project litigation. Regarding the <br />discussion on the 4.4 Plan. the other Basin states' representatives indicated concern with the apparent <br />lack of progress that is being achieved and the interrelationship of water received by entities in <br />southern California from the State Water Project and the Colorado River, especially as it may affect <br />the use of surplus water from the Colorado River. Also, during the meeting, representatives from <br />Reclamation briefly discussed the process for completing its proposed rule on offstream storage of <br />Colorado River water and representatives from the Basin states raised their concerns with Colorado <br />River water being used to solve the Salton Sea issues. Rita Pearson indicated that the Arizona <br />Department of Water Resources is now involved in attempting to assist in reaching a negotiated <br />settlement on the Central Arizona Project repayment obligation. She indicated that the settlement <br />will probably increase the water use within Arizona, especially for agricultural uses on the Indian <br />reservations. There may be something released on the settlement soon. The next meeting of the <br />Basin states representatives has been scheduled for July 13th. <br /> <br />Included in the Board folder is a copy of a letter, dated April 8, 1998, from the General <br />Manager of the Kern County Water Agency, Mr. Thomas Clark, regarding a possible water sale and <br />water management program between the San Diego COWlty Water Authority and the Kern COWlty <br />Water Agency. This potential program could include a permanent transfer of up to 100,000 acre-feet <br />of Kern's State Water Project entitlement to the San Diego COWlty Water Authority together with <br />an opportunity to participate in Kern's groWldwater banking programs. Mr. Clark suggested that this <br />opportunity may provide "added flexibility and a new dimension" to the ongoing 4.4 Plan <br />negotiations. <br /> <br />Rel!ulations for Administratinl! Entitlements <br />in the Lower Colorado River Basin <br /> <br />Reclamation published a proposed Rule on "Offstrearn Storage of Colorado River Water and <br />Redemption of Storage Credits in the Lower Division States," in the Federal Register on <br />December 31. 1997. The end of the comment period, which was originally set for March 2. 1998, <br />was extended by Reclamation to April 3, 1998, at the request of the Colorado River Board of <br />California and others. Included in the Board folder is a letter dated March 12, 1998, from the other <br />Colorado River Basin states requesting Reclamation to not provide a further extension to the <br />comment period. <br /> <br />During the comment period Reclamation held a public hearing on February 23m and a public <br />meeting on March 2m, both of which were held in Ontario, California. During the public hearing, <br />Reclamation received testimony on the proposed Rule, whereas, during the public meeting there was <br />an opportunity for questions and dialogue between Reclamation and the interested parties on the <br />proposed Rule and the intent of various sections. <br /> <br />4 <br />