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<br />. <br /> <br />. <br /> <br />.' <br /> <br />'. <br /> <br />the State of Nevada's return flow eredits to the Colorado River. The Board's staff is currently <br />reviewing the changed methodology to determine the effect that this ehange has on Nevada's use of <br />Colorado River water and the impaet that it may have on the other Lower Division States. <br /> <br />43 CFR Part 417 Process <br /> <br />Every year Reclamation is required by 43 CFR 417 (part 417) to consult with Colorado River <br />water users regarding water conservation and the use of Colorado River water. Reclamation has <br />initiated that process for the next calendar year with all the Colorado River water users. <br /> <br />Included in the Board folder, as an information item, is a representative sample of the letters <br />that Reclamation has sent to various water users along the Colorado River. <br /> <br />Arizona Water Settlement Act <br /> <br />In June, I discussed with the Board the "Arizona Water Settlement Act" which was introduced <br />by Arizona Senator Jon Kyl, on February 25, 2003. The purposes of this Aet are to provide <br />adjustments to the Central Arizona Project, to authorize the Gila River Indian Community water rights <br />settlement, and to authorize and amend the Southern Arizona Water Rights Settlement Act of 1982. <br />The Act reallocates 60,647 acre-feet of agricultural priority water to the Indian Tribes, for a 100 year <br />period and provides for the costs to be paid from the excess revenues derived from the sale of power <br />and energy for use in Arizona in excess of the amount necessary to meet the annual payment of <br />reimbursable Central Arizona Water Conservation District's Central Arizona Project construction <br />costs. Section 105 of the Act is titled "Firming of Central Arizona Project Indian Water." The <br />intended purpose of this seetion is to develop a progxam so that this newly allocated water has the <br />same priority as M&I water during water shortages. The State of Arizona and the federal govemment <br />have reached an agxeement on each parties' responsibilities in firming up this water. Arizona has <br />agxeed to firm 23,724 aere-feet while the federal government has agxeed to firm 36,923 acre-feet. <br /> <br />The Director of the Arizona Department of Water Resources has requested that the Arizona <br />Water Banking Authority form a Technical Committee to develop and examine options to assist the <br />State in meeting its obligation for firming Non-Indian agricultural priority water under the Act. <br /> <br />Yuma Desalting Plant <br /> <br />Over the past 12 months, the Board has discussed the status of the Yuma Desalting Plant <br />(YDP). Should it be operated, or should it remain in ready reserve? Reclamation is having to make <br />excess releases from Lake Mead of more than 100,000 acre-feet of water per year from storage to meet <br />the delivery requirements of the 1944 Mexican Water Treaty. This loss of water has become acute due <br />to the drought in the Colorado River Basin. <br /> <br />Both the House and Senate Committees on Energy and Water Appropriations have prepared <br />committee report language instrueting Reclamation to report to their respective Committees on the <br /> <br />6 <br />