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<br />001673 <br /> <br />GF5tJ <br />,~ <br /> <br />'-,,> <br />,::~j:t~; <br /> <br />Thus, we conclude that a finding can be made affirming the reasonable <br />availability of water for municipal and industrial purposes in the State <br />of New Mexico under long-term contracts which expire no later than <br />year 2005. <br /> <br />The requirement of Public Law 87-483, that the municipal and industrial <br />users share equally with the Indian and San Juan-Cha:ma water users <br />the unavoidable shortages in supply which will arise on occasion, should <br />be reiterated in the proposed municipal and industrial contracts. Also, <br />renewal clauses for municipal and industrial water beyond the 40-year <br />contract period must be subject to a second determination of the avail- <br />ability of water prior to a. renewal of the contract. Contracts negotiated <br />after 1965, but within the determined limit of 100,000-acre-foot deple- <br />tion, should have shorter contractual lives so as to expire in the year <br />2005. Although only New Mexico at this time appears reasonably capable <br />of approaching ultimate use during the 40-year period, her municipal and <br />industrial contracts must, nevertheless, be made subject to availability <br />of water under ~~ticles IiI and XIV of the Upper Colorado River Basin <br />Compact in order to protect the Secretary in the event such contractual <br />deliveries must be curtailed should one or more of the other Upper Basin <br />States unexpectedly reach a parallel position in achieving ultimate use <br />to the extent that the 100,000 acre-feet, or a portion thereof, would <br />no longer be available. <br /> <br />Future Actions <br /> <br />Providing that you concur in the above analyses and conclusions, the <br />Regional Director will make a final check with New Mexico and other <br />Upper Colorado River Basin interests as to the acceptability of these <br />findings. If they are found to be mutually acceptable, the Regional <br />Director will then advise the current applicants that he is prepared <br />to enter into contract negotiations for municipal and industrial water <br />from Navajo Reservoir for use in New Mexico. The State of New Mexico <br />presumably will also have the assurance it requires in order to com- <br />plete and submi.t its comments on the Animas-La Plata Project. <br /> <br />Your approval will be with the understanding that each contract for <br />municipal and industrial water service from the Navajo Reservoir for <br />use in New Mexico will be submitted for your approval. Accompanying <br />each submittal will be drafts of. letters to forward the contract to <br /> <br />6 <br />