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ER 1105-2-100 28 Dee 90 is believed that the municipal and industrial use of the water is a ~gher and more beneficial use. Use for higher beneficial purposes should be ~PB1-ied with caution and only on a fixed period contract for temporary use. Permanel],t. storage reallocations woul~ be performed under the authority of the 1958 ~aqer Supply Act, as amended. ,. Surplus water declarations will .only be made wpen related withdrawals or s~orage reallocations would not significantly affec~ authorized purposes. Surplus. ",ater contracts shall be accompanied by a brief l~tller report similar to reallocation reports (reference paragraph 4-32 d. (1)) and shall include how and wpy the storage is determined to be surplus. Declaration of surplus irrigation :,water in the 17 Western states will require appropriate coordination/consultation with the Department of the Interior,. (lJureau of Reclamation) . :i t t: . C ~ (1)" Classification. Surplus water will be classified as eJd:qer: water stored in a Department of the Army reservolr which is not required because the authorized need for the water never developed or the need is redueed by changes which have ~ccurred since authorization or construction; or, water which would be more beneficially used as municipal arid industrial water than for the authorized purpo~e and which, when withdrawn, would not signific;antly'affect authorized purpo!,es over some specified time period. 'c., . . ". -- (2) Autho~ity. Section 6 of the 1944 Flood Control Act (Pup~ic Law 78- 534) provides sufficient authority and discretion to allow use of~ater stored in Corps reservoir/' .deemed surplus. Surplus water withdrawal/storagll ,contracts will normally be fpr small amounts of water and/or for ,temporary ~e~"" opposed to storage reallocations and a permanent right to that storage,.,,, :Normally. surplus water contracts will be limited to 5 year periods. Use o~~the Section 6 authority should.be encouraged only where non-Federal interests dQ:.pot want to buy storage beca~se:, use of the water is for short term; or'use,ls temporary pending the dev~lopment of the authorized use. The views of :;:j).e: affected state(s) will be obtained, as appropriate, prior to consummating,~n1 contract using Section 6., '!;he annual price deemed reasonable for this ~ ,of surplus water supply is ,~o be determined by the same procedure used to ~tiermine the annual payment for. an equivalent amount of reallocated storage plus ~ estimated annual cost fOI1': ,operationa,nd maintenance, major replacementa,~ 'IUd major rehabilitation. :!~e total anriual price is to be limited to the anmYll. costs of the least costlY:'a.1ternative, but never less than the benefits fo~~gone or, in the case of hydrpP9wer, reven!;'es foregone. , <, c. Drou"ht, Contin"encv Wa:ter Supplv. Drought and otherallmergencies affecting domes ti&:, , municipal and industrial water supplies will lik..ly generate requests for water stored in Corps reservoirs. When these situat;ions oc<;ur, requests may require immediate action. Section 6 of the Flood tontrol Act of. 1944 provides an'c<1pportunity to be responsive. to such requests. ;-0 providing surplus water under Section 6 authority, the preferred approach :i.S;;~ a state or subdivision tp enter into a, contract with the Secretary of the~y and to agree to act as wholesaler for all of the water requirements 'of individual users. This places the_local governments in a position to help their citizens during difficult times and minimizes the potential for problems that could arise if the 4-53 ~.,..:~~'" I).