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<br />1048 <br /> <br />12/3/76 <br /> <br />4. Pursuant to Item 2 of the attached Memorandum of Understanding, <br /> <br />the Secretary of the Army has determined that one million acre-feet of <br /> <br />the water, as determined by the Secretary of the Interior to be excess <br /> <br />to present irrigation needs, can be made available for industrial use. <br /> <br />5. On March 23, 1975, each of the 10 Missouri River Basin States <br /> <br />received a copy of the attached Memorandum of Understanding and was <br /> <br />offered the first choice to contract for the water with the understanding <br /> <br />that each state could then elect to market such contracted water to industrial <br /> <br />firms. Pursuant to applicable authorities, it is further agreed by the parties <br /> <br />hereto that each of the Upper Basin States may enter into a contract with <br /> <br />the Secretary of the Interior for water identified unJcr Items 3 and 4 above <br /> <br />which shall be used for industrial uses and purposes incidental thereto. <br /> <br />It is understood that each state may subcontract for such water use with <br /> <br />industrial firms for the quantities of water under its federal-state contract. <br /> <br />The federal-state contract and any subcontracts shall be executed only <br /> <br />when the terms and conditions are mutually agreeable to the contracting <br /> <br />state, the Secretary of the Interior, and the Secretary of the Army, provided, <br /> <br />however, tha t : <br /> <br />a. The Secretary of th~ Army shall retain all operational and managerial <br /> <br />control over said reservoirs; <br /> <br />b. To the extent such cantracts or subcontracts would reduce the quantity <br /> <br />of hydroelectric power generated at the main stem reservoirs, no <br /> <br />contracts or subcontracts may be executed unless it has been determined <br /> <br />jointly by the Secretary of the [nterior and the Secretary of the Army, <br /> <br />that the proposed us~ of water for industrial purposes is a beneficial <br /> <br />use which should take precedence over hydroelectric power ge<leration; <br /> <br />c. Contracts executed pursuant to this suppleme<ltal agreement shall not <br /> <br />either by implication or inference, affect or modify the valid <br /> <br />existing rights to any of the waters of the Missouri River; <br />