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o ~ , i042 SUMMARY MINUTES STATE-FEDERAL COORDINATION MEETING ON FEDERAL POLICY IN MARKETING INDUSTRIAL WATER BEYOND FEBRUARY 1977 FROM MISSOURI RIVER MAIN STEM RESERVOIRS Stouffers Denver Inn Denver, Colorado December 3, 1976 Background John W. Neuberger, Chairman and Federal Coordinating Officer of the Mis- souri River Basin Commission, called the special State-Federal Coordination Meeting on Federal Policy in Marketing Industrial Water Beyond February 1977 to order at 2 p.m., South Ballroom, Stouffers Denver Inn, Denver, Colorado, December 3, 1976. The meeting was held at the request of Assistant Secretary Jack Horton of the Department of the Interior and Assistant Secretary Victor Veysey of the Department of the Army. Introductory Statements Following introductions of those present (see attached list), Chairman Neuberger reviewed the history of the Ad Hoc Committee on Water Marketing from December 13, 1973, to July 1, 1974, and the 23 joint State-Federal regional meetings which contributed to the eventual Memorandum of Understanding between the Departments of the Interior and the Army, signed February 24, 1975. Chairman Neuberger then called upon Assistant Secretary Horton for remarks. Assistant Secretary Horton said the purpose of the meeting was to obtain Mis- souri River Basin State views on suggested changes to the 1975 Interior-Army memorandum of understanding (MOU) regarding marketing water for industrial uses from the Missouri River main stem reservoirs and the current administration's intention to extend the MOU to May 1, 1977. Horton emphasized that a new MOU would not be negotiated before the Carter administration takes office in Janu- ary. Rather, Interior and Army will present an unsigned document with State comments to the new administration for appropriate action. Horton said it was agreed in the 1975 MOU that up to one million acre- feet of water could be made available for industrial purposes. The one million acre-feet is not new water, but water which essentially would be borrowed from the agricultural account--from agricultural projects which had been authorized but for which water would not be needed for at least a 50-year period. Under the current MOU, Horton noted that the Bureau of Reclamation was nearing agreement on the marketing of more than 600,000 acre-feet. States were offered the first opportunity to contract for the water. Montana has since contracted for 300,000 acre-feet and South Dakota is negotiating a simi- lar contract. North Dakota has elected not to contract with the United States, but has agreed to let the Department of the Interior contract directly with industry. State requirements such as water permits must be met first) however. In North Dakota, contract negotiations have been completed with ANG Coal Gasification Company for up to 17,000 acre-feet annually from Lake Sakakawea for use in a proposed coal gasification facility to be located in Mercer County, North Dakota.