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<br />. <br />":1" <br /> <br />..-l <br />C~ <br /> <br />'--. <br /> <br />.c. <br /> <br />. <br /> <br />I <br />8 <br /> <br />~. <br /> <br />18 <br /> <br />8 <br /> <br />. <br /> <br />. <br /> <br />8 <br /> <br />8 <br /> <br />GOVERNOR'S CENTRAL ARIZONA PROJECT ADVISORY COMMITTEE <br /> <br />Marketing of CAP Water Within Arizona -- Discussion Paper, May 26, 1993, prepared by <br />ADWR <br /> <br />This discussion paper was prepared to expand the concepts regarding a series of <br />solution elements associated with marketing of CAP water and CAP allocations within the <br />state of Arizona. The paper describes the limitations on marketing contained in existing <br />M&I and Agricultural subcontracts. However, several sales of water have been sanctioned <br />by Congress through Indian water rights settlement legislation. Interest in purchasing or <br />leasing CAP allocations may exist 1) for municipal water providers, 2) for additional Indian <br />water rights settlements, 3) for Yuma, La Paz, and Mohave County water users, 4) for <br />environmental uses, or 5) for make up water associated with the Yuma Desalinization <br />Plant. Supplies available for marketing could include uncontracted water subject to <br />reallocation, existing M&I subcontracts, Indian contracts, non-Indian agricultural <br />subcontracts, and a spot market for surplus water. <br /> <br />Distributed with this paper was a discussion paper titled "Enhancing Central Arizona <br />Project Repayment and Utilization Through Market Incentives" dated April 12, 1993, by <br />Dr. Bonnie Colby, Department of Agriculture and Resources Economics, The University of <br />Arizona. <br /> <br />Findings and Recommendations of the Indian Issues Working Group -- August 6, 1993 <br /> <br />The Indian Issues Working Group met a total of seven times either separately or <br />jointly with the Financial/Legal Issues Working Group. This paper documents their findings <br />and recommendations. Significant findings include the concern that existing and future <br />Indian water rights settlements which include a CAP component are threatened by issues <br />related to the cost of the water. If costs for energy and OM&R are high, the Indians will <br />not be able to afford to profitably use CAP water for irrigation purposes and will not accept <br />CAP water into the water budget of Indian settlements. The Indian Issues Working Group <br />made seven recommendations related to Indian utilization of CAP and water rights <br />settlements. <br /> <br />FINAL REPORT AND RECOMMENDA TlONS <br /> <br />17 <br />