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<br />Messrs. Horton and Ford <br />Page 2 <br /> <br />users. However, if a State elects not to enter into. an industrial water supply <br />contract with the United States, contracts will be negotiated with the individual <br />industrial users. Under either arrangement, users will be required to follow <br />State law and regulations and obtain a State water permit. <br /> <br />3. Charges for industrial water supply withdrawn from the main stem reser- <br />voirs will not be established until contract negotiations are completed. These <br />charges must be sufficient to (a) offset the losses and costs sustained (such as <br />power losses or replacements) due to the reduced flows, thereby maintaining the <br />financial integrity of the Pick-Sloan t.1issouri Basin Program Account; and (b) to <br />cover increased costs such as NEPA incident to the industrial marketing program. <br />The charge will be the same for industrial water from the six main stem Missouri <br />reservoirs. This charge will be subject to renegotiation by the parties upon <br />expiration of each 5-year period throughout the term of any contract. <br /> <br />4. The scope of these contracts will be limited to provision of industrial - <br />water supply directly from the r.lissouri River main stem reservoirs. Thus, <br />municipal water supply is excluded as well as supplies from tributary reservoirs. <br /> <br />5. Long-range policy matters related to water marketing from the r1issouri <br />River Basin should be referred to the I1RBC for study and further recommendations. <br /> <br />In view of agreement on the foregoing items, the Committee submits answers <br />to the four questions raised in your December 13, 1973, letter, as follows: <br /> <br />Question 1 <br /> <br />How much water is it acceptable for the States and the Federal Government to <br />market now? <br /> <br />Any amount of water up to 3,000,000 acre-feet, for which a potential indus- <br />trial user can demonstrate a legitimate need, is currently available for marketing. <br />Under current (1974) conditions of upstream water use, the average annual stream- <br />flow of the 11issouri River at Sioux City, Iowa, is about 21.4 million acre feet. <br />Studies by the Water Supply Technical Group project that 1.4 million A.F. of water <br />would be required annually by the year 2020 for the most likely industrial develop- <br />ment and 3.0 million A.F. sometime beyond the year 2020 for a maximum likely <br />/ development in the upper Missouri River Basin. These depletion estimates are <br />approximately 30 percent greater than those shown in the current studies of the <br />Northern Great Plains Resource Program in the year 2000. The projected streamflow <br />depletions due to industrial developments, irrigation and other purposes as well <br />as surplus water availability, are shown on Attachment A. <br /> <br />Question 2 <br /> <br />How much water is available for industrial use in the long run? <br /> <br />The water supply of the Missouoi River, as controlled by the main stem <br />reservoir system is adequate to meet all foreseeable beneficial consumptive uses, <br />including the projected maximum likely ultimate use (sometime beyond the year 2020) <br />