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<br />'. <br /> <br />BOB .;..tllLER <br />GoverrlQr <br /> <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />000624 <br /> <br />STATE OF NEVADA <br /> <br />PETER G. MORR05 <br />Dir~ct(lr <br /> <br /> <br />R. MICHAEL TURNIPSEED, P.E. <br />SID'e Engineer <br /> <br />DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES <br />DIVISION OF WATER RESOURCES r' ""_.n. <br /> <br />123 W. Nye Lane, Suite 246 <br />Carson City, Nevada 89706-0818 <br />(702) 687-4380 . Fax (702) 687-6972 <br /> <br />t~j.,... ~ <br /> <br />March 20, 1998 <br /> <br />-:37~1 <br />..31?.~ . <br /> <br />@> - -'-~ ,,-/ <br />" C~-'{77-':c:c/v <br />/f--Z"-.. .. '/I(.tk.:?> <br />. . . t/ltrJO <br /> <br />Robert W. Johnson <br />Regional Director <br />U. S. Department ofInterior <br />Bureau of Reclamation <br />Lower Colorado Regional Office <br />P.O. Box 61470 <br />Boulder City, Nevada 89006-1470 <br /> <br />:;~:J <br /> <br />'--'--'.-'- _.:-.~._..- <br /> <br />...... ..-. --- .~-_._.. <br /> <br />Re: Proposed Rules for Off stream Storage <br /> <br />Dear Bob: <br /> <br />The purpose of this letter is to relay to the Secretary of Interior the support of the <br />Nevada State Engineer and the Nevada Division of Water Resources for the Proposed <br />Rules for Off stream Storage published by the Secretary on December 31, 1997. <br /> <br />One aspect of the proposed rules needs some improvement. An interstate water <br />banking transaction, as contemplated by the Proposed Rules, will require the commitment <br />of significant financial resources in the early storage years by an authorized entity within <br />the Consuming State to develop the right to divert water associated witll "intentionally <br />created unused apportionment" in a later withdrawal year. The authorized entity who will <br />be diverting to selve municipal and industrial needs will most likely raise its funds through <br />the sale of bonds. It is unreasonable to expect the authorized entity to commit those <br />significant financial resources without a fi.rtn commitment by the Secretary of the Interior <br />that Colorado River water will be available, WIder Article II(B}(6} of the Decree ill <br />Arizolla v. California, for diversion by the authorized entity in the withdrawal year. This <br />commitment would be on the condition, of course, that the terms of the interstate storage <br />agreement, which the Secretary must approve, are satisfied. The current proposed rule <br />does not clearly provide for this. <br /> <br />C.,. <br />if <br /> <br />'/0,-:'<'-' <br />:7-'c.c..... <br /> <br />" <br />