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\ l I ,. .t,"\-, .i. 'i \).j To the extenr that any deficiency in reim- bursement remains as of June 1, 1987, the amount of the deficiency shall then be trans- ferred to the Upper Colorado River Basin Fund from the Lower Colorado River Basin Development Fund (established by P.L. 90- 537). In transmitting the proposed Operating Criteria to the governors of the Colorado River Basin states on December 16, 1969, the Secretary reopened the issue of whether or not the Glen Canyon Filling Criteria should be conrinued. This was due to the strong op- position by Upper Basin states during the seven-state task force studies of the Operat- ing Criteria in 1969 to the Hoover deficiency paymenrs. Their arguments were primarily based on assertions that deficiency payments under the Filling Criteria are incompatible with Section 602 of P.L. 90-537, and that reservoirs can not be operated in accordance with both the proposed Operating Criteria and the Filling Criteria.The Secretary asked for comments by April 1, 1970, on the ques- tion of early termination of the Filling Crite- ria as well as on the proposed Operating Cri- teria. California developed, through engineering and legal analyses, strong arguments against the Upper Basin states' assertions. Cali- fornia's statement was transmitted to the Secretary of the Interior by a letter signed by f Secretary for Resources Norman B. Liver- more, Jr., on April 1, 1970. Similar statements were submitted by Arizona and Nevada. The Metropolitan Water District of Southern California and the Southern California Edi- son Company also submitted statemenrs to the Secretary of the Inferior in which they supported California's statemenr. California also prepared a rebuttal state- ment to the Upper Basin's commenrs regard- ing early termination of the Filling Criteria, which was transmitted to the Secretary of the Interior by a letter signed by Governor Reagan on May 14, 1970. In transmitting the final Operating Crite- ria to the governors of the seven Colorado River Basin states on June 8, 1970, the Secre- tary of the Interior also announced that the Filling Criteria would not be terminated at this time. Thus, payments worth millions of dollars to Hoover power contractors will continue. However, the Secretary attempted to meet the objections of the Upper Basin states in part by stating that, except as lim- ited by minor variations in marketing condi- tions, all energy to meet Hoover deficiencies in the future is expected to be purchased. Under Section 502 of P.L. 90-537, these costs will be repaid to the Upper Colorado River Basin Fund. 19