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. 0015~!!~ WESTERN ~ STATES WATER February 19, 1993 Issue No. 979 TIIE WEEKLY NEWSLETfER OF TIIE WESTERN STATES WATER Creekview Plaza, Suite A-201/942 East 7145 So. I Midvale, Utah 84047 I (801) 561-5300 / FAX (801) 255-9642 editor - Tony Willardson typist - carrie Curvin ADMINISTRATION UPDATE Imerior . Interior Secretary Bruce Babbitt is considering WSWC member Betsy Rieke as Assistant Secretary for Water and Science, Dan Beard as Commissioner of the Bureau of Reclamation, and Phil Cohen to replace retiring USGS Director Dallas Peck. Betsy is Director of the Arizona Department of Water Resources. She was an associate and partner in the law firm of Jennings, Strouss, and Salmon from 1987-1991. She has a key role in interstate negotiations over the use of the Colorado River, legislation affecting Arizona surface and ground waters, and statewide water planning activities. Dan Beard directs the House Interior and Insular Affairs Committee staff, under Chairman George Miller (D-CA). He has had a major role in reclamation and other federal legislation. From the state of Washington, Dan served on President Carter's Domestic Policy Staff, and then as Deputy Assistant Secretary of Interior for Land and Water. Phil Cohen is USGS' Chief Hydrologist and directs the Water Resources Division. He began his career in 1956 as a ground water geologist in the USGS cooperative program in the state of Nevada. WATER RESOURCES CoIoradoINevada/Roan Creek Project . Nevada Governor Bob Miller recently announced that the Colorado River Commission of Nevada has negotiated an agreement with Chevron Shale Oil Company and Getty Oil Exploration Company to acquire up to 175,000 acre-feet of Colorado River water in a reservoir to be buiit northeast of Grand Junction. The governor stated, 'If southern Nevada is to continue to prosper, we need more water. The Roan Creek Project will give us the opportunity to obtain enough water at a very reasonable price to chairman - Dave Kennedy executive director - Craig Bell support reasonable growth into the 21 st century.' Nevada would provide $200M to construct the Roan Creek Project, and Southern Nevada would pay about $200-250/acre-foot for 30-50 years, while seeking a more permanent supply. Developing and leasing the water would benefit the oil company consortium which holds adjudicated (unperfected) water rights for oil shale development. Colorado would benefit from construction of the new storage project, which would bring jobs, recreation opportunities, additional firm water supplies to western Colorado, and greater flexibility to operate the river to protect flows for endangered species. The proposal would also provide Colorado with an annual income of $50 per acre-foot for the water leased. The oil companies say necessary environmental permits have already been acquired, with the exception of a supplemental environmental impact statement, helping clear the way for construction. Still, Colorado officials have expressed several concerns. In a February 1 letter, Ken Salazar, Executive Director of the Department of Natural Resources, Chuck Lile, Director of the Water Conservation Board, and Hal Simpson, State Engineer, said they were willing to listen, with an open mind to determine 'whether your project is in the best interest of the state.' However, 'One of our major concerns is that any marketing or leasing of water or interest in water...could open up an unregulated water market on the Colorado River...not only in Colorado's unused entitlement, but also of present perfected irrigation uses on the western slope. We are concerned about the resuiting social, environmental and economic impacts..... Another issue raised is whether or not Colorado River water is an article of commerce, and whether or not the Law of the River permits interbasin commerce, and iI so, can it be regulated by Colorado.