MEETING SUMMARY

Summary of recent developments and upcoming issues in the Bank

Below is a summary of recent developments and upcoming issues in the Water Banking Authority. The meeting regularly scheduled for April 15 was cancelled. The next meeting will take place on Wednesday, May 20, 1998.

I. 1998 Annual Plan of Operation

Deliveries: SRP halted deliveries to GRUSP effective March 31, 1998. Deliveries are not likely to resume in April. The Bank stored approximately 6500 acre feet of water at GRUSP in March. Other deliveries for the month of March appear in graph form in an attachment to this memorandum.

II. Other Staff Activities

Innovations in American Government update: In January, the Bank applied to the Ford Foundation's "Innovations in American Government" awards program administered by the Harvard University John F. Kennedy School of Government and the Council for Excellence in Government. The Bank was recently notified that it was not chosen among the semifinalists.

The AWBA Web Page: Staff has received universally positive feedback about the web page. People have noted that page is user-friendly, contains up-to-date information, and is easy to "navigate." Some users have experienced problems accessing the page at all, but virtually every instance of this problem occurs because the user has a very early version of an Internet browser that does not support or enable the user to view most web pages. Most of the major Web browsers (such as Netscape or Internet Explorer) may be upgraded at no cost by downloading the newer version from the browser's web site. Our figures show that 125 people have used the Bank's web page since March 23, 1998.

III. Discussion of Vidler Water Company at MBT Ranches

The Vidler Water Company applied for a water storage permit for an underground storage facility they have constructed in the Harquahala Valley in La Paz County, Arizona. At last month's AWBA meeting, Vidler staff and a hydrologist from HydroSystems, Inc. provided an overview of the area and the pilot underground storage facility. The Bank had submitted a storage permit application and intended to store water at Vidler in the future. On the date of the AWBA meeting, Vidler's application for the requisite permits from ADWR were in the final "public comment" phase.

As explained at the last AWBA meeting, if the Bank wishes to store water in an area that was not set forth in the Plan of Operation, the Bank must testify about the proposed water storage arrangements before the Board of Supervisors of the county in which the storage will occur. Since last month's meeting, the ADWR received a formal objection to the permit application from the La Paz County Board of Supervisors. Until the matter is resolved, the Bank will not move forward with plans to present a proposal to the La Paz County Board of Supervisors for storage of water at Vidler Water Company's facility.

IV. Comments on Proposed Rule Governing Interstate Water Banking to the Secretary of the Interior

Tim Henley attended a second hearing held in California by the United States Bureau of Reclamation (USBR) regarding the proposed rules governing interstate water banking. The Bank forwarded its final comments on the proposed rule to the Department of the Interior on April 2, 1998. These comments are available on the AWBA web page (www.awba.state.az.us), however, ADWR's comments on the proposed rule and on the USBR's Programmatic Environmental Assessment are no longer available on the ADWR's web site.

V. CAP/USBR Settlement Discussions

Subcommittees Created: Water users, Indian tribes, municipalities, agency staff, and other interested parties have held numerous meetings to discuss the proposed CAP/USBR settlement agreement. The meetings have enabled many affected parties to exchange thoughts on the strengths and weaknesses of the agreement and to formulate some suggested changes. The meetings took place over a period of one month and concluded on April 13, 1998.

On April 14, 1998, United States Senator Jon Kyl, Secretary of the Interior Bruce Babbitt, Arizona Governor Jane Hull, CAWCD President Grady Gammage, Jr., and ADWR Director Rita Pearson hosted a forum on the CAP settlement negotiations. The meeting was open to the public, and the panel heard presentations from numerous water interests involved in the negotiations, including the CAWCD, the cities, agricultural users, tribes, and the Water Bank. The forum was an opportunity for all affected parties to hear where all parties stand on the settlement negotiation process. {Link to Tim Henley's presentation}.

VI. Pima Mine Road Negotiations

The CAP has suggested that the Bank use a standard form lease agreement drafted by CAP staff for all future water storage agreements. The AWBA has reviewed the proposed form and is currently in negotiation with CAP regarding compromise language.

VII. Update on Study Commission Activities

The Arizona Water Banking Authority Study Commission subcommittees continue to meet regularly, and most subcommittees are in the process of drafting recommendation that will eventually comprise the final report to the Arizona Legislature in November.

VIII. Update on Interstate Discussions

Discussions with California continue, but there are no new developments to report.

Future Meeting Dates:

Wednesday, May 20, 1998

Wednesday, June 17, 1998