45-1301

45-1301. Ratification of Lake Mead
contract

There is hereby unconditionally ratified, approved and confirmed, that certain
contract for the storage and delivery of water from Lake Mead executed on behalf of the
United States by the honorable Harold L. Ickes, secretary of the interior, and on behalf
of the state of Arizona by its Colorado river commission, bearing date the 9th day of
February, 1944, as follows:

UNITED STATES

DEPARTMENT OF THE INTERIOR

Bureau of Reclamation

BOULDER CANYON PROJECT

Arizona-California-Nevada

CONTRACT FOR DELIVERY OF WATER

This contract made this 9th day of February, 1944, pursuant to the Act of Congress
approved June 17, 1902 (32 Stat. 388), and acts amendatory thereof or supplemental
thereto, all of which acts are commonly known and referred to as the Reclamation Law, and
particularly pursuant to the Act of Congress approved December 21, 1928 (45 Stat. 1057),
designated the Boulder Canyon project act, and acts amendatory thereof or supplementary
thereto, between the United States of America, hereinafter referred to as "United
States," acting for this purpose by Harold L. Ickes, secretary of the interior,
hereinafter referred to as the "secretary," and the state of Arizona, hereinafter
referred to as "Arizona," acting for this purpose by the Colorado river commission of
Arizona, pursuant to chapter 46 of the 1939 session laws of Arizona,

WITNESSETH THAT:

EXPLANATORY RECITALS

2. WHEREAS, for the purpose of controlling floods, improving navigation, regulating
the flow of the Colorado River, providing for storage and for the delivery of stored
waters for the reclamation of public lands and other beneficial uses exclusively within
the United States, the Secretary acting under and in pursuance of the provisions of the
Colorado River Compact and Boulder Canyon Project Act, and acts amendatory thereof or
supplementary thereto, has constructed and is now operating and maintaining in the main
stream of the Colorado River at Black Canyon that certain structure known as and
designated Boulder Dam and incidental works, creating thereby a reservoir designated Lake
Mead of a capacity of about thirty-two million (32,000,000) acre-feet, and

3. WHEREAS, said Boulder Canyon Project Act provides that the Secretary under such
general rules and regulations, as he may prescribe, may contract for the storage of water
in the reservoir created by Boulder Dam, and for the delivery of such water at such
points on the river as may be agreed upon, for irrigation and domestic uses, and provides
further that no person shall have or be entitled to have the use for any purpose of the
water stored, as aforesaid, except by contract made as stated in said Act, and

4. WHEREAS, it is the desire of the parties to this contract to contract for the
storage of water and the delivery thereof for irrigation of lands and domestic uses
within Arizona, and

5. WHEREAS, nothing in this contract shall be construed as affecting the
obligations of the United States to Indian tribes,

6. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the
parties hereto agree as follows, to wit: DELIVERY OF WATER

7. (a) Subject to the availability thereof for use in Arizona under the provisions
of the Colorado River Compact and the Boulder Canyon Project Act, the United States shall
deliver and Arizona, or agencies or water users therein, will accept under this contract
each calendar year from storage in Lake Mead, at a point or points of diversion on the
Colorado River approved by the Secretary, so much water as may be necessary for the
beneficial consumptive use for irrigation and domestic uses in Arizona of a maximum of
2,800,000 acre-feet.

(b) The United States also shall deliver from storage in Lake Mead for use in
Arizona, at a point or points of diversion on the Colorado River approved by the
Secretary, for the uses set forth in subdivision (a) of this Article, one-half of any
excess or surplus waters unapportioned by the Colorado River Compact to the extent such
water is available for use in Arizona under said compact and said act, less such excess
or surplus water unapportioned by said compact as may be used in Nevada, New Mexico, and
Utah in accordance with the rights of said states as stated in subdivisions (f) and (g)
of this Article.

(c) This contract is subject to the condition that Boulder Dam and Lake Mead shall
be used: First, for river regulation, improvement of navigation, and flood control;
second, for irrigation and domestic uses and satisfaction of perfected rights in
pursuance of Article VIII of the Colorado River Compact; and third, for power. This
contract is made upon the express condition and with the express covenant that the United
States and Arizona, and agencies and water users therein, shall observe and be subject to
and controlled by said Colorado River Compact and the Boulder Canyon Project Act in the
construction, management, and operation of Boulder Dam, Lake Mead, canals and other
works, and the storage, diversion, delivery and use of water for the generation of power,
irrigation and other uses.

(d) The obligation to deliver water at or below Boulder Dam shall be diminished to
the extent that consumptive uses now or hereafter existing in Arizona above Lake Mead
diminish the flow into Lake Mead, and such obligation shall be subject to such reduction
on account of evaporation, reservoir and river losses, as may be required to render this
contract in conformity with said compact and said act.

(e) This contract is for permanent service, subject to the conditions stated in
subdivision (c) of this Article, but as to the one-half of the waters of the Colorado
River system unapportioned by paragraphs (a), (b) and (c) of Article III of the Colorado
River Compact, such water is subject to further equitable apportionment at any time after
October 1, 1963, as provided in Article III (f) and Article III (g) of the Colorado River
Compact.

(f) Arizona recognizes the right of the United States and the State of Nevada to
contract for the delivery from storage in Lake Mead for annual beneficial consumptive use
within Nevada for agricultural and domestic uses of 300,000 acre-feet of the water
apportioned to the Lower Basin by the Colorado River Compact, and in addition thereto to
make contract for like use of 1/25 (one twenty-fifth) of any excess or surplus waters
available in the Lower Basin and unapportioned by the Colorado River Compact, which
waters are subject to further equitable apportionment after October 1, 1963 as provided
in Article III (f) and Article III (g) of the Colorado River Compact.

(g) Arizona recognizes the rights of New Mexico and Utah to equitable shares of the
water apportioned by the Colorado River Compact to the Lower Basin and also water
unapportioned by such compact, and nothing contained in this contract shall prejudice
such rights.

(h) Arizona recognizes the right of the United States and agencies of the State of
California to contract for storage and delivery of water from Lake Mead for beneficial
consumptive use in California, provided that the aggregate of all such deliveries and
uses in California from the Colorado River shall not exceed the limitation of such uses
in that State required by the provisions of the Boulder Canyon Project Act and agreed to
by the State of California by an act of its Legislature (Chapter 16, Statutes of
California of 1929) upon which limitation the State of Arizona expressly relies.

(i) Nothing in this contract shall preclude the parties hereto from contracting for
storage and delivery above Lake Mead of water herein contracted for, when and if
authorized by law.

(j) As far as reasonable diligence will permit, the water provided for in this
contract shall be delivered as ordered and as reasonably required for domestic and
irrigation uses within Arizona. The United States reserves the right to discontinue or
temporarily reduce the amount of water to be delivered, for the purpose of investigation
and inspection, maintenance, repairs, replacements or installation of equipment or
machinery at Boulder Dam, or other dams heretofore or hereafter to be constructed, but so
far as feasible will give reasonable notice in advance of such temporary discontinuance
or reduction.

(k) The United States, its officers, agents and employees shall not be liable for
damages when for any reason whatsoever suspensions or reductions in the delivery of water
occur.

(l) Deliveries of water hereunder shall be made for use within Arizona to such
individuals, irrigation districts, corporations or political subdivisions therein of
Arizona as may contract therefor with the Secretary, and as may qualify under the
Reclamation Law or other federal statutes or to lands of the United States within
Arizona. All consumptive uses of water by users in Arizona, of water diverted from Lake
Mead or from the main stream of the Colorado River below Boulder Dam, whether made under
this contract or not, shall be deemed, when made, a discharge pro tanto of the obligation
of this contract. Present perfected rights to the beneficial use of waters of the
Colorado River system are unimpaired by this contract.

(m) Rights-of-way across public lands necessary or convenient for canals to
facilitate the full utilization in Arizona of the water herein agreed to be delivered
will be granted by the Secretary subject to applicable federal statutes.

POINTS OF DIVERSION: MEASUREMENTS OF WATER

8. The water to be delivered under this contract shall be measured at the points of
diversion, or elsewhere as the Secretary may designate (with suitable adjustment for
losses between said points of diversion and measurement), by measuring and controlling
devices or automatic gauges approved by the secretary, which devices, however, shall be
furnished, installed, and maintained by Arizona, or the users of water therein in a
manner satisfactory to the Secretary; said measuring and controlling devices or automatic
gauges shall be subject to the inspection of the United States, whose authorized
representatives may at all times have access to them, and any deficiencies found shall be
promptly corrected by the users thereof. The United States shall be under obligation to
deliver water only at diversion points where measuring and controlling devices or
automatic gauges are maintained, in accordance with this contract, but in the event
diversions are made at points where such devices are not maintained, the secretary shall
estimate the quantity of such diversions and his determination thereof shall be final.

CHARGES FOR STORAGE AND DELIVERY OF WATER

9. No charge shall be made for the storage or delivery of water at diversion points
as herein provided necessary to supply present perfected rights in Arizona. A charge of
50¢ per acre-foot shall be made for all water actually diverted directly from Lake Mead
during the Boulder Dam cost repayment period, which said charge shall be paid by the
users of such water, subject to reduction by the Secretary in the amount of the charge if
it is concluded by him at any time during said cost-repayment period that such charge is
too high. After expiration of the cost-repayment period, charges shall be on such basis
as may hereafter be prescribed by Congress. Charges for the storage or delivery of water
diverted at a point or points below Boulder Dam, for users, other than those specified
above, shall be as agreed upon between the Secretary and such users at the time of
execution of contracts therefor, and shall be paid by such users; provided such charges
shall, in no event, exceed 25 per acre-foot.

RESERVATIONS

10. Neither Article 7, nor any other provision of this contract, shall impair the
right of Arizona and other states and the users of water therein to maintain, prosecute
or defend any action respecting, and is without prejudice to, any of the respective
contentions of said states and water users as to (1) the intent, effect, meaning and
interpretation of said compact and said act; (2) what part, if any, of the water used or
contracted for by any of them falls within Article III (a) of the Colorado River Compact;
(3) what part, if any, is within Article III (b) thereof; (4) what part, if any, is
excess or surplus waters unapportioned by said Compact; and (5) what limitations on use,
rights of use and relative priorities exist as to the waters of the Colorado River
system; provided, however, that by these reservations there is no intent to disturb the
apportionment made by Article III (a) of the Colorado River Compact between the Upper
Basin and the Lower Basin.

DISPUTES AND DISAGREEMENTS

11. Whenever a controversy arises out of this contract, and if the parties hereto
then agree to submit the matter to arbitration, Arizona shall name one arbitrator and the
Secretary shall name one arbitrator and the two arbitrators thus chosen shall meet within
ten days after their selection and shall elect one other arbitrator within fifteen days
after their first meeting, but in the event of their failure to name the third arbitrator
within thirty days after their first meeting, such arbitrator not so selected shall be
named by the Senior Judge of the United States Circuit Court of Appeals for the Tenth
Circuit. The decision of any two of the three arbitrators thus chosen shall be a valid
and binding award.

RULES AND REGULATIONS

12. The Secretary may prescribe and enforce rules and regulations governing the
delivery and diversion of waters hereunder, but such rules and regulations shall be
promulgated, modified, revised or extended from time to time only after notice to the
State of Arizona and opportunity is given to it to be heard. Arizona agrees for itself,
its agencies and water users that in the operation and maintenance of the works for
diversion and use of the water to be delivered hereunder, all such rules and regulations
will be fully adhered to.

AGREEMENT SUBJECT TO COLORADO RIVER COMPACT

13. This contract is made upon the express condition and with the express covenant
that all rights of Arizona, its agencies and water users, to waters of the Colorado River
and its tributaries, and the use of the same, shall be subject to and controlled by the
Colorado River Compact signed at Santa Fe, New Mexico, November 24, 1922, pursuant to the
Act of Congress approved August 19, 1921 (42 Stat. 171), as approved by the Boulder
Canyon Project Act.

EFFECTIVE DATE OF CONTRACT

14. This contract shall be of no effect unless it is unconditionally ratified by an
Act of the Legislature of Arizona, within three years from the date hereof, and further,
unless within three years from the date hereof the Colorado River Compact is
unconditionally ratified by Arizona. When both ratifications are effective, this contract
shall be effective.

INTEREST IN CONTRACT NOT TRANSFERABLE

15. No interest in or under this contract, except as provided by Article 7(l), shall
be transferable by either party without the written consent of the other.

APPROPRIATION CLAUSE

16. The performance of this contract by the United States is contingent upon
Congress making the necessary appropriations for expenditures for the completion and the
operation and maintenance of any dams, power plants or other works necessary to the
carrying out of this contract, or upon the necessary allotments being made therefor by
any authorized federal agency. No liability shall accrue against the United States, its
officers, agents or employees by reason of the failure of Congress to make any such
appropriations or of any federal agency to make such allotments.

MEMBER OF CONGRESS CLAUSE

17. No Member of or Delegate to Congress or Resident Commissioner shall be admitted
to any share or part of this contract or to any benefit that may arise herefrom, but this
restriction shall not be construed to extend to this contract if made with a corporation
or company for its general benefit. DEFINITIONS

18. Wherever terms used herein are defined in Article II of the Colorado River
Compact or in Section 12 of the Boulder Canyon Project Act, such definitions shall apply
in construing this contract.

19. IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed
the day and year first above written.

THE UNITED STATES OF AMERICA

By (s) Harold L. Ickes

Secretary of the Interior

STATE OF ARIZONA, acting by and through its

COLORADO RIVER COMMISSION

By (s) Henry S. Wright, Chairman

By (s) Nellie T. Bush, Secretary

Approved this 11th day of Feb., 1944

(s) Sidney P. Osborn

Governor of the State of Arizona