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<p class=MsoNormal><b><font size=3 face="Times New Roman"><span
style='font-size:12.0pt;font-weight:bold'>Following is an analysis by a Natural
Resources Defense Council staff member of renewal contracts to <st1:place
w:st="on">Central Valley</st1:place> Project water beneficiaries. It also
relates to the several print media articles I forwarded to you earlier today. It
includes information regarding the lawsuit filed yesterday by NRDC and
EarthJustice.<o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>Attached is a series of articles in today’s papers related to the
impending renewal of CVP contracts, including a front page LA Times
story. These articles, particularly in statements by BOR staff, confirm
NRDC’s concerns regarding the far-reaching impacts these contracts could
have on the Bay-Delta ecosystem, CALFED, other water users and the
state’s economy. In particular, these stories confirm that:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<ul style='margin-top:0in' type=disc>
<li class=MsoNormal style='mso-list:l0 level1 lfo1'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>The <st1:place
w:st="on"><st1:PlaceName w:st="on">Sacramento</st1:PlaceName> <st1:PlaceType
w:st="on">Valley</st1:PlaceType></st1:place> contracts are for far more
water than these contractors have historically used. The South of Delta
contracts are for far more water than the Bureau is currently capable of
delivering. (LAT) <o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-list:l0 level1 lfo1'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>The Bureau intends
to make full deliveries during the life of these contracts. (<st1:place
w:st="on"><st1:City w:st="on">Eureka</st1:City></st1:place>) <o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-list:l0 level1 lfo1'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>These increased
deliveries are expected to come from increased Delta diversions and new
surface storage projects. (LAT and <st1:place w:st="on"><st1:City w:st="on">Eureka</st1:City></st1:place>)
<o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-list:l0 level1 lfo1'><font size=3
face="Times New Roman"><span style='font-size:12.0pt'>Westlands may not
need all of the water in their contract if significant land is
retired. However, BOR regional director <st1:PersonName w:st="on">Kirk
Rodgers</st1:PersonName> states that although<font color=black><span
style='color:black'> the Westlands contract quantity would remain
unchanged in a new contract, if Westlands retires land the bureau
"would need to reevaluate what the needs are". Of course,
once a new contract is signed, it would be extraordinarily difficult for
the Bureau to revisit these terms. (LAT)</span></font> <o:p></o:p></span></font></li>
<li class=MsoNormal style='mso-list:l0 level1 lfo1'><font size=3 color=black
face="Times New Roman"><span style='font-size:12.0pt;color:black'>The
threatened Delta smelt, one of the dozens of species that could be
affected by these contracts, is at its lowest level in more than 30 years
of monitoring. Striped bass are also at a historically low level.
(SFC and Stockton)</span></font> <o:p></o:p></li>
</ul>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face="Times New Roman"><span
style='font-size:12.0pt;color:black'>Our new suit challenging the OCAP BO (Bureau’s
Operating Criteria and Plan and Biological Opinion) is based in part on the
failure of the Bureau and FWS to study the impacts of full contract deliveries,
such as the impacts of surface storage facilities (e.g. raising Shasta Dam and
upper <st1:place w:st="on"><st1:PlaceName w:st="on">San Joaquin</st1:PlaceName>
<st1:PlaceType w:st="on">River</st1:PlaceType></st1:place> storage), relaxed
environmental protections and increased Delta pumping. NMFS and state
agencies have not analyzed these impacts either.</span></font><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>No state or federal agency has evaluated the questionable water rights
claims upon which the <st1:place w:st="on">Sacramento River</st1:place>
settlement contracts are based.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'>The new CVP contracts also make no provision for implementing a
“beneficiary pays” financing plan for new dams. CVP
contractors have argued that the capital costs for these projects should simply
be added to their current tab – giving them another interest free loan
and decades to repay. The contracts and the Bureau’s statements
appear to reflect that position.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><st1:PersonName w:st="on"><em><i><font size=3 color=gray
face="Times New Roman"><span style='font-size:12.0pt;color:gray'>Byron
Leydecker</span></font></i></em></st1:PersonName><em><i><font color=gray
face="Times New Roman"><span style='color:gray'>, </span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=3 color=gray face="Times New Roman"><span
style='font-size:12.0pt;color:gray'>Chair, Friends of <st1:place w:st="on">Trinity
River</st1:place></span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=3 color=gray face="Times New Roman"><span
style='font-size:12.0pt;color:gray'>Consultant, Californiua Trout, Inc.</span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><st1:address w:st="on"><st1:Street w:st="on"><em><i><font
size=3 color=gray face="Times New Roman"><span style='font-size:12.0pt;
color:gray'>PO Box</span></font></i></em></st1:Street><em><i><font
color=gray face="Times New Roman"><span style='color:gray'> 2327</span></font></i></em></st1:address><o:p></o:p></p>
<p class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><em><i><font
size=3 color=gray face="Times New Roman"><span style='font-size:12.0pt;
color:gray'>Mill Valley</span></font></i></em></st1:City><em><i><font
color=gray face="Times New Roman"><span style='color:gray'>, <st1:State w:st="on">CA</st1:State>
<st1:PostalCode w:st="on">94942-2327</st1:PostalCode></span></font></i></em></st1:place><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=3 color=gray face="Times New Roman"><span
style='font-size:12.0pt;color:gray'>415 383 4810 ph</span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=3 color=gray face="Times New Roman"><span
style='font-size:12.0pt;color:gray'>415 383 9562 fx</span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=3 color=gray face="Times New Roman"><span
style='font-size:12.0pt;color:gray'>415 519 4810 ce</span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><u><font size=3 color=blue face="Times New Roman"><span
style='font-size:12.0pt;color:blue'><a href="mailto:bwl3@comcast.net">bwl3@comcast.net</a></span></font></u></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=3 color=blue face="Times New Roman"><span
style='font-size:12.0pt;color:blue'><a
href="mailto:bleydecker@stanfordalumni.org">bleydecker@stanfordalumni.org</a><u>
</u></span></font><font color=black><span style='color:black'>(secondary)</span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'><a href="http://www.fotr.org">http://www.fotr.org</a></span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><em><i><font size=3 color=blue face="Times New Roman"><span
style='font-size:12.0pt;color:blue'><a href="http://caltrout.org">http://caltrout.org</a></span></font></i></em><o:p></o:p></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'> </span><o:p></o:p></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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