TO: Arizona Water Banking Authority Members FROM: Kim Mitchell, Acting Manager SUBJECT: Amended 2006 Annual Plan of Operation DATE: August 4, 2006 AUTHORITY MEMBERS Herbert R. Guenther, Chairman Charles L. Cahoy, Secretary Maureen R. George John Mawhinney William K. Perry EX OFFICIO MEMBERS Senator Jake Flake Representative Lucy Mason As approved by the Authority at the June 21, 2006 meeting, the 2006 Annual Plan of Operation (Plan) has been amended to reflect changes made to the original Plan as a result of the AWBA’s recent Agreement for Water Storage at the Gila River Indian Irrigation & Drainage District (GRIIDD) Groundwater Savings Facility (GSF). Attached to this memorandum are an Amended Table 2 and a discussion regarding planned water deliveries to the GRIIDD GSF. The Amended Table 2 replaces page 7 of the original Plan and the discussion entitled “Participation in Indian Settlements” is a new heading to be inserted as page 7.1. These changes constitute the Amended 2006 Annual Plan of Operation. Amended Table 2 Water Delivery Schedule Calendar Year 2006 (Acre-feet) AWBA-Recharge Sites PHOENIX AMA : GRUSP GRUSP Interstate HIEROGLYPHIC HIEROGLYPHIC Interstate AGUA FRIA TONOPAH DESERT TONOPAH Interstate Permitted Capacity (AF) May Jun Jul Aug 0 0 0 0 0 8,529 0 0 0 0 0 0 14,842 0 0 0 0 0 0 11,404 0 0 0 0 0 249 10,000 0 0 0 0 0 1,690 10,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100 0 0 0 0 5,687 0 0 0 3,002 0 3,002 8,529 0 8,529 14,842 0 14,842 11,404 0 11,404 0 0 820 50 1,130 2,239 0 0 0 1,897 0 1,560 5,720 0 0 0 583 3,631 0 3,441 0 0 0 0 3,319 300 5,798 0 1,950 2,289 4,239 3,457 5,720 9,177 583 7,072 7,655 0 582 0 3,233 0 1,000 0 318 0 0 1,812 0 1,000 0 370 970 0 902 809 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 AMA TOTAL 4,815 0 4,815 3,130 0 3,130 2,242 809 3,051 3,898 1,720 5,618 3,406 5,543 8,949 2,150 4,514 6,664 2,650 4,300 6,950 2,650 6,000 8,650 3,035 6,714 9,749 3,685 3,925 7,610 4,404 8,900 13,304 3,767 9,900 13,667 6,600 5,732 14,328 7,500 32,997 20,000 5,000 92,157 0 0 0 39,832 52,325 92,157 TOTAL INTRASTATE TOTAL INTERSTATE TOTAL 6,765 2,289 9,054 9,589 5,720 15,309 11,354 7,881 19,235 19,040 10,837 29,877 15,120 15,005 30,125 21,014 16,079 37,093 30,438 19,955 50,393 30,641 25,015 55,656 25,694 22,939 48,633 25,010 18,090 43,100 11,479 26,815 38,294 13,602 29,159 42,761 219,746 199,784 419,530 GSF USF Apr SRP CHANDLER HGTS ID MWD NEW MAGMA QUEEN CREEK RWCD GILA RIVER INDIAN IDD 200,000 35,000 100,000 150,000 100,000 3,000 18,000 54,000 28,000 100,000 37,520 TOTAL INTRASTATE TOTAL INTERSTATE GSF AMA TOTAL PINAL AMA : CAIDD CAIDD Interstate HOHOKAM HOHOKAM Interstate MSIDD MSIDD Interstate GILA RIVER INDIAN IDD 110,000 55,000 120,000 18,480 TOTAL INTRASTATE TOTAL INTERSTATE GSF USF AMA TOTAL TUCSON AMA: Amended August 4, 2006 AVRA VALLEY PIMA MINE RD PMR Interstate LOWER SANTA CRUZ LSC Interstate CAVSARP CAVSARP Interstate 11,000 30,000 BKW KAI FARMS (Red Rock) 16,615 11,231 TOTAL INTRASTATE TOTAL INTERSTATE 50,000 80,000 Jan Feb Mar 0 0 0 0 0 0 0 0 0 0 0 0 3,002 0 0 0 0 0 0 0 0 Sep Oct 0 0 0 0 2,800 10,000 0 2,500 0 2,115 0 2,800 6,850 0 0 100 0 0 0 0 9,583 0 75 0 0 0 0 8,994 16,036 0 16,036 21,373 0 21,373 0 0 0 0 310 9,462 0 0 7,725 0 0 0 3,840 2,828 300 9,117 9,417 310 9,462 9,772 2,828 11,565 14,393 610 1,735 0 1,553 1,720 0 0 400 1,006 2200 0 3,343 2,000 0 7 150 0 2014 0 2,500 2,000 0 Nov Dec 2,500 0 2,300 0 2,800 6,500 3,500 2,500 0 1,000 0 2,800 0 10,000 2,500 0 2,300 0 2,800 0 10,000 0 75 0 0 0 0 5,556 0 83 0 0 0 0 4,770 0 75 0 0 700 0 0 0 25 0 0 1,000 0 810 21,869 0 21,869 19,896 0 19,896 18,953 3,500 22,453 7,075 10,000 17,075 9,435 10,000 19,435 1,650 8,075 0 2,500 0 5,080 4,765 1,650 8,075 0 0 0 10,940 4,472 0 4,225 0 4,500 0 7,500 2,763 0 2,725 0 2,700 0 5,240 2,372 0 2,725 0 1,500 0 3,690 0 0 3,150 0 2,500 0 3,609 400 6,415 15,655 22,070 6,122 19,015 25,137 2,763 16,225 18,988 2,372 10,665 13,037 0 7,915 7,915 400 9,259 9,659 685 719 2200 0 4,700 3,000 2,000 1,047 720 2200 0 4,700 2,000 3,000 650 0 500 0 3,800 2,000 0 650 0 2200 0 3,800 2,000 0 1,035 0 2014 0 4,700 2,000 0 685 0 1000 0 2,925 3,000 0 Total 10,000 7,715 15,939 81,127 23,500 138,281 0 533 0 0 1,700 0 35,400 37,633 152,414 23,500 175,914 3,300 36,700 3,300 20,700 3,300 66,559 17,600 151,459 27,500 123,959 151,459 PARTICIPATION IN INDIAN SETTLEMENTS One objective of the AWBA is assisting with the settlement of water rights claims by Indian communities within Arizona. The state of Arizona has a 100-year firming obligation under the Arizona Water Settlements Act (Settlements Act) P.L. 108-451 that was executed on December 10, 2004. In addition, pursuant to House Bill 2728 executed on April 18, 2005, the AWBA has statutorily mandated responsibilities for the Southside Replenishment obligation. The Indian Firming Study Commission (Study Commission), created by the Arizona legislature to evaluate the potential alternatives for meeting these obligations, concluded that the AWBA, in cooperation with ADWR and the Central Arizona Water Conservation District (CAWCD) is the most appropriate entity to fulfill the State’s firming obligations. House Bill 2835, which included the Study Commission’s recommendations, was subsequently signed by Governor Napolitano on April 12, 2006. The AWBA subsequently entered into an agreement with the Gila River Indian Irrigation & Drainage District (GRIIDD) for water storage at the GRIIDD GSF on June 16, 2006. The associated water storage permits for this facility were also obtained. The GSF is on community lands and is located both in the Phoenix and Pinal AMAs, therefore two water storage permits were required for this facility. This GSF added an additional 56,000 acre-feet per year of storage capacity, however it will only operate through December 30, 2007. This amended Plan includes additional deliveries to the GRIID GSF totaling 53,000 acre-feet; 35,400 acre-feet for the Phoenix AMA and 17,600 acre-feet for the Pinal AMA. The AWBA intends to utilize monies collected from withdrawal fees to pay for deliveries to the GRIIDD GSF. However, because withdrawal fees are limited, deliveries previously scheduled using this fund will instead be shifted to deliveries utilizing 4¢ ad valorem tax in the Phoenix AMA and to deliveries for interstate purposes in the Pinal AMA. The cost share for the GRIIDD is $20 per acre-foot. Long-term storage credits accrued by the Authority at this facility will allow the State to meet a portion of its firming obligations under P.L.108-451, Sec.105 (a). It should be noted that if the enforceability provisions of PL108-451 are not met, the AWBA will retain full rights to the long-term storage credits developed. Amended August 4, 2006 7.1