[Federal Register Volume 61, Number 237 (Monday, December 9, 1996)]
[Proposed Rules]
[Pages 64832-64848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30769]


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DEPARTMENT OF THE INTERIOR

Bureau of Reclamation

43 CFR Part 418

RIN 1006-AA37


Adjustments to 1988 Operating Criteria and Procedures (OCAP) for 
the Newlands Irrigation Project in Nevada

AGENCY: Bureau of Reclamation, Interior.

ACTION: Proposed rule.

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SUMMARY: This proposed rule adjusts the 1988 OCAP for the Newlands 
Irrigation Project (Project). The 1988 OCAP anticipated that irrigated 
acreage in the Project would increase to 64,850 acres. In 1995, 
irrigated Project acreage was approximately 59,023 acres. Adjustments 
are proposed to the Project efficiency requirements, maximum allowable 
diversion calculations, and Lahontan Reservoir storage targets in the 
1988 OCAP to reflect current irrigated acreage and court decrees which 
have lowered the water duty applicable to certain Project lands. To 
better manage diversions from the Truckee River to the Project, 
additional proposed adjustments to the 1988 OCAP provide flexibility in 
using snowpack and runoff forecasts and extending the time frame for 
storing water in Truckee River reservoirs in lieu of diversions to the 
Project from the Truckee River.

DATES: Written comments should be submitted to be received by February 
7, 1997. All comments received by the close of the comment period will 
be considered and addressed in the Final Rule. Comments received after 
that date will be reviewed and considered as time allows.

ADDRESSES: Comments should be sent to: Adjusted OCAP, Truckee-Carson 
Coordination Office, 1000 E. William Street, Suite 100, Carson City, 
Nevada 89701-3116.

FOR FURTHER INFORMATION CONTACT:
Additional copies of 1988 OCAP with proposed adjustments may be 
obtained from: Lahontan Area Office, Bureau of Reclamation, P.O. Box 
640, Carson City, Nevada 89702, Phone (702) 882-3436.
    If you have questions or need additional information contact:

Ann Ball, Manager, Lahontan Area Office, (702) 882-3436

    or

Jeffrey Zippin, Team Leader, Truckee-Carson Coordination Office, (702) 
887-0640.

SUPPLEMENTARY INFORMATION: 

Background

    On April 15, 1988, the Secretary of the Interior (Secretary) 
implemented new Operating Criteria and Procedures (OCAP) governing 
management of water diverted to and used within the Newlands Project. 
These 1988 OCAP were approved by the U.S. District Court for the 
District of Nevada, subject to a hearing on objections raised by 
various parties. In 1990, Congress directed in the Truckee-Carson-
Pyramid Lake Water Rights Settlement Act (Title II of Pub. L. 101-618, 
Section 209(j) (104 Stat. 3294) that the 1988 OCAP remain in effect 
until December 31, 1997, unless changed by the Secretary in his sole 
discretion. Prior to this proposed rule, the 1988 OCAP have not been 
published in the Federal Register.
    These OCAP were designed to further increase the reliance of the 
Project on water from the Carson River, minimize the use of water from 
the Truckee River as a supplemental supply, increase efficiency of 
water use in the Project, and establish a regulatory scheme to manage 
deliveries to Project water users including incentives for efficiency 
and penalties for inefficiency.
    An environmental impact statement (EIS) was prepared on the 1988 
OCAP. That EIS serves as the basis for reviewing the environmental 
effects of proposed adjustments.
    The Department of the Interior (Department) has prepared a draft 
environmental assessment on the adjustments which tiers off of the 
analysis in that EIS. Copies of the draft environmental assessment may 
be obtained from the Truckee-Carson Coordination Office.
    The Department is proposing at this time to make a number of 
revisions to the 1988 OCAP to adjust for changes in use of water 
rights, to increase flexibility, and to clarify and fine-tune the 
language of the OCAP based on experience gained in administering the 
1988 OCAP through eight irrigation seasons. These revisions are 
proposed within the basic framework of the 1988 OCAP and its 
environmental documentation. They are also proposed for codification.
    The need for additional changes to the 1988 OCAP beyond those 
proposed in this rule may be appropriate as well, but consideration of 
such changes is

[[Page 64833]]

expected to require further examination including the preparation of an 
environmental impact statement (EIS).

Description of the 1988 OCAP

    The 1988 OCAP provisions were preceded by a preamble and 
introduction which are equally applicable to the Adjusted OCAP 
proposed. The 1988 OCAP preamble and introduction are here reproduced 
with minor grammatical editing. The following two headings, 1988 OCAP 
Preamble and 1988 OCAP Introduction are taken from the 1988 OCAP.

1988 OCAP Preamble

    The development of Operating Criteria and Procedures (OCAP) for the 
Newlands Project (Project) in western Nevada was initiated in the late 
1960's and has proven to be a divisive, contentious issue for the 
people in Nevada who rely on the waters of the Carson and Truckee 
Rivers. Competition for the water in the Project's desert environment 
is intense and growing. The conflicts among uses are clearly apparent 
in the effects forecast on various areas where the Department of the 
Interior (Department) has program responsibilities. The issue is 
complicated further by the requirements of the Endangered Species Act 
and the listing of the Cui-ui, a fish inhabiting the lower Truckee 
River and Pyramid Lake.
    In order to proceed effectively and fairly, the Department had to 
have guiding principles for the OCAP. These are to:

--Provide water deliveries sufficient to meet the water right 
entitlements of Project water users;
--Meet the requirements of the Endangered Species Act as they 
specifically relate to the Truckee River/Pyramid Lake Cui-ui;
--Fulfill Federal trust responsibilities to the Pyramid Lake Paiute 
Indian Tribe;
--Conserve wetland and wildlife values in both the Truckee and Carson 
River basins;
--Give cognizance to the State laws affecting water rights and uses;
--Provide for stable economies and improve quality of life in the 
region to the extent it is influenced by the Department-managed 
resources and facilities;
--Allow local control and initiative to the maximum extent possible; 
and
--Provide stability and predictability through straightforward 
operation based on actual versus forecast conditions.

    The Department believes that the proposed OCAP best satisfy these 
principles within the limits of the Department's legal authority.
    Each of the competing uses for the water is critical in its own 
right. They are all essentially separable for decision making purposes 
even though they clearly impact upon each other since the available 
supply is far less than the demand.
    The OCAP deal with the operation and use of Federal facilities 
related to the Newlands Project. Therefore, their primary 
responsibility is supplying the water rights to the Project water 
users. To the extent this can be done effectively and efficiently, then 
the remaining water supply is available for other competing uses. The 
secondary impacts of the OCAP must, however, act to support or 
encourage results which benefit the other competing uses.
    The basic structure of the OCAP relies on both rules and incentives 
which we believe will ensure reasonable, efficient water management 
through reliance on local control and initiatives. The direct 
consequences of the OCAP will be delivery of full water entitlements 
within the Newlands Project, protection of endangered species, 
fulfillment of trust responsibilities, and encouragement for the 
protection of other environmental and quality of life values.

1988 OCAP Introduction

    The OCAP shall govern the operation and use of federal facilities 
on the Project.
    When approved by the United States District Court for the District 
of Nevada (Court), the OCAP will supersede all OCAP previously issued 
by the Secretary of the Interior (Secretary) and the 1973 OCAP 
previously issued by the Court in Pyramid Lake Paiute Tribe of Indians 
v. Morton, 354 F. Supp. 252 (D.D.C. 1973). The OCAP are believed to be 
consistent with the decrees in United States v. Alpine Land and 
Reservoir Co., 503 F. Supp. 877 (D. Nev. 1980), substantially affirmed, 
697 F. 2d 851 (9th Cir. 1983), cert. denied, 464 U.S. 863 (1983) and 
United States v. Orr Water Ditch Co., Equity No. A-3 (D. Nev.) (Orr 
Ditch and Alpine decrees, respectively). Implementation of the OCAP 
will ensure that the Secretary: (i) supplies the Project with water to 
meet all valid water rights; (ii) fulfills the federal trust 
responsibility to the Pyramid Lake Paiute Tribe of Indians; (iii) 
fulfills the federal trust responsibility to the Fallon Paiute-Shoshone 
Tribes of Indians; (iv) meets the requirements of the Endangered 
Species Act (16 U.S.C. 1531 et seq.); and (v) provides a framework for 
local decision making which can contribute to the protection of 
wetlands, recreation, economic, and other regional values. Procedures 
are included to monitor water use and Project operations and to enforce 
these OCAP.
    Fundamentally the OCAP are predicated on water being used on the 
water-righted land in a manner similar to the past coupled with the 
Project operating at a reasonable efficiency. The Department believes 
that the OCAP efficiency targets are reasonable because they are at a 
level that can be shown to be achievable, can be obtained without 
significant capital expenditures and are within the range of 
efficiencies achieved in comparable systems.
    The OCAP are designed to operate in a manner to produce a long term 
average effect recognizing that each year will necessarily be different 
as weather and actions by individual water users vary. It is also 
critical that OCAP compliance be measured based on facts which can be 
readily determined and reviewed, rather than on forecasts, theories, or 
models. In combination, the use of a factual base and a long-term 
average project efficiency yield a methodology which will operate in a 
predictable fashion that minimizes disputes and allows the landowners 
and others to make knowing, rational decisions for themselves.
    The OCAP assure proper water use and a reasonable efficiency by 
establishing a methodology consisting of three basic elements. First, 
it requires monitoring headgate deliveries against the acreage eligible 
to receive Project water multiplied by the court set water duty.
    Second, the OCAP establish efficiency targets for the Project 
distribution system. The efficiency target varies with the actual valid 
headgate deliveries. Since many of the system losses are relatively 
constant, the system efficiency declines with smaller headgate 
deliveries and increases with larger deliveries. This also allows an 
automatic adjustment in efficiency for drought conditions. The OCAP 
provide for incentives if the District's operation is more efficient 
and for disincentives if it is less efficient than the OCAP target 
efficiency. Thus, through use of the incentive provisions, the District 
can offset deficiencies in time of drought or use the water saved for 
its desired purposes (e.g., wetlands, recreation, power, etc.) 
consistent with Nevada and Federal Law.
    Third, as a protection against the first two elements allowing the 
operation to become excessively out of balance, the OCAP establish a 
maximum allowable diversion (MAD) limit for irrigation and a maximum 
efficiency deficit (MED). No

[[Page 64834]]

limit has been placed on the ability of the District to gain through 
the incentive feature.
    The MAD and MED limits are set to provide an operating cushion 
approximately 26,000 acre-feet above and below, respectively, the 
expected irrigation diversions, assuming the District's operation is at 
an average annual efficiency at the OCAP target level. Neither limit is 
expected to ever be encountered in actual operation.
    The operating cushion size was chosen in relation to historic 
operations. Historically, not all water users have used their full 
entitlements in a given year. Either the season doesn't require it, the 
crops planted need less, or the land cannot productively accommodate 
the full amount. Whatever the reason, the Project uses about 26,000 
acre-feet less every year on average than its entitlement for actual 
irrigated acres. This provides a reasonable cushion, or insurance 
protection, above the normal expected use, yet does not in any way 
limit or impact on the water users' rights. It is also an important 
protection for other uses. Therefore, rather than trying to forecast 
the expected actual use each year and adding the operating cushion to 
get the MAD, it is more direct and predictable to simply determine the 
anticipated acreage to be irrigated at its full water duty for the MAD.
    The MED is a fixed number set equal to the operating cushion. It is 
the limit on how much accumulated storage can be borrowed from the 
future to satisfy a less efficient operation. The MED is for the 
protection of the water users against too severe an impact in the case 
of a low water year. Only the MAD can affect current operations within 
an irrigation season. The MED operates on the subsequent year only.
    These OCAP will be enforced in cooperation with the Federal Water 
Master and the Nevada State Engineer and will govern delivery of all 
Project water. The OCAP are applicable to the Truckee-Carson Irrigation 
District or any other Project operating entity.

1996 Revisions to the OCAP in General

    1. Changes in Water Demand: The 1988 OCAP envisioned and provided 
for increasing irrigated acreage. It was assumed the project would grow 
from about 60,900 irrigated acres and a headgate entitlement of 226,450 
acre feet of water on average beginning in 1988 to as much as 64,850 
irrigated acres and a headgate entitlement of 237,485 acre feet on 
average by 1992 and thereafter with certain efficiency targets and 
assumptions about water duties and use of entitlements. The annual 
calculations of the maximum allowable diversion (MAD) to the Project 
and efficiency requirements in use today are based, in part, on this 
assumed projected growth to 64,850 irrigated acres and the other 1992 
project water demand assumptions. In practice, this growth has not 
occurred. Actual acreage served in 1995 and assumed for 1996 and 
thereafter for at least several years, and other key parameters in 
determining project water use are displayed in Table A below along with 
the comparable assumptions made in the 1988 OCAP.

                            Table A.--Comparison of Project Water Balance Assumptions                           
----------------------------------------------------------------------------------------------------------------
                                                                1988 OCAP assumptions      Current assumptions  
                                                             ---------------------------------------------------
                                                                  1988         1992         1995       Proposed 
----------------------------------------------------------------------------------------------------------------
Acres.......................................................       61,630       64,850       59,023       59,023
Average duty in acre-feet per acre (af/a) \1\...............         3.67         3.66         3.49         3.49
Headgate entitlements in acre-feet..........................      226,555      237,485      206,230      206,230
Estimated percent use of entitlement........................           90           90           90         93.2
Resulting demand............................................      203,900      213,740      185,555      192,206
Percent target efficiency \2\...............................         59.3         66.7         66.7         65.7
Expected diversion in acre-feet.............................      343,845      320,450      278,193      292,627
Maximum allowable diversion in acre-feet....................      371,055      346,985      301,506      308,319
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\1\ Average duty includes bench lands at 4.5 af/a, bottom lands at 3.5 af/a, pasture lands at 1.5 af/a, and     
  deliveries to wetlands of less than full entitlement.                                                         
\2\ The target efficiencies for 1988, 1992, and 1995 are as prescribed in the 1988 OCAP; the Proposed target    
  efficiency is calculated.                                                                                     

    The differences between 1992 and 1995 stem from the following:
     Acreage: The anticipated increase in acreage has not 
materialized; actual irrigated acreage in 1995 was 59,023 acres. This 
amount reflects the efforts of the Bureau of Reclamation (BOR) to limit 
irrigation to water-righted lands and that, on average, irregators have 
not increased the acreage of lands in production.
     Average Water Duty: The average water duty for the project 
has been reduced as a result of the so-called ``bench/bottom 
litigation'' (1995 Order of Judge McKibben, in U.S. v. Alpine, United 
States District Court for the District of Nevada No. D-185). This 
bench/bottom court ruling approved a change in the designation of some 
Project lands from bench lands to bottom lands. Bench lands have a 
maximum water duty of 4.5 acre-feet/acre; bottom lands have a maximum 
water duty of 3.5 acre-feet/acre. (The Project includes pasture lands 
with a duty of 1.5 acre-feet/acre.) The bench/bottom decision 
reclassified approximately 9,000 acres of irrigated lands in the 
project, reducing Project water entitlements by approximately 9,000 
acre-feet. The change in demand is expected to be approximately 5,000 
acre-feet of water when measured at the farm headgates. This is based 
on historic use of about 90 percent of the headgate entitlement at 4.5 
acre-feet/acre versus projected use of 100 percent of the 3.5 acre-
feet/acre entitlement.
     Average Use of Entitlement: Actual water use as a 
percentage of entitlement is usually less than 100 percent, 
historically about 90 percent. The reduced percentage of entitlement 
use results from on-farm practices and efficiencies, fallowing of 
lands, and varying weather conditions. The current projected percent 
use of entitlement is 93.4 percent. This is based on irrigation use of 
91.8 percent and 95 percent for Carson and Truckee Divisions, 
respectively, and 100 percent water use for pasture lands and wetlands. 
Several factors will affect use of entitlement in the future:

--As noted above, irrigators whose lands were reclassified from bench 
lands with a water duty of 4.5 acre-feet per acre to bottom lands with 
a 3.5 acre-feet per acre duty may use more than 90 percent of their 
entitlement, an increase in use.

[[Page 64835]]

--The Fallon Paiute-Shoshone Tribes reservation is within the Project 
and Tribes have a cap on the water they receive. The Tribes are 
expected to use their full water entitlement every irrigation season.
--The Naval Air Station Fallon, as part of an agreement with the U.S. 
Fish and Wildlife Service (FWS), will use less of its irrigation water 
and is also developing less water intensive cropping strategies 
decreasing percent use of entitlement.
--The FWS and the State of Nevada are acquiring water rights within the 
Newlands Project for restoration of wetlands at Stillwater National 
Wildlife Refuge. The FWS and Nevada are transferring the consumptive 
use portion, 2.99 acre-feet per acre, of the water rights they acquire. 
This changes their entitlement to 2.99 acre-feet per acre of which they 
are expected to take 100%, thus increasing percent use of entitlement.

    These and other changes in water use will cause the percent use of 
entitlement to vary from year to year. The percent use will be 
determined based on actual experience and used in calculating the 
expected irrigation diversion for each irrigation season.
     Efficiency: Within the same size project, more irrigated 
acreage results in greater efficiency; with less irrigated acreage 
lower efficiencies are expected. Project irrigated acreage never 
reached the level anticipated in the 1988 OCAP but the associated 
target efficiencies have remained in effect. As water rights are 
acquired for Stillwater Wildlife Refuge (Pub. L. 101-618, section 206), 
the effect on Project efficiencies may vary at first, but as more water 
is acquired and moves to the Refuge, efficiencies should improve 
stemming from the concentration of deliveries through the system.

Specific Proposed Adjustments to 1988 OCAP

    Even with the prospect of revising the OCAP in the future, there 
are a number of adjustments to the 1988 OCAP that will help manage the 
Project during the interim period until a revised OCAP can be 
promulgated. This proposed rulemaking addresses only those adjustments 
to the 1988 OCAP in the following areas:
    1. Target Efficiency adjustments (Sec. 418.1(c)(3)(i)(A) and 
Newlands Project Water Budget table): The 1988 OCAP envisioned and 
allowed for increasing irrigated acreage, assuming the Project would 
grow to over 64,850 irrigated acres by 1992 compared to a base of 
approximately 60,900 acres being irrigated in 1987. The annual 
calculations of the maximum allowable diversion (MAD) to the Project 
and efficiency requirements currently in use are based on a Project of 
64,850 or more irrigated acres and a commensurate target efficiency of 
68.4 percent. However, the acreage increase has not materialized and 
current irrigated acreage is approximately 59,023 acres. The Project 
efficiency that can be achieved, which is the relationship between the 
total annual diversion to the Project and total delivery to farm 
headgates, is directly related to irrigated acreage; efficiency 
generally decreases as the irrigated acreage in the Project decreases. 
The 1988 OCAP does not accurately reflect the current acreage, and as a 
consequence, the higher efficiency requirement remains in effect. This 
may decrease the water available to the Project as calculated in the 
MAD and increases the likelihood of penalties for inefficiency.
    In response to less acreage and varying water demand, the 
Department proposes to calculate the annual Project water budget for 
each irrigation season in accordance with the elements in the Newlands 
Project Water Budget table of the Adjusted OCAP. Each year the Maximum 
Allowable Diversion (MAD) would be based on the projected irrigated 
acreage for that year and applicable water duties. The other elements 
in Newlands Project Water Budget, including appropriate Project 
efficiency, would be calculated to determine the MAD and Project 
efficiencies. Through this proposal, the Project water budget can 
accommodate anticipated changes in Project characteristics.
    Using the 1995 Actual Acres column from the Newlands Project Water 
Budget, Maximum Headgate Entitlement (line 2) is the product of 
Irrigated Acres (line 1) and the average water duty (calculated 
annually). Variable distribution system losses of Canals/Laterals 
Evaporation (line 3), Canals/Laterals Seepage (line 5), and Operational 
Losses (line 7) are interpolated to determine the Total Losses (line 8) 
for a given Project size. The combined Maximum Headgate Entitlement 
(line 2) and the Total Losses (line 8) determines the MAD (line 9), and 
the relationship of Maximum Headgate Entitlement (line 2) to Total 
Losses (line 8) determines Project Efficiencies at 100 percent water 
use (line 10). Actual use of entitlement, based on historic patterns, 
is less than 100 percent, so the Maximum Headgate Entitlement is 
adjusted by the projected percent use of entitlement (calculated 
annually) to yield Expected Headgate Entitlement Unused (line 11) and 
the Diversion Reduction for Unused Water (line 12). The Diversion 
Reduction for Unused Water (line 12) is subtracted from the MAD (line 
9) to determine Expected Irrigation Diversions (line 13). Finally, the 
adjusted Project demand (calculated from line 2 minus line 11) is 
divided by the Expected Irrigation Diversions (line 13) to determine 
the Expected Efficiency (line 14).
    The effect of this proposal is to have OCAP that more accurately 
reflect the Project water demand. Reducing the annual Project 
efficiency target will recognize the limitation of the present water 
distribution system facilities and assist the Project in achieving 
efficiency requirements. No changes are proposed for the 1988 OCAP 
relative to how the MAD is calculated and administered, determination 
of eligible land, reporting, or calculation of credits or debits.
    2. Adjustments in Storage Targets (Sec. 418.3(e) and tables of 
Monthly Values for Lahontan Storage Computations and End of Month 
Storage Targets for July Through December): The 1988 OCAP prescribes 
when water may be diverted from the Truckee River to supplement Carson 
River inflow to Lahontan Reservoir to serve the Carson Division of the 
Project. (The Truckee Division of the Project is supplied entirely by 
water from the Truckee River.) The Truckee River diversion to the 
Carson Division is governed by end-of-month storage target levels in 
Lahontan Reservoir. Water is diverted from the Truckee to the Reservoir 
only if its is forecast that the storage target will not be met by 
Carson River inflow by the end of the month. In years of low flow on 
the Carson River, a greater percentage of the Carson Division Project 
water supply is diverted from the Truckee River. In wet years, the 
Carson Division supply may come entirely from the Carson River. Thus, 
storage targets are used to help maintain a steady water supply despite 
the natural climatic variability and differences in annual runoff 
between the two river basins.
    The formula used to determine how much water may be diverted to 
Lahontan Reservoir from the Truckee River in January through June 
relies, in part, on the runoff forecast for the Carson River. The 
imprecision inherent in such forecasting can lead to variable 
consequences. Sometimes more Truckee River is diverted than is needed 
to serve Project water users. This is particularly problematic when the 
Carson River fills Lahontan Reservoir to the point that water spills 
over Lahontan Dam or so that a precautionary spill (release) of water 
must be made to avoid later

[[Page 64836]]

flooding. In either situation, spilled water that cannot be transported 
to water-righted lands or Lahontan Valley wetlands flows into Carson 
Sink in the desert. This situation occurred most recently in 1996 with 
the consequence that Truckee River water that could have flowed into 
Pyramid Lake contributed to water that was spilled.
    Because of their imprecision, forecasts for Carson River runoff do 
not always reflect actual conditions and the water may not materialize. 
If not enough water was brought over from the Truckee River earlier in 
the water year, or Truckee River flow is insufficient to make up for 
the shortfall from the Carson River, then the water supply may be 
inadequate to meet the annual irrigation demand. This situation 
occurred in 1994 when the Carson River was forecast to have a 100 
percent water year but only produced a 50 percent water supply.
    Two of the objectives of OCAP are to minimize spills and moderate 
shortages. It is important to note that for the 94 years of records, 
the climatic/hydrologic variability of both rivers is so great that 
even if there were no limits on the diversion of Truckee River water, 
in some years shortages would result. Conversely, even if no Truckee 
River water were diverted, in some years Lahontan Reservoir would spill 
just from Carson River inflow.
    The 1988 OCAP has a June end-of-month storage target of 215,000 
acre feet in Lahontan Reservoir. The 215,000 acre-feet was based on 
serving at least 5,000 more acres of water-righted and irrigated land 
than has been irrigated in actual practice. The reclassification of 
some bench lands to bottom lands further reduces water demand in the 
Carson Division. The difference in headgate demand between what the 
1988 OCAP projected and current Carson Division demand is approximately 
21,000 acre-feet. The current storage targets permit unnecessary 
diversions from the Truckee River to the Project. The proposed Adjusted 
OCAP storage targets are based on the lower Carson Division demand and 
reducing water loss to seepage and evaporation. Accordingly, the 
proposed end-of-June storage target is adjusted to 174,000 acre-feet, 
as shown in the table Monthly Values for Lahontan Storage Calculations. 
The June storage target is important because it is one of the terms in 
the formula used to calculate the monthly Truckee River diversion to 
the Project for January through June.
    A comparison of the 1988 OCAP and proposed Adjusted OCAP storage 
targets for Lahontan Reservoir are shown in Table B of this preamble.

  Table B.--Comparison of 1988 OCAP and Proposed Adjusted OCAP Lahontan 
                        Reservoir Storage Targets                       
                             [In acre-feet]                             
------------------------------------------------------------------------
                                                               Adjusted 
                     Month                       1988 OCAP       OCAP   
------------------------------------------------------------------------
January-June..................................      215,000      174,000
July..........................................      160,000      139,000
August........................................      140,000       95,000
September.....................................      120,000       64,000
October.......................................       80,000       52,000
November......................................      160,000       74,000
December......................................      210,000      101,000
------------------------------------------------------------------------

    The adjusted storage targets for these months appear in the table 
End of Month Storage Targets for July Through December in the proposed 
rule. The adjusted storage targets would be used to calculate 
diversions from the Truckee River in accordance with Sec. 418.3 of the 
proposed rule.
    The proposed storage targets were developed using the Truckee River 
settlement negotiations water balance model. The model was used to 
examine how different storage targets affected spills, inflow to 
Pyramid Lake, and other parameters. Key assumptions used in modeling 
were reduced Project water demand from the 1988 OCAP, lower efficiency 
targets, current Truckee River operations, and Project shortages 
consistent with the 1988 OCAP. The model uses the 94-year (1901-1995) 
historic hydrologic record for the Truckee and Carson Rivers.
    A series of modeled storage targets was evaluated based on the 
degree to which a set of targets reduced spills, increased inflow to 
Pyramid Lake, increased the estimated number of spawning years for cui-
ui, increased the estimated number of cui-ui, reduced Lahontan 
Reservoir and Truckee Canal seepage and evaporation losses, and held 
frequency and magnitude of Project shortages consistent with the 1988 
OCAP. These goals are consistent with the Secretary of the Interior's 
responsibilities as the District Court ruled in Tribe v. Morton.
    Though not a specific feature of the Adjusted 1988 OCAP, the 
modeling used in making decisions on this proposed rule took cognizance 
of the 4,000 acre foot minimum pool that the Truckee-Carson Irrigation 
District voluntarily has maintained in Lahontan Reservoir to protect 
fish resources there. Though this action to maintain a minimum pool is 
purely voluntary on the part of TCID and Newlands Project water right 
holders, it provides environmental benefits, was assumed to be 
continued into the future, and was credited in the modeling used to 
establish new Lahontan storage targets; that is to say, the targets 
would have been somewhat lower to achieve the same release shortage 
percentage and Truckee River inflow volume to Lahontan Reservoir 
assuming no anticipation of the 4,000 acre-foot minimum pool.
    Table C compares the modeled current conditions under the 1988 OCAP 
to those under the Adjusted 1988 OCAP for each of these elements.

                               Table C.--Modeled Results for OCAP Storage Regimes                               
----------------------------------------------------------------------------------------------------------------
              Parameter                     1988 OCAP \1\        Proposed adjusted OCAP         Difference      
----------------------------------------------------------------------------------------------------------------
Truckee Canal and Lahontan Reservoir   61,800 af \2\..........  53,600 af..............  8,200 af.              
 Losses.                                                                                                        
Reservoir Spills.....................  42,100 af..............  37,500 af..............  4,600 af.              
Lahontan Release Shortage............  7,820 af...............  6,880 af...............  940 af.                
Release Shortage as Percentage of      2.68%..................  2.54%..................  0.14%.                 
 Demand.                                                                                                        
Mininum Pool.........................  0......................  4,000 af...............  4,000 af.              
Number of Shortage Years.............  9 years................  9 years................  .......................
Truckee River Inflow to Pyramid Lake.  445,500 af.............  480,700 af.............  35,200 \3\ af.         
Cui-ui Spawning Years................  69 years...............  74 years...............  5 years.               
Ending Number of Adult Female Cui-ui.  40,300.................  304,300................  264,000.               
----------------------------------------------------------------------------------------------------------------
\1\ Modeled results based on the 1992 Newlands demand assumptions from the 1988 OCAP, the 94-year hydrologic    
  record (1901-1995), and 1995 Truckee River operating conditions.                                              
\2\ af=acre-fee.                                                                                                
\3\ The difference in inflow to Pyramid Lake results from reduced Project acreage and reduced Truckee Canal and 
  Reservoir losses.                                                                                             


[[Page 64837]]

    The values are averages for the 94-year period of record. In every 
category listed above, the modeled results show improvement under the 
proposed storage targets as compared with the 1988 OCAP modeled with 
64,800 irrigated Project acres and current Truckee River conditions. A 
reduction of water loss and spill from the Project will increase inflow 
to Pyramid Lake. Shortages to the Project are reduced under the 
proposed storage targets by approximately 2,500 acre-feet compared to 
the current target regime using the 1988 OCAP and 1995 acreage and 
water use. However, today's irrigated acreage has not matched what was 
anticipated in the 1988 OCAP so Project water supply has benefited from 
storage targets based on higher water demand assumptions in place.
    3. Truckee River Storage in Lieu of Diversions (Sec. 418.3(e)(8)): 
Project diversions from the Truckee River may be fine-tuned by 
retaining water in upper Truckee River reservoirs that would otherwise 
have been diverted to Lahontan Reservoir to meet storage targets. 
Depending upon how much Carson River runoff reaches Lahontan Reservoir 
and whether storage targets are met by the Carson River inflow, the 
water retained in storage may be released later in that year and 
diverted to Lahontan Reservoir for delivery to the Carson Division, or 
retained for Pyramid Lake if the water is not needed for Carson 
Division irrigation.
    Under the 1988 OCAP, water may be stored upstream on the Truckee 
River in lieu of diversion only from April to June. In 1995, this 
limitation contributed to approximately 70,000 acre-feet of water being 
diverted from the Truckee River to Lahontan Reservoir before March 31, 
then spilling because of high Carson River runoff. None of the Truckee 
River water was needed because the Carson River more than filled 
Lahontan Reservoir and precautionary releases were made to avoid 
spilling over the dam. While the 70,000 acre-foot-diversion from the 
Truckee was controversial, it resulted from managing the diversion in 
strict adherence with the 1988 OCAP targets. The proposed Adjusted OCAP 
provides more flexibility to reduce such unnecessary diversions.
    Consistent with managing Projects diversions from the Truckee 
River, the proposed rule expands the opportunity to credit store water 
for the Project in reservoirs on the upper Truckee River by allowing 
storage as early as January of each year. The water would be credited 
based on water actually retained in Trukee River reservoirs or, if 
water was not being released for Project diversion, credited as 
Newlands Project water in Stampede Reservoir adverse to other water 
(fish water) stored in Stampede Reservoir. In the latter situation, 
concurrence by the U.S. Fish and Wildlife Service (FWS) will be 
required. For example, a reduction of diversions in January through 
March of 1995, would have required FWS approval because water was not 
being released for Project diversion. Stored water could be released 
for diversion to Lahontan Reservoir, if needed, as early as July 1 
through the end of the irrigation season, but not thereafter. The Water 
would only be used for the Carson Diversion. Water in storage could be 
exchanged to other reservoirs but it will not carry over to the next 
year for use in the Project. If it is not used in the year in which it 
is stored, it will not be available thereafter to the project. To 
protect the water users, the water held in storage on the Truckee River 
would not be reduced as a result of spill or evaporation and would be 
gaged at the U.S. Geological Survey gage on the Truckee Canal near 
Wadsworth, Nevada, to ensure that the diversion to the Project matches 
the diversion foregone earlier in the season. Water stored but not 
needed for the Project would be managed to benefit endangered cui-ui in 
Pyramid Lake.
    The proposed adjustment provides the flexibility to reduce 
excessive diversions from the Truckee River. As proposed, there is no 
risk to the Project water users and there is potential benefit for 
Pyramid Lake. The BOR is expected to use this proposed provision only 
in years when Carson River runoff is forecast to be above average and 
is intended to fine tune diversions and avoid over-diversions from the 
Truckee River. Such storage in Stampede Reservoir or other Truckee 
River Reservoirs is not intended to make up for shortages in drier 
years. There is little advantage to foregoing diversions in below 
average runoff years if the likelihood is that all the credit stored 
water would need to be diverted to the Project in any event. The 
changes proposed in Sec. 418.3(e)(8) of the rule include provisions for 
BOR to consult with TCID, the Federal Water Master, FWS, Bureau of 
Indian Affairs (BIA), and the Pyramid Lake Paiute Tribe before any 
credit storing is initiated.
    4. Expanded Forecasting (Sec. 418.3(e)(1)): In calculating the 
January to June monthly diversions from the Truckee River, the 1988 
OCAP uses the monthly forecast for April through July runoff published 
by the Natural Resources Conservation Service (NRCS) (formerly the Soil 
Conservation Service). Rather than continuing to rely on that forecast 
alone, Sec. 418.3(e)(1) of the proposed Adjusted OCAP provides 
flexibility to examine other forecasts and allows use of a deliberative 
process to determined how to manage Truckee River diversions. The 
intent of this change is to allow the BOR to take advantage of other 
forecasts and the experience and knowledge of the Federal Water Master, 
the TCID water master, and other parties. The desired effect of this 
change is to improve precision in forecasting and managing the Truckee 
River diversion to the Project to avoid spills and shortages.
    5. Additional Revisions: In addition to the proposed change 
identified in 1. through 4. above, a number of minor revisions have 
been made to the 1988 OCAP. Most changes are editorial and do not 
affect the meaning of the text. Some changes provide opportunities for 
consultation with interested and effected parties before BOR makes a 
decision.
    A few changes add language to clarify or interpret the meaning of 
the 1988 OCAP in light of experience administering the OCAP, passage of 
time, or new statutory provisions. Changes to the text of the 1988 OCAP 
occur at:
    Section 418.1: Other Project purposes are added in accordance with 
Pub. L. 101-618, 104 Stat. 3289, Sec. 209 (a)(1).
    Section 418.1 (c)(3) (i) (B): Explains the use of efficiencies in 
calculating the MAD.
    Section 418.3 (c): Calculates terminal flow in the Truckee Canal by 
averaging flows during the time when water is not being diverted to 
Lahontan Reservoir.
    Section 418.3 (g): Subtracts Rock Dam Ditch deliveries from Carson 
Division demand and adds it to Truckee Division demand.
    Section 418.3 (h) (1): Water captured in Project facilities from a 
spill or precautionary draw down is used to make deliveries to eligible 
lands but does not count as a Project diversion or as Lahontan 
Reservoir storage.
    Section 418.7(b): Deletes the reference to the February 14, 1984, 
Contract for Operation and Maintenance between the United States and 
the District.
    Section 418.9 (f) (4): Adds new text clarifying that a natural 
drought greater than or equal to the debit will eliminate the debit.
    Section 418.9 (h)(2): Allows TCID to divert up to the MAD if needed 
to meet headgate entitlements.

Coordination With the Public

    The Department developed the proposed adjustments to the 1988 OCAP 
in consultation with the BOR, FWS, BIA, and other interested and 
affected

[[Page 64838]]

parties in western Nevada. Four public meetings were held in Fernley, 
Nevada, to discuss the four main revisions to the 1988 OCAP described 
above. Participants in the public meetings were representatives from 
the State of Nevada, Churchill, County, Washoe County, Town of Fernley, 
TCID, Pryamid Lake Paiute Tribe, Fallon Paiute-Shoshone Tribes, 
Lahontan Valley Environmental Alliance, Newlands Water Protective 
Association, The Nature Conservancy, and members of the public.

Administrative Matters

     This rule is not a significant rule under Executive Order 
(E.O.) 12866 and does not require review by the Office of Management 
and Budget.
     As required by the Regulatory Flexibility Act, it is 
hereby certified that this rule will not have a significant impact on 
small business entities.
     This rule does not include any collections of information 
requiring approval under the Paperwork Reduction Act.
     The Department has preliminarily determined that the 
proposed rule is not a major Federal action having significant effects 
on the human and natural environment. A draft environmental assessment 
(EA) has been prepared on the effects of the proposed rule. The EA will 
be reviewed in light of comments on the proposed rule.
     The proposed rule has no substantial effects on Federalism 
under the requirements of E.O. 12612.
     The proposed rule does not have a significant impact on 
family formulation, maintenance, and general well being under the 
requirements of E.O. 12606.
     The proposed rule does not represent a government action 
that would interfere with constitutionally protected property rights 
and does not require a Takings Implications Assessment under E.O. 
12630.
     The proposed rule meets the applicable standards of civil 
justice reform in accordance with E.O. 12988.
     The proposed rule will not result in aggregate annual 
expenditures in excess of $100 million by state, local, and tribal 
governments, or the private sector and is, therefore, not subject to 
the requirements of Section 202 of the Unfunded Mandates Reform Act of 
1995 (Pub. L. 104-4).
    The author of this rule is Jeffrey Zippin of the Department of 
Interior, Truckee-Carson Coordination Office.
    The proposed rule replaces the 1967 OCAP regulations at 43 CFR 418. 
That regulation was superseded by subsequent U.S. District Court-
approved OCAP, including the 1988 OCAP, which are the basis for this 
proposed rule.
    List of Subjects in 43 CFR Part 418; Irrigation, Water supply, 
Newlands Irrigation Project; Operating Criteria and Procedures.

    Dated: November 27, 1996
John Garamendi,
Deputy Secretary.

    For the reasons set forth in the preamble, 43 CFR part 418 is 
proposed to be revised as follows:

PART 418--OPERATING CRITERIA AND PROCEDURES FOR THE NEWLANDS 
RECLAMATION PROJECT, NEVADA

Sec.
418.1  Conditions of water delivery.
418.2  Monitoring diversions.
418.3  Operations management.
418.4  Water rights.
418.5  Prohibited deliveries.
418.6  Violations.
418.7  Enforcement.
418.8  Water management and conservation.
418.9  Implementation.
418.10  Fallon Paiute-Shoshone Indian Reservation.

Appendix A--Expected Project Distribution System Efficiency

    Authority: 32 Stat. 388, et. seq,; 43 U.S.C. 373; 70 Stat. 775; 
72 Stat. 705; 104 Stat. 3289.


Sec. 418.1  Conditions of water delivery.

    Project water may be delivered only to serve valid water rights 
used for maintenance of wetlands, fish and wildlife including 
endangered and threatened species, recreation, domestic and other uses 
and for irrigation of eligible land. Domestic and other uses of Project 
water are as defined by the Orr Ditch and Alpine! decrees. Eligible 
land is defined as Project land which at the time of delivery has a 
valid water right and either: Is Classified as irrigable pursuant to 
Bureau of Reclamation (Bureau) land classification standards 
(Reclamation Instruction Series 510); or has a paid out Project water 
right.
    (a) Irrigation deliveries. Project irrigation water deliveries may 
be only to eligible land to be irrigated. The District shall maintain 
records for each individual water right holder indicating the number of 
eligible acres irrigated and the amount of water ordered and delivered.
    (1) Eligible land actually irrigated. During each year, the 
District, in cooperation with the Bureau, shall identify and report to 
the Bureau the location and number of acres of eligible land irrigated 
in the Project. Possible irrigation of ineligible land will also be 
identified. The Bureau will review data to assure compliance with these 
OCAP. The District in cooperation with the Bureau will be responsible 
for field checking potential violations and immediately stopping 
delivery of Project water to any ineligible land. The Bureau may also 
audit as appropriate.
    (2) Eligible land with transferred water rights. The District water 
rights maps dated August 1981 through January 1983 will be used as the 
basis for determining lands which have a valid water right. The 
original maps will be maintained by the District. The District shall 
provide copies of the maps to the Bureau. The District will alter the 
maps and the copies to account for water right transfer as they are 
approved by the Nevada State Engineer.
    (3) Other eligible land. The Bureau will also identify eligible 
land that was not irrigated during the prior irrigation season.
    (4) Notification and review. (i) Eligible land anticipated to be 
irrigated. (A) Anticipated changes in irrigated eligible land from the 
prior year will be reported to the Bureau's Lahontan Basin Projects 
Office by the District by March 1 of each year. The District will 
adjust the acreage of the eligible land anticipated to be irrigated to 
correct for inaccuracies, water right transfer that have been finally 
approved by the Nevada State Engineer, and any other action than 
impacts the number of eligible acres, acres anticipated to be 
irrigated, or water deliveries. As the adjustments are made, the 
District will provide updated information to the Bureau for review and 
approval. The District shall adjust anticipated water allocations to 
individual water users accordingly.
    The allocations will be based on a maximum annual entitlement of 
3.5 acre-feet (AF) per acre of bottom land, 4.5 AF per acre of bench 
land, and 1.5 AF per acre of pasture land that is anticipated to be 
irrigate and not by the number of water-righted acres.
    (B) The District will provide the individual water users with the 
approved data regarding the anticipated acreage to be irrigated and 
water allocations for each water user that year. Any adjustments based 
on changes in lands anticipated to be irrigated during the irrigation 
season must be reported by the individual water user to the District. 
The District will, in turn, notify the Bureau of any changes in 
irrigated acreage which must be accounted for. Each landowner's 
anticipated acreage must be less than or equal to the landowner's 
eligible acreage.
    (C) Should a landowner believe that the number of acres of eligible 
land he or she is entitled to irrigate is different from the number of 
acres as approved by the Bureau, the landowner is

[[Page 64839]]

required to notify the District and present appropriate documentation 
regarding the subject acreage. The District shall record the 
information and present the claim to the Bureau for further 
consideration. If the Bureau determines that there is sufficient 
support for the landowner's claim, then adjustments will be made to 
accommodate the changes requested by the landowner. If the Bureau 
disallows the landowner's claim, the Bureau shall notify the District 
is writing. The District will, in turn, inform the landowner of the 
disposition of the claim and the reasons, therefore, and will further 
instruct the landowner that he or she may seek judicial review of the 
Bureau's determination pursuant to the Orr Ditch and Alpine decrees. If 
the dispute affects the current year, then the Bureau and the District 
will seek to expedite any court proceeding.
    (ii) Changes in domestic and other uses. By March 1 of each year, 
the District shall reports to the Bureau all anticipated domestic and 
other uses. This notification shall include a detailed explanation of 
the criteria utilized in allowing the use and sufficient documentation 
on the type and amount of use by each water user to demonstrate to the 
satisfaction of the Bureau that each water user is in compliance with 
the criteria. With adequate documentation, the District may notify the 
Bureau of any changes in domestic water requirements at any time during 
the year.
    (b) Water duty. (1) Eligible land may receive no more than the 
amount of water in acre-feet per year established as maximum farm 
headgate delivery allowances by the Orr Ditch and Alphine decrees. All 
water use is limited to that amount reasonably necessary for economical 
and beneficial use pursuant to the Orr Ditch and Alpien decrees.
    (2) The annual water duty as assigned by the Orr Ditch and Alpine 
decrees is a maximum of 4.5 AF per acre for bench lands and a maximum 
of 3.5 AF per acre for bottom lands. The water duty for fields with a 
mixture of bench and bottom lands shall be the water duty of the 
majority acreage. Bench and bottom land designations as finally 
approved by the United States District Court for the District of Nevada 
will be used in determining the maximum water duty for any parcel of 
eligible land. The annual water duty for pasture land established by 
contract is 1.5 AF per acre.
    (c) Deliveries, efficiency, and maximum limits. The OCAP will 
constrain the operation of the Project on a long term average basis to 
achieve the full benefits for all the region's water users through 
three basis elements: valid headgate deliveries; Project efficiency 
with incentives and disincentives; and maximum operating limits or 
cushions.
    (1) Valid headgate deliveries. The valid water deliveries at the 
headgate are set by the product of eligible land actually irrigated 
multiplied by the appropriate water duty in accordance with 
Secs. 418.1(a) and 418.1(b). The District will regularly monitor all 
water deliveries and report in accordance with Sec. 418.1(a). No amount 
of water will be permitted to be delivered in excess of the individual 
water user's headgate entitlement. In the event it should occur, such 
amount will be automatically reflected in the efficiency deficit 
adjustment to the Lahontan storage. Water delivered in excess of 
entitlements shall not be considered valid for purposes of computing 
project efficiency.
    (2) Project efficiency. (i) The principal feature of the OCAP is to 
obtain a reasonable level of efficiency in supplying water to the 
headgate by the District. The efficiency targets established by these 
OCAP are the cornerstone of the enforcement and the incentive 
provisions and when implemented will aid other competing uses.
    (ii) The efficiency approach has the advantage of being readily 
calculable at the year's end, easily convertible to water appropriate 
to that year, able to be compared to other systems even though there 
may be many dissimilarities, appropriate for long term averaging, 
adjustable to any headgate delivery level including droughts or 
allocations, automatically adjusts to changes during the year, and it 
accurately accounts for misappropriated water. It also can be achieved 
through any number of measures from operations to changes in the 
facilities and can be measured as an end product without regard to the 
approach. Thus it is flexible to allow local decision making and yet is 
fact based to minimize disputes.
    (iii) Assuming that the headgate deliveries are valid and 
enforceable, the efficiency is the only remaining variable in 
determining the water needed to be supplied to the District. Efficiency 
is a measure of how much water is required for system losses relative 
to actual headgate deliveries. Differences in efficiency, therefore, 
are directly convertible to acre-feet. The differences in efficiency, 
expressed as a quantity in acre-feet, may be added to or subtracted 
from the actual Lahontan Reservoir storage level before it is compared 
to the monthly storage objective. Thus the diversions from the Truckee 
River, operation of other facilities (e.g., Stampede Reservoir) and 
decisions related to Lahontan Reservoir are made after the efficiency 
storage adjustments have been made. Operating decisions are made as if 
the adjusted storage reflected actual conditions.
    (A) Effiency incentive credits. In any year that the District's 
actual efficiency exceeds the target efficiency for the actual headgate 
delivery, two-thirds of the resultant savings, in water, will be 
credited to the District as storage in Lahontan. This storage amount 
will remain in Lahontan as water available to the District to use at 
its discretion consistent with Nevada and Federal law. Such uses may 
include wetlands (directly or incidentally), power production, 
recreation, a hedge against future shortages or whatever else the 
district determines. The storage is credited at the end of the 
irrigation season from which it was earned. This storage ``floats'' on 
top of the reservoir so that if it is unused it will be spilled first 
if the reservoir spills. The District may use all capacity of Lahontan 
Reservoir not needed for project purposes to store credits.
    (B) Efficiency disincentive debits. In any year that the District's 
actual efficiency falls short of the target appropriate to the actual 
headgate deliveries, then the resultant excess water that was used is 
considered borrowed from the future. Thus it becomes a storage debit 
adjustment to the actual Lahonthan Reservoir storage level for 
determining all operational decisions. The debit may accumulate but may 
not exceed a maximum as defined in Sec. 418.1(c)(3)(ii). The debit must 
be offset by an existing incentive credit or, if none is available, by 
a subsequent incentive at a full credit (not a 2/3 credit) or finally 
by an allocation by the District to restrict actual headgate 
deliveries. This would only be done prospectively (a subsequent year) 
so the District and the water users can prepare accordingly. Since the 
debit does not impact immediately on other competing uses or the 
District (except in a real drought), it allows for planning ahead and 
averaging over time.
    (C) Efficiency targets. The goal is to have the District operate at 
a reasonably efficient level. The OCAP establish reasonable efficiency 
targets. The key to the target efficiencies, therefore, is the 
application of ``reasonable''. To determine the efficiency target, the 
system delivery losses were divided into categories such as seepage, 
evaporation and operational losses. The ``reasonable'' level of savings 
for each category was then determined by

[[Page 64840]]

starting with current operating experience and applying the added 
knowledge from several possible measures researched, identified and 
subjected to public comment. Not all of these measures were then 
utilized nor was their full potential savings claimed. The derivation 
of the efficiency targets, including the specific measures and amounts, 
is identified in the following table.

                                          Newlands Project Water Budget                                         
----------------------------------------------------------------------------------------------------------------
                                                                                         1988 OCAP,             
                                                                  1988      1988 OCAP,    1992 w/o     Proposed 
 Line                                                           OCAP,\1\       1992      additional      1995   
                                                                  Base     assumptions     acres       example  
----------------------------------------------------------------------------------------------------------------
1....  Irrigated Acreage (acres)............................       60,900       64,850       61,630       59,023
2....  Maximum Headgate Entitlement \2\.....................      226,450      237,485      226,555      206,230
                     Distribution System Losses                                                                 
       Evaporation:                                                                                             
3....    Canals/Laterals....................................        6,000        6,200        6,000        5,838
4....    Regulatory Reservoirs..............................       15,000        7,500        7,500        7,500
       Seepage:                                                                                                 
5....    Canals/Laterals....................................       50,000       51,000       48,500       46,481
6....    Regulatory Reservoirs..............................        7,000        4,000        4,000        4,000
7....    Operational Losses.................................       87,980       40,800       39,400       38,270
                                                             ---------------------------------------------------
8....     Total Losses \3\..................................      165,980      109,500      105,400      102,089
9....  Max. Allowable Diversion \4\ (MAD)...................      392,430      346,985      331,955      308,319
10...  Projected Efficiency (%) \5\ Assuming 100% Water Use.         58.4         68.4         68.2         66.9
11...  Expected Headgate Entitlement Unused \6\.............       20,930       23,700       22,700       13,611
12...  Diversion Reduction for Unused Water \7\.............       25,430       26,500       25,400       15,279
13...  Expected Irrigation Diversions \8\...................      367,000      320,485      306,555      293,040
14...  Expected Efficiency (%)\9\...........................         56.0         66.7         66.5    \10\ 65.7
----------------------------------------------------------------------------------------------------------------
\1\ All values are in acre-feet except where noted. The first 3 columns of numbers come from the 1988 OCAP,     
  Table 1.                                                                                                      
\2\ Derived by multiplying the acreage by the appropriate water duty.                                           
\3\ In deriving the 1988 OCAP water budget, it was recognized that the District had reduced losses by 7,400 acre-
  feet prior to 1988.                                                                                           
\4\ Maximum Headgate Entitlement (line 2) plus Total Losses (line 8).                                           
\5\ Maximum Headgate Entitlement (line 2) divided by Maximum Allowable Diversion (line 9) multiplied by 100.    
\6\ Water delivery records show that, historically, lands have been irrigated with less than their full         
  entitlement. In the 1988 OCAP base the unused portion of the entitlement was assumed to be approximately 9%;  
  in the 1988 OCAP 10%; in the 1995 example 6.8%.                                                               
\7\ Unused Water (line 11) plus a proportional share of Operational Loss (line 7).                              
\8\ Maximum Allowable Diversion (line 9) minus Diversion Reduction (line 12).                                   
\9\ Maximum Headgate Entitlement (line 2) minus Unused Water (line 11) divided by Expected Irrigation Diversion 
  (line 13) multiplied by 100.                                                                                  
\10\ Expected efficiency at 93.4% use of headgate entitlement; other entries based on 90%.                      

    (1) These water conservation measures and others currently 
available to the District are listed in the following table. The table 
has been revised in this proposed OCAP based upon the Bureau of 
Reclamation's Final Report to Congress of the Newlands Project 
Efficiency Study, 1994.

      Possible Water Conservation Measures for the Newlands Project     
------------------------------------------------------------------------
                                     Expected                           
                                 savings in acre-                       
   Conservation measures \1\      feet (AF) per            Notes        
                                     year \2\                           
------------------------------------------------------------------------
1. Water ordering..............            1,000  Require 48-hour       
                                                   advance notice.      
2. Adjust Lahontan Dam                     \3\++  Match releases to     
 frequently.                                       demand with daily    
                                                   adjustments.         
3. Increase accuracy of                   16,630  Account for deliveries
 delivery records.                                 to nearest cfs and to
                                                   nearest minute.      
4. Change operation of                     \4\??  Eliminate use of all  
 regulating reservoirs.                            or parts of          
                                                   regulating           
                                                   reservoirs; drain at 
                                                   end of season.       
5. Shorten irrigation season...            4,000  Reduced by 2 weeks.   
6. Control delivery system.....               ++  Eliminate spills,     
                                                   better scheduling    
                                                   grouping deliveries. 
7. System improvements.........               ??  O&M activity: repair  
                                                   leaky gates, reshape 
                                                   canals, improve      
                                                   measuring devices.   
8. Dike off 2/3 S-Line                     2,720  500 ft. dike; (5'     
 Reservoir.                                        evaporation, 0.75'   
                                                   seepage).            
9. Dike off south half of                  2,130  5,000 ft. dike; large 
 Harmon Reservoir.                                 savings considering  
                                                   canal losses 95'     
                                                   evap., 1.8' seepage).
10. Dike off west half of                  2,400  6,000 ft. dike.       
 Sheckler Reservoir.                                                    
11. Eliminate use of Sheckler              4,000  Use for Lahontan spill
 Reservoir.                                        capture only; restore
                                                   200 ft. of E-Canal; A-
                                                   Canal is OK.         
12. Line 20 miles of Truckee              20,000  Reduces O&M.          
 Canal.                                                                 
13. Line large canals..........    26,100-31,000  Line large net losers 
                                                   first.               
14. Line regulatory reservoirs.              2.3  ......................
15. Reuse drain water for                  7,100  Blended irrigation    
 irrigation.                                       water quality would  
                                                   be adequate.         
16. Ditch rider training each                 ??  ......................
 year.                                                                  
17. Canal automation...........               ??  Reduced canal         
                                                   fluctuations.        
18. Community rotation system..               ??  Grouping deliveries by
                                                   area.                

[[Page 64841]]

                                                                        
19. Reclamation Reform Act                    ??  District              
 water conservation plan:                          implementation of    
                                                   water conservation   
                                                   plan.                
    a. Weed and phreatophyte                                            
     control.                                                           
    b. Fix gate leaks.                                                  
    c. Water measurement.                                               
    d. Automation.                                                      
    e. Communication.                                                   
20. Pumps and wells for small                400  ......................
 diverters.                                                             
21. Water pricing by amount                   ++  Incurs administrative 
 used.                                             costs to implement.  
22. Incentive programs.........               ??  For District personnel
                                                   and/or water users.  
23. Drain canals...............            1,065  ......................
------------------------------------------------------------------------
\1\ The first seven measures were considered in developing the water    
  budget in Table 1 for the 1988 OCAP. Additional measures could be     
  implemented by the District to help achieve efficiency requirements.  
\2\ Water savings have been updated in accordance with Bureau of        
  Reclamation's Report to Congress on Newlands Project Efficiency, April
  1994.                                                                 
\3\ ++ indicates a positive number for savings but not quantifiable at  
  this time.                                                            
\4\ ?? indicates uncertainty as to savings.                             

    (2) These measures are discretionary choices for the District. The 
range of measures available to the District provides a level of 
assurance that the target efficiency is reasonably achievable. The 
resultant efficiency targets were also compared to the range of 
efficiencies actually experienced by other irrigation systems that were 
considered comparable in order to provide a further check on 
``reasonable''. Most of the delivery losses are relatively constant 
regardless of the amount of deliveries. The efficiency will necessarily 
vary with the amount of headgate deliveries.
    (D) The target efficiency for any annual valid headgate delivery 
can be derived from the figure in Appendix A to this part.
    (3) Maximum allowable limits. (i) Maximum allowable diversions. (A) 
The water budget in the table Newlands Project Water Budget shall be 
recalculated for each irrigation season to reflect anticipated water-
righted acres to be irrigated. Based on the anticipated irrigation 
demand, the required target efficiency shall be recalculated each 
irrigation season. The maximum allowable diversion (MAD) for each year 
shall be determined based on: acres of eligible land anticipated to 
actually be irrigated in that year (Sec. 418.1(a)); the water duties 
for those lands (Sec. 418.1(b)); and the established efficiency of the 
project water distribution system (Appendix A). The MAD will be 
calculated annually to assure an adequate water supply for all water 
right holders whose water use complies with their decreed entitlement 
and these OCAP. The MAD is the maximum amount of water permitted to be 
diverted for irrigation use on the Project in that year. It is 
calculated to ensure full entitlements can be fulfilled, but is 
expected to be significantly in excess of Project requirements. The MAD 
will be established by the Bureau at least two weeks prior to the start 
of each irrigation season. All releases of water from Lahontan 
Reservoir and diversions from the Truckee Canal (including any 
diversions from the Truckee Canal to Rock Dam Ditch) shall be charged 
to the MAD except as provided in Secs. 418.3 and 418.9 of these OCAP
    (B) On the basis of the methodology adopted herein (i.e., actual 
irrigated acres multiplied by appropriate water duties divided by 
established project efficiency) an example of the MAD calculated for 
the projected irrigated acreage as shown in the table Newlands Project 
Water Budget would be 308,319 acre-feet for Proposed 1995 Example. The 
sample MAD corresponds to a system efficiency for full deliveries at 
66.9% for 1995 actual acres. Appendix A shows the sliding scale for 
target efficiencies which will be used over the range of water supply 
condition and headgate deliveries expected in the future. Target 
efficiencies shall be based on the percentage of maximum headgate 
entitlement delivered and not on the percent of water supply available. 
In Appendix A of this part, the sliding scale for 1995 Actual Acres 
shall be used to determine that target efficiencies for all irrigation 
years subsequent to 1995.
    (C) Adjustments in the MAD shall be made by the Bureau each year 
based on changes in irrigated eligible land from the prior year and 
subsequent decisions concerning transfers of Project water rights, 
using the methodology established herein.
    (D) In the event the District concludes the MAD for a given year 
will not meet the water delivery requirements for the eligible land to 
be irrigated in that year due to weather conditions, canal breaks, or 
some other unusual or unforeseen condition, the District shall submit a 
written request to the Bureau for such additional water considered 
necessary to make up for the specified loss and supply decreed 
entitlements. The District shall set forth a full detailed, factual 
statement of the reasons for the request. The Bureau shall promptly 
review the request and after consultation with the Federal Water Master 
and other interested parties, will determine if the request or any 
portion of it should be approved. The Bureau will make reasonable 
adjustments for unforeseen cause or events but will not make 
adjustments to accommodate waste or Project inefficiency. The Bureau 
will then notify the District of its determination. If the District 
does not agree with the Bureau's decision, it may seek judicial review. 
The Bureau and the District will seek to expedite the court proceeding 
in order to minimize any potential adverse impacts.
    (ii) Maximum Allowable Efficiency Debits (MED)--The debits in 
Lahontan Reservoir storage from the District's actual efficiency 
falling short of the target can accumulate over time. If these amounts 
of borrowed storage get too large they may not be offset later by 
increased efficiencies and may severely impact the District's water 
users by an added ``drought'' on top of a real one. Therefore, a limit 
was placed on how much could be borrowed or accumulated. The limit 
should also be large enough to allow reasonable opportunity to average 
out over time. This maximum efficiency debit cushion is 26,000 acre-
feet. However, unlike the MAD, it only applies to the subsequent year's 
operation. The MED is approximately 9% of the headgate entitlements.

[[Page 64842]]

Sec. 418.2  Monitoring diversions.

    (a) Operations. (1) By the end of each month, the District shall 
submit to the Bureau's Lahontan Basin Projects Office reports for the 
previous month which document monthly inflow and outflow in acre-feet 
from the Truckee and Carson divisions of the Project for that month. 
Reports shall include any data the Bureau may reasonably require to 
monitor compliance with these OCAP.
    (2) Accounting for farm headgate deliveries shall be based on the 
amount of water actually delivered to the water user. Project 
operations shall provide for the amount of water ordered and the 
distribution system losses.
    (3) The District shall keep records of all domestic and other uses 
showing the purpose and amount of water usage for each entity. The 
District shall make the records available for review by the Bureau upon 
request. The Bureau shall have the right to audit all records kept by 
the District.
    (b) Operations monitoring. (1) The Bureau will work in cooperation 
with the District to monitor the operation of the Project. The Bureau's 
personnel shall perform field inspections of water distribution during 
the irrigation season. Staff members of the Bureau's Lahontan Basin 
Projects Office and the District will meet as often as necessary during 
the irrigation season after each water distribution report has been 
prepared to examine the amounts of water used to that point in the 
season. On the basis of the information obtained from field 
observations, water use records, and consultations with District staff, 
the Bureau will determine at monthly intervals whether the rate of 
diversion is consistent with the OCAP for that year. The District will 
be informed in writing of suggested adjustments that may be made in 
management of diversions and releases as necessary to achieve target 
efficiencies and stay within the MAD.
    (2) Project operations will be monitored in part by measuring flows 
at key locations. Specifically, Project diversions (used in the 
calculations under Sec. 418.1(c) above) will be determined by adding 
flows measured at:
    (i) Truckee Canal near Wadsworth--U.S. Geological Survey (USGS) 
gauge number 10351300;
    (ii) Carson River below Lahontan Dam--USGS gauge number 10312150;
    (iii) Rock Dam Ditch near the end of the concrete lining; and 
subtracting:
    (iv) Flows measured at the Truckee Canal near Hazen--USGS gauge 
number 10351400;
    (v) The Carson River at Tarzyn Road near Fallon (below Sagouspe 
Dam) for satisfying water rights outside of the Project boundaries as 
described in Sec. 418.3(I), USGS gauge number 10312275;
    (vi) Estimated losses in the Truckee Canal; and
    (vii) Spills, precautionary drawdown, and incentive water released 
at Lahontan Dam pursuant to Secs. 418.3 and 418.9.


Sec. 418.3  Operations and management.

    (a) Power generation. All use of water for power generation using 
Project water shall be incidental to releases charged against Project 
diversions, precautionary drawdown, incentive water (Sec. 418.9(c)), or 
spills.
    (b) Truckee and Carson River water use. Project water shall be 
managed so that maximum use will be made of Carson River water and 
diversions of Truckee River water through the Truckee Canal will be 
minimized in order to make available as much Truckee River water as 
possible for use in the lower Truckee River and Pyramid Lake.
    (c) Diversions at Derby Dam. Diversions of Truckee River water at 
Derby Dam shall be managed to the maximum extent practical with the 
objective of maintaining minimum terminal flow to Lahontan Reservoir or 
the Carson River except where these criteria specifically permit such 
diversions. Diversions to the Truckee Canal shall be managed to achieve 
an average terminal flow of 20 cubic feet per second (cfs) or less 
during times when diversions to Lahontan Reservoir are not allowed (the 
flows shall be averaged over the total time diversions are not allowed 
in that calendar year; i.e., if flows are not allowed in July and 
August and then are allowed in September then not allowed in October 
and November, the average flow will be averaged over the four months of 
July, August, October, and November). The Bureau will work 
cooperatively with the District on monitoring the flows at the USGS 
gage on the USGS gage on the Truckee Canal near Hazen to determine if 
and when flows are excessive and bringing the flows back into 
compliance when excessive. Increases in canal diversions which would 
reduce river flows below Derby Dam, by more than 20% in a 24-hour 
period will not be allowed when Truckee River flow, as measured by the 
gauge below Derby Dam, is less than or equal to 100 cfs. Diversions to 
the Truckee Canal will be coordinated with releases from Stampede 
Reservoir, in cooperation with the Federal Water Master, to minimize 
fluctuations in the Truckee River below Derby Dam in order to meet 
annual flow regimes established by the United States Fish and Wildlife 
Service for listed species in the lower Truckee River.
    (d) Diversions from the Truckee River to the Truckee Division--
Sufficient water, if available, shall be diverted from the Truckee 
River through the Truckee Canal to meet the direct irrigation, domestic 
and other entitlements of the Truckee Division.
    (e) Criteria for Diversions from the Truckee River to Lahontan 
Reservoir, January through June.
    (1) Truckee River diversions through the Truckee Canal will be made 
to meet Lahontan Reservoir end-of-month storage objectives for the 
months of January through June. The current month storage objective 
will be based in part on the monthly United States April through July 
runoff forecast for the Carson River near Fort Churchill, to meet 
anticipated diversion requirements for the Carson Division, and target 
storage for Lahontan Reservoir. The Bureau in consultation with the 
District, Federal Water Master, Fish and Wildlife Service, the Pyramid 
Lake Paiute Tribe, and other affected parties will determine the 
exceedance levels and predicted Carson River inflows to use, based on 
the reliability of the forecast and other information such as river 
forecasts available from other sources. The end-of-month storage 
targets may be adjusted any time during the month as new forecasts or 
other information become available.
    (2) The January through June storage objective will be calculated 
using the following relationship:

LSOCM=TSM/J-(C1 x AJ)+L+(C2 x CDT)
where:
LSOCM=current end-of-month storage objectives for Lahontan Reservoir.
TSM/J=current end-of-month May/June Lahontan Reservoir target storage.
C1 x AJ=forecasted Carson River inflow for the period from the end of 
the current month through May or June, with AJ being the Bureau's April 
through July runoff forecast for the Carson River at Fort Churchill and 
C1 being an adjustment coefficient.
L=an average Lahontan Reservoir seepage and evaporation loss from the 
end of the current month through May or June.
C2 x CDT=projected Carson Division demand from the end of the current 
month through May or June, with CDT being the total Carson Division 
diversion requirement (based on eligible acres anticipated to be 
irrigated times the appropriate duty times a 95% usage rate), and C2 
being the estimate of the portion of the total diversion requirement to

[[Page 64843]]

be delivered during this period. Values for TSM/J, C1, L and C2 are 
defined in the following table.

                                Monthly Values for Lahontan Storage Computations                                
----------------------------------------------------------------------------------------------------------------
                                 January       February        March         April          May          June   
----------------------------------------------------------------------------------------------------------------
TSM/J.......................        174.0         174.0         174.0         174.0         174.0          174.0
C1/MAY......................          0.863         0.734         0.591         0.394  ............  ...........
C1/JUNE.....................          1.190         1.061         0.918         0.721         0.327  ...........
L/MAY.......................         13.9          12.5           9.9           7.1    ............  ...........
L/JUNE......................         18.2          16.8          14.2          11.4           4.3    ...........
C2/MAY......................          0.30          0.30          0.28          0.18   ............  ...........
C2/JUNE.....................          0.47          0.47          0.45          0.35          0.17   ...........
----------------------------------------------------------------------------------------------------------------

    (3) For January through April, the Lahontan Reservoir storage 
objective for each month will be the lowest of the May calculation, the 
June calculation, or full reservoir (defined as 295,000 acre-feet using 
Truckee River diversions, but can fill above 295,000 acre-feet to 
317,000 acre-feet with Carson River inflow and the use of flash 
boards).
    (4) For May, the Lahontan Reservoir storage objective will be the 
lower of the June calculation or full reservoir.
    (5) For June, the Lahontan Reservoir storage objective will be the 
June target storage.
    (6) Once the monthly Lahontan Reservoir storage objective has been 
determined, the monthly diversion to the Project from the Truckee River 
will be based upon water availability and Project demand as expressed 
in the following relationship:

TRD =TDD+TCL+CDD+LRL +LSOCM-ALRS-CRI
where:
TRD=current month Truckee River diversion acre-feet to the Project.
TDD=current month Truckee River Division demand.
TCL=current month Truckee Canal conveyance loss.
CDD=current month Carson Division demand.
LRL=current month Lahontan Reservoir seepage and evaporation losses.
LSOCM=current month end-of-month storage objective for Lahontan 
Reservoir.
ALRS=current month beginning-of-month storage in Lahontan Reservoir. 
(Includes accumulated Stampede credit described below and further 
adjusted for the net efficiency penalty or efficiency credit described 
in Secs. 418.1 and 418.9).
CRI=current month anticipated Carson River inflow to Lahontan Reservoir 
(as determined by Reclamation in consultation with other interested 
parties).
    (7) The following procedure is intended to ensure that monthly 
storage objectives are not exceeded. It may be implemented only if the 
following conditions are met:
    (i) Diversions from the Truckee River are required to achieve the 
current month Lahontan Reservoir storage objective (LSOCM);
    (ii) Truckee River runoff above Derby Dam is available for 
diversion to Lahontan Reservoir; and
    (iii) Sufficient Stampede Reservoir storage capacity is available.
    (8) The Bureau, in consultation with the Federal Water Master, the 
District, Fish and Wildlife Service, the Bureau of Indian Affairs, and 
the Pyramid Lake Paiute Tribe will determine whether the calculated 
current month Truckee River diversion to Lahontan Reservoir (TRD-TDD-
TCL) may be reduced during the month and the amount of reduction credit 
stored in Stampede Reservoir. Reductions in diversions to Lahontan 
Reservoir with credit storage in Stampede Reservoir may be implemented 
to the extent that: The reduction is in lieu of a scheduled release 
from Stampede Reservoir for the purpose of supplementing flows to 
Pyramid Lake; and/or water is captured in Stampede Reservoir that is 
scheduled to be passed through and diverted to the Truckee Canal. Any 
proposal to reduce diversions to Lahontan Reservoir for Newlands 
Project credit purposes without a comparable reduction in release from 
Stampede Reservoir (any conversion of Stampede Reservoir project water 
to Newlands Project credit water) would have to be approved by the Fish 
and Wildlife Service.
    (i) The diversion to Lahontan Reservoir may be adjusted any time 
during the month as revised runoff forecasts become available. The 
accumulated credit will be added to current Lahontan Reservoir storage 
(ALRS) in calculating TRD. If the sum of accumulated credit and 
Lahontan Reservoir storage exceeds 295,000 acre-feet, credit will be 
reduced by the amount in excess of 295,000 acre-feet. Credit will also 
be reduced by the amount of precautionary drawdown or spills in that 
month. If the end-of-month storage in Lahontan Reservoir plus the 
accumulated credit in Stampede Reservoir at the end of June exceeds the 
end-of-month storage objective for Lahontan, the credit will be reduced 
by the amount exceeding the end-of-month storage objective.
    (ii) Following consultation with the District, the Federal Water 
Master, and other interested parties as appropriate, the Bureau may 
release credit water for Project purposes from July 1 through the end 
of the irrigation season in which the credit accrues with timing 
priority given to meeting current year Project irrigation demands. 
Conveyance of credit water in the Truckee Canal shall be in addition to 
regularly scheduled diversions for the Project and will be measured at 
the USGS gauge number 10351300 near Wadsworth. Newlands credit water in 
Stampede Reservoir storage will be subject to spill and will not carry 
over to subsequent years. Newlands credit water in Stampede can be 
exchanged to other reservoirs and retain its priority.
    (iii) The Bureau, in consultation with the District, the Federal 
Water Master, and other interested parties, may release Newlands 
Project credit water before July 1. Prior to such release, the credit 
shall be reduced to the extent that Lahontan Reservoir storage plus 
accumulated credit at the end of the previous month exceeds the storage 
objectives for that month. If any Newlands credit water remains in 
Stampede Reservoir storage after the end of the current irrigation 
season in which it accumulated, it will convert to water for cui-ui 
recovery and will no longer be considered available for Newlands credit 
water. Newlands credit water stored in Stampede Reservoir shall be 
available for use only on the Carson Division of the Newlands Project.
    (9) Subject to the provisions of Sec. 418.3(c), LSOCM may be 
adjusted as frequently as necessary when new information indicates the 
need and

[[Page 64844]]

diversions from the Truckee River to the Truckee Canal shall be 
adjusted daily or otherwise as frequently as necessary to meet the 
monthly storage objective.
    (f) Criteria for Diversion of Truckee River Water to Lahontan 
Reservoir, July through December. Truckee River diversions through the 
Truckee Canal to Lahonton Reservoir from July through December shall be 
made only in accordance with the following table.

------------------------------------------------------------------------
                                                                 Storage
                        Operating month                          target 
                                                                  (AF)  
------------------------------------------------------------------------
July..........................................................   139,000
August........................................................    95,000
September.....................................................    64,000
October.......................................................    52,000
November......................................................    74,000
December......................................................  101,000 
------------------------------------------------------------------------
\1\ Diversions shall be started to achieve the end-of-month storage     
  targets listed in the table above and will be discontinued when       
  storage is forecast to meet or exceed the end-of-month storage targets
  at the end of the month. Diversions may be adjusted any time during   
  the month as conditions warrant (i.e., new forecasts, information from
  other forecasts becoming available, or any other new information that 
  may impact stream forecasts). The end-of-the-month storage targets may
  be adjusted by procedures provided in Sec.  418.9.                    

    (g) Rock Dam Ditch. Project water may be diverted directly to Rock 
Dam Ditch from the Truckee Canal only when diversions cannot be made 
from the outlet works of Lahontan Reservoir. Such diversions will 
require the prior written approval of the Bureau and be utilized in 
calculating Project diversions. During the period January through June 
of such operation, the projected total delivery to Rock Dam Ditch from 
the end of the current month through May or June will be subtracted 
from the projected Carson Division demand (C2* CDT) in calculating the 
current end-of-month storage objective for Lahontan Reservoir (LSOCM), 
and added to Truckee Division demand in calculating Truckee River 
diversion (TRD) in conformance with the procedures set forth in 
Sec. 418.3(e).
    (h) Precautionary drawdown and spills from Lahontan Reservoir. (1) 
Even though flood control is not a specifically authorized purpose of 
the Project, at the request of the District and in consultation with 
other interested parties and the approval of the Bureau, precautionary 
drawdown of Lahontan Reservoir may be made only for the purpose of 
limiting potential flood damage along the Carson River. Criteria for 
precautionary drawdown will be formulated by the Bureau in consultation 
with the District and other interested parties. The drawdown shall be 
scheduled sufficiently in advance and at such a rate of flow in order 
to divert as much water as possible into the Project irrigation system 
for delivery to eligible land or storage in reregulating reservoirs for 
later use on eligible land. During periods of precautionary drawdown, 
or when water is spilled from Lahontan Reservoir, Project diversions 
will be determined by comparison with other year's data and normalized 
by comparison of differences in climatological data. The Bureau will 
determine the normalization in consultation with the District and other 
interested parties. Spills from Lahontan Reservoir and precautionary 
drawdown of the reservoir to create space for storing flood waters from 
the Carson River Basin that are in excess of the normalized diversions 
will not be used in calculating Project diversions. Water captured in 
Project facilities as a result of a precautionary drawdown or spill 
will not be counted as diversions to the Project nor will they be 
counted as storage in Lahontan Reservoir for the purpose of calculating 
Truckee River Diversions. The precautionary drawdown or spills that are 
captured in Project facilities shall be measured, used to the maximum 
extent possible, and counted as deliveries to eligible lands in the 
year of the drawdown. If all the drawdown water captured in Project 
facilities cannot be used in the year of capture for delivery to 
eligible lands then that water shall be delivered to eligible lands in 
subsequent years to the maximum extent possible and counted on the 
water card of the water user.
    (2) If a precautionary drawdown in one month results in a failure 
to meet the Lahontan Reservoir storage objective for that month, the 
storage objective in subsequent months will be reduced by one-half of 
the difference between that month's storage objective and actual end-
of-month storage. The Bureau shall not be liable for any damage or 
water shortage resulting from a precautionary drawdown.
    (i) Water use for other than Newlands Project purposes. The 
District will release sufficient water to meet the vested rights below 
Sagouspe Dam as specified in the Alpine decree. These water rights are 
usually met by return flows. Releases for these water rights will in no 
case exceed the portion of 1,300 acre-feet per year not supplied by 
return flows. This water shall be accounted for at the USGS gage number 
10312275 (the Carson River at Tarzyn Road near Fallon). Releases for 
this purpose will not be considered in determining Project diversions 
since the lands to which the water is being delivered are not part of 
the Project (See Sec. 418.2(b)). Any flow past this gage in excess of 
the amount specified herein will be absorbed by the District as an 
efficiency loss.
    (j) Charges for water use. The District shall maintain a financing 
and accounting system which produces revenue sufficient to repay its 
operation and maintenance costs and to discharge its debt to the United 
States. The District should give consideration to adopting a system 
which provides reasonable financial incentives for the economical and 
efficient use of water.
    (k) Distribution system operation. The District shall permit only 
its authorized employees or agents to open and close individual 
turnouts and operate the distribution system facilities. After 
obtaining Bureau approval, the District may appoint agents to operate 
individual headgates on a specific lateral if it can be shown that the 
water introduced to the lateral by a District employee is completely 
scheduled and can be fully accounted for with a reasonable allowance 
for seepage and evaporation losses. If agents need to adjust the 
scheduled delivery of water to the lateral to accommodate variable 
field conditions, weather, etc., they must immediately notify the 
District so proper adjustments can be made in the distribution system. 
Each agent shall keep an accurate record of start and stop times for 
each delivery and the flow during delivery. This record will be given 
to the District for proper accounting for water delivered. The program 
of using agents to operate individual headgates will be reviewed on a 
regular basis by the District and the Bureau. If it is found that 
problems such as higher than normal losses, water not accounted for, 
etc., have developed on an individual lateral, the program will be 
suspended and the system operated by District employees until the 
problems are resolved.


Sec. 418.4  Water rights

    These OCAP govern water uses within existing rights. These OCAP do 
not in any way change, amend, modify, abandon, diminish, or extend 
existing rights. Water rights transfers will be determined by the 
Nevada State Engineer pursuant to the provisions of the Alpine decree.


Sec. 418.5  Prohibited deliveries.

    The District shall not deliver Project water or permit its use 
except as provided in these OCAP. No Project water will be permitted to 
be released in excess of the MAD or delivered to ineligible lands. 
Delivery of water to land in excess of established water duties is 
prohibited.

[[Page 64845]]

Sec. 418.6  Violations.

    Violations of the terms and provisions of these OCAP shall be 
reported immediately to the Bureau. The District or individual water 
users will be responsible for any shortages to water users occasioned 
by waste or excess delivery or delivery of water to ineligible land as 
provided in the OCAP.


Sec. 418.7  Enforcement.

    (a) Conditions of delivery. There are four basic elements for 
enforcement with all necessary quantities and review determined in 
accordance with the relevant sections of this OCAP
    (1) Valid headgate deliveries. In the event it is determined that 
water was delivered in ineligible land or in excess of the appropriate 
water duty then:
    (i) The District will stop such illegal delivery immediately;
    (ii) The District will notify the Bureau of the particulars 
including location and amounts--known or estimated;
    (iii) The amount will not be included as a valid headgate for 
purposes of computing the Project efficiency and resultant incentive 
credit or debit to Lanhontan storage; and
    (iv) If the amount applies to a prior year, then the amount will be 
treated directly as a debit to Lahontan storage in the same manner as 
an efficiency debit.
    (2) District efficiency. To the extent that the actual District 
efficiency determined for an irrigation season is greater or less than 
the OCAP established target efficiency as determined for the 
corresponding actual valid headgate deliveries, then the difference in 
efficiency, expressed as a quantity in acre-feet, may be added to or 
subtracted from the actual Lahontan Reservoir storage level before it 
is compared to the monthly storage objective as follows:
    (i) Greater efficiency. Credited to the District as storage in 
Lahontan (subtracted) from any accumulated debit, or two-thirds as 
storage in Lahontan for their discretionary use in accordance with 
state law.
    (ii) Less efficient. Debited (added) to Lahontan storage as an 
adjustment to the actual storage level.
    (3)  Maximum Allowable Diversion (MAD). The MAD shall be computed 
each year to deliver full entitlements at established Project 
efficiencies. Project diversions shall not exceed the MAD. Within the 
operating year, the Bureau will notify the District in writing of any 
expected imminent violations of the MAD. The District will take prompt 
action to avoid such violations. The Bureau will exercise reasonable 
latitude month-to-month to accommodate the District's efforts to avoid 
exceeding the MAD.
    (4) Maximum Efficiency Debit (MED). If the MED exceeds 26,000 AF at 
the end of any given year, the District shall prepare and submit to the 
Bureau for review and approval, a plan detailing the actions the 
District will take to either earn adequate incentive credits or to 
restrict deliveries to reduce the MED to less than 26,000 AF by the end 
of the next year. The plan shall be submitted to the Bureau in writing 
prior to the date of March 1 immediately subsequent to the exceeding of 
the MED. If the District fails to submit an approvable plan, Project 
allocations will be reduced by an amount equal to the MED in excess of 
26,000 plus 13,000 (one-half the allowable MED). Nominally this will 
mean a forced reduction of approximately five percent of entitlements. 
The Bureau will notify the District in writing of the specific 
allocation and method of derivation in sufficient time for the District 
to implement the allocation. Liabilities arising from shortages 
occasioned by operation of this provision shall be the responsibility 
of the District or individual water users.
    (b) Project management. In addition to the provisions of 
Sec. 418.7(a), in the event the District is found to be operating 
Project facilities or any part thereof in substantial violation of 
these OCAP, then, upon the determination by the Bureau, the Bureau may 
take over from the District the care, operation, maintenance, and 
management of the diversion and outlet works (Derby Dam and Lahontan 
Dam/Reservoir) or any or all of the transferred works by giving written 
notice to the District of such determination and the effective date 
thereof. Following written notification from the Bureau, the care, 
operation, and maintenance of the works may be retransferred to the 
District.
    (c) Future contracts. The Bureau shall provide in new, amended, or 
replacement contracts for the operation and maintenance of Project 
works, for the reservation by the Secretary of rights and options to 
enforce these OCAP.


Sec. 418.8  Water management and conservation.

    (a) Conservation measures. (1) Specific conservation actions will 
be needed for the District and its members to achieve a reasonable 
efficiency of operation as required by the OCAP. The District is best 
able to determine the particular conservation measures that meet the 
needs of its water users. This assures that the measures reflect the 
priorities and collective judgment of the water users; and will be 
practical, understandable and supported. The District also has the 
discretion to make changes in the measures they adopt as conditions or 
results dictate
    (2) The District will keep the Bureau informed of the measures they 
expect to utilize during each year. This will allow appropriate 
monitoring for information helpful to evolving other suggestions and 
for use by other Districts. The Bureau will work cooperatively in 
support of the District's selection of measures and methods of 
implementation.
    (b) Cooperative programs. The Bureau and the District will work 
cooperatively to develop a water management and conservation program to 
promote efficient management of water in the Project.
    (1) The Bureau will provide technical assistance to the District 
and cooperatively assist the District in their obligations and efforts 
to:
    (i) Document and evaluate existing water delivery and measurement 
practices;
    (ii) Implement improvements to these practices; and
    (iii) Evaluate and, where practical, implement physical changes to 
Project facilities.
    (2) The program will emphasize developing methods, including 
computerization and automation, to improve the District's operations 
and procedures for greater water delivery conservation.


Sec. 418.9  Implementation.

    The intent of the implementation strategy for these OCAP is to 
ensure that the Project delivers water within entitlements at a 
reasonable level of efficiency as a long term average. The incentives 
and disincentives provided herein are designed to encourage local 
officials with responsibilities for Project operations to select and 
implement through their discretionary actions, operating strategies 
which achieve the principles of the OCAP. The specified efficiencies 
(Appendix A of this part) were developed considering implementation of 
reasonable conservation measures, historic project operations, 
economics, and environmental effects. The efficiency target will be 
used as a performance standard to establish at the end of each year on 
the basis of actual operations, whether the District is entitled to a 
performance bonus in the form of incentive water or a reduction in 
storage for the amount borrowed ahead. The components of the 
implementation strategy are outlined below.
    (a) Valid headgate deliveries. Project water may be delivered to 
headgates

[[Page 64846]]

only as provided in Sec. 418.1(a). Water delivered outside the entitled 
irrigable land and/or outside the court set water duty is difficult to 
quantify at best because it is not typically measured. Since it is not 
likely to be a part of the total actual headgate deliveries, yet is a 
part of the total deliveries to the Project it will manifest itself 
directly as a lower efficiency. Thus, it will either reduce the 
District's incentive credit or increase the storage debit by the amount 
improperly diverted. All other users outside the Project are thereby 
held harmless but the District incurs the consequence. This approach 
should eliminate any potential disputes between the District and the 
Bureau over quantifying the amount of water misappropriated.
    (b) Efficiencies. The established target efficiencies pursuant to 
these OCAP are shown in Appendix A of this part. The efficiency of the 
Project will vary with the amount of entitlement water actually 
delivered at the headgates. Since most of the distribution system 
losses such as evaporation and seepage do not change significantly with 
the amount of water delivered (i.e., these losses are principally a 
function of water surface area and the wetted perimeter of the canals), 
the Project efficiency requirement is higher as the percent of 
entitlement water actually delivered at the headgates increases. The 
actual efficiency is calculated each year after the close of the 
irrigation season based on actual measured amounts. The application of 
any adjustments to Lahontan Reservoir storage or Truckee River 
diversions resulting from the efficiency is always prospective.
    (c) Incentives for additional long term conservation. As an 
incentive for the District to increase the efficiency of the delivery 
system beyond the expected efficiency of 65.7% (66.9% with full 
delivery) as shown in the table Newlands Project Water Budget, Proposed 
1995 Example, the District will be allowed to store and use the Carson 
River portion of the saved water at their discretion, in accordance 
with Nevada State Law. Thus, if the District is able to operate the 
Project in such a manner that the expected efficiency is exceeded, the 
District may store in Lahontan Reservoir two-thirds (\2/3\) of the 
additional water saved. (The remaining one-third (\1/3\) of the water 
saved will remain in the Truckee River or through reduced diversions to 
Lahontan Reservoir). This water will be considered incentive water 
saved from the Carson River and will not be counted as storage in 
determining diversions from the Truckee River on computing the target 
storage levels for Lahontan Reservoir under these OCAP. For purposes of 
these OCAP, incentive water is no longer considered Project water. The 
District may use the water for any purpose (e.g., wetlands, storage for 
recreation, power generation, shortage reduction) that is consistent 
with Nevada State Law and Federal Law. The water will be managed under 
the District's discretion and may be stored in Lahontan Reservoir until 
needed subject to the limitations in Sec. 418.9(d).
    (d) The amount of incentive water stored in Lahontan Reservoir will 
be reduced under the following conditions:
    (1) There is a deficit created and remaining in Lahontan Reservoir 
from operations penalties in a prior year;
    (2) The District releases the water from the reservoir for its 
designated use;
    (3) During a spill of the reservoir, the amount of incentive water 
shall be reduced by the amount of spill; and
    (4) At the discretion of the District, incentive water may be used 
to offset the precautionary drawdown adjustment to the Lahontan storage 
objective.
    (5) At the end of each year, the amount of incentive water will be 
reduced by the incremental amount of evaporation which occurs as a 
result of the increased surface area of the reservoir due to the 
additional storage. The evaporation rate used will be either the net 
evaporation measured or the net historical average after precipitation 
is taken into account. The method of calculation will be agreed to by 
the District and the Bureau in advance of any storage credit.
    (e) An example of this concept is:

    Example: Incentive Operation--At the end of the 1996 irrigation 
season, the Bureau and the District audit the District's water 
records for 1996. The District's water delivery records show that 
194,703 acre-feet of water were delivered to farm headgates. On the 
basis of their irrigated acreage that year (59,075) the farm 
headgate entitlement would have been 216,337 acre-feet. On the basis 
of 90% deliveries for 59,075 acres (194,203 divided by 216,337 = 
0.90) the established Project efficiency requirements was 65.1%. On 
the basis of the established Project efficiency (66.1%), the Project 
diversion required to make the headgate deliveries would be expected 
to be 291,909 acre-feet (194,703 divided by 0.651 = 291,909). An 
examination of Project records reveals that the District only 
diverted 286,328 acre-feet which demonstrated actual Project 
efficiency was 68% and exceeded requirements of these OCAP. The 
5,581 acre-feet of savings (291,909 - 286,328 = 5,581) constitutes 
the savings achieved through efficiency improvements and the 
District would then be credited two-thirds (3,721 acre-feet = 5,581 
x  \2/3\) of this water (deemed to be Carson River water savings) as 
incentive water. This incentive water may be stored in Lahontan 
Reservoir or otherwise used by the District in its discretion 
consistent with State and Federal Law (e.g., power generation, 
recreation storage, wildlife, drought projection, etc.).

    (f) Disincentives for lower efficiency. (1) If the District failed 
to meet the efficiencies established by these OCAP, then, in effect, 
the District has borrowed from a subsequent year. The amount borrowed 
will be accounted for in the form of a deficit in Lahontan Reservoir 
storage. This deficit amount will be added to the actual Lahontan 
Reservoir storage quantity for the purpose of determining the Truckee 
River diversions to meet storage objectives as well as all other 
operating decisions.
    (2) The amount of the deficit will be cumulative from year to year 
but will not be allowed to exceed 26,000 acre-feet (the expected 
variance between the MAD and actual water use). This limit is expected 
to avoid increasing the severity of drought and yet still allow for 
variations in efficiency over time due to weather and other factors. 
This approach should allow the District to plan its operation to 
correct for any deficiencies.
    (3) The deficit can be reduced by crediting incentive water earned 
by the District or reducing the percentage of headgate entitlement 
delivered either through a natural drought or by the District and its 
water users administratively limiting deliveries while maintaining an 
efficiency greater than or equal to the target efficiency.
    (4) In the event of a natural drought if the shortage to the 
headgates is equal to or greater than the deficit then the deficit is 
reduced to zero. If the shortage to headgates is less than the deficit 
then the deficit is reduced by an amount to the headgate shortage. 
During a natural drought, if the percentage of maximum headgate 
entitlement delivered is 75% or more than the District will be subject 
to the target efficiencies and resultant deficits or credits.
    (5) If the District has a deficit in Lahontan Reservoir and earns 
incentive water, the incentive water must be used to eliminate the 
deficit before it can be used for any other purpose. The deficit shall 
be credited on a 1 to 1 basis (i.e., actual efficiency savings rather 
than \1/3\-\2/3\ for incentive water).
    (g) An example of the penalty concept is:

    Example: Penalty--In 1996 the District delivers 90% of the 
maximum headgate entitlement or 194,703 acre-feet 216,337  x  .90) 
but they actually divert 308,000 acre-feet. The efficiency of the 
Project is 63.2% (194,703 divided by 308,000). Since the

[[Page 64847]]

established efficiency of 65.1% would have required a diversion of 
only 299,083 acre-feet (194,703 divided by .651) the District has 
operated the system with 8,917 acre-feet of excess losses. 
Therefore, 8,917 acre-feet was borrowed and must be added to the 
actual storage quantities of Lahontan Reservoir for calculating 
target levels and Truckee River diversions.

    (h) Maximum Allowable Diversion (MAD). (1) The MAD established in 
these OCAP is based on the premise that the Project should be operated 
to ensure that it is capable of delivering to the headgate of each 
water right holder the full water entitlement for irrigable eligible 
acres and includes distribution system losses. The MAD will be 
established (and is likely to vary) each year. The annual MAD will be 
calculated each year based on the actual acreage to be irrigated that 
year.
    (2) Historically, Project water users have not ordered or used 
their full entitlement. Actual deliveries at farm headgates have been 
approximately 90 percent of entitlements and this practice is expected 
to continue but the percentage is expected to change. This variance 
between headgate deliveries and headgate entitlement will be calculated 
annually under these OCAP and is allowed to be diverted if needed and 
thereby provides an assurance that full headgate deliveries can be 
made. The expected diversion and associated efficiency target for the 
examples shown in the Newlands Project Water Budget table would be: 
285,243 AF and 65.1% in 1996 and beyond. These are well below the MAD 
limits; however, the District may divert up to the MAD if it is needed 
to meet valid headgate entitlements.


Sec. 418.10  Fallon Paiute-Shoshone Indian Reservation.

    Nothing in these OCAP shall affect the authority of the Fallon 
Paiute-Shoshone Tribes to use water on Tribes' reservation which was 
delivered to the Reservation in accordance with these OCAP, nor shall 
these OCAP operate to restrict the Secretary's trust responsibility 
with respect to the Fallon Paiute-Shoshone Tribes.

Appendix A to Part 418--Expected Project Distribution System Efficiency

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[FR Doc. 96-30769 Filed 12-6-96; 8:45 am]
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