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(g) The term "domestic use" shall include the use of water for household, stock, municipal, milling, industrial, railroad, and other like purposes.

(h) The term "Carlsbad project" means certain tracts of land in townships 20, 21, 22, 23, 24, 25, and 26 south, ranges 26, 27, 28, and 29 east of the New Mexico principal meridian, and all reservoirs, dams, canals, drains, and other works, constructed or that may hereafter be constructed, by the United States for the reclamation, use and benefit thereof.

ARTICLE III

The right to appropriate and use for irrigation and domestic purposes the natural flow of the Pecos River system in the upper basin shall not be limited or abridged by this compact, but no permit or permits for the construction of any additional storage reservoir or reservoirs or for the enlargement of any existing reservoir within the upper basin, having an aggregate capacity or capacities of more than 10,000 acre feet, shall be granted by the State of New Mexico prior to the 1st day of January, 1940. *

ARTICLE IV

Within the middle basin New Mexico shall have in perpetuity indefeasible rights in the waters of the Pecos River system to divert and use from either or both natural flow or storage reservoirs, constructed or to be constructed, sufficient water, whenever available, for all domestic purposes and the irrigation of 76,000 acres of land.

ARTICLE V

Texas shall at all times, subject to the provisions of Articles III, IV, and IX of this compact, have the right:

(1) To divert all the natural flow of the Pecos River system in the lower basin for domestic and agricultural purposes.

(2) To build, maintain, and operate a storage reservoir or reservoirs at or below what is commonly known as the Red Bluff Reservoir site, in Eddy County, N. Mex., for the use and benefit of 40,000 acres of land in Loving, Reeves, Ward, Crane, and Pecos Counties, Tex., and to store any surplus waters to which Texas may be entitled, and to acquire by purchase, prescription or the exercise of eminent domain, such rights of way, easement, or lands as may be necessary for the construction, maintenance and operation of said reservoir; Provided, That said reservoir shall be constructed and in operation on or before the 1st day of January, 1940: And provided further, That the construction, maintenance and operation of said reservoir shall not vest in Texas any prior, preferred, or superior servitude upon or claim or right to the waters of the Pecos River in New Mexico.

ARTICLE VI

All surplus water flowing in the Pecos River within the middle and lower basins, over and above that required for domestic use, and the adequate and proper irrigation of 76,000 acres of land in the middle basin and 40,000 acres of basins, over and above that required for domestic use, and the adequate and land in the lower basin, shall be divided equally between the signatory States. All permits issued by either New Mexico or Texas, prior to January 1, 1940, for the use of the surplus waters shall specifically state that the rights granted by said permits are and shall be subservient to prior rights for 76,000 acres of land in the middle basin and 40,000 acres of land in the lower basin.

ARTICLE VII

1. Texas and New Mexico, at their joint expense, shall maintain a stream gauging station upon the Pecos River at or near Malaga, Eddy County, N. Mex., for the purpose of ascertaining the amount of surplus water flowing in said river. The location of said gauging station may, by mutual consent, be changed from year to year as conditions of the river may require.

2. The State engineer of New Mexico and the board of water engineers for Texas shall make provisions for the cooperative gauging of and the details of operating said station and for the exchange and publication of records and data relative to the discharge of the river at said station.

ARTICLE VIII

The use of any impounded water of the Pecos River system for the generation of electrical power shall be subservient to the use and consumption of such water for agricultural and domestic purposes and shall not interfere with or prevent the use for such dominant purposes.

ARTICLE IX

Notwithstanding any limitations or restrictions, either expressed or implied, in this compact upon the area to be irrigated in the middle basin, New Mexico shall have the right on and after January 1, 1940, to extend and increase the irrigated area within the middle basin, over and above 76,000 acres, one-fifth of an

acre:

(1) For each and every acre-foot that the aggregate effective storage capacity of all reservoirs, now or hereafter constructed for the use of the lower basin shall be less than 250,000 acre-feet.

(2) For each and every acre-foot of the original capacity or capacities, of any and all reservoirs, constructed for the use and benefit of the lower basin that have been or may be abandoned or unused for a period of five years or longer.

ARTICLE X

Nothing in this compact shall be construed as affecting the rights of the United States of America in the waters of the Pecos River system or in the Carlsbad project.

ARTICLE XI

It shall be the duty of the State engineer of New Mexico and the board of water engineers for Texas to supervise the carrying out of the provisions of this compact within their respective States, and they may from time to time formulate rules and regulations for that purpose, which, when promulgated by them, shall be binding until amended or terminated.

ARTICLE XII

Whenever any official of either State is designated to perform any duty under this compact, such designation shall include the State official or officials upon whom the duties now performed by such designated official or officials may hereafter devolve.

ARTICLE XIII

Should any claim or controversy arise between the signatory States (a) with respect to the waters of the Pecos River system not covered by the terms of this compact; (b) over the meaning or performance of any of the terms of this compact; (c) as to the allocation of the burdens incident to the performance of any article of this compact; or (d) as to the construction, maintenance, or operation of storage works within New Mexico for the use and benefit of Texas, the governors of the signatory States, upon the request of either one of them, shall forthwith appoint commissioners with power to consider and adjust such claim or controversy, subject to ratification by the Legislatures of New Mexico and Texas.

ARTICLE XIV

Nothing in this compact shall be construed to limit or prevent either State or the United States from instituting or maintaining any action or proceeding, legal or equitable, for the protection of any right under this compact or the enforcement of any of its provisions.

ARTICLE XV

Nothing in this compact shall be construed to affect the right to appropriate, under the laws and regulations of New Mexico and Texas, any waters that if unappropriated and unused would not contribute to the flow of the Pecos River.

ARTICLE XVI

This compact may be modified or terminated at any time by mutual consent of the signatory States. In the event of such termination all rights established under it shall continue unimpaired.

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ARTICLE XVI

This compact shall become binding and operative when approved by the legislatures of each of the signatory States and consented to by the Congress of the United States. Notice of approval by the legislatures shall be given by the governor of each State to the governor of the other State and to the President of the United States, and the President of the United States is requested to give notice to the signatory States of consent by the Congress of the United States.

In witness whereof the commissioners have signed this compact in triplicate originals, one of which shall be deposited with the Department of the Interior of the United States and one with the governor of each of the signatory States. Done at El Paso, Tex., this 10th day of February, A. D. 1925.

Approved.

RICHARD H. HANNA, Commissioner for New Mexico. R. E. THOMASON, Commissioner for Teras:

C. T. PEASE.

Mr. HUDSPETH. If you will pardon me, I will also read the veto of the governor.

Mr. HILL. The action of the New Mexico Legislature was on the original compact without the amendment?

Mr. HUDSPETH. With the amendment affecting the upper basin, but not affecting our State at all.

The Governor of New Mexico, transmitting his message to the legislature, after it had passed the house by a unanimous vote and passed the senate with six dissenting votes, as I recall now-I have the entire record here the governor on March 14, 1925, submitted. this veto message:

Senate bill No. 106, an act ratifying and approving the Pecos compact with certain reservations is hereby disapproved and vetoed.

I am exercising the veto power concerning this enactment in response to practically a unanimous protest against it becoming a law from the Pecos Valley Water Users' Association, the New Mexico people most vitally concerned in the matter.

These were not our people. These were the people from New
Mexico. That was upon the amendment placed upon this bill by
Mr. Renehan when it came before the senate.

Mr. Renehan offered the following floor amendments:
Add another section, as follows, to wit:

"SEC. 4. The ratification, approval, and adoption expressed in section 1 are subject to and limited by the following reservation and condition: That the State of New Mexico rejects and refuses to concur in any provision of said compact which in any manner limits or restricts the storage, appropriation, or use by the people and property owners in the upper basin of either the natural or flood waters of the Pecos River system, nor shall said compact be binding or obligatory until the Legislature of the State of Texas and the Congress of the United States accept and concur in the said compact and reservation and condition."

On that amendment that was placed by Mr. Renehan, the Governor based his veto, as I understand it, but that had nothing whatever to do with the distribution of the waters in Texas.

Mr. LEATHERWOOD. Without the veto of the governor, what effect would it have had with that amendment on it?

Mr. HUDSPETH. It would not have had any effect on our proposition at all.

Mr. LEATHERWOOD. But what effect would it have had upon the ultimate ratification of the compact?

Mr. HUDSPETH. Do you mean ratification by the State of Texas? Mr. LEATHERWOOD. Yes. As I understand it, you had agreed upon a compact?

Mr. HUDSPETH. Yes, sir.

Mr. LEATHERWOOD. Your State passed the resolution, and the lower branch of the State Legislature of New Mexico passed a similar resolution and then in the senate they added to it?

Mr. HUDSPETH. Yes, sir.

Mr. LEATHERWOOD. They added the amendment which has just been read.

Mr. HUDSPETH. Yes, sir.

Mr. LEATHERWOOD. What do you say would have been the effect, even if the Governor of New Mexico had not vetoed it, and had signed it?

Mr. HUDSPETH. The effect would have been, as far as Texas is concerned, she would have ratified the compact just the same.

Mr. LANKFORD. It would have had to go back to Texas for further ratification, however?

Mr. HUDSPETH. Well, they would probably have had to consent to the amendment but there would not have been any question about them consenting.

Mr. LANKFORD. They would have consented?

Mr. HUDSPETH. Oh, yes. It did not affect us in any way. Our legislature was simply following a request and agreement of the people down in the lower part of the Pecos, known as the Pecos, Tex. portion of this project.

Mr. LEATHERWOOD. If I understand your position it is this, that you gentlemen here representing both States, are willing to rely upon your mutual understanding now?

Mr. HUDSPETH. We are; yes, sir.

Mr. LEATHERWOOD. Without any reservation in the proposed legislation authorizing the construction of the project in Texas? Mr. HUDSPETH. Yes, sir.

Major BURGES. Except I see the bill now does carry into it the limitation of the 40,000 acres in Texas at this time. We do not interpret that there might be some danger that we will cut ourselves off from something in the future, but I think not, after giving it considerable thought. We do not conceive that to be a final relinquishment of any right we might have in the surplus waters under the terms of the compact if that finally goes through.

Mr. HUDSPETH. But we are willing to take our chances. I do not think there are any chances to take.

Major BURGES. We are willing to take whatever chance there is. I don't think there is any.

Mr. LEATHERWOOD. May I ask if the limitation as to the storage, in the bill now under consideration, is less than the storage provided in the proposed compact?

Major BURGES. One hundred and ten thousand acre-feet less.

Mr. MORROW. What is the storage now as provided in your bill? Major BURGES. The bill does not limit it. We are predicating that on Doctor Mead's statement that the reservoir would only impound 140,000 acre-feet.

Mr. MORROW. I notice you are putting a little stress on the question of the flood waters that you might be entitled to. As I understand your statement here at the last meeting at which I was present, you were relying almost entirely on the waters of the Black and Delaware Rivers, together with what drainage would come from below the Avalon Dam.

Major BURGES. Well, not altogether. If you will recall the statement, what was said was that it comes preponderately from that source but because the river is subject, in varying years to very different results in this way-in some years a heavier flood supply will come from the upper waters of the river and in other years from these rivers that drain the Sacramento, particularly the Black and the Delaware, there are some years in which we get quite an increment of water that comes down from above the Avalon Dam. There are other years in which it would be wholly unnecessary to have that supply, but we do not limit ourselves to the Delaware and the Black Rivers.

I may say this-it may be pertinent-in a meeting at Carlsbad, after I left here the last time, there was some discussion as to how it would be best to safeguard the New Mexico interest in the matter, and Mr. Yates, who is the Government representative on the Carlsbad project, offered the suggestion that the 40,000 acre irrigation limit was better than a storage reservoir limitation and at the same time it agreed with the terms and spirit of the compact.

That suggestion of his seemed to me to be sound, and I still think, on thinking it over deliberately, that it is sound. I believe that Mr. Tracy can confirm me or correct me if I am not right as to what happened there at that discussion.

Mr. MORROW. To lay a little stress upon the amendment that was made there; that amendment was to protect the rights of the people residing in and about Santa Rosa in New Mexico, which would be about 400 miles above the Carlsbad property.

Major BURGES. Well, I never knew exactly who it was intended to protect, but the effect of Senator Renehan's amendment would have been to permit people in the upper basin to have initiated new rights as to storage without any regard to the use or appropriation of the waters in the middle basin or lower basin, for that matter, the lower basin being the Texas part, the middle basin being the New Mexico part, where the greatest development on the Pecos now is.

Mr. MORROW. As I understand, they are adjudicating the rights in that upper basin.

Major BURGES. Well, if you can say they are adjudicating them--it has been dragging along slowly a long time, over a great many years. I don't know whether they are getting anywhere. It is quite an intricate and difficult proposition.

Mr. MORROW. It is in judication, is it not, at the present time?
Mr. TRACY. Yes. A suit has been pending.

Major BURGES. How many years?

Mr. MORROW. They are taking testimony now.

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