- 12 - At the time of the 1992 Master Agreement, the local water distribution system that was connected to CAP and that was maintained by HID was complete. HID agreed to continue to maintain and operate this water distribution system in subsequent years, by purchasing water on the open market and distributing and selling water to the Harquahala Valley landowners and to others as the landowners and others decided to purchase water from HID at market rates. The CAP Water District was one of the sources from which HID might purchase water in subsequent years, depending on the price of water available through CAP in comparison to the price of water available from other sources. After relinquishment to the Interior Department of the water rights by the Harquahala Valley landowners, the water rights were reallocated to other users of Colorado River water. On March 21, 1994, the Inspector General of the Interior Department issued an audit report regarding the Master Agreement and relinquishment by HID of its Colorado River water rights. This report faulted the Interior Department in the negotiations relating to relinquishment of HID’s water rights and for discounting the value of HID's debt obligation to the Federal Government to a present value (as of the end of 1992) of $5.8 million, which was factored into the computation of the payment to HID of $28.7 million. This report also stated that the Harquahala Valley landowners “unduly benefited” by receipt of $24.6 million in connection with relinquishment of the water rights.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011