Nebraska is in violation of the Republican River Compact Settlement for 2006 by an estimated 41,430 acre-feet (AF) of water. Kansas has claimed damages of $72 million for Nebraska’s settlement violations, has demanded irrigation cutbacks of nearly 50 percent, and has initiated formal arbitration proceedings under the settlement for resolving compliance disagreements. If Nebraska and Kansas are unable to negotiate a compromise on the water overuse, it is possible that a Federal Water Master would be appointed to ensure that future Nebraska water use stayed within settlement limits