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The Delta area is particularly concerned if it is intended to use such works as a peripheral canal which physically could by-pass the Delta area. This matter becomes important when viewed in terms of historical statements made by Bureau officials and positions argued by Department of Interior attorneys to the effect that the only responsibility of the United States with respect to Delta water quality is to maintain adequate quality at the Bureau's delta pumps. 6. PROTECTION OF THE AREAS OF ORIGIN WITH RESPECT TO WATER SUPPLIES AND PRICING POLICIES. As the California Water Commission is well aware, the United States has taken the legal position that it is not subject to State laws relating to counties and areas of origin. A willingness to subject the Pacific Southwest Water Plan to these state laws should be conceded by the Department of Interior. The mechanics of providing areas in Northern California protection regarding the price of water should be spelled out in detail. This problem is particularly acute to the agricultural economy of the State since ability to pay is a critical consideration. Agriculture in Northern California cannot afford to compete pricewise for water which can be used for municipal and industrial purposes in Arizona and Southern California. 7. ASSURANCES THAT THE DEPARTMENT OF INTERIOR WILL COMPLY WITH STATE WATER RIGHT PROCEDURE. -6-Epson Perfection 4870 Photo, 400 dpi, 8 bit, 14,983,168 byte