RIO GRANDE COMPACT COMMISSION 41? E. FRANKLIN STE 560 R. GORDON EL PASO. COMMISSIONER TELEPHONE: (9I51334-TIIT5 FAX {915} 834-7080 April 12,2018 VIA ELECTRONIC MAIL AND FIRST CLASS MAIL Mr. Tom Blaine New Mexico Compact Commissioner Of?ce ot'thc State Engineer P.O. Box 25102 Santa Fe. New Mexico 87102 Re: Application for Permit to Appropriate New Mexico Copper Corporation Notice ot?Violation of Rio Grande Compact Dear Commissioner Blaine: Texas has recently been informed that an Application for Permit to Appropriate 5,234 acre feet of' water (the ?Application") by NMCC is in the process of being approved by New Mexico. The Application states that this water is needed by NMCC for the operation ofa mine (?Mine") located close to the Rio Grande and Caballo Reservoir. The Drali Environmental Impact Statement for the Mine and the Hydrology Report prepared by John Shomakcr Associates, Inc. dated December 201? re?ect that the Mine will have a direct, large in magnitude, and long term impact on Compact water delivered by New Mexico to Texas in the Rio Grande and stored in aballo Reservoir. The New Mexico Interstate Stream Commission con?rms this in a letter dated February 26. 2016. objecting to the DEIS. I wanted to put you on notice ol?Texas's concerns. New Mexico is a party to the Rio Grande Compact, see Act ofMay 31, 1939, ch. 155. 53 Stat. 785 (the ?Compact?L along with the States of Texas and Colorado. The Compact apportions the waters of the Rio Grande between the States of Colorado, New Mexico and Texas. The Compact also provides for the delivery of water to Mexico under a 1906 Treaty. New Mexico delivers Texas?s apportioned water under the Compact in Elephant Butte Reservoir. At such time, the water belongs to Texas and is only available for use by Texas and certain contract and treaty parties in New Mexico, Texas and Mexico. New Mexico is prohibited from diverting or using, Texas?s water. Texas is aware of attempts to acquire rights to water that would purportedly offset the impacts to the Rio Grande and Caballo Reservoir. The fifteen year lease that NMCC has with the Jicarilla Apache Nation for San Juan Chama water that New Mexico may require as some type of offset for the diversion of Texas's Compact water would not come close to remedying the immediate and long term depletions to the Rio Grande and Caballo Reservoir caused by the Mine. In fact. NMCC states in the Application that it needs this water to operate the Mine. The states that the impacts to the Rio Grande and Caballo Reservoir will last over 100 years. A ?so called" ??ccn year offset that New Mexico calculates in its sole discretion does not remedy the harm to Texas that will be caused by the approval of the Application. even assuming as stated by the NMISC that such offset was in "real-time.? As you are aware, Texas sued New Mexico in the United States Supreme Court. see Texas v. New Mexico, Original No. 141. This case is currently before the Court and is moving forward toward trial and resolution. following the Court?s denial of New Mexico's motion to dismiss. Discovery will eotnmenee soon. The NMCC proposed actions and the granting of water rights by your of?ce will directly and adversely impact Texas. New Mexico?s approval oi'this action, as well as granting permits for other actions (such as the Gillis pump immediately below the Caballo Reservoir). arc violations of the Compact. These ongoing violations reinforce Texas's action in the United States Supreme Court and add to its recoverable damages against New Mexico. inecrely, Pat Gordon, Texas Commissioner cc: Kevin Rein, Colorado Compact Commissioner Hal Simpson, Federal hairman. Rio Grande Compact Commission Mason. woos 0559 I axis} 2