In a letter dated December 2, 1996, from the Bureau of Reclamation (BOR) to TUD, BOR writes:
“Reclamation cannot sell or deliver any ‘water impounded by the United States in New Melones’ (Project Water) to TUD under a water service contract until it has satisfied its obligations under the Central Valley Project Improvement Act (CVPIA), the Endangered Species Act, the December 1994 Bay Delta Accord, and other water quality, environmental, and Fish and Wildlife Service requirements. Water released to meet these requirements is not considered to be diverted or exported from the Stanislaus River Basin. The magnitude of these demands is such that Project Water from New Melones Reservoir is not available under water service contract in many years.”