Chapter	Potential Environmental Commitments

(1) Agreement between the Loup Basin Reclamation District (LBRD) and affected counties for payments in lieu of taxes - As specified in the Memorandum of Understanding (MOU) between the United States and the LBRD (attachment B), the LBRD will make payments to local governments to replace the in lieu of tax payments presently being made by the Federal Government and have provided that assurance to each of the counties impacted by Middle Loup project facilities.

(2) Administrative/financial responsibilities for drainage facilities - As specified in the MOU between the United States and the LBRD (attachment B), a part of the assets to be transferred includes the facilities and land rights to which Reclamation has an interest for the purposes of collecting and draining excessive groundwater in the Middle Loup area. Any addition, modifications, and operation and maintenance of said facilities and land rights will be the responsibility of the LBRD.

(3) Agreement to adopt and execute a perpetual conservation easement and an operating agreement between the LBRD and the Nebraska Game and Parks Commission (NGPC) (attachment C) - The LBRD and the NGPC entered into this agreement for the purpose of confirming each party's intent to lawfully adopt and execute the Grant of Perpetual Conservation Easement and the Operating Agreement. The conservation easement and operating agreement will be executed and adopted following completion of the transfer of title of the projects to the LBRD from the United States.

Operating agreement - The LBRD and the NGPC will enter into the operating agreement for the purpose of setting forth each participant's rights and responsibilities pertaining to the administration and control of the recreation, fish, wildlife, agricultural, and related outdoor recreational resources associated with the "easement lands" granted by the LBRD to the NGPC.

Grant of perpetual easement - The LBRD will enter into the grant of perpetual easement for the purpose of transferring to the NGPC the responsibility of administering the lands and facilities described as recreation, fish, wildlife, agricultural, and other related purposes consistent with the perpetual easement, consistent with the intended purposes of the Middle Loup project, and consistent with the NGPC's sound park, fisheries, and wildlife management practices. The LBRD and the NGPC will recognize and acknowledge that the principal purposes of the Middle Loup project continue to be for irrigation diversion, storage of water for irrigation, and delivery of water for irrigation to the water users. The NGPC will agree to conduct its responsibilities in accordance with that acknowledgment. Both parties recognize that this grant is intended to provide, in perpetuity, for the protection and preservation of the public trust for fish, wildlife, and recreation use of the Middle Loup project lands and facilities.

(4) Measures for cultural resources - Prior to title transfer legislation, Section 110 of National Historic Preservation Act (NHPA) work was conducted at the project location. A complete Class III archeological survey was performed on all lands at Sherman Reservoir, Arcadia and Milburn diversion dams, and the mitigation lands. A Class I records search and site visits were performed for most canal rights-of-way since the lands on these properties had previously been heavily disturbed by canal construction. As a result of this work, Reclamation determined that this transfer of title would result in the removal of Federal protection for historic properties on these lands and would cause an adverse effect on these properties as specified in the NHPA. Under Section 106 of the NHPA, Reclamation must consult with the State Historic Preservation Officer (SHPO) and the Advisory Council on Historic Preservation to develop a method to mitigate the effects of this transfer. Attached to this document (attachment D) is a Memorandum of Agreement (MOA) between Reclamation, the SHPO, the LBRD, and the University of Nebraska. This MOA identifies the key organizations that will be responsible for all future historic preservation on project lands. Attached to this MOA is an agreement between the University of Nebraska and the LBRD agreeing to work together to develop and implement a management plan to preserve the archeological and historic value of the sites. Also attached to the MOA is a Protective Management Plan, developed in consultation with the SHPO, to mitigate all adverse effects of this title transfer. This management plan, which is to promote the preservation and protection of the significant archeological and historical sites, includes specific plans to create a preservation easement naming the University of Nebraska as the holder for all sites identified as potentially eligible for listing on the National Register of Historic Places.

(5) Measures to be identified through consultation with the Fish and Wildlife Service (FWS) for the protection of listed species - In compliance with Section 7 of the Endangered Species Act of 1973, as amended, Reclamation is consulting with the FWS regarding potential effects that program operation may have on federally listed threatened or endangered species, candidate species, and related habitat. Consultation activities include the FWS' review of Reclamation's biological assessment (BA) and possible development of mitigation and/or conservation measures. Section 7 consultation requirements will be completed before transfer of title.