NOTICE TO THE REPUBLICAN RIVER BASIN NATURAL RESOURCES DISTRICTS OF THE POTENTIAL FOR WATER SHORT YEAR ADMINISTRATION IN 2007

Pursuant to the Lower, Middle & Upper Republican Natural Resources Districts (“Districts”) and the Nebraska Department of Natural Resources (“Department”) Integrated Management Plans and associated controls as adopted by the Districts, and as adopted by the Department; the Department hereby provides notice to the Districts of the potential for Water Short Year Administration in 2007.

Under the terms of the Final Settlement Stipulation, Water Short Year Administration will be in effect in those years in which the projected or actual irrigation supply is less than 119,000 acre-feet of storage available for use from Harlan County Lake as determined by the Bureau of Reclamation using the methodology described in the Harlan County Lake Operation Consensus Plan. Each year between October 1 and June 30, the Bureau of Reclamation will provide a monthly update of the projected or actual irrigation supply from Harlan County Lake for that irrigation season.

The United States Bureau of Reclamation has projected that the irrigation supply from Harlan County Lake will be zero acre-feet using storage available on September 30, 2006. This forecast indicates that Water Short Year Administration will be in effect in 2007. However, the determination that Water Short Year Administration is in effect will not become final until June 30, 2007.

October 10, 2006