Milestone W3-1 and W3-2. These milestones relate to the protection of "program water" by Nebraska. The State believes that adequate laws already exist to provide such protection. However, one statute expected to be used is Sec. 46-252, which has yet to be tested to determine if it can successfully provide the protection required. According to Milestone W3-1, pilot projects for application under Sec. 46-252 were to be selected in Year 1 and applications for those projects were to be selected in Year 2 (Milestone W3-2). Neither activity has been completed. However, at a December 1998 meeting, the Nebraska members of the Water Management Committee were asked to suggest possible projects to be used in that manner. Mike Drain from Central Nebraska Public Power and Irrigation District has taken the responsibility for leadership of that effort.

Milestones W4-1 and W4-2. The Cooperative Hydrology Study described in the January 13, 1998 milestone report is continuing and is on schedule. Several contracts have been let with the University of Nebraska, the Natural Resources Conservation Service, and the Natural Resources Commission to perform specific work elements as part of that study. A request for second year funding of the project is expected to be approved in April. Also, an application has been filed with the Environmental Trust for additional activities under this study. A decision on that application will also be made in April.

The meetings with natural resources districts and others to address new depletions issues have been expanded to include representation from municipalities, farm organizations, and the environmental community. Meetings are held monthly and a special meeting is scheduled for March 17 with all of the natural resources district directors in the basin. The process for developing a new depletions plan is on schedule according to the milestones, but difficulties may be encountered in meeting the EIS schedule.

Milestones W16-1 and W12-2. These milestones involve the identification of institutional constraints on making water available to the program in each state. Limitations on water transfers have been recognized as one potential institutional constraint in Nebraska. A task force representing many different interests in the state worked through the summer and fall to consider potential changes in Nebraska water transfer law. An outline of the agreed upon principles relating to such changes is attached. Those principles are presently being utilized to draft legislation that will be introduced in the 1999 session of the Nebraska Legislature.

Milestones A3-1 and A2-2. These milestones relate to Nebraska's obligation to provide cash for the Cooperative Agreement activities. Both milestones have been met through the appropriation of a total of $450,000 through the first two years. The Natural Resources Commission budget request for the next biennium, beginning July 1, 1999, has been submitted. It includes a request for an additional $250,000 for the third year of the Cooperative Agreement (Milestone A2-3).

Milestones R5-1 and R3-2 (Research); L3-1 and L1-2 (Habitat); and W2-1 and W2-2 (EA implementation). These are all milestones for the "Nebraska Districts," i.e. Central Nebraska Public Power and Irrigation District and Nebraska Public Power District. They will report separately on the status of these milestones.