Lake Texoma Association2014

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Lake Texoma Association The Lake Texoma Association (LTA is) celebrating over 50 years of

promoting and protecting Lake Texoma. LTA is a nonprofit organization functioning much like an area-wide

chamber of commerce promoting the entire Lake Texoma region, bothOklahoma and Texas.

Importance of Economy and Jobs Pew Research Center surveys, businesses and the public have clearly

indicated that the economy and jobs trump all other policy priorities. Strengthening the nation’s economy and improving the job situation stand

at the top of the public’s list of domestic priorities for recovering from therecession over the next several years.

Federal, state and local legislators , government officials and others areincreasing emphasis on the economy and jobs.

Lake Texoma’s Regional Economic Engine is focused on Recreation andTourism and has a critical and significant impact on the regional economy,jobs, and the quality of life of Southern Oklahoma and North Texas.

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What economic impacts doesrecreation and tourism have?

Regional Recreation and Tourism have a variety of economic impacts.Tourists , boaters, fishermen and other outdoor recreation enthusiastscontribute to sales, profits, jobs, tax revenues, and income in the area.

The recreation and tourism industry, in turn, buys goods and services fromother businesses in the area, and pays out most of the income as wages andsalaries to its employees. This creates secondary economic effects in the region.

Lake Texoma Regional Economic Impacts

Economic benefits in Tier -1 occur along the lakeshore.

Economic benefits in Tier -2 occur within 30 miles of Lake Texoma and Tier -3ranging up to 300 miles or more such as Dallas-Fort Worth, Oklahoma City,Kansas and West Texas add greatly to the economic multiplier effect.

For example, numerous Tier -3 fishermen, boaters, campers and touristsregularly visit Lake Texoma on several weekends and quite a few days or weeksof vacation for their primary recreation. They purchase boats, engines, fishingand camping equipment, motor homes and travel trailers and spend travelfunds that all contribute to the regional economy and jobs.

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General Outlook 2014 and Beyond Lake Texoma normally attracts more than 6 million visitors and

generates more than $600 million per year in Tier 1, 2 and 3 economicbenefits.

Lake Texoma started the 2013 summer season with some temporaryrelief from the ongoing drought since 2011 with a normal 617 msl lakeelevation. The summer and fall have been hot and dry seasons.

Lake levels have decreased rapidly due to drought, high temperatures,evaporation and greatly increased hydro-power generation.

The Lake Texoma elevation has decreased below 610 msl 1/1/2014 and isapproaching 605 msl greatly increasing safety hazards, infrastructureand boat damage, closing most boat launching ramps and causing majorregional visitor decreases.

Most lake area businesses have reported 20 to 40% reductions in revenueduring previous droughts. Drought intensity outlooks are increasing.

$120-140 million loss / per year

Over 2,700 Oklahoma and Texas jobs at Lake Texoma are being affectedto varying degrees as well as the overall regional economy. Types ofregional destinations, businesses and tourism/recreation follow.

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LAKE TEXOMA REGIONAL ISSUES According to the interagency National Drought Resilience Partnership

to Help Communities Prepare for Drought and reduce the impact ofdrought events on livelihoods and the economy "The impacts of droughtcan be devastating to local communities and economies and don't endwith the onset of fall and winter."

Lake Texoma surface elevations have rapidly decreased from the normalconservation pool elevation of 617 msl in June 2013 to the first seriousalert point of 612 msl on 10/30/2013 identified in PUBLIC LAW 100-71,7/11/1987. Lake elevations were at 609 msl and rapidly declining on1/13/14.

The water demand for the cumulative hydroelectric power generation,water supply, evaporation and National Weather Service and otherdrought outlooks for several months in 2014 indicate critically low lakeelevations and severe regional economic impacts will be reached in thenear future.

Moreover, severe regional droughts have repeated every 15 to 20 yearssince 1895 according to USDA’s Annual OK Precipitation History. 6

HYDROELECTRIC POWER GENERATIONINCREASES BY SWPA

Near and long term problems are caused by the federal Southwestern PowerAdministration (SWPA) that points to Texas market demand and pricingspikes causing their major increase in generating Lake Texoma power forTexas customers and rapidly depleting the critical water reserves of LakeTexoma up to three feet of surface elevation per month.

This is only one example of increasing and future Upper Red River and LakeTexoma cumulative hydropower/water supply demands and normal cyclicsevere drought conditions within the watershed exceeding available supplies.

Public Law 100-71 enacted in 1987 clearly does not provide adequate protection26 years later for several hundred million dollars of existing, planned andfuture tourism and recreation revenue and economic development in the LakeTexoma area and requires updating to meet present and forthcomingrequirements.

Flood, Drought Control and Conservation are essential for modern riverwatersheds and reservoirs. The lake area is one of the increasingly importantfederal project purposes comparing favorably economically withhydroelectric power generation, water supply and watershed management.7

WATER SUPPLY Future Lake Texoma and Red River water demand and supplies face

serious challenges for residential, commercial and agriculturalinterests.

A review of Texas Water Regions A, B, C and D future demands,alternatives and plans along the Red River Watershed indicate that theresimply isn't enough water in the Red River and Lake Texoma to meetcumulative DFW area and Upper Red River demands.

The situation is worsened by the increasing sedimentation anddecreased water supply volume in Lake Texoma for water supply, greatlyincreased hydroelectric power generation as well as the return ofnormal, recurring, extended drought conditions in the region.

As a result of major stakeholder concerns. the Lake Texoma Associationhas passed a Resolution to provide Lake Texoma Region Drought,Tourism, Recreation and Lake Elevation Safeguards.

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Lake Texoma Water Annual Loss andLake Elevation Changes Summary

Southwestern Power Administration (SWPA) Hydroelectric power generation:3 feet/month (or 36 feet) per year in a 86,000 acre reservoir. This is a majornew increase over normal generation.

North Texas Municipal Water District water supply removal: 3 feet per yearusing the new pipeline operational in the Spring of 2014.

Evaporation during hot drought conditions: 5.79 feet per year based upon 2011experience for a grand total of ~ 45 feet per year for all current causes.

The National Weather Service Drought Seasonal Outlooks for Lake Texomaand the Upper Red River Watershed indicate drought persisting orintensifying in the watershed.

NWS Long Term Climate Influencing Factors graphics indicate that currentvariations in global Sea Surface Temperatures support long term Texas andregional drought conditions.

Lake Texoma elevations can decrease rapidly from the average conservationpool of 617 msl to below 607 msl causing major negative economic impacts.Impacts increase exponentially in a severe drought.

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FLOOD AND DROUGHT CONTROL ISREQUIRED FOR MODERN RESERVOIRS Public Law 100-71 enacted in 1987 clearly does not provide adequate

protection 26 years later for several hundred million dollars of existing,planned and future tourism and recreation revenue and economicdevelopment in the Lake Texoma area and requires updating to meetnew requirements.

The Lake Texoma region is one of the increasingly important federalproject purposes comparing favorably economically with hydroelectricpower generation, water supply and overall watershed management.

Flood, Natural/Manmade Drought Control and Effective Conservationare essential for modern river watersheds and reservoirs.

Many water reservoirs utilize drought management plans andconservation/water restrictions to conserve the available water supply intimes of drought and emergency.

Obviously Lake Texoma requires an effective Drought Management andResponse Plan that includes specific percentages of conservationcapacity, lake surface elevations as well as water restriction stages.

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SUSTAINING THE LAKE TEXOMAREGIONAL ECONOMYREQUESTED ACTION

Amend PUBLIC LAW 100-71, JULY 11, 1987 or enact other federal legislationto add Drought Control as a key Lake Texoma Project purpose AND AmendPUBLIC LAW 100-71, JULY 11, 1987 lake surface elevation action items andtrigger points and related management plans for the conservation pool inLake Texoma that:

(1) attempts to maintain a water surface elevation between the seasonal poolelevation of 619 and 615 msl: Provided however, That hydroelectric power will begenerated and water supplied to help satisfy electric loads and water demandedwhen the water surface elevation is between the seasonal target of 619 and 615msl;

(2) when the water surface elevation drops below 615 msl or lower, implements apublic information, conservation and drought management program includingNorth Texas Municipal Water District (NTMWD) Stage 2 or equivalent waterrestrictions;

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REQUESTED ACTION

(3) when the water surface elevation is between 615 and 609 msl, provides for theCorps to notify SWPA that hydroelectric power generation should only be madewhen it is needed for rapid response, and short term customer peaking demands(brown outs)as recommended by the power scheduling entity and determined bythe Corps; and

provides for the Corps of Engineers to notify municipal,agricultural/irrigation and industrial water users to implement NTMWDStage 3 or equivalent water conservation restrictions designed to lessen theimpact of municipal, irrigation, and industrial water withdrawals.

(4) when the water surface elevation is between 609 and 600 msl-

(a) provides for the Corps to notify the SWPA that hydroelectric powergeneration shall only be made to satisfy customer emergency power needs onthe power scheduling entity's electrical system as recommended by the powerscheduling entity and determined by the Corps; and,

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REQUESTED ACTION

(b) defines emergency criteria levels for water supply and power generation as:

(b1) electrical power blackouts and,

(b2) all water supply districts and their customers have implementedtheir most stringent water use requirements such as NTMWD Stage 4 orequivalent water conservation restrictions ;

(c) provides for the Corps of Engineers to notify municipal,agricultural/irrigation and industrial water users that they shall implementtheir most stringent water conservation measures designed to lessen theimpact of municipal and industrial water withdrawals.

(5) when the water surface elevation is between 600 and 590 msl-

(a) All water removal stops from Lake Texoma for any reason except forminimal environmental flows of 50 cfs or less.

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