Question 3. Groundwater Management in Diamond Valley, NV (25 points + 10 bonus points) In Mr. Jon Benedict's guest lecture on April 6th and in Lecture 17 "Conjunctive Management in the Humboldt River", it was argued that the hydrologic connection between groundwater pumping and stream flow in the Humboldt River means that groundwater and surface water should be managed jointly (conjunctive management). The need for conjunctive management in the Humboldt became evident when senior water rights holders in the lower Humboldt started to not receive their full duty in drought years due, in part, to diversions of groundwater by junior water rights holders up-stream. Mr. Benedict discussed a recent attempt by the Nevada Division of Water Resources' (i.e., the State Engineer's) to develop a plan for conjunctive management in the Humboldt River where senior surface water rights holders would receive financial compensation from junior groundwater rights holders for water lost due to conflict. The Nevada State Assembly elected not to move forward with this plan during the last legislative session. Please answer the following questions: a. Illustrate graphically the total net benefits from captured groundwater and downstream surface water use in a year when there is no conflict, i.e., when downstream surface water users receive their full allocation. (10 points) b. Illustrate graphically the total net benefits from captured groundwater and downstream surface water use in a year when there is conflict, i.e., when downstream surface water users do not receive their full allocation, in part, because of upstream groundwater pumping. (10 points) c. List one of the reasons why it more economically efficient for upstream groundwater users to compensate downstream surface water users financially rather than to curtail upstream groundwater pumping to reduce surface water "capture." (5 points) d. Continuing from part (c.), provide a second (5 bonus points) and a third (5 bonus points) reason why the financial compensation scheme is like to be more economically efficient.