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<br />. <br /> <br />. <br /> <br />from the California Department of Water Resources for the Hayfield Groundwater Storage Project. <br />Additionally, I can report that DWR Director Hannigan and MWD President and CEO Gastelum <br />executed a contract for services associated with the Hayfield Project on September I, 2001. This <br />project is being undertaken pursuant to Section 12560, et seq., of the California Water Code. In <br />addition to the MWD Board of Director's Resolution, included in the Board folder is a copy of the <br />relevant California Water Code statutes. <br /> <br />The funding is to be used for installation of recharge, extraction, and distributions facilities for <br />a groundwater conjunctive use program in the Hayfield basin, east of the City ofIndio, near MWD's <br />Julian Hinds Pumping Plant. The Project, which has been included in California's Colorado River <br />Water Use Plan, has the capability to recharge approximately 150,000 acre-feet of Colorado River water <br />per year, when surplus water is available. The stored water will be extracted in dry years for delivery <br />to MWD's service area via the Colorado River Aqueduct. The funding was authorized by 1998 State <br />legislation intended to help implement projects or programs specified in California's Colorado River <br />Water Use Plan. <br /> <br />MWD Purchase ofSempra Properties in the Palo Verde Valley <br /> <br />As you are aware, on October 16,2001 the Metropolitan Water District of Southern California <br />announced the purchase of approximately 16,000 acres of land in the Palo Verde Valley owned by <br />Sempra Energy, corporate parent of the San Diego Gas and Electric Company. Currently, MWD <br />contemplates taking approximately 29% of the acreage out of cultivation. Additionally, MWD will <br />consult with PVID on other management aspects associated with the property acquisition. Of the <br />acquired properties, nearly 7,000 acres are undeveloped upland desert lands on the Palo Verde Mesa, <br />with the remaining acreage, about 9,700 acres within the confines of the Palo Verde Irrigation District. <br />Included in the Board folder is a copy of the Los Angeles Times article announcing the purchase of <br />these land. <br /> <br />MWD-PVID Land Fallowing Program. Notice of Preparation of a Draft Environmental Impact Report <br /> <br />The Board has received notification from the Palo Verde Irrigation District (PVID) that the <br />District will be the Lead Agency in the preparation of an Environmental Impact Report (ErR) pursuant <br />to the California Environmental Quality Act (CEQA) regarding the proposed MWD-PVID Land <br />Fallowing Program. The Metropolitan Water District has been identified as a responsible agency under <br />CEQA for this EIR. A copy of the notification letter is included in the Board handout materials for your <br />infonnation. <br /> <br />Basin Statesrren Tribes Discussion <br /> <br />Meeting of the Representatives from the Seven Basin States <br /> <br />A meeting of the representatives from the Colorado River Basin states was held on November 6, <br />2001, in Phoenix, Arizona. A copy of the agenda for the meeting is included in the handout materials. <br /> <br />The Basin states representatives have expressed an interest in obtaining a better understanding <br />of the politics in Mexico regarding issues surrounding restoration of the Colorado River Delta. In that <br /> <br />4 <br />