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<br />~}'l' <br />"; <br /> <br />. <br /> <br />. <br /> <br />r-- <br />,:J') <br />.:;;'1 debts and a bitter defeat. The compact would be administered based <br />0J <br /> <br />c.,) <br />\...... <br /> <br />on two separate schedules, regardless of the relative seniority of <br />the Conejos water rights and regardless of the tighter bind of the <br /> <br />Conejos schedule. <br /> <br />Conejos increased its mill levy and issued <br /> <br />general obligation bonds to cover its debts. Meanwhile, Platoro <br /> <br />Reservoir, with all its promise for water management sat unused. <br /> <br />THE PROPOSED TRANSACTION <br /> <br />Now Platoro is seen as the great hope for the conejos region. <br /> <br />The reality has sunk in that the severe Conejos compact schedule <br /> <br />must be met. Aggressive water conservation and management will be <br /> <br />necessary. Nevertheless, the risks of future compact indebtedness <br /> <br />. and its possible freeze on the use of the reservoir must be <br /> <br />anticipated. <br /> <br />The District approached the Bureau about further amendments <br /> <br />to the repayment contract to obtain the flexibility needed to <br /> <br />pursue aggressive management and to shoulder the compact risk. <br /> <br />The originalS-year development period was in dispute. Had it <br /> <br />already occurred as some correspondence seemed to indicate? Or had <br /> <br />it never been possible to occur since water had never been usable <br /> <br />during the period? The Bureau's position was that reclamation law <br /> <br />precluded another development period. Could the variable repayment <br />obligation based on "water availability" be clarified to track <br /> <br />actual water delivered for use on district lands as opposed to <br /> <br />5 <br />