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<br />Page 2 <br /> <br />3. Ground Water Right for Great Sand Dunes National Park, 2004 CW 35 <br /> <br />The United States and supporting parties filed their expert disclosures December 29, 2006. <br />Opposers expert disclosures are due April 6, 2007. <br /> <br />4. Division 3 Confined Aquifer New Use Rules <br /> <br />Cotton Creek Circles filed an appeal in the Colorado Supreme Court of the decision approving <br />the Rules, and filed a brief in opposition to all Proponents' bills of costs. <br /> <br />5. Kansas v. Colorado (No. 105 Original) <br /> <br />In late June, 2007, Special Master Littleworth issued three additional orders resolving disputed <br />issues concerning the final Decree. Colorado prevailed on all three issues: (1) There will <br />continue to be a 100,000 acre foot monthly limit on the amount of Stateline flows that can be <br />considered "usable" for groundwater recharge in Kansas under the Compact. Kansas had <br />requested that no limit be decreed. (2) Any future disputes re: changing the H- I Model code to <br />reflect new sources of replacement water (for groundwater pumping) will be subject to the "fast <br />track" dispute resolution procedure, including binding arbitration. Kansas had requested that the <br />longer process, with non-binding arbitration, be used. (3) The Special Master will not attempt to <br />formulate a detailed standard for recalibrations of the model, as Kansas had requested, but the <br />Decree will require that the model be recalibrated as necessary to "produce the most reliable <br />estimates" of depletions/accretions to usable Stateline flow. <br /> <br />Negotiations with Kansas continue on a few remaining technical issues. Special J\;(aster <br />Littleworth intends to file his Final Report and recommended Decree with the Supreme Court by <br />late summer or early fall. <br /> <br />WATER RIGHTS MATTER <br /> <br />6. Supreme Court Appeal, Case No. 06SA303 <br /> <br />Appeal of Upper Eagle Regional Water Authority Case No. 03CW78, District Court, Water <br />Division 5: The Supreme Court heard oral argument regarding this appeal on June 14th. The <br />bench was quite engaged with all justices asking questions during the arguments. The justices <br />appeared to unders tand that the Authority had provided no proof of the actual mix of water uses <br />occurring today within the Authority's service areas. The Authority and the State continue to <br />discuss possible settlement, with the Authority requesting another settlement meeting in early <br />July. Prior to the oral argument, the State had submitted a proposed settlement offer to the <br />Authority in response to the Authority's last offer. The Authority has not yet responded to the <br />State's latest offer, which requires the Authority to annually estimate its actual mix of water uses <br />and the resulting out-of-priority depletions to the Eagle River. <br /> <br />7. Application for Water Rights of Copper Mountain, Inc., Case No. 01CW304: <br /> <br />This case remains on a trial track. The \Vater Court recently ruled on four ques tions of law <br />raised by the State and Division Engineers and the CWCR The Court ruled in favor of the State <br />