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<br />SETTLEMENT NEGOTIATIONS <br /> <br />. <br /> <br />. <br /> <br />Settlement efforts began October 2001 <br />1. Stay of trial schedule and briefs <br />2. Settlement Principles, April 2002 <br /> <br />Final Settlement Stipulation December 15, 2002 <br /> <br />1. Waives all claims through December 15, 2002 <br />2. "Moratorium" - no relaxation of existing laws and <br />regulations <br />3. Accounting - sub-basins may be added together (except <br />Beaver Creek in "trigger" years - very important for our <br />compliance) <br />4. Groundwater accounting done through jointly developed <br />model <br />