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<br />JUL-03-03 16,06 FROM,BALCOMB & GREEN PC <br />. . <br /> <br />10,9709458902 <br /> <br />First, I believe that there continues to be mistrust directed toward liD, and some <br />parties even suggest that liD cannot be trusted to "do the deaL" As to this point let me <br />be emphatically clear: the 110 Board of Directors has already approved the QSA and <br />as President of the Board I have signed the relevant documents, including the long- <br />term transfer agreement with San Diego. In other words, liD supports the QSA. liD <br />has approved the QS^ and liD stands ready to address with any interested parties <br />continuing concerns about the terms of the QSA. <br /> <br />Some parties have recently suggested that liD's position is one of "take it or <br />leave it" in regard to the QSA documents that have been approved and executed. That <br />is not a correct statement. While liD would prefer to have the QSA documents remain <br />largely as presently structured, so as to avoid further public hearings in the Imperial <br />Valley and then another vote of the Board, we have never in any way suggested that <br />this is a take it or leave it deal. <br /> <br />We appreciate that other basin states and the Department of the Interior (Interior) <br />may suggest modifications to some of the terms in the documents. 110 is fully prepared <br />to engage those discussions and to take appropriate action in the event of a ' <br />substantive change in the deal terms. I make note, however, of the obvious - the more <br />onerous the chang'es in the direction of 110 the more we fac~ potential political <br />difficulties within our community. But that is the same with other parties as well and we <br />are therefore nevertheless prepared to proceed as long as all interested parties <br />appreciate the political risks. . <br /> <br />. Second, some parties have suggested that 110 should dismiss its suit against the <br />United States government so as to show good faith in the direction of completing the <br />QSA. Again. let me be perfectly clear. lID is prepared to dismiss its suit against the <br />fede~al government as soon as the Part 417 proceeding is dismissed and the QSA <br />has been executed. let me emphasize - liD is not interested in protracted and <br />confrontational litigation. But 110 will not abandon its legal defenses while it is under <br />attack and it is not reasonable to ask or expect us to do that. <br /> <br />Let me also state that liD has been and remains fully prepared to negotiate with <br />Interior, the basin states, and other interested parties at the same time that 110 <br />defends itself in the ongoing 417 proceeding. Such action puts an enormous strain on <br />the limited 110 budg.et, but we recognize that time. is of the essence and there is no <br />other alternative. We respectfully suggest that all other parties, including the powerful <br />United States go~ernment with huge resources, must be compeUed to follow the same <br />approach. . <br /> <br />Third, this subcommittee, other members of Congress, and the White House <br />should all be focused on facilitating face-te-face negotiations over remaining deal <br />terms for the QSA. Since the first of the year liD has had only one meeting with <br />Interior and the Department of Justice, which was not on the substance of the QSA. <br />Mr. Chairman, since time is of the essence it is not helpful for me to mince words or <br /> <br />PAGE 22/34 <br /> <br />2 <br />