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equally confident prior to the District court appeal that lead to the hearing. At the District <br />Court level both sides won some arguments and lost some arguments. YCWA <br />expected that the parties would experience this same level of success as the litigation <br />continued. Unless the NHP Basin groundwater users were completely successful there <br />was a likelihood of curtailment of between 300 to 1,300 wells. <br />Case No. Q5-GW-14 was set for a month long hearing in June 2008 in front of a hearing <br />officer for the Groundwater Commission. After the hearing, the full Groundwater <br />Commission would consider the arguments of the parties and then vote whether to <br />accept the proposed findings of its Hearing Officer. Following the decision of the <br />Groundwater Commission, any party dissatisfied with the outcome would have the right <br />to appeal the decision back to the District Court. The District Court could set another <br />trial on the merits of the claim, essentially repeating the hearing conducted before the <br />Groundwater Commission. Following this decision, the parties could once again appeal <br />the decision to the Supreme Court. Reversal at the District Court or appellate level <br />could result in another round of hearings and trials. <br />YCWA estimated that it may take 4 to 10 years for a final conclusion to the dispute. <br />YCWA also estimated that attorney and engineering fees during this time could range <br />between $3 million to $8 million depending on the necessity of additional fees if the <br />case were remanded for another round of hearings and trials. <br />The only thing certain about the litigation was that it would be costly and would delay <br />the resolution of the dispute for many years. It was unlikely that litigation would <br />eliminate the need to mitigate impacts to the surface water users. <br />3.4. Alternative 2 <br />The North Fork surface users initially sought more than $40 million for their water rights, <br />but eventually settled for $20 million. The 2003-2007 average compact depletion <br />charged to these rights was 2578 acre feet for the irrigation of between 1000 and 1500 <br />acres. <br />This second alternative prevents further litigation concerning a dispute lasting more than <br />30 years and threatening curtailment of the water supply to 190,000 irrigated acres. <br />Coupled with the compact compliance pipeline, this purchase secures the <br />irrigation/municipal/commercial water supply for the NHP Basin for decades to come. <br />The acquired water rights will also add up to 2578 acre feet to the compact compliance <br />water supply, which will prolong the useful life of the compact compliance wells and <br />pipeline. In addition, the water can be relied upon by Yuma County cities as an <br />emergency augmentation supply in the event that compact compliance efforts fail and <br />municipal wells are curtailed. <br />3.5. Preferred Alternative <br />Alternative 2 was selected as the preferred alternative because it provided a more <br />timely resolution of the dispute, avoided years of litigation costs, prevented the huge <br />economic impact of wide-spread well curtailment, provided additional compact <br />12368\1 \1204400.5 6 <br />