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SECWCD <br />June 16, 2005 <br />6 <br />RECORD OF PROCEEDING <br />case, Mr. Leonhardt's argument addressed the facts and law supporting the Water Court's <br />dismissal of ISG's case (even though no motion for summary judgment was filed), as well as <br />ISG's arguments regarding temporary leasing plans and the Water Court's award of costs to <br />Southeastern. Mr. Leonhardt reported that the Justices were well prepared with a number of <br />good questions for the attorneys on both sides. <br />Mr. Leonhardt reported in the Chaffee County recreational in- channel diversion (RICD) case, <br />legal counsel represented the District at the Colorado Water Conservation Board (CWCB) <br />hearing held on May 23 and 24 near Salida. The RICD requires the CWCB to make findings on <br />such matters as whether the RICD would promote maximum utilization of Colorado waters and <br />whether it would impair Colorado's ability to fully develop and place beneficial consumptive use <br />its compact entitlements. Bob Hamilton testified for Southeastern that for much of the year, the <br />current RICD proposal would promote maximum utilization by supporting the Voluntary Flow <br />Management Program for the Upper Arkansas River, but that the high flows of 1,800 cfs. <br />,aimed from May 16 — June 30 would impede these goals by greatly reducing and sometimes <br />eliminating exchange potential for future exchanges. On the morning of May 24, the CWCB <br />decided to postpone action on its findings and recommendations until its September meeting, <br />based on testimony by Chaffee County, the Southeastern District, and some other parties that <br />they are engaged in settlement negotiations through which they hope to resolve many issues in <br />the case by the end of August. <br />The Board was provided copies of a memorandum that further discusses the CWCB hearing and <br />the main issues in ongoing settlement negotiations. The next settlement meeting has been set for <br />June 30. Mr. Leonhardt discussed with the Board several of the issues raised in settlement <br />negotiations involving a proposed memorandum of understanding and Chaffee County's <br />proposed consent decree. <br />Mr. Leonhardt reported that at Chaffee County's request, last month the Water Referee <br />rereferred the RICD case to the Water Judge. Some of the objectors, including Southeastern, <br />have asked that Chaffee County and other parties agree to postpone taking discovery or imposing <br />her litigation burdens on the objectors until after the September 16 deadline for the CWCB to <br />submit its findings to the Water Court. It appears that Chaffee County will agree to that request. <br />Mr. Leonhardt reported in Aurora's Rocky Ford Ditch exchange case (No. 99CW170(A), last <br />month legal counsel signed the final stipulation with the Bureau of Reclamation and Aurora, <br />confirming Reclamation's requested change to the proposed decree previously approved by the <br />Southeastern Distrct, after receiving the fully executed MOU between Southeastern, Aurora, and <br />Reclamation on the Pueblo Reservoir spill order (as approved by the District Board in February). <br />Aurora has entered settlements with all of the opposers, except for one set of individuals not <br />represented by an attorney, who have stated they will not participate in any trial of the case; <br />therefore, Aurora has filed a motion for entry of a decree that is consistent with the proposed <br />decree approved by Southeastern's most recent stipulation. <br />