Southeastern Colorado Water Activity Enterprise Minutes June 17 2004

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SECWCD June 17, 2004 4 RECORD OF PROCEEDING response stating that Southeastern does not object to holding the trial in Otero County. Mr. Leonhardt said these cases will be discussed in Executive Session. Mr. Leonhardt reported in Southeastern's Boustead Tunnel Enlargement cases in Division 5, legal counsel has scheduled a settlement meeting with Reclamation and the West Slope object s (Colorado River District, City of Aspen, Town of Basalt and Basalt Water Conservancy Di us_ L for June 28. Reclamation now seems satisfied that there was a reasonable basis for the State's diversion record showing a maximum discharge of 1,030 c.fs. from Boustead Tunnel in May 2000. That diversion record is the basis for Southeastem's claims in the current enlargement cases. Mr. Leonhardt said he and Mr. Broderick had a conference call with Reclamation on June 15 to discuss the two cases. Mr. Leonhardt said legal counsel will discuss this matter with the Board in Executive Session, and will seek the Board's directions for settlement negotiations as legal counsel goes into the June 28 meeting. Mr. Leonhardt reported several developments with the City of Aspen on the Twin Lakes Exchange issues during the last month. In particular, Division Engineer Alan Martellaro issued some directions on June 2, partially granting Aspen's request to curtail Fry-Ark Project diversions in the Hunter Creek drainage based on the non - operation of the Twin Lakes Exchange. The Division Engineer credited the Project for 1,253 acre -feet that had been bypassed for the Twin Lakes Exchange from October 1, 2003 to May 14, 2004, so that the total amount required to be bypassed is 1,747 acre -feet (3,000 minus 1,253), rather than the full 3,000 acre - feet as Aspen had requested. Mr. Leonhardt said after receiving the Division Engineer's letter, legal counsel provided a preliminary settlement proposal to Aspen. Mr. Leonhardt said this issue also will be discussed in Executive Session, and he may seek further directions for settlement negotiation with Aspen. Mr. Leonhardt reported in the Rocky Ford Ditch change case (Case No. 99CW 169), Aurora filed its Annual Status Report on Revegetation Efforts (Governing 2004 Irrigation Season) on June 9, 2004. In it, Aurora claims 337.5 acres have been adequately revegetated, which is consistent with the report from the revegetation panel. Aurora also asserts that 976.8 acres are exempt from dry-up and revegetation requirements because they are being irrigated with substitute supplies, and that Aurora should be able to take water from the transfer in 2004 to the same extent as if the exempt acreage had been dried up and revegetated. Mr. Leonhardt said he recommends discussing this matter in executive session, and legal counsel may file an objection to Aurora's Status Report. In the Rocky Ford exchange case (Case No. 99CW170) W. Leonhardt reported, Judge Maes entered the Case Management Order for Part A of the case on May 17, 2004. Southeastern has stipulated to settle its objections in Part A and remains involved only to assure that the final decree is consistent with the decree to which it stipulated. The trial is set for June 20 — July 1, 2005. Aurora is negotiating settlement stipulations with several other objectors. Jim DuBois of the U. S. Justice Department, on behalf of the Bureau of Reclamation, provided some comments on a provision of Aurora's proposed exchange decree regarding Aurora's right to use Fry-Ark Project facilities. The U. S. comments would significantly change a few provisions that were negotiated as part of Southeastern's stipulation. District legal counsel responded to the U. S. comments, objecting in particular to a request to strike any reference to the spill order provided by Southeastern's contract with the U. S., which provides that any water stored for use outside -the District is first to spill. Legal counsel is continuing to discuss this provision with attorneys for Aurora and the U. S. Regarding the Arkansas Groundwater Users Association (AGUA) replacement plan for 2004, Mr. Leonhardt said legal counsel has set a meeting with State Engineer Hal Simpson and Division Engineer Steve Witte for June 24, 2004, to discuss Southeastern's ongoing concerns as summarized in the letter legal counsel sent to them last month. Carl Genova and Bob Hamilton will attend the meeting with legal counsel. The main concerns involve long -term injury to the Winter Water Storage Program if the State Engineer allows AGUA to continue winter diversions of the Excelsior Ditch in amounts far above the historical average. AGUA's attorney, Paul