Southeastern Colorado Water Activity Enterprise Minutes May 20 2004

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SECWCD May 20, 2004 8 RECORD OF PROCEEDING LEGAL REPORT: Mr. Leonhardt reported in the High Plains A&M and independent Shareholders Group (ISO) cases, Scott Clark and he had attended the Case Management Conference in Pueblo on May 7. At that time, Judge Maes set a trial date and established other deadlines for the Case Management Order, Judge Maes set trial for October 3 through December 2, 2005, for a total of 40 trial days. Mr. Leonhardt said Judge Maes established September 15, 2004 as the deadline for Applicants' expert disclosures, and May 31, 2005 for the Objectors' expert disclosures. Legal counsel has had preliminary discussions with Leo Eisel, of Brown & Caldwell, regarding potential representation of Southeastern The Lower Arkansas Valley Water Conservancy District ( LAVWCD) Board last week approved joint retention of Dr. Eisel with Southeastern, each district to pay half of Mr. Eisel's fees and costs, with the possibility of other objectors with similar interests joining in the arrangement and defraying part of the costs. Mr. Leonhardt recommended that the Board also approve this joint retention of Dr. Eisel by Southeastern and LAVWCD. Mr. Goodwin moved, seconded by Mr. Aschermann, to approving joining with the LAVWCD in the retention of Dr. Eisel. Motion unanimously carried. Mr. Leonhardt reported in Southeastern's Boustead Tunnel Enlargement cases in Division 5, Water Referee Petre held a status conference by telephone in late April. Legal counsel plans to meet again on June 28 for settlement negotiations with West Slope Objectors and Reclamation. Referee Petre requested another status conference on July 8. Reclamation has been working with the Colorado Division of Water Resources to set a time to visit the Boustead Tunnel outlet and inspect measrurements of diversions through the tunnel. Bob Hamilton has remained in contact with Reclamation and the State on this issue, and will try to attend the on -site measurement session with Reclamation and the State. Mr. Leonhardt reported in Aurora's Lake County transfer case (Case 98CW137A.), he requested a change to some language that was added to the proposed decree after Southeastern stipulated with the Applicants. The added language inaccurately described the operation and benefits of the "replacement pool" to which Aurora will provide some of the decreed water supply, based on Aurora's IGA with the Upper Ark District and stipulations with Southeastern. Aurora made the changes to the proposed decree as was requested, and several parties stipulated to the changes. On May 4, 2004, Judge Maes entered the decree for the "A" portion of this case. This decree quantified and changed the irrigation water rights on the Hayden and Spurlin -Shaw Ranches in Lake County for municipal, augmentation and other uses by Aurora and Lake County, and for diversion at Twin Lakes, Turquoise Reservoir, Clear Creek Reservoir and the Otero Pipeline intake. Legal counsel closely reviewed the final decree, and believes it is consistent with Southeastern's recent stipulation. Mr. Leonhardt reported that Aurora's attorney sent proposed decrees for Part `B" of the Aurora/Lake County case and the `B" portion of 99CW170 (Rocky Ford exchange case), involving storage and exchanges for Aurora's proposed Box Creek Reservoir in Lake County. Per Southeastern's IGA with Aurora, the remaining Box Creek issues in these three cases are to be negotiated and settled by October 3, 2004. Legal counsel is reviewing the proposed decrees, and expects that negotiations will occur this summer in these cases, along with Case No. 01CW145 (Box Creek exchange case). Mr. Leonhardt said legal counsel provided comments to the State Engineer on Aurora's request for substitute supply plan ("SWSP ") approval for use of their Lake County water rights (from the Hayden and Spurlin -Shaw Ranches), as well as water rights leased on the adjoining Lake Fork Ranch. The recent decree in Case 98CW137(A) avoided the need for SWSP approval on the Hayden and Spurlin -Shaw Ranches, as those water rights are now decreed for use by Aurora in Aurora's service area. In its recent IGA with Southeastern, Aurora agreed to limit its total diversions from leased Arkansas River Basin wafer supplies during 2004 and 2005 to no more than 12,600 acre -feet in any single year. Our SWSP comments requested that the water leased by Aurora from the Lake Fork Ranch be counted against this 12,600 acre -foot limitation. Mr.