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Attorney General ' s Report <br /> Mr . Paddock reported on several matters . He mentioned one <br /> of special interest to the Durango area, that the challenge to <br /> the validity of the Animas-La Plata Conservancy District forma- <br /> tion has been thrown out of court . <br /> Concerning the Vermejo litigation, the Special Master has <br /> issued a second finding in Colorado ' s favor to which New Mexico <br /> has taken exception. New briefs will be prepared and submitted . <br /> The Colorado Supreme Court issued its long-awaited decision <br /> in the Huston case . Nontributary groundwater is not the property <br /> of surface landowners but is subject to appropriation through <br /> water court filings . In effect , the decision suggests that the <br /> choice of how future use and development of nontributary <br /> groundwater occurs is with the General Assembly. <br /> Mr . Paddock reported that it appears that the State of Kan- <br /> sas is preparing to sue Colorado over disagreement on Colorado' s <br /> position that current operation of Arkansas River storage reser- <br /> voirs does not violate the compact. <br /> Director ' s Report <br /> Mr . McDonald described the effects of legislative action on <br /> the agency' s budget . The enactment of HB 1320 earlier transfer- <br /> red $22. 5 million from the Construction Fund to a Fiscal <br /> Emergency Fund . In the Special Session , SB 431 is a supplemental <br /> appropriation measure for the Department of Natural Resources <br /> which proposes reductions in or changes to appropriations in the <br /> current Long Bill. The major effect on the Board is to <br /> substitute about $327, 000 from the Construction Fund for <br /> previously appropriated general fund along with about $58, 000 <br /> being reimbursed by the Colorado Water Resources and Power <br /> Development Authority for technical services by the Board staff . <br /> After a discussion by the members in which concern was ex- <br /> pressed about further attrition of funds available for water <br /> project construction, Mr . Robbins moved, with a second by Mr . <br /> Jackson , that the Director send a letter to the State Controller <br /> expressing concern over the additional transfer of $1. 6 million <br /> from the fund to balance the State ' s books at the close of the <br /> fiscal year . The motion carried . <br /> Mr. Robbins then moved , again with a second from Mr . Jack- <br /> son , that the Director write to the Colorado Water Congress on <br /> the Board' s behalf to express concern over the ramifications of <br /> the budgetary proposal on water project development . The motion <br /> lost on a 3-3 tie . <br /> Mr. McDonald then reported that an omnibus public works bill <br /> is being considered in Congress . Prospects for the Animas-La • <br /> -6- <br />