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. Water providers in Douglas and Arapahoe counties say they have to work together because they can't afford comprehensive solutions on their own. Without a regional solution, the problem will only get worse, Last year, the Geological Society of America presented research showing the aquifers that supply the south metro region are falling by as much as an inch day. Officials said the region could face a dire water shortage in as little as 20 years, capping the region's growth and driving up water bills as utilities face the cost of digging deeper wells that draw less water. Julesburg Well Owners Group Pulls Out Of LSP Water District: The Julesburg Well Owners have decided to withdraw from the Lower South Platte Water Conservancy District. Rio Grande Basin NPS Files Application: On Dec. 30, 2004, the United States filed a water rights application for the Great Sand Dunes National Park and Preserve. The application was filed pursuant to the Great Sand Dunes National Park and Preserve Act of2000, designating the National Park, and requests, among other things, a water right for "all unappropriated water in order to maintain, as nearly as possible, natural water levels and flows." The groundwater right sought by the U.S. government is claimed to be essential to maintaining the dunefield for which Great Sand Dunes is famous and is also necessary for maintaining the park's plants, animals, wetlands and other scenic and natural features. A copy of the application is attached. Appeals Court Rejects Claim To Great Sand Dunes Water: In late December 2004 the Colorado Court of Appeals rejected all claims by a part owner of water rights beneath the Baca Ranch, part ofthe Great Sand Dunes National Park. The decision upheld a state district court's ruling against American Water Development Inc., which tried to block sale ofthe water rights to The Nature Conservancy: The appeals court said the deal didn't allow American Water Development to dictate the price of the water rights. State Water Rules Imminent: According to Division III Engineer Steve Vandiver the potential for groundwater administration from the state looms in the not-so-distant future for the San Luis Valley. The state engineer promulgated rules for new appropriations in the confined aquifer the end of June. Those rules have been opposed by several entities, so the Division of Water Resources will be litigating those rules over the next calendar year, 2005. Vandiver said rules will also be written to require groundwater users to measure the production of their wells. Vandiver also has said a third set of administrative rules for groundwater administration are also being contemplated that are similar to those currently in place on the Arkansas River or South Platte. He said these rules would only be promulgated if the locals cannot get an agreement on the sub-districts to address shortage and injury issues of wells and well impact on surface streams as well as other groundwater rights. He said the state engineer is actively encouraging the Rio Grande Water Conservation District and the water users as a whole to come up with a solution that complies with Senate Bill 222 and provides more flexible mechanisms for the administration of wells than what the state could do if the state engineer has to promulgate rules. . . San Juan River Basin Status Report on Pine River Irrigation District / Sonthern Ute Indian Tribe Water Donation: For the past year, staff has been working on developing an agreement with the Pine River Irrigation District 29