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<br />, .1' /0 a a { 2 ~ <br /> <br />. <br /> <br />. <br /> <br />The court adopted the recommendation of the Solicitor <br /> <br /> <br />General and stayed further proceedings pending a determination that <br /> <br /> <br />an administrative remedy could be found. A stipulation was also <br /> <br />executed by the parties, in the belief that the Closed Basin Project <br />would subsequently become a reality. <br /> <br />In an attempt to meet compact deliveries, the Colorado <br /> <br />state engineer has severely reduced Colorado diversions during the <br /> <br />past several years. This reduction has created serious economic <br /> <br /> <br />hardships in the valley. These reductions were never contemplated <br /> <br /> <br />by the 1938 compact, since they involve water rights which were <br /> <br /> <br />legally acquired long before the compact became effective. <br /> <br /> <br />Recognizing that the pending litigation would affect all <br /> <br /> <br />of the people of the San Luis Valley, the Colorado legislature in <br /> <br /> <br />1967 authorized the creation of the Rio Grande Water Conservation <br /> <br /> <br />District with the authority to levy ad valorem taxes. This district <br /> <br /> <br />has been created and its representatives are here today. This dis- <br /> <br /> <br />trict, along with two smaller districts - the San Luis Valley Water <br /> <br /> <br />Conservancy District and the Conejos Water Conservancy District - <br /> <br /> <br />have with their limited finances undertaken a program of water salvage <br /> <br /> <br />in the valley. In the past two years drainage and channel improve- <br /> <br /> <br />ment projects have been completed at a total cost of about $300,000, <br /> <br /> <br />which included direct assistance of over $100,000 from the State of <br /> <br /> <br />Colorado. <br /> <br />-7- <br />