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<br />DDOJ29 <br /> <br />. <br /> <br />. <br /> <br />The court adopted the recommendation of the Solicitor <br /> <br />Ger.eral and stayed further proceedings pending a determination that <br /> <br />an administrative remedy could be found. A stipulation was also <br /> <br />executed by the parties. <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 />hardships in the valley. These reductions were never contemplated <br /> <br />by the 1938 compact, since they involve water rights which were <br /> <br />legally acquired long before the compact became effective. <br /> <br />Recognizing that the pending litigation would affect all <br /> <br />of the people of the San Luis Valley, the Colorado legislature in <br /> <br />1967 authorized the creation of the Rio Grande Water Conservation <br /> <br />District with the authority to levy ad valorem taxes. This dis- <br /> <br />trict has been created and its representatives are here today. <br /> <br />This district, along with two smaller districts - the San Luis <br /> <br />Valley Water Conservancy District and the Conejos Water Conser- <br /> <br />vancy District - have with their limited finances undertaken a <br /> <br />program of water salvage in the valley. In the past two years <br /> <br />drainage and channel improvement projects have been completed at a <br /> <br />total cost of about $250,000, which included direct assistance of <br />$70,000 from the State of Colorado. <br /> <br />Other similar projects are in the planning stage and will <br /> <br />-7- <br />