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<br />002542 . <br /> <br />. <br /> <br />1. The DOl agrees to expeditiously announce, designate, and convene a federal negotiating <br />team to address the water rights claims of the Navajo Nation within the Lower Basin of <br />the Colorado River. <br />2. The Navajo Nation and Federal Defendants stipulate that the litigation, including all <br />pending motions to intervene (except the State of Arizona's, in accordance with <br />paragraph 3 below) should be stayed while the settlement process proceeds, so that the <br />parties may focus their efforts on negotiations unimpeded by the litigation. Responses to <br />motions to intervene, currently due on June 16,2003, and Federal Defendants' response <br />to the complaint, currently due on June 25,2003, need not be filed pending the Court's <br />consideration of and adoption of an order regarding this Stipulation. <br />3. The Navajo Nation stipulates to the State of Arizona's intervention as of right as a <br />defendant as requested in the State's May 1,2003, motion to intervene. <br />4. Any ofthe parties to this matter, including the Navajo Nation, the Federal Defendants, and <br />(upon approval of this stipulation) the State of Arizona, may seek to lift the stay on this <br />litigation, by first providing 30 days notice to the other parties, and then filing an <br />appropriate motion with the Court if the parties are unable during the 30 day period to <br />resolve any differences regarding whether the stay should remain in place. Any party <br />exercising this option must show good cause for lifting the stay. <br />5. The parties will submit ajoint status report regarding the settlement process to the Court <br />every six months while this case is stayed and negotiations proceed. <br /> <br />The Central Arizona Water Conservation District has indicated that it intends to file its <br />opposition to the Stipulation and ask the Court to consider and grant its motion to intervene. <br /> <br />Revised Colorado River Water Orders <br /> <br />In late April, the Department ofthe Interior sent revised 2003 water order letters to Imperial <br />Irrigation District, Coachella Valley Water District, and the Metropolitan Water District ofSoulhern <br />California. The revised water orders are the result of the recent decision in the United States District <br />Court in the Imperia/Irrigation District vs. Department of the Interior lawsuit. Under the revised water <br />orders that were approved by Reclamation, Imperial Irrigation District will receive 3.1 million acre- feet, <br />Coachella V alley Water District will receive 238,200 acre-feet, and the Metropolitan Water District will <br />receive 592,500 acre-feet of mainstream water. Had the Quantification Settlement Agreement been in <br />place on January I, 2003, the Coachella and Metropolitan would have received 347,000 acre-feet and <br />1,128,600 acre-feet, respectively. <br /> <br />In late May, PVID notified Reclamation that their projected consumpti ve use of Colorado River <br />water for 2003 would be approximately 20,000 acre-feet less than the 502,400 acre-feet previously <br />approved by Reclamation. This reduction represents a transfer of 20,000 acre-feet to the Coachella <br />Valley Water District, which increases its approved order from 238,200 acre-feet to 258,200 acre-feet <br />in 2003. <br /> <br />3 <br />