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o (0 lO CJ (.~:J j""". ",-", the Eastdale reservoir system into costilla Reservoir. The Water Company filed an injunction suit in the U. S. District Court for New Mexico, but a motion to dismiss by the New Mexico state Engineer was granted. The company appealed to the U. S. Circuit Court of Appeals for the Tenth Circuit, and the court suggested that the way to solve the problem was through interstate compact. The costilla Creek Compact was negotiated by representa- tives of the Colorado Water Conservation Board, the New Mexico state Engineer, and the Water Company during 1941-44 and became effective on June II, 1946. The compact apportions both direct flow and storage waters between the two states. concepts built into the compact that have the major impact are: 1) direct flow water is apportioned between irrigators of the two states on a priority basis; 2) Colorado direct flow decrees were reduced one-half to allow for the difference in decreed duties of 1 cfs per 80 acres in New Mexico and 1 cfs per 40 acres in Colorado, except no decree was reduced to less than 1 cfs; 3) changes of points of diversion for company-owned rights in the Acequia Madre and in the Manzanares and Madriles Ditches were recognized; 4) storage in costilla Reservoir was apportioned between the two states; and 5) storage in the Eastdale reservoir system from costilla Creek was limited to 1,000 acre-feet annually. In 1963, the costilla Creek Compact was amended to allow transfer of an additional portion of the Acequia Madre water right to the Cerro Canal. Attachment 3 is the amended compact delivery schedule for Colorado direct flow water, and the allocations shown for delivery to the creek correspond to the original Colorado direct flow decrees for the Acequiacita and for the Chalifu, Trujillo, and Garcia Ditches. In 1956, the Water Company disposed of its water rights. The Colorado portion of the costilla Reservoir project and Cerro Canal was acquired by the Jaroso Mutual Ditch Association, while the New Mexico portion was acquired by the Rio costilla Cooperative Livestock Association. The Eastdale Mutual Ditch and Reservoir Company acquired the Eastdale reservoir system and the right to store 1,000 acre-feet of water from costilla Creek. The Sanchez Ditch and Reservoir Company acquired Sanchez Reservoir and all the company's Culebra Creek water rights including the Culebra-Eastdale Canal. This is the ownership of the water rights at the present. -7-