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,,~ ~ 'J ,\ E T H [) P [) LI TAN W ATE R 0 1ST R 1 C T Boulder Canyon Project Adjustment Act, and the contracts writ- ten thereunder, was considered by the District staff in consultation with representatives of the State of California and of other Cali- , fornia claimants. The problem is complex and will require tbe most earnest and careful consideration by all groups interested in the development of the eoastal plain, Under its contract with the United States for the construction of Parker Dam, the Dist.rict is required to reimburse the U nit.ed States for the cost. of acquisition of flooded lands, The Cotton Land Company filed suit in the Court of Claims of the United States, sceking compensation for lands claimed to' have been flooded, and the United States attempted to bring the District into this action under third-party procedure authorized by Cong- ress with relation to renE'g"ot.iatiun and settlement of war tUlltl'acts. After the District's objections were filed with the court, the United States obtained a stipulation under which the Di,trict was dis- missed from the adion. The staff will follow the litigation and will asist the United States in opposing the Cotton Land Company. Negotiations carried on during the previolls year resulted in execution of a contract between the District, the San Gabriel Valley Protective Association and the Los Angeles Count)" Flood Control District, relating to the u:-;e of l\'Iol'ris reservoir and providing for storage therein by the District of certain waters of the San Gabriel River, pursuant to an appropriative right to be acquired by the District under the California Water Code, Bouldcl' 1)01OC1' During 1945 extensive negotiations were conducted, looking to- ward the disposition of electric energy from Boulder power plant allotted to and contracted for by the District, but not used. These negotiations resulted in the completion and execution of the 1945 Resale Contract whereby such unused energy was disposed of, the District retaining the right to ca\! upon Boulder for all energy required for its pumping operations. The purchasers under this contract are City of Los Angeles, 55 per cent; Southern California Edison Company, Limited. 40 per cent; California Electric Power Com pan,' , 5 per cent, Consideration of the basis upon which Colorado River water could be made available to the San Diego area in the event of the aJIllexatiOI1 to the District of the corporate area of the Authority above mentioned (see Annexation) required study of the possible reduction in the power privilege of the United States at Parker ~ < , 1 ,