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<br />2ndREVISEDAgendaNov02.doc <br /> NOTICE OF GENERAL MEETING OF THE <br /> COLORADO GROUND WATER COMMISSION <br /> <br />10:00 a.m. Friday November 15, 2002 <br /> <br />1313 Sherman St. Rm. 318 <br />Denver, CO 80203 <br /> <br /> Revised A G E N D A <br /> <br />Determine Quorum. <br /> <br />Review and Approval of Agenda Items. <br /> <br />Approval of Minutes for Meeting of August 16, 2002. <br /> <br />Report of the Executive Director by Hal Simpson. <br /> <br />Kansas v. Nebraska and Colorado litigation – Republican River Compact by Hal Simpson. <br /> <br />Proposed Language for Rulemaking to Require Historic Use Analysis and Administration for Rotational Acres by Suzanne Sellers. <br /> <br />Discussion of the Recently Adopted Farm Bill with Respect to Ogallala Conservation by Allen Green of the NRCS and Max Smith of the Southern High Plains GWMD. <br /> <br />Staff Report by Suzanne Sellers and Megan Sullivan. <br /> <br />Report of the Attorney General by Matthew Poznanovic. <br /> <br />Management District Reports: <br /> a. Frenchman e. WY i. Southern High Plains <br /> b. Sand Hills f. Arikaree j. North KiowaBijou <br /> c. Marks Butte g. Plains k. Upper Black Squirrel <br /> d. Central Yuma h. East Cheyenne l. Upper Big Sandy <br />Lost Creek <br />Old Business <br /> <br />Summary of Discussion on Anti-speculation Doctrine with Regard to the Denver Basin Aquifers in the Designated Basins. <br /> <br />New Business <br /> <br />Selection of Meeting Dates for the 2003. <br /> <br />Commission in Executive Session (12:00-1:00) Concerning the Following: <br /> <br />North Kiowa-Bijou Ground Water Management District v. Ground Water Commission of the State of Colorado: Hal D. Simpson, State Engineer/Executive Director of the Ground Water Commission <br /> and Thomas H. Bradbury Et Al., Case No. 2001CV1652 (Arapahoe County District Court). Status of Supreme Court Appeal. <br /> <br />Kansas v. Nebraska v. Colorado, No. 126 (Oct. Term, 2000). Status of Case. <br /> <br />Eagle Peak Farms v. Ground Water Commission of the State of Colorado, Case No. 99CV0097 (Adams County District Court). Status of Settlement Discussions. <br /> <br />Adjournment. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />AG Report2002-11-15.docATTORNEY GENERAL’S REPORT <br /> <br />Cases involving the Colorado Ground Water Commission <br />November 15, 2002 <br /> <br />The listing below summarizes all matters in which the Office of the Attorney General currently represents the Colorado Ground Water Commission. <br /> <br /> <br />EAGLE PEAK & PROSPECT VALLEY Case number: 96-GW-13, 99CV97 Designated Basin: Lost Creek Management District: Lost Creek Before: Adams County District Court Attorney: <br /> Pat Kowaleski <br />Subject: Application for ten new well permits and changes for 39 existing wells, with a replacement plan and export out of the District. <br />Status: At the November, 1998 meeting the Commission affirmed the Initial Decision of its Hearing Officer that it was not appropriate to hear Eagle Peak’s change applications because <br /> the Lost Creek District had not yet approved Eagle Peak’s export application. The Commission took the position that it could not approve an application involving export unless the export <br /> had been approved by the District. On January 14, 1999 Eagle Peak appealed this decision to the Adams County District Court and, among other things, has requested that the District <br /> Court rule on the substance of the change applications, even though the Commission has not reviewed the substance of the applications. The Complaint also seeks unspecified damages <br /> against the State for impairment of Eagle Peak’s water rights. This Office filed an Answer to the complaint on February 12, 1999 and the record was certified on June 15, 1999. A 3 <br /> week trial has been scheduled for October, 2003. Motions were filed in June, 2002 and the Commission argued that the applications should not be heard by the Judge without input from <br /> the Commission and, at most, this matter should be remanded to the Commission for further proceedings. Eagle Peak has subsequently sold its water rights to Sweetwater Development, which <br /> is proposing to use the rights without a change in well location. The Court proceedings are temporarily on hold. This matter will be discussed in executive session on November 15, 2002. <br /> <br />EAGLE PEAK FARMS LTD Case Number: 98CV1727 Designated Basin: Lost Creek Management District: Lost Creek Before: Adams County District Court Attorney: Pat Kowaleski <br />Subject: Denial by the Lost Creek District of Eagle Peak’s application for export <br />Status: The District denied Eagle Peak’s application for export and when Eagle Peak appealed the decision to District Court, the Court dismissed the challenge because all parties had <br /> not been properly served. The Court of Appeals overturned this procedural decision and remanded the case to the District Court for a determination on the merits. The District filed <br /> a Petition for Rehearing with the Court of Appeals and the Petition for Rehearing was denied on February 3, 2000. The Lost Creek District filed a Petition for Writ of Certiorari with <br /> the Colorado Supreme Court on March 3, 2000 and the petition was denied on August 20, 2000. Motions affecting how this matter will proceed are pending before the District Court. This <br /> case is related to the case above, but the Commission is not a party to the case, since it involves the District’s decision to deny export. <br /> <br />LARRY RIDE Case Nos. 01-GW-06 and 01-GW-07 Designated Basin: Northern High Plains Management District: Frenchman Ground Water Management District Before: Jody Grantham, Hearing <br /> Officer Attorney: Matt Poznanovic <br />Subject: Objections by Bernard and Edith Loos, Ray and Lila Wilson, Darrell Whittington, Dale Whittington and Dola Schaal in Case Nos. 01-GW-06 and 01-GW-07, and an objection by Chuck <br /> and Janet Schmidt in Case No. 01-GW-07 to Mr. Ride’s applications to appropriate designated ground water from the Ogalalla aquifer for the irrigation of a 258 acre property and a 157 <br /> acre property. <br />Status: On January 15, 2002, at the Applicant’s request, the Hearing Officer ordered the dismissal of Case No. 01-GW-06. A hearing was held in Holyoke on July 24, 2002. The Hearing <br /> Officer issued an initial decision granting the application, but reduced the maximum annual amount of ground water to be appropriated from 464 acre-feet to 448 acre-feet, and the land <br /> to be irrigated from 186 acres to 179.6 acres, to address potential impacts to the Objector’s 4 small capacity wells. The Staff filed a Motion to Reconsider, because the Staff’s position <br /> is small capacity wells should not be considered by the Hearing Officer when imposing terms and conditions. On August 23, 2002, the Hearing Officer issued an amended initial decision <br /> granting the application, and increased the maximum annual amount of ground water to be appropriated to 464 acre-feet. This case has been closed. <br /> <br />town of bennett Case No. 02-GW-02 Designated Basin: Kiowa Bijou Management District: North Kiowa Bijou Before: Jody Grantham, Hearing Officer Attorney: Matt Poznanovic <br />Subject: Objection by the Management District to two applications for changes of water <br />right to combine the allocations of two determinations of water right and to change the place of use and type of use in each determination. <br /> <br />Status: A hearing before the Hearing Officer is set for November 7, 2002. In its prehearing <br />statement, the District requested the Hearing Officer determine and advise the parties as to the effect of the Revised Order in the Bradbury case, Case No. 01CV2053 regarding whether <br /> a determination of water right is a water right. In its response, Staff took the position that the Revised Order in Bradbury is not relevant to the evaluation of the applications in <br /> this case. The Hearing Officer ordered that the Bradbury Revised Order is relevant to this action, and the change sought in this action is merely a continuation of the determination <br /> that such water exists as stated in Judge Phelps order. <br /> <br />Ambrocio KOH, zaida koh, katrina koh and jon koh Case No. 02-GW-03 Designated Basin: Upper Black Squirrel Creek Management District: Upper Black Squirrel Creek Before: Jody Grantham, <br /> Hearing Officer Attorney: Matt Poznanovic <br />Subject: Objection by the Management District to two applications for determination of <br />water rights to allow appropriation of designated ground water from the Laramie-Fox Hills and Arapahoe aquifers underlying 8.9 acres. <br /> <br />Status: On July 18, 2002, the Applicant and District entered into a Stipulation, and as a <br />result, the District withdrew its objection. As a result, the Determinations have been granted. This case is closed. <br /> <br />sam thomas, dick schell and paula warren Case No. 02-GW-04 Designated Basin: Upper Black Squirrel Creek Management District: Upper Black Squirrel Creek Before: Jody Grantham, Hearing <br /> Officer Attorney: Matt Poznanovic <br />Subject: Objection by the Management District to two applications for determination of <br />water rights to allow appropriation of designated ground water from the Laramie-Fox Hills and Arapahoe aquifers underlying 9.38 acres. <br /> <br />Status: On July 18, 2002, the Applicant and District entered into a Stipulation. As a <br />result, the District withdrew its objection. As a result, the Determinations have been granted. This case is closed. <br /> <br />woodmen hills metropolitan district and falcon properties & investment llp Case No. 02-GW-05 Designated Basin: Upper Black Squirrel Creek Management District: Upper Black Squirrel <br /> Creek Before: Jody Grantham, Hearing Officer Attorney: Matt Poznanovic <br />Subject: Objection by the Management District to four applications for change of water rights to <br />combine allocations for existing determinations of water rights and to change the place of use and type of use. The determinations are allocations of ground water from the Laramie-Fox <br /> Hills, Arapahoe, Denver, and Dawson aquifers. <br /> <br />Status: A hearing was set for September 9, 2002. The Applicant and the District have entered <br />into a stipulation. As a result, the District withdrew its objection. Since no other parties objected, the Hearing Officer vacated the hearing. This case is closed. <br /> <br />GTL Development & B.I.G. Partners Case No. 02-GW-06 Designated Basin: Upper Black Squirrel Creek Management District: Upper Black Squirrel Creek Before: Jody Grantham, Hearing Officer <br /> Attorney: Matt Poznanovic <br />Subject: Objection by the Management District to three applications for change of water rights to <br />change the place of use and type of use for existing determinations. The determinations are allocations of ground water from the Laramie-Fox Hills, Arapahoe, and Denver aquifers. <br /> <br />Status: The Applicant and the District have entered into a stipulation. As a result, the <br />District withdrew its objection. Since no other parties objected, the Hearing Officer ordered that the matter was dismissed and remanded the applications back to the Staff for issuance. <br /> This case is closed. <br /> <br />TODD WISDOM & WISDOM FEED LOTS Consolidated Case Nos. 02-GW-07 & 02-GW-15 Designated Basin: Northern High Plains Management District: Frenchman Ground Water Management District Before: <br /> Jody Grantham, Hearing Officer Attorney: Matt Poznanovic <br />Subject: Objections by Vince Hoefler, Raymond Brekel, Dale Whittington, and John and <br />Mary Wiebers in Case Nos. 02GW07 and 02GW15, and objection by Robert and Marie Bricknell in Case Nos. 02GW07. In Case No. 02GW07, Todd Wisdom has filed an application to appropriate <br /> designated ground water from the Ogallala aquifer for a feedlot operation with up to 20,000 head of cattle. In Case No. 02GW15, Wisdom Feed Lot has filed an application to increase <br /> the appropriation of an existing well in the Ogallala aquifer for irrigation of an additional 130 acres. <br /> <br />Status: The Hearing Officer ordered the consolidation of the cases. The Applicant and <br />Objectors entered into a stipulation. As a result, the Applicant requested that the <br />applications be amended to reduce the requested gpm from 1800 gpm to 1500 gpm. The Objectors withdrew their objections. The Hearing Officer ordered that the cases be dismissed and <br /> remanded the applications back the Staff for issuance. This case is closed. <br />ALPHA AND OMEGA, LLC Case No. 02-GW-08 Designated Basin: Upper Black Squirrel Creek Management District: Upper Black Squirrel Creek Before: Jody Grantham, Hearing Officer Attorney: <br /> Matt Poznanovic <br />Subject: Objection by the District to an application for replacement plan to allow <br />withdrawal of designated ground water from the Arapahoe aquifer underlying a 40 acre property. <br /> <br />Status: A 2-day hearing was set for September 30 and October 1, 2002. The Applicant and the <br />District have entered into a stipulation. As a result, the District withdrew its objection. Since no other parties objected, the Hearing Officer ordered that the matter was dismissed <br /> and remanded the application back to the Staff for issuance. This case is closed. <br /> <br />lonny l. elliott Case No. 02-GW-09 Designated Basin: Upper Black Squirrel Creek Management District: Upper Black Squirrel Creek Before: Jody Grantham, Hearing Officer Attorney: <br /> Matt Poznanovic <br />Subject: Objection by the District to an application for determination of water right to <br />allow appropriation from the Arapahoe aquifers underlying a 175.89 acre property. <br /> <br />Status: A hearing is set for November 4, 2002. The Applicant and the District have entered <br />into a stipulation. As a result, the District withdrew its objection. The Hearing Officer ordered that the matter was dismissed and remanded the application back to the Staff for issuance. <br /> This case is closed. <br /> <br />CITY OF AURORA Case Nos. 02-GW-11 and 02-GW-12 Designated Basin: Lost Creek Management District: Lost Creek Before: Jody Grantham, Hearing Officer Attorney: Matt Poznanovic <br />Subject: Objections by Thunderbird Estates Homeowners Association, Dove Hill Estates <br />Home Owners Association, and Frances Penk to applications for determination of <br />water rights to allow appropriation of designated ground water from the Laramie-Fox Hills, Lower Arapahoe, Upper Arapahoe and Denver aquifers underlying 161.25 acres in Case No. 02GW11 <br /> and underlying 132.092 acres in Case No. 02GW12. <br /> <br />Status: For Case No. 02GW11, a hearing is set for January 27, 2002. For Case No. <br />02GW12, a hearing is set for January 28, 2003. The Applicant’s Motion to Consolidate Case Nos. 02GW11 and 02GW12 is pending before the Hearing Officer. <br />reinaldo gallegos Case No. 02-GW-13 Designated Basin: Upper Crow Creek Attorney: Matt Poznanovic Before: Jody Grantham, Hearing Officer <br />Subject: Objections by Tennick Land & Cattle, Green Valley Ranch, Inc., and Nussbaum <br />Ranch to an application for appropriation of designated ground water from the White River aquifer for irrigation of 185 acres. <br /> <br />Status: A hearing before the Hearing Officer is set for December 16 and 17, 2002. <br /> <br />KENNETH POTTORFF Case No. 02-GW-14 Designated Basin: Northern High Plains Management District: Plains Before: Jody Grantham, Hearing Officer Attorney: Matt Poznanovic <br />Subject: Objection by the District to the issuance of amended final permits and the <br />temporary change of use applications for 2 wells from irrigation to highway construction and irrigation. The amended final permits concern a claimed 320 additional approved acres put <br /> to use by both wells prior to August 5, 1977. The temporary change of use was approved by the Commission on May 2, 2002 and will expire on December 31, 2002. <br /> <br />Status: At the prehearing conference for this matter, it was noted that Mr. Pottorff has <br />filed for bankruptcy and an automatic stay had been granted by the Bankruptcy Court. The Hearing Officer made an inquiry with the Bankruptcy Court regarding the effect of the automatic <br /> stay on these proceedings. As a result, the Bankruptcy Court set a preliminary hearing on relief from stay for November 6, 2002. At the conclusion of the hearing, the Judge granted <br /> the relief from stay, so this case can be set for hearing before the Hearing Officer. <br /> <br />PEORIA CROSSING, LLC. Case No. 02-GW-18 Designated Basin: Kiowa-Bijou Management District: North Kiowa Bijou Before: Jody Grantham, Hearing Officer Attorney: Matt Poznanovic <br />Subject: Peoria Crossing filed an application for determination of water right to allow <br />appropriation of designated ground water from the Laramie-Fox Hills aquifer underlying its 241.36 acre property. Peoria Crossing filed an appeal challenging the Staff’s calculation <br /> of a cylinder of appropriation for an existing well owned by LaFarge West, Inc., and the resulting decrease in the amount of allocation determined for the aquifer underlying Peoria <br /> Crossing’s property. <br /> <br />Status: A hearing for this matter was held on October, 22, 2002. Peoria Crossing, LaFarge <br />West and the Staff participated in the hearing. At the conclusion of the hearing, the Hearing Officer requested the parties to brief a number of issues. After the filing of briefs <br /> on November 13, 2002, the Hearing Officer shall make his initial decision. <br /> <br />WAYNE E. and frances g. booker Case No. 02-GW-20 Designated Basin: Upper Black Squirrel Management District: Upper Black Squirrel Before: Jody Grantham, Hearing Officer Attorney: <br /> Matt Poznanovic <br />Subject: Objections by the District, Cherokee Metropolitan District, and Schubert Ranches <br />to applications to relocate the wells with Permit Nos. R-16265-FP, R-16271-FP, R-16272-FP, 27560-FP, and 27585-FP <br /> <br />Status: A hearing shall be set before the Hearing Officer. <br /> <br />Thomas H. Bradbury et al Case No. 02 SA 216 Designated Basin: Kiowa-Bijou Management District: North Kiowa Bijou Before: Colorado Supreme Court Attorney: Pat Kowaleski <br />Subject: The Bradburys filed 14 applications for Determinations of Water Rights, pursuant 37-90-107(7)(c). The District filed objections claiming that the statute is unconstitutional <br /> in that it “attempts to separate the administration of groundwater contained in the Dawson, Denver, Arapahoe, or Laramie-Fox Hill Aquifers and that they be treated differently from <br /> all other groundwaters covered in the Act…” The District contends that a system which uses ownership of land to determine interests in water is violative of Article 16, Section 5 of <br /> the Constitution which declares that the water of the state is the property of the public and subject to appropriation. <br /> <br />Status: After a hearing, the Hearing Officer issued his initial decision, determining that the applications were not speculative and should be granted. At its May, 2001 meeting, the <br /> Commission reviewed the initial decision and approved the applications. The District challenged this decision in Arapahoe County District Court. The parties filed several Motions and <br /> the Arapahoe District Court ruled that the statute was constitutional and that the speculation doctrine applied to the applications. It was subsequently determined that the pleadings <br /> should have been filed with the Designated Ground Water Judge in Adams County, and therefore all of the Arapahoe Court’s proceedings were set aside and the case was sent to the Adams <br /> County District Court. The Adams County Judge made rulings similar to those filed by the Arapahoe County Judge, and a half day hearing was held by the Court on March 8, 2002 to determine, <br /> de novo, whether the applications should be granted. After issuing several amended orders, the Court ultimately determined that the anti-speculation doctrine applies to consideration <br /> of applications in the Denver Basin aquifers of the Designated Basins, but concluded that the doctrine should be considered at the time that well permit applications were sought rather <br /> than when the determinations were sought. The Commission has appealed the finding of the Court that a determination of water right is not a water right. The District has cross-appealed, <br /> raising all issues which it presented to the District Court. The Bradburys have not appealed any aspect of the Court’s decision. The District Court has been unable to locate and transmit <br /> all materials that were filed with the Court, and this has affected the briefing schedule in the Supreme Court. At this time, the Commission’s brief, on whether a determination of <br /> water right is a water right, is due in the Supreme Court on December 19. The District will then have 30 days to file a brief on its issues, and the Commission will have 30 days to <br /> respond. The briefing should be completed in the early spring, with a decision likely sometime early next summer. This matter will be discussed in executive session on November 15. <br /> <br />P:NR\H2O\GWC\11-02 AG Report.doc <br /> <br />8 <br /> <br /> <br />3 <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />AgendaNov02.doc <br /> NOTICE OF GENERAL MEETING OF THE <br /> COLORADO GROUND WATER COMMISSION <br /> <br />10:00 a.m. Friday November 15, 2002 <br /> <br />1313 Sherman St. Rm. 318 <br />Denver, CO 80203 <br /> <br /> A G E N D A <br /> <br />Determine Quorum. <br /> <br />Review and Approval of Agenda Items. <br /> <br />Approval of Minutes for Meeting of August 16, 2002. <br /> <br />Report of the Executive Director by Hal Simpson. <br /> <br />Kansas v. Nebraska and Colorado litigation – Republican River Compact by Hal Simpson. <br /> <br />Proposed Language for Rulemaking to Require Historic Use Analysis and Administration for Rotational Acres by Suzanne Sellers. <br /> <br />Discussion of the Recently Adopted Farm Bill with Respect to Ogallala Conservation by Alan Green of the NRCS and Max Smith of the Southern High Plains GWMD. <br /> <br />Staff Report by Suzanne Sellers and Megan Sullivan. <br /> <br />Report of the Attorney General by Matthew Poznanovic. <br /> <br />Management District Reports: <br /> a. Frenchman e. WY i. Southern High Plains <br /> b. Sand Hills f. Arikaree j. North KiowaBijou <br /> c. Marks Butte g. Plains k. Upper Black Squirrel <br /> d. Central Yuma h. East Cheyenne l. Upper Big Sandy <br />Lost Creek <br />Old Business <br /> <br />Summary of Discussion on Anti-speculation Doctrine with Regard to the Denver Basin Aquifers in the Designated Basins. <br /> <br />New Business <br /> <br />Selection of Meeting Dates for the 2003. <br /> <br />Commission in Executive Session (12:00-1:00) Concerning the Following: <br /> <br />North Kiowa-Bijou Ground Water Management District v. Ground Water Commission of the State of Colorado: Hal D. Simpson, State Engineer/Executive Director of the Ground Water Commission <br /> and Thomas H. Bradbury Et Al., Case No. 2001CV1652 (Arapahoe County District Court). Status of Supreme Court Appeal. <br /> <br />Kansas v. Nebraska v. Colorado, No. 126 (Oct. Term, 2000). Status of Case. <br /> <br />Eagle Peak Farms v. Ground Water Commission of the State of Colorado, Case No. 99CV0097 (Adams County District Court). Status of Settlement Discussions. <br /> <br />Adjournment. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Final Permit Activity Aug 02- Oct 02.docFinal Permit Activity <br /> <br />For this last quarter, there was final permit activity within the Northern High Plains, Upper Crow Creek and Southern High Plains. <br /> <br />Work continues in the Northern High Plains with those remaining conditional permits, which were previously set aside due to their complexity or lack of cooperation from well owners. <br /> In this past quarter, 47 final permits in Yuma and Lincoln counties were published and issued and 41 permits in Kit Carson and Yuma counties were clarified and are ready for publication. <br /> In addition, the process to clarify 25 structures was begun with letters sent to well owners requesting beneficial use documentation. <br /> <br />[CROW CREEK] <br /> <br />And finally, as experienced in the past with other basins, in the Southern High Plains, response to the request for statements of use has been slow. For the initial group of 105 permits, <br /> only approximately 20% of the well owners have responded to the requests mailed the previous quarter. A second request for this information that is necessary to clairfiy the use of <br /> the permits will be sent out soon. <br /> <br />As indicated in previous reports, there is the continuing problem of lack of current ownership information within many of the permit files, which delays the clarifying process. In order <br /> to facilitate correspondence with well owners, the staff asks District Managers to encourage land owners to complete and submit change of ownership/address forms to the Commission Staff, <br /> if they have acquired wells or moved in the last 10 years. <br /> <br /> <br /> <br />Minutes-3rd '02.doc <br />MINUTES <br /> <br /> THIRD QUARTERLY MEETING <br /> COLORADO GROUND WATER COMMISSION <br /> <br /> AUGUST 16, 2002 <br /> <br /> <br /> <br />The Third Quarterly Meeting of the Colorado Ground Water Commission took place on August 16, 2002, at the Sheraton Steamboat Resort and Conference Center, Steamboat Springs, Colorado. <br /> Chairman Earnest Mikita called the meeting to order at 8:45 a.m. Marta Ahrens called the roll and determined that a quorum was present. Commission members present were Eugene Bauerle, <br /> Larry Clever, Ralph Curtis, Richard Huwa, Frank Jaeger, Robert Loose, Ted Kowalski and Hal Simpson. Commissioners Dennis Coryell and Max Smith, and Ex-Officio member Kent Holsinger, <br /> were absent. <br /> <br />Review and Approval of Agenda Items - Mr. Pat Kowaleski proposed that the Commission go into Executive Session at the end of the meeting to discuss development regarding the litigation <br /> on Eagle Peak Farms. <br /> <br />Approval of Minutes for Meeting of May 17, 2002 - Chairman Mikita asked if there were any corrections or additions to the Minutes of the May 17, 2002 meeting. Corrections noted were: <br /> on the first page, first paragraph, change “reclused” to “recused”, and in the third paragraph, change “First” Quarterly to “Second” Quarterly. Commissioner Clever moved to accept <br /> the Minutes with the corrections noted. The motion was seconded by Commissioner Bauerle and carried unanimously. <br /> <br />Report of the Executive Director by Hal Simpson – Mr. Simpson welcomed two new Commission members, Mr. Ralph Curtis, a long-time rancher and farmer from the San Luis Valley and Manager <br /> of the Rio Grande Water Conservation District, and Mr. Frank Jaeger, Manager of the Parker Water and Sanitation District. Mr. Simpson thanked Marta Ahrens and Mr. Bob Plaska, Division <br /> Engineer for Division 6, for setting up the tours of the Hayden Power Plant and Carpenter Ranch, arrangements for the dinner, and the meeting. <br /> <br />Mr. Simpson stated that the Governor imposed an additional 4% restriction in the budget for the current fiscal year, in addition to the budget reductions from the previous year. The <br /> Division started the fiscal year about $1,400,000 under-funded, mostly in Personal Services which affects salaries, and has taken actions which include holding several positions vacant <br /> all year to offset the under-funding, but some important water commissioner positions will be filled. Additional reductions were taken in the Operating and Legal Services budget. <br /> <br />Mr. Simpson stated the rules were promulgated for the pilot water bank in the Arkansas River Basin and filed with the Water Court. There were no protests and the rules are in effect. <br /> The Southeastern Colorado Water Conservancy District has agreed to be the operator of the pilot water bank and are now developing some of the operating criteria of the water bank. <br /> This bank deals with only stored water in the Arkansas River Basin. <br /> <br />Mr. Simpson reported that in May, the amended rules for tributary ground water in the South Platte River Basin were filed. Those rules were challenged, and the process has started to <br /> determine which water judge will handle the case. The trial will take place early next year. The rules will primarily deal with large capacity wells constructed prior to 1972 that <br /> will be operating pursuant to the rules under a replacement plan that will be approved annually by the Division. <br /> <br />In the litigation regarding Kansas v. Colorado on the Arkansas River Basin, Mr. Simpson reported that the trial on the final phase began on June 24, 2002, and the recent testimony is <br /> regarding addressing compact compliance from 1997 forward. Presentations were completed to the Special Master showing that Colorado is in compliance with the compact. Two weeks were <br /> set aside in December to complete the trial. <br /> <br />Mr. Simpson reported that Colorado is dealing with an extraordinary drought. The Division has been tracking streamflows and comparing it with 1977, which, prior to this year, was the <br /> driest year of record. Streamflows are extremely low and most of the irrigation reservoirs will be dry or empty by the end of August. This year is indicating to be the driest year <br /> of record in all seven water divisions in the state, in some cases by 10% to 20%, and is also the third dry year in a row. Unless there is good snowpack this winter to refill the reservoirs, <br /> Colorado will face an extremely serious situation. In the plains, serious water level declines are being reported. In the Denver metro area, significant ground water exists in the <br />