On August 29, 2002 a COMPLAINT FOR DECLARATORY JUDGEMENT was filed by the City of Santa Fe and the Board of County Commissioners of the County of Santa Fe against Las Campanas Limited Partnership in the First Judicial District Court of New Mexico, County of Santa Fe (the Complaint is not presently available as a computer file).

Some assertions made by attorneys for Plaintiffs:

18. By virtue of relationship between PNM and Meadows, the Lease and the Management Agreement between PNM and Ranch Resort were not arm’s length transactions between independent parties. PNM owned and operated SDCW, and through ownership of Meadows, PNM also owned a substantial interest in Ranch Resort.

This writer made virtually the same assertion in an article posted on this web site on May 12, 2002 - An Alternative to Stage 4 Water Shortage Emergency -“The very validity of the water lease is also questionable since it was not an arms' length agreement, as it defensively claims, but an insider deal between two completely owned entities of PNM.”

Santa Fe City Council member Mathew Ortiz responded to this writer’s May 12 assertion by stating, “i can tell you, without violating executive session, that your assessment of the water delivery agreement with l.c. is misguided.”

27. The Lease and the Management Agreement entered into by PNM and its related partnership, Ranch Resort, constitute sham transactions. - - -

H. That Las Campanas has a contractual obligation under Section 9 (b) of the Lease to comply with and abide by the mandatory water use restrictions set forth in - - - the Emergency Water Regulations Ordinance [of the City of Santa Fe]

More to be posted.

William J. Salman