1 SUPERIOR COURT OF THE STATE OF CALIFORNIA 2 FOR THE COUNTY OF RIVERSIDE 3 --oOo-- 4 5 DIAMOND FARMING COMPANY, a ) CASE: RIC 353840 California corporation, and ) 6 WM. BOLTHOUSE FARMS, INC., ) a Michigan corporation, ) 7 ) Plaintiffs, ) 8 ) vs. ) 9 ) CITY OF LANCASTER, ANTELOPE ) 10 VALLEY WATER COMPANY, ) PALMDALE WATER DISTRICT, ) 11 PALM RANCH IRRIGATION ) DISTRICT, QUARTZ HILL WATER ) 12 DISTRICT, ROSAMOND COMMUNITY ) SERVICE DISTRICT, MOJAVE ) 13 PUBLIC UTILITY DISTRICT, ) DOES 1 THROUGH 200, INCLUSIVE,) 14 AND ALL PERSONS UNKNOWN, ) CLAIMING ANY LEGAL OR ) 15 EQUITABLE RIGHT, TITLE, ) ESTATE, LIEN, OR INTEREST IN ) 16 THE PROPERTY DESCRIBED IN THE ) COMPLAINT ADVERSE TO ) 17 PLAINTIFF'S TITLE, OR ANY ) CLOUD UPON PLAINTIFF'S TITLE ) 18 THERETO, ) ) 19 Defendants. ) ______________________________) 20 DEPOSITION OF: 21 SHERRY LEA DeLANO 22 TUESDAY, MARCH 6, 2002 23 1:32 P.M. 24 VOLUME 1 25 REPORTED BY: VIRGINIA L. BRANNON, CSR NO. 9846 1 OLVERA COURT REPORTING (661) 587-9040 1 Deposition of SHERRY LEA DeLANO, Volume 1, taken by 2 counsel for the Plaintiffs Wm. Bolthouse Farms, Inc., a 3 Michigan corporation, commencing at the hour of 1:32 4 p.m. on Tuesday, March 6, 2002, at the Park Plaza Hotel, 5 44916 10th Street West, Lancaster, California, before 6 Virginia L. Brannon, Certified Shorthand Reporter in and 7 for the State of California. 8 9 APPEARANCES 10 For the Plaintiff Wm. Bolthouse Farms, Inc., a Michigan corporation: 11 CLIFFORD & BROWN 12 BY: RICHARD G. ZIMMER Attorney at Law 13 1430 Truxtun Avenue, Suite 900 Bakersfield, California 93301-5230 14 (661) 322-6023 15 For the Plaintiff Diamond Farming Company, a California corporation: 16 LeBEAU, THELEN 17 BY: BOB H. JOYCE Attorney at Law 18 5001 East Commercenter Drive, Suite 300 Bakersfield, California 93389-2092 19 (661) 325-8962 20 For the Defendant Quartz Hill Water District and Palmdale Water District: 21 LAGERLOF, SENECAL, BRADLEY, 22 GOSNEY & KRUSE, LLP BY: THOMAS S. BUNN, III 23 Attorney at Law 301 North Lake Avenue, 10th Floor 24 Pasadena, California 91101-4108 (626) 793-9400 25 (No appearance.) 2 OLVERA COURT REPORTING (661) 587-9040 1 APPEARANCES (Continued): 2 3 For the Defendants L.A. County Waterworks District 37; L.A. County Waterworks District 40: 4 REDWINE AND SHERRILL 5 BY: STEVEN B. ABBOTT Attorney at Law 6 1950 Market Street Riverside, California 92501 7 (909) 684-2520 8 For the Defendant Rosamond Community Services District: 9 BEST, BEST, & KRIEGER 10 BY: JEFFREY V. DUNN Attorney at Law 11 3750 University Avenue, 400 Mission Square Riverside, California 92502 12 (909) 686-1450 13 14 15 16 17 18 19 20 21 22 23 24 25 3 OLVERA COURT REPORTING (661) 587-9040 1 I N D E X 2 WITNESS: SHERRY LEA DeLANO Volume 1 3 4 EXAMINATION PAGE 5 By Mr. Zimmer 05, 64 6 By Mr. Lockhart 46 7 By Mr. Abbott 64 8 9 E X H I B I T S 10 PLAINTIFFS' PAGE 11 1 Notice of Taking Deposition; 12 pages 11 12 2 Rosamond CSD Well Locations & Sampling 13 Points; 1 page 13 3 Table of Contents; 2 page 45 14 15 16 17 18 19 20 21 22 23 24 25 4 OLVERA COURT REPORTING (661) 587-9040 1 LANCASTER, CALIFORNIA, 2 TUESDAY, MARCH 6, 2002, 1:32 P.M. 3 4 SHERRY LEA DeLANO, 5 having been first duly sworn, was 6 examined and testified as follows: 7 8 EXAMINATION 9 BY MR. ZIMMER: 10 Q. Ma'am, could you state your name for us and 11 spell your last name, if you would. 12 A. Sherry L. DeLano. My last name is D-e, capital 13 L-a-n-o. 14 Q. And how do you spell your first name? 15 A. S-h-e-r-r-y. 16 Q. Ma'am, have you ever had your deposition taken 17 before? 18 A. Yes. 19 Q. About how many times? 20 A. I think it's been twice. 21 Q. With regard to what type of matter? 22 A. We were being sued over an assessment district 23 that we put together for Rosamond Community Services 24 District on a tender offer on the bonds. 25 Q. Okay. Anything else? 5 OLVERA COURT REPORTING (661) 587-9040 1 A. No. The other would have been in regard to 2 that as well. 3 Q. Okay. As you probably know, a deposition is of 4 the same effect as if you were giving this testimony in 5 a court of law. The only difference is that we are 6 seated in a conference room rather than seated in a 7 courtroom. The same oath and the same penalties of 8 perjury apply to testimony here today as it would if you 9 were giving the testimony in court. 10 The testimony that you give is being taken down 11 by the court reporter seated to my left, so that all the 12 questions and all the answers will be recorded. You at 13 a later time have the opportunity to review the 14 transcript and make any changes you wish to make in the 15 transcript at that time. 16 Out of fairness, it's better if you don't have 17 to make changes later because it may look like your 18 memory wasn't very good or it may look like you are 19 changing your testimony. And if it was about something 20 important, that might not reflect well upon you as a 21 witness because this testimony could be read in a trial 22 of this matter to the court just as if it was testimony 23 that was given in court. 24 Do you understand that? 25 A. Yes, I do. 6 OLVERA COURT REPORTING (661) 587-9040 1 Q. It's exceptionally important that you 2 understand the questions that I ask. Sometimes lawyers' 3 questions sound pretty idiotic and they go on for about 4 six pages before you ever get to the punch line. 5 So the important thing is twofold. No. 1, wait 6 until the question is finished before you begin 7 answering it. That does two things: It allows the 8 court reporter to write down one person at a time; the 9 second thing it does is it gives you a chance to listen 10 to the question, make sure that you completely 11 understand the question before you begin answering it. 12 And the reason that's so important is because if the 13 transcript is read later and it's simply a question and 14 an answer, and there is no indication that you did not 15 understand the question, it may very well appear that 16 you did understand the question and gave the response 17 that was intended. 18 Do you follow me? 19 A. Yes, I do. 20 Q. Do you have any questions before we get started 21 with the deposition? 22 A. No. 23 Q. Ma'am, how are you currently employed? 24 A. As manager for Rosamond Community Services 25 District. 7 OLVERA COURT REPORTING (661) 587-9040 1 Q. What kind of manager? 2 A. General manager. 3 Q. Rosamond Community? 4 A. Services District. 5 Q. What is your business address? 6 A. 2700 20th Street West, Rosamond, California, 7 93560. 8 Q. And how long have you been employed by 9 Rosamond? 10 A. 32 years. 11 Q. Have you been in that same capacity for that 12 entire period of time? 13 A. No. 14 Q. How have your responsibilities changed over 15 time? 16 A. I started as a secretary to the District and 17 went to secretary-treasurer and then became the manager 18 in 1994. 19 Q. GM starting in '94? 20 A. Yes. 21 Q. What are your duties as general manager? 22 A. I oversee the water operation, the wastewater 23 treatment plant operation, the office staff. We now do 24 Parks and Recreation, we are starting that and Graffiti 25 Abatement. 8 OLVERA COURT REPORTING (661) 587-9040 1 Q. They have a separate program for that? 2 A. For graffiti abatement? Yes, we do. 3 Q. That's unfortunate. 4 Ma'am, what is your educational background? 5 A. I have a high school diploma with some 6 additional college classes. 7 Q. Where were the college courses taken and in 8 what field of study? 9 A. At Antelope Valley Junior College. And some of 10 them were business; some of them were just general. 11 Q. Did you obtain a degree of any kind? 12 A. No, I didn't. 13 Q. Other than Antelope Valley Junior College, do 14 you have any other formal education from anywhere? 15 A. No. 16 Q. Have you attended any seminars, training 17 sessions, that sort of thing, that would be pertinent to 18 your duties as general manager? 19 A. Yes, I have a certificate from California 20 Special Districts Administration for their program. And 21 I have taken different seminars for other -- for 22 California Special Districts Association. 23 Q. What did those seminars in toto cover? 24 A. They cover all aspects of special districts, in 25 management and operations. 9 OLVERA COURT REPORTING (661) 587-9040 1 Q. Can you give me any idea what types of 2 employment you have had over the years since high 3 school. And I don't need a two-hour dissertation; I 4 just need just chronologically from year to year what 5 kind of different jobs you had. 6 A. I worked at Edwards Air Force Base. I worked 7 in the receiving section and I worked in the 8 administration section. And then I went to work for the 9 District in 1969, and I've been there since. 10 Q. 1969? 11 A. Yes. 12 Q. Have you ever been in the military service? 13 A. No. 14 Q. Ever convicted of a felony? 15 A. No. 16 Q. Ma'am, is -- 17 (Telephone interruption.) 18 MR. ZIMMER: Hold on. 19 I powered it off so it shouldn't be a problem. 20 Q. Okay. As part of the deposition process, 21 ma'am, we served a request for production along with a 22 deposition notice. And we talked while we were off the 23 record about the fact that you had seen that before. 24 We can attach as Exhibit 1 to the deposition a 25 copy of the deposition notice for identification 10 OLVERA COURT REPORTING (661) 587-9040 1 purposes. 2 (Plaintiffs' Exhibit 1 was marked for 3 identification by the court reporter.) 4 BY MR. ZIMMER: 5 Q. And, ma'am, have you brought certain documents 6 and things with you today responsive to the request for 7 production? 8 A. Yes, I did. 9 Q. And Mr. Dunn is handing you a accordion-style 10 file with various documents inside. I also see you have 11 another two hole-punch-style file with a brown cover. 12 Are these all of the documents that are 13 responsive to the request for production? 14 A. The accordion file are the only ones that I 15 brought. 16 MR. DUNN: Yes, the three-hole punch is just 17 the discovery clip from my office. 18 MR. ZIMMER: Oh. 19 MR. DUNN: You are welcome to look at it, but 20 it's not responsive. 21 MR. ZIMMER: Okay. The accordion file only, 22 then. 23 MR. DUNN: Right. 24 BY MR. ZIMMER: 25 Q. Can you tell us, ma'am, just generally 11 OLVERA COURT REPORTING (661) 587-9040 1 speaking, what you have contained in that file. Feel 2 free to look through it as you would like. 3 MR. DUNN: Sure. And you can also reference 4 the indexing provided for Mr. Zimmer this afternoon. 5 THE WITNESS: Okay. We provided a final draft 6 of Antelope Valley Resource Group's study that was done 7 in 1995. There was a hand-drawn map of our well 8 locations, our volume of water pumped from 1960 through 9 2000. There was a letter to the Department of Water 10 Resources that spells out and shows our water production 11 and our water purchased. There is Resolution 1992-18 12 that was a resolution that we adopted, our board of 13 directors adopted, to purchase surface water when and if 14 it was available, to whatever degree we could, to 15 protect the groundwater. 16 We have some water usage reports. It was our 17 water pumped versus our purchased water. There were 18 minutes -- or excerpts from our minutes for each time 19 that we went out to drill a new well. And there was one 20 contract for actually drilling one of our wells. 21 Other than that, that's all of the documents 22 that are in here. 23 Q. Let's start out with the location of the 24 district wells. You said you had a diagram that sets 25 forth the location of all of those wells. Could you get 12 OLVERA COURT REPORTING (661) 587-9040 1 that out and we will take a look at it. 2 A. Okay. 3 MR. ZIMMER: She's doing very well, Mr. Dunn. 4 MR. DUNN: So far, so good. 5 MR. ZIMMER: She doesn't volunteer any 6 information. She just answers the question. 7 Okay. What we have been doing -- let's mark 8 this as Exhibit 2 for identification. 9 (Plaintiffs' Exhibit 2 was marked for 10 identification by the court reporter.) 11 MR. ZIMMER: Is it okay to attach this copy or 12 do you need this back? 13 MR. DUNN: I don't need that back. That is 14 your copy or for purposes of this deposition this 15 afternoon. So if you want to use those as exhibits, 16 that's fine. I don't have any back-up copies, so we 17 have to work off whatever copy. 18 MR. ZIMMER: They have a copy machine out here, 19 so if we need to, we can do that. 20 MR. DUNN: Sure. 21 MR. ZIMMER: What we have been doing is marking 22 other people's properties on this diagram, which is 23 Exhibit 4 to Mr. Baxter's deposition from yesterday. So 24 maybe we can try that. 25 MR. DUNN: So we have separate exhibit numbers 13 OLVERA COURT REPORTING (661) 587-9040 1 for each deposition, then? 2 MR. ZIMMER: We have been so far. 3 MR. DUNN: Okay. 4 MR. ZIMMER: And we can consider at some point, 5 if we get documents we use over and over, starting a 6 trial binder -- 7 MR. DUNN: That's fine. 8 MR. ZIMMER: -- of common exhibits. 9 MR. DUNN: Sure. 10 MR. ZIMMER: Mr. Dunn, why don't you move those 11 files down that way. And to your right here. Thanks. 12 Q. Okay. So my next question to you, ma'am, is 13 whether you can locate on this diagram, and feel free to 14 refer to your diagram. 15 MR. DUNN: Yeah, and again, this diagram is 16 Exhibit? 17 MR. ZIMMER: This is Exhibit 4 to Mr. Baxter's 18 deposition. 19 I could probably -- 20 THE WITNESS: Okay. It's actually -- we are 21 down here. This is L.A. County line Rosamond. 22 MR. ZIMMER: No. 23 THE WITNESS: No, here's the Los Angeles County 24 line. Here is land in here. This is Fox Field. 25 MR. ZIMMER: Take your time. In fact, we can 14 OLVERA COURT REPORTING (661) 587-9040 1 go off the record while you are looking for that. 2 (Discussion off the record.) 3 BY MR. ZIMMER: 4 Q. Is it fair to say that your wells are generally 5 geographically in and around Rosamond? 6 A. Yes. 7 Q. And the diagram marked as Exhibit 2 consists of 8 areas both east and west of Highway 14? 9 A. Yes. 10 Q. You have indicated on your diagram various 11 circles, dark circles, are those meant to indicate 12 wells? 13 A. Part of them are wells and part of them are 14 water sampling points. Our wells are marked, each of 15 the wells, the well number. 16 Q. Let me go over here where I can see it a little 17 better. 18 A. I'm sorry. 19 Q. So this, where it says "Well No. 5" is an 20 actual well? 21 A. Yes, it's a well here, Well No. 6. 22 Q. And the rest of the dots are just water 23 sampling points? 24 A. Yes. 25 Q. So what this says over here, is that Well 15 OLVERA COURT REPORTING (661) 587-9040 1 No. 8? 2 A. No. Well No. 8 is over here. 3 Q. Okay. So all of the wells actually say the 4 word "well" -- 5 A. Yes. 6 Q. -- and then a number and then a -- or then a 7 number sign and then a number? 8 A. Yes. 9 Q. This is something else over here where it says 10 "MVB" or something like that? 11 A. Yes, I -- I don't know what that is. 12 Q. Okay. Other than the circles that say well 13 number such-and-such with an arrow to them, every dot on 14 the page is a water -- 15 A. Sampling point. 16 Q. Okay. And what is that, sampling to make sure 17 there is no, nothing in the water that should not be 18 there? 19 A. That's right. 20 Q. How many wells are there in the Rosamond 21 district? 22 A. We have five wells. One is a stand-by wall 23 well and four active. 24 Q. Okay. And the stand-by well, I take it, could 25 be active if you needed it? 16 OLVERA COURT REPORTING (661) 587-9040 1 A. Yes. 2 Q. What are the depths of the wells? 3 A. All of our wells are average about 250 feet of 4 depth, except Well No. 8, which is between 5- and 600 5 feet. 6 Q. All wells are 250 feet except No. 8? 7 A. That's right. 8 Q. And that one is? 9 A. Between 5- and 600 feet. 10 Q. What is the pump depth in those wells? 11 A. I'm sorry, I can't answer that for each one. 12 Q. Do you have any documents with you that you 13 would be able to tell that? 14 A. No, not with me. No. 15 Q. Okay. Do you have any estimate as to what the 16 pump depth is in the wells? 17 A. Most of the pump depths are probably within 50 18 feet of the bottom of the wells. 19 Q. Okay. Has the District ever had any other 20 wells in the district? 21 A. Yes, we have. 22 Q. And what other wells did the District have? 23 A. We had three other wells. 24 Q. Had those been abandoned? 25 A. Yes, they have. 17 OLVERA COURT REPORTING (661) 587-9040 1 Q. Are those identified on the diagram? 2 A. No. 3 Q. Would you be able to show us where those are or 4 were? 5 A. Approximately. Let's see, here's a little 4. 6 Well No. 1 is -- would have been right here on Center 7 Street. 8 MR. ZIMMER: Maybe you could -- let's see if I 9 have got a red pen over here. 10 MR. DUNN: I've got a green one. 11 MR. ZIMMER: You have got a green? 12 MR. LOCKHART: I've got a red. Do you want 13 red? 14 MR. DUNN: That's fine. 15 MR. ZIMMER: Yeah, red might show up a little 16 bit better than the black. 17 MR. LOCKHART: Your preference. 18 BY MR. ZIMMER: 19 Q. Here's a red pen, and if you would just take 20 that and make a little square box, little square box in 21 red for the abandoned wells. 22 A. Let's see. 23 MR. ZIMMER: Okay. She has now identified on 24 the diagram three red square boxes. 25 Q. Ma'am, in terms of those abandoned wells, do 18 OLVERA COURT REPORTING (661) 587-9040 1 you know what the depth of those wells was or is? 2 A. For Well No. 1 and 2, it probably was 3 approximately 250 feet. Well No. 3, I don't have any 4 data on that. That was abandoned many years -- many, 5 many years ago. 6 Q. So these are Wells 1, 2 and 3. 7 A. Yes. 8 Q. 1 and 2 are approximately? 9 A. About 250 feet. 10 Q. And Well No. 3, you don't know? 11 A. No. 12 Q. Are the rest of your wells numbered 13 consecutively? 14 A. Yes. 15 Q. From 4 to 8? 16 A. Yes. 17 Q. Do you know what the pump depths in the 18 abandoned wells were when they were operating? 19 A. No, I don't. 20 Q. And why were those wells abandoned? 21 A. Their production was not high enough to warrant 22 the cost to pump the water out of them. 23 Q. Do you know why the production was not high 24 enough? 25 A. No, I don't. 19 OLVERA COURT REPORTING (661) 587-9040 1 Q. Was there aging of those wells and corrosion 2 and failure of -- or deteriorating casings, that sort of 3 thing? 4 A. On two of them there was. No. 3, again, I 5 don't have any information on. 6 Q. Are there documents related to those wells on 7 file with the District? 8 A. Yes. 9 Q. What do you call those files? 10 A. Well No. 1 and Well No. 2 file. 11 Q. Are they two different files? 12 A. Yes. 13 Q. Would it be true that for each well that the 14 District operates, you would have a separate well file 15 for each well? 16 A. That's correct. 17 Q. And that would be a file containing all 18 information about the well from its initial drilling and 19 operation up until the time it was abandoned? 20 A. Yes, everything that has not been destroyed 21 through our records destruction, yes. 22 Q. Were you part of the District when Wells No. 1 23 and 2 were abandoned? 24 A. Yes. 25 Q. And were replacement wells drilled for those 20 OLVERA COURT REPORTING (661) 587-9040 1 two wells? 2 A. Other wells had already been drilled when those 3 wells were abandoned. 4 Q. Were the other wells drilled in anticipation of 5 abandoning those wells? 6 A. No. 7 Q. In other words, where you know that eventually 8 this thing is deteriorating and your production is going 9 down and you can see that you are going to need a new 10 well at some point, so you go ahead and drill some more 11 wells? 12 A. The usage in the District was going up. I 13 can't answer the question that you have asked because I 14 am not sure that was the reason they were drilled. 15 Q. Okay. What you are saying is the population in 16 the District was going up anyway, so additional wells 17 were being drilled anyway, so -- and you don't know 18 exactly to what extent the fact that these would be off 19 line at some point and had the decision of how many new 20 wells to add on. 21 A. That's right. 22 Q. Were there other wells that were drilled in 23 close proximity to the wells which were abandoned? 24 A. No. I mean, do you -- may I clarify that 25 question? Do you mean were they drilled on the same 21 OLVERA COURT REPORTING (661) 587-9040 1 sites? 2 Q. I don't know what you mean by "site," so that's 3 why I used "close proximity." 4 Let me see your diagram. 5 A. Okay. 6 Q. Okay. Well No. 6 is probably the closest well 7 to the abandoned wells. 8 A. No. 5, which is south on 20th Street, would be 9 the closest. Let me see down here. Right here. 10 Q. Oh, I see. Okay. Well 6 is over here. Okay. 11 So it's slightly closer than Well 6. 12 Was there is any reason that there was not new 13 wells drilled on the same sites, I guess, as you 14 described it, as 1 and 2? 15 A. I can't answer that for Well No. 3. But Well 16 No. 1 and Well No. 2 were on -- both in the town area 17 and on small lots. And the District chose not to reuse 18 those same places. 19 Q. So they just wanted to get them out of town? 20 A. Yes. 21 Q. Does the District pump any water that's not 22 sold or used by consumers in the District? 23 A. No. 24 Q. No water is shipped out? 25 A. No. 22 OLVERA COURT REPORTING (661) 587-9040 1 Q. Can you tell me, on an annual basis, let's say 2 calendar year 2001, what the total amount of water 3 pumped was? 4 A. I have that in my documents. We purchased and 5 pumped a total of 3200 acre feet. A little over 3200 6 acre feet. But I can't break it down exactly for you 7 unless I look at the paperwork. 8 Q. Why don't you go ahead and take a look at it. 9 A. Okay. 10 MR. DUNN: It's No. 3. 11 THE WITNESS: That was my first current year. 12 It doesn't have its total. 13 MR. DUNN: Is that for each month? 14 THE WITNESS: It's for each month. Let me go 15 back and see what I have. That's for '97. 16 I have it for 2000. I don't have the total for 17 2001. 18 MR. DUNN: Which is the monthly breakdown. 19 THE WITNESS: And I do have a monthly breakdown 20 for 2001. 21 BY MR. ZIMMER: 22 Q. Let's start with 2001. 23 A. And you asked, the question was how many acre 24 feet we pumped? 25 Q. In 2001, you said that 3200 acre feet were 23 OLVERA COURT REPORTING (661) 587-9040 1 pumped in 2001? 2 MR. DUNN: No. I think she said that there was 3 a combination of state water and groundwater totaling 4 3200 acre feet. 5 MR. ZIMMER: Okay. If that was the case, then 6 I misunderstood what you were saying. 7 THE WITNESS: That is correct. 8 BY MR. ZIMMER: 9 Q. I am just talking about pumped water. I'll 10 talk to you in a little while about state water. In 11 terms of pumped water -- 12 A. In the year 2000, we pumped 1,461 acre feet. 13 Q. 2001, pumped water, 1,461? 14 A. 2000. 15 Q. 2000, 461? 16 A. No. In the year 2000, we pumped 1,461 acre 17 feet. 18 Q. I was right the first time. 19 A. I'm sorry. 20 Q. Year 2000, you pumped 1,461 acre feet. 21 A. That's right. 22 Q. Okay. And in the year 2001, how many acre feet 23 did you pump? 24 MR. DUNN: She doesn't have a document with the 25 total annual figure, but she has documents for each 24 OLVERA COURT REPORTING (661) 587-9040 1 month in 2001. 2 MR. ZIMMER: Well, we can just take the numbers 3 and we can add them up pretty quick later. 4 Would you just read off, ma'am, the monthly 5 figures of pumped water for 2001. 6 MR. DUNN: January. 7 THE WITNESS: Okay. Starting with January, we 8 pumped 86. In February, we pumped 95. In March, we 9 pumped 84. April, 122. May, 207. In June, 282. July, 10 257. In August, 259. September, 257. October, 243. 11 November, 170. And December, 104. 12 MR. ZIMMER: Who has got the total? 13 MR. DUNN: What did you say the figure was for 14 March of 2001? 15 THE WITNESS: 84. 16 MR. DUNN: 84, okay. 17 MR. ZIMMER: It looks like 2146. 18 Oh, I thought you were adding up over there 19 too. 20 MR. DUNN: I'm trying to. 21 MR. ZIMMER: Oh. 22 Q. Okay. I came up with about 2,146. Does that 23 sound right or not? Maybe I added wrong. 24 A. Yes. 25 Q. It sounds about right? 25 OLVERA COURT REPORTING (661) 587-9040 1 A. Yes. 2 Q. So it was more than 2000. 3 A. Yes. 4 Q. More than the year 2000? 5 A. Yes. 6 Q. Okay. Well, I can add it up later; just assume 7 it was around there. 8 You mentioned something earlier, ma'am, about 9 ordering a certain amount of water through the state. 10 Something to the effect so you that wouldn't harm the 11 basin or hurt the water supply or something along those 12 lines. 13 MR. BUNN: No, she didn't say they ordered 14 water from the state so they wouldn't hurt the basin or 15 water supply; she said they just ordered water from the 16 state. 17 MR. ZIMMER: She said something else, to 18 preserve the water supply or something else. 19 Q. What were your words, ma'am? 20 A. To maintain the groundwater in the years that 21 we can. 22 Q. Okay. What does that mean to maintain the 23 groundwater? 24 A. In drought years, we take water in the years 25 that the state has water available, and we have that 26 OLVERA COURT REPORTING (661) 587-9040 1 water, we feel, to pump in the years that it's dry and 2 they don't have the water available for us. 3 Q. And your reason to do that is so that you 4 preserve the groundwater? 5 A. That's correct. 6 Q. What is that based upon in terms of making that 7 decision how much water to get from the state? 8 A. It's based each year on the amount of water 9 that the state has available for us to take. It's based 10 on the cost of that water and what our production is or 11 what we need. 12 Q. You looked at -- when you say you are trying to 13 preserve the groundwater, do you actually measure how 14 much groundwater is available or do you look at how much 15 you are pumping and determining, determine whether your 16 standing water level is going down or -- or do you look 17 at those things at all or do you just look at how much 18 is available from the state and how much it costs? 19 A. We mainly look at how much is available from 20 the state and what it costs. 21 Q. Has the District, to your knowledge as general 22 manager and based upon the records at the District, ever 23 taken any kind of action to impair or prevent pumping of 24 groundwater or use of groundwater by any other person or 25 entity in the Antelope Valley? 27 OLVERA COURT REPORTING (661) 587-9040 1 A. Yes. 2 Q. What have you done? 3 A. At one time we did take action against Antelope 4 Valley East Kern Water Agency for pumping groundwater 5 during a drought year to supply to their customers or 6 buying, actually not pumping -- let me correct that -- 7 for buying water from farmers to sell to AVEK for them 8 to sell to their customers. 9 Q. Other than on that occasion, has the District, 10 to your knowledge based upon your knowledge as GM or 11 based on the records, has the District ever taken any 12 action to impair or prevent any person or entity in the 13 Antelope Valley from pumping or using groundwater? 14 MR. DUNN: Vague as to the term "action." 15 You can go ahead and answer the question. 16 THE WITNESS: On occasion, any property owners 17 that are within our District and could take water from 18 our services, we have requested that the county not give 19 them a permit to drill a well. That's the only other 20 time. 21 BY MR. ZIMMER: 22 Q. Ma'am, when I say "any action," I'm talking 23 about any action in law -- 24 A. No. 25 Q. -- any action just in terms of physical 28 OLVERA COURT REPORTING (661) 587-9040 1 action -- 2 A. No. 3 Q. -- in my statement. 4 Okay. You mentioned that the District has 5 taken some action to prevent some person or entity from 6 using groundwater. And one of those occasions was with 7 regard to the Antelope Valley Kern Valley Water Agency? 8 A. Antelope Valley East Kern Water Agency, yes. 9 Q. East Kern Water Agency. 10 And what was the action specifically that was 11 taken there? 12 A. We did file a lawsuit against them to stop them 13 from purchasing water from the farmers to supply to 14 their customers when they did not have money -- water 15 from the state. 16 Q. To stop them from providing water to who? 17 A. To their customers. 18 Q. And who were their customers? 19 A. Their customers would be water purveyors such 20 as myself, I think the City of Lancaster, perhaps the 21 City of Palmdale. 22 Q. What -- when was that lawsuit filed? 23 A. I can't tell you the year. It's been several 24 years ago. 25 Q. Can you give me an estimate. Was it after '95 29 OLVERA COURT REPORTING (661) 587-9040 1 and before the current time? 2 A. It was probably before '95. 3 Q. Can you given me an estimate, maybe '93, '94 or 4 '92? 5 A. I believe we had some drought years in the late 6 '80s, early '90s. I'm sorry, I cannot tell you a time. 7 Q. Sometime in the early '90s, would that be 8 fair -- 9 A. Yes. 10 Q. One thing I forgot to tell you: Make sure you 11 let me finish the question before you start. I know you 12 anticipate and probably are correct for most of the 13 time, but it makes it difficult for the court reporter 14 to make an accurate record. 15 What was the result of that action? 16 A. They did stop purchasing water from the 17 farmers. 18 Q. AVEK stopped purchasing water from the farmers? 19 A. That's right. 20 Q. Was that by judicial decree or was that by some 21 kind of settlement? 22 A. I believe it was by a settlement. 23 Q. And why was the District trying to stop that? 24 A. The District's feeling was that Antelope Valley 25 East Kern Water Agency's job was to bring state water 30 OLVERA COURT REPORTING (661) 587-9040 1 into the Valley to sell to their customers. Not to get 2 water from the Valley itself to sell to their customers. 3 Q. And thereafter, did AVEK begin doing that, 4 bringing water in from outside sources? 5 A. They had been doing that right along and they 6 continued to do it. 7 Q. They just stop taking it from the Valley? 8 A. They stopped buying it from other people. 9 Q. And the second action you indicated that the 10 District has taken in regard to trying to prepare and 11 prevent some other person or entity from pumping or 12 using water was to deny well permits in the District? 13 A. Yes. 14 Q. And we have now covered all of the District's 15 actions in that regard? 16 A. Yes. 17 Q. Are you aware of any time period when the 18 District impaired any other person or entity's ability 19 to pump or use groundwater, other than the action you 20 took with AVEK and the wells, denying well permits? 21 A. No. 22 Q. For what period of time has the District been 23 obtaining water from AVEK or any other state agency or 24 any other source, other than or in addition to pumping 25 groundwater? 31 OLVERA COURT REPORTING (661) 587-9040 1 A. We signed a contract with AVEK in the 19 -- in 2 the 1970s. We have purchased water from them off and on 3 since that time. 4 Q. Has there ever been any source of groundwater 5 for the District, apart from pumping and from AVEK? 6 A. No. 7 Q. And how does it work in terms of requesting 8 water from AVEK? 9 A. Each year we fill out an application with them 10 to -- based on the water that we would like to purchase 11 from them. If they have the water available, then we 12 are able to purchase it. 13 Q. Can you apply for as much water as you want? 14 A. We have never been denied the amount of water 15 that we have requested, other than in drought years. 16 Q. What years were those? 17 A. It was last year, 2001. This year, it appears 18 it will be the same thing again. And during the period 19 that they were pumping or buying water from the farmers, 20 they did not have water to sell to all of their 21 customers or the total allotment to all of their 22 customers. 23 Q. But did you get all of the water that you 24 requested in every year that you requested it since the 25 1970s, with the exception of the year 2001? 32 OLVERA COURT REPORTING (661) 587-9040 1 A. Yes. 2 Q. Did you always ask for the same amount? 3 A. No. Each year we did -- usually asked for a 4 percentage more. 5 Q. Because of your increased population? 6 A. That's right. 7 Q. Was there some formula for figuring that out, 8 how much additional percentage you would ask for from 9 AVEK because of your increased population? 10 A. I didn't do that calculation, so I can't answer 11 that. 12 Q. Do you have any knowledge as to how that 13 calculation is done? 14 A. No. At this time, no, we -- 15 Q. And how much water did you ask for from AVEK in 16 the year 2001? 17 A. It was -- I'm not sure. We received 18 900-and-some acre feet from them. 19 Q. Received 907 acre feet? 20 A. Some -- 900-plus acre feet. 21 Q. Do you have anything with you that would tell 22 you the acre footage requested in 2001? 23 A. No. 24 Q. Has there ever been a year when the District 25 was unable to provide water to its customers as used? 33 OLVERA COURT REPORTING (661) 587-9040 1 In other words, was there ever a time when you couldn't 2 service all of your customers with the amount of water 3 they were taking? 4 A. Both the pumped and the purchased? 5 Q. That's correct. 6 A. No, there hasn't been a year that we haven't 7 been able to supply our customers. 8 Q. Has there ever been a year when you were unable 9 to provide your customers with the amount of water that 10 they were using based solely upon pumped groundwater, or 11 was that simply not tested because you had always asked 12 for state water? 13 MR. DUNN: Is your question was there any year 14 that they could not supply their customers with just 15 groundwater? 16 MR. ZIMMER: Right. 17 Q. Or was that not tested because you always 18 requested the state water? 19 A. It's not been tested. 20 Q. Is there some policy of allowing your pumps to 21 rest, so to speak, in the thought processes of obtaining 22 AVEK water? 23 A. One of the reasons that we obtain AVEK water 24 is, when it's available, is so that we can rest our 25 pumps. On the years that they are -- that they don't 34 OLVERA COURT REPORTING (661) 587-9040 1 have enough water to sell us, then we run our pumps all 2 the time. 3 Q. But you generally feel like it's an advantage 4 to be able to get AVEK water and let the pumps rest -- 5 A. Yes. 6 Q. -- so to speak? 7 A. Yes. 8 Q. And that's because the areas in and around the 9 pumps have some decrease in standing water level because 10 of the cone of depression around the pumps? 11 A. I can't really answer that question. I could 12 speculate on that question. 13 MR. DUNN: Don't speculate. 14 BY MR. ZIMMER: 15 Q. Don't speculate. But have you heard it 16 discussed? Have you heard the issue discussed in the 17 District? 18 A. That's not why we don't run our pumps all the 19 time. 20 Q. Okay. And why is it you don't run them all the 21 time? 22 A. Because we purchased Antelope Valley East Kern 23 Water Agency water. 24 Q. Okay. Why would you purchase it rather than 25 pump it? 35 OLVERA COURT REPORTING (661) 587-9040 1 A. We purchase it to leave water in the ground for 2 drought years. Plus, it also gives us time to work on 3 our pumps and let them rest and they are not running 24 4 hours a day, 365 days a year. 5 Q. So it decreases the number of pumps you need to 6 service your client base, and building new wells would 7 cost a fair amount of money to do? 8 A. Would you -- 9 MR. DUNN: Objection. That mischaracterizes 10 her testimony. 11 THE WITNESS: Would you repeat that again for 12 me. 13 BY MR. ZIMMER: 14 Q. Well, you're saying it rests your pumps and 15 doesn't run them 24 hours a day, right? 16 A. Yes. 17 Q. And you could, in theory, have more pumps and 18 you would run them less, correct? 19 MR. DUNN: Objection. Calls for speculation. 20 You can go ahead and answer. 21 THE WITNESS: I can't answer that question. 22 BY MR. ZIMMER: 23 Q. Well, in other words, if you had five pumps and 24 you ran them 100 percent of the time, if you had 10 25 pumps and you ran them 50 percent of the time, you could 36 OLVERA COURT REPORTING (661) 587-9040 1 produce the same amount of water, all other things being 2 equal, with 10 pumps as you could with five. 3 MR. BUNN: Objection. Incomplete hypothetical. 4 Calls for speculation. 5 If you can answer the question. Do you 6 understand the question? 7 THE WITNESS: Yes, I do understand it. 8 Hypothetically, yes, we could do that. 9 BY MR. ZIMMER: 10 Q. So one of the bases for the decision to get 11 AVEK water is so you don't have to build additional 12 pumps and balancing off, not running your pumps more 13 than you want to? In other words, by purchasing AVEK 14 water, you don't have to run your pumps as often and you 15 can still get the same amount of water? 16 A. Yes. 17 Q. Has there ever been a time when there was any 18 change in the standing water levels in your wells? 19 A. Yes. 20 Q. And does that occur on and off over the years? 21 A. Yes. 22 Q. And does that occur when you are -- when you 23 are having troubles with your pumps in terms of the 24 deterioration, getting older? 25 A. No. 37 OLVERA COURT REPORTING (661) 587-9040 1 Q. Has the District ever had a situation where 2 because of the deterioration of the casing and/or the 3 hardware and the well, that the water -- was not 4 allowing the water enough penetration into the well to 5 keep up with production that you felt was acceptable 6 going out the other side of the pump? 7 A. Have we ever had that condition -- 8 Q. Yes. 9 A. -- with some of our wells? Yes. 10 Q. And has that been -- how was that rectified? 11 A. On two of our wells, we cleaned them, did some 12 blasting in them to clean the preparations on the 13 casings. 14 Q. And that increased the production somewhat? 15 A. Yes. 16 Q. Did it increase it all the way back to the same 17 standing water level that you had previously? 18 A. I can't answer that. 19 Q. It was close enough that it made it worthwhile 20 to keep running the pump? 21 A. We did run the wells for -- for another, a few 22 years, yes. 23 Q. And then were those wells ultimately abandoned? 24 A. Those two were, yes. 25 Q. Was that 1 and 2? 38 OLVERA COURT REPORTING (661) 587-9040 1 A. Yes. 2 Q. Other than Wells 1 and 2, has there ever been 3 any change in the standing water levels in the wells? 4 A. Yes. 5 Q. In which wells? 6 A. In all of our wells, and most of the time that 7 has come up. 8 Q. I'm sorry. "In all of our wells"? 9 A. In most of the wells, the level has increased, 10 come closer to the surface, than gone down. 11 Q. So most of your wells, the standing water level 12 has raised rather than gone down? 13 A. Yes. 14 Q. Has the District ever done any studies to 15 figure out why that is? 16 A. No. 17 Q. Or it just wasn't concerned about it? 18 A. No, we have not done any studies. 19 Q. Okay. And is that because it's not a problem? 20 A. It's not a problem. 21 Q. So other than Wells 1 and 2, the standing water 22 levels have increased over time rather than decreased? 23 A. Most of them, yes -- well, yes. 24 Q. Have any of the other wells, other than 1 and 25 2, had their standing water levels decreased over time 39 OLVERA COURT REPORTING (661) 587-9040 1 rather than increased? 2 A. Yes. 3 And may I clarify that question that you asked 4 before? 5 Q. Sure. 6 A. They have been -- the standing water level has 7 increased. In the last couple of years we have started 8 seeing some decrease in the standing water levels. It 9 hasn't continued to rise. 10 Q. In which wells? 11 A. I don't have that information. I would have to 12 get it for you. 13 Q. You don't have that information with you today? 14 A. No, I don't. 15 Q. But all of the wells, in all of the wells that 16 are currently operating, the standing water level is 17 greater than it was previously, even though it's 18 decreased somewhat over the past couple of years? 19 A. You know, I would have to look at that. I 20 can't tell you off the top of my head. 21 Q. Has the District ever engaged in any program of 22 banking water or any program to recharge the basin? 23 A. No. 24 Q. Has that been studied at all or are there any 25 plans to do that in the future? 40 OLVERA COURT REPORTING (661) 587-9040 1 A. We have talked about it. We have looked at 2 Lancaster's recharge that they are doing. We have 3 discussed it, but we haven't made any decision to do it. 4 Q. Has the District ever done any analysis of any 5 kind to determine whether the basin was in overdraft? 6 A. No. 7 Q. Do you have any knowledge of what the term 8 "overdraft" means? 9 A. Yes. 10 Q. And what does that mean to you? 11 A. It means that there's not enough water 12 recharging to keep the levels that they -- the current 13 level or a safe level to keep subsidence from happening. 14 Q. And I assume the reason for the fact that the 15 District has not done any study on that is because, 16 generally speaking, your standing water levels are 17 higher rather than lower? 18 A. Yes. 19 Q. And I take it that since the District has not 20 done any analysis of that, you on behalf of the District 21 could not say whether the basin was in overdraft or 22 wasn't in any given period of time in the past? 23 A. I could not say it is or isn't. 24 Q. Is my statement correct? 25 A. Yes. 41 OLVERA COURT REPORTING (661) 587-9040 1 Q. Does the District currently plan to construct 2 any new wells or is it in the process of constructing 3 any new wells? 4 A. The District is looking at constructing one 5 additional well. 6 Q. In what phase is that currently? 7 A. Right now we are looking at different locations 8 to try and determine a location that would be 9 acceptable. 10 Q. Is that project in the permitting process 11 currently? 12 A. No. 13 Q. What has been the population increase over the 14 past 10 years in the District? 15 A. In the last 10 years, we probably -- I was 16 trying to think. It's probably been 5- or 6,000 people. 17 Q. From what to what? 18 A. It's at about 15,000 now. It was at around, I 19 think, less than 10,000 before. 20 Q. And then do you know what the figures are over 21 the past 20 years? In other words, 20 years ago, do you 22 know what the population was? 23 A. No, I don't. 24 Q. How about 15 years ago? 25 A. No. 42 OLVERA COURT REPORTING (661) 587-9040 1 Q. Has the District ever had to go through a 2 permitting process to obtain authorization to drill a 3 well? 4 A. Yes. 5 Q. Has that been done in the past on the basis of 6 negative declarations or EIRs or -- 7 A. Yes. 8 Q. -- or how was that done? 9 A. We have normally had, and I think all of our 10 wells have a negative declaration declared. 11 Q. And what was the last well that was constructed 12 where there was a negative declaration? 13 A. Our Well No. 8. 14 Q. And I take it that there was a negative 15 declaration that drilling the well or using the well 16 would not have any adverse effect on the environment? 17 A. That's correct. 18 Q. And would all of that information regarding 19 that negative declaration be in that well file? 20 A. It should be. 21 Q. Were all of the other wells done by negative 22 declaration also? 23 A. I can't answer that. I would have to go and 24 research it. 25 Q. Which was the last well before that that was 43 OLVERA COURT REPORTING (661) 587-9040 1 put into service? 2 A. No. 7. 3 Q. 6, 5, 4? 4 A. And No. 6, 5, right. 5 Q. Do you know if No. 7 had a negative dec on 6 that? 7 A. No. 8 Q. What about 6? 9 A. No. 10 Q. Do you know on any of the other ones whether 11 they were based on negative declarations? 12 A. No. No. 5 was drilled in 1969. I don't know 13 if it was required. 14 Q. Do you know when number -- Well No. 3 was 15 drilled? That was the old one. No. 4? 16 A. No. 17 Q. How about No. 5? 18 A. No. 5 was in 1969. 19 Q. 6? 20 A. No, but I can tell you if you want to. 21 Q. Sure. 22 While you're looking for that, maybe we could 23 just make a copy of the Table of Contents and attach it 24 as an exhibit. 25 I'm going to let you guys keep all your 44 OLVERA COURT REPORTING (661) 587-9040 1 documents today. 2 MR. DUNN: Yeah, there is a Table of Contents 3 that she produced for you. 4 MR. ZIMMER: Well, maybe we could just attach 5 that as an exhibit and you guys can keep the documents 6 right now. 7 (Plaintiffs' Exhibit 3 was marked for 8 identification by the court reporter.) 9 MR. DUNN: Okay. What about the documents that 10 are marked as exhibits. And we will keep the rest of 11 the documents except what has been marked. 12 MR. ZIMMER: Yeah, you guys can keep the rest 13 of the documents and we will just reproduce them at the 14 next deposition. 15 MR. DUNN: Okay. 16 MR. ZIMMER: There may be more that we need at 17 the next deposition. 18 MR. DUNN: Just let me know. 19 MR. ZIMMER: On all of these it's been kind of 20 the case there has been a lot of stuff that has been 21 brought but... 22 THE WITNESS: Okay. Are you ready? 23 MR. ZIMMER: Yes, ma'am. 24 THE WITNESS: No. 6 was drilled in 1984, No. 7 25 in 1987, and No. 8 in 1992 or early 1993. 45 OLVERA COURT REPORTING (661) 587-9040 1 MR. ZIMMER: I think I'm going to let 2 Mr. Lockhart ask some questions and... 3 MR. DUNN: Why don't we take a break. We've 4 been going about an hour. 5 MR. ZIMMER: That's fine. 6 (Recess.) 7 MR. LOCKHART: On the record. 8 9 EXAMINATION 10 BY MR. LOCKHART: 11 Q. Good afternoon, Miss DeLano. My name is Kerry 12 Lockhart, and I do represent Diamond Farming, another 13 one of the plaintiffs in this matter. 14 I want to start out, first of all, with some 15 follow-up questions. 16 (Telephone interruption.) 17 MR. LOCKHART: Can I take a break for just real 18 quick? 19 MR. ZIMMER: Yeah. 20 MR. DUNN: Off the record. 21 (Recess.) 22 MR. LOCKHART: Back on the record. 23 Q. Earlier you testified about the fact that 24 presently there were five wells in production, one in 25 stand-by and four active. 46 OLVERA COURT REPORTING (661) 587-9040 1 Which well is currently in stand-by? 2 A. Well No. 4. 3 Q. And so the other four active would be 5, 6, 7 4 and 8? 5 A. Yes. 6 Q. And is that something that's cyclic, you rotate 7 which well is in stand-by, or how is that determined? 8 A. No. 9 Q. Okay. 10 A. That's determined Well No. 4 is in stand-by 11 because it produces very little water. And it's costly 12 to produce -- you know, to pump it and produce that 13 small amount of water. 14 Q. Okay. And how -- when did it go into a 15 stand-by status? 16 A. I can't give you an exact date. But it's been 17 in stand-by probably two or three years. 18 Q. And the four active wells, have they been 19 active constantly since they were drilled? 20 A. Do you mean have they been run 24 hours a day 21 or just that they have been active since they were 22 drilled? 23 Q. The latter. 24 A. Yes, they have been active since they were 25 drilled. 47 OLVERA COURT REPORTING (661) 587-9040 1 Q. Okay. Do you know when Well No. 1, 2 and 3 2 were abandoned? 3 A. No. 4 Q. Do you have any estimate of when -- 5 A. No. 6 Q. Okay. Do you have any estimate or any 7 knowledge as to the cost for pumped versus purchased 8 water in the District? 9 MR. DUNN: You mean on an acre-foot basis? 10 BY MR. LOCKHART: 11 Q. Or whatever quantity basis you can quantify it. 12 Presumably acre-foot basis is the way it's purchased? 13 A. I can't tell you exact figures for our pumped 14 water. For our purchased water, it's $170 per acre 15 foot, and I know it's less expensive for us to pump. 16 And our acre-foot cost this year has risen to 17 $250 as of January. 18 Q. So the 170 per acre foot to purchase, how long 19 of a period of time in the past was that applicable to? 20 A. I can't tell you exactly. 21 Q. An estimate? 22 A. Probably two years. 23 Q. Okay. And it has now risen to 250 per acre 24 foot, is that what you stated? 25 A. Yes. 48 OLVERA COURT REPORTING (661) 587-9040 1 Q. Earlier you testified, I believe, that the 2 total purchased and pumped acre footage for 2001 was 3 3200, correct? 4 A. Yes. 5 Q. And then you later testified by month 6 breakdown, and Mr. Zimmer, I believe, stated that was 7 2146. You then stated that you received 900-plus acre 8 feet in 2001. 9 Is it accurate to say that the 30- -- is the 10 3200 an actual number or is that a round number? 11 A. That's a round number. 12 Q. Okay. So we can't get any closer to the exact 13 number as to 900 and how many acre feet in 2001 were 14 purchased by looking at those two sums, can we? In 15 other words, we can't subtract the 2146 that was pumped 16 from 3200 and arrive at 954 and know that's the exact 17 number. 18 A. Yes. We can. 19 Q. Okay. 20 A. As long as the 2100 that he added up is 21 correct. 22 Q. Okay. 23 MR. ZIMMER: That's a big assumption. 24 BY MR. LOCKHART: 25 Q. All right. Does the District, I assume, 49 OLVERA COURT REPORTING (661) 587-9040 1 maintains records on water that it purchases each year? 2 A. Yes. 3 Q. And are those part of the records that were 4 produced today? 5 A. Yes. 6 Q. Okay. I don't want to go all the way into that 7 area just now. But I just wanted to check to make sure 8 you had those documents. 9 You had mentioned earlier in your testimony, 10 one of the times when the District has taken action in 11 the past, I believe you stated it was on occasion the 12 District had asked the County to deny well permits to 13 those in the District that were seeking well permits on 14 the basis that they should be receiving the water from 15 the District. Is that a correct characterization of 16 what you stated, first of all? 17 A. Yes. 18 Q. Okay. On how many occasions, if you know, has 19 that been done? 20 A. Probably two. 21 Q. And do you know approximately when those two 22 occasions happened? 23 A. No. 24 Q. Any estimate? 25 A. No. 50 OLVERA COURT REPORTING (661) 587-9040 1 Q. Any memory as to who the people were that 2 wanted to drill the wells? 3 A. No. 4 Q. Do you have any memory or knowledge as to any 5 other details, other than the fact that on two occasions 6 people have been denied permits? 7 A. When a person is denied a permit, they come 8 to -- they normally come to the District. They go to 9 the County and ask for a permit. The County tells them 10 they have to come to us and request permission to drill 11 a well within our District. 12 If they are within so many feet or the cost is 13 similar to drill a well or connect to our lines that are 14 available, then normally our board will deny their 15 request to drill a well. 16 Q. Okay. So those two occasions, the County 17 actually sent the people to the District, and the 18 District was the one that actually did the denial? 19 A. For the variance to drill a well, yes. 20 Q. Okay. So presumably on both occasions either 21 the cost was similar or they were too close to your 22 existing wells; is that correct? 23 A. Not to our existing wells. They were close 24 enough to our existing lines -- 25 Q. Okay. 51 OLVERA COURT REPORTING (661) 587-9040 1 A. -- to connect. 2 Q. Okay. 3 MR. ZIMMER: I'm sorry, I misunderstood. If 4 the well permits were denied because the wells were too 5 close to the existing lines, so all they had to do was 6 connect? 7 THE WITNESS: Because the cost was equal or 8 less to connect to our lines that we had available to 9 them. 10 MR. ZIMMER: As it would be to drill a well? 11 THE WITNESS: Yes. 12 BY MR. LOCKHART: 13 Q. Do you know when the District was formed? 14 A. It was formed in 1966. 15 Q. And that was three years prior to the beginning 16 of your employment by the District? 17 A. Yes. 18 Q. Do you have any other knowledge regarding the 19 formation of the District, as, for example, how it was 20 formed? 21 A. It was formed under the State of California 22 Special Districts. I think it's Section 61,000 of the 23 California Code. 24 Q. And do you know what the original purpose of 25 the District was in its formation? 52 OLVERA COURT REPORTING (661) 587-9040 1 A. It was to serve portable water and water for 2 fire protection, collect wastewater, and provide 3 streetlighting. 4 Q. Has the purpose of the District since its 5 formation changed in any way? 6 A. About three years ago, we were given the power 7 to provide Parks and Recreation and Graffiti Abatement. 8 Q. Do you know the approximate size of the 9 District as far as acreage is concerned? 10 A. No. Not off of the top of my head, no. 11 Q. Okay. Any estimation? 12 A. Let's see: Let me think. It's approximately 13 seven miles by seven miles. I don't know if there are 14 640 acres in a square mile in a section. 15 Q. Okay. 16 A. But you will have to do the further 17 calculation. 18 Q. So approximately seven miles by seven miles? 19 A. Yes. 20 MR. DUNN: We'll let Mr. Zimmer do it. 21 MR. ZIMMER: Yeah. No thanks. You got the 22 extent of my mathematical talent. 23 BY MR. LOCKHART: 24 Q. Have there been any post-formation annexations 25 into the District since the formation in 1966? 53 OLVERA COURT REPORTING (661) 587-9040 1 A. Yes. 2 Q. When were those post-formation annexations? 3 A. They have continued -- we have had 21 4 annexations since the District was formed originally. 5 Q. Do you know the dates of those or approximate 6 dates of those? 7 A. No, the first one was done probably the fifth 8 or sixth year the District was in operation. And the 9 last one was done in 1992. 10 Q. So the first one, approximately 1971 or '72? 11 A. Yes. 12 Q. And the last one, I'm sorry, was when? 13 A. 1992. 14 Q. Are there any additional annexations 15 contemplated or in the works at this moment? 16 A. Not that I'm aware of. 17 Q. Okay. When those post-formation annexations 18 took place, are you familiar with whether or not there 19 were any negative declarations or EIRs done? 20 A. For the last one, there was. I can't tell you 21 about the others. 22 Q. And when you say "the last one there was," are 23 you saying there was a negative declaration done or any 24 EIR done? 25 A. I'm not sure. 54 OLVERA COURT REPORTING (661) 587-9040 1 Q. You know it was one or the other? 2 A. Yes. 3 Q. Okay. Now, is there a file that one could go 4 to to find this information on all of these 21 5 annexations? 6 A. Yes. 7 Q. Are they separately maintained files -- 8 A. Yes, they -- 9 Q. -- or are they -- I'm sorry? 10 A. Yes. 11 Q. And how are these files labeled? 12 A. With the annexation number. 13 Q. And if there were negative declarations done or 14 EIRs done, with respect to each of these 21 annexations, 15 we would expect to find them in those files; is that 16 correct? 17 A. Yes. 18 Q. Do you know where those files are maintained? 19 A. Yes. 20 Q. Is that part of your responsibility to oversee 21 the management or maintenance of those files, as the 22 general manager of the District? 23 A. Yes. 24 Q. Okay. What role, if any, did you play in the 25 last annexation in 1992? 55 OLVERA COURT REPORTING (661) 587-9040 1 A. I was the secretary/treasurer to the board of 2 directors at that time and to the District. So I -- the 3 only part I played was to make sure the documentation 4 was signed and in place. 5 Q. Okay. What -- can you tell me what the process 6 is when the District is considering annexing additional 7 land into the District? 8 A. This annexation was done in conjunction with an 9 assessment district. And an area was determined that 10 would be in that assessment district. And anything at 11 that time that was not already within our district, we 12 started the process of annexation of notification to the 13 people in the area. And hearings that we required. I 14 believe on all of the other annexations that we did, it 15 was people coming to us and requesting that their 16 property be annexed. 17 Q. So that they could have a cheap water source? 18 A. So that they could have a water source. I 19 don't know if the reason was because they needed a cheap 20 water source. 21 Q. Okay. Was this for a new subdivision or 22 something that was built, this last annexation? 23 A. The last one. It was because developers had 24 come to us and requested that if a structure be put in 25 to -- for developments, yes. 56 OLVERA COURT REPORTING (661) 587-9040 1 Q. Okay. So in other words, the developer, in 2 order to get his subdivision or her subdivision 3 approved, wanted to get this annexation in the works; is 4 that correct? 5 A. I don't know that they would have needed to 6 annex them to our district to get the County's approval, 7 and the County is the one that approves the 8 developments. 9 They wanted to be annexed into our district to 10 be able to extend our water system to their 11 developments. 12 Q. Okay. Do you know whether or not there was 13 another water source available to them had they not 14 annexed into the District? 15 A. As far as I know, they would have had to 16 drilled wells for themselves. 17 Q. Okay. Were they located in an area that this 18 would have been a third instance where your District 19 would have tried to take an action to stop them from 20 getting those well permits? 21 A. I don't know. There -- they were located close 22 to our district. I don't know that we would have 23 started any kind of process to stop them. 24 Q. Okay. Other than this last annexation that we 25 have been discussing, do you know what the general 57 OLVERA COURT REPORTING (661) 587-9040 1 process was for the past annexations, the other 20? 2 A. The person that wanted to annex would come to 3 the District and file an application to do an 4 annexation. Then we processed the paperwork through 5 LAFCO and got state approval for the annexation to go 6 forth. If LAFCO approved it, and the people paid their 7 annexation fees to the District, then it was eventually 8 approved. 9 Q. And what is LAFCO? 10 A. Local Agency Formation Commission. 11 Q. Okay. And so the other 20, all of them were 12 people coming to you asking to be annexed? 13 A. Yes. 14 Q. Okay. Were these individuals or were these 15 companies or was it a mix? 16 A. I believe most of them were individuals. I 17 can't remember if there were any companies that came to 18 us. 19 Q. And so these were for residential purposes, to 20 the best of your knowledge? 21 A. Yes. 22 Q. Do you know what the original district area 23 was, approximately? 24 A. Yes, it was four square miles. 25 Q. Okay. And earlier you said the current 58 OLVERA COURT REPORTING (661) 587-9040 1 estimated size of the District is seven miles by seven 2 miles. So if we wanted to compare that, we were looking 3 at 49 square miles versus four square miles, correct? 4 A. Yes. 5 Q. I believe you testified earlier that you could 6 not say one way or another whether the District had ever 7 been in overdraft; is that correct? 8 A. Yes. 9 Q. Do you have knowledge if there has ever been an 10 occasion when the District has undertaken affirmative 11 steps to put landowners within the District on notice 12 that you may be taking water underlying their land? 13 MR. DUNN: Objection. To the extent it assumes 14 facts in evidence that water underlying their land. 15 But you can go ahead and answer. 16 THE WITNESS: And is your question have we put 17 them on notice as far as like a notification in the 18 newspaper or letter to them? 19 BY MR. LOCKHART: 20 Q. Or public hearings or -- yes. 21 A. And that we are taking water from them? 22 Q. That you may be, yes. 23 A. No. 24 Q. Okay. Is there anyone within the District who 25 might be able to provide us with information as to 59 OLVERA COURT REPORTING (661) 587-9040 1 whether or not the District has ever been in an 2 overdraft situation? 3 A. I don't believe so. 4 Q. Are there any records or documents in your 5 district files that might be able to provide us that 6 information? 7 A. The only thing that may have anything to do 8 with that subject would be the Antelope Valley Water 9 Group that did a study back in, I think 19 -- 1996. 10 Q. That was Antelope Valley Water Group? 11 A. Water Group. I think that's -- yeah, Antelope 12 Valley Water Group. 13 Q. What was the purpose of that 1996 study, if you 14 know? 15 A. Different water agencies within the Valley, the 16 farmers, individuals were meeting to try and determine 17 what the water future was for the Antelope Valley. 18 Q. Do you know what the results of that study 19 were? 20 A. I can't tell you what the result was off -- but 21 the study is included in your documentation. It's a 22 Kennedy Jenks Consultants did the study. 23 Q. Okay. Over what period of time was the study 24 conducted, do you know? 25 A. Probably a three- or four-year period of time 60 OLVERA COURT REPORTING (661) 587-9040 1 that the group met. I don't know exactly how long the 2 study time frame was. 3 Q. You testified earlier that the District was 4 looking at constructing an additional well. Is that 5 because of population increases? 6 A. Yes. 7 Q. Okay. Is it then the intention of the District 8 to pretty much remain constant in its level that it 9 seeks from the state, and try to increase by drilling 10 additional wells? 11 MR. DUNN: Do you understand the question? 12 THE WITNESS: No. 13 Would you repeat it, please. 14 MR. LOCKHART: I'll rephrase it. 15 Q. Is it the District's intention to try to 16 maintain a consistent level of usage via purchase from 17 the state and try to make up for population growth by 18 drilling additional wells? 19 A. No. 20 Q. Is it some of each, then? 21 MR. DUNN: "Some of each" -- vague as to "some 22 of each." Do you mean some state water, some 23 groundwater? 24 MR. LOCKHART: Yes. 25 Q. Some increase in state water, but because your 61 OLVERA COURT REPORTING (661) 587-9040 1 population has increased so much, you are recognizing 2 you are having to additionally drill wells within the 3 District? 4 A. Yes, I think that's a fair statement. 5 Q. Okay. Is it possibly in part anticipating that 6 one of these older wells may also be abandoned 7 eventually; for example, the stand-by well? 8 A. No. 9 Q. Okay. Do you know whether the District has 10 intentions to take steps to rejuvenate the abandoned -- 11 or not the abandoned well; the stand-by well? 12 A. Not rejuvenate that well. We would not 13 rejuvenate the well that's existing. 14 Q. Okay. Is there any intention on the part of 15 the District to put that stand-by well back into active 16 use? 17 A. Not if we can -- not if we don't have to. 18 Q. Okay. Would the cost of putting that well back 19 in use exceed the cost per acre foot that you obtained 20 water by purchasing it from the state? 21 A. We can put that well back into use today at no 22 additional cost. 23 Q. I thought you testified earlier that the 24 efficiency of that well had gotten to the point where it 25 was too expensive to pump water out of it? 62 OLVERA COURT REPORTING (661) 587-9040 1 A. It's expensive to pump water out of it. But I 2 didn't say that we couldn't pump water out of it. 3 Q. I understand. 4 A. Right. 5 Q. My point is, if you started reusing it 6 actively, you stated that it's expensive. Would it be 7 more expensive per acre foot to pump water out of that 8 well than it would be to buy water from the state? 9 A. I couldn't say at this time. 10 Q. Okay. With respect to the cost of pumping 11 water out of the other wells, how much more expensive 12 would it be to pump water out of that stand-by well, if 13 you know? 14 A. I couldn't answer that either. 15 Q. Okay. 16 Can we go off the record real quick. 17 (Discussion off the record.) 18 MR. LOCKHART: I don't have any further 19 questions right now. 20 MR. ZIMMER: I tried to talk Mr. Lockhart into 21 getting us out of here. 22 MR. ABBOTT: I have just have one question. 23 MR. LOCKHART: Yes, one question. 24 MR. ABBOTT: I have one question. 25 // 63 OLVERA COURT REPORTING (661) 587-9040 1 EXAMINATION 2 BY MR. ABBOTT: 3 Q. Which county is the District located? 4 A. It's located in Kern County. 5 MR. ZIMMER: I just have one other question. 6 7 FURTHER EXAMINATION 8 BY MR. ZIMMER: 9 Q. You said that some well permits were denied to 10 two people because the cost of hooking up would be less 11 than it would cost them to dig the well? 12 A. Yes. 13 Q. So why was that a reason to deny them -- that 14 was the reason for denying them the permit, correct? 15 A. Yes. 16 Q. Then why would there be the reason to deny them 17 the permit? 18 A. It's just been our board's policy to do that. 19 If they are close enough to our water lines to connect 20 to our water lines, they prefer that they do that, other 21 than drill a well. 22 Q. Okay. 23 No other questions for today. 24 I propose the following stipulation: We have 25 not yet completed the deposition or gone into all of the 64 OLVERA COURT REPORTING (661) 587-9040 1 records yet. In terms of the records, we have an index, 2 and I assume, Mr. Dunn, that we can look at them upon 3 reasonable notice at any time, that's reasonable. 4 MR. DUNN: Yes. 5 MR. ZIMMER: We will complete the deposition at 6 a date, time, and place that's acceptable to the witness 7 and the lawyers. 8 This portion of the deposition transcript can 9 be transcribed in the ordinary course of things and 10 forwarded to Mr. Dunn, who will see that the witness 11 reviews it and makes any changes she wishes to make in 12 it within 30 days, after Mr. Dunn's receipt of the 13 transcript and sign it under penalty of perjury. 14 If for any reason the deposition transcript is 15 not signed, a copy can be used with full force and 16 effect of the original as if it had been signed. 17 The original can be returned to me for 18 safekeeping until the time of trial. 19 Anybody have anything to add? 20 MR. DUNN: So stipulated. 21 MR. ABBOTT: So stipulated. 22 MR. LOCKHART: So stipulated. 23 THE REPORTER: Okay. Copy orders? 24 MR. DUNN: I'll take one with a condensed and 25 just an ASCII disk. 65 OLVERA COURT REPORTING (661) 587-9040 1 MR. LOCKHART: Ditto. 2 (Whereupon the deposition 3 concluded at 3:24 p.m.) 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 66 OLVERA COURT REPORTING (661) 587-9040 1 2 3 4 5 6 7 8 I, SHERRY LEA DeLANO, do hereby declare under 9 penalty of perjury that I have read the foregoing 10 transcript of my deposition; that I have made such 11 corrections as noted herein, in ink, initialed by me, or 12 attached hereto; that my testimony as contained herein, 13 as corrected, is true and correct. 14 EXECUTED this _____ day of _________________, 15 16 20____, at ________________________, ________________. 17 (City) (State) 18 19 _____________________________________ SHERRY LEA DeLANO 20 21 22 23 24 25 67 OLVERA COURT REPORTING (661) 587-9040 1 2 3 4 I, the undersigned, a Certified Shorthand 5 Reporter of the State of California, do hereby certify: 6 That the foregoing proceedings were taken 7 before me at the time and place herein set forth; that 8 any witnesses in the foregoing proceedings, prior to 9 testifying, were placed under oath; that a verbatim 10 record of the proceedings was made by me using machine 11 shorthand which was thereafter transcribed under my 12 direction; further, that the foregoing is an accurate 13 transcription thereof. 14 I further certify that I am neither financially 15 interested in the action nor a relative or employee of 16 any attorney of any of the parties. 17 IN WITNESS WHEREOF, I have this date subscribed 18 my name. 19 20 Dated: __________________________ 21 22 23 ________________________________ 24 VIRGINIA L. BRANNON CSR No. 9846 25 68 OLVERA COURT REPORTING (661) 587-9040