COUNTY OF RIVERSTDE. Plaintiffs, REPORTERIS TRANSCRIPT OF PROCEEDINGS. BRUNICK, McELHANEY & BECKETT. By: Wifliam J. Brunick, Esq.

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RECEIVED sep t 0t SUPERIOR COURT OF CAL]FORNI ABrunld<, McElhaney, COUNTY OF RIVERSTDE Doþn & Kennedy CITY Of BARSTOW/ et ai., Plaintiffs, VS. No. CIv0B8 CITY OF ADELANTO, et al., Defendants. AND RELATED CROSS-ACTIONS. REPORTERIS TRANSCRIPT OF PROCEEDINGS Proceedings of July 79,, the Honorabfe Gloria Connor Department. 07, before Trask, Judge, APPEARANCES: For Defendant/ Cross-Complainant: Mojave Water Agency BRUNICK, McELHANEY & BECKETT By: Wifliam J. Brunick, Esq. Leland P. McEÌhaney, Esq. 89 Commercenter West San Bernardj-no, California 9L For Real Party in Interest: For Department of and Game: Fi sh CAUF]ELD & JAMES LLP By: Jeffery L. Caufield, Esq. Santino Tropea, Esq. BI Camino Del Rio South, Suite 0 San Diego, California 908 OFFICE OF THE ATTORNEY GENERAL Natual Resources Law Section By: Michaef W. Hughes, Deputy 00 South Spring Street Los Angeles, California 900 For Mitsubishi Cement Corp. and Silver Lakes As sociation GRBSHAM SAVAGE By: Ben A. Eilenberg, Esq. 70 University Avenue, Suite 0 Riverside, California 90I For JP Bank Morgan Chase ALVARADO SMITH By: Gregory G. Snarr, Esq. MacArthur Pace, Suite 00 Santa Ana, Cal-ifornia 90 Patricia L. Hanson, CSR 9 Riverside Superior Court 00 Main Street, Department Riverside, California 90I COPY

PROCEEDTNGS OF TUESDAY, JULY t9, 0L7 B o 0 L L T 77 B 9 0 L zz a B (A discussion is held off the record. ) So, Charniece, the hearing that this is going to be is the motion to adjust Free Production All-owance by Mojave Water Agency. Apparently there was a stip and order. Is that how it got continued to today? MR. BRUNICK: The State filed a motion It was set in the commissioner's court. The State filed a motj-on. They didn't want the commissioner to hear it. And then it came to lucky you. And from that point the the minute orders vlere issued, and this matter along with the other matter were continued to this date. And then there was an ex parte motion in t.he other matter set on the 9th. But there was no stipul-ation. But. we served each each time it was continued, we served all- 0 parties. THE COURT: Okay. There was an ex parte where? MR. BRUNICK: Ex parte in the other case, the molion to review the Watermasterts decision. And that it was set on one of the attorneyrs for Bank of America or somebody vacation, and then it was kicked over to Friday, next Eriday. THE COURT: Thatrs what it is. That's Bank of America's saying MR. BRUNICK: Correct. Right. THE COURT: Thatrs on for Friday. MR. BRUNICK: That's right.

B o 0 \ t.t- J I T! B I9 0 T tq zo ó THE COURT: Does it have the same case number? It's the same case, right? MR. BRUNfCK: It's in the same Itrs in the Itrs a revj-ew of a Watermasterfs decision under the big case yes. THE COURT: Right. But it's the issue of water rlghts between Bank of America and some Adelanto. MR. BRUNICK: And another party. THE COURT: the previous landowner. MR. BRUNICK: Landowner, correct. THE COURT: Got it. Okay. In the matter of City of Barstow versus City of Counsel, state your appearance/ please. MR. HUGHES: Good morning, Your Honor. Michael Hughes with the Attorney General-ts office for the Department of Fish and Game. MR. BRUNICK: Bill- Brunick appearing for Mojave Water Agency, Your Honor. THE COURT: The matter was added onto our cal-endar. It was not previously on our calendar due to some inadvertence somewhere. It is on calendar for a motion to ad ust the Free Production Al-lowance for water year 0," through 0 by the Mojave Water Agency. I have before me a copy of a minute order continuing the matter to -I9, in Department. That was a continuance from an ex parte. I do not have proof of service. But based upon Mr. Brunick's representation as an officer of the court,

I tr J Õ 9 0 I I T L B I9 0 I )) B notice was given to all parties. I note, and f have received a workup from our research attorneys that there is no opposition. This is not a controversial year. The recommended Free Production All-owance for Alto, Centro, and Este subareas remain unchanged from the previous court order of the year 0-0 through 0II. Department of Fish and Game has no real opposition although maybe some grumbling about overproduction. Did you wish to be heard on that? MR. HUGHES: No, Your Honor. Thank you. THE COURT: All right. The court will grant Mojave Water Agencyrs unopposed motíon to adjust the Eree Production Al-lowance for water year 0LI through 0. notice. And f wilt ask, Mr. Brunick, if you' please give MR. BRUNICK: MR. HUGHES: prepare an order? year. THE COURT: MR. BRUNICK: order, along with court has a proof THE COURT: MR. BRUNICK: accommodation. I will-. Your Honor, would you like Mr. Brunick to Or how would you like that to work? Yes. Vüe need an order as \^/e have every Right. Vüe We our I will, in of service for the Excel-lent. And I appreciate We wil-l submit an addition, make sure the 9th, also. the court's

7 o 9 l-0 LZ IJ T - IO I7 than I do. THE COURT: Have a ni-ce -- Have a níce vacati.on" MR. BRUNICK: My wife appreciates ít a lit.tle bít rnore THE COURT: AI right. MR. BRUNICK: Thank you. THE COURT: You were trying to get out of going to Russia. I qet that feeling. But I wonrt tell her. tradeoff. MR. BRUNICK: I would rather qo fishing, but this is a THE COURT:, right. MR. BRUNTCK: Thank you. THE COURT: Uh-huh. Good day. (Proceedings are adjourned. ) *** Thank you. *.* * 8 I9 0 L 't 8

{ STATE OF CALTFORNIA ) ) COUNTY OF RIVERSTDE } ss. 't E 9-0 l_ t- L l Ir PATRICIA L. H.ANSON, a Certified Shorthand Reporter, Number 9, do hereby c,ertify: That on July 9 and, AI, in the County of Riverside, State of Calífornia, I took in shorthand a true and correct repcirt o,f the prooeedings h,ad in Lhe above-entitl-ed cause and that, thre foregoine transcript is a true and ascurale transcription of my shorthand notesr. taken as aforesald. DATED: Riverside, Californla, Septemþer, 0. "7 8 79 Patrlcia L. Hanson. CSR 9 t: 7 - þ 7 /x t