WHEREAS:

1. The Panoche Water District (District) has requested an SRF loan of $5.6 million for the Subsurface Water Recirculation Project (Project).

2. The Project will reduce the volume of salt and selenium loading to the San Joaquin River and conserve and supplement fresh water supplies.

3. The District completed a Negative Declaration to comply with the California Environmental Quality Act.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves an SRF loan of $5.6 million to the District for the Project.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on October 23, 1997.

/s/

Maureen Marché

Administrative Assistant to the Board