Metropolitan Water District of Southern California (MWD) Chief Engineer Frank E. Weymouth had noted in his 1930 report on the tunnel routes that the Parker route “involves less risk than any of the other proposed lines.” The continued intrusion of water was more than the original contractors could handle, and in February 1935 the MWD terminated the contract and took over the job.
By 1935 the seepage had become a concern around the San Jacinto Valley as springs, creeks and streams began to run dry.
On October 21, 1935 the Riverside County Board of Supervisors passed a resolution calling on the MWD to prevent water from entering the tunnel or from flowing away from the place it was encountered.
Dairy farmer Clayton Record Sr. agreed to take five percent of the seepage water in exchange for right of way across his property.
The pipeline that would carry water from the west portal to Lake Mathews crossed the Poorman ranch, and a safety blowout (where excess pressure could be released in an emergency) was built on the property where their share was delivered.
Nuevo thought it was close to a settlement when suddenly the MWD signed the Poorman contract and cut off all negotiations.
Eventually the seepage was reduced to 540 US gallons per minute (0.034 m3/s), and on October 14, 1939, the San Jacinto Tunnel was completed, well ahead of schedule.
The committee made two demands of the MWD: stop seepage in the San Jacinto tunnel, and return the estimated 150,000 acre feet (190,000,000 m3) of water than had been carried away since 1934.
The MWD responded, maintaining that it had acted in good faith and claimed that 16,400 acre feet (20,200,000 m3) of water has been returned at the Cosa Loma outlet and Lakeview siphon, as agreed in the Poorman contract.
[1] By the fall of 1952, all the Poorman rights were acquired by the newly formed Eastern Municipal Water District of Southern California.