Page 124 - Beaumont Basin Watermaster

WHEREAS, OVP further intends to secure commitments from the Yucaipa Valley
Water District to provide water service to development phases of the Project, and
requests that when those commitments are made and water service is provided to the
designated Project parcels that the Overlying Water Rights for those Project parcels be
transferred to the Yucaipa Valley Water District (“YVWD”) consistent with the
Adjudication.

NOW, THEREFORE, BE IT RESOLVED BY THE BEAUMONT BASIN
WATERMASTER as follows:

1. Transfer of Overlying Water Rights. Watermaster hereby approves the
transfer of all of OVP’s Overlying Water Rights to the Project parcels listed on Exhibit 1
attached hereto to provide for the development phases of the Project by OVP and its
successors/assigns. OVP shall immediately inform Watermaster of any successor or
assign who takes ownership of one or more Project parcels listed on Exhibit 1 to which
Overlying Water Rights have been transferred. As of this time, the amount of water
associated with the OVP Overlying Water Rights is consistent with the relationship
between the redetermined safe yield (6700 acre-feet) and the original Safe Yield (8650
acre-feet), or in other words 77.5% of the original amount identified to OVP in Exhibit B
to the Adjudication.

2. Transfer of Rights on Confirmed Water Service by YVWD. Once OVP
and/or its successor(s) or assigns secures commitments from the Yucaipa Valley Water
District to provide water service to the development phases of the Project, and when
water service is provided to the designated Project parcels, then the overlying water rights
for those Project parcels shall be transferred to YVWD. YVWD shall report to
Watermaster when it has provided retail water service to various properties making up
portions of the Project and Watermaster shall account for the same consistent with
Section VI, 5. W. of the Adjudication.

3. Use of Wells. The existing and future wells on the Project parcels may be
used to extract water for use on the Project parcels and/or any remaining OVP parcels,
consistent with the Adjudication and current and future Watermaster rules, regulations
and policies.

4. Further Documentation or Action. The Chief of Watermaster Services or
Watermaster Engineer is hereby authorized and directed to execute such further
documents and instruments, and take such further action, as shall be reasonably required
to carry out the purposes and intent of this resolution.

5. Effective Date. The effective date of this resolution is August 30, 2017.

PASSED AND ADOPTED by the Beaumont Basin Watermaster this 30th day of
August 2017.

4554311.1 -- N1356.1