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Section 3
                                                                 Status of the Basin and Administration of the Judgment



                  and Regulations, transfers to the Appropriator Parties for CY 2017 were based on unused
                  production from Overlying Users in CY 2012. This required the recalculation of Overlying
                  Users production, back to July 2003, on a calendar year basis. Under this format, unused
                  production from the second half of 2003, with adjusted water rights for half of the year, was
                  allocated to Appropriators for CY 2008. Table 3-7 summarizes the volume of unused
                  Overlying water for CY 2003 through CY 2017. While groundwater production by Overlying
                  Users has decreased by over 40 percent since 2004, the volume of unused overlying water
                  has correspondingly increased from 5,053 ac-ft/yr in CY 2006 to a maximum of 6,679 ac-ft
                  during CY 2011.  The amount of unused production decreased starting in CY 2014 to slightly
                  over 4,600 ac-ft/yr as a result of reduced Overlying allocations resulting from the new basin
                  Safe Yield of 6,700 ac-ft/yr.

                  Table 3-7 presents the allocation of unused Overlying water to each Appropriator based on
                  their shares of the Safe Yield and the schedule set forth under Section 7.8 of the Rules and
                  Regulations. It should be noted that this schedule has been modified to reflect a calendar
                  year basis for allocation.  Under the modified schedule, unused Overlying production in CY
                  2012, estimated at 6,565 ac-ft, is allocated to Appropriators during CY 2017.  Unused
                  Overlying production during CY 2017, estimated at 4,295 ac-ft and subject to revision, would
                  be allocated to Appropriators during CY 2022.

                  It should be noted that if the Overlying Right of Oak Valley Partners LP is converted to an
                  Overlying-Appropriative Right in favor of YVWD prior to CY 2022, then the quantity of water
                  available to Appropriators in 2022 will be adjusted accordingly.

                  3.5      Storage Accounting
                  Section 6.7 of the Watermaster Rules and Regulations indicates that Watermaster shall
                  calculate additions, extractions, and losses of all water stored and any losses of water
                  supplies or Safe Yield resulting from such water stored. This section further indicates that
                  Watermaster shall keep and maintain for public record an annual accounting thereof. While
                  additions (spreading) and extractions (pumping) are easily quantifiable, losses from storage
                  are more difficult to estimate.  A methodology for estimating groundwater losses from the
                  Basin is currently being developed and is anticipated to be completed in FY 2018.


                  3.5.1  Annual Storage Consolidation
                  Consistent with the new reporting format to document extractions, spreading and other
                  groundwater activities on a calendar year basis, Table 3-8 represents the consolidation of
                  each Appropriator’s storage account from CY 2003 through CY 2017. This table includes
                  annual production by Appropriator, their share of Temporary Surplus, supplemental water
                  recharge in its various forms, transfers between Appropriators, potable deliveries to parcels
                  previously owned by Overlying Users, and transfers of unused water from Overlying Users.
                  At the end of 2016, an overall total of 101,118.8 ac-ft of water were stored in the Basin for
                  future use; this total increased in CY 2017 by 8,046.2 ac-ft to a cumulative total of 109,165.0
                  ac-ft.  Increased spreading of imported water by BCVWD and the City of Banning along with
                  low production totals by YVWD were the primary reasons for the increase in storage.
                  Despite of the expiration of the Temporary Surplus allocation at the end of CY 2013, the



                   Beaumont Basin Watermaster 2017 Annual Report – DRAFT – February 2018                  3-10
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