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BEAUMONT BASIN WATERMASTER

                    MEMORANDUM NO. 16-21

Date:     December 7, 2016

From:     Hannibal Blandon, ALDA Inc.
          Joseph Zoba, Treasurer

Subject:  Conditions Related to the Groundwater Storage Agreement in the
          Beaumont Basin for the San Gorgonio Pass Water Agency
          (SGPWA)

Recommendation: Pending

At the April Board meeting, copies of SGPWA’s application for a groundwater storage
agreement in the Beaumont Basin were distributed to members of the Watermaster
Committee for their review.

At the Watermaster meeting on June 1, 2016, the Watermaster Committee discussed the
importance of incorporating contingencies into the approval of the storage account to
protect the rights and responsibilities of the Watermaster members to fulfill the terms of
the Stipulated Judgment.

On October 5, 2016, the Watermaster Committee reviewed the following proposed
conditions that would be included in the storage agreement with the San Gorgonio Pass
Water Agency to represent the common goals of the parties:

    1. The storage account authorized to the San Gorgonio Pass Water Agency shall not
         negatively impact, impede, reduce or obstruct the purchase and delivery of
         supplemental water from the San Gorgonio Pass Water Agency to any water
         retailer of the Watermaster Committee at any location or time.

    2. When the quantity of supplemental water available on an annual basis exceeds all
         demands and/or requests for supplemental water by the Watermaster Committee
         members, the San Gorgonio Pass Water Agency may recharge the excess
         supplemental water in the Beaumont Avenue Recharge Facility or any other
         location approved by the Beaumont Basin Watermaster.

    3. Supplemental water stored by the San Gorgonio Pass Water Agency pursuant to
         the conditions herein and the approved Storage Agreement will be made available
         at any time to the members of the Watermaster without restrictions

    4. Any member or members of the Watermaster shall maintain the first right of refusal
         to purchase the supplemental water placed in storage by the San Gorgonio Pass
         Water Agency. All Watermaster members shall be notified in writing a minimum

          Beaumont Basin Watermaster - December 7, 2016 - Page 15 of 16
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