Page 16 - Beaumont Basin Watermaster

Beaumont Basin Watermaster Memorandum No. 16-21 Page 2 of 2

of 60 calendar days prior to any sale, transfer, distribution, or exchange of any
supplemental water in the storage account of the San Gorgonio Pass Water
Agency. The Watermaster maintains an opportunity to individually or collectively
purchase the water in the storage account of the San Gorgonio Pass Water
Agency under the same terms and conditions offered to a member of the
Watermaster, non-member of the Watermaster, or any other entity.

5. Any future condition, issue, or operational constraint that conflicts with the ability
of any Watermaster member to administer and fulfill their obligation(s) pursuant to
the Stipulated Judgment shall be immediate cause for rescinding the storage
agreement to the San Gorgonio Pass Water Agency.

The language was shared with Jeff Davis, General Manager of the San Gorgonio Pass
Water Agency. If there are no further issues or suggestions related to this language, then
the final Groundwater Storage Agreement will be prepared and provided to the
Watermaster Committee for consideration at our next meeting.

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