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BEAUMONT BASIN WATERMASTER
                                          MEMORANDUM NO. 17-03


               Date:                    February 1, 2017

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

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

               Recommendation:          That the Watermaster schedule a special meeting on Wednesday,
                                        March 1, 2017 at 10:00 a.m. to consider adopting Resolution No.
                                        17-01.


               At the April 2016 Watermaster 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
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