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BEAUMONT BASIN WATERMASTER

                                          MEMORANDUM NO. 17-16

               Date:                    June 7, 2017

               From:                    Joseph Zoba, Treasurer

               Subject:                 Approval  of  the  Groundwater  Storage  Application  and
                                        Groundwater Storage Agreement in the Beaumont Basin for the
                                        San Gorgonio Pass Water Agency in the Amount of 10,000 Acre
                                        Feet

               Recommendation:          That  the  Watermaster  adopts  Resolution  No.  2017-01,  A
                                        Resolution of the Beaumont Basin Watermaster to Confirm and
                                        Adopt  San  Gorgonio  Pass  Water  Agency’s  Application  for
                                        Groundwater Storage Agreement, Subject to Stated Conditions.


               Background

               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 reviewed Beaumont
               Basin Watermaster Memorandum No. 16-10 (Attachment A) and 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.  An
               excerpt  from  the  minutes  from  the  June  1,  2016  Watermaster  meeting  for  this  agenda  item
               provides the following issues and discussions:

                       C.      Engineer’s Opinion on the Application by the San Gorgonio Pass Water
                              Agency  (SGPWA)  for  a  Groundwater  Storage  Agreement  in  the
                              Beaumont Basin [Memorandum No. 16-10, Page 20 of 91]

                              Recommendation:  For Information Purposes.

                              Engineer Blandon gave feedback on the application for a groundwater
                              storage agreement submitted by the SGPWA. Member Fraser stated that
                              his principal concern with the application would be that since the SGPWA
                              is  not  a  party  to  the  stipulated  judgment  and  has  no  replenishment
                              obligations in the basin, yet controls the imported water supply into the
                              region, retail agencies with replenishment obligations could be adversely
                              impacted if the SGPWA were to deliver water into its storage account
                              prior  to  delivering  to  those  retail  agencies  which  have  basin
                              replenishment obligations. Member Fraser reiterated his support of the
                              application, with a stipulation that the utilization of the storage account
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