Page 11 - Beaumont Basin Watermaster
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reallocated in a manner similar to the adjudication, therefore providing
                              beneficial use.
                              Counsel  Montoya agreed the  foundation  for  such transfers is in  the
                              judgment, and it  makes  sense to  firm up these concepts now via
                              discussion between appropriators.

                              Member Zoba indicated he has always viewed the Watermaster as an
                              accounting firm for these types of transfers. He pointed to a concept in
                              the stipulated judgment that there would be a conversion of overlying
                              to appropriative rights and these are now coming about. He postulated
                              that the SWRCB policy does not apply to the Watermaster at all and a
                              five-year plan should not be considered.

                              Mr. Zoba  pointed to Engineer  Blandon’s  chart presented earlier and
                              reminded the members that correspondence presented to  the
                              Committee in March included the overlying party committing to YVWD
                              to forever forgo pumping and extracting that overlying right. In favor of
                              that, YVWD made commitments to make sure that there will be water
                              for the property when it develops, when it occurs. When the transfer
                              occurred in March, YVWD immediately put that water to an appropriative
                              use, which is shown on the chart as extracted and consumed in 2018 in
                              the YVWD service area. There is nothing in the adjudication that says
                              that appropriative  right must be used on  that specific  property.
                              Appropriative water may be used anywhere within the service area, not
                              just within the Beaumont Basin.
                              The correspondence today, Zoba continued, transfers another 60 acre-
                              feet to YVWD, which will be used. That perfects the transfer of overlying
                              to appropriative rights. The five year policy makes no sense, he stated,
                              and advised that flexibility must be maintained. He  said he  does not
                              believe the memo from legal counsel applies, and YVWD has perfected
                              the rights transferred to it and stands to successfully manage the right
                              as stored water or used water. He requested modification of the memo.

                              Counsel Montoya reiterated there is no statutory time limit for use. The
                              SWRCB five-year limit does not apply in this case, but it was the closest
                              example of time guidance. The intent of these cases is to allow flexibility
                              to the appropriate party due to equitable consideration for time, types
                              of use, manner of use, and what has occurred over time.
                              Member Zoba also pointed out that developers provide water rights in
                              lieu of Developer Impact Fees for water supply, and if the right is instead
                              allocated to a pool, then YVWD incurs a financial loss.

                              Mr.  Jaggers  indicated the goal is  to establish a process, as uses will
                              change over time. Counsel Montoya advised  members  to assure
                              flexibility for use when drafting transfer agreements.  Member Vela
                              suggested discussion on how the transfer modifies the exhibits within
                              the adjudication, as the recalculation of safe yield is coming soon.






               BEAUMONT BASIN WATERMASTER – COMMITTEE MINUTES 2018-08-01                          PAGE 6 OF 7

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