Page 10 - Beaumont Basin Watermaster

parcel(s). He said he would be willing to sacrifice a little of the overlyer
rights if he does not have to make such a commitment.

Cahir Vela said he felt comfortable including language in the annual
report that represents the facts that are not currently in debate: letters
have been received requesting the transfer, commitment has been
made to discuss and finalize a policy, and once completed the annual
report would be revisited and adjustments made. Member Zoba added
that it should be included that the water has been pumped. Mr. Jaggers
pointed out that the water, however, was not served to that property.
This is the continuing gray area and has not been clearly vetted.

Member Zoba expressed concern about the concept posited by Counsel
Markman; that the water should be held up for private and free gain.
He does not want policy set based on unused overlying water right, he
said. At issue is a clear, defined policy to be vetted by the Watermaster
as a whole, Jaggers noted. Zoba suggested the two meet as an ad hoc
to draft a policy for the next meeting.

Accounting for the water pumped by Yucaipa Valley might be a caveat
in the annual report, but the real issue is what to do with the acre-feet
that was transferred and pumped, Vela noted. It should not come out
of YVWD’s storage account, Zoba suggested. Blandon explained that if
the report were revised it would be a temporary withdrawal from the
account until the issue is resolved, and put back in a subsequent report.
Regardless of where the water rights come from, the water was
produced, Blandon pointed out. The state is interested in the amount of
water that was produced.

Further discussion ensued about the ambiguity of the perfection of the
right. Zoba posited that the transfer letter does not create the demand;
it creates the relinquishment of a right – that is when the perfection
takes place, as someone is forgoing use. Chair Vela agreed this is the
ambiguity under discussion. Zoba suggested that if the overlyers could
continue to pump the water, there could be a great deal of over- and
double production.

Jaggers reiterated the request for a policy with a clear path and meets
the intent of the adjudication. If not resolved by the next meeting, Chair
Vela suggested the engineer submit the minimum report to the state as
suggested by Mr. Blandon. With Committee member consensus, Mr.
Blandon will have said report ready for approval at the March 27
meeting.

BEAUMONT BASIN WATERMASTER COMMITTEE - MINUTES 2019-03-06 PAGE 7 OF 8

Beaumont Basin Watermaster - March 27, 2019 - Page 10 of 58