LPPD000265 - Laserfiche WebLink

Home Browse Search

I I I I I a I I I I I I I a c I I I I Shares Organization The shares organization allocates ownership and risk of the replacement water (LA WMA' s major asset) among its members based on the munber of shares each member possesses. Each share entitles a holder to a specific quantity of replacement water per year. The owner of the share has rights to replacement water into perpetuity. The actual amount of replacement water associated with a share depends on two components: I) the number of shares LAWMA decides to initially issue~ and 2) the total replacement water available to LA WMA in a particular year. Once LA WMA decides on a particular share method (we will describe three different possibilities), the first component is forever fixed. The second component can vary from year to year. We refer to the ratio of these two components as the "share index." For example, assume that there are 18,000 total shares issued by LA WMA to its members. In a dry year, LA WMA may only have, in total, 15,000 af of available replacement water. Each share would have an index of 0.83 (15,000 af 118000 shares) indicating that the shareholder has claim to 0.83 af of replacement water for every share he owns. For each well owner, the shares of replacement water then converts to allowable amounts of pumping. The conversion of replacement water to allowable pumping depends both on the depletion factor of the well and how the type of well effects surface water claims. Table 5 outlines this conversion. Table 5: Share Index to Pumping Amount (acre - feet) Share Index x Factor Pumping allowed per unit of a share index Tributmy 1.00 83.10 83.10 Supplemental 1.00 5.54 5.54 Sole - Flood 1.00 3.32 3.32 Sole - Sprinkler 1.00 2.22 2.22 F or example, if the share index armounced for a given year is 1.00, a supplemental user will be allowed to pump 5.54 af(see Table 5) of water for every share he owns. In a short year as described above, the share index is 0.83. The supplemental user would be able to plUTIp 4.56 af (0.83 x 5.54) for that year. The fact that the share index varies from year to year is the risk of ownership. Any member can decrease or increase his individual risk of being caught water short, relative to his land holdings, by purchasing or selling shares from his initial allocation. All shares have equal claim on the replacement water rights held by LA WMA. Because shares allow the owner the right to pump into perpetuity, the shares are considered a form of asset. Each share obligates the holder to a proportional share of LA WMA total expenses. For example, if LA WMA armual expenses were $400,000 per year and there EnWater Resource Consultants September 5, 1997 Final RepOlt 29