Arkansas - Rotational Land Fallowing - Water Leasing Program_Application

• Basin Roundtable: Arkansas
• Applicant: Lower Arkansas Valley Water Conservancy District
• Description: Rotational Land Fallowing - Water Leasing Program - Lower Arkansas Valley Super Ditch Company
• Account Source: Basin
• Board Meeting Date: 1/23/2008
• Contract/PO #: 150425
• WSRA - Doc Type: Grant Application

Form Revised May 2007

will support continued irrigated agriculture any farther into the future, a question of paramount
impOltance to the duration of the program.

G. Acquisition of Shares Directly by the Lower Arkansas Valley Super Ditch Company:
The Lower Arkansas Valley Super Ditch Company may acquire for its own account shares that come on
to the market, with a view toward keeping ownership of the underlying water rights within the Lower
Valley.

H. Lower Arkansas Valley Super Ditch Company Functions: Important functions of the
Lower Arkansas Valley Super Ditch Company will include

1. Determining the uniform forms of the leases by which shares are leased;

2. Determining the yield of shares that can be leased;

3. Pursuing the substitute water supply plans and water court decrees necessary to allow
the shares to be leased;

4. Obtaining necessary land use permits, e.g., 1041 pennits;

5. Determining when and on what terms to acquire shares directly and to lease the acquired
water;

6. Determining which lands will be fallowed each year based on lease demand and
hydrology; and

7. Operating on a year-to-year and day-to-day basis the mechanisms that link Pmticipating
Irrigators to Municipalities and other Water Users by the leases.

I. Ownership of the Lower Arkansas Valley Super Ditch Company: Participating Irrigators
will have ownership interests in the Super Ditch Company, evidenced by shares of stock:

1. A Participating Irrigator who has offered his water rights for lease to the Super Ditch
Company will, upon making that offer, hold shares of a class of stock (a "subscription")
that evidences that the Participating Irrigator has offered water rights for lease and in a
number reflecting the value of those water rights measured in accordance with their
yield and other factors.

2. A Participating Irrigator whose water rights have been leased by the Super Ditch
Company lease to a or Water User will a that
evidences that the Participating Irrigator's water rights are under lease and of a number
reflecting the value of those water rights measured in accordance with their yield and
other factors.

3. A Participating Irrigator who has withdrawn his offer to lease water or whose lease of
water has expired will cease to hold the shares acquired upon entering the program and

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