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The Company purchases water from Platoro Reservoir from the Conejos Water Conservancy <br />District (District), and participates in direct flow storage. Information concerning operations of <br />Platoro and water made available to its users can be found in a memorandum documentin#; <br />discussions with the Conejos Water Conservancy District. <br />Since completion of Platoro Reservoir, project storage water, i.e. water stored by the District <br />under the Platoro Reservoir storage right, has been available for purchase from the District, and in <br />turn made available by the Company to Manassa share owners. In 1999, Project water cost $4.50 <br />per acre-foot. The amount of water made available depends on 1) the amount allocated to the <br />Company as a whole; and 2) the number of shares individuals own in the Company. The Conejos <br />Water Conservancy District allocates Project water to ditches in the District. Any water <br />allocation not claimed by ditches by the end of June is then made available to other ditches. <br />Since Project water has been made available by the District, the Company has purchased an <br />average of 1,500 acre-feet per year. <br />The Company has regularly participated in direct flow storage since 1991. The Company's direct <br />flow storage water is allocated to its share owners on a per share basis depending on the amount <br />stored under the Company's rights. Since 1991, the Company has stored and released an average <br />of 2,500 acre-feet per year under the direct flow storage program. <br />Use of Groundwater <br />The Company does not own any wells, although approximately 9 percent (approximately 20 <br />individuals) of share owners have their own wells that are used for a supplemental supply. These <br />wells are used primarily as alternate supplies for center pivot sprinkler systems. The Company <br />does not keep records of groundwater use within its service area. <br />Cropping Within the Service Area <br />The principal crops irrigated under the Manassa Ditch system include: <br />• alfalfa <br />• native grass <br />• small grains <br />There is not significant crop rotation from year to year within the service area. Hay cuttings <br />typically first occur at the end of June, and farmers are able to get two to three cuttings per year <br />Grain harvests typically occur in later August and September. <br />Irrigation Techniques <br />The principal method of irrigation under the Manassa system is flood irrigation. There are also a <br />few (approximately 20) center pivot sprinkler systems. The sprinklers systems that are used rely <br />both on groundwater and surface water, and use small regulating ponds to control surface water <br />deliveries from the Ditch system. Irrigation water is typically applied from April 1 through the <br />end of October, but can vary depending on climatic conditions. <br />System Gains and Losses <br />None of the canals or laterals within the Manassa service area are lined. None of the canals are <br />lined. Several loss studies were conducted by the State on the Manassa Ditch system in the early <br />C:\cdss\MANDitch.doc Manassa Land and Irrigation Company Interview June 21, 1999 -Page 6 of 7 <br />