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Beneficial Recharge: The Company recently applied for recognition (judicial <br />confirmation) of the practice of recharging the unconfined aquifer using water diverted <br />under direct flow water rights as a beneficial use, and the right to extract such water by <br />means of groundwater wells. This application, Case No. 96CW046, is currently pending <br />in Water Court. <br />Winter Recharge: As decreed in Case No. 79CW091, the Company may divert water <br />under direct flow water rights during the winter months for the purpose of recharging the <br />unconfined aquifer lying within its service area. Historical practices of the Company <br />related to recharge is discussed below. <br />Drainage Water Rights <br />The Company owns a right for a portion of the water captured by the Rio Grande Drain. The <br />Company shares flows in the drain in excess of 40 cfs with the Farmers Union Canal (the Prairie <br />Ditch is entitled to the first 40 cfs. Flows in this drain have declined in recent years, and it is <br />rarely used by the Company for additional supply. Water can be taken out of the Drain at the <br />Company's Central Lateral. Water is typically available from this drain only during flood <br />conditions. The Eight Mile Drain is also used as a water supply to a limited extent by some share <br />owners. <br />Diversion Structures <br />The diversion structure for the San Luis Valley Canal is located on the Rio Grande in Section 35, <br />Township 39 North, Range 8 East. <br />Capacity Problems <br />There are no problems or concerns related to diversion or carrying capacity of the San Luis <br />Valley Canal. There is adequate canal capacity to divert the fu11524.76 cfs of decreed rights at <br />the Rio Grande. <br />Water Measurement <br />The diversion structure of the San Luis Valley Canal is equipped with a measuring device and a <br />satellite communication system. In addition, all individual headgates are equipped with Armco <br />101 measuring devices. There are no measurement devices on primary laterals off of the main <br />canal. <br />Geographic Location and Size of Service Area <br />The service area of the Company is located to the north of the Rio Grande within Alamosa and <br />Saguache counties. There are approximately 40,000 acres irrigated under the system. Boundaries <br />of the Company's service are currently being identified as part of Case No. 96CW046. <br />Laterals <br />The Company delivers water through many miles of canal and laterals. There are four major <br />laterals which run water from the main canal. None of the canal and lateral system is lined. The <br />primary laterals off of the main canal include: <br />C:Acdss\SLVCanal.doc San Luis Valley Canal Company Interview July 16, 1999 -Page 3 of 5 <br />