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• Central Lateral <br />• South Lateral <br />• Streeter Lateral <br />• Hooper Lateral <br />The highest percentage ownership is by owners on the Streeter Lateral. Many of the Company's <br />share owners also own shares in other ditch and canal companies (e.g. Prairie, Farmers Union, <br />Costilla and Excelsior), although owners off of the Central Lateral only own San Luis Valley <br />Canal water. The Company generally does not allow co-mingling of other water into its system. <br />Water Allocation Among Owners <br />Water is delivered to share owners on a rotational basis. Each year, deliveries begin at one lateral <br />then proceed to the other three. The beginning lateral is alternated each year. Approximately one <br />and one half rotations are delivered each irrigation season, amounting to approximately 15 acre- <br />feetper 100 shares in the Company. During wetter years, the Company may deliver two full <br />rotations. <br />It typically takes 15 days to complete a full rotation around all laterals, with the South Lateral <br />requiring 5 days, the Central Lateral 3 days, and the Hooper and Streeter laterals requiring a total <br />of 7 days. <br />Use of Storage Water <br />The Company does not have storage water rights or ownership in any storage reservoirs and it <br />does not participate in direct flow water right storage. The Company does allow overnight <br />storage of Canal water for use in sprinkler systems. <br />Use of Groundwater <br />Use of groundwater is an important component of irrigation under the San Luis Valley Canal and <br />serves as a supplemental supply for share owners. Approximately 50 percent of land owners <br />under the Canal have groundwater wells. These wells are primarily located in the unconfined <br />aquifer. <br />Groundwater is used along with surface supplies (river water) to operate sprinkler systems. <br />Surface water may also be used to recharge corner areas of center pivots. Many of the sprinkler <br />systems can be supplied interchangeably with ground and surface water. Groundwater use and <br />sprinkler irrigation tends to increase substantially the first week of July as the Company's more <br />senior surface water rights go out of priority. <br />The San Luis Valley Canal participates in the winter recharge program, although historically <br />there has been limited use of winter water. The Company has also applied for judicial <br />confirmation of recharging the unconfined aquifer using surface diversions as a beneficial use <br />(Case No. 96CW046). <br />C:Acdss\SLVCanal.doc San Luis Valley Canal Company Interview July 16, 1999 -Page 4 of 5 <br />