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Direct Flow Storage Decree <br />Water may also be stored via exchanges, typically for convenience during maintenance periods. <br />The Company, by agreements with the Rio Grande Canal Water Users Association and the San <br />Luis Valley Irrigation District, stores water in Santa Maria and Continental reservoirs under direct <br />flow water rights. <br />Water stored under direct flow rights is typically released when river flows begin to decline in the <br />later summer. As required by decree, water stored under direct flow rights must be used within <br />the same season it is stored. Water stored under direct flow rights owned by the Rio Grande <br />Canal Water Users Association and by the San Luis Valley Irrigation District is charged 10 <br />percent when the water is released. However, the direct flow storage decrees for these ditch <br />companies allow them to store 111 percent of their direct flow rights. The result is that 100 <br />percent of their water eligible for direct flow storage in reservoirs may be delivered to the canals. <br />Storage by Exchange <br />Water may also be stored via exchanges, typically for convenience during maintenance periods. <br />The Company cooperates with the San Luis Valley Irrigation District (owner of Rio Grande <br />Reservoir) to operate a variety of exchanges. <br />Comments and Concerns <br />None <br />Attachments <br />C:Acdss\SMRes.doc Santa Maria Reservoir Company Interview July 6, 1999 -Page 4 of 4 <br />