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' SECTIONTHREE Background Information Crops grown in the service area include corn, beets, grain including wheat and barley, alfalfa hay, and pasture grass. Average crop yields per acre in this area are: 4 tons of alfalfa hay, 18 tons of beets 150 bushels of corn, 65 bushels of winter wheat, 50 bushels of spring wheat, 18 tons of silage, 1600 pounds of dry beans, and 78 bushels of baxley. 3.3 WATER DEMANDS AND YIELD ANALYSIS 3.3.1 Water Demands The purpose of this project is strictly limited in scope to the rehabilitation of the dam and its appurtenant structures. No new downstream stream deletions will occur due to the proposed dam improvements. Storage rights will be transferred from the Brands to SDIC prior to construction of the project. This transfer of storage rights will give SDIC system flexibility but will not change the reservoir's agriculture purpose. No additional water supplies will be developed in connection with the physical reservoir. No new or increased diversions will be made and no additional storage capacity will be created at the reservoir. This project will not increase SIDC irrigation water supply. 3.3.2 Water Rights Knouth Reservoir is owned by the Brand family. The family is in the process of transferring decrees of reservoir storage rights into a new corporation called Knouth Reservoir Corporation. Knouth Reservoir Corporation will be comprised of the Brand family (40% ownership), SIDC (40% ownership}, and Little Thompson Water District (20% ownership). The water right transfer will give SIDC 40% of the storage decree for Knouth Reservoir. Correspondence detailing the aforementioned arrangements is presented in Appendix A. Due to the aforementioned water right transfer SIDC will receive the following benefit: 1. Receives the advantage of using the reservoir as a buffer and equalizer for temporary storage, and 2. With the capacity of the reservoir at 220 AF, part of the conditional water decree will become absolute since the absolute decree is less than the 220 AF. , ~S 3-3