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from the Lake Canal Reservoir Company. However, all the water stored and delivered from the Gray Reservoirs is owned by stock holders in the Lake Canal Company. The Lake Canal Reservoir Company has historically supplied a portion of the irrigation water for approximately 5,200 acres of land. The water for irrigation is supplied by a storage decree from Box Elder Creek equal to 1,178 acre-feet. The priority numbers, appropriation dates, and storage right are summarized in Table 1. The Lake Canal Company, which is separate from the Lake Canal Reservoir Company, also delivers CBT water and water from Timanth Reservoir and Lake Canal Reservoir No. 1. TABLE 1 GRAY RESERVOIR'S WATER DECREES Reservoir Priority Appropriation Gage Height Storage Date Feet Acre-Feet North Gray 2 April 1, 1882 7.5 136 50 November 1, 1902 11.5 139 77 November 15, 1904 13.65 58 South Gray 3 April 1, 1882 6.0 275 51 November 1, 1902 14.0 237 78 November 10, 1904 18.0 222 Gray No. 3 76 November 14, 1904 13.0 111 TOTAL 1,178 In 2002 the Lake Canal Reservoir Company filed with the water court to allow for alternate storage locations for the water decreed for storage in Gray Reservoir No. 3. This application was accepted by the water court with a ruling dated November 10`h, 2004. The ruling is included in Appendix F. NEED FOR THE PROJECT At the present time, Gray Reservoir No. 3 is restricted to zero storage by the State Engineer due to the poor condition of the dam and outlet works. The latest inspection reports completed by the State Engineer in 2008 and 2009 and aze included in Appendix G. Due to the poor condition of Gray #3, the Company has considered rehabilitation of the dam and its appurtenant structures and has also considered breaching the dam. As described above, the LCRC has filed an application with the water court allowing moving the storage to other locations. With regard to South Gray Reservoir, the dam has excessive seepage along a major portion of the west dam and the south dam. The company desires to preserve the storage right on this reservoir and is interested in adding a toe drain or other seepage measures to ensure the safety of the dam. Gray Reservoirs-Feasibility Study Page 4