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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />SECTIONFOUR <br /> <br />Water Rights <br /> <br />under the Company's ditch system is 73%. These percentages imply that 54.75% of the water <br />diverted at the Company's river headgate is consumptively used. Trinidad has proposed a decree <br />in the change of use case which would find that the Model Ditch efficiency is 75% and the farm <br />efficiency under the Company's system is 65%. These percentages imply that 48.75% of the <br />water diverted at the Company's river headgate is consumptively used. The average annual <br />delivery of water to the Company from the Trinidad Project for the period 19&2 to 1998, <br />inclusive, from the District's records set out in Table 4-1 is 12,248 acre-feet per year. (Note: <br />During 1999, only 4984 acre-feet of water was delivered to the Company from the Trinidad <br />Reservoir, due to the Company's inability to use the Black Hills Reservoir.) <br /> <br />Based on the efficiency estimates described above, the average annual consumptive use of water <br />under the Company system may range from approximately 6,700 to 5,970 acre-feet of water per <br />year. Although the Company has no reason to believe that the above information is inaccurate, <br />since these calculations are based upon records and engineering that are supplied or performed <br />by third parties, the Company makes no representations regarding their accuracy. As described <br />above, the rights to a portion of this water have been transferred to Trinidad and River Canyon <br />Ranch. <br /> <br />URS Greiner Woodward Clyde <br /> <br />6800044333.00IR2.cIoc 31810O(2:22 PM)/pROJECTS 4-3 <br />