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<br />Copies ofthe PRCC articles of incorporation and by-laws are included in Appendix A,
<br />A shareholder list (alphabetic, and by company lateral) is included in Appendix B, The
<br />Company's current summary of insurance is also found in Appendix B, A short history ofthe
<br />PRCC is found in Appendix C,
<br />
<br />Project Service Area and Facilities
<br />
<br />The Pine River Canal provides irrigation water to 215 shareholders holding 13,752,25 shares of
<br />stock in the Company, This water irrigates 13,377 acres ofland in La Plata and Archuleta
<br />Counties, The heading for the Pine River Canal is located at the south edge of Bayfield on the
<br />Pine River and extends south to the Colorado-New Mexico State line, The tunnel is located
<br />approximately eight miles south and east Ignacio, on the east side of State Highway 151. The
<br />Pine River Canal delivers water over an average of 180 days during the irrigation season,
<br />
<br />Irrigated acreage within the service area is primarily used to grow hay and alpha, The breakdown
<br />of crops is 40% pasture, 50% hay land, and 10% small grain,
<br />
<br />The tunnel is located in Section 32, T33N, R6W at an elevation of about 6,600 feet as shown on
<br />the map on page 8, Photos of the existing canal, and the tunnel exit are shown on page 10,
<br />
<br />Hydrology and Water Rights
<br />
<br />The source of water for the Company is direct flow water rights out of the Pine River, and
<br />storage water from Vallecito Reservoir, owned by the Pine River Irrigation District (PRlD),
<br />PRCC shareholders are also members of the PRIO and pay assessments on the lands they own
<br />and irrigate within district boundaries, Average annual diversions at the headgate are about
<br />71,000 acre-feet, of which about 55,000 acre-feet are for PRCC shareholders, and about 16,000
<br />acre-feet are for the Ute Indians, The canal has a capacity of200 cfs, The structure name is the
<br />"Spring Creek Ditch" and the water rights diverted at the headgate consist of the following:
<br />
<br />Table 1. State Engineer's Office Diversion Records
<br />
<br />S.E.O. Priority Description CFS 1996 1997 1998 Average
<br />ID# Diversions Diversions Diversions Diversions
<br />665 P-26, 1934 Spring Creek Ditch 142
<br />665 1991 30 52,299 AF 53529 AF 58,497 AF 54,775 AF
<br />509 P-I Spring Creek Ditch 81
<br /> (Ute Indian right) 14,927 AF 16,761 AF 17,256 AF 16,315 AF
<br /> Total Diversions 67,226 AF 70,290 AF 75,753 AF 71,090 AF
<br />
<br />The State Engineer Diversion records for 1996,1997, and 1998 are found in Appendix D,
<br />
<br />Pine River Canal Company
<br />Tunnel Hill Project Feasibility Study
<br />J auuary 1999
<br />
<br />Page 7 of15
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