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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 />-~-"-7 <br />r~ ~I ~ .~. .'- <br /> <br />P & M EXCHANGE ALTERNATNES <br /> <br />P & M has presented some alternatives as to how they would prefer to accomplish <br /> <br />an exchange of water rights rather than an outright purchase of their rights. A <br /> <br />memorandum prepared by Fred Witaschek of P & M setting forth his ideas is attached <br /> <br />as Appendix C. That memorandum explicitly states that "... P & M, similar to CRWCD, <br /> <br />does not want the evaluation to be made on the basis of direct purchase or market value <br /> <br />of such water rights." <br /> <br />In spite of P & M's desire, the contract for this study calls for an evaluation based <br /> <br />on present value of potential future project revenues and an appraisal of the present fair <br /> <br />market value of the P & M rights. It should be recognized, however, that P & M has <br /> <br />assumed a fair market value of $100 per acre-foot of yield in its calculations. Therefore, <br /> <br />it is not in violation of P & M's wishes to evaluate the conditional rights on the basis of <br /> <br />market value. The exchange alternatives are not precluded by such analysis and, in fact, <br /> <br />.. <br />the fair market value is a necessary factor in such proposals. <br /> <br />t. <br /> <br />7 <br />