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~ , H~' .. f . -22- Company also owns four wells with pumps which discharge into the . distribution canal. Each pump produces about 5 c/f/s of water, or a total of 20c/f/s which in an average year produce about 4,000 acre-feet of water. The Company does not deliver this water pro rata to all of its stockholders, as is the usual case with mutual non-profit reservoir and ditch companies. Instead it sells the pumped water to those farmers under the system desiring to purchase. For internal accounting purposes it has created what are called "pumped.rights" which are equivalent, in acre-feet, to reservoir rights. In other words, if (as was the case in 1966) a Company reservoir right is valued at 12 acre-feet for the season, a "pumped right" will also be valued at 12 acre-feet. These pumped rights are sold to the farmers for the same amount as the Company assessment on one share of its stock (one reservoir right) for the year in question. In practice, this amount exceeds the cost of depreciation, amortization and electricity costs on the four wells and pumps and the Company makes a profit. It plans to use this profit to install additional wells and to increase its amortization and depreciation rates. The actual cost of producing the pumped rights (including depreciation, amortization, and electricity) is about 65% of what the Company charges the farmers. The Riverside Irrigation District is a public irrigation district organized under the 1905 statute. As previously stated it owns the Riverside outlet canal, and 1895-3/4 shares of stock (the controlling interest) in the Company. Taxes are paid on 21,424 acres of land in the District and each of these acres is entitled to receive district water. The Board of Directors of the District was comprised of .. , . , . . WOOOWA,IW.CLYOE.SHEII:AF!D AND ASSOOATES