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VALUATION OF SELECTED HENDERSON MILL WATER RIGHTS November 2019 2.0 INCIDENTAL WATER RIGHTS Agricultural water rights were acquired in conjunction with the land acquisitions for the Henderson Mill site. These water rights are referred to as the "Incidental Water Rights" because they were incidental to the land acquisitions. The Incidental Water Rights include senior water rights that were changed from agricultural to industrial uses at the Henderson Mill in Case No. W-528-76. A copy of the decree in Case No. W-528-76 is attached as Appendix A to this report. The Incidental Water Rights were originally diverted for irrigation uses pursuant to a 1911 decree (Grand County CA-183) from Williams Fork River tributaries near the Henderson Mill. The priorities and flow rates for the water rights are summarized in Table 2-1. The changed water rights can be diverted at the following alternate points of diversion and places of storage (see Figure 1-1). • Intake 1—Williams Fork Pipeline • Intake 2— Henderson Mill Potable Water Pipeline • Intake 3— Ute Creek Pipeline • Intake 4—Lower Ute Creek Intake • Intake 5— Lost Creek Intake • East Branch Reservoir • Ute Creek Reservoir • Lost Creek Reservoir The Incidental Water Rights are decreed for beneficial consumptive use at the Henderson Mill for the following uses: industrial, domestic, municipal, recreational, irrigation, replacement and reuse including uses for mining, processing, refining,transportation,and production of minerals and mineral products. Diversions of the changed water rights are limited to a combined rate of 1.5 cubic feet per second ("cfs") between October 1 and May 15, and 10.5 cfs from May 15 through September 30. The consumptive use volume in the winter is limited to 168 acre-feet, and the total annual consumptive use amount is limited to 704 acre-feet. Spronk Water Engineers,Inc. Page 12