Central Arizona Water Conservation District Dee Fuerst rev. 4/17/11

1. REPOSITIONING STORED CAP WATER Central Arizona Water Conservation District Dee Fuerst rev. 4/17/11

2. LOCATION OF CREDITS Over the years, the Arizona Water Banking Authority (AWBA) has stored CAP water at approximately 25 recharge sites throughout the CAP service area. Some of this water is intended to be a source of supplemental supply for the CAP M&I subcontracts during a shortage event. It may be desirable to relocate some of the stored water to other, more strategically located sites. In other words, move the water to a recharge facility that is closer to a certain service area or regional location. There is a method for doing this that does not require physically pumping the water, transporting it, then re-storing it. The following scenario illustrates how water and credits can be re-postioned. It takes good planning and cooperation among all the parties involved.

3. CAP Site 1 Recharge Facility Site 2 Recharge Facility AWBA has 10,000 AF stored here Others have 6,000 AF stored here TOTAL 16,000 AF stored here AWBA has 8,000 AF stored here Others have 2,000 AF stored here TOTAL 10,000 AF stored here Scenario: Water and credits from Site 1 Need to be relocated to Site 2.

4. CAP Site 1 Recharge Facility Site 2 Recharge Facility AWBA has 10,000 AF stored here Others have 6,000 AF stored here TOTAL 16,000 AF stored here AWBA has 8,000 AF stored here Others have 2,000 AF stored here TOTAL 10,000 AF stored here Customer’s New Order 1,000 AF Process Step 1:Use incoming water orders to maneuver water and credits from Site 1 to Site 2.

5. CAP Site 1 Recharge Facility Site 2 Recharge Facility AWBA has 10,000 AF stored here Others have 6,000 AF stored here TOTAL 16,000 AF stored here AWBA has 8,000 AF stored here Others have 2,000 AF stored here TOTAL 10,000 AF stored here Customer’s New Order 1,000 AF Process Step 2:Instead of delivering the order for CAP water to Site 1, deliver it to Site 2. Facility owners are in agreement to do this.

6. CAP Site 1 Recharge Facility Site 2 Recharge Facility AWBA now has 10,000 9,000 AF stored Others still have 6,000 AF stored New Customer order has 1,000 AF stored TOTAL 16,000 AF stored AWBA has 8,000 AF stored here Others have 2,000 AF stored here TOTAL 10,000 AF stored here Customer’s New Order 1,000 AF Process Step 3a:The title to 1,000 AF of CAP water already stored at Site 1 is transferred from AWBA to the Customer.

7. CAP Site 1 Recharge Facility AWBA now has 10,000 9,000 AF stored Others still have 6,000 AF stored New Customer order has 1,000 AF stored TOTAL 16,000 AF stored AWBA now has 8,000 9,000 AF stored Others still have 2,000 AF stored TOTAL 10,000 11,000 AF stored Customer’s New Order 1,000 AF Process Step 3b:The 1,000 AF of CAP water delivered to Site 2. It is placed in AWBA’s name in trade for its stored credits at Site 1. Site 2 Recharge Facility

8. CAP AWBA now has 10,000 9,000 AF stored Others still have 6,000 AF stored New Customer order has 1,000 AF stored TOTAL 16,000 AF stored AWBA now has 8,000 9,000 AF stored Others still have 2,000 AF stored TOTAL 10,000 11,000 AF stored END RESULT:“Water and credits” have been repositionedwithout pumpingwithout building infrastructureandwith consent of facility owners. Site 1 Recharge Facility Site 2 Recharge Facility

9. END RESULT • The Customer has title to 1,000 AF stored CAP water at Site 1. • 1,000 acre-feet of additional CAP water is stored at Site 2. • AWBA now has title to the additional 1,000 AF stored at Site 2. • GOAL Accomplished: • Water and credits located at Site 1 needed to be located at Site 2. • This was completed without pumping or building infrastructure.

10. Other Points to Address There will be other points to address when conducting these transactions, e.g.: • Costs for the original recharge vs costs for the new recharge site • Facility losses for the original recharge site, compared to the facility losses for the new recharge site • Facilities’ annual capacity • Facilities’ permit capacity