Nickel Water Fantasy Circa 2007

Jeff Davis from SGPWA Promised “as much as 5,000 acre feet” of Nickel Water was Available Nine Years Ago.

FROM: Beaumont Basin Watermaster

DATE: October 29, 2007

TO: Mr. Jeff Davis, General Manager

San Gorgonio Pass Water Agency

RE: Selection of Water Transfer Opportunity

Dear Mr. Davis:

To assist you in your evaluation of various sources of supplemental water supplies, you provided us with a copy of Kennedy/Jenks Consultants’ February 2007, report. While reviewing it, you asked us to comment and to make any suggestions to further your evaluation.

The report is certainly comprehensive and informative. it also underscores the need to proceed apace with a thoughtful, cost-effective important program.

After considering all of the options, the so-called “Nickel Water” option (or one like it, such as the Buena Vista alternative) seems to be a good choice. Not only is it available in all hydrologic years and it not subject to the SWP annual allocation, but there may be as much as 5,000 acre feet available for purchase at a relatively-reasonable price.

The Watermaster members have also expressed a strong interest in purchasing water from the San Bernardino Valley Municipal Water District. As a local source, this would be a logical choice and, therefore, top priority.

That is not to say, however, that other water purchase and sale opportunities should not be investigated. In fact, we will support any effort you make to acquire water from other sources that may spontaneously make themselves available on short notice. Such opportunities may, in fact, make more sense than some of the prioritized items that I mentioned in this letter.

We have identified buyers in our area for this water, so all that needs to be developed is a financing plan. With buyers, we will be able to establish a self-regenerating, revolving, fund for this purchase and others.

If you agree, the next step would be to schedule a meeting as soon as possible to establish the framework for the revolving fund and water purchase. Let’s talk by telephone in the next couple of days to put together the agenda for that meeting.

Best regards,

Beaumont Basin Watermaster

J. Andrew Schlange