Koramba Farmers & Graziers No. 1, Dean Phillips, Tax Matters Partner, et al. - Page 5

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          the partnerships' irrigation system covered 11,000 acres of                 
          farmland.                                                                   
               By following sound soil and water conservation                         
          (conservation) practices in their cotton farming operations, the            
          partnerships minimize the consumption of irrigation water.                  
          Pursuant to authorization from the New South Wales authorities,             
          the partnerships pump water from the Macintyre and Barwon Rivers            
          and store it in five reservoirs, together with excess water                 
          captured during flood season.  From the reservoirs, the water is            
          delivered to the cotton fields through a comprehensive system of            
          irrigation pipes and channels.  The partnerships' 44 cotton                 
          fields have been precisely leveled, using laser surveying                   
          technology, to permit proper water application and drainage.                
          Run off water from the fields is recovered and returned to the              
          reservoirs for future use.  Using computer technology, the                  
          partnerships continuously measure soil moisture during the                  
          growing season, allowing precise determination of when and how              
          much irrigation is needed.                                                  
               In building their irrigation system, the partnerships                  
          complied with the standards and procedures for floodplain                   
          construction set forth by the New South Wales Government                    
          Department of Water Resources (the Department of Water                      
          Resources).  The Department of Water Resources encourages and               
          controls the implementation of sound conservation practices in              





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