William T. and Nicole L. Gladden - Page 6




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      Annual Allocation (in Acre-feet) of Available CAP Water                          
                                                              Percentage of            
                                                              Non-Indian               
      To        To Municipal and          To Non-Indian       Agricultural Use         
      Indian Use     Industrial Use       Agricultural Use    Allocated to HID         
      309,828          640,000              Balance                7.67                

               On November 18, 1983, a water service subcontract relating              
          to distribution of Colorado River water was entered into between             
          the Interior Department and the CAP Water District, on the one               
          hand, and HID, on the other hand (the Subcontract).  The                     
          Harquahala Valley landowners were not parties to the Subcontract.            
          The Subcontract provides for the delivery over the course of 50              
          years by the CAP Water District to HID of the designated quantity            
          of available Colorado River water.                                           
               Although Harquahala Valley landowners were not named parties            
          to the Subcontract, the terms of the Subcontract were subject to             
          approval by Harquahala Valley landowners, and only owners of the             
          specified 33,251 acres of "eligible land" referred to in the                 
          Subcontract were entitled to receive an allocation of Colorado               
          River water from HID.  The partnership’s land qualified as part              
          of the eligible acres, and thus under the Subcontract, the                   
          partnership was entitled to receive each year from HID a                     
          specified quantity of available Colorado River water.                        
               Under the Subcontract and Arizona law, each year the                    
          available Colorado River water that was allocated through the CAP            
          Water District to HID and that HID elected to receive from the               



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Last modified: May 25, 2011