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ALLOTMENT & OVERAGE UPDATE

July 20, 2018

ALLOTMENT & OVERAGE UPDATE

Dear Shareholders,

                Sheep Creek Water Company (SCWC) continues to experience drought conditions. SCWC wells have not had any recharge and water production continues to decline.  During the Annual Shareholders Meeting on May 13, 2017, the Shareholders approved to drill a new well for a secondary water source.  The new Well #11 has been drilled and test pumping was completed last week.  The test pump results came back to have a production of approximately 250 gallons per minute.  The SCWC crew is working hard to install the water mains and get the new well online as quick as possible. 

ALLOTMENT

Due to the continued drought conditions and significant drop in water production in the canyon wells, the Board of Directors at the Regular Board of Directors Meeting of July 19, 2018 had to take drastic steps to keep water use within our pumping capacity and approved to lower the allotment to 750 cubic feet of water for the first share on the account and 150 cubic feet of water for the remaining shares.  The lower allotment will go into effect immediately after the July 2018 meter reading for the August billing.  Please keep all water use within your allotment.

OVERAGE RATE

Also, during the July 19, 2018 Regular Board Meeting, the Board of Directors voted to increase the overage rate to $7.40 per hundred cubic feet (100 cubic feet is equivalent to 748 gallons).  The overage rate includes a penalty fee, an assessment fee, well maintenance fee, Mojave Water Agency Fee and the cost for SCWC to purchase additional water.  The fees will be adjusted when well #11 is online. 

We ask all of our Customers to please keep all water use within your allotment.  All drought restrictions remain in place.  It is recommended to check your property for leaks and check irrigation systems. Please forward the allotment overage changes to tenants who use your water; the property owner is responsible for all water use.  For additional information, please visit the website at www.sheepcreekwater.com. The Staff and Board of Directors greatly appreciate your help and patience on getting through these dry times.

Sincerely,

Chris Cummings

General Manager

Sheep Creek Water Company