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<p style="TEXT-ALIGN: center" align="center"><span style="font-family: "Arial Black", sans-serif; font-size: 24px;">LHDC System Overview</span></p><p style="TEXT-ALIGN: center" align="center"><b><span style="FONT-FAMILY: 'Arial','sans-serif'; COLOR: #00b050">Last update: 1/23/2025</span></b></p><p style="text-align: left;" align="center"><b style="font-family: Arial, sans-serif; font-size: 14pt;">Reservoirs: 5</b></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">Lake Isabelle</span><span style="font-family: Arial, sans-serif; font-size: 14pt;"> </span><span style="font-family: Arial, sans-serif; font-size: 14pt;">550 AF</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif">Left Hand Park<span style="mso-tab-count:1"> </span>1,500 AF<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif">Gold Lake<span style="mso-tab-count:2"> </span>454 AF<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif">Allen’s<span style="mso-tab-count:2"> </span>704 AF<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif">LHV<span style="mso-tab-count:3"> </span>1,624 AF<o:p></o:p></span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">Plus CBT from Carter Lake</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:14.0pt;font-family: "Arial",sans-serif">Total when full 4,831 AF</span></b></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif">Terms & General Information:</span></b></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">CFS = Cubic feet per second (Measures moving water)</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">AF = Acre Feet (Measures standing water)</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">1 CFS = 1.983 AF (or 2:1 for conversation purposes)</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">LHDC has 16,800 Shares of Stock</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">LHDC Yield is determined on November 1st. based on what actually came down the mountain.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">LHDC is only responsible to put the water into the ditch. Once the water passes the Parshall Flume we lose </span><b style="font-family: Arial, sans-serif; font-size: 14pt;">ALL </b><span style="font-family: Arial, sans-serif; font-size: 14pt;">responsibility and authority. You must talk with your ditch rider or the other irrigators for any problems.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif">Free, Charge & Direct Run Water:</span></b></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">We have three sources of water in which to fill your order and they are as follows:</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif">“Free Water”: </span></b><span style="font-size: 14pt; font-family: Arial, sans-serif;">The criterion for receiving free water is as follows:</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">(1) There must be more water in the creek than is required by the orders.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">(2) The reservoirs must be full. (This is a bit subjective).</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif">“Charge Water”: </span></b><span style="font-size: 14pt; font-family: Arial, sans-serif;">We automatically go on charge water when the criterion for free water is not met.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif">“Direct Run”: </span></b><span style="font-size: 14pt; font-family: Arial, sans-serif;">Direct run is a source of water that will be used when there is a “Call on the river”, indicating we cannot store water, yet we have it in the creek and we can use it as long as we don’t store it.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:14.0pt;font-family:"Arial",sans-serif">Re-allocation of inactive shares</span></b></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">If you do NOT begin using your water before August 1st then the board reserves the right to reallocate 80% of your water (not your shares) to active shareholders.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">This means that 80% of your water will be taken out of your account and divided out between the active users.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">The board assumes if you have NOT used any water prior to Aug 1</span><sup style="font-family: Arial, sans-serif;">st</sup><span style="font-family: Arial, sans-serif; font-size: 14pt;"> then you won’t be using it this season and therefore it is re-allocated to the active users.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">The rule of thumb is to keep the water as high as possible for as long as possible.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">Therefore, depending on where your farm is determines where your water will come from.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:14.0pt;font-family: "Arial",sans-serif">Example:</span></b><span style="font-size: 14pt; font-family: Arial, sans-serif;"> The Williamson ditch is the last ditch heading East, at 63<sup>st</sup>. They are also the lowest elevation ditch. Therefore, they can receive water from all five reservoirs. All of our water is above them.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif"><o:p> <span style="white-space:pre"> </span></o:p></span><b style="text-align: center;"><i><span style="font-size:14.0pt;font-family:"Arial",sans-serif">Remember, this is a gravity fed system and water only flows downhill.</span></i></b></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span><span style="font-family: Arial, sans-serif; font-size: 14pt;">The Haldi Ditch and the Lake ditch are at the top of the system and therefore, they can only receive water from the upper system.</span><span style="font-family: Arial, sans-serif; font-size: 14pt;"> </span><span style="font-family: Arial, sans-serif; font-size: 14pt;">They are above Allen’s Lake and LHV so they can’t get water from the lower system.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">The Toll Gates, Crocker, Crocker 2, Table Mt, Bader, Cro-John are below Allen’s Lake but above LHV. They can receive water from the upper system and Allen’s Lake but not LHV.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">The Golf Course, Hinman (New & Old), Star (New & Old), Bush, Holland and Williamson ditch are all below LHV so they can receive water from both the Upper and Lower system.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">We are only responsible to put water into the ditch’s main headgate, after that it’s up to you and/or your ditch rider to deliver the water to your headgate. We lose all authority and responsibility once the water passes through the Parshall flume.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">I am not authorized to come down your ditch to your property to assist you with a problem.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">During drought conditions I am required to tighten up the water, which means you have to pay for the shrink. Normally we pay it for you, but not when we are short of water.</span></p><p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><b><span style="font-size:14.0pt;font-family: "Arial",sans-serif">Example:</span></b><span style="font-size: 14pt; font-family: Arial, sans-serif;"> If you order 2 CFS and your headgate is several miles from my headgate, you will lose most of your water due to shrink. Evaporation, seepage, someone upstream left a headgate open or it leaks will account for your loss. You must walk up the ditch and check out where the problem is. I cannot replenish your account.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-family: Arial, sans-serif; font-size: 14pt;">That’s why the front page of the website will tell you not to run alone. If you have a large order than go ahead, but if you order small amounts, I may not fill the order if I don’t think you will get it.</span></p> <p class="MsoNormal" style="margin-bottom:0in;line-height:normal"><span style="font-size:14.0pt;font-family:"Arial",sans-serif">If you order small amounts you need to run with other people that are down stream of you so you all can split the shrink.<o:p></o:p></span></p><br><p></p>