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HomeMy WebLinkAbout20221031Application.pdf}i LIEIVE,D Preston N. Carter, ISB No. 8462 Morgan D. Goodin, ISB No. 11184 Givens Pursley LLP 601 W. Bannock St. Boise, Idaho 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-1300 prestoncarter@ givenspursley. com moreaneoodin@ qivensoursley. com :.iri [tT 3l Pl'{ h: l+5 :.-', l-l r:{iilL;- r r! !l' '. l-,rll ,all C SSION Attorneys for Falls Water Co., Inc. BEFORE THE IDAHO PI]BLIC UTILITIES COMMISSION IN THE MATTER OF FALLS WATER co., INC.',S APPLICATTON FOR DEFERRAL OF CERTAIN COSTS cAsE NO. rLS-W-22-0t ArplrcatroN FoR DEFERRAL oF cosrs ASSOCIATED WITH GROUNDWATER MITIGATION Falls Water Co., Inc. ("Falls Watef'or "Company") files this request for deferral of certain costs associated with implementation of mitigation measures related to Falls Water's pumping of groundwater, pursuant to its water rights, to serve customers. In support of this Application, Falls Water alleges as follows. BlcrcRouNo l. Falls Water is a regulated water company that serves approximately 6,400 customers within its service territory near Idaho Falls, Idaho pursuant to CPCN No. 236, as amended. 2. Falls Water owns certain water rights, under which Falls Water is allowed to pump groundwater from its wells to serve its customers. AppltcerroN FoR DBTBRRaI Pece 1or'6 GnouxnwATER MITIGATIoN AND ASSocIATED cosrs 3. Falls Water is located within the Bonneville-Jefferson Ground Water District ("District"), which is a member of an entity known as the Idaho Ground Water Appropriators, Inc. ("IGWA"). 4. In2016, as a result of growing conflict between the holders ofjunior groundwater rights and the holders of senior surface-water rights, IGWA entered into a Stipulated Mitigation Plan with an entity known as the Surface Water Coalition. The Mitigation Plan, which was approved by the Idaho Department of Water Resources, provides a framework for administrating groundwater rights, including Falls Water's groundwater rights, in a manner designed to decrease conflict between water users. The Mitigation Plan is attached as Attachment l. 5. Among other things, the Mitigation Plan required groundwater users to decrease water production by approximately 240,000 acre-feet. This total volume of decreased production was apportioned among IGWA members. The District's share of the reduction in production is currently approximately 18,000 acre-feet, and that volume may increase in the future. 6. Stated another way, as a result of the Mitigation Plan, groundwater users within the District are required to decrease groundwater production by approximately 18,000 acre-feet. 7. The District has determined to implement this reduction in groundwater production by requiring its members to pump at or below baseline levels, with "baseline" defined as average production levels from 2010-2014. 8. Due to drought conditions, in April 2022,the director of the Department of Water Resources signed a curtailment order that required all non-mitigated gtoundwater rights junior to December 25, 1979 to be curtailed effective May 1,2022. Appr-rcarroN FoR DBn'BRnar-Pecs 2 or 6 9. Because Falls Water is part of the District, which is party to the Mitigation Plan, Falls Water's water rights are mitieated rights and were therefore not subject to the curtailment order. 10. While the water rights of members of the District were not curtailed, the Director's curtailment order heightened the importance of achieving the mitigation requirements set forth in the Mitigation Plan. Upon examining its records, the District determined that it had not met its mitigation requirements for the past two years, 2020 and202l.The District's conclusion is set forth in its May 6,2022letter, affached as Attachment 2. 1 1. To meet the required production reductions, and in light of the Director's curtailment order, the District required all non-irigation systems to pump at or below their baseline pumping volumes. Pumping over this amount would result in an assessment of $100 per acre-foot. See Attachnent 2. 12. Since 2014-the last year used to determine the baseline pumping volumes-Falls Water's customer base has grown approximately 40o/o. 13. While Falls Water's water rights portfolio is sufficiently large to meet the needs of its customers, the demand on Falls Water's system requires it to pump at volumes greater than baseline. In prior years, this has not been an issue. However, n2022 the cumulative growth on the system, drought conditions, and the actions of other members of the Groundwater District were such that incurring mitigation fees was necessary for Falls Water to pump sufficient water to meet customer demand. 14. Falls Water expects to be invoiced for mitigation fees in the first quarter of 2023 for pumping that occurredin2}2l. The precise amount of mitigation fees is not known at this time, but they are expected to be material in light of Falls Water's overall operations. Applrclnoll FoR DEFERRAL Pecp 3 or 6 15. Falls Water has attempted to manage its operations so as to minimize production and to avoid mitigation fees. It has pursued the purchase of additional water rights; it has urged its customers to conserve water; it has explored the possibility of leasing water rights from the water bank; and it has explored changing its rate structure to encourage conservation. Conservation measnres have worked to some degree: Falls Water pumped less water n2022 than in 2021. However, conservation measures have not been sufficient to bring production below baseline levels. Rnqursr FoR DEFERRAL oF cosrs ASSocIATED wITH GRoUNDwATER MITIGATIoN 16. The costs associated with groundwater mitigation were not, and could not have been, anticipated when the Commission set Falls Water's revenue requirements and base rates. ln addition, the existence and amount of mitigation fees depend on conditions that cannot be forecasted and, as such, could not have been included within rates on a prospective basis. 17. The costs associated with groundwater mitigation are necessary to meet Falls Water's legal obligations to serve its customers and were prudently incurred as part of such obligation. 18. The costs associated with groundwater mitigation are expected to include mitigation fees for 2022 andpossibly other costs, if Falls Water is able to find a lower-cost solution that would decrease mitigation fees. 19. Falls Water may also incur future costs associated with longer-term measures to address water-rights issues. These long-term costs are not intended to fall within the scope of this Application. Falls Water will consider the longer-term measures to address water supply, mitigation through conservation programs, and potential conservation rate design price signals in its next rate case. ApplrclrroN FoR DepERRer.Pacp 4 or 6 20. Falls Water will provide to the Commission the full amount of these costs when they become known. 21. Falls Water respectfully requests that the Commission issue an order allowing Falls Water to defer ttre costs associated with groundwater mitigation such that Falls Water can advocate for recovery of these costs in a future rate case. Falls Water understands that the Commission will not make a frnal decision regarding recovery of these costs until the future rate case. Moorrrro Pnocnounn 22. Falls Water submits that a hearing is not necessary for the Commission to consider this Application, and respectfully requests that this Application be processed by modified procedure. PnavnnFoRRELIEF For the reasons set forth above, Falls Water respectfully requests that the Commission issue an order: 1. Authorizing Falls Water to defer costs associated with groundwater mitigation such that Falls Water is able to advocate for recovery of these costs in a future rate case; 2. Ordering the Application to be processed by modified procedure; and 3. Ordering any other relief that the Commission deems just and necessary. DATED October 31,2022. Gryeus Punsr.Ev LLP 9 ------e-- Z-- Preston Carter Givens Pursley, LLP Attorneys for Falls Water Co., Inc. AppLrcanoN FoR DEFERRAL PacE 5 or 6 CERTIFICATE OF SERVICE I certiff that on October 31,2022, a tue and correct copy of the foregoing was served upon all parties of record in this proceeding via electonic mail as indicated below: Commission Staff Via Electronic Mail JanNoriyuki, Commission Secretary jan.noriyuki@puc.idaho.gov Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise,ID 83714 ,"A.,--L> PrestonN. Carter Applrcenorq FoR DEFERRAL Pecs 6 or 6 -Hzfr] = Ht{U HH ATTACHMENT 1 JohnK Simpson,ISB#I/;242 Tnvis L. Thompcog ItlB #6168 Paul L. Arrington,ISB #7198 BARKER ROSHOTT & SIMPTION I,I,P 195 Rivo Visb Placc, Suitc 204 Twin Fals, Idaho 83301-9V29 Telcphonc: (20t) 7334700 Facsinilc: Q08)735-24//. Attorwys for AdLB lrrtgatlon Dtslrict, Bwley Inlgatlon Dtstrict, Mlln* httgotion Dlsfrct, North Side Caal Conpory, otd lbln Falls CoulConpry R ndall C. Budge,ISB #l%9 thomas J. Budgc,ISB #7465 RACINE OLSON NYE BT'DGE & BAILEY, CI{TD. 201 E. Canter St /P.O. Box 1391 Pocatcllo, Idaho 832U-1 391 Telephonc: Q08) 2324101 Facsimilq (20tt 212'6109 Ittomeysfu ldolp CfiotordVdt lppoptators, lrc, IN TTIB MATTER,OF TIIE DISTRIBUTION OF WATER TO VARIOUS WATER. RIGHTTI HELD BY A}.ID FOR THE BENEFIT OF A&B IRHGATION DISTRICT, AI,IERICAI{ FALLS RESERVOIR DISTRJCT #2, BI'RLEY IRRIOATION DISTRICT, MITNER IRRIGA]XON DTSTRICT, MINIDOI(A IRRIGATION DISIITICT,NORTTI SIDE . CA}.IAL COMPANT, AI{D TWIN FALLS CA}-IAL COMPAI{Y IN II{B I\{ATTBR OF IGWA'S SETTLBMENT AGREEMENT II,TITTGATION PI,A}.I SUNSACE WATER OOAI.ITIOII'S AIID IGWA'S STIPI'I,ATEI) MmGATION Pr,A!{ AND REQIrESrr rlOR OnDEn - BEf,lORE TEE IDAtrO DEPARTMENT OT WAItsRRESOIIRCES RECEIYED fflr o e 20f tv. Kent Fl€tch,r, IsB #2EffiEfo ETETCHERLAW OFFICE P.O. Box 24E Bulen Idaho t3318 Tolophonc: (208) 678-3250 Frcsimile: (208) 878-2548 Attorneys for Aneilcat Falls Resenob Dlstrtct #2 otd ltMola IrrlgAton Dlsfrct Dookct No. CM-MP-2O rc- D0 ( Surfecc Weter Coe[flontr rnd IGWA'T Sdprhtcd l{tftrtlon Plrn rnd RcquodforOrder I A&B Inigation Distict American Falls Reservoir Distict #2, Burley Inigation District, Milner Inigation Distict, Minidoka lrigation Distict, North Side Canal Company, and Twin Falls Canal Company (collectively the "Surface Water Coalition" or "SWC), and Idaho Ground Water Appropriators, Inc. ('IGWA') hereby stipulate and move the Director to enter the proposed Order Approving IGWA's Mitigation Plan attached hereto as F.xhibit A under Rule 43 of the Deparftnent's Rules for Coqiunctive Management of Surfaoe and Ground Water Resources (cMR'). STIPIILATION 1. The Eastem Snake Plain Aquifer (ESPA) supplies groundwater to approximately one million inigated acres and to numerous cities, businesses, dairies, factories and homes; and 2. The ESPA is hydraulically connectedJo the Snake River and discharges to the Snake Nver via tibutary springs, which supply surface water for.multiple beneficial uses, including aquaculture, hydropower, and the inigation of approximately one million acnes; and 3. Since 1952 the total volume of water stoted in the ESPA has decreased due to increasing direct diversions of ground water, increasingly efficient snrface water irrigation praotices, and other factors; and 4. Orrent ESPA water levels and total storage content, after more than six decades of decline, are inadequate to provide a reasonably safe supply of wata for sustainable surface and groundwater inigation, hydropower, aquaculture, municipal and industial uses, the ourtailment of whichwould cause severe economic harm to the State of Idatro 5. In 2015, historic settlement qgreements, identified herein" werc entered into between the following surface water right hrilders: A & B Irrigation Distuic! American Falls Resen oir Distrist #2, Burley Inigation District, Milner Irigation Distict, Minidoka Irrigation Distict, North side Canal Company and Twin Falls Canai Company, collectively known as the Surface Water Coalition (SWC); and the following Sound water right holders: Aberdeen American Falls Ground Water Distiot, Bingham Ground Water District, Bonneville-Jefferson Crround Watsr Distiot, Carey Valley Ground Water Distict, Jefferson-Clark Ground Water District, Madison Ground Water District, lvlagic Valley &ound Water District, North Snake Groundwater DisEict, Fremont-Madison Lrigation Dishict, Anheuser-Buscho United Water, Glanbia Foods, City of Blackfoot, City of American Falls, City of Jeromg City of Rupefi, City of Heyburn, City of Paul, City of Chubbuok and City of Hazelton" collectively known as the Idaho Ground Water Appropriators, Inc.; (IG\[/A) for the purpose of resolving pending water delivery calls and provide for on-going management ofthe ESPA to address the cunent hydrologic conditions identified inparagraphs nos. 3 and 4; 6. Attached hereto as Exhibib B and Crespectively are tnre and correct copies of the Settlement Agreemenl entered lnto June 30, 2015, between partictpating membirs of tlu Surface Wder Coalition and pwticipating members of the ldaho Ground Water Appropriators, Inc. andAddendum to Settlement Agreement (collectively the "SWC-IGWA Settlement Agreemenf). SI'RFACD WATER COALITION'S AND IGWA'S STIPT'LI\TED MITIGATTON PLI\N AND REQTTEST FOR ORTIER - 2 7. Attached hereto as Exhibit Dis atue and correot copy ofthe Agreementdated October 7,2015 bet$,een A&B Irigation Disfriot and the IGWA meurbers who entered into the SWC-IGWA Settlement Agreement (the *A&B-IGWA Agreemenf). 8. The parties hereby incorporate and submit the SWC-IGWA Settlement Agreement and the A&B-IGWA Agreement (collectively, the "Agreements') as a stipulated mitigation plan in referenoe to the Surfape Water Coalition delivery call (IDWR Docket No. CM-DC-2010-001). The Coalition stipulates that the mitigation pmvided by participating IGWA members underthe Agreements is, provided the Agreements are implemented, sufficientto mitigate for any material injury oaused by the groundwater users who belong to, and are in good standing with, aparticipating IGWA member. 9. With reqpect to the 2015 obligation identified in the SWC-IGWA Agreement (Paragaph Z.a),onMay 8, 20l5,the SWC and IGWA filed the &rface Water Coalition and IGWA Stipulation and Joint Motion Regarding April os Applied Order and Third Methodologt Order in IDWR Docket No. CM-DC-2010-0001, punruant to which the Director entered an Uder ApprovingStiplationandGrantingJoint MotiondateAMay 8,2015 (May 8,2015 Order'). 10. IGU/A tully satisfied its 2015 obligation(SWC-IGWA Settlement Agreement Paragraph 2.a) andthe May 8, 2015 Order by leasing and assigping 110,000 acre feet of storage water to the SWC through the Water Disfiict 01 Rental Pool procedures. 11. With respect to the long term obligations identified in the SWC-IGWA Agreernent (Paragraph 3), IGWA is proceeding to implement those aotions commenoing in 2016. Partioipating IGWA members providing the stipulated mitigation to the SWC are not subject to curtaihnent under the SWC delivery call, IDWR Docket No. CM-DC-2010-001, provided aotions are implemented and performed as set forth in the SWC-IGWA Settlement Agreement. Jrmior ground water dght holders who are not protected from curtailment trnder the Agreements and ufuo do not otherwise have an approved Rule 43 mitigation plan will be subject to codrmctirre administation pursuant to the Direstor's orders under IDWR Docket No. CM-DC- 2010-001. 12. IGI[/A, on behalf of its participating members identified in the Agreements, stipulates and acknowledges the obligations, benchmarks and goal identffied in Pamgraphs I and 4 of the SWC-IGWA Settlement Agreement Provided the obligations identified in the SWC- IG\MA Settlement Agreement are performed, the parties stipulate this mitigation plan is effectively operating pusuant to CM Rules 40.01.b, 40.05 and 43. 13. The partias stipulale and request that the Director issue the attached Order approving the SWC-IGWA Settlement Agreement and the A&B-IGWA Agreement together as a mitigation plan under CMR 43 ('IGWA's Settlement Agreement Mtig*ion Plan'). 14. Groundwater users who are not presently protected under IG\MA's Mitigation Plan may participate on an equitable basis by joining an IGWA Crround Water Distict or Irrigation Disbict that entered into the SWC-IGWA Settlement Agreement and the A&B-IGWA Agreeme,nt and by complying with such Distict's obligations under IG\MA's Settlement SI'RF'ACE WATER COALITION'S AI\D IGWA'S STIPI]LATED MMGATION PII\N AND REQT'EST FOR ORDER - 3 Agreement Mitigation Plan; or, rrccure Direotor approval rif an individuat mitigation plan which complies with CMR 43 and provides adequate mitigation to help aohieve thc groundwater level goal and benchmarks set forth in the SWC-IGWA Settlement Agreement. Therefore, the parties request that the Director: (a) Publish notice of IGWA's 2015 Mitigation Plan in accordance with CMR 43.02; and (b)Approve the SWC-IGWA Settlement Agreement and the A&B-IGWA Agreement together as a complete mitigation plao uuder CMR 43. (c) Take tlre necessary management actions to address declining ESPA groundwater levels, water supply and sustainability issues in otder that the benefits conteurplated in the SWC-IGWA Settlement Agreement are realized DATED this _ day of tvlarctt, 2016. BARKER ROSIIOLT &IJ,P FLETCUERII\W OXTICT Flstcher Travis L. Thompson Paul L. Anington Attorrcys for A&B Irrigatton District, Bwley lrrigaion District, Milwr lwigdion District, North Side Caral Company, and Twin Falls Cansl Compny RACINE OLSON NYE BIIDGE & BNLEY, (cErI). Randatl C. Attormeys for ldalra Ground Water Approyriotors, Inc. SI'RFACE WATER COALMON'S AND IGWA'S STIPI'LI\TED MIIIGATION PI,AN AI\D REQUEST FOR ORDER - Attorneys for Mtntdoka Inigdion District ond Atnerican Falls Resetryoir Distrtct #2 v 4 . CERTIFICATE OX'SERVICE I hereby certifr that on *&rrof March, 20l6,lserved a tnre and conect copy of the foregoing Surface Water Coalition's and IGWA's Stiptlated Mitigatton Plan and Reqrcstfor Ordcr on the following by the method indicated: SU .RFACE WATERCOALIIION'S AND IGWA'S STIPT]II\TED MITIGATION PLAN AND REQI'EST T1OR ORDER. 5 Director Gary Spachnan c/o Deborah Gibson State of tdalro Dept of Water Resowces 322E Front St Boise,ID 83720-0098t*{' ssrrter by electonic mail facsimi le - 208-287 -67 00 gflrv.spaclsnan@idw.idaho. g9 v deborah. gibsontDi&yr.idaho. go v MattHoward U.S. Bureau of Reclamation 1150 N. Curtis Rd. Boiss D*83706-1234 *** servioe by elecfionic mail only mhoward@pn.usbr.gov emogarry@pn.usbr.gov IDWR - Eastern Region 900 N. Skyline Dr., Suite A Idaho Falls, ID 83402-1718 t** sen{ce by electonic mail only lyle. swank@idwr.idaho. gov Randy Budge T.J. Budge Racine Olson P.O. Box 1391 Pocatello, ID 83204-1391*** seryice by electonic mail only rcb@.racinelaw.net tib@racinela*.ntt SarahA. Klahn MinaPemberton White & Jankowski, LLP 511 Si:rteen& Shect, Suite 500 Denver, CO 80202*** seryice by elechonic mail only facsimile - 303 -825 - 5 632 sarahk@.white-i ankowski.com mitrap@;white-i ankowski. com David Cr€hlert ENRD - DOJ 999 186 St. South Terraoe, Suite 370 Denver, CO80202*** serl{ce by electonic mail only david. gehlem@usdoj . eov A. Dean Tranmer City of Pocatello P.O. Box 4169 Pocatello,ID 83201*** sen{ce by eleotonic rnail only facsimile - 208-23 +6297 dtanmer@pocatello.us WilliamA. Parsons Parsons, Smith & Stone LLP P.O. Box 910 Bruley,ID 83318 **'t senice by electronic mail only wparsons@pmt.org IDWR- Southern Region 1341 Filtnore St., Suite 200 Twin Falls, ID 83301-3380 *** sglviss by eleotonic mail only allen.menitt@ i durr.idaho. go v cindy.yenter@i dun idaho. go v Michacl C Creamer Jeftey C. Fereday Givens Pursl€y 601 W Bannook St Ste 200 P.O. Box 2720 Boise,ID 8370t-2720*** sewice by electronic mail only moo@givenspursley. oom icf@.civensourslev.com IGthleenCarr US Dept Interior, Office of Solicitor Pacffi c Northwest Regron, Boise 960 Broadway, Ste 400 Boise,ID 83706**t sorvice by electronic rrail only facsimile - 208-334-1 9 I 8 kathleenmarion. carr@so1.doi. go v I Randall C. STIRFACE WAITR COALITION'S AI\D IGWA'S SIIPT'LATED lvIrTrGATroN PLAN AND REQTTES FOR ORITER - 6 EXHIBIT A Surface Water Coalition's and IGWA's Stipulated Mitigation Plan and Request for Order BETORE TIIE IDAIIO DEPARTMEI{T OF WATER RESOT'RCES IN TIIE MATTER OF THE DISTRIBUTION OF WATER TO VARIOUS WATER RIGHTS TIELD BYA}.ID FOR TIIE BENEFIT OF A&B IRRIGATION DISTRICT, AMERICAI.I FALLS RESERVOIR DISTRJCT #2, BI.]RLEY IRRIGATION DISTRICT, MILNER IRRIGAT.ION DISTRICT, MINIDOKA IRRIGATION DISTRICT, NORTII SIDE CAIIAL COMPAI{Y, A}.lD TWIN FALLS CA}IAL COMPA}IY Docket No. CM-MP-2016- rINAL ORDER IN TIIE MATTER OF IGWA'S SETTLEMENT AGREEMENT MITIGATION PLA}.I Based upon and consistent with the Surface Water Coalition's and IGWA's Stipulated Mitigation Plan and Request for Order filed herein, and good carse appearingtherefore, IT IS IIEREBY ORDERED as follows: The IGWA Settle,ment Agreemat Mitigation Plan is APPROVED upon the following conditions: 1. The parties will work cooperatively in implementiag the terms of the Agreement, to wit: Sections 3 (Long Term Practices, Commencing 201q,3.m ('Steering Committee'), and 4.a ('Adaptive Water Management'). The parties will undertake the following actions to begin implementation: a- Section 3. tong Term Practices, Commencing 2016, Pursuant to 3.a of the Settlement Agreement, prior to April l, 2016, the participating Disticts will submit to the Steering Committee their proposed aotions to be taken for the upcoming inigation seaso& together with supporting infonnation compiled by the Districts' consultants. Ptnsuantto 3.e.i of the Agreement IDWRwill collect, pnocess, arohive and submit sentinel well datato the Steering Committee within 30 days of oollection. a Pursuant to 3.e. of the Agreement, the parties and their consultants will use a goundwater level index at the sentinel wells and mutually agreed upon calculationtechniques ('3e Calculation Technique') to determine if the ground water level benchmarks and goal are met by June 1. This information shall be provided for use by the Steering Committee. IDWR will veriff eaoh Disnist's well measurEment and other diversion reduction daa (recharge, CREP, conversions, end-gun removals, etc.) to confirm the accuraoy of the data" This IDWR analysis shall be provided to the Steering Committeeby annually. IDWR will not take additional action following flre analysis for non-conformance.unless requested by the obligded Disfrict. Any Distict may elect to report to the Deparhent and request enforcement against a member that is not in compliance with any mitigation plan or aotivity implemented by the Distict to comply with tle Settlement Agreement. Such members will not be protected under the Setflement Agreemenl The DirEctor will evaluate the breach and if a breach is found to exist provide notice of violation and opportunity to cure to the breaching member. If the member fails to cure the breach the Dircctor will issre an order against the breaching member requiring action to cue the breach or be zubject to curtailnrent. . b. Section 3.m. Steedng Committee: The Steering Committee will review the technical infonnation supplied by IDWR together with technical reports compiled by the parties' consultants. This inforrration will be reviewed at least bi-annually. o If, based on the information rcported and available, the Steering Cornmittee finds that the long Term Practices as set forth in paragraph 3 of the Agreement have been performed but the ground warer level benchmmts or goal set forth in 3.e.ii hsve not been me( the Steering Committee shall recommend additional actions to be undertalcen by the Disticts prusuant to 3.m.iii of the Settle,r:rent Agreement. If the Steering Committee does not agrce upon additional actions prior to Ldarch I of the following year, the Director shall issue an order requiring additional actions to be undertaken by the Dishicts to achieve the benchmarls or goal not mel o . If, based on the information reported and available, the Steering Committee finds any breach of the Long Term Practices as set forth in paragraph 3 of the Agreement, the Steering Committee shall give ninety (90) days written notice of the breach to the breaching party speci$ing the actions that must be taken to cure such breach. If the breaching party refuses or fails to take such actions to cure the breaoh, the Steering Committee shall report the breach to the Director with all supporting infomatiorl with a copy provided to the breaching party. If the Director determines based on all available information that a breach exists which has not been cured, the Director shall isstre an order qpecirying actions that must be taken by the breaching party to cure the breach or be subject to curtailment. If the Steering Committee does not agree that a breach has ocourred or upon actions that must be taken by the breaching party to cure the breach, the same wilt be repoted to the Director who will evaluate all available information and issue an order speciffing actions that must be taken by the breaching party to cure the breach or be subject to curtailment. The Steering Committee will submit a report to the parties and the Deparfiuent prior to April I annually r€porting on: (a) prcgress on implementation and achieving the benchmarks and goals ofthe Settlement fureement (b) performance of the Long Term Practices set forth in paragraph 3 of the Settlement Agreement, (c) the status and resolution of any breaches, and (d) adaptive water management measures recommended and implemented pursuant to paragraph 4 of the Settlement Agreement. c. Section 4. Adaptive Water Management Measures: o The inteirt ofthe Adaptive Maqagement Provision is to provide a forum for the parties to resolve implementation issues without a party seeking an eoforcement order from IDWR or a disfiict court. The terms of the Settlement Agreement and this order approving the same as a mitigation plan contol and satisfu any mitigation obligations imposed by the Merthodolory Order on the parties to the Settlement Agreement. IDWR involvement in the described annual actions and enforcement will be limited to those actions describe.d herein. If the Agency is required by law to oonduct additional oversight, the parties would engage the IDWR in the necessary actions. o 2. On-goiag measures: a. Total groundwater diversions fromthe ESPA shall be reduced by 240,000 acre-feet annually startiry in20l6 and based on a 3-year rolling average going forward. This diversion reduction has beeu allocated pro-rata by agreement between the Districts. b. IGWA strall provide 50,000 acre-feet of storage through private leases from tlre Upper Snake Reservoir system to the SWC twenty-one (21) days after the date of allocation (as set by the Water Disfiict 0l V/atermaster). c. IGWA shall use its best efforts to continue existing conversions in Water Districts 130 and 140. d. IGWA's participating members shall not inigafe sooner than April I or later than Ostober 31 in any year. e. IGWA's participating members sball install approved closed conduit flow meters on all remaining tmmeasured and power connmrptive coefficient meastued ground water diversions by the beginning ofthe 2018 inigation season. The parties will determine the sequence to phase in this condition by grorurd uater disfrict each year. If an adequate measurement device is not installed by the beginning of the 2018 inigation season, a power consumption coefficient methodology will be utilized to waluarc and veriry the individual consumptive gmundwater use reduction condition. f. The parties intend based on modeling results that ttre foregoing actions, coupled with the State's commitnent to 250,000 AF of annual rccharge, will return the groundwater level to the average aquifer level of 1991-2001 in mutually agreed upon wells using mWually agread upon calculation techniques. A preliminary list of 19 wells has been agreed upon and \ilill be used (Exhibit A), recognizing that the list may be modified based on additional technical information. The groundwater level benchmarks and goal are as follows: i. Benchmark l: The goula water levels at the identified wells must be stabilized by April 2020 to 2015 ground water levels. ii. Benohmark 2: The Sound water levels atthe identified wells must increase by April 2023 to a pint halfqny betweetr 2015 ground umter levels and the 1991-2001 averege. (Benchmark 2) 3. Recovery Goal: The ground water levels at the identified wells must increase by April 2026to the 1991-2001 average. No groundwater user rryho belongs to and is in good standing with an IGWA member who is participating inthe SWC-IGWA Settlement Agreement will be subject to crutailment so long as the obligations rmder the SWC- IGWA Settlement Agreement identilied herein are being performed. Junior ground watsr rightholders who are notprotected from curtaitnent underthe SWC-IGWA Settlement Agreement and who do not otherwise have an approved Rule 43 mitigationplan which complies with CMRwill be subjectto conjunctive adminishationpursuantto the Dirrector's orderc under IDWR Docket No. CM'DC-2010-001, consistent with Conjunctive lvlanagement Rules, including, but not limited to 40.05. 4. This is a FINAL ORDER of the ageney. Any party may file a petition for reconsideration of this final order within fourteen (14) days of the service of this order. The agency will dispose of the petition for rcconsideration within twe,nty-one (21) days of its receipt or the petition will be oonsidered denied by operation of law pursuant to Idaho Code $ 67- 5246. 5. Unless the right to a hearing before the Director or the water resource board is otherwise provided by statute, auy pennn who is aggrieved by the action ofthe Director, and who has not previously been afforded an opportunity for a hearing on the matt€r shall be entifled to a hearing bbfore the Director to contest the action. The person shall file with the Director, within fifteen (15) days after receip of written notice of the astion issued by the Director, or receipt of actual notice, a written petition s'tating the grounds for contesting the action by the Director and requesting ahearing. See Idaho Code$ 42- 1701A(3). 6. Pursuant to sections 67-5270 and67-5272" Idaho Code, any party aggrieved by the final order or orders previously issued by the Director in this matter may appeal the final order and all previously isstred orders in the matter to distict court by filing a petition in the distict cowt of the county in which a hearing was held, the final agency action was takeq the party seeking review of the order resides, or the real property or personal property that was the subject of the agency action is located- The appeal must be filed within twenty-eight (28) days: (a) ofthe service date of the final oder; (b) of an order denying apetition for reconsideration; or (c) the failure within tw'enty-one (21) days to grant or deny a petition for reconsidenation" whichever is labr. See Idaho Code$ 67-5273, The filing of an appeal to distict court doe.s not in itself stay the effeotiveness or enforcement ofthe order under appeal. 7. Nothing in this Order strall modifr or change the rights of the parties to ttre settlement 4greement between the Surface Water Coalition and the participating goundwater disticts, dated June 30, 2015. This Order and mitigation plan deal with the rights and obligations ofthe parties to the Agrwrnent only. Dated this _ day of Maroh,20l6. GARY SPACKMAN Director EXHIBIT B Surface Water Coalition's and IGWA's Stipulated Mitigation Plan and Request for Order ORIGINAL Srrtr,s*mxr AcnmuENT ENTERED rNTo JUNE 30, 20 I 5 snrwEEN pARTrcIpATrNc MEMBERS otr TIIE Sunr.a,cp \il1run Coar,rrronl Axn P.Lnrrcrp^l,TlNc MEMBERs or rm IDAHO GROIIND WATER APPROPRIATORS, fNC.2 IN ssTTI.nMExt oF LITIGATION INVOLVING THE DISTRIBUTIoN oF WATER To THE MEMBERS oFTHE SURFACE wiC.rrR cOArrUON, THE PARTIBS AGREE AS FOLLOWS: 1. Objectives. a. Mitigate for material injury to senior surface water rights that rely upon natural flow in the Near Blackfoot to Milner reaches to provide part of the water supply for the se,nior surface water rights. b. Provide "safe harbot'' from curtailnent to me,rnbers of ground water disticts and irrigation disbicts that divert ground water from the Eastem Snake Plain Aquifo (ESPA) for the term of the Settlement Agree,ment and other ground water users that agree to the terms of this Settlement Agreement. c. Minimize economic impact on individual waterusers and the state economy arising from water supply shortages. d. Increase reliability and enforcement of water rrce, measurement, and reporting across the Eastern Snake Plain. e. Increase compliance with all elements and conditions of all water rights and increase enfore,e,rnent when there is not compliance. f. Develop an adaptivo groundwater managemeirt plan to stabilize and enhanoe ESPA levels to meet existing water right needs. 'The Surface Water Coalition members ('SWC') are A&B Irrigation District (A&B), American Falls Reservoir Distriet No. 2 (AFRD2), Burley Irrigation District (BID), Milner trrigation District (Milner), Minidoka Irrigation District (MID), North Side Canal Company (NSCC), and Twin Falls Canal Company (TFCC). The acronym "SWC" in the Settlement Agreernent is used for convenience to refer to all members of the Surface Water Coalition who are the actual parties to this Settlement Agreement. 2 rhe Idaho Ground Water Appropriators, Inc. ('IGWA") are Aberdeen-American Falls Ground Water Distriet, Bingham Grorurd Water District, Bonneville-Jefferson Ground Water District, Carey Valley Ground Water District, )efferson Clark Ground Water District, Madison Ground Water District, Magic Valley Ground Water District, North Snake Ground Water District, Southwest Irrigation District, and Fremont-Madison lrrigation District, Anheuser-Busch, United Water, Glambia Cheese, City of Blaekfoot, City of American Fdls, City of ]erome, City of Rupert, City of Heyburn, City of Paul, City of Chubbuck, and City of Hazelton. The acronym "IGWA" in the SettlementAgreement is used for convenience to referto all members of the Idaho Ground Water Appropriators, Inc. who are the actual parties to this Settlement Agreement. llPage 2. Near Term Practices. a, For20l5IGWAonbehalf ofitsmerrbodistrictswill acquireaminimumof 110,000 ac-ft for assignment as described below: i. 75,000 ac-ft of private leased storage water shall be delivered to SWC; it, 15,000 ac-ft of additional private leased storage water shall be delivered to SWC within 21 days following the date of allocation; iii. 20,000 ac-ft of common pool water shall be obtained by IGWA through a TFCC application to the commonpool and delivered to SWC within 21 days following the date of allocation; aud iv. Secure as much additional water as possible to be dedioated to on-going conversion projects at a cnst not to exceed $1.1 million, the cost of which will be paid for by IGWA and/or the converting membcrs. b. The parties stipulate the director rescind the April 16 As-Applied Order and stay the Aprit 16 3d Amended Methodology Order, and preserve all pendingrights and proceedings. c. '?art a'' above shall satisff all 2015 "in-season" mitigation obligations to the SWC. d. This Settlement Agreement is conditional upon approval and submissionbythe respective boards of the Idaho Ground Water Appropriators, Inc. ('IGWA") and the Surfaoe Water Coalition ("SWC') to the Director by August 1. e, If the Settlernent Agreement is not approved and submitted by August 1 the methodology order shall be reinstated and implemented for the remainder of the irrigation season. f. Parties will work to identiff and pass legislative changes needed to support the objectives of this Settlement Agreeurent, includiug, development of legislation memorializing conditions of the ESPA, obligations of the parties, and ground water level goal and benchmarks identified herein. 3. Long Term Practices, Commencing20l6. a, Corcurnptive Use Yolume Reduction. i. Total ground water diversion shall be reduced by 240,000 ac-ft annually. it. Each Ground Water and lrigation Distict with me,rnbers pumping from the ESPA shall be responsible for reducing theirproportionate share of the total annual ground water reduction or in conducting an equivalent private recharge activity. Private recharge activities cannot rely on the Wate,r District 01 common Rental Pool or credits acquired from third parties, unless otherwise agreed to by the parties. b. Annual storagewater delivery. ,. IGWA will provide 50,000 ac-ft of storage water through private leas{s) of water from the Upper Snake Reservoir system, delivered to SWC 21 days after the date of allocation, for use to the extent needed to meet irrigation 2lPage requirements, Any excess storage water will be used for targeted conversions and recharge as determined by SWC and IGWA. ii, IGWA shall use its best efforts to continue existing conversions in Water Dishicts 130 and 140. c. Irrigationseasonreduction, Ground water users will not irrigate sooner than April I or later than October 31. d. Mardatory Measurement Requirement. Installation of approvd closed conduit flow meter on all remaining unmeasured and power conzumption coefficient (PCC) measured ground water diversions will be completed by the begrnning of the 2018 irrigation season, Measurement device installation will be phased in over tbree years, by ground water distict, in a sequence determined by the parties. If an adequate measurement device is not installed by the begioning of the 2016 inigatton season, a cropping pattemr methodology will be utilized until suoh mea.suring device is installed. e. Ground Water l*vel Goal and Benchmarks. l'. Stabilize and ultimately reverse the tend of deolining ground water levels and retunr ground watsr levels to a level equal to the average of the aquifer levels from 1991-2001. Utilize groundwater levels in mutually agred upon wells with mutually agreed to calculation techniques to measure ground water levsls. A preliminary list of 19 wells has been agred to by the parties, recognizing that the list may be modified based on additional teohnical information. ii. The followingbenchmarks shall be established: o Stabilization of ground water levels at identified wells by Aptil2020, to 2015 ground water levels; o lnctease in ground water levels by April 2023 to a point half way between 2015 ground water levels and the ground water lwel goal; and o lncrease of ground water levels at identified wells by Apil2026 to the ground water level goal. iit. Develop a reliable method to measure reach gain trends in the Blackfoot to Milner reaoh within 10 years. iv. When the ground water level goal is ashieved for a five year rolling average, ground water diversion reductions maybe reduced or re,moved, so long as the ground water level goal is sustained. v. If any of the benchmarks, or the ground water level goal, is not achieved, adaptive measures will be identified and implemented per section 4 below. f. Recharge. Parties will support State sponsored managed recharge program of 250 KAF annual- average across the ESPA, consistent with the ESPA CAMP and the direstion in HB 3lPage 547. IGWA's contributions to the State sponsored recharge program will be targeted for infrastructure and operations above American Falls. g. NRCS Programs. Parties will support NRCS funded permanent water conservation prograrns. h. Conversions, IGWA will undertake additional targeted ground water to surface water conversions and/or fallow land projects above American Falls (target near Blackfoot area as prefened sites). i. Tlnnt Water Rtghts, The parties will participate and support the State in initiating and conducting discussions regarding long-term disposition of trust water rights and whether trust water rights should be renewod or cancelled, or if certain uses of trust water rights should be renewed or cancelled.j. T'ransfer Processes, Parties agree to meet with the State and water users to discuss changes in transfer processes within or into the ESPA. k. Moratorium Designations. State will review and continue the present moratoriums on new applications within the ESPA, including the non-hust water area. l. IDWRProcesses. Develop guidelines for water rigfut applications, transfers and water supply bank fransaotions for considsration by the IDWR. m. Steering Committee, i. The parties will establish a steering committee comprised of a representative of each signatory party and the State. it. Steering committee will be fonned on or before September 10,2015 and will meet at least once annually. iii. The Steering Committee will develop an adaptive management plan for responding to changes in aquifer levels and reaph gain trends, review progress on implementation and achieving benchmarls and the ground water goal. iv. A technical work group CTWG,) willbe created to support the Steering Committee. The TWG will provide technical analysis to the Steering Committee, such as developing a better way to predict and measure reach gains aud ground water levels, to assist with the on-going implementation and adaptive management of the Settlement Agreement. 4. Adaptive Water Management Measures. a. If any of the be,nchmarks or the ground water level goal is not met, additional recharge, consumptive use reductions, or other measures as reooflrmended by the 4lPage Steering Committee shall be imple,mented by the participating ground water parties to meet the benchmarts or ground water level goal. b. The SWC, IGWA and State recognize that even with ful1 storage supplies, present (2015) reach gain levels in the Near Blackfoot to Milner reach (natural flows) are not sufficient to provide adequate and sustainable water zupplies to the SWC. 5. Safe Harbor. No ground water user participating in this Settleurent Agree,ment will be subject to a delivery call by the SWC mernbers as long as the provisions of the Settlement Agreernent are being implemented. 6. Non-participants. Any ground water user not participating in this Settlement Agree,lnent or otherwise have another approved mitigation plan will be subjeot to administration. 7. Term. This is a perpetual agreement. 8. Btndtng Effect. This Agreement shall bind and inure to the benefit of the respective successofir of the parties. 9. Entire Agreement. This Agreeurent sets forth all understandirigs between the parties with respect to SWC delivery call. There are no other understandings, coven&nts, promises, agreements, conditions, either oral or written between the parties other than those oontained herein. The parties expressly reserve all rights not settled by this Agreement. 10. Effect of Hcadings. Headings appearing in this Agreement are ioserted for convenience and reference and shall not be construed as interpretations of the text. 11. Effective Date. This Agreement shall be binding and effective when the following events have occurred: a. This Agreement is approved and executed by the participating parties consistent with paragraph 2.e. above; and b. IGWA has assigned all of the storage water required byparagraph2.a.i., ii., and iii. to the SWC byJuly 8,2015. The parties have executed this Agreement on the date following their respective signatures. 5lPage RACIM OISON NIIE BIIDGE A}ID BAILEY, CHAR]ERED /d-I lc.Date Attorney for Idaho Ground Water Appropriators, Inc. b IDAHO GROI,'}TD TTIATER APPROPRI,ATORS, NC. ,0/r Presidcmt I II,ETCHER.LAW OFFTCts W. KFffi Ddo On Behalfoftb Stnmoe Wstr Ooalthn 3*/{ I t I I t iI I Ii SlPage BARKER ROSHOLT AI.ID SIMPSON LLP K. On Behalf of the Surface Water Coalition ( 9lPage The following signature pages are for the August I Deadline 10 lPage TLSICHER W.lkril MINIDOKA IRRIOATION DISTRICT /{7 Date AIvIBRICAI'I FAttS RBSERVOIR DISTRICTNO, 2 Titlo: BY: DatoZ-?-l{ Drtn 7-1 -9. lllPaeo BURLEY IRRICATION DISTRICT BY: BtIs: fretl'l U: lTrtwwr O.tlPage Title: MILNER IRRIGATION DISTRICT BY: t'"{u Date:? /o"./rrr* , *i ...r:#'\ 12.2 lPage NORTH STDE CANAL COMPAI.IY BY: Tifle:DatE:a/2,"/r r(/ 12,3 lPage TWIN FATIS E.ANAT COMPANY Thlc BY: Ddc tll.tllPage ABERDEEN.AM E RICAN FALLS G RO U ND WATER DISTRICT 7--/{ Nicl Behrend Chairman Date 13 lPage BINGHAM GROUND WATER DISTRICT Craig Chalrman 14 lPage BON NEVI LLE.JEFFERSO N GROUND WATER DISTRICT \N Dane Watkins Chairman Date 15 lPage CAREY VALLEY GROUND WATER DISTRICT Hansen Chalrman 16 lPage JEFFERSON C1ARK GROUND WATER DISTRICT Kirk Jacobs Date Chalrman /6 lTlPage MADISON GROUND WATER DETR|CT Webster Chalrman Y-as-/{ Date lSlPage MAGIC VALI.EY GROUND WATER DFTRICT Dean StEvenson Chairman -l t"l )pls Date 19 lPage NORTH SNAKE GROUND WATER DISTRICT Cha 20 lPage FREEMOTVT MADISON I RRIGATION D ISTRI T br* lJ Date J-8€Y+eanaSetr C ha,,'ap"4"1 21 lPage SOUTHWEST IRRIGATION DISTRICT RANDY BROWN Chairman Date 22lP age EXHIBIT C Surface Water Coalition's and IGWA's Stipulated Mitigation Plan and Request for Order ADDENDUM TO SETTLEMENT AGREEMENT This Addendum To Settlement Agreemont ("Addendum Agreemenf) is e,ntered into betwoen the parties to the Settlernent Agreement Entered Into June 30, 2015, Between Participating Members of the Surface Water Coalition and Participating Members of ldaho Ground Water Appropriators, Inc., ('Settlernent Agreernent"), RECTTALS WHEREAS, all members of tle Surface Water Coalition, exoepting A&B Irrigation District, and all eight Ground Water Districts and Fremont-Irrigation Dishiot, executed the Settlement Agreement (Ex. A) by August 1, 2015; and TWHEREAS, al1 parties wish to clari$ certain issues related to the settleme,nt discussions; WHEREAS, the parties wish to address and resolve this issue in this Addendum Agreernent, COVENANTS NOW THEREFORE, in consideration of the above recitals and the mutual agreements contained herein, the parties to the Settlement Agreernent further agrce as follows: 1. Incorporation of Recitals. The Reoitals set forth above are an integral part of this Addendum Agreernent ard are fully incorporated herein by this referemce. 2, Area of Common Groundwater Supply. All parties in the Settlement Agreement resewe the riglrt to participate in any administrative or other proceeding to establish a new area of common groundwater supply if the existing Corjunctivo Management Rule 50 boundaryis rescinded. 3. Legislation. As conternplated in the Settlement Agreemenl, all parties have a right to fully participate in the drafting and passage of any legislation proposed to implement the Settlernent Agreement, 4, Binding Effect. This Agreemnent shall bind and inure to the benefit of the respective successors of the parties. 5. Entlre Agreement. This Agreement and the Settlement Agreement set forth all understandings between the parties. There are no other understandings, covenants, promises, agreements, conditions, either oral or written between the parties other than those contained herein and in the Agreement betwee,n A&B and IGWA dated . The parties expressly reserve all rights not settled by this Agree,rneirt. ADDENDUMTOSETTLEMENTAGREEMENT 1 otrtr{srlcficu f,fld rofersnto rnd *dl nfi hn sffi[ud m ilrttrp$mftrnr of ilre ln$. Ihenstirn lruus ururmd thln rt$E{fitett ou tlrc dilt ftllonhglMr mryodlw rljluurec frIffif,tfitwtffi A,mrlorn Frlb nsonrok Dflildrfi t-{u x *lt &odr IJME Pmddat* I I I I I i I BrdoyhrlgdonDlstloo Chdmaa ADEilU'MrcSjrfl.BITENTAGN[[UmlT T Ifihe TrrigdoeDtufitof, Chrirmrr IS A0mI.mIOSITIf,MUYTAGEffiDTXE{f 4 I I lddehdgdmDtutld Chqfi'rttm Irffi h ) I AomlDurrcgtilflerurTffmrrMH{T 6 Nor& Sidccsnd Coryny ADDETIDUilITOffiII.EMBTTAGNMNf,NT 6 Trdnfa[s ful Conpuy DmBhgumalffi Ch&nm rr D6o TDDEIIDITilIOSEilTIIMU{TA@UtrXIII 1 FALLS GROTJI'{D WATBR DISTRICT Date Chaiman ADDENDUMTOSEITLEIVIENTAGRDEMENT 8 / BINGHAM GROI'I{D WAIER DISTRICT O# g, ?ets Chdg Evms Chemm DatE ADDMDUM TO WrII,ED{ENTAGNSUUMM 9 BONNEVILLE.JEI.FERSON GROUND WATER DISTRICT \*"\N.^"$lr\ DaneWatkius Chairom Date ADDEI{DUMTOSErII,EilIn{TAGAEX]ME!{T 10 CAREY VALTJEY GROU}$D WATtsR DISTRICT /o 57 Chairmao ADDENDUM TO SEITI.&MMM AGRENUENT 11 JEFFERSON CI.ARK GROI'ND 1VATER DISTRICT M KirkJacobs Chaiman Date ADDENDUM TO SETTLEDTENT AGREEMENT 12 TNDISON GROT'}ID WATER DISIRJCT Wok Daie Chainnm ADDENDUMTOSETILEhIEIMACnIEN{INT 1T L,IAGIC VALLEY GROITI{D WATER DISTRIC-T lb 'l a6t5 Stovason Daic Chairmaa ADDEIIDUM TO gETrI,EilIE!{T AGAEENIET,{T 14 NORfiI SNAKE GROIJND WA]ERDISTRICf, co 1 lotS Date ADDEilDUMTOSDTII,DMEITTIAGNDESIENT 15 ERBEMOI\TT MADITION IRRIGATION DISTRICT il&rrtrr J t, ${ G l'a.ia Date fl,., kr^lJ ,4"d ADDEI{DUM TO SEITI;EME!{T AGREDMENT 16 EXHIBIT D Surface Water Coalition's and IGWA's Stipulated Mitigation Plan and Request for Order AGREEMENT This Agreement is made tni, /fl Ouy of hclob.r 20L5, by and between A&B lrigation Distict ("A&8") and the Idaho Ground Water Appropriators, Inc., Aberdeen- American Falls Ground Water Dishict Bingham Ground Water Dishicf Bonneville-Jefferson Ground Water Dishict, Carey Valley Ground Water District, Jcfferson-Clark Ground Water Dishict, Madison Ground Water Dishict, Magtc Valley Ground Water Dshict North Snake Ground Water Distict, and Fremont-Madison Lrigation Disfiict (referred to collectively herein as the *Ground Water Disticts'). RECITALS WHEREAS, all members of the Surfaoe Water Coalition, except A&B Irrigation District, and all eight Ground Water Disfricts and Fremont-Irrigation Distriot, exeouted the Settlement Agreement (Ex. A) by August l, 2015; and WHEREAS, disputes have arisen concerring the scope of A&B's participation in the S e ttl ement A gr e ement ; and WHEREAS, the parties wish to address and resolve these issues in this Agreement. COVENANTS NOW THEREFORE, in consideration of the above recitals and the mutual agreements oontained herein, the parties agree as follows: 1. Incorporatlon of Recitals. The Recitals set forth above are an integral pafr of this Agreement ard are fully incorporated herein by this reference. 2, A&B Irrigation District Surface Water Delivery Call. A&B agrees to partictpate rnthe Settlement Agreement as a surface water right holder only. The obligations of the Ground Water Districts set forth in Paragraphs 2 - 4 of the Settlement Agreernent do not apply to A&B and its ground water rights. A&B agrees to not make a surface water delivcry call against junior-priority ground water rights held by participating me,mbers of the Ground Water Disbicts as set for& in Paragraph 6 of the Settlement Agreement. 3. A&B lrrigatlon District Ground Water Dellvery Call. A&B further agrees to not make a ground water delivery call against junior-priority ground water rights held by participating members of the Ground Water Districts. 4, A&B Irrigatlon District "Soft Converslons." A&B agrees to implement approximately 3,000 acres of "soft conversions" within its project. A&B has already developed approximately 1,500 acres and is currently in the process of developing an additional 1,500 acres to receive water through a new pumping plant and pipeline project to be completed in the future. 1SETTLEMEIYT AGREEMENT (A&B / GROTTND WATTR DISTRICTS) 5. Grourd Weter Dbtr{ctr' Implemontrflon ol Sdasfi Agruawtt. Ttle safo harbor idontiffd abovo is conditionodupon tho Ground Wator Distiota implomenting tho Settlenent Agreement in accodanoc with its terru. 6. Ground Wrtsr Dhtrlctt IDollvery Callr. The oafo harbor providotl by A&B abovo shall bo null and void agafurt any Grcund Srots Dirhiot ond/or again* any partioipating membu of a Ground \lYatq Disfiict ttat filor a eurfaoe or ground water dclivery call against A&B's ground wator rights. 7. Grcund Watrer Recharge PreJocts A&B and ths &ound Watcr Distuicts agreo to oooperato md wo*togpftc b id€ofiry ad impl€mmt roohqgp psojectt wi6in or ncar A&B'e.inigadonpmjost fratbensflt aqrdftrl€vels, aodfte smtinolwo[s idmffffdinthe futtlerut Agreenut. 8. Blndtng Eficct. This Agl€etm€ot Bball bhd aod inue b fto bmsfit of the respootirre rtrocosron of tho partim 9. EnfrnAgroommt. Thic Agrmmt e6 frsthalundcrshodingE bcfivcotrtho parties. There re no oftc undeinfinrlingr, covonstrll, ponisoq agrtemenrt, condltims, oifter ualorwritmbe&voon&eprtiosotrsrfrmtLoeoc,onieinedhwin" Ttopartioscryr€ssly rusurre all righb not cafiled by this Agr€€m€mt 10. Effec{ of Heedingp. il€adiry appearing in&is Agrc€mcnt are insord fm convmieoco and rofemco and shalt not be eonsfirrcd as itrtupletdiotrs of the text Ito partics have exoosodthis Agrcement on fte date fo[owiqg their respoctive eignafiroa. A&A IRRIGAfiONDIITRICf, Mohlmm Ihte Ctairman A 2SETTI,EilIENT AGBIEMEIiIT (A&B / GROI]NI' WAITN, DISTf,ICIB) IDAEO GROT NDWATER APPROPRTATOR S, rNC.: ABERDEEN-AMERICA}.I FALIS GROUND VTATER DISTRICT lo- ? Behreild Date Chairman 3sETrr,ur[E]{T aGREEMENT (A&B / GROITND MTER DISIRICTS) ....{.;,. : . " ..:-...-tr"; BINOHAM GROTJND WATEA. DISTRTCT Chaiman q lPs Crdg 1smTlx,I[rrB$r acnmumrr orffi / GnoIntD walln, DIgmrclg) BONNEVILLE-JEFEERSON GROI'ND WATER. DISTRICT \o**\N"* .S\s DaaeWatkios Chafuman Date 5SETIT,EITIE!{T AGREEI}IENT (AAD / GROITND WAIER DISIRrCf,S) CAREY VALLET GROI.'I{D TTIATF;R DISTRICT o -t 5 Chairman 6SETTI,ITITIIITT AG'REEMEIqT (A&D / GROI'ND WATIn DISInICIB) JEFFERSON CIARK GROI'ND VTATER DISITRICT d KirkJambs Chairman Date 7SETILmUEB|T AGREEMET{T (A&B / GIROITNL WATEn. DEIBICTts) MADISON OROT'ND WAItsR DISTRICT l5 Date Chsfoman 8ESTU,EMENT AcRmrII[IT (AOD / ffiOInW WAIIR DIEInICIE) [dAcIC V'ALLEY GROUI{D VTATER DISTRICT 1o eolS Dcan Datc Chairmm 9sETrr,m[B{T aGREEME!{T (AS'B / ffiOIr!{D WATEn.DXSTRTCTS) NORTTI SNAIG GROTJT{D \TTATER DITITRICT gETr,utilENT .[GREmME!{T (A3'B / mOUND WATEn nISIBTCTE)10 FREEI\{ONT ITIADISON IRRIGATION DISTRICT Utffi8p of,f h*'p" r<^1do?;ff raq^\ J C SETTT,EilIENT ^AGREDMENT (A&B I GROUNT) WATER DISTRICTS)tr1 N Elz Fd = Ht*rU HH ATTACHMENT 2 Bonneville Jefferson Ground Water District PO Box 51121 ldaho Falls, lD 83405 MayQ 2022 DearWater User, Drought conditions ln ldaho for the past two years have affected the Ground Water Dlstrlcfs ability to mltlgate forthe Surftce Water Coalitlon Dellvery Call through our Pumplng Reduction Plan. The distrlct has not met the requlred reduction volume in 2020 and 2021. On Aprll 20,2022,the dlrector of the department of water resources signed a curtallment order requlring all non-mltlgated water rlghts junior to December 25, L979, to be curtailed by May 1. lf not for our Pumping Reductlon Plan, all junior water rlghts ln our dlstrict would be affiected by this call. Because the distrlct has not met the rcquired reduction volume for the past two yearc, it is imperati\re that we meet that requlrement for the 2022 season. The dastrict recently doubled the requircd reduction from irrigatorc. lt is only fair to requlre non-irrlgatlon unter rlghts to share the burden of these reductions. The district board of directorc has decided to requlre all non-inigataon $,ystems to pump at or below their baseline pumping. Any pumping more than your basellne will result ln an ovenge assessment of 5100 per are-ft. Your pumping volumes are measured against the 201G2014 average (baselinel pumping for every well in our district. All irrigators are required to reduce 1G2096 from their baseline. ln the past, no limlts have been lmposed on pumping from non-inigation systems. lf you have questions about your basellne pumplng or need to establlsh a basellne due to lack of usage data, please contact WaterwellConsultan6 208{0+1281. We phad wlth you to do whateveryou can to consewe water in2O22. Slncerely, Bonneville-Jefferson GWD Board of Directorc Stephanie Mickelsen - Director Division 2 - Chair CarlTaylor- Director Dfuislon 1- Co Chair Kirt Schwieder- Director at targe - Treasurer Seth Cannon - Director at large U tott- Dlrector Division 3 - Secretary