20230206Justin Palfreyman Direct.pdf

Preston N. Carter, ISB No. 8462
Rebecca M. Fitz, ISB No. 11874
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
13988.14[16603997_6.docx]
Attorneys for Gem State Water Company, LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
GEM STATE WATER COMPANY, LLC FOR
APPROVAL OF ACQUISITION OF THE
ASSETS OF THE WATER BUSINESS OF
VALIANT IDAHO, LLC
Case No. __________
DIRECT TESTIMONY OF JUSTIN PALFREYMAN FOR
GEM STATE WATER COMPANY, LLC
FEBRUARY 6, 2023
RECEIVED
Monday, February 6, 2023 12:36:56 PM
IDAHO PUBLIC
UTILITIES COMMISSION
GSW-W-23-01
PAGE 1 OF 7
J. PALFREYMAN, DI
GEM STATE WATER COMPANY
BACKGROUND 1
Q. Please state your name and title. 2
A. Justin Palfreyman, President of Gem State Water Company, LLC (“Gem State Water”). I 3
also serve as President of NW Natural Water of Idaho, LLC (“NW Natural Water of Idaho”) and 4
NW Natural Water Company, LLC (“NW Natural Water”). 5
Q. Please summarize your professional experience and educational background. 6
A. I joined NW Natural, which entity I define later in my testimony, as Vice President of 7
Strategy and Business Development in 2016 and have served as President of NW Natural Water 8
since 2018. I have over 20 years of professional experience in general management, strategy, 9
finance and corporate development functions. Prior to joining NW Natural, I worked as a 10
Director in Lazard’s Power, Energy and Infrastructure Group in New York, where I provided 11
strategic and financial advice to utilities, corporations, financial investors and government 12
clients. My advisory assignments related to general strategic advice; mergers, acquisitions and 13
divestitures; raising capital; restructurings; corporate preparedness/takeover defense; and capital 14
structure optimization. Prior to Lazard, I worked in the Infrastructure Investment Banking Group 15
at Goldman Sachs in New York. I also previously held various positions in finance, strategy and 16
business development at both Apex Learning and Accenture in Seattle, Washington. 17
I hold an Master’s of Business Administration from the University of Chicago Booth 18
School of Business, a Master’s of Public Policy from The University of Chicago Irving B. Harris 19
School of Public Policy and a Bachelor’s of Business Administration from Pacific Lutheran 20
University. 21
As to water and wastewater utility regulation, my experience including acquiring 22
numerous water and wastewater utilities in the five states in which NW Natural Water operates, 23
PAGE 2 OF 7
J. PALFREYMAN, DI
GEM STATE WATER COMPANY
obtaining the relevant public utility commission’s approval of those acquisitions, and 1
successfully integrating those systems into the NW Natural Water family of companies and 2
making the requisite investments in those utilities to keep water and wastewater service reliable, 3
safe, and affordable for the customers we serve. 4
Q. What is the purpose of your testimony? 5
A. My testimony is offered to provide the Idaho Public Utilities Commission (the 6
“Commission”) and Commission Staff with information regarding Gem State Water’s proposed 7
acquisition of the assets of the Water Business (the “Water Business Assets”) of various parties 8
associated with Valiant Idaho, Inc. and TIC Utilities, LLC (the “Selling Parties”). 9
Q. What do you mean by the term “Water Business?” 10
A. The Selling Parties own and operate a water supply and distribution system. In this 11
testimony, I use the term “Water Business” to describe the Selling Parties’ water supply and 12
distribution system, consistent with how the term “Business” is defined in the Asset Purchase 13
Agreement (“Agreement”), attached as Exhibit 1.1 14
Q. Please describe NW Natural Water, and the relationship among NW Natural Water, 15
NW Natural Water of Idaho, Gem State Water, and other related companies. 16
A. NW Natural Water is a wholly owned subsidiary of NW Natural Holding Company 17
(“NW Natural Holdings”). NW Natural Holdings, which is headquartered in Portland, Oregon, 18
is a publicly owned company with a market cap of approximately $1.8 billion. It has revolving 19
credit facilities aggregating to approximately $200 million. NW Natural Holdings’ Form 10-K 20
for 2021 filed with the Securities and Exchange Commission on February 25, 2022, is attached 21

1 The Asset Purchase Agreement is filed as “Confidential” pursuant to the Commission’s rules.
PAGE 3 OF 7
J. PALFREYMAN, DI
GEM STATE WATER COMPANY
as Exhibit 2. NW Natural Holdings has provided safe, reliable and affordable utility services for 1
164 years through its wholly-owned subsidiary, Northwest Natural Gas Company (“NW 2
Natural”). Through its history, NW Natural Holdings and its subsidiaries have developed core 3
competencies that include constructing and maintaining critical utility infrastructure, providing 4
exemplary customer service, ensuring safe and reliable service, and effectively managing 5
regulated utilities. 6
NW Natural Water was created to own and operate water utilities, through subsidiaries, 7
in Idaho, Arizona, Oregon, Texas and Washington. NW Natural Water also has significant 8
financial assets. It currently owns and operates nine water utilities, including Gem State Water 9
(through NW Natural Water of Idaho), and Falls Water Co., Inc. (“Falls Water”) in the area 10
around Idaho Falls, Idaho. 11
Gem State Water is a wholly owned subsidiary of NW Natural Water of Idaho, which is 12
in turn wholly owned by NW Natural Water. Gem State Water was created to operate water 13
utilities in Idaho. Gem State Water and NW Natural Water of Idaho have access to the financial 14
resources and the utility expertise of NW Natural Water, NW Natural Holdings and their 15
affiliates. 16
An organizational chart illustrating NW Natural Holdings’ corporate structure is attached 17
as Exhibit 3. The chart has been designated “Confidential” per Commission rules. 18
Q. Please describe NW Natural Water’s interest in, and recent acquisitions, in the 19
water sector. 20
A. NW Natural and its affiliates have continuously looked at growth opportunities 21
throughout its 164-year history. In 2015, NW Natural Holdings undertook a comprehensive 22
strategic review process to identify and evaluate potential growth opportunities that, among other 23
PAGE 4 OF 7
J. PALFREYMAN, DI
GEM STATE WATER COMPANY
criteria, would offer a risk profile consistent with our core utility business and a long-term 1
opportunity to grow beyond our historical business. The outcome of the strategic review process 2
was a strategy and plan to form NW Natural Water and pursue opportunities in the water and 3
wastewater utility and infrastructure sectors, in addition to NW Natural Holdings’ ongoing focus 4
on its gas utility and infrastructure business. We believe that a water and wastewater strategy is 5
a compelling fit for NW Natural Holdings because it builds on the Company’s core competencies 6
of constructing, operating and maintaining infrastructure, providing best-in-class customer 7
service, ensuring safety and reliability, and effectively managing a regulated utility. 8
Water and wastewater infrastructure in the United States is often in operation well 9
beyond its useful life and often suffers from substantial deferred maintenance, providing a 10
compelling long-term investment opportunity for NW Natural Water that can benefit our utility 11
customers. Water utilities are facing the need for substantial capital investment to maintain their 12
systems, enhance service quality, and support future population growth. Given the highly 13
fragmented nature of the water and wastewater sectors (e.g., there are over 70,000 water and 14
wastewater utilities in the U.S.), in many cases, these utilities do not have the resources or 15
expertise to invest in and execute on the upgrades, maintenance and expansions required. NW 16
Natural Water sees an opportunity to add value with respect to the management, design, 17
operation and maintenance of water and wastewater distribution assets to achieve significant 18
economies of scale through integrated planning processes, shared services, technology 19
investments, and billing systems. NW Natural Water understands the role of the Commission in 20
ensuring that these investments and activities are to the benefit of customers and are required to 21
prudently operate the system. NW Natural Water shares this mindset, and already operates in an 22
environment where this regulatory construct applies. NW Natural Water’s subsidiary, Gem State 23
PAGE 5 OF 7
J. PALFREYMAN, DI
GEM STATE WATER COMPANY
Water, has acquired the assets of Spirit Lake East Water Company, Lynnwood Water, Diamond 1
Bar Estates, LLC, Bar Circle “S” Water, Inc., Happy Valley Water System Inc., Bitterroot Water 2
Co., Inc. and Troy Hoffman Water Corporation, Inc. These acquisitions, and the continued 3
operation of these water utilities, were seamless, with no disruptions to customers’ service. NW 4
Natural Water will bring this experience to the Water Business customers. For example, Gem 5
State Water provides 24-hour response to repairs or water quality issues. Customers can call the 6
Gem State Water office phone number, [phone], and the call will be forwarded to an 7
answering service after hours or whenever the line is not able to be answered during office hours. 8
Q. Do NW Natural Water and Gem State Water intend to make any changes to the 9
Selling Parties’ contractors as a result of its acquisition of the Water Business Assets? 10
A. Yes. Gem State Water’s employees will assume the roles currently performed by the 11
Selling Parties and any contractors. Gem State Water employees, who are based near the Selling 12
Parties’ current locations, have the business experience and water system expertise to operate 13
and maintain the Water Business Assets. Leslie Rayner, the licensed water system operator for 14
Gem State Water, will serve as the licensed water system operator for the water system currently 15
operated by the Selling Parties. Ms. Rayner holds license numbers DWT1-15876 and DWD1-16
14223, and her business address is 10 250 Northwest Blvd., Suite 203, Coeur d’Alene, Idaho 17
83814. 18
THE PROPOSED TRANSACTION 19
Q. Please describe the Selling Parties. 20
A. The Selling Parties own water supply and distribution systems that serve approximately 21
148 residential customers in or near Bonner County, Idaho. The area currently served by the 22
Selling Parties is in the general vicinity as the territory served by Gem State Water. The Selling 23
PAGE 6 OF 7
J. PALFREYMAN, DI
GEM STATE WATER COMPANY
Parties’ customers are currently billed on a quarterly basis throughout the year. Gem State Water 1
intends to maintain this schedule for the time being. 2
Q. Are the Selling Parties currently a regulated utility? 3
A. No, the Selling Parties are not currently operating as a regulated utility and do not hold a 4
CPCN with respect to the Water Business. Certain Selling Parties received a letter from the 5
Commission inquiring as to its regulated status. If the Transaction is approved, the system will 6
be operated as a regulated public utility. 7
Q. Please describe NW Natural’s interest in the Water Business Assets 8
A. Acquiring the Water Business Assets fits squarely into NW Natural Water’s growth 9
strategy discussed above. Like many water systems, the system owned by the Selling Parties is 10
in need of capital investment to support system growth and maintain system integrity. NW 11
Natural has the financial strength to support these needs. 12
Q. Please describe the proposed transaction to acquire the Water Business Assets. 13
A. Subject to the Commission’s approval and other conditions, under the Agreement, Gem 14
State Water will acquire all the assets related to the Water Business from the Selling Parties. As 15
stated above, if the Transaction is approved, Gem State Water will operate the water system. 16
Leslie Rayner, the licensed water system operator for Gem State Water, will serve as the licensed 17
system operator. Transaction-related costs related to the acquisition have been incurred by NW 18
Natural Holdings, not by Gem State Water, related to activities including due diligence, 19
environmental consultants, research, legal, travel and negotiations. The costs will not be passed 20
to Gem State Water and will not be included in any rate case filings. 21
PAGE 7 OF 7
J. PALFREYMAN, DI
GEM STATE WATER COMPANY
Q. Are you seeking to increase rates for the Selling Parties’ customers as a 1
result of the acquisition? 2
A. No, we are not. We understand that Idaho law authorizes the Commission to provide for 3
acquisition adjustments in certain circumstances for entities acquiring water utilities in the State, 4
but we are not seeking an acquisition adjustment with this particular Transaction, and we will not 5
seek any increases to rates as part of this Transaction. Any future rate increases would be related 6
to prudent capital investments or other increased expenses, and would need to be justified at that 7
time. 8
Q. Does this conclude your testimony? 9
A. Yes. 10
Preston N. Carter, ISB No. 8462
Rebecca M. Fitz, ISB No. 11874
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
13988.14[16607887_1.docx]

Attorneys for Gem State Water Company, LLC

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
GEM STATE WATER COMPANY, LLC FOR
APPROVAL OF ACQUISITION OF THE
ASSETS OF THE WATER BUSINESS OF
VALIANT IDAHO, LLC

Case No. __________

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CONFIDENTIAL EXHIBIT 1 TO ACCOMPANY THE
DIRECT TESTIMONY OF JUSTIN PALFREYMAN

EXHIBIT FILED UNDER SEPARATE COVER
Preston N. Carter, ISB No. 8462
Rebecca M. Fitz, ISB No. 11874
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
13988.14[16607887_1.docx]

Attorneys for Gem State Water Company, LLC

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
GEM STATE WATER COMPANY, LLC FOR
APPROVAL OF ACQUISITION OF THE
ASSETS OF THE WATER BUSINESS OF
VALIANT IDAHO, LLC

Case No. __________

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 2 TO ACCOMPANY THE
DIRECT TESTIMONY OF JUSTIN PALFREYMAN
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Exhibit No. 2
Page 1 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 2 of 206
J. Palfreyman, DI
Gem State Water Company
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Dj[c 6<-LkWdj_jWj_l[ WdZ LkWb_jWj_l[ ?_iYbeikh[i <Xekj HWha[j M_ia 6/
Dj[c 7-A_dWdY_Wb NjWj[c[dji WdZ Nkffb[c[djWho ?WjW 61
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Dj[c 8<->edjhebi WdZ KheY[Zkh[i 023
Dj[c 8=-Jj^[h Dd\ehcWj_ed 023
Dj[c 8>-?_iYbeikh[ M[]WhZ_d] Aeh[_]d Ekh_iZ_Yj_edi j^Wj Kh[l[dj Ddif[Yj_edi 022
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Dj[c 00-@n[Ykj_l[ >ecf[diWj_ed 026
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Dj[c 03-Kh_dY_fWb <YYekdjWdj A[[i WdZ N[hl_Y[i 027
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NDBI<OPM@N 034
2
Exhibit No. 2
Page 3 of 206
J. Palfreyman, DI
Gem State Water Company
7;>BB1AH >6 C5A<B 1=4 122A5E91C9>=B
<AP?><bbemWdY[ \eh AkdZi Pi[Z ?kh_d] >edijhkYj_ed
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WdZ j[hci e\ i[hl_Y[+ Wced] ej^[h cWjj[hi
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F=F[bie,=[Wl[h K_f[b_d[+ e\ m^_Y^ 0/$ _i emd[Z Xo F= K_f[b_d[ >ecfWdo+ W ikXi_Z_Who e\ IIB A_dWdY_Wb >ehfehWj_ed
GD=JM GedZed Ddj[hXWda J\\[h[Z MWj[
3
Exhibit No. 2
Page 4 of 206
J. Palfreyman, DI
Gem State Water Company
GIB G_gk[\_[Z IWjkhWb BWi+ j^[ Yhoe][d_Y b_gk_Z \ehc e\ dWjkhWb ]Wi- Oe h[WY^ W b_gk_Z \ehc Wj Wjceif^[h_Y fh[iikh[+ dWjkhWb ]Wi
ckij X[ Yeeb[Z je Wffhen_cWj[bo d[]Wj_l[ 15/ Z[]h[[i AW^h[d^[_j
HeeZo&i HeeZo&i Ddl[ijehi N[hl_Y[+ DdY-+ Yh[Z_j hWj_d] W][dYo
I<Q I[j <ii[j QWbk[
IB?IWjkhWb BWi ?_ijh_Xkj_ed+ W i[]c[dj e\ Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo WdZ Iehj^m[ij IWjkhWb BWi >ecfWdo j^Wjfhel_Z[i h[]kbWj[Z dWjkhWb ]Wi Z_ijh_Xkj_ed i[hl_Y[i je h[i_Z[dj_Wb+ Yecc[hY_Wb+ WdZ _dZkijh_Wb Ykijec[hi _d Jh[]ed WdZ
Nekj^m[ij RWi^_d]jed
IB? HWh]_d < \_dWdY_Wb c[Wikh[ ki[Z Xo IR IWjkhWb&i >J?H Yedi_ij_d] e\ IB? ef[hWj_d] h[l[dk[i b[ii j^[ WiieY_Wj[Z Yeij e\ ]Wi+h[l[dk[ jWn[i+ WdZ [dl_hedc[djWb h[Yel[h_[i
IIB A_dWdY_Wb IIB A_dWdY_Wb >ehfehWj_ed+ W m^ebbo,emd[Z ikXi_Z_Who e\ IR CebZ_d]i
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IRI @d[h]o IR IWjkhWb @d[h]o+ GG>+ W m^ebbo,emd[Z ikXi_Z_Who e\ IR CebZ_d]i
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4
Exhibit No. 2
Page 5 of 206
J. Palfreyman, DI
Gem State Water Company
OhWdifehjWj_ed N[hl_Y[N[hl_Y[ fhel_Z[Z m^[h[Xo W Ykijec[h fkhY^Wi[i dWjkhWb ]Wi Z_h[Yjbo \hec W ikffb_[h Xkj fWoi j^[ kj_b_jo je jhWdifehj j^[
]Wi el[h _ji Z_ijh_Xkj_ed ioij[c je j^[ Ykijec[hwi \WY_b_jo
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lWh_WdY[i \hec Wl[hW][ m[Wj^[h
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mWj[h Xki_d[ii[i m_j^ h[if[Yj je hWj[i WdZ j[hci e\ i[hl_Y[+ Wced] ej^[h cWjj[hi
5
Exhibit No. 2
Page 6 of 206
J. Palfreyman, DI
Gem State Water Company
6>AF1A4%;>>:9=7 BC1C5<5=CB
O^_i h[fehj YedjW_di \ehmWhZ,beea_d] ijWj[c[dji m_j^_d j^[ c[Wd_d] e\ j^[ P-N- Kh_lWj[ N[Ykh_j_[i G_j_]Wj_ed M[\ehc <Yj e\ 0884+ m^_Y^ Wh[ ikX`[Yj je j^[ iW\[
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ijWj[c[dji h[]WhZ_d] j^[ \ebbem_d]9
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r Wiikcfj_edi+ ][d[hWb_pWj_edi WdZ [ij_cWj[i:
r ed]e_d] Yedj_dkWj_ed e\ fWij fhWYj_Y[i eh fWjj[hdi:
r \kjkh[ [l[dji eh f[h\ehcWdY[:
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r bWXeh h[bWj_edi WdZ meha\ehY[ ikYY[ii_ed:
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r ]Wi h[i[hl[i:
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r [d[h]o feb_Yo+ _d\hWijhkYjkh[ WdZ fh[\[h[dY[i:
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r b_gk_Z_jo+ \_dWdY_Wb fei_j_edi+ WdZ fbWdd[Z i[Ykh_j_[i _iikWdY[i:
r lWbkWj_edi:
k fhe`[Yj WdZ fhe]hWc Z[l[befc[dj+ [nfWdi_ed+ eh _dl[ijc[dj:
r Xki_d[ii Z[l[befc[dj [\\ehji+ _dYbkZ_d] d[m Xki_d[ii b_d[i ikY^ Wi kdh[]kbWj[Z h[d[mWXb[ dWjkhWb ]Wi+ WdZ WYgk_i_j_edi WdZ _dj[]hWj_ed j^[h[e\:
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r f_f[b_d[ YWfWY_jo+ Z[cWdZ+ beYWj_ed+ WdZ h[b_WX_b_jo:
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r Yecf[j_j_ed:
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r [ij_cWj[Z [nf[dZ_jkh[i+ ikffbo Y^W_d WdZ j^_hZ fWhjo WlW_bWX_b_jo WdZ _cfW_hc[dj:
r Yeiji e\ Yecfb_WdY[+ WdZ ekh WX_b_jo je _dYbkZ[ j^ei[ Yeiji _d hWj[i:
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r kdYebb[Yj_Xb[ WYYekdj Wcekdji:
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r Z_ihkfj_edi YWki[Z Xo ieY_Wb kdh[ij+ _dYbkZ_d] h[bWj[Z fhej[iji eh Z_ijkhXWdY[i:
r WlW_bWX_b_jo+ WZ[gkWYo+ WdZ i^_\j _d c_n+ e\ ]Wi WdZ mWj[h ikffb_[i:
6
Exhibit No. 2
Page 7 of 206
J. Palfreyman, DI
Gem State Water Company
r [\\[Yji e\ d[m eh Wdj_Y_fWj[Z Y^Wd][i _d Yh_j_YWb WYYekdj_d] feb_Y_[i eh [ij_cWj[i:
r WffhelWb WdZ WZ[gkWYo e\ h[]kbWjeho Z[\[hhWbi:
r [\\[Yji WdZ [\\_YWYo e\ h[]kbWjeho c[Y^Wd_ici: WdZ
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\ehmWhZ,beea_d] ijWj[c[dji h[bWj[ je j^[ \kjkh[+ j^[o Wh[ ikX`[Yj je _d^[h[dj kdY[hjW_dj_[i+ h_iai+ WdZ Y^Wd][i _d Y_hYkcijWdY[i j^Wj Wh[ Z_\\_Ykbj je fh[Z_Yj- Jkh
WYjkWb h[ikbji cWo Z_\\[h cWj[h_Wbbo \hec j^ei[ Yedj[cfbWj[Z Xo j^[ \ehmWhZ,beea_d] ijWj[c[dji- R[ j^[h[\eh[ YWkj_ed oek W]W_dij h[bo_d] ed Wdo e\ j^[i[
\ehmWhZ,beea_d] ijWj[c[dji- O^[o Wh[ d[_j^[h ijWj[c[dji e\ ^_ijeh_YWb \WYj deh ]kWhWdj[[i eh WiikhWdY[i e\ \kjkh[ f[h\ehcWdY[- DcfehjWdj \WYjehi j^Wj YekbZ
YWki[ WYjkWb h[ikbji je Z_\\[h cWj[h_Wbbo \hec j^ei[ _d j^[ \ehmWhZ,beea_d] ijWj[c[dji Wh[ Z_iYkii[Z Wj Dj[c 0<-+ "M_ia AWYjehi" e\ KWhj D WdZ Dj[c 6- WdZ Dj[c 6<-+
"HWdW][c[djwi ?_iYkii_ed WdZ <dWboi_i e\ A_dWdY_Wb >edZ_j_ed WdZ M[ikbji e\ Jf[hWj_edi" WdZ "LkWdj_jWj_l[ WdZ LkWb_jWj_l[ ?_iYbeikh[i <Xekj HWha[j M_ia"+
h[if[Yj_l[bo+ e\ KWhj DD e\ j^_i h[fehj-
<do \ehmWhZ,beea_d] ijWj[c[dj cWZ[ _d j^_i h[fehj if[Wai edbo Wi e\ j^[ ZWj[ ed m^_Y^ _j _i cWZ[- AWYjehi eh [l[dji j^Wj YekbZ YWki[ WYjkWb h[ikbji je Z_\\[h cWo
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7
Exhibit No. 2
Page 8 of 206
J. Palfreyman, DI
Gem State Water Company
K<MO D
ADGDIB AJMH<O
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8
Exhibit No. 2
Page 9 of 206
J. Palfreyman, DI
Gem State Water Company
IB? cWh]_d _i Wbie W\\[Yj[Z Xo ej^[h _j[ci+ _dYbkZ_d] c_iY[bbWd[eki h[l[dk[i+ ]W_di eh beii[i \hec IR IWjkhWb&i ]Wi Yeij _dY[dj_l[ i^Wh_d] c[Y^Wd_ic+ ej^[h cWh]_d
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Exhibit No. 2
Page 10 of 206
J. Palfreyman, DI
Gem State Water Company
r HU\YQRY\Ydi , [dikh_d] ]Wi h[iekhY[ fehj\eb_ei Wh[ ik\\_Y_[dj je iWj_i\o Ykijec[h h[gk_h[c[dji kdZ[h [njh[c[ YebZ m[Wj^[h YedZ_j_edi:
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00
Exhibit No. 2
Page 11 of 206
J. Palfreyman, DI
Gem State Water Company
IR IWjkhWb ikffb[c[dji \_hc ]Wi ikffbo fkhY^Wi[i m_j^ ]Wi m_j^ZhWmWbi \hec ]Wi ijehW][ \WY_b_j_[i+ _dYbkZ_d] kdZ[h]hekdZ h[i[hle_hi WdZ GIB ijehW][
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Exhibit No. 2
Page 12 of 206
J. Palfreyman, DI
Gem State Water Company
O^[ IB? Xki_d[ii [cfbeoi W dkcX[h e\ ijhWj[]_[i je c_j_]Wj[ j^[ Yeij e\ ]Wi iebZ je Ykijec[hi- O^[ fh_cWho ijhWj[]_[i \eh cWdW]_d] ]Wi YecceZ_jo fh_Y[ h_ia
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02
Exhibit No. 2
Page 13 of 206
J. Palfreyman, DI
Gem State Water Company
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03
Exhibit No. 2
Page 14 of 206
J. Palfreyman, DI
Gem State Water Company
DM >_\TY^Wc
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04
Exhibit No. 2
Page 15 of 206
J. Palfreyman, DI
Gem State Water Company
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05
Exhibit No. 2
Page 16 of 206
J. Palfreyman, DI
Gem State Water Company
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M[]kbWj_ed A?- <YYehZ_d]bo+ _dl[ijehi i^ekbZ ced_jeh ekh
06
Exhibit No. 2
Page 17 of 206
J. Palfreyman, DI
Gem State Water Company
m[Xi_j[+ _d WZZ_j_ed je \ebbem_d] ekh fh[ii h[b[Wi[i+ N@> \_b_d]i WdZ fkXb_Y Yed\[h[dY[ YWbbi WdZ m[XYWiji- R[ ^Wl[ _dYbkZ[Z ekh m[Xi_j[ WZZh[ii Wi Wd _dWYj_l[
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IR CebZ_d]i WdZ IR IWjkhWb ^Wl[ WZefj[Z W >eZ[ e\ @j^_Yi \eh Wbb [cfbeo[[i+ e\\_Y[hi+ WdZ Z_h[Yjehi j^Wj _i WlW_bWXb[ ed ekh m[Xi_j[- R[ _dj[dZ je Z_iYbei[
h[l_i_edi WdZ Wc[dZc[dji je+ WdZ Wdo mW_l[hi \hec+ j^[ >eZ[ e\ @j^_Yi \eh e\\_Y[hi WdZ Z_h[Yjehi ed ekh m[Xi_j[- Jkh >ehfehWj[ Bel[hdWdY[ NjWdZWhZi+
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Wh[ Wbie WlW_bWXb[ Wj j^[ m[Xi_j[- >ef_[i e\ j^[i[ ZeYkc[dji cWo X[ h[gk[ij[Z+ Wj de Yeij+ Xo mh_j_d] eh YWbb_d] N^Wh[^ebZ[h N[hl_Y[i+ Iehj^m[ij IWjkhWb
CebZ_d] >ecfWdo+ 14/ N-R- OWobeh Njh[[j+ KehjbWdZ+ Jh[]ed 861/3+ j[b[f^ed[ 4/2,11/,13/1-
07
Exhibit No. 2
Page 18 of 206
J. Palfreyman, DI
Gem State Water Company
DO@H 0<- MDNF A<>OJMN
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08
Exhibit No. 2
Page 19 of 206
J. Palfreyman, DI
Gem State Water Company
^Wi _iik[Z [n[Ykj_l[ ehZ[hi W_c[Z Wj h[ZkY_d] BCB [c_ii_edi WdZ ^Wi Z[YbWh[Z Yb_cWj[ Y^Wd][ W dWj_edWb i[Ykh_jo fh_eh_jo- N_c_bWhbo+ \[Z[hWb+ ijWj[ WdZ beYWb
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1/
Exhibit No. 2
Page 20 of 206
J. Palfreyman, DI
Gem State Water Company
D\ m[ YWd de bed][h Wffbo h[]kbWjeho WYYekdj_d]+ m[ YekbZ X[ h[gk_h[Z je mh_j[ e\\ ekh h[]kbWjeho Wii[ji WdZ fh[YbkZ[Z \hec j^[ \kjkh[ Z[\[hhWb e\ Yeiji dej
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m_j^ cWdo Xki_d[ii[i X[]_dd_d] je h[jkhd je dehcWb ef[hWj_d] fhWYj_Y[i+ j^[ j_c_d] \eh h[Yel[ho e\ Xki_d[ii[i WdZ beYWb [Yedec_[i h[cW_di Z_\\_Ykbj je fh[Z_Yj
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r h[ZkY_d] Z[cWdZ \eh dWjkhWb ]Wi+ fWhj_YkbWhbo \hec Yecc[hY_Wb WdZ _dZkijh_Wb Ykijec[hi j^Wj cWo X[ Yedi_Z[h[Z uded,[ii[dj_Wbv Xki_d[ii[i kdZ[h Ykhh[dj eh
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r h[ZkY_d] Ykijec[h ]hemj^ WdZ d[m c[j[h WZZ_j_edi Zk[ je b[ii [Yedec_Y+ YedijhkYj_ed eh Yedl[hi_ed WYj_l_jo:
r ikX`[Yj_d] ki je b[]_ibWj_l[ eh fhebed][Z WZc_d_ijhWj_l[ WYj_ed j^Wj b_c_ji ekh WX_b_jo je Yebb[Yj ed el[hZk[ WYYekdji eh Z_iYedd[Yj ]Wi i[hl_Y[ \eh dedfWoc[dj+
X[oedZ Wd Wcekdj eh f[h_eZ e\ j_c[ WYY[fjWXb[ je ki:
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r i_Ya[d_d] eh YWki_d] W cWdZWjeho gkWhWdj_d[ e\ W bWh][ f[hY[djW][ e\ ekh meha\ehY[+ eh a[o meha]hekfi m_j^ if[Y_Wb_p[Z ia_bb i[ji+ _cfW_h_d] ekh WX_b_jo je
f[h\ehc a[o Xki_d[ii \kdYj_edi eh [n[Ykj[ ekh Xki_d[ii Yedj_dk_jo fbWdi:
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el[h j_c[+ _dYh[Wi_d] ekh Yedjh_Xkj_ed h[gk_h[c[dji:
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h[]kbWj[Z Xki_d[ii[i:
r _dYh[Wi_d] lebWj_b_jo _d j^[ fh_Y[ e\ dWjkhWb ]Wi:
r _cfW_h_d] j^[ \kdYj_ed_d] e\ ekh ikffbo Y^W_d eh WX_b_jo je h[bo ed j^_hZ fWhj_[i eh Xki_d[ii fWhjd[hi: WdZ
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Wii[ji+ WZl[hi[bo W\\[Yj_d] j^[ _dYec[ WdZ \_dWdY_Wb h[iekhY[i e\ cWdo Zec[ij_Y ^eki[^ebZi WdZ Xki_d[ii[i- Dj _i kdYb[Wh m^[j^[h ]el[hdc[djWb h[ifedi[i je
j^[i[ YedZ_j_edi m_bb b[ii[d j^[ i[l[h_jo eh ZkhWj_ed e\ Wdo [Yedec_Y [\\[Yji- Jkh ef[hWj_edWb WdZ \_dWdY_Wb h[ikbji mekbZ b_a[bo X[ W\\[Yj[Z Xo ikY^ [Yedec_Y
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WdZ YWi^ \bemi+ m^_Y^ YekbZ X[ i_]d_\_YWdj-
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HPWFSONFOUBM BQQSPWBMT NBZ OPU CF PCUBJOFE& SJTLT SFMBUJOH UP VOLOPXO QSPCMFNT PS MJBCJMJUJFT PS QSPCMFNT PS MJBCJMJUJFT VOEJTDMPTFE UP VT& BOE UIF SJTL UIBU GPS
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5PMEJOHT\ PS 9A 9BUVSBM\T GJOBODJBM DPOEJUJPO& SFTVMUT PG PQFSBUJPOT& BOE DBTI GMPXT(
10
Exhibit No. 2
Page 21 of 206
J. Palfreyman, DI
Gem State Water Company
Ahec j_c[ je j_c[+ IR CebZ_d]i WdZ IR IWjkhWb ^Wl[ fkhik[Z WdZ cWo Yedj_dk[ je fkhik[ ijhWj[]_Y jhWdiWYj_edi _dYbkZ_d] c[h][hi+ WYgk_i_j_edi+ Z_l[ij_jkh[i+
`e_dj l[djkh[i+ Xki_d[ii Z[l[befc[dj fhe`[Yji eh ej^[h ijhWj[]_Y jhWdiWYj_edi+ _dYbkZ_d]+ Xkj dej b_c_j[Z je+ _dl[ijc[dji _d MIB fhe`[Yji ed W h[]kbWj[Z XWi_i Xo
IR IWjkhWb WdZ ed W ded,h[]kbWj[Z XWi_i Xo IR CebZ_d]i+ Wi m[bb Wi WYgk_i_j_edi Xo IR CebZ_d]i _d j^[ mWj[h WdZ mWij[mWj[h i[Yjehi- <do ikY^ jhWdiWYj_edi
_dlebl[ ikXijWdj_Wb h_iai+ _dYbkZ_d] j^[ \ebbem_d]9
r fkhY^Wi[ eh iWb[ jhWdiWYj_edi j^Wj Wh[ YedjhWYj[Z \eh cWo \W_b je Ybei[ \eh W lWh_[jo e\ h[Wiedi:
r WYgk_h[Z Xki_d[ii[i eh Wii[ji cWo dej fheZkY[ h[l[dk[i+ [Whd_d]i eh YWi^ \bem Wj Wdj_Y_fWj[Z b[l[bi+ m^_Y^ YekbZ+ Wced] ej^[h j^_d]i+ h[ikbj _d j^[
_cfW_hc[dj e\ Wdo _dl[ijc[dji eh ]eeZm_bb WiieY_Wj[Z m_j^ ikY^ WYgk_i_j_edi:
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k j^[h[ cWo X[ Z_\\_Ykbj_[i _d _dj[]hWj_ed eh ef[hWj_ed Yeiji e\ d[m Xki_d[ii[i:
k j^[h[ cWo [n_ij b_WX_b_j_[i j^Wj m[h[ dej Z_iYbei[Z je ki+ j^Wj [nY[[Z ekh [ij_cWj[i+ eh \eh m^_Y^ ekh h_]^ji je _dZ[cd_\_YWj_ed \hec j^[ i[bb[h Wh[ b_c_j[Z:
k m[ cWo X[ kdWXb[ je eXjW_d j^[ d[Y[iiWho h[]kbWjeho eh ]el[hdc[djWb WffhelWbi je Ybei[ W jhWdiWYj_ed+ h[Y[_l[ WffhelWbi ]hWdj[Z ikX`[Yj je j[hci j^Wj Wh[
kdWYY[fjWXb[ je ki:
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Z_ihkfj_ed je ef[hWj_edi eh W Yecfb[j[ i^kj,_d e\ j^[ \_[bZ: WdZ ed[ eh ceh[ fWhj_Y_fWdji _d ed[ e\ j^[i[ ]Wi h[i[hl[i WhhWd][c[dji X[Yec_d] \_dWdY_Wbbo
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11
Exhibit No. 2
Page 22 of 206
J. Palfreyman, DI
Gem State Water Company
kdZ[h j^Wj WhhWd][c[dj Wh[ h[Yel[h[Z Wj if[Y_\_Y Yeiji+ j^[ eYYkhh[dY[ e\ ed[ eh ceh[ e\ j^[i[ h_iai YekbZ W\\[Yj IR IWjkhWbwi WX_b_jo je h[Yel[h j^_i ^[Z][ _d
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e\ ef[hWj_edi WdZ YWi^ \bemi-
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je j^[ d[m YedijhkYj_ed ^eki_d] cWha[j+ Yedl[hi_edi e\ Ykijec[hi je dWjkhWb ]Wi \hec ej^[h [d[h]o iekhY[i WdZ ]hem_d] Yecc[hY_Wb ki[ e\ dWjkhWb ]Wi-
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d[]Wj_l[bo W\\[Yj IR IWjkhWbwi WX_b_jo je WjjhWYj d[m Ykijec[hi eh h[jW_d ekh [n_ij_d] h[i_Z[dj_Wb+ Yecc[hY_Wb WdZ _dZkijh_Wb Ykijec[hi+ m^_Y^ YekbZ ^Wl[ W
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e\ ef[hWj_edi WdZ YWi^ \bemi-
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r ef[hWjeh [hhehi:
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YedjhWYjkWb Yecc_jc[dji je ekh Ykijec[hi:
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j^[ ef[hWj_ed e\ ekh ]Wi WdZ mWj[h Z_ijh_Xkj_ed+ mWij[mWj[h i[hl_Y[i WdZ ]Wi ijehW][ \WY_b_j_[i:
r fh[i[dY[ e\ Y^[c_YWbi eh ej^[h YecfekdZi _d dWjkhWb ]Wi j^Wj YekbZ WZl[hi[bo W\\[Yj j^[ f[h\ehcWdY[ e\ j^[ ioij[c eh [dZ,ki[ [gk_fc[dj:
r YebbWfi[ e\ kdZ[h]hekdZ ijehW][ h[i[hle_hi:
r _dWZ[gkWj[ ikffb_[i e\ dWjkhWb ]Wi eh mWj[h eh YedjWc_dWj_ed e\ mWj[h ikffb_[i:
r ef[hWj_d] Yeiji j^Wj Wh[ ikXijWdj_Wbbo ^_]^[h j^Wd [nf[Yj[Z:
r c_]hWj_ed e\ dWjkhWb ]Wi j^hek]^ \Wkbji _d j^[ heYa eh je iec[ Wh[W e\ j^[ h[i[hle_h m^[h[ [n_ij_d] m[bbi YWddej ZhW_d j^[ ]Wi [\\[Yj_l[bo+ h[ikbj_d] _d beii e\
j^[ ]Wi:
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r h_iai WdZ ^WpWhZi _d^[h[dj _d j^[ Zh_bb_d] ef[hWj_edi WiieY_Wj[Z m_j^ j^[ Z[l[befc[dj e\ ]Wi ijehW][ \WY_b_j_[i+ WdZ m[bbi-
Aeh [nWcfb[+ O> K_f[b_d[i+ GK 'O> K_f[b_d[i( ^Wi _Z[dj_\_[Z j^[ fh[i[dY[ e\ W Y^[c_YWb ikXijWdY[+ Z_j^_Wp_d[+ Wj i[l[hWb \WY_b_j_[i ed j^[ ioij[c e\ _ji ikXi_Z_Who+
BWi OhWdic_ii_ed Iehj^m[ij 'BOI(+ WdZ j^ei[ e\ iec[ kfijh[Wc WdZ Zemdijh[Wc Yedd[Yj_d] f_f[b_d[ \WY_b_j_[i- < fehj_ed e\ IR IWjkhWbwi ]Wi ikffb_[i \hec
>WdWZW Wh[ jhWdifehj[Z ed BOIwi f_f[b_d[i- O> K_f[b_d[i h[fehji j^Wj Z_j^_Wp_d[ YWd Zhef ekj e\ ]Wi ijh[Wci _d W femZ[ho \ehc Wj iec[ fe_dji e\ fh[iikh[
h[ZkYj_ed '\eh [nWcfb[+ Wj W h[]kbWjeh(+ WdZ j^Wj _d _dY_Z[dji m^[h[ W ik\\_Y_[dj gkWdj_jo e\ j^[ cWj[h_Wb WYYkckbWj[i _d Y[hjW_d fbWY[i+ _cfhef[h \kdYj_ed_d] e\
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12
Exhibit No. 2
Page 23 of 206
J. Palfreyman, DI
Gem State Water Company
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13
Exhibit No. 2
Page 24 of 206
J. Palfreyman, DI
Gem State Water Company
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m[ YekbZ X[ ikX`[Yj je \khj^[h h[l_[m- N_c_bWhbo+ _d JYjeX[h 1/08+ j^[ RPO> Wkj^eh_p[Z Wd @>MH+ m^_Y^ Wbbemi \eh h[Yel[ho e\ Y[hjW_d fWij Z[\[hh[Z WdZ \kjkh[
fhkZ[djbo _dYkhh[Z h[c[Z_Wj_ed Yeiji WbbeYWXb[ je RWi^_d]jed j^hek]^ Wffb_YWj_ed e\ _dikhWdY[ fheY[[Zi WdZ Yebb[Yj_edi \hec Ykijec[hi+ ikX`[Yj je Wd WddkWb
fhkZ[dY[ Z[j[hc_dWj_ed- O^[i[ ed]e_d] fhkZ[dY[ h[l_[mi+ eh m_j^ h[if[Yj je j^[ NMMH+ j^[ [Whd_d]i j[ij+ eh j^[ f[h_eZ_Y h[l_[m YekbZ h[ZkY[ j^[ Wcekdji IR
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Y[hjW_djo j^[ Wcekdj eh j_c_d] e\ \kjkh[ [nf[dZ_jkh[i h[bWj[Z je
14
Exhibit No. 2
Page 25 of 206
J. Palfreyman, DI
Gem State Water Company
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15
Exhibit No. 2
Page 26 of 206
J. Palfreyman, DI
Gem State Water Company
h[ZkYj_ed ]eWbi e\ 4/$ Xo 1/24 WdZ 8/$ Xo 1/4/ \hec W 088/ XWi[b_d[- IR IWjkhWb _i ikX`[Yj je Xej^ j^[ >>< WdZ >KK- R[ [nf[Yj j^Wj j^[h[ m_bb X[ WZZ_j_edWb
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ej^[h \ehci e\ WjjWYai- O^[i[ WjjWYai YekbZ+ Wced] ej^[h j^_d]i+ jWh][j eh _cfWYj ekh j[Y^debe]o eh c[Y^Wd_YWb ioij[ci j^Wj ef[hWj[ ekh Z_ijh_Xkj_ed+
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IWjkhWbwi ef[hWj_edi eh \_dWdY_Wb h[ikbji-
16
Exhibit No. 2
Page 27 of 206
J. Palfreyman, DI
Gem State Water Company
H;B?7D9; ED J;9>DEBE=O H?IA)9A 5PMEJOHT\ BOE 9A 9BUVSBM\T FGGPSUT UP JOUFHSBUF& DPOTPMJEBUF BOE TUSFBNMJOF FBDI PG UIFJS PQFSBUJPOT IBT SFTVMUFE JO
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IR CebZ_d]i WdZ IR IWjkhWb ^Wl[ kdZ[hjWa[d W lWh_[jo e\ _d_j_Wj_l[i je _dj[]hWj[+ ijWdZWhZ_p[+ Y[djhWb_p[ WdZ ijh[Wcb_d[ ef[hWj_edi- O^[i[ [\\ehji ^Wl[ h[ikbj[Z
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WX_b_jo je Wdj_Y_fWj[ WdZ WZWfj je j[Y^debe]_YWb Y^Wd][i _d W Yeij,[\\[Yj_l[ cWdd[h WdZ je e\\[h+ ed W j_c[bo XWi_i+ i[hl_Y[i j^Wj c[[j Ykijec[h Z[cWdZi WdZ
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cWo h[gk_h[ ki je cWa[ i_]d_\_YWdj [nf[dZ_jkh[i je h[cW_d Yecf[j_j_l[- R[ Yedj_dk[ je _cfb[c[dj j[Y^debe]o je _cfhel[ ekh Xki_d[ii fheY[ii[i WdZ Ykijec[h
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IWjkhWb _i meha_d] je kf]hWZ[ _ji N<K ioij[c WdZ _dj[dZi je h[fbWY[ _ji Ykijec[h _d\ehcWj_ed ioij[c _d j^[ d[Wh \kjkh[-
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cW_djW_d WdZ kf]hWZ[ ekh _d\ehcWj_ed j[Y^debe]o ioij[ci- Jkh ikffb_[hi cWo \WY[ fheZkYj_ed eh _cfehj Z[bWoi Zk[ je dWjkhWb Z_iWij[hi+ ijh_a[i+ beYa,ekji+
feb_j_YWb kdh[ij+ fWdZ[c_Yi '_dYbkZ_d] >JQD?,08( eh ej^[h ikY^ Y_hYkcijWdY[i- O[Y^debe]o i[hl_Y[i fhel_Z[Z Xo j^_hZ,fWhj_[i Wbie YekbZ X[ Z_ihkfj[Z Zk[ je
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<do ceZ_\_YWj_edi+ kf]hWZ[i+ ioij[c cW_dj[dWdY[ eh h[fbWY[c[dji ikX`[Yj ki je _d^[h[dj Yeiji WdZ h_iai+ _dYbkZ_d] fej[dj_Wb Z_ihkfj_ed e\ ekh _dj[hdWb Yedjheb
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j^[ d[m ioij[ci+ WdZ ej^[h h_iai WdZ Yeiji e\ Z[bWoi eh Z_\\_Ykbj_[i _d jhWdi_j_ed_d] je d[m ioij[ci eh e\ _dj[]hWj_d] d[m ioij[ci _dje ekh Ykhh[dj ioij[ci- Dd
WZZ_j_ed+ j^[ Z_\\_Ykbj_[i m_j^ _cfb[c[dj_d] d[m j[Y^debe]o ioij[ci cWo YWki[ Z_ihkfj_edi _d ekh Xki_d[ii ef[hWj_edi WdZ ^Wl[ Wd WZl[hi[ [\\[Yj ed ekh
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<bj^ek]^ m[ jWa[ fh[YWkj_edi je fhej[Yj ekh j[Y^debe]o ioij[ci WdZ Wh[ dej WmWh[ e\ Wdo cWj[h_Wb i[Ykh_jo Xh[WY^[i je ZWj[+ j^[h[ _i de ]kWhWdj[[ j^Wj j^[
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AW_bkh[ je j_c[bo WdZ [\\[Yj_l[bo c[[j j^[ h[gk_h[c[dji e\ j^[i[ Z_h[Yj_l[i eh ej^[h YoX[hi[Ykh_jo h[]kbWj_edi YekbZ h[ikbj _d \_d[i eh ej^[h f[dWbj_[i- R^_b[ m[ Wh[
kdWXb[ je [ij_cWj[ W hWd][ e\ feii_Xb[ Yeiji Wj j^_i j_c[+ m[ YekbZ Wbie _dYkh i_]d_\_YWdj Yeiji _d Yecfbo_d] m_j^ h[]kbWjeho Z_h[Yj_l[i+ WdZ j^[h[ _i de WiikhWdY[
j^Wj m[ m_bb X[ WXb[ je h[Yel[h j^ei[ Yeiji _d hWj[i-
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dehcWb Yekhi[ e\ Xki_d[ii+ m^_Y^ YekbZ WZl[hi[bo W\\[Yj ekh h[fkjWj_ed+ Z_c_d_i^ Ykijec[h Yed\_Z[dY[+ Z_ihkfj ef[hWj_edi+ cWj[h_Wbbo _dYh[Wi[ j^[ Yeiji m[ _dYkh
je fhej[Yj W]W_dij j^[i[ h_iai+ WdZ ikX`[Yj ki je feii_Xb[ \_dWdY_Wb b_WX_b_jo eh _dYh[Wi[Z h[]kbWj_ed eh b_j_]Wj_ed+ Wdo e\ m^_Y^ YekbZ WZl[hi[bo W\\[Yj IR CebZ_d]iw
eh IR IWjkhWbwi \_dWdY_Wb YedZ_j_ed WdZ h[ikbji e\ ef[hWj_edi-
<Y^Q^SYQ\ Q^T ;S_^_]YS HYc[c
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<i W ^ebZ_d] YecfWdo+ IR CebZ_d]iw edbo i_]d_\_YWdj Wii[ji Wh[ j^[ ijeYa WdZ c[cX[hi^_f _dj[h[iji e\ _ji ef[hWj_d] ikXi_Z_Wh_[i+ m^_Y^ Wj j^_i j_c[ _i fh_cWh_bo
IR IWjkhWb- IR CebZ_d]iw Z_h[Yj WdZ _dZ_h[Yj ikXi_Z_Wh_[i Wh[ i[fWhWj[ WdZ Z_ij_dYj b[]Wb [dj_j_[i+
17
Exhibit No. 2
Page 28 of 206
J. Palfreyman, DI
Gem State Water Company
cWdW][Z Xo j^[_h emd XeWhZi e\ Z_h[Yjehi+ WdZ ^Wl[ de eXb_]Wj_ed je fWo Wdo Wcekdji je j^[_h h[if[Yj_l[ i^Wh[^ebZ[hi+ m^[j^[h j^hek]^ Z_l_Z[dZi+ beWdi eh
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YedZ_j_edi: j^[ fh_eh h_]^ji e\ ^ebZ[hi e\ [n_ij_d] WdZ \kjkh[ Z[Xj i[Ykh_j_[i WdZ Wdo \kjkh[ fh[\[hh[Z ijeYa _iik[Z Xo j^ei[ YecfWd_[i: WdZ Wdo Wffb_YWXb[ b[]Wb
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ijhkYjkh[ h[gk_h[c[dji Wffhel[Z Xo j^[ JKP> WdZ RPO>+ _j m_bb dej+ m_j^ b_c_j[Z [nY[fj_edi+ X[ f[hc_jj[Z je fWo Z_l_Z[dZi je IR CebZ_d]i- PdZ[h j^[ JKP>
WdZ RPO> ehZ[hi Wkj^eh_p_d] j^[ ^ebZ_d] YecfWdo h[eh]Wd_pWj_ed+ IR IWjkhWb cWo dej fWo Z_l_Z[dZi eh cWa[ Z_ijh_Xkj_edi je IR CebZ_d]i _\ IR IWjkhWbwi
Yh[Z_j hWj_d]i WdZ Yecced [gk_jo b[l[bi \Wbb X[bem if[Y_\_[Z hWj_d]i WdZ b[l[bi- D\ IR IWjkhWbwi bed],j[hc i[Ykh[Z Yh[Z_j hWj_d]i Wh[ X[bem <, \eh N%K WdZ <2 \eh
HeeZowi+ Z_l_Z[dZi cWo X[ _iik[Z ie bed] Wi IR IWjkhWbwi Yecced [gk_jo _i 34$ eh WXel[- D\ IR IWjkhWbwi bed],j[hc i[Ykh[Z Yh[Z_j hWj_d]i Wh[ X[bem === \eh
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Pdj_b IR IWjkhWb Ybei[Z j^[ f[di_ed fbWdi je d[m ^_h[i+ m^_Y^ \eh ded,kd_ed [cfbeo[[i mWi _d 1//5 WdZ \eh kd_ed [cfbeo[[i mWi _d 1//8+ _j fhel_Z[Z f[di_ed
fbWdi WdZ feijh[j_h[c[dj ^[Wbj^YWh[ X[d[\_ji je [b_]_Xb[ \kbb,j_c[ kj_b_jo [cfbeo[[i WdZ h[j_h[[i- <ffhen_cWj[bo 24$ e\ IR IWjkhWbwi Ykhh[dj kj_b_jo [cfbeo[[i
m[h[ ^_h[Z fh_eh je j^[i[ ZWj[i+ WdZ j^[h[\eh[ h[cW_d [b_]_Xb[ \eh j^[i[ fbWdi- Jj^[h Xki_d[ii[i m[ WYgk_h[ cWo Wbie ^Wl[ f[di_ed fbWdi- O^[ Yeiji je IR
IWjkhWb+ eh j^[ ej^[h Wffb_YWXb[ Xki_d[ii[i m[ cWo WYgk_h[+ \eh fhel_Z_d] ikY^ X[d[\_ji _i ikX`[Yj je Y^Wd][ _d j^[ cWha[j lWbk[ e\ j^[ f[di_ed Wii[ji+ Y^Wd][i
_d [cfbeo[[ Z[ce]hWf^_Yi _dYbkZ_d] bed][h b_\[ [nf[YjWdY_[i+ _dYh[Wi[i _d ^[Wbj^YWh[ Yeiji+ Ykhh[dj WdZ \kjkh[ b[]_ibWj_l[ Y^Wd][i+ WdZ lWh_eki WYjkWh_Wb
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YedZ_j_ed+ h[ikbji e\ ef[hWj_edi WdZ YWi^ \bemi-
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IR IWjkhWbwi ]Wi fkhY^Wi_d] h[gk_h[c[dji [nfei[ _j je h_iai e\ YecceZ_jo fh_Y[ cel[c[dji+ m^_b[ _ji ki[ e\ Z[Xj WdZ [gk_jo \_dWdY_d] [nfei[i _j je _dj[h[ij
hWj[+ b_gk_Z_jo WdZ ej^[h \_dWdY_Wb cWha[j h_iai- IR IWjkhWb Wjj[cfji je cWdW][ j^[i[ [nfeikh[i m_j^ Xej^ \_dWdY_Wb WdZ f^oi_YWb ^[Z]_d] c[Y^Wd_ici+ _dYbkZ_d]
_ji ]Wi h[i[hl[i jhWdiWYj_edi m^_Y^ Wh[ ^[Z][i XWYa[Z Xo f^oi_YWb ]Wi ikffb_[i- R^_b[ IR IWjkhWb ^Wi h_ia cWdW][c[dj fheY[Zkh[i \eh ^[Z]_d] _d fbWY[+ j^[o
cWo dej WbmWoi meha Wi fbWdd[Z WdZ YWddej [dj_h[bo [b_c_dWj[ j^[ h_iai WiieY_Wj[Z m_j^ ^[Z]_d]- <ZZ_j_edWbbo+ IR IWjkhWbwi ^[Z]_d] WYj_l_j_[i cWo YWki[ _j je
_dYkh WZZ_j_edWb [nf[di[i je eXjW_d j^[ ^[Z][- IR IWjkhWb Ze[i dej ^[Z][ _ji [dj_h[ _dj[h[ij hWj[ eh YecceZ_jo Yeij [nfeikh[+ WdZ j^[ kd^[Z][Z [nfeikh[ m_bb
lWho el[h j_c[- BW_di eh beii[i [nf[h_[dY[Z j^hek]^ ^[Z]_d] WYj_l_j_[i+ _dYbkZ_d] YWhho_d] Yeiji+ ][d[hWbbo \bem j^hek]^ IR IWjkhWbwi KB< c[Y^Wd_ic eh Wh[
h[Yel[h[Z _d \kjkh[ ][d[hWb hWj[ YWi[i- Cem[l[h+ j^[ ^[Z][ jhWdiWYj_edi IR IWjkhWb [dj[hi _dje \eh kj_b_jo fkhfei[i Wh[ ikX`[Yj je W fhkZ[dY[ h[l_[m Xo j^[
JKP> WdZ RPO>+ WdZ+ _\ \ekdZ _cfhkZ[dj+ j^ei[ [nf[di[i cWo X[+ WdZ ^Wl[ X[[d fh[l_ekibo+ Z_iWbbem[Z+ m^_Y^ YekbZ ^Wl[ Wd WZl[hi[ [\\[Yj ed IR
CebZ_d]iw eh IR IWjkhWbwi \_dWdY_Wb YedZ_j_ed WdZ h[ikbji e\ ef[hWj_edi-
Dd WZZ_j_ed+ IR IWjkhWbwi WYjkWb Xki_d[ii h[gk_h[c[dji WdZ WlW_bWXb[ h[iekhY[i cWo lWho \hec \eh[YWiji+ m^_Y^ Wh[ ki[Z Wi j^[ XWi_i \eh _ji ^[Z]_d] Z[Y_i_edi+
WdZ YekbZ YWki[ _ji [nfeikh[ je X[ ceh[ eh b[ii j^Wd Wdj_Y_fWj[Z- Heh[el[h+ _\ IR IWjkhWbwi Z[h_lWj_l[ _dijhkc[dji WdZ ^[Z]_d] jhWdiWYj_edi Ze dej gkWb_\o \eh
h[]kbWjeho Z[\[hhWb WdZ _j Ze[i dej [b[Yj ^[Z][ WYYekdj_d] jh[Wjc[dj kdZ[h P-N- B<<K+ IR CebZ_d]iw eh IR IWjkhWbwi h[ikbji e\ ef[hWj_edi WdZ \_dWdY_Wb
YedZ_j_ed YekbZ X[ WZl[hi[bo W\\[Yj[Z-
IR IWjkhWb Wbie ^Wi Yh[Z_j,h[bWj[Z [nfeikh[ je Z[h_lWj_l[ Yekdj[hfWhj_[i- >ekdj[hfWhj_[i em_d] IR IWjkhWb eh _ji ikXi_Z_Wh_[i ced[o eh f^oi_YWb dWjkhWb ]Wi
YecceZ_j_[i YekbZ Xh[WY^ j^[_h eXb_]Wj_edi- N^ekbZ j^[ Yekdj[hfWhj_[i je j^[i[ WhhWd][c[dji \W_b
18
Exhibit No. 2
Page 29 of 206
J. Palfreyman, DI
Gem State Water Company
je f[h\ehc+ IR IWjkhWb cWo X[ \ehY[Z je [dj[h _dje Wbj[hdWj_l[ WhhWd][c[dji je c[[j _ji dehcWb Xki_d[ii h[gk_h[c[dji- Dd j^Wj [l[dj+ IR CebZ_d]iw eh IR
IWjkhWbwi \_dWdY_Wb h[ikbji YekbZ X[ WZl[hi[bo W\\[Yj[Z- <ZZ_j_edWbbo+ kdZ[h ceij e\ IR IWjkhWbwi ^[Z]_d] WhhWd][c[dji+ Wdo Zemd]hWZ[ e\ _ji i[d_eh kdi[Ykh[Z
bed],j[hc Z[Xj Yh[Z_j hWj_d] YekbZ Wbbem _ji Yekdj[hfWhj_[i je h[gk_h[ IR IWjkhWb je feij YWi^+ W b[jj[h e\ Yh[Z_j eh ej^[h \ehc e\ YebbWj[hWb+ m^_Y^ mekbZ [nfei[ IR
IWjkhWb je WZZ_j_edWb Yeiji WdZ cWo jh_]][h i_]d_\_YWdj _dYh[Wi[i _d Xehhem_d] \hec _ji Yh[Z_j \WY_b_j_[i eh [gk_jo Yedjh_Xkj_ed d[[Zi \hec IR CebZ_d]i+ _\ j^[ Yh[Z_j
hWj_d] Zemd]hWZ[ _i X[bem _dl[ijc[dj ]hWZ[- Akhj^[h+ XWi[Z ed Ykhh[dj _dj[hfh[jWj_edi+ IR IWjkhWb _i dej Yedi_Z[h[Z W "imWf Z[Wb[h" eh "cW`eh imWf fWhj_Y_fWdj"
_d 1/10+ ie IR IWjkhWb _i [n[cfj \hec Y[hjW_d h[gk_h[c[dji kdZ[h j^[ ?eZZ,AhWda <Yj- D\ IR IWjkhWb _i kdWXb[ je YbW_c j^_i [n[cfj_ed+ _j YekbZ X[ ikX`[Yj je
^_]^[h Yeiji \eh _ji Z[h_lWj_l[i WYj_l_j_[i+ WdZ ikY^ ^_]^[h Yeiji YekbZ ^Wl[ W d[]Wj_l[ _cfWYj ed IR CebZ_d]iw WdZ IR IWjkhWbwi ef[hWj_d] Yeiji WdZ \_dWdY_Wb
h[ikbji-
=7I FH?9; H?IA)5JHIFS OBUVSBM HBT DPNNPEJUZ QSJDFT BOE WPMBUJMJUZ JO UIF QSJDF PG HBT NBZ BEWFSTFMZ BGGFDU 9A 9BUVSBM\T 941 CVTJOFTT& XIFSFBT MPXFS HBT
QSJDF WPMBUJMJUZ NBZ BEWFSTFMZ BGGFDU 9A 9BUVSBM\T HBT TUPSBHF CVTJOFTT& OFHBUJWFMZ BGGFDUJOH 9A 5PMEJOHT\ BOE 9A 9BUVSBM\T SFTVMUT PG PQFSBUJPOT BOE DBTI
GMPXT(
O^[ Yeij e\ dWjkhWb ]Wi _i W\\[Yj[Z Xo W lWh_[jo e\ \WYjehi+ _dYbkZ_d] m[Wj^[h+ Y^Wd][i _d Z[cWdZ+ j^[ b[l[b e\ fheZkYj_ed WdZ WlW_bWX_b_jo e\ dWjkhWb ]Wi ikffb_[i+
jhWdifehjWj_ed YedijhW_dji+ WlW_bWX_b_jo WdZ Yeij e\ f_f[b_d[ YWfWY_jo+ \[Z[hWb WdZ ijWj[ [d[h]o WdZ [dl_hedc[djWb h[]kbWj_ed WdZ b[]_ibWj_ed+ dWjkhWb Z_iWij[hi WdZ
ej^[h YWjWijhef^_Y [l[dji+ dWj_edWb WdZ mehbZm_Z[ [Yedec_Y WdZ feb_j_YWb YedZ_j_edi+ WdZ j^[ fh_Y[ WdZ WlW_bWX_b_jo e\ Wbj[hdWj_l[ \k[bi- <j IR IWjkhWb+ j^[ Yeij m[
fWo \eh dWjkhWb ]Wi _i ][d[hWbbo fWii[Z j^hek]^ je Ykijec[hi j^hek]^ Wd WddkWb KB< hWj[ WZ`kijc[dj- D\ ]Wi fh_Y[i m[h[ je _dYh[Wi[ i_]d_\_YWdjbo WdZ h[cW_d
^_]^[h+ _j YekbZ hW_i[ j^[ Yeij e\ [d[h]o je IR IWjkhWbwi Ykijec[hi+ fej[dj_Wbbo YWki_d] j^ei[ Ykijec[hi je Yedi[hl[ eh im_jY^ je Wbj[hdWj[ iekhY[i e\ [d[h]o-
NkijW_d[Z i_]d_\_YWdj fh_Y[ _dYh[Wi[i YekbZ Wbie YWki[ d[m ^ec[ Xk_bZ[hi WdZ Yecc[hY_Wb Z[l[bef[hi je i[b[Yj Wbj[hdWj_l[ [d[h]o iekhY[i- ?[Yh[Wi[i _d j^[
lebkc[ e\ ]Wi IR IWjkhWb i[bbi YekbZ h[ZkY[ IR CebZ_d]i eh IR IWjkhWbwi [Whd_d]i+ WdZ W Z[Yb_d[ _d Ykijec[hi YekbZ ibem ]hemj^ _d \kjkh[ [Whd_d]i-
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c[Wdi je h[ZkY[ IR IWjkhWbwi hWj[i+ m^_Y^ Wbie YekbZ WZl[hi[bo W\\[Yj IR CebZ_d]iw WdZ IR IWjkhWbwi h[ikbji e\ ef[hWj_edi WdZ YWi^ \bemi-
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fehj_ed '0/$ eh 1/$( e\ Wdo Z_\\[h[dY[ X[jm[[d j^[ [ij_cWj[Z Wl[hW][ KB< ]Wi Yeij _d hWj[ WdZ j^[ WYjkWb Wl[hW][ ]Wi Yeij _dYkhh[Z _i h[Ye]d_p[Z Wi Ykhh[dj
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fWoi ikffb_[hi \eh ]Wi m^[d _j _i fkhY^Wi[Z+ m^_Y^ YWd X[ _d WZlWdY[ e\ m^[d j^[i[ Yeiji Wh[ h[Yel[h[Z j^hek]^ hWj[i- N_]d_\_YWdj _dYh[Wi[i _d j^[ fh_Y[ e\ ]Wi
YWd Wbie ibem Yebb[Yj_ed [\\ehji Wi Ykijec[hi [nf[h_[dY[ _dYh[Wi[Z Z_\\_Ykbjo _d fWo_d] j^[_h ^_]^[h [d[h]o X_bbi+ b[WZ_d] je ^_]^[h j^Wd dehcWb Z[b_dgk[dj WYYekdji
h[Y[_lWXb[ h[ikbj_d] _d ]h[Wj[h [nf[di[ WiieY_Wj[Z m_j^ Yebb[Yj_ed [\\ehji WdZ _dYh[Wi[Z XWZ Z[Xj [nf[di[-
?D78?B?JO JE 799;II 97F?J7B C7HA;J H?IA)9A 5PMEJOHT\ PS 9A 9BUVSBM\T JOBCJMJUZ UP BDDFTT DBQJUBM& PS TJHOJGJDBOU JODSFBTFT JO UIF DPTU PG DBQJUBM& DPVME
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IR CebZ_d]iw WdZ IR IWjkhWbwi WX_b_jo je eXjW_d WZ[gkWj[ WdZ Yeij [\\[Yj_l[ i^ehj,j[hc WdZ bed],j[hc \_dWdY_d] Z[f[dZi ed cW_djW_d_d] _dl[ijc[dj ]hWZ[ Yh[Z_j
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XWda cWha[ji je \_dWdY[ [gk_jo Yedjh_Xkj_edi je ikXi_Z_Wh_[i WdZ ej^[h Xki_d[ii h[gk_h[c[dji- IR IWjkhWb h[b_[i ed WYY[ii je YWf_jWb WdZ XWda cWha[ji+
_dYbkZ_d] Yecc[hY_Wb fWf[h WdZ XedZ cWha[ji+ je \_dWdY[ _ji ef[hWj_edi+ YedijhkYj_ed [nf[dZ_jkh[i WdZ ej^[h Xki_d[ii h[gk_h[c[dji+ WdZ je h[\kdZ cWjkh_d]
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WdZ cWa[ ijhWj[]_Y _dl[ijc[dji-
Akhj^[hceh[+ h[Y[dj jh[dZi jemWhZ _dl[ijc[dji j^Wj Wh[ f[hY[_l[Z je X[ u]h[[dv eh uikijW_dWXb[v YekbZ i^_\j YWf_jWb WmWo \hec+ eh _dYh[Wi[ j^[ Yeij e\ YWf_jWb \eh+
ekh dWjkhWb ]Wi Xki_d[ii- R[ X[b_[l[ ekh Xki_d[ii _i Wd _cfehjWdj Yecfed[dj e\ W bem YWhXed \kjkh[ WdZ Wh[ ijh_l_d] je Z[YWhXed_p[ ekh ioij[ci- I[l[hj^[b[ii+
f[hY[fj_edi _d j^[ \_dWdY_Wb cWha[ji YekbZ Z_\\[h eh ekjfWY[ ekh Z[YWhXed_pWj_ed fhe]h[ii WdZ h[ikbj _d W i^_\j \kdZ_d] WmWo \hec+ eh b_c_j eh h[ijh_Yj Y[hjW_d \ehci
e\ \kdZ_d] \eh+ dWjkhWb ]Wi Xki_d[ii[i-
IR IWjkhWb _i Ykhh[djbo hWj[Z Xo N%K WdZ HeeZowi WdZ W d[]Wj_l[ Y^Wd][ _d _ji Yh[Z_j hWj_d]i+ fWhj_YkbWhbo X[bem _dl[ijc[dj ]hWZ[+ YekbZ WZl[hi[bo W\\[Yj _ji Yeij
e\ Xehhem_d] WdZ WYY[ii je iekhY[i e\ b_gk_Z_jo WdZ YWf_jWb- NkY^ W Zemd]hWZ[ YekbZ \khj^[h b_c_j _ji WYY[ii je Xehhem_d] kdZ[h WlW_bWXb[ Yh[Z_j b_d[i- <ZZ_j_edWbbo+
Zemd]hWZ[i _d _ji Ykhh[dj Yh[Z_j hWj_d]i X[bem _dl[ijc[dj ]hWZ[ YekbZ YWki[ WZZ_j_edWb Z[bWoi _d IR IWjkhWb&i WX_b_jo je WYY[ii j^[ YWf_jWb cWha[ji m^_b[ _j i[[ai
ikffb[c[djWb ijWj[ h[]kbWjeho WffhelWb+ m^_Y^ YekbZ ^Wcf[h _ji WX_b_jo je WYY[ii Yh[Z_j cWha[ji ed W j_c[bo XWi_i- IR CebZ_d]i& Yh[Z_j fhe\_b[ _i
2/
Exhibit No. 2
Page 30 of 206
J. Palfreyman, DI
Gem State Water Company
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20
Exhibit No. 2
Page 31 of 206
J. Palfreyman, DI
Gem State Water Company
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21
Exhibit No. 2
Page 32 of 206
J. Palfreyman, DI
Gem State Water Company
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22
Exhibit No. 2
Page 33 of 206
J. Palfreyman, DI
Gem State Water Company
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23
Exhibit No. 2
Page 34 of 206
J. Palfreyman, DI
Gem State Water Company
DO@H 6- H<I<B@H@IO&N ?DN>PNNDJI <I? <I<GTNDN JA ADI<I>D<G >JI?DODJI <I? M@NPGON JA JK@M<ODJIN
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24
Exhibit No. 2
Page 35 of 206
J. Palfreyman, DI
Gem State Water Company
5G53DC9E5 BD<<1AH
IR CebZ_d]i& \_dWdY_Wb h[ikbji WdZ ^_]^b_]^ji \eh j^[ o[Wh _dYbkZ[9
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25
Exhibit No. 2
Page 36 of 206
J. Palfreyman, DI
Gem State Water Company
I[j _dYec[ \hec Yedj_dk_d] ef[hWj_edi _dYh[Wi[Z #4-/ c_bb_ed Wj IR CebZ_d]i fh_cWh_bo Zk[ je j^[ \ebbem_d] \WYjehi9
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fWdZ[c_Y+ IR IWjkhWb _d_j_Wbbo ceX_b_p[Z _ji _dY_Z[dj YeccWdZ j[Wc WdZ Xki_d[ii Yedj_dk_jo fbWdi _d [Whbo HWhY^ 1/1/+ m_j^ W \eYki ed j^[ iW\[jo e\ ekh 0+1//
[cfbeo[[i WdZ j^[ 1-4 c_bb_ed f[efb[+ Xki_d[ii fWhjd[hi WdZ Yecckd_j_[i m[ i[hl[- Aeh [cfbeo[[i m^ei[ heb[ h[gk_h[i j^[c je meha _d j^[ \_[bZ eh edi_j[+ m[
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ced_jeh_d] _d h[ifedi[ je h[fehji j^Wj YoX[hi[Ykh_jo WjjWYa[hi Wh[ ceh[ WYj_l[ m_j^ j^[ [Yedeco kj_b_p_d] meha \hec ^ec[ fhejeYebi-
O^[ ijWj[i m[ ef[hWj[ _d ^Wl[ h[ef[d[Z m_j^ cWdo Xki_d[ii[i X[]_dd_d] je h[jkhd je dehcWb ef[hWj_d] fhWYj_Y[i: ^em[l[h+ j^[ j_c_d] \eh h[Yel[ho e\ Xki_d[ii[i
WdZ beYWb [Yedec_[i h[cW_di Z_\\_Ykbj je fh[Z_Yj WdZ Z[f[dZ[dj ed j^[ \kjkh[ _cfWYji e\ j^[ >JQD?,08 fWdZ[c_Y+ h[ikh][dY[i eh ckjWj_edi e\ j^[ l_hki+
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r =ej^ IR IWjkhWb WdZ IR IWjkhWb RWj[h [nf[Yj j^[_h YWf_jWb fhe`[Yji _d 1/11 je cel[ \ehmWhZ Wi fbWdd[Z-
r R[ ^Wl[ dej [nf[h_[dY[Z cWj[h_Wb Z_ihkfj_edi _d ekh ikffbo Y^W_d \eh ]eeZi WdZ i[hl_Y[i je ZWj[- Jkh ikffb_[hi cWo X[ ikX`[Yj je lWYY_d[ cWdZWj[i
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ibemZemd _d [Yedec_Y WYj_l_jo YekbZ h[ikbj _d W Z[Yb_d[ _d d[m c[j[h Yedd[Yj_edi+ m^_Y^ YekbZ WZl[hi[bo W\\[Yj ef[hWj_d] cWh]_di _d 1/11 WdZ j^[
\ebbem_d] f[h_eZi- R[ ^Wl[ h[ikc[Z dehcWb Yebb[Yj_ed fhWYj_Y[i \eh Wbb Ykijec[hi- O^[h[ Wh[ i[l[hWb X_bb Wii_ijWdY[ efj_edi WlW_bWXb[ je h[i_Z[dj_Wb
Ykijec[hi+ _dYbkZ_d] j^[ Whh[WhW][ cWdW][c[dj fhe]hWc+ j^Wj mWi if[Y_\_YWbbo Z[i_]d[Z je ^[bf m_j^ X_bbi _dYkhh[Z Zkh_d] j^[ fWdZ[c_Y- R[ ^Wl[ dej
[nf[h_[dY[Z WdZ Ze dej Ykhh[djbo Wdj_Y_fWj[ i_]d_\_YWdj h[i_Z[dj_Wb c[j[h Z_iYedd[Yj_edi-
r IR IWjkhWb ^Wi i[[d bem[h kj_b_jo cWh]_d \hec W h[ZkYj_ed _d el[hWbb iWb[i lebkc[i Zkh_d] 1/10 WdZ 1/1/ Wjjh_Xkj[Z je >JQD?,08- ?k[ je j^[
i[WiedWb_jo e\ ekh ]Wi kj_b_jo Xki_d[ii+ m[ cWo Yedj_dk[ je [nf[h_[dY[ Z[Yb_d[i _d lebkc[i+ fWhj_YkbWhbo Zkh_d] ekh m_dj[h ^[Wj_d] i[Wied+ Z[f[dZ_d] ed
j^[ h[i_b_[dYo e\ Xki_d[ii[i _d j^[ Yecckd_j_[i _d m^_Y^ m[ i[hl[ _dje 1/11- Cem[l[h+ lebkc[i Ze dej jhWdibWj[ Z_h[Yjbo je [Whd_d]i Wi j^[ cW`eh_jo e\
ekh IB? cWh]_d _i dej Z[f[dZ[dj ed lebkc[i-
r R^_b[ m[ Z[\[hh[Z je W h[]kbWjeho Wii[j Y[hjW_d >JQD?,h[bWj[Z \_dWdY_Wb _cfWYji Wi W]h[[Z kfed m_j^ h[]kbWjehi+ kbj_cWj[ h[Yel[ho e\ j^[i[ Yeiji WdZ
fhkZ[dY[ h[l_[m m_bb X[ Z[j[hc_d[Z j^hek]^ i[fWhWj[ fheY[[Z_d]i WdZ cWo X[ ikX`[Yj je ceZ_\_YWj_ed Wi W h[ikbj e\ j^ei[ fheY[[Z_d]i- O^[ h[Ye]d_j_ed
e\ bWj[ \[[ h[l[dk[ cWo Wbie X[ Z[bWo[Z X[oedZ ekh Ykhh[dj [nf[YjWj_edi- N[[ uM[ikbji e\ Jf[hWj_edi s M[]kbWjeho HWjj[hi s 0:@61'*- ;SPDFTT BOE
1FGFSSBM 1PDLFUTv X[bem-
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Z[l[befc[dji je jWa[ WZZ_j_edWb c[Wikh[i m[ X[b_[l[ Wh[ mWhhWdj[Z je Yedj_dk[ fhel_Z_d] iW\[ WdZ h[b_WXb[ i[hl_Y[ je ekh Ykijec[hi WdZ Yecckd_j_[i m^_b[
fhej[Yj_d] ekh [cfbeo[[i-
26
Exhibit No. 2
Page 37 of 206
J. Palfreyman, DI
Gem State Water Company
)')) >DC;>>:
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h[b_WXb[+ WdZ W\\ehZWXb[ [d[h]o _d Wd [dl_hedc[djWbbo h[ifedi_Xb[ mWo je X[jj[h j^[ b_l[i e\ j^[ fkXb_Y m[ i[hl[- Jkh mWj[h WdZ mWij[mWj[h kj_b_jo Xki_d[ii _i
Yecc_jj[Z je fhel_Z_d] _ji Ykijec[hi m_j^ iW\[+ Yb[Wd+ h[b_WXb[ WdZ W\\ehZWXb[ mWj[h WdZ mWij[mWj[h i[hl_Y[i+ m^_b[ Wbie Yedj_dk_d] je ]hem eh]Wd_YWbbo WdZ
j^hek]^ WYgk_i_j_edi- Jkh d[m ikXi_Z_Who+ IR IWjkhWb M[d[mWXb[i+ _i \eYki[Z ed fhel_Z_d] h[d[mWXb[ dWjkhWb ]Wi je W lWh_[jo e\ i[Yjehi- Dd 1/11+ m[ h[cW_d
\eYki[Z ed j^[ ijhWj[]_Y f_bbWhi e\ ekh Xki_d[ii9 iW\[ % h[b_WXb[ i[hl_Y[: ikf[h_eh Ykijec[h i[hl_Y[: YedijhkYj_l[ b[]_ibWj_l[ feb_Y_[i WdZ h[]kbWj_ed: ]hemj^: WdZ
Zh_l_d] jemWhZ Z[YWhXed_pWj_ed-
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IR IWjkhWb+ m[ h[cW_d \eYki[Z ed iW\[jo WdZ [c[h][dYo h[ifedi[ j^hek]^ ^WdZi,ed+ iY[dWh_e,XWi[Z jhW_d_d] \eh [cfbeo[[i+ j^_hZ,fWhjo YedjhWYjehi+ WdZ \_hij
h[ifedZ[hi- O^[ h[b_WX_b_jo+ h[i_b_[dYo WdZ iW\[jo e\ ekh ]Wi ioij[c _i Yh_j_YWb WdZ je j^_i [dZ+ m[ h[cW_d \eYki[Z ed _dl[ij_d] _d d[Y[iiWho kf]hWZ[i WdZ
h[fbWY_d] a[o ioij[c Yecfed[dji+ fh[l[dj_d] j^_hZ,fWhjo ZWcW][i+ WdZ f[h\ehc_d] h[]kbWh _dif[Yj_edi WdZ Wii[iic[dji- NW\[jo \eh ekh ]Wi _d\hWijhkYjkh[ Wbie
_dYbkZ[i cW_djW_d_d] WdZ ijh[d]j^[d_d] ekh YoX[hi[Ykh_jo Z[\[di[i+ kf]hWZ_d] a[o j[Y^debe]o ioij[ci+ ikY^ Wi ekh [dj[hfh_i[ h_ia fbWdd_d] ioij[c WdZ
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h[WZ_bo fh_eh_j_p[ YWf_jWb _dl[ijc[dji-
FHEL?:?D= IKF;H?EH 9KIJEC;H ;NF;H?;D9;)R[ ^Wl[ W b[]WYo e\ fhel_Z_d] [nY[bb[dj Ykijec[h i[hl_Y[ WdZ W bed],ijWdZ_d] Z[Z_YWj_ed je Yedj_dkeki
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ijkZo \eh j^[ bWij i[l[hWb o[Whi-
7:L7D9?D= 9EDIJHK9J?L; B;=?IB7J?L; FEB?9?;I 7D: H;=KB7J?ED)IR IWjkhWb ^Wi W ^_ijeho e\ meha_d] fheZkYj_l[bo m_j^ bWmcWa[hi WdZ h[]kbWjehi- Aeh
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]Wi \eh j^[_h Ykijec[hi- Dd 1/11+ m[ _dj[dZ je Yedj_dk[ je fheWYj_l[bo Yecckd_YWj[ m_j^ feb_YocWa[hi WdZ ej^[h ijWa[^ebZ[hi WXekj m^Wj m[ X[b_[l[ _i j^[
_cfehjWdj heb[ e\ j^[ ]Wi ioij[c _d WY^_[l_d] Yb_cWj[ ]eWbi \eh ekh Yecckd_j_[i- R_j^ h[]kbWjehi+ m[ Yedj_dk[ je ijh_l[ je meha fheZkYj_l[bo ed ef[d fheY[[Z_d]i-
Aeh ekh mWj[h kj_b_j_[i+ m[ Wh[ \eYki[Z ed meha_d] YebbWXehWj_l[bo m_j^ h[]kbWjehi+ fkhik_d] [\\_Y_[dj WffhelWb fheY[ii[i \eh WYgk_i_j_edi+ \_b_d] ][d[hWb hWj[ YWi[i
m^[h[ d[[Z[Z je ikffehj _dl[ijc[dji+ WdZ [d]W]_d] _d YedijhkYj_l[ h[]kbWjeho fheY[[Z_d]i-
;D78B?D= =HEMJ>)Cec[emd[hi _d ekh i[hl_Y[ j[hh_jeho fh[\[h dWjkhWb ]Wi \eh ^[Wj_d] WdZ Yeea_d] ]_l[d _ji W\\ehZWXb[+ [\\_Y_[dj+ WdZ h[b_WXb[ gkWb_j_[i- R[ Wh[
\eYki[Z ed b[l[hW]_d] j^[i[ a[o Wjjh_Xkj[i je YWf_jWb_p[ ed ekh h[]_ed&i Yedj_dk[Z ijhed] ^eki_d] ]hemj^- R[&bb ijh_l[ je Yedj_dk[ ]hem_d] ekh cWha[j i^Wh[ _d j^[
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h[d[mWXb[ dWjkhWb ]Wi je j^[ kj_b_jo+ Yecc[hY_Wb+ _dZkijh_Wb WdZ jhWdifehjWj_ed i[Yjehi- Dd 1/11+ m[ _dj[dZ je Yedj_dk[ je fkhik[ j^[i[ h[d[mWXb[ effehjkd_j_[i-
B;7:?D= ED :;97H8ED?P7J?ED)R[ Wh[ Z[[fbo Yecc_jj[Z je W Yb[Wd [d[h]o \kjkh[ WdZ [dl_hedc[djWb ij[mWhZi^_f- IR IWjkhWb ^Wi X[[d W b[WZ[h Wced] ]Wi
kj_b_j_[i _d _ddelWj_l[ fhe]hWci Z[i_]d[Z je ikffehj W bem YWhXed \kjkh[- IejWXb[ fhe]hWci ^Wl[ _dYbkZ[Z W Z[Yekfb_d] hWj[ ijhkYjkh[ Z[i_]d[Z je m[Wa[d j^[ b_da
X[jm[[d [Whd_d]i WdZ ]Wi Yedikcfj_ed Xo Ykijec[hi WZefj[Z _d 1//6+ [ijWXb_i^c[dj e\ W lebkdjWho NcWhj @d[h]o YWhXed e\\i[j fhe]hWc \eh Ykijec[hi
[ijWXb_i^[Z _d 1//6+ WdZ h[celWb e\ Wbb ademd YWij _hed WdZ XWh[ ij[[b je Yh[Wj[ ed[ e\ j^[ j_]^j[ij WdZ ceij ceZ[hd Z_ijh_Xkj_ed ioij[ci _d j^[ Yekdjho- IR
IWjkhWb bWkdY^[Z W bem,YWhXed _d_j_Wj_l[ _d 1/06 je h[ZkY[ [c_ii_edi _d j^[ Yecckd_j_[i m[ i[hl[ Xo b[l[hW]_d] ekh ceZ[hd dWjkhWb ]Wi f_f[b_d[ ioij[c _d d[m
mWoi+ meha_d] Ybei[bo m_j^ Ykijec[hi+ feb_YocWa[hi WdZ h[]kbWjehi+ WdZ [cXhWY_d] d[m j[Y^debe]o- Dd 1/1/ WdZ 1/10+ kdZ[h Jh[]ed N[dWj[ =_bb 87+ IR
IWjkhWb X[]Wd _dl[ij_d] _d WdZ YedjhWYj_d] \eh MIB,[d[h]o fheZkY[Z \hec YWfjkh_d] c[j^Wd[ \hec Z[Yecfei_d] eh]Wd_Y cWj[h_Wb+ _dYbkZ_d] \eeZ+ W]h_YkbjkhWb
WdZ \eh[ij mWij[+ mWij[ mWj[h WdZ bWdZ\_bbi+ YedZ_j_ed_d] j^[ c[j^Wd[ je f_f[b_d[ gkWb_jo WdZ WZZ_d] _j je dWjkhWb ]Wi ioij[ci Wi Wd [d[h]o iekhY[- MIB ^Wi
fem[h\kb fej[dj_Wb je h[ZkY[ d[j BCB [c_ii_edi WdZ m[ ^Wl[ X[]kd fheYkh_d] _j WdZ _ji Wjjh_Xkj[i ed X[^Wb\ e\ Ykijec[hi- Oe ZWj[+ IR IWjkhWb ^Wi i_]d[Z
W]h[[c[dji m_j^ efj_edi je fkhY^Wi[ eh Z[l[bef MIB \eh kj_b_jo Ykijec[hi jejWb_d] WXekj 2$ e\ IR IWjkhWb&i WddkWb iWb[i lebkc[ _d Jh[]ed- Dd 1/11+ IR
IWjkhWb _dj[dZi je Yedj_dk[ ijh_l_d] je9 [n[Ykj[ ed ekh h[d[mWXb[ ijhWj[]o Xo ^[bf_d] ekh Ykijec[hi h[ZkY[ WdZ e\\i[j j^[_h Yedikcfj_ed+ fheYkh[ WdZ _dl[ij _d
MIB \eh ekh Ykijec[hi kdZ[h Jh[]ed N[dWj[ =_bb 87+ [n[Ykj[ ed ekh MIB _dj[hYedd[Yj_ed fhe`[Yji+ Yedj_dk[ Z[l[bef_d] lebkdjWho h[d[mWXb[ fheZkYj e\\[h_d]i
\eh ekh Ykijec[hi+ WdZ [nfbeh[ h[d[mWXb[ ^oZhe][d- R[ Wbie _dj[dZ je b[l[hW][ j[Y^debe]o WdZ h[bWj_edi^_fi je [nWc_d[ mWoi je h[ZkY[ [c_ii_edi WYheii j^[
[dj_h[ lWbk[ Y^W_d \hec ikffb_[hi je [dZ,ki[ ^[Wj_d] Wffb_WdY[i-
27
Exhibit No. 2
Page 38 of 206
J. Palfreyman, DI
Gem State Water Company
49E945=4B
IR CebZ_d]i Z_l_Z[dZ ^_]^b_]^ji _dYbkZ[9
;FS DPNNPO TIBSF 1/10 1/1/1/08
?_l_Z[dZi fW_Z #0-8114 #0-8014 #0-8/14
Dd EWdkWho 1/11+ j^[ =eWhZ e\ ?_h[Yjehi e\ IR CebZ_d]i Z[YbWh[Z W gkWhj[hbo Z_l_Z[dZ ed IR CebZ_d]i Yecced ijeYa e\ #/-3714 f[h i^Wh[+ fWoWXb[ ed
A[XhkWho 04+ 1/11+ je i^Wh[^ebZ[hi e\ h[YehZ ed EWdkWho 20+ 1/11+ h[\b[Yj_d] Wd _dZ_YWj[Z WddkWb Z_l_Z[dZ hWj[ e\ #0-82 f[h i^Wh[-
N[[ "A_dWdY_Wb >edZ_j_ed ' 7JRVJEJUZ BOE 0BQJUBM <FTPVSDFT" \eh ceh[ _d\ehcWj_ed h[]WhZ_d] j^[ IR CebZ_d]i WdZ IR IWjkhWb Z_l_Z[dZ feb_Y_[i WdZ h[]kbWjeho
YedZ_j_edi ed IR IWjkhWb Z_l_Z[dZi je _ji fWh[dj+ IR CebZ_d]i-
A5BD;CB >6 >?5A1C9>=B
HUWe\Qd_bi CQddUbc
M[]kbWj_ed WdZ MWj[i
D7JKH7B =7I :?IJH?8KJ?ED)IR IWjkhWb&i dWjkhWb ]Wi Z_ijh_Xkj_ed Xki_d[ii _i ikX`[Yj je h[]kbWj_ed Xo j^[ JKP> WdZ RPO> m_j^ h[if[Yj je+ Wced] ej^[h
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28
Exhibit No. 2
Page 39 of 206
J. Palfreyman, DI
Gem State Water Company
Ahec Iel[cX[h 0+ 1/07 j^hek]^ JYjeX[h 20+ 1/1/+ j^[ JKP> Wkj^eh_p[Z hWj[i je Ykijec[hi XWi[Z ed Wd MJ@ e\ 8-3$+ Wd el[hWbb hWj[ e\ h[jkhd e\ 6-206$+ WdZ
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[\\[Yj Iel[cX[h 0+ 1/11-
3/
Exhibit No. 2
Page 40 of 206
J. Palfreyman, DI
Gem State Water Company
MWj[ H[Y^Wd_ici
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30
Exhibit No. 2
Page 41 of 206
J. Palfreyman, DI
Gem State Water Company
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31
Exhibit No. 2
Page 42 of 206
J. Palfreyman, DI
Gem State Water Company
r Keij,h[l_[m , O^_i YbWii e\ Yeiji h[fh[i[dji h[c[Z_Wj_ed if[dZ j^Wj ^Wi X[[d Z[[c[Z fhkZ[dj WdZ Wbbem[Z W\j[h Wffbo_d] j^[ [Whd_d]i j[ij+ Xkj _i dej o[j
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32
Exhibit No. 2
Page 43 of 206
J. Palfreyman, DI
Gem State Water Company
O^[ \ebbem_d] jWXb[ fh[i[dji j^[ Yh[Z_ji je IB? Ykijec[hi9
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33
Exhibit No. 2
Page 44 of 206
J. Palfreyman, DI
Gem State Water Company
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34
Exhibit No. 2
Page 45 of 206
J. Palfreyman, DI
Gem State Water Company
Aeh Yeiji j^Wj [nY[[Z #7-44 c_bb_ed kf je #01 c_bb_ed+ 7/$ cWo X[ h[Yel[h[Z \hec Ykijec[hi- Aeh Yeiji j^Wj [nY[[Z #01 c_bb_ed+ 4/$ cWo X[ h[Yel[h[Z- <i e\
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Yecfb_WdY[ Yeiji _d hWj[i-
1
35
Exhibit No. 2
Page 46 of 206
J. Palfreyman, DI
Gem State Water Company
Jh[]ed NjWj[
Jd HWhY^ 0/+ 1/1/+ j^[ ]el[hdeh e\ Jh[]ed _iik[Z Wd [n[Ykj_l[ ehZ[h '@J( [ijWXb_i^_d] ]h[[d^eki[ ]Wi 'BCB( [c_ii_edi h[ZkYj_ed ]eWbi e\ Wj b[Wij 34$
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36
Exhibit No. 2
Page 47 of 206
J. Palfreyman, DI
Gem State Water Company
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37
Exhibit No. 2
Page 48 of 206
J. Palfreyman, DI
Gem State Water Company
8ecY^Ucc IUW]U^d ( DQdebQ\ =Qc :YcdbYRedY_^ #D=:$
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38
Exhibit No. 2
Page 49 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 50 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 51 of 206
J. Palfreyman, DI
Gem State Water Company
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41
Exhibit No. 2
Page 52 of 206
J. Palfreyman, DI
Gem State Water Company
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42
Exhibit No. 2
Page 53 of 206
J. Palfreyman, DI
Gem State Water Company
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6O NJMMJPOT& FYDFQU 2;= EBUB 1/10 1/1/1/08
IR IWjkhWb ej^[h , d[j _dYec[#01-1 #6-/ #7-0
Jj^[h IR CebZ_d]i WYj_l_jo '1-4('/-2('2-5(
IR CebZ_d]i ej^[h , d[j _dYec[#8-6 #5-6 #3-4
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ej^[h \eh IR IWjkhWb-
9_^c_\YTQdUT E`UbQdY_^c
Jf[hWj_edi WdZ HW_dj[dWdY[
Jf[hWj_edi WdZ cW_dj[dWdY[ ^_]^b_]^ji _dYbkZ[9
6O NJMMJPOT 1/10 1/1/1/08
IR IWjkhWb #077-7 #057-8 #058-0
Jj^[h IR CebZ_d]i ef[hWj_edi WdZ cW_dj[dWdY[04-3 00-1 8-0
IR CebZ_d]i #1/3-1 #07/-0 #067-1
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r #6-3 c_bb_ed _dYh[Wi[ _d YedjhWYjeh+ fhe\[ii_edWb i[hl_Y[ \[[i WdZ b_Y[di[ Yeiji h[bWj[Z je _d\ehcWj_ed j[Y^debe]o ioij[c kf]hWZ[i:
r #3-7 c_bb_ed _dYh[Wi[ h[bWj[Z je ^_]^[h Yecf[diWj_ed WdZ X[d[\_j Yeiji: WdZ
r #2-5 c_bb_ed _dYh[Wi[ _d b[Wi[ [nf[di[ h[bWj[Z je W d[m ^[WZgkWhj[hi WdZ ef[hWj_edi Y[dj[h-
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r #3-1 c_bb_ed _dYh[Wi[ _d ej^[h IR CebZ_d]i ef[hWj_edi WdZ cW_dj[dWdY[ [nf[di[ fh_cWh_bo Zk[ je ^_]^[h Xki_d[ii Z[l[befc[dj WdZ Yedikbj_d] Yeiji Wj j^[
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r #3-4 c_bb_ed _dYh[Wi[ _d YedjhWYjeh WdZ fhe\[ii_edWb i[hl_Y[ [nf[di[i+ WdZ cel_d] Yeiji+ Wi m[ cel[Z je W d[m ^[WZgkWhj[hi WdZ ef[hWj_edi Y[dj[h:
r #0-5 c_bb_ed _dYh[Wi[ h[bWj[Z je ^_]^[h Yecf[diWj_ed Yeiji Wjjh_XkjWXb[ je WddkWb [cfbeo[[ Yeij _dYh[Wi[i: WdZ
43
Exhibit No. 2
Page 54 of 206
J. Palfreyman, DI
Gem State Water Company
r #0-3 c_bb_ed _dYh[Wi[ Zk[ je ^_]^[h b[Wi[ [nf[di[ \eh j^[ d[m ^[WZgkWhj[hi WdZ ef[hWj_edi Y[dj[h-
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r #1-1 c_bb_ed _dYh[Wi[ _d ej^[h IR CebZ_d]i ef[hWj_edi WdZ cW_dj[dWdY[ [nf[di[ fh_cWh_bo Zk[ je ef[hWj_d] [nf[di[i Wj ekh mWj[h WdZ mWij[mWj[h kj_b_j_[i
j^Wj ^Wl[ X[[d WYgk_h[Z i_dY[ 1/08: fWhj_Wbbo e\\i[j Xo
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6O NJMMJPOT 1/10 1/1/1/08
IR IWjkhWb #00/-4 #0/0-5 #8/-3
Jj^[h IR CebZ_d]i Z[fh[Y_Wj_ed WdZ Wcehj_pWj_ed 2-/1-0 0-0
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Jj^[h DdYec[ '@nf[di[(+ I[j
Jj^[h _dYec[ '[nf[di[(+ d[j ^_]^b_]^ji _dYbkZ[9
6O NJMMJPOT 1/10 1/1/1/08
IR IWjkhWb jejWb ej^[h _dYec[ '[nf[di[(+ d[j #'01-6( #'04-0( #'12-/(
Jj^[h IR CebZ_d]i WYj_l_jo /-0 0-1 /-1
IR CebZ_d]i jejWb ej^[h _dYec[ '[nf[di[(+ d[j #'01-5( #'02-8( #'11-7(
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Ddj[h[ij @nf[di[+ I[j
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6O NJMMJPOT 1/10 1/1/1/08
IR IWjkhWb #32-/ #3/-8 #30-2
Jj^[h IR CebZ_d]i _dj[h[ij [nf[di[0-4 1-1 0-3
IR CebZ_d]i #33-4 #32-0 #31-6
44
Exhibit No. 2
Page 55 of 206
J. Palfreyman, DI
Gem State Water Company
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6O NJMMJPOT 1/10 1/1/1/08
DdYec[ jWn [nf[di[#16-3 #10-0 #01-5
@\\[Yj_l[ jWn hWj[14-7 $12-0 $05-1 $
IR IWjkhWb _dYec[ jWn [nf[di[ ^_]^b_]^ji _dYbkZ[9
6O NJMMJPOT 1/10 1/1/1/08
DdYec[ jWn [nf[di[#17-2 #10-0 #03-0
@\\[Yj_l[ jWn hWj[14-8 $12-/ $05-8 $
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45
Exhibit No. 2
Page 56 of 206
J. Palfreyman, DI
Gem State Water Company
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46
Exhibit No. 2
Page 57 of 206
J. Palfreyman, DI
Gem State Water Company
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47
Exhibit No. 2
Page 58 of 206
J. Palfreyman, DI
Gem State Water Company
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48
Exhibit No. 2
Page 59 of 206
J. Palfreyman, DI
Gem State Water Company
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5/
Exhibit No. 2
Page 60 of 206
J. Palfreyman, DI
Gem State Water Company
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50
Exhibit No. 2
Page 61 of 206
J. Palfreyman, DI
Gem State Water Company
WYY[b[hWj[ j^[ cWjkh_jo e\ Wbb Wcekdji ekjijWdZ_d]- IR CebZ_d]i mWi _d Yecfb_WdY[ m_j^ j^_i Yel[dWdj Wj ?[Y[cX[h 20+ 1/10+ m_j^ W Yedieb_ZWj[Z _dZ[Xj[Zd[ii
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51
Exhibit No. 2
Page 62 of 206
J. Palfreyman, DI
Gem State Water Company
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IR CebZ_d]i WdZ IR IWjkhWb ^Wl[ b[Wi[ WdZ fkhY^Wi[ Yecc_jc[dji h[bWj_d] je ekh ef[hWj_d] WYj_l_j_[i j^Wj Wh[ \_dWdY[Z m_j^ YWi^ \bemi \hec ef[hWj_edi- Aeh
_d\ehcWj_ed ed YWi^ \bem h[gk_h[c[dji h[bWj[Z je b[Wi[i WdZ ej^[h fkhY^Wi[ Yecc_jc[dji+ i[[ Iej[ 6 WdZ Iej[ 05-
Ddl[ij_d] <Yj_l_j_[i
6O NJMMJPOT 1/10 1/1/1/08
IR IWjkhWb YWi^ ki[Z _d _dl[ij_d] WYj_l_j_[i #'164-6( #'153-0( #'132-0(
IR CebZ_d]i YWi^ ki[Z _d _dl[ij_d] WYj_l_j_[i #'2//-0( #'183-2( #'2/2-7(
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52
Exhibit No. 2
Page 63 of 206
J. Palfreyman, DI
Gem State Water Company
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j[hc Z[Xj eh [gk_jo+ Wi Wffhefh_Wj[-
A_dWdY_d] <Yj_l_j_[i
6O NJMMJPOT 1/10 1/1/1/08
IR IWjkhWb YWi^ fhel_Z[Z Xo \_dWdY_d] WYj_l_j_[i #028-2 #011-3 #43-8
IR CebZ_d]i YWi^ fhel_Z[Z Xo \_dWdY_d] WYj_l_j_[i #020-3 #060-7 #004-4
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53
Exhibit No. 2
Page 64 of 206
J. Palfreyman, DI
Gem State Water Company
9_^dY^WU^d BYQRY\YdYUc
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54
Exhibit No. 2
Page 65 of 206
J. Palfreyman, DI
Gem State Water Company
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55
Exhibit No. 2
Page 66 of 206
J. Palfreyman, DI
Gem State Water Company
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56
Exhibit No. 2
Page 67 of 206
J. Palfreyman, DI
Gem State Water Company
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57
Exhibit No. 2
Page 68 of 206
J. Palfreyman, DI
Gem State Water Company
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58
Exhibit No. 2
Page 69 of 206
J. Palfreyman, DI
Gem State Water Company
DO@H 6<- LP<IODO<ODQ@ <I? LP<GDO<ODQ@ ?DN>GJNPM@N <=JPO H<MF@O MDNF
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6/
Exhibit No. 2
Page 70 of 206
J. Palfreyman, DI
Gem State Water Company
O^[ \ebbem_d] jWXb[ ikccWh_p[i IR IWjkhWb&i el[hWbb \_dWdY_Wb imWf WdZ efj_ed Yh[Z_j [nfeikh[+ XWi[Z ed [ij_cWj[Z \W_h lWbk[+ WdZ j^[ Yehh[ifedZ_d]
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60
Exhibit No. 2
Page 71 of 206
J. Palfreyman, DI
Gem State Water Company
DO@H 7- ADI<I>D<G NO<O@H@ION <I? NPKKG@H@IO<MT ?<O<
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Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji 8/
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@dZ[Z ?[Y[cX[h 20+ 1/10+ 1/1/+ WdZ 1/08 018
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61
Exhibit No. 2
Page 72 of 206
J. Palfreyman, DI
Gem State Water Company
=F 8>;49=7B <1=175<5=C\B A5?>AC >= 9=C5A=1; 3>=CA>; >E5A 69=1=391; A5?>AC9=7
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62
Exhibit No. 2
Page 73 of 206
J. Palfreyman, DI
Gem State Water Company
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63
Exhibit No. 2
Page 74 of 206
J. Palfreyman, DI
Gem State Water Company
A5?>AC >6 9=45?5=45=C A579BC5A54 ?D2;93 133>D=C9=7 69A<
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64
Exhibit No. 2
Page 75 of 206
J. Palfreyman, DI
Gem State Water Company
3WQYQKJR 1ZLQY <JYYMWX
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65
Exhibit No. 2
Page 76 of 206
J. Palfreyman, DI
Gem State Water Company
A5?>AC >6 9=45?5=45=C A579BC5A54 ?D2;93 133>D=C9=7 69A<
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66
Exhibit No. 2
Page 77 of 206
J. Palfreyman, DI
Gem State Water Company
WdZ i[jjb[c[dj e\ h[]kbWjeho b_WX_b_j_[i+ '__( [lWbkWj_d] j^[ ik\\_Y_[dYo e\ j^[ Z_iYbeikh[i _d j^[ Yedieb_ZWj[Z \_dWdY_Wb ijWj[c[dji+ WdZ '___( j[ij_d] j^[ h[]kbWjeho
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67
Exhibit No. 2
Page 78 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>JINJGD?<O@? NO<O@H@ION JA >JHKM@C@INDQ@ DI>JH@ 'GJNN(
T[Wh @dZ[Z ?[Y[cX[h 20+
6O UIPVTBOET& FYDFQU QFS TIBSF EBUB 1/10 1/1/1/08
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Jf[hWj_d] [nf[di[i9
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Jf[hWj_edi WdZ cW_dj[dWdY[1/3+116 07/+018 067+080
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?[fh[Y_Wj_ed WdZ Wcehj_pWj_ed 002+423 0/2+572 80+385
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68
Exhibit No. 2
Page 79 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>JINJGD?<O@? =<G<I>@ NC@@ON
<i e\ ?[Y[cX[h 20+
6O UIPVTBOET 1/10 1/1/
<ii[ji9
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>Wi^ WdZ YWi^ [gk_lWb[dji #07+448 #2/+057
<YYekdji h[Y[_lWXb[0/0+384 77+/72
<YYhk[Z kdX_bb[Z h[l[dk[71+058 46+838
<bbemWdY[ \eh kdYebb[Yj_Xb[ WYYekdji '1+/07('2+108(
M[]kbWjeho Wii[ji 61+280 20+634
?[h_lWj_l[ _dijhkc[dji 37+02/02+567
Ddl[djeh_[i 46+151 31+580
DdYec[ jWn[i h[Y[_lWXb[t 5+///
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OejWb Ykhh[dj Wii[ji 326+165 212+134
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G[ii9 <YYkckbWj[Z Z[fh[Y_Wj_ed 0+014+762 0+/68+158
OejWb fhef[hjo+ fbWdj+ WdZ [gk_fc[dj+ d[j 1+760+26/1+543+66/
M[]kbWjeho Wii[ji 203+468 237+816
?[h_lWj_l[ _dijhkc[dji 0/+62/5+024
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Jf[hWj_d] b[Wi[ h_]^j e\ ki[ Wii[j+ d[j 64+/38 66+335
<ii[ji kdZ[h iWb[i,jof[ b[Wi[i 027+884 032+648
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N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
7/
Exhibit No. 2
Page 80 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>JINJGD?<O@? =<G<I>@ NC@@ON
<i e\ ?[Y[cX[h 20+
6O UIPVTBOET 1/10 1/1/
G_WX_b_j_[i WdZ [gk_jo9
>khh[dj b_WX_b_j_[i9
N^ehj,j[hc Z[Xj #278+4// #2/3+414
>khh[dj cWjkh_j_[i e\ bed],j[hc Z[Xj 234 84+233
<YYekdji fWoWXb[022+375 86+855
OWn[i WYYhk[Z 04+41/02+701
Ddj[h[ij WYYhk[Z 6+4/2 6+330
M[]kbWjeho b_WX_b_j_[i 001+170 4/+251
?[h_lWj_l[ _dijhkc[dji 0/+3/1 3+087
Jf[hWj_d] b[Wi[ b_WX_b_j_[i 0+185 0+0/4
Jj^[h Ykhh[dj b_WX_b_j_[i 43+321 41+22/
OejWb Ykhh[dj b_WX_b_j_[i 613+654 516+/72
Ged],j[hc Z[Xj 0+/33+476 75/+/70
?[\[hh[Z Yh[Z_ji WdZ ej^[h ded,Ykhh[dj b_WX_b_j_[i9
?[\[hh[Z jWn b_WX_b_j_[i 23/+120 208+181
M[]kbWjeho b_WX_b_j_[i 547+221 528+552
K[di_ed WdZ ej^[h feijh[j_h[c[dj X[d[\_j b_WX_b_j_[i 055+573 106+176
?[h_lWj_l[ _dijhkc[dji 301 1+741
Jf[hWj_d] b[Wi[ b_WX_b_j_[i 68+357 7/+510
Jj^[h ded,Ykhh[dj b_WX_b_j_[i 003+868 01/+656
OejWb Z[\[hh[Z Yh[Z_ji WdZ ej^[h ded,Ykhh[dj b_WX_b_j_[i 0+25/+0/5 0+27/+371
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20+ 1/10 WdZ 1/1/+ h[if[Yj_l[bo 48/+660 454+001
M[jW_d[Z [Whd_d]i 244+668 225+412
<YYkckbWj[Z ej^[h Yecfh[^[di_l[ beii '00+3/3('01+8/1(
OejWb [gk_jo 824+035 777+622
OejWb b_WX_b_j_[i WdZ [gk_jo #3+/53+5/3 #2+645+268
N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
70
Exhibit No. 2
Page 81 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>JINJGD?<O@? NO<O@H@ION JA NC<M@CJG?@MN& @LPDOT
>ecced NjeYa M[jW_d[Z@Whd_d]i
<YYkckbWj[Z Jj^[h
>ecfh[^[di_l[DdYec[ 'Geii(OejWb@gk_jo6O UIPVTBOET
=WbWdY[ Wj ?[Y[cX[h 20+ 1/07 #346+53/ #201+071 #'6+077( #651+523
>ecfh[^[di_l[ _dYec[ 'beii(t 50+624 '1+068(48+445
?_l_Z[dZi ed Yecced ijeYa+ #0-8/ f[h i^Wh[t '45+722(t '45+722(
NjeYa,XWi[Z Yecf[diWj_ed 1+5/0 t t 1+5/0
N^Wh[i _iik[Z fkhikWdj je [gk_jo XWi[Z fbWdi 4+/74 t t 4+/74
DiikWdY[ e\ Yecced ijeYa+ d[j e\ _iikWdY[ Yeiji 81+845 t t 81+845
M[YbWii_\_YWj_ed e\ jWn [\\[Yji \hec j^[ O>E<t 0+255 '0+255(t
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?_l_Z[dZi ed Yecced ijeYa+ #0-80 f[h i^Wh[t '47+6/7(t '47+6/7(
NjeYa,XWi[Z Yecf[diWj_ed 3+250 t t 3+250
N^Wh[i _iik[Z fkhikWdj je [gk_jo XWi[Z fbWdi 1+358 t t 1+358
=WbWdY[ Wj ?[Y[cX[h 20+ 1/1/454+001 225+412 '01+8/1(777+622
>ecfh[^[di_l[ _dYec[ 'beii(t 67+555 0+387 7/+053
?_l_Z[dZi ed Yecced ijeYa+ #0-81 f[h i^Wh[t '48+30/(t '48+30/(
NjeYa,XWi[Z Yecf[diWj_ed 2+504 t t 2+504
N^Wh[i _iik[Z fkhikWdj je [gk_jo XWi[Z fbWdi 3+432 t t 3+432
DiikWdY[ e\ Yecced ijeYa+ d[j e\ _iikWdY[ Yeiji 06+4/0 t t 06+4/0
=WbWdY[ Wj ?[Y[cX[h 20+ 1/10 #48/+660 #244+668 #'00+3/3( #824+035
N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
71
Exhibit No. 2
Page 82 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>JINJGD?<O@? NO<O@H@ION JA ><NC AGJRN
T[Wh @dZ[Z ?[Y[cX[h 20+
6O UIPVTBOET 1/10 1/1/1/08
Jf[hWj_d] WYj_l_j_[i9
I[j _dYec[# 67+555 # 65+670 #50+624
<Z`kijc[dji je h[YedY_b[ d[j _dYec[ je YWi^ fhel_Z[Z Xo ef[hWj_edi9
?[fh[Y_Wj_ed WdZ Wcehj_pWj_ed 002+423 0/2+572 80+385
M[]kbWjeho Wcehj_pWj_ed e\ ]Wi h[i[hl[i 02+786 06+668 08+061
?[\[hh[Z _dYec[ jWn[i 03+506 07+556 5+206
LkWb_\_[Z Z[\_d[Z X[d[\_j f[di_ed fbWd [nf[di[05+445 07+26/05+386
>edjh_Xkj_edi je gkWb_\_[Z Z[\_d[Z X[d[\_j f[di_ed fbWdi '8+48/('17+87/('0/+86/(
?[\[hh[Z [dl_hedc[djWb [nf[dZ_jkh[i+ d[j '07+076('16+760('05+115(
@dl_hedc[djWb h[c[Z_Wj_ed [nf[di[8+827 8+580 01+226
M[]kbWjeho Z_iWbbemWdY[ e\ f[di_ed Yeiji t t 0/+4//
BW_d ed iWb[ e\ Z_iYedj_dk[Z ef[hWj_edi+ d[j e\ jWn t '4+8/1(t
Jj^[h 00+458 '5+831(03+65/
>^Wd][i _d Wii[ji WdZ b_WX_b_j_[i9
M[Y[_lWXb[i+ d[j '33+017('05+688(4+733
Ddl[djeh_[i '03+460(0+151 '4+858(
DdYec[ WdZ ej^[h jWn[i 2+181 '0/+60/(3+417
<YYekdji fWoWXb[01+007 '04+80/('05+374(
?[\[hh[Z ]Wi Yeiji '3/+430(06+48/'12+360(
<ii[j efj_c_pWj_ed h[l[dk[ i^Wh_d]33+347 '6+133(544
?[Yekfb_d] c[Y^Wd_ic '4+1/5(1+773 07+550
Jj^[h+ d[j '15+/58('1+814('3+/7/(
?_iYedj_dk[Z ef[hWj_edi t 0+783 601
>Wi^ fhel_Z[Z Xo ef[hWj_d] WYj_l_j_[i 05/+242 034+207 075+/02
Ddl[ij_d] WYj_l_j_[i9
>Wf_jWb [nf[dZ_jkh[i '182+781('162+/05('112+360(
<Ygk_i_j_edi+ d[j e\ YWi^ WYgk_h[Z '0+178('27+152('45+675(
G[Wi[^ebZ _cfhel[c[dj [nf[dZ_jkh[i '0+253('6+767('07+701(
KheY[[Zi \hec j^[ iWb[ e\ Wii[ji 2+815 7+038 548
KkhY^Wi[ e\ [gk_jo c[j^eZ _dl[ijc[dj '03+34/(t t
KheY[[Zi \hec iWb[ e\ [gk_jo c[j^eZ _dl[ijc[dj 6+///6+///t
KheY[[Zi \hec iWb[ e\ Z_iYedj_dk[Z ef[hWj_edi t 01+4//t
Jj^[h '43(0+543 '2+433(
?_iYedj_dk[Z ef[hWj_edi t '3+312('0+716(
>Wi^ ki[Z _d _dl[ij_d] WYj_l_j_[i '2//+012('183+166('2/2+670(
72
Exhibit No. 2
Page 83 of 206
J. Palfreyman, DI
Gem State Water Company
T[Wh @dZ[Z ?[Y[cX[h 20+
1/10 1/1/1/08
A_dWdY_d] WYj_l_j_[i9
KheY[[Zi \hec Yecced ijeYa _iik[Z+ d[j 06+4/0 t 81+845
Ged],j[hc Z[Xj _iik[Z 074+///04/+///064+///
Ged],j[hc Z[Xj h[j_h[Z '84+///('64+///('2/+///(
KheY[[Zi \hec j[hc beWd Zk[ m_j^_d ed[ o[Wh 0//+///04/+///t
M[fWoc[dj e\ j[hc beWd '0//+///('04/+///(t
KheY[[Zi \hec Yecc[hY_Wb fWf[h+ cWjkh_j_[i ]h[Wj[h j^Wd j^h[[ cedj^i t 084+/14 t
M[fWoc[dji e\ Yecc[hY_Wb fWf[h+ cWjkh_j_[i ]h[Wj[h j^Wd j^h[[ cedj^i '084+/14(t t
>^Wd][i _d ej^[h i^ehj,j[hc Z[Xj+ d[j 17/+///'28+5//('57+41/(
>Wi^ Z_l_Z[dZ fWoc[dji ed Yecced ijeYa '44+808('44+31/('42+228(
Jj^[h '4+010('2+117('488(
>Wi^ fhel_Z[Z Xo \_dWdY_d] WYj_l_j_[i 020+325 060+666 004+387
DdYh[Wi[ 'Z[Yh[Wi[( _d YWi^+ YWi^ [gk_lWb[dji WdZ h[ijh_Yj[Z YWi^'7+223(11+707 '1+16/(
>Wi^+ YWi^ [gk_lWb[dji WdZ h[ijh_Yj[Z YWi^+ X[]_dd_d] e\ f[h_eZ 24+343 01+525 03+8/5
>Wi^+ YWi^ [gk_lWb[dji WdZ h[ijh_Yj[Z YWi^+ [dZ e\ f[h_eZ #16+01/ #24+343 #01+525
Nkffb[c[djWb Z_iYbeikh[ e\ YWi^ \bem _d\ehcWj_ed9
Ddj[h[ij fW_Z+ d[j e\ YWf_jWb_pWj_ed #32+608 #31+540 #30+120
DdYec[ jWn[i fW_Z 'h[\kdZ[Z(0/+444 02+533 '85(
N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
73
Exhibit No. 2
Page 84 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
>JINJGD?<O@? NO<O@H@ION JA >JHKM@C@INDQ@ DI>JH@ 'GJNN(
T[Wh @dZ[Z ?[Y[cX[h 20+
6O UIPVTBOET 1/10 1/1/1/08
Jf[hWj_d] h[l[dk[i #732+/46 #647+637 #628+833
Jf[hWj_d] [nf[di[i9
>eij e\ ]Wi 181+427 151+87/144+024
Jf[hWj_edi WdZ cW_dj[dWdY[077+651 057+758 058+/80
@dl_hedc[djWb h[c[Z_Wj_ed 8+827 8+580 01+226
B[d[hWb jWn[i 27+04/23+348 21+/64
M[l[dk[ jWn[i 23+5//2/+180 2/+214
?[fh[Y_Wj_ed WdZ Wcehj_pWj_ed 00/+4/3 0/0+475 8/+3/4
Jj^[h ef[hWj_d] [nf[di[i 2+221 2+121 2+12/
OejWb ef[hWj_d] [nf[di[i 566+713 500+0/7 481+487
DdYec[ \hec ef[hWj_edi 054+122 036+53/036+235
Jj^[h _dYec[ '[nf[di[(+ d[j '01+634('04+005('11+857(
Ddj[h[ij [nf[di[+ d[j 31+872 3/+755 30+228
DdYec[ X[\eh[ _dYec[ jWn[i 0/8+4/4 80+547 72+/28
DdYec[ jWn [nf[di[17+222 10+/84 03+/54
I[j _dYec[70+061 6/+452 57+863
Jj^[h Yecfh[^[di_l[ _dYec[ 'beii(9
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1/08 482 '1+737('1+544(
<cehj_pWj_ed e\ ded,gkWb_\_[Z [cfbeo[[ X[d[\_j fbWd b_WX_b_jo+ d[j e\ jWn[i e\ #'21/( \eh 1/10+ #'133( \eh
1/1/+ WdZ #'061( \eh 1/08 8/4 568 365
>ecfh[^[di_l[ _dYec[#71+56/ #57+283 #55+684
N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
74
Exhibit No. 2
Page 85 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
>JINJGD?<O@? =<G<I>@ NC@@ON
<i e\ ?[Y[cX[h 20+
6O UIPVTBOET 1/10 1/1/
<ii[ji9
>khh[dj Wii[ji9
>Wi^ WdZ YWi^ [gk_lWb[dji #01+160 #0/+342
<YYekdji h[Y[_lWXb[88+67/7/+/24
<YYhk[Z kdX_bb[Z h[l[dk[71+/17 46+78/
M[Y[_lWXb[i \hec W\\_b_Wj[i 150 55/
<bbemWdY[ \eh kdYebb[Yj_Xb[ WYYekdji '0+851('2+0/6(
M[]kbWjeho Wii[ji 61+280 20+634
?[h_lWj_l[ _dijhkc[dji 37+02/02+567
Ddl[djeh_[i 45+641 31+214
Jj^[h Ykhh[dj Wii[ji 36+267 38+207
OejWb Ykhh[dj Wii[ji 306+/18 171+886
Ied,Ykhh[dj Wii[ji9
Khef[hjo+ fbWdj+ WdZ [gk_fc[dj 2+820+53/2+572+665
G[ii9 <YYkckbWj[Z Z[fh[Y_Wj_ed 0+008+250 0+/64+335
OejWb fhef[hjo+ fbWdj+ WdZ [gk_fc[dj+ d[j 1+701+168 1+5/7+22/
M[]kbWjeho Wii[ji 203+428 237+776
?[h_lWj_l[ _dijhkc[dji 0/+62/5+024
Jj^[h _dl[ijc[dji 63+675 72+615
Jf[hWj_d] b[Wi[ h_]^j e\ ki[ Wii[j+ d[j 63+876 66+217
<ii[ji kdZ[h iWb[i,jof[ b[Wi[i 027+884 032+648
Jj^[h ded,Ykhh[dj Wii[ji 44+/16 37+063
OejWb ded,Ykhh[dj Wii[ji 2+370+232 2+205+228
OejWb Wii[ji #2+787+261 #2+488+225
N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
75
Exhibit No. 2
Page 86 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
>JINJGD?<O@? =<G<I>@ NC@@ON
<i e\ ?[Y[cX[h 20+
6O UIPVTBOET 1/10 1/1/
G_WX_b_j_[i WdZ [gk_jo9
>khh[dj b_WX_b_j_[i9
N^ehj,j[hc Z[Xj #134+4// #120+414
>khh[dj cWjkh_j_[i e\ bed],j[hc Z[Xj t 48+844
<YYekdji fWoWXb[020+364 84+06/
KWoWXb[i je W\\_b_Wj[i 0+137 02+71/
OWn[i WYYhk[Z 04+365 02+613
Ddj[h[ij WYYhk[Z 6+185 6+227
M[]kbWjeho b_WX_b_j_[i 001+170 4/+251
?[h_lWj_l[ _dijhkc[dji 0/+3/1 3+087
Jf[hWj_d] b[Wi[ b_WX_b_j_[i 0+162 0+/43
Jj^[h Ykhh[dj b_WX_b_j_[i 42+480 40+8/6
OejWb Ykhh[dj b_WX_b_j_[i 467+431 418+/42
Ged],j[hc Z[Xj 875+384 746+154
?[\[hh[Z Yh[Z_ji WdZ ej^[h ded,Ykhh[dj b_WX_b_j_[i9
?[\[hh[Z jWn b_WX_b_j_[i 226+606 207+/23
M[]kbWjeho b_WX_b_j_[i 546+24/527+682
K[di_ed WdZ ej^[h feijh[j_h[c[dj X[d[\_j b_WX_b_j_[i 055+573 106+176
?[h_lWj_l[ _dijhkc[dji 301 1+741
Jf[hWj_d] b[Wi[ b_WX_b_j_[i 68+320 7/+448
Jj^[h ded,Ykhh[dj b_WX_b_j_[i 002+823 01/+2/8
OejWb Z[\[hh[Z Yh[Z_ji WdZ ej^[h ded,Ykhh[dj b_WX_b_j_[i 0+244+417 0+266+723
>ecc_jc[dji WdZ Yedj_d][dY_[i 'i[[ Iej[ 05 WdZ Iej[ 06(
@gk_jo9
>ecced ijeYa 324+404 208+4/5
M[jW_d[Z [Whd_d]i 442+585 417+47/
<YYkckbWj[Z ej^[h Yecfh[^[di_l[ beii '00+3/3('01+8/1(
OejWb [gk_jo 866+7/6 724+073
OejWb b_WX_b_j_[i WdZ [gk_jo #2+787+261 #2+488+225
N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
76
Exhibit No. 2
Page 87 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
>JINJGD?<O@? NO<O@H@ION JA NC<M@CJG?@M&N @LPDOT
>ecced NjeYa M[jW_d[Z @Whd_d]i
<YYkckbWj[Z Jj^[h
>ecfh[^[di_l[DdYec[ 'Geii(OejWb@gk_jo6O UIPVTBOET
=WbWdY[ Wj ?[Y[cX[h 20+ 1/07 #115+341 #385+3/3 #'6+077( #604+557
>ecfh[^[di_l[ _dYec[ 'beii(t 57+863 '1+068(55+684
?_l_Z[dZi ed Yecced ijeYa t '42+261(t '42+261(
>Wf_jWb Yedjh_Xkj_ed \hec fWh[dj 82+0/4 t t 82+0/4
M[YbWii_\_YWj_ed e\ jWn [\\[Yji \hec j^[ O>E<t 0+255 '0+255(t
=WbWdY[ Wj ?[Y[cX[h 20+ 1/08 208+446 402+261 '0/+622(711+085
>ecfh[^[di_l[ _dYec[ 'beii(t 6/+452 '1+058(57+283
?_l_Z[dZi ed Yecced ijeYa t '44+244(t '44+244(
Jj^[h '40(t t '40(
=WbWdY[ Wj ?[Y[cX[h 20+ 1/1/208+4/5 417+47/'01+8/1(724+073
>ecfh[^[di_l[ _dYec[ 'beii(t 70+061 0+387 71+56/
?_l_Z[dZi ed Yecced ijeYa t '45+/45(t '45+/45(
>Wf_jWb Yedjh_Xkj_edi \hec fWh[dj 005+//8 t t 005+//8
=WbWdY[ Wj ?[Y[cX[h 20+ 1/10 #324+404 #442+585 #'00+3/3( #866+7/6
N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
77
Exhibit No. 2
Page 88 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
>JINJGD?<O@? NO<O@H@ION JA ><NC AGJRN
T[Wh @dZ[Z ?[Y[cX[h 20+
6O UIPVTBOET 1/10 1/1/1/08
Jf[hWj_d] WYj_l_j_[i9
I[j _dYec[# 70+061 # 6/+452 #57+863
<Z`kijc[dji je h[YedY_b[ d[j _dYec[ je YWi^ fhel_Z[Z Xo ef[hWj_edi9
?[fh[Y_Wj_ed WdZ Wcehj_pWj_ed 00/+4/3 0/0+475 8/+3/4
M[]kbWjeho Wcehj_pWj_ed e\ ]Wi h[i[hl[i 02+786 06+668 08+061
?[\[hh[Z _dYec[ jWn[i 02+112 3+534 3+/35
LkWb_\_[Z Z[\_d[Z X[d[\_j f[di_ed fbWd [nf[di[05+445 07+26/05+386
>edjh_Xkj_edi je gkWb_\_[Z Z[\_d[Z X[d[\_j f[di_ed fbWdi '8+48/('17+87/('0/+86/(
?[\[hh[Z [dl_hedc[djWb [nf[dZ_jkh[i+ d[j '07+076('16+760('05+115(
@dl_hedc[djWb h[c[Z_Wj_ed [nf[di[8+827 8+580 01+226
M[]kbWjeho Z_iWbbemWdY[ e\ f[di_ed Yeiji t t 0/+4//
Jj^[h 8+353 '6+/14(02+06/
>^Wd][i _d Wii[ji WdZ b_WX_b_j_[i9
M[Y[_lWXb[i+ d[j '32+/2/('05+43/(8+153
Ddl[djeh_[i '03+316(0+428 '4+88/(
DdYec[ WdZ ej^[h jWn[i '0/+3/4(0/+721 385
<YYekdji fWoWXb[7+617 '07+8/8('07+437(
?[\[hh[Z ]Wi Yeiji '3/+430(06+48/'12+360(
<ii[j efj_c_pWj_ed h[l[dk[ i^Wh_d]33+347 '6+133(544
?[Yekfb_d] c[Y^Wd_ic '4+1/5(1+773 07+550
Jj^[h+ d[j '14+/5/('282('1+/70(
>Wi^ fhel_Z[Z Xo ef[hWj_d] WYj_l_j_[i 030+383 037+406 075+780
Ddl[ij_d] WYj_l_j_[i9
>Wf_jWb [nf[dZ_jkh[i '167+126('155+/37('110+27/(
G[Wi[^ebZ _cfhel[c[dj [nf[dZ_jkh[i '0+253('6+767('07+701(
KheY[[Zi \hec j^[ iWb[ e\ Wii[ji 2+815 7+038 548
Jj^[h '43(0+543 '2+433(
>Wi^ ki[Z _d _dl[ij_d] WYj_l_j_[i '164+618('153+012('132+/66(
A_dWdY_d] WYj_l_j_[i9
Ged],j[hc Z[Xj _iik[Z 02/+///04/+///03/+///
Ged],j[hc Z[Xj h[j_h[Z '5/+///('64+///('2/+///(
KheY[[Zi \hec j[hc beWd Zk[ m_j^_d ed[ o[Wh 0//+///04/+///t
M[fWoc[dj e\ j[hc beWd '0//+///('04/+///(t
KheY[[Zi \hec Yecc[hY_Wb fWf[h+ cWjkh_j_[i ]h[Wj[h j^Wd j^h[[ cedj^i t 084+/14 t
M[fWoc[dj e\ Yecc[hY_Wb fWf[h+ cWjkh_j_[i ]h[Wj[h j^Wd j^h[[ cedj^i '084+/14(t t
>^Wd][i _d ej^[h i^ehj,j[hc Z[Xj+ d[j 1/8+///'77+5//('81+3//(
>Wi^ Yedjh_Xkj_edi h[Y[_l[Z \hec fWh[dj 005+//8 t 82+044
>Wi^ Z_l_Z[dZ fWoc[dji ed Yecced ijeYa '45+/45('44+244('42+261(
Jj^[h '3+5//('2+521('1+40/(
>Wi^ fhel_Z[Z Xo \_dWdY_d] WYj_l_j_[i 028+217 011+327 43+762
DdYh[Wi[ 'Z[Yh[Wi[( _d YWi^+ YWi^ [gk_lWb[dji WdZ h[ijh_Yj[Z YWi^4+/82 5+721 '0+202(
>Wi^+ YWi^ [gk_lWb[dji WdZ h[ijh_Yj[Z YWi^+ X[]_dd_d] e\ f[h_eZ 04+628 7+8/6 0/+11/
>Wi^+ YWi^ [gk_lWb[dji WdZ h[ijh_Yj[Z YWi^+ [dZ e\ f[h_eZ # 1/+721 # 04+628 #7+8/6
Nkffb[c[djWb Z_iYbeikh[ e\ YWi^ \bem _d\ehcWj_ed9
Ddj[h[ij fW_Z+ d[j e\ YWf_jWb_pWj_ed # 31+284 # 3/+513 #28+816
DdYec[ jWn[i fW_Z 15+340 5+0//1+368
N[[ Iej[i je >edieb_ZWj[Z A_dWdY_Wb NjWj[c[dji
78
Exhibit No. 2
Page 89 of 206
J. Palfreyman, DI
Gem State Water Company
IJO@N OJ >JINJGD?<O@? ADI<I>D<G NO<O@H@ION
(& >A71=9I1C9>= 1=4 ?A9=39?;5B >6 3>=B>;941C9>=
O^[ WYYecfWdo_d] Yedieb_ZWj[Z \_dWdY_Wb ijWj[c[dji h[fh[i[dj j^[ h[if[Yj_l[+ Yedieb_ZWj[Z \_dWdY_Wb h[ikbji e\ IR CebZ_d]i WdZ IR IWjkhWb WdZ Wbb h[if[Yj_l[
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8/
Exhibit No. 2
Page 90 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 91 of 206
J. Palfreyman, DI
Gem State Water Company
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81
Exhibit No. 2
Page 92 of 206
J. Palfreyman, DI
Gem State Water Company
7SS_e^dY^W F_\YSYUc
O^[ WYYekdj_d] feb_Y_[i Z_iYkii[Z X[bem Wffbo je Xej^ IR CebZ_d]i WdZ IR IWjkhWb-
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82
Exhibit No. 2
Page 93 of 206
J. Palfreyman, DI
Gem State Water Company
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83
Exhibit No. 2
Page 94 of 206
J. Palfreyman, DI
Gem State Water Company
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84
Exhibit No. 2
Page 95 of 206
J. Palfreyman, DI
Gem State Water Company
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85
Exhibit No. 2
Page 96 of 206
J. Palfreyman, DI
Gem State Water Company
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86
Exhibit No. 2
Page 97 of 206
J. Palfreyman, DI
Gem State Water Company
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87
Exhibit No. 2
Page 98 of 206
J. Palfreyman, DI
Gem State Water Company
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88
Exhibit No. 2
Page 99 of 206
J. Palfreyman, DI
Gem State Water Company
O^[ \ebbem_d] jWXb[ fh[i[dji WZZ_j_edWb i[]c[dj _d\ehcWj_ed YedY[hd_d] IB? cWh]_d9
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0//
Exhibit No. 2
Page 100 of 206
J. Palfreyman, DI
Gem State Water Company
-& A5E5=D5
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0/0
Exhibit No. 2
Page 101 of 206
J. Palfreyman, DI
Gem State Water Company
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0/1
Exhibit No. 2
Page 102 of 206
J. Palfreyman, DI
Gem State Water Company
.& ;51B5B
BUQcU HUfU^eU
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0/2
Exhibit No. 2
Page 103 of 206
J. Palfreyman, DI
Gem State Water Company
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0/3
Exhibit No. 2
Page 104 of 206
J. Palfreyman, DI
Gem State Water Company
T[Wh [dZ[Z ?[Y[cX[h 20+ 1/1/
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0/4
Exhibit No. 2
Page 105 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 106 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 107 of 206
J. Palfreyman, DI
Gem State Water Company
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0/7
Exhibit No. 2
Page 108 of 206
J. Palfreyman, DI
Gem State Water Company
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0/8
Exhibit No. 2
Page 109 of 206
J. Palfreyman, DI
Gem State Water Company
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00/
Exhibit No. 2
Page 110 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 111 of 206
J. Palfreyman, DI
Gem State Water Company
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001
Exhibit No. 2
Page 112 of 206
J. Palfreyman, DI
Gem State Water Company
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002
Exhibit No. 2
Page 113 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 114 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 115 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 116 of 206
J. Palfreyman, DI
Gem State Water Company
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006
Exhibit No. 2
Page 117 of 206
J. Palfreyman, DI
Gem State Water Company
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007
Exhibit No. 2
Page 118 of 206
J. Palfreyman, DI
Gem State Water Company
IR IWjkhWb
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008
Exhibit No. 2
Page 119 of 206
J. Palfreyman, DI
Gem State Water Company
-+-+ 8ecY^Ucc 9_]RY^QdY_^c
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01/
Exhibit No. 2
Page 120 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 121 of 206
J. Palfreyman, DI
Gem State Water Company
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011
Exhibit No. 2
Page 122 of 206
J. Palfreyman, DI
Gem State Water Company
O^[ W]]h[]Wj[ Wcekdji e\ j^[i[ W]h[[c[dji Wj IR IWjkhWb m[h[ Wi \ebbemi Wj ?[Y[cX[h 20+ 1/109
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012
Exhibit No. 2
Page 123 of 206
J. Palfreyman, DI
Gem State Water Company
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013
Exhibit No. 2
Page 124 of 206
J. Palfreyman, DI
Gem State Water Company
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014
Exhibit No. 2
Page 125 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 126 of 206
J. Palfreyman, DI
Gem State Water Company
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o[Wh [dZ[Z ?[Y[cX[h 20+ 1/1/-
016
Exhibit No. 2
Page 127 of 206
J. Palfreyman, DI
Gem State Water Company
O^[ \ebbem_d] jWXb[ fh[i[dji j^[ ef[hWj_d] h[ikbji e\ B_bb MWdY^ WdZ _i fh[i[dj[Z d[j e\ jWn ed IR CebZ_d]i& Yedieb_ZWj[Z ijWj[c[dji e\ Yecfh[^[di_l[ _dYec[9
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6O UIPVTBOET 1/1/1/08
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017
Exhibit No. 2
Page 128 of 206
J. Palfreyman, DI
Gem State Water Company
N>C@?PG@ D , >JI?@IN@? ADI<I>D<G DIAJMH<ODJI JA IJMOCR@NO I<OPM<G CJG?DIB >JHK<IT
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>JI?@IN@? NO<O@H@ION JA >JHKM@C@INDQ@ DI>JH@
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OejWb ef[hWj_d] [nf[di[i 3+726 660 1+636
Geii \hec ef[hWj_edi '3+726('660('1+636(
@Whd_d]i \hec _dl[ijc[dj _d ikXi_Z_Wh_[i+ d[j e\ jWn 72+/61 67+34/53+217
Jj^[h _dYec[ '[nf[di[(+ d[j '032(46 '11(
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N[[ Iej[i je >edZ[di[Z A_dWdY_Wb NjWj[c[dji
018
Exhibit No. 2
Page 129 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>JI?@IN@? =<G<I>@ NC@@ON
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Jj^[h ded,Ykhh[dj Wii[ji 502 102
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N[[ Iej[i je >edZ[di[Z A_dWdY_Wb NjWj[c[dji
02/
Exhibit No. 2
Page 130 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>JI?@IN@? NO<O@H@ION JA ><NC AGJRN
'K<M@IO >JHK<IT JIGT(
T[Wh @dZ[Z ?[Y[cX[h 20+
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Jf[hWj_d] WYj_l_j_[i9
I[j _dYec[#67+555 #65+670 #50+624
<Z`kijc[dji je h[YedY_b[ d[j _dYec[ je YWi^ ki[Z _d ef[hWj_edi9
@gk_jo _d [Whd_d]i e\ ikXi_Z_Wh_[i+ d[j e\ jWn '72+/61('67+34/('53+217(
>Wi^ Z_l_Z[dZi h[Y[_l[Z \hec ikXi_Z_Wh_[i 45+/46 44+276 42+328
?[\[hh[Z _dYec[ jWn[i '101(1/'087(
Jj^[h 008 54 55
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DdYec[ WdZ ej^[h jWn[i 0+188 '6+340(3+214
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M[jkhd e\ YWf_jWb \hec ikXi_Z_Wh_[i 15+///08+///24+///
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N[[ Iej[i je >edZ[di[Z A_dWdY_Wb NjWj[c[dji
020
Exhibit No. 2
Page 131 of 206
J. Palfreyman, DI
Gem State Water Company
IJO@N OJ >JI?@IN@? ADI<I>D<G NO<O@H@ION
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021
Exhibit No. 2
Page 132 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
N>C@?PG@ DD , Q<GP<ODJI <I? LP<GDATDIB <>>JPION <I? M@N@MQ@N
>JGPHI <>JGPHI =>JGPHI >>JGPHI ?>JGPHI @
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<bbemWdY[ \eh kdYebb[Yj_Xb[ WYYekdji #562 #78/ #1+222 #566 #2+108
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DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
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022
Exhibit No. 2
Page 133 of 206
J. Palfreyman, DI
Gem State Water Company
DO@H 8- >C<IB@N DI <I? ?DN<BM@@H@ION RDOC <>>JPIO<ION JI <>>JPIODIB <I? ADI<I>D<G ?DN>GJNPM@
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023
Exhibit No. 2
Page 134 of 206
J. Palfreyman, DI
Gem State Water Company
K<MO DDD
DO@H 0/- ?DM@>OJMN+ @S@>PODQ@ JAAD>@MN <I? >JMKJM<O@ BJQ@MI<I>@
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1/06(: N[d_eh <iieY_Wj[+ Ke_dj = '1/03,1/04(: ?_h[Yjeh+ @n[Ykj_l[ ?[l[befc[dj >[dj[h+
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024
Exhibit No. 2
Page 135 of 206
J. Palfreyman, DI
Gem State Water Company
:?H;9JEH #DEHJ>M;IJ D7JKH7B =7I 9ECF7DO EDBO$%%
IWc[<][ Wj?[Y- 20+ 1/10 Kei_j_edi ^[bZ Zkh_d] bWij \_l[ o[Whi
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Exhibit No. 2
Page 136 of 206
J. Palfreyman, DI
Gem State Water Company
DO@H 00- @S@>PODQ@ >JHK@IN<ODJI
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026
Exhibit No. 2
Page 137 of 206
J. Palfreyman, DI
Gem State Water Company
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027
Exhibit No. 2
Page 138 of 206
J. Palfreyman, DI
Gem State Water Company
DO@H 05- AJMH 0/,F NPHH<MT
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028
Exhibit No. 2
Page 139 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
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03/
Exhibit No. 2
Page 140 of 206
J. Palfreyman, DI
Gem State Water Company
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h[\[h[dY[ je @n^_X_j 0/ je Aehc 0/,L \eh j^[ gkWhj[h [dZ[Z Ekd[ 2/+ 1/07+ A_b[ Ie- 0,04862(-
)0/-0 A_\j^ <c[dZc[dj je KkhY^Wi[ WdZ NWb[ <]h[[c[dj+ ZWj[Z <fh_b 18+ 1/1/+ X[jm[[d IR IWjkhWb BWi NjehW][+ GG> WdZ N@IN< CebZ_d]i GG>+
Wc[dZ_d] j^[ KkhY^Wi[ WdZ NWb[ <]h[[c[dj+ ZWj[Z Ekd[ 1/+ 1/07+ Wi Wc[dZ[Z '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/-1 je j^[ Aehc 0/,L \eh
j^[ gkWhj[h [dZ[Z HWhY^ 20+ 1/1/+ A_b[ Ie- 0,27570(-
)0/-1 O[dj^ <c[dZc[dj je KkhY^Wi[ WdZ NWb[ <]h[[c[dj+ ZWj[Z ?[Y[cX[h 3+ 1/1/+ X[jm[[d IR IWjkhWb BWi NjehW][ GG> WdZ N@IN< CebZ_d]i
GG>+ Wc[dZ_d] j^[ KkhY^Wi[ WdZ NWb[ <]h[[c[dj+ ZWj[Z Ekd[ 1/+ 1/07+ Wi Wc[dZ[Z '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/-0 je j^[ Aehc 7,F
\_b[Z ?[Y[cX[h 6+ 1/1/+ A_b[ Ie- 0,27570(-
10 NkXi_Z_Wh_[i e\ Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo-
12W->edi[dj e\ Kh_Y[mWj[h^eki[>eef[hi GGK , IR CebZ_d]i-
12X->edi[dj e\ Kh_Y[mWj[h^eki[>eef[hi GGK , IR IWjkhWb-
20-0 >[hj_\_YWj_ed e\ Kh_dY_fWb @n[Ykj_l[ J\\_Y[h e\ Iehj^m[ij IWjkhWb BWi >ecfWdo KkhikWdj je Mkb[ 02W,03'W(.04Z,03'W(+ N[Yj_ed 2/1 e\ j^[
NWhXWd[i,Jnb[o <Yj e\ 1//1-
20-1 >[hj_\_YWj_ed e\ Kh_dY_fWb A_dWdY_Wb J\\_Y[h e\ Iehj^m[ij IWjkhWb BWi >ecfWdo KkhikWdj je Mkb[ 02W,03'W(.04Z,03'W(+ N[Yj_ed 2/1 e\ j^[
NWhXWd[i,Jnb[o <Yj e\ 1//1-
20-2 >[hj_\_YWj_ed e\ Kh_dY_fWb @n[Ykj_l[ J\\_Y[h e\ Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo KkhikWdj je Mkb[ 02W,03'W(.04Z,03'W(+ N[Yj_ed 2/1 e\ j^[
NWhXWd[i,Jnb[o <Yj e\ 1//1-
20-3 >[hj_\_YWj_ed e\ Kh_dY_fWb A_dWdY_Wb J\\_Y[h e\ Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo KkhikWdj je Mkb[ 02W,03'W(.04Z,03'W(+ N[Yj_ed 2/1 e\ j^[
NWhXWd[i,Jnb[o <Yj e\ 1//1-
))21-0 >[hj_\_YWj_ed e\ Kh_dY_fWb @n[Ykj_l[ J\\_Y[h WdZ Kh_dY_fWb A_dWdY_Wb J\\_Y[h e\ Iehj^m[ij IWjkhWb BWi >ecfWdo KkhikWdj je N[Yj_ed 8/5 e\ j^[
NWhXWd[i,Jnb[o <Yj e\ 1//1-
))21-1 >[hj_\_YWj_ed e\ Kh_dY_fWb @n[Ykj_l[ J\\_Y[h WdZ Kh_dY_fWb A_dWdY_Wb J\\_Y[h e\ Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo KkhikWdj je N[Yj_ed 8/5 e\ j^[
NWhXWd[i,Jnb[o <Yj e\ 1//1-
0/0-O^[ \ebbem_d] cWj[h_Wbi \ehcWjj[Z _d Ddb_d[ @nj[di_Xb[ =ki_d[ii M[fehj_d] GWd]kW][ 'Ddb_d[ S=MG(9
'_( >edieb_ZWj[Z NjWj[c[dji e\ DdYec[:
'__( >edieb_ZWj[Z =WbWdY[ N^[[ji:
'___( >edieb_ZWj[Z NjWj[c[dji e\ >Wi^ Abemi: WdZ
'_l( M[bWj[Z dej[i-
0/3-O^[ Yel[h fW][ \hec j^[ >ecfWdo&i <ddkWb M[fehj ed Aehc 0/,F \eh j^[ o[Wh [dZ[Z ?[Y[cX[h 20+ 1/10+ \ehcWjj[Z _d Ddb_d[ S=MG WdZ
YedjW_d[Z _d @n^_X_j 0/0-
@n[Ykj_l[ >ecf[diWj_ed KbWdi WdZ <hhWd][c[dji9
)0/W-@n[Ykj_l[ Nkffb[c[djWb M[j_h[c[dj DdYec[ KbWd+ 1/07 M[ijWj[c[dj '_dYehfehWj[Z ^[h[_d Xo h[\[h[dY[ je @n^_X_j 0/-5 je j^[ Aehc 7,F ZWj[ZJYjeX[h 0+ 1/07+ A_b[ Ie- 0,27570(-
030
Exhibit No. 2
Page 141 of 206
J. Palfreyman, DI
Gem State Water Company
)0/X-Nkffb[c[djWb @n[Ykj_l[ M[j_h[c[dj KbWd e\ Iehj^m[ij IWjkhWb BWi >ecfWdo+ 1/07 M[ijWj[c[dj+ Wi Wc[dZ[Z Ekbo 14+ 1/08 '_dYehfehWj[Z Xo
h[\[h[dY[ je @n^_X_j 0/-0 je j^[ Aehc 0/,L \eh j^[ gkWhj[h [dZ[Z Ekd[ 2/+ 1/08+ A_b[ Ie- 0,04862(-
)0/Y-Iehj^m[ij IWjkhWb BWi >ecfWdo Nkffb[c[djWb Ohkij+ [\\[Yj_l[ EWdkWho 0+ 1//4+ h[ijWj[Z Wi e\ JYjeX[h 0+ 1/07 '_dYehfehWj[Z Xo h[\[h[dY[ je
@n^_X_j 0/-8 je j^[ Aehc 7,F ZWj[Z JYjeX[h 0+ 1/07+ A_b[ Ie- 0,27570(-
)0/Z-Iehj^m[ij IWjkhWb BWi >ecfWdo PcXh[bbW Ohkij \eh ?_h[Yjehi+ [\\[Yj_l[ EWdkWho 0+ 0880+ h[ijWj[Z Wi e\ JYjeX[h 0+ 1/07 '_dYehfehWj[Z Xoh[\[h[dY[ je @n^_X_j 0/-00 je j^[ Aehc 7,F ZWj[Z JYjeX[h 0+ 1/07+ A_b[ Ie- 0,27570(-
)0/[-Iehj^m[ij IWjkhWb BWi >ecfWdo PcXh[bbW Ohkij \eh @n[Ykj_l[i+ [\\[Yj_l[ EWdkWho 0+ 0877+ h[ijWj[Z Wi e\ JYjeX[h 0+ 1/07 '_dYehfehWj[Z Xo
h[\[h[dY[ je @n^_X_j 0/-0/ je j^[ Aehc 7,F ZWj[Z JYjeX[h 0+ 1/07+ A_b[ Ie- 0,27570(-
)0/\-M[ijWj[Z NjeYa Jfj_ed KbWd+ Wi Wc[dZ[Z [\\[Yj_l[ ?[Y[cX[h 03+ 1//5 '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/Y je Aehc 0/,F \eh 1//5+ A_b[ Ie-
0,04862(-
)0/]-Aehc e\ M[ijWj[Z NjeYa Jfj_ed KbWd <]h[[c[dj '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/^ je Aehc 0/,F \eh 1//8+ A_b[ Ie- 0,04862(-
)0/^-@n[Ykj_l[ ?[\[hh[Z >ecf[diWj_ed KbWd+ [\\[Yj_l[ Wi e\ EWdkWho 0+ 0876+ h[ijWj[Z Wi e\ JYjeX[h 0+ 1/07 '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j
0/-3 je j^[ Aehc 7,F ZWj[Z JYjeX[h 0+ 1/07+ A_b[ Ie- 0,27570(-
)0/_-?_h[Yjehi ?[\[hh[Z >ecf[diWj_ed KbWd+ [\\[Yj_l[ Ekd[ 0+ 0870+ h[ijWj[Z Wi e\ JYjeX[h 0+ 1/07 '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/-4 je j^[
Aehc 7,F ZWj[Z JYjeX[h 0+ 1/07+ A_b[ Ie- 0,27570(-
)0/`-?[\[hh[Z >ecf[diWj_ed KbWd \eh ?_h[Yjehi WdZ @n[Ykj_l[i+ [\\[Yj_l[ EWdkWho 0+ 1//4+ h[ijWj[Z Wi e\ N[fj[cX[h 12+ 1/10 '_dYehfehWj[Z Xoh[\[h[dY[ je @n^_X_j 0/-0 je j^[ Aehc 0/,L \eh j^[ gkWhj[h [dZ[Z N[fj[cX[h 2/+ 1/10+ A_b[ Ie- 0,27570(-
)0/a-Aehc e\ DdZ[cd_jo <]h[[c[dj Wi [dj[h[Z _dje X[jm[[d Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ [WY^ Z_h[Yjeh WdZ Y[hjW_d [n[Ykj_l[ e\\_Y[hi
'_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/b je Aehc 0/,F \eh 1/07+ A_b[ Ie- 0,04862(-
)0/b-Aehc e\ DdZ[cd_jo <]h[[c[dj Wi [dj[h[Z _dje X[jm[[d Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo WdZ [WY^ Z_h[Yjeh WdZ Y[hjW_d [n[Ykj_l[ e\\_Y[hi
'_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/c je Aehc 0/,F \eh 1/07+ A_b[ Ie- 0,27570(-
)0/c-Ied,@cfbeo[[ ?_h[Yjehi NjeYa >ecf[diWj_ed KbWd+ Wi Wc[dZ[Z [\\[Yj_l[ ?[Y[cX[h 04+ 1//4 '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/-1 je Aehc
7,F ZWj[Z ?[Y[cX[h 05+ 1//4+ A_b[ Ie- 0,04862(-
)0/d-@n[Ykj_l[ <ddkWb DdY[dj_l[ KbWd+ [\\[Yj_l[ EWdkWho 0+ 1/10 '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/e je Aehc 0/,F \eh 1/1/+ A_b[ Ie- 0,04862(-
0/e-@n[Ykj_l[ <ddkWb DdY[dj_l[ KbWd+ [\\[Yj_l[ EWdkWho 0+ 1/11-
)0/f-Aehc e\ >^Wd][ _d >edjheb N[l[hWdY[ <]h[[c[dj X[jm[[d Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ [WY^ [n[Ykj_l[ e\\_Y[h+ Wi Wc[dZ[Z WdZh[ijWj[Z Wi e\ HWhY^ 0+ 1/1/ '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/g je Aehc 0/,F \eh 1/08+ A_b[ Ie- 0,04862(-
)0/g-Iehj^m[ij IWjkhWb BWi >ecfWdo Ged] O[hc DdY[dj_l[ KbWd+ Wi Wc[dZ[Z WdZ h[ijWj[Z [\\[Yj_l[ HWo 13+ 1/01 '_dYehfehWj[Z Xo h[\[h[dY[ je@n^_X_j 0/h je Aehc 0/,F \eh 1/01+ A_b[ Ie- 0,04862(-
)0/h-Iehj^m[ij IWjkhWb BWi >ecfWdo Ged] O[hc DdY[dj_l[ KbWd+ Wi Wc[dZ[Z WdZ h[ijWj[Z [\\[Yj_l[ HWo 14+ 1/06 '_dYehfehWj[Z Xo h[\[h[dY[ je@n^_X_j 0/i je Aehc 0/,F \eh 1/06+ A_b[ Ie- 0,04862(-
)0/i-Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo Ged] O[hc DdY[dj_l[ KbWd+ Wi Wc[dZ[Z WdZ h[ijWj[Z Wi e\ JYjeX[h 0+ 1/07 '_dYehfehWj[Z Xo h[\[h[dY[ je
@n^_X_j 0/-0 je j^[ Aehc 7,F ZWj[Z JYjeX[h 0+ 1/07+ A_b[ Ie- 0,27570(-
031
Exhibit No. 2
Page 142 of 206
J. Palfreyman, DI
Gem State Water Company
)0/j-Aehc e\ K[h\ehcWdY[ N^Wh[ Ged] O[hc DdY[dj_l[ <mWhZ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/08,1/10( '_dYehfehWj[Z Xo h[\[h[dY[ je
@n^_X_j 0/p je Aehc 0/,F \eh 1/07+ A_b[ Ie- 0,27570(-
)0/k-Aehc e\ K[h\ehcWdY[ N^Wh[ Ged] O[hc DdY[dj_l[ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/1/,1/11( '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j
0/n je Aehc 0/,F \eh 1/08+ A_b[ Ie- 0,27570(-
)0/l-Aehc e\ K[h\ehcWdY[ N^Wh[ Ged] O[hc DdY[dj_l[ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/10,1/12('_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j
0/m je Aehc 0/,F \eh 1/1/+ A_b[ Ie- 0,27570(-
0/m-Aehc e\ K[h\ehcWdY[ N^Wh[ Ged] O[hc DdY[dj_l[ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/11,1/13(-
)0/n-Aehc e\ >edi[dj ZWj[Z ?[Y[cX[h 03+ 1//5 [dj[h[Z _dje Xo [WY^ [n[Ykj_l[ e\\_Y[h m_j^ h[if[Yj je Wc[dZc[dji je j^[ @n[Ykj_l[ Nkffb[c[djWb
M[j_h[c[dj DdYec[ KbWd+ j^[ Nkffb[c[djWb @n[Ykj_l[ M[j_h[c[dj KbWd WdZ Y[hjW_d Y^Wd][ _d Yedjheb i[l[hWdY[ W]h[[c[dji '_dYehfehWj[Z Xo
h[\[h[dY[ je @n^_X_j 0/-0 je Aehc 7,F ZWj[Z ?[Y[cX[h 08+ 1//5+ A_b[ Ie- 0,04862(-
)0/o->edi[dj je <c[dZc[dj e\ ?[\[hh[Z >ecf[diWj_ed KbWd \eh ?_h[Yjehi WdZ @n[Ykj_l[i+ ZWj[Z A[XhkWho 17+ 1//7 [dj[h[Z _dje Xo [WY^ [n[Ykj_l[
e\\_Y[h '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/XX je Aehc 0/,F \eh 1//6+ A_b[ Ie- 0,04862(-
0/p-Aehc e\ M[ijh_Yj[Z NjeYa Pd_j <mWhZ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/11(-
)0/WW-Aehc e\ M[ijh_Yj[Z NjeYa Pd_j <mWhZ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/10( '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/p je Aehc 0/,F
\eh 1/1/+ A_b[ Ie- 0,27570(-
)0/XX-Aehc e\ M[ijh_Yj[Z NjeYa Pd_j <mWhZ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/1/( '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/WW je Aehc 0/,F
\eh 1/08+ A_b[ Ie- 0,27570(-
)0/YY-Aehc e\ M[ijh_Yj[Z NjeYa Pd_j <mWhZ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/08( '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/YY je Aehc 0/,F
\eh 1/07+ A_b[ Ie- 0,27570(-
)0/ZZ-Aehc e\ M[ijh_Yj[Z NjeYa Pd_j <mWhZ <]h[[c[dj kdZ[h Ged] O[hc DdY[dj_l[ KbWd '1/07( '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/XX je Aehc 0/,F\eh 1/06+ A_b[ Ie- 0,04862(-
)0/[[-N[l[hWdY[ <]h[[c[dj X[jm[[d Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ Wd [n[Ykj_l[ e\\_Y[h+ ZWj[Z <k]kij 0+ 1/05 '_dYehfehWj[Z Xo h[\[h[dY[ je@n^_X_j 0/-0 je Aehc 7,F ZWj[Z Ekbo 18+ 1/05+ A_b[ Ie- 0,04862(-
)0/\\-Aehc e\ M[ijh_Yj[Z NjeYa Pd_j <mWhZ <]h[[c[dj X[jm[[d Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ Wd [n[Ykj_l[ e\\_Y[h ZWj[Z Wi e\ Ekbo 16+ 1/05'_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/-0 je Aehc 0/,L \eh j^[ gkWhj[h [dZ[Z Ekd[ 2/+ 1/05+ A_b[ Ie- 0,04862(-
)0/]]-Aehc e\ N[l[hWdY[ <]h[[c[dj X[jm[[d Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ Wd [n[Ykj_l[ e\\_Y[h+ ZWj[Z HWo 06+ 1/06 '_dYehfehWj[Z Xoh[\[h[dY[ je @n^_X_j 0/-0 je Aehc 7,F ZWj[Z <fh_b 13+ 1/06+ A_b[ Ie- 0,04862(-
)0/^^-Aehc e\ Nf[Y_Wb M[ijh_Yj[Z NjeYa Pd_j <]h[[c[dj X[jm[[d Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ Wd [n[Ykj_l[ e\\_Y[h+ ZWj[Z HWo 06+ 1/06'_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/-1 je Aehc 7,F ZWj[Z <fh_b 13+ 1/06+ A_b[ Ie- 0,04862(-
)0/__-Aehc e\ Nf[Y_Wb M[j[dj_ed M[ijh_Yj[Z NjeYa Pd_j <]h[[c[dj X[jm[[d Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ Wd [n[Ykj_l[ e\\_Y[h+ ZWj[Z
N[fj[cX[h 2/+ 1/05 '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/gg je Aehc 0/,F \eh 1/06+ A_b[ Ie- 0,04862(-
)0/``->Wi^ M[j[dj_ed <]h[[c[dj X[jm[[d Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ Wd [n[Ykj_l[ e\\_Y[h+ ZWj[Z Wi e\ HWhY^ 0+ 1/07 '_dYehfehWj[Z Xo
h[\[h[dY[ je @n^_X_j 0/ii je Aehc 0/,F \eh 1/06+ A_b[ Ie- 0,04862(-
)0/aa-<ddkWb DdY[dj_l[ KbWd \eh IR IWjkhWb BWi NjehW][+ GG>+ Wi Wc[dZ[Z [\\[Yj_l[ EWdkWho 0+ 1/10 '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/bb je
Aehc 0/,F \eh 1/1/+ A_b[ Ie- 0,27570(-
032
Exhibit No. 2
Page 143 of 206
J. Palfreyman, DI
Gem State Water Company
0/bb-<ddkWb DdY[dj_l[ KbWd \eh IR IWjkhWb BWi NjehW][+ GG>+ Wi Wc[dZ[Z [\\[Yj_l[ EWdkWho 0+ 1/11-
)0/cc-Ged] O[hc DdY[dj_l[ KbWd \eh IR IWjkhWb BWi NjehW][+ GG>+ Wi Wc[dZ[Z [\\[Yj_l[ EWdkWho 0+ 1/05 '_dYehfehWj[Z Xo h[\[h[dY[ je @n^_X_j 0/ff
je Aehc 0/,F \eh 1/05+ A_b[ Ie- 0,04862(-
)DdYehfehWj[Z Xo h[\[h[dY[ Wi _dZ_YWj[Z
))KkhikWdj je Dj[c 5/0'X('21('__( e\ M[]kbWj_ed N,F+ j^_i Y[hj_\_YWj[ _i dej X[_d] "\_b[Z" \eh fkhfei[i e\ N[Yj_ed 07 e\ j^[ N[Ykh_j_[i @nY^Wd][ <Yj e\ 0823+ Wi
Wc[dZ[Z-
033
Exhibit No. 2
Page 144 of 206
J. Palfreyman, DI
Gem State Water Company
B97=1CDA5B
KkhikWdj je j^[ h[gk_h[c[dji e\ N[Yj_ed 02 eh 04'Z( e\ j^[ N[Ykh_j_[i @nY^Wd][ <Yj e\ 0823+ [WY^ h[]_ijhWdj ^Wi Zkbo YWki[Z j^_i h[fehj je X[ i_]d[Z ed _ji
X[^Wb\ Xo j^[ kdZ[hi_]d[Z+ j^[h[kdje Zkbo Wkj^eh_p[Z- O^[ i_]dWjkh[ \eh [WY^ kdZ[hi_]d[Z YecfWdo i^Wbb X[ Z[[c[Z je h[bWj[ edbo je cWjj[hi ^Wl_d] h[\[h[dY[
je ikY^ YecfWdo WdZ _ji ikXi_Z_Wh_[i-
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
=o9 .i. ?Wl_Z C- <dZ[hied
?Wl_Z C- <dZ[hied
Kh[i_Z[dj WdZ >^_[\ @n[Ykj_l[ J\\_Y[h
?Wj[9 A[XhkWho 14+ 1/11
DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
=o9 .i. ?Wl_Z C- <dZ[hied
?Wl_Z C- <dZ[hied
Kh[i_Z[dj WdZ >^_[\ @n[Ykj_l[ J\\_Y[h
?Wj[9 A[XhkWho 14+ 1/11
034
Exhibit No. 2
Page 145 of 206
J. Palfreyman, DI
Gem State Water Company
KkhikWdj je j^[ h[gk_h[c[dji e\ j^[ N[Ykh_j_[i @nY^Wd][ <Yj e\ 0823+ j^_i h[fehj ^Wi X[[d i_]d[Z X[bem Xo j^[ \ebbem_d] f[hiedi ed X[^Wb\ e\ j^[ h[]_ijhWdj WdZ
_d j^[ YWfWY_j_[i WdZ ed j^[ ZWj[ _dZ_YWj[Z- O^[ i_]dWjkh[i e\ [WY^ e\ j^[ kdZ[hi_]d[Z i^Wbb X[ Z[[c[Z je h[bWj[ edbo je cWjj[hi ^Wl_d] h[\[h[dY[ je j^[ X[bem
dWc[Z YecfWdo WdZ _ji ikXi_Z_Wh_[i-
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
IYW^QdebU JYd\U :QdU
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Exhibit No. 2
Page 146 of 206
J. Palfreyman, DI
Gem State Water Company
DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
IYW^QdebU JYd\U :QdU
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Exhibit No. 2
Page 147 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 148 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 149 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 150 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 151 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 152 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 153 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 154 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 155 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 156 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 157 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 158 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 159 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 160 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 161 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 162 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 163 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 164 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 165 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 166 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 167 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 168 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 169 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 170 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 171 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 172 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 173 of 206
J. Palfreyman, DI
Gem State Water Company
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4/21,4/-)- ++0002+(++.30 1
Exhibit No. 2
Page 174 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 175 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 176 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 177 of 206
J. Palfreyman, DI
Gem State Water Company
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,,/-+.42.)- ++0002+(++..0
Exhibit No. 2
Page 178 of 206
J. Palfreyman, DI
Gem State Water Company
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,,/-+.42.)- ++0002+(++..0
Exhibit No. 2
Page 179 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 180 of 206
J. Palfreyman, DI
Gem State Water Company
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1
,,/-+.42.)- ++0002+(++..0
Exhibit No. 2
Page 181 of 206
J. Palfreyman, DI
Gem State Water Company
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Page 182 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 183 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 184 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 185 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 186 of 206
J. Palfreyman, DI
Gem State Water Company
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,,/-+0+0.)- ++0002+(++..0
Exhibit No. 2
Page 187 of 206
J. Palfreyman, DI
Gem State Water Company
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,,/-+0+0.)- ++0002+(++..0
Exhibit No. 2
Page 188 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 189 of 206
J. Palfreyman, DI
Gem State Water Company
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,,/-+0+0.)- ++0002+(++..0
Exhibit No. 2
Page 190 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 191 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 192 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 193 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 194 of 206
J. Palfreyman, DI
Gem State Water Company
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Exhibit No. 2
Page 195 of 206
J. Palfreyman, DI
Gem State Water Company
3E6707A /
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Exhibit No. 2
Page 196 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J -,
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Exhibit No. 2
Page 197 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J -,
>WiYWZ_W RWj[h+ GG>RWi^_d]jed
>WiYWZ_W Dd\hWijhkYjkh[+ GG>RWi^_d]jed
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Exhibit No. 2
Page 198 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J -.Q
3>=B5=C >6 9=45?5=45=C A579BC5A54 ?D2;93 133>D=C9=7 69A<
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A[XhkWho 14+ 1/11 h[bWj_d] je j^[ \_dWdY_Wb ijWj[c[dji+ \_dWdY_Wb ijWj[c[dj iY^[Zkb[i WdZ j^[ [\\[Yj_l[d[ii e\ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d]+ m^_Y^
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Exhibit No. 2
Page 199 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J -.R
3>=B5=C >6 9=45?5=45=C A579BC5A54 ?D2;93 133>D=C9=7 69A<
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Exhibit No. 2
Page 200 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J .,),
35AC96931C9>=
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Exhibit No. 2
Page 201 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J .,)-
35AC96931C9>=
D+ AhWda C- =kha^Whjic[o[h+ Y[hj_\o j^Wj9
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h[]_ijhWdjwi WkZ_jehi WdZ j^[ WkZ_j Yecc_jj[[ e\ j^[ h[]_ijhWdjwi XeWhZ e\ Z_h[Yjehi 'eh f[hiedi f[h\ehc_d] j^[ [gk_lWb[dj \kdYj_edi(9
'W( <bb i_]d_\_YWdj Z[\_Y_[dY_[i WdZ cWj[h_Wb m[Wad[ii[i _d j^[ Z[i_]d eh ef[hWj_ed e\ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] m^_Y^ Wh[ h[WiedWXbo b_a[bo je
WZl[hi[bo W\\[Yj j^[ h[]_ijhWdjwi WX_b_jo je h[YehZ+ fheY[ii+ ikccWh_p[ WdZ h[fehj \_dWdY_Wb _d\ehcWj_ed: WdZ
'X( <do \hWkZ+ m^[j^[h eh dej cWj[h_Wb+ j^Wj _dlebl[i cWdW][c[dj eh ej^[h [cfbeo[[i m^e ^Wl[ W i_]d_\_YWdj heb[ _d j^[ h[]_ijhWdjwi _dj[hdWb Yedjheb el[h \_dWdY_Wb
h[fehj_d]-
?Wj[9 A[XhkWho 14+ 1/11
.i. AhWda C- =kha^Whjic[o[h
AhWda C- =kha^Whjic[o[h
N[d_eh Q_Y[ Kh[i_Z[dj WdZ >^_[\ A_dWdY_Wb J\\_Y[h
Exhibit No. 2
Page 202 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J .,).
35AC96931C9>=
D+ ?Wl_Z C- <dZ[hied+ Y[hj_\o j^Wj9
0- D ^Wl[ h[l_[m[Z j^_i WddkWb h[fehj ed Aehc 0/,F \eh j^[ o[Wh [dZ[Z ?[Y[cX[h 20+ 1/10 e\ Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo:
1- =Wi[Z ed co ademb[Z][+ j^_i h[fehj Ze[i dej YedjW_d Wdo kdjhk[ ijWj[c[dj e\ W cWj[h_Wb \WYj eh ec_j je ijWj[ W cWj[h_Wb \WYj d[Y[iiWho je cWa[ j^[
ijWj[c[dji cWZ[+ _d b_]^j e\ j^[ Y_hYkcijWdY[i kdZ[h m^_Y^ ikY^ ijWj[c[dji m[h[ cWZ[+ dej c_ib[WZ_d] m_j^ h[if[Yj je j^[ f[h_eZ Yel[h[Z Xo j^_i h[fehj:
2- =Wi[Z ed co ademb[Z][+ j^[ \_dWdY_Wb ijWj[c[dji+ WdZ ej^[h \_dWdY_Wb _d\ehcWj_ed _dYbkZ[Z _d j^_i h[fehj+ \W_hbo fh[i[dj _d Wbb cWj[h_Wb h[if[Yji j^[
\_dWdY_Wb YedZ_j_ed+ h[ikbji e\ ef[hWj_edi WdZ YWi^ \bemi e\ j^[ h[]_ijhWdj Wi e\+ WdZ \eh+ j^[ f[h_eZi fh[i[dj[Z _d j^_i h[fehj:
3- O^[ h[]_ijhWdjwi ej^[h Y[hj_\o_d] e\\_Y[h WdZ D Wh[ h[ifedi_Xb[ \eh [ijWXb_i^_d] WdZ cW_djW_d_d] Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i 'Wi Z[\_d[Z _d
@nY^Wd][ <Yj Mkb[i 02W,04'[( WdZ 04Z,04'[(( WdZ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] 'Wi Z[\_d[Z _d @nY^Wd][ <Yj Mkb[i 02W,04'\( WdZ 04Z,04'\(( \eh j^[
h[]_ijhWdj WdZ ^Wl[9
'W( ?[i_]d[Z ikY^ Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i+ eh YWki[Z ikY^ Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i je X[ Z[i_]d[Z kdZ[h ekh ikf[hl_i_ed+ je [dikh[ j^Wj
cWj[h_Wb _d\ehcWj_ed h[bWj_d] je j^[ h[]_ijhWdj+ _dYbkZ_d] _ji Yedieb_ZWj[Z ikXi_Z_Wh_[i+ _i cWZ[ ademd je ki Xo ej^[hi m_j^_d j^ei[ [dj_j_[i+ fWhj_YkbWhbo Zkh_d] j^[
f[h_eZ _d m^_Y^ j^_i h[fehj _i X[_d] fh[fWh[Z:
'X( ?[i_]d[Z ikY^ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d]+ eh YWki[Z ikY^ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] je X[ Z[i_]d[Z kdZ[h ekh ikf[hl_i_ed+ je
fhel_Z[ h[WiedWXb[ WiikhWdY[ h[]WhZ_d] j^[ h[b_WX_b_jo e\ \_dWdY_Wb h[fehj_d] WdZ j^[ fh[fWhWj_ed e\ \_dWdY_Wb ijWj[c[dji \eh [nj[hdWb fkhfei[i _d WYYehZWdY[ m_j^
][d[hWbbo WYY[fj[Z WYYekdj_d] fh_dY_fb[i:
'Y( @lWbkWj[Z j^[ [\\[Yj_l[d[ii e\ j^[ h[]_ijhWdjwi Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i WdZ fh[i[dj[Z _d j^_i h[fehj ekh YedYbki_edi WXekj j^[ [\\[Yj_l[d[ii e\ j^[
Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i+ Wi e\ j^[ [dZ e\ j^[ f[h_eZ Yel[h[Z Xo j^_i h[fehj XWi[Z ed ikY^ [lWbkWj_ed: WdZ
'Z( ?_iYbei[Z _d j^_i h[fehj Wdo Y^Wd][ _d j^[ h[]_ijhWdjwi _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] j^Wj eYYkhh[Z Zkh_d] j^[ h[]_ijhWdjwi ceij h[Y[dj \_iYWb gkWhj[h
'j^[ h[]_ijhWdjwi \ekhj^ \_iYWb gkWhj[h _d j^[ YWi[ e\ Wd WddkWb h[fehj( j^Wj ^Wi cWj[h_Wbbo W\\[Yj[Z+ eh _i h[WiedWXbo b_a[bo je cWj[h_Wbbo W\\[Yj+ j^[ h[]_ijhWdjwi
_dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d]: WdZ
4- O^[ h[]_ijhWdjwi ej^[h Y[hj_\o_d] e\\_Y[h WdZ D ^Wl[ Z_iYbei[Z+ XWi[Z ed ekh ceij h[Y[dj [lWbkWj_ed e\ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d]+ je j^[
h[]_ijhWdjwi WkZ_jehi WdZ j^[ WkZ_j Yecc_jj[[ e\ j^[ h[]_ijhWdjwi XeWhZ e\ Z_h[Yjehi 'eh f[hiedi f[h\ehc_d] j^[ [gk_lWb[dj \kdYj_edi(9
'W( <bb i_]d_\_YWdj Z[\_Y_[dY_[i WdZ cWj[h_Wb m[Wad[ii[i _d j^[ Z[i_]d eh ef[hWj_ed e\ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] m^_Y^ Wh[ h[WiedWXbo b_a[bo je
WZl[hi[bo W\\[Yj j^[ h[]_ijhWdjwi WX_b_jo je h[YehZ+ fheY[ii+ ikccWh_p[ WdZ h[fehj \_dWdY_Wb _d\ehcWj_ed: WdZ
'X( <do \hWkZ+ m^[j^[h eh dej cWj[h_Wb+ j^Wj _dlebl[i cWdW][c[dj eh ej^[h [cfbeo[[i m^e ^Wl[ W i_]d_\_YWdj heb[ _d j^[ h[]_ijhWdjwi _dj[hdWb Yedjheb el[h \_dWdY_Wb
h[fehj_d]-
?Wj[9 A[XhkWho 14+ 1/11
.i. ?Wl_Z C- <dZ[hied
?Wl_Z C- <dZ[hied
Kh[i_Z[dj WdZ >^_[\ @n[Ykj_l[ J\\_Y[h
Exhibit No. 2
Page 203 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J .,)/
35AC96931C9>=
D+ AhWda C- =kha^Whjic[o[h+ Y[hj_\o j^Wj9
0- D ^Wl[ h[l_[m[Z j^_i WddkWb h[fehj ed Aehc 0/,F \eh j^[ o[Wh [dZ[Z ?[Y[cX[h 20+ 1/10 e\ Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo:
1- =Wi[Z ed co ademb[Z][+ j^_i h[fehj Ze[i dej YedjW_d Wdo kdjhk[ ijWj[c[dj e\ W cWj[h_Wb \WYj eh ec_j je ijWj[ W cWj[h_Wb \WYj d[Y[iiWho je cWa[ j^[
ijWj[c[dji cWZ[+ _d b_]^j e\ j^[ Y_hYkcijWdY[i kdZ[h m^_Y^ ikY^ ijWj[c[dji m[h[ cWZ[+ dej c_ib[WZ_d] m_j^ h[if[Yj je j^[ f[h_eZ Yel[h[Z Xo j^_i h[fehj:
2- =Wi[Z ed co ademb[Z][+ j^[ \_dWdY_Wb ijWj[c[dji+ WdZ ej^[h \_dWdY_Wb _d\ehcWj_ed _dYbkZ[Z _d j^_i h[fehj+ \W_hbo fh[i[dj _d Wbb cWj[h_Wb h[if[Yji j^[
\_dWdY_Wb YedZ_j_ed+ h[ikbji e\ ef[hWj_edi WdZ YWi^ \bemi e\ j^[ h[]_ijhWdj Wi e\+ WdZ \eh+ j^[ f[h_eZi fh[i[dj[Z _d j^_i h[fehj:
3- O^[ h[]_ijhWdjwi ej^[h Y[hj_\o_d] e\\_Y[h WdZ D Wh[ h[ifedi_Xb[ \eh [ijWXb_i^_d] WdZ cW_djW_d_d] Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i 'Wi Z[\_d[Z _d
@nY^Wd][ <Yj Mkb[i 02W,04'[( WdZ 04Z,04'[(( WdZ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] 'Wi Z[\_d[Z _d @nY^Wd][ <Yj Mkb[i 02W,04'\( WdZ 04Z,04'\(( \eh j^[
h[]_ijhWdj WdZ ^Wl[9
'W( ?[i_]d[Z ikY^ Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i+ eh YWki[Z ikY^ Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i je X[ Z[i_]d[Z kdZ[h ekh ikf[hl_i_ed+ je [dikh[ j^Wj
cWj[h_Wb _d\ehcWj_ed h[bWj_d] je j^[ h[]_ijhWdj+ _dYbkZ_d] _ji Yedieb_ZWj[Z ikXi_Z_Wh_[i+ _i cWZ[ ademd je ki Xo ej^[hi m_j^_d j^ei[ [dj_j_[i+ fWhj_YkbWhbo Zkh_d] j^[
f[h_eZ _d m^_Y^ j^_i h[fehj _i X[_d] fh[fWh[Z:
'X( ?[i_]d[Z ikY^ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d]+ eh YWki[Z ikY^ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] je X[ Z[i_]d[Z kdZ[h ekh ikf[hl_i_ed+ je
fhel_Z[ h[WiedWXb[ WiikhWdY[ h[]WhZ_d] j^[ h[b_WX_b_jo e\ \_dWdY_Wb h[fehj_d] WdZ j^[ fh[fWhWj_ed e\ \_dWdY_Wb ijWj[c[dji \eh [nj[hdWb fkhfei[i _d WYYehZWdY[ m_j^
][d[hWbbo WYY[fj[Z WYYekdj_d] fh_dY_fb[i:
'Y( @lWbkWj[Z j^[ [\\[Yj_l[d[ii e\ j^[ h[]_ijhWdjwi Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i WdZ fh[i[dj[Z _d j^_i h[fehj ekh YedYbki_edi WXekj j^[ [\\[Yj_l[d[ii e\ j^[
Z_iYbeikh[ Yedjhebi WdZ fheY[Zkh[i+ Wi e\ j^[ [dZ e\ j^[ f[h_eZ Yel[h[Z Xo j^_i h[fehj XWi[Z ed ikY^ [lWbkWj_ed: WdZ
'Z( ?_iYbei[Z _d j^_i h[fehj Wdo Y^Wd][ _d j^[ h[]_ijhWdjwi _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] j^Wj eYYkhh[Z Zkh_d] j^[ h[]_ijhWdjwi ceij h[Y[dj \_iYWb gkWhj[h
'j^[ h[]_ijhWdjwi \ekhj^ \_iYWb gkWhj[h _d j^[ YWi[ e\ Wd WddkWb h[fehj( j^Wj ^Wi cWj[h_Wbbo W\\[Yj[Z+ eh _i h[WiedWXbo b_a[bo je cWj[h_Wbbo W\\[Yj+ j^[ h[]_ijhWdjwi
_dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d]: WdZ
4- O^[ h[]_ijhWdjwi ej^[h Y[hj_\o_d] e\\_Y[h WdZ D ^Wl[ Z_iYbei[Z+ XWi[Z ed ekh ceij h[Y[dj [lWbkWj_ed e\ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d]+ je j^[
h[]_ijhWdjwi WkZ_jehi WdZ j^[ WkZ_j Yecc_jj[[ e\ j^[ h[]_ijhWdjwi XeWhZ e\ Z_h[Yjehi 'eh f[hiedi f[h\ehc_d] j^[ [gk_lWb[dj \kdYj_edi(9
'W( <bb i_]d_\_YWdj Z[\_Y_[dY_[i WdZ cWj[h_Wb m[Wad[ii[i _d j^[ Z[i_]d eh ef[hWj_ed e\ _dj[hdWb Yedjheb el[h \_dWdY_Wb h[fehj_d] m^_Y^ Wh[ h[WiedWXbo b_a[bo je
WZl[hi[bo W\\[Yj j^[ h[]_ijhWdjwi WX_b_jo je h[YehZ+ fheY[ii+ ikccWh_p[ WdZ h[fehj \_dWdY_Wb _d\ehcWj_ed: WdZ
'X( <do \hWkZ+ m^[j^[h eh dej cWj[h_Wb+ j^Wj _dlebl[i cWdW][c[dj eh ej^[h [cfbeo[[i m^e ^Wl[ W i_]d_\_YWdj heb[ _d j^[ h[]_ijhWdjwi _dj[hdWb Yedjheb el[h \_dWdY_Wb
h[fehj_d]-
?Wj[9 A[XhkWho 14+ 1/11
.i. AhWda C- =kha^Whjic[o[h
AhWda C- =kha^Whjic[o[h
N[d_eh Q_Y[ Kh[i_Z[dj WdZ >^_[\ A_dWdY_Wb J\\_Y[h
Exhibit No. 2
Page 204 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J .-),
DEHJ>M;IJ D7JKH7B =7I 9ECF7DO
>[hj_\_YWj[ KkhikWdj je N[Yj_ed 8/5
e\ NWhXWd[i s Jnb[o <Yj e\ 1//1
@WY^ e\ j^[ kdZ[hi_]d[Z+ ?<QD? C- <I?@MNJI+ >^_[\ @n[Ykj_l[ J\\_Y[h+ WdZ AM<IF C- =PMFC<MONH@T@M+ j^[ >^_[\ A_dWdY_Wb J\\_Y[h+ e\ IJMOCR@NO
I<OPM<G B<N >JHK<IT 'j^[ >ecfWdo(+ ?J@N C@M@=T >@MODAT j^Wj9
0- O^[ >ecfWdowi <ddkWb M[fehj ed Aehc 0/,F \eh j^[ o[Wh [dZ[Z ?[Y[cX[h 20+ 1/10 'j^[ M[fehj( \kbbo Yecfb_[i m_j^ j^[ h[gk_h[c[dji e\ i[Yj_ed 02'W( eh
04'Z( e\ j^[ N[Ykh_j_[i @nY^Wd][ <Yj e\ 0823+ Wi Wc[dZ[Z: WdZ
1- Dd\ehcWj_ed YedjW_d[Z _d j^[ M[fehj \W_hbo fh[i[dji+ _d Wbb cWj[h_Wb h[if[Yji+ j^[ \_dWdY_Wb YedZ_j_ed WdZ h[ikbji e\ ef[hWj_edi e\ j^[ >ecfWdo-
DI RDOI@NN RC@M@JA+ [WY^ e\ j^[ kdZ[hi_]d[Z ^Wi YWki[Z j^_i _dijhkc[dj je X[ [n[Ykj[Z j^_i jm[djo,\_\j^ ZWo e\ A[XhkWho 1/11-
.i. ?Wl_Z C- <dZ[hied
?Wl_Z C- <dZ[hied
Kh[i_Z[dj WdZ >^_[\ @n[Ykj_l[ J\\_Y[h
.i. AhWda C- =kha^Whjic[o[h
AhWda C- =kha^Whjic[o[h
N[d_eh Q_Y[ Kh[i_Z[dj WdZ >^_[\ A_dWdY_Wb J\\_Y[h
< i_]d[Z eh_]_dWb e\ j^_i mh_jj[d ijWj[c[dj h[gk_h[Z Xo N[Yj_ed 8/5 e\ j^[ NWhXWd[i,Jnb[o <Yj e\ 1//1 ^Wi X[[d fhel_Z[Z je Iehj^m[ij IWjkhWb BWi >ecfWdo
WdZ m_bb X[ h[jW_d[Z Xo Iehj^m[ij IWjkhWb BWi >ecfWdo WdZ \khd_i^[Z je j^[ N[Ykh_j_[i WdZ @nY^Wd][ >ecc_ii_ed eh _ji ijW\\ kfed h[gk[ij-
Exhibit No. 2
Page 205 of 206
J. Palfreyman, DI
Gem State Water Company
;N>?8?J .-)-
DEHJ>M;IJ D7JKH7B >EB:?D= 9ECF7DO
>[hj_\_YWj[ KkhikWdj je N[Yj_ed 8/5
e\ NWhXWd[i s Jnb[o <Yj e\ 1//1
@WY^ e\ j^[ kdZ[hi_]d[Z+ ?<QD? C- <I?@MNJI+ >^_[\ @n[Ykj_l[ J\\_Y[h+ WdZ AM<IF C- =PMFC<MONH@T@M+ j^[ >^_[\ A_dWdY_Wb J\\_Y[h+ e\ IJMOCR@NO
I<OPM<G CJG?DIB >JHK<IT 'j^[ >ecfWdo(+ ?J@N C@M@=T >@MODAT j^Wj9
0- O^[ >ecfWdowi <ddkWb M[fehj ed Aehc 0/,F \eh j^[ o[Wh [dZ[Z ?[Y[cX[h 20+ 1/10 'j^[ M[fehj( \kbbo Yecfb_[i m_j^ j^[ h[gk_h[c[dji e\ i[Yj_ed 02'W( eh
04'Z( e\ j^[ N[Ykh_j_[i @nY^Wd][ <Yj e\ 0823+ Wi Wc[dZ[Z: WdZ
1- Dd\ehcWj_ed YedjW_d[Z _d j^[ M[fehj \W_hbo fh[i[dji+ _d Wbb cWj[h_Wb h[if[Yji+ j^[ \_dWdY_Wb YedZ_j_ed WdZ h[ikbji e\ ef[hWj_edi e\ j^[ >ecfWdo-
DI RDOI@NN RC@M@JA+ [WY^ e\ j^[ kdZ[hi_]d[Z ^Wi YWki[Z j^_i _dijhkc[dj je X[ [n[Ykj[Z j^_i jm[djo,\_\j^ ZWo e\ A[XhkWho 1/11-
.i. ?Wl_Z C- <dZ[hied
?Wl_Z C- <dZ[hied
Kh[i_Z[dj WdZ >^_[\ @n[Ykj_l[ J\\_Y[h
.i. AhWda C- =kha^Whjic[o[h
AhWda C- =kha^Whjic[o[h
N[d_eh Q_Y[ Kh[i_Z[dj WdZ >^_[\ A_dWdY_Wb J\\_Y[h
< i_]d[Z eh_]_dWb e\ j^_i mh_jj[d ijWj[c[dj h[gk_h[Z Xo N[Yj_ed 8/5 e\ j^[ NWhXWd[i,Jnb[o <Yj e\ 1//1 ^Wi X[[d fhel_Z[Z je Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo
WdZ m_bb X[ h[jW_d[Z Xo Iehj^m[ij IWjkhWb CebZ_d] >ecfWdo WdZ \khd_i^[Z je j^[ N[Ykh_j_[i WdZ @nY^Wd][ >ecc_ii_ed eh _ji ijW\\ kfed h[gk[ij-
Exhibit No. 2
Page 206 of 206
J. Palfreyman, DI
Gem State Water Company
Preston N. Carter, ISB No. 8462
Rebecca M. Fitz, ISB No. 11874
Givens Pursley LLP
601 W. Bannock St.
Boise, Idaho 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
13988.14[16607887_1.docx]

Attorneys for Gem State Water Company, LLC

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF
GEM STATE WATER COMPANY, LLC FOR
APPROVAL OF ACQUISITION OF THE
ASSETS OF THE WATER BUSINESS OF
VALIANT IDAHO, LLC

Case No. __________

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CONFIDENTIAL EXHIBIT 3 TO ACCOMPANY THE
DIRECT TESTIMONY OF JUSTIN PALFREYMAN

EXHIBIT FILED UNDER SEPARATE COVER