Dear Shareholders

I hope everyone is enjoying the rain and snow we have been getting this season.

Let me give you the numbers for February.

Water usage

February

2016 = 2,993,000 gallons

2015 = 2,480,000 gallons

2014 = 2,974,000 gallons

2013 = 3,157,000 gallons

As you can see, the usage was higher this year than 2015 and 2014, and only slightly lower than 2013.

This is probably due to more people coming up to their cabins to take advantage of the snow that finally fell this year, and the perception that because of recent storms, the Drought is over.

In truth, we are going to need several more years of good precipitation to pull us out of the Drought.

Drought

We will remain in stage 2 of our Drought Action Plan, and ask for a 20% reduction in water

use, until we see what the Dept. of Water Resources mandates for 2016 water reduction.

Well 4

Our new well is in the final stage of construction. Some testing is being done on the equipment this week, and water samples will be taken next week. If everything goes right we should be pumping well 4 into our system by the end of March.

We expect 50 gallons per minute production out of this well, but we won’t know for sure until after we run the well for a few months.

That’s all for now.

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