General Manager’s Report

Dear Shareholders,

I am filling in for our General Manager Dave Hicks this week and am happy to do his Bubbler Report in his absence. All
the staff here at Blue Lake Springs Mutual Water Co. wishes all of you a Happy New Year and look forward to 2018.

Wells Report: Our well levels are holding strong at 156 feet above the pump intake for well #3, and 769 feet above
the pump intake for well #4. These two wells are Blue Lake Spring’s main source of ground water. These wells show
no direct effect from the dry winter we’ve had so far. Our well engineers, Luhdorff and Scalmanini, as well as Blue
Lake Springs staff are monitoring the wells performance. The wells are holding strong and continue to recover nicely.

Usage: Usage for December was slightly lower this month than last, about 5%. This reduction is great considering
this time last year Blue Lake Springs was under Stage 2 drought restrictions.

Here are the numbers.

December Usage by year:

• 2013 4,097,000 gallons
• 2014 3,579,000 gallons
• 2015 4,057,000 gallons
• 2016 3,609,000 gallons
• 2017 3,497,000 gallons

Total water usage for 2017 was 47,000,000 gallons which is slightly higher than 2016, but is still very good compared
to years past.

Winterize: I know we say it all the time…. but please don’t forget to Winterize your cabin if you are going away
for any length of time. A useful tip from staff is to take the extra time to see the house drain completely stop flowing
before leaving. This will ensure you have winterized properly.

With 2017 behind us, Blue Lake Springs Mutual Water Company looks forward to 2018.

Sincerely,
Bill
William (Bill) Heinle
Water master
Blue Lake Springs Mutual Water Co.
P.O.Box 6015, Arnold, CA 95223
Ph: 209‐795‐7025