MEMORANDUM

TO: Water Users

FROM: Phil Nixon

SUBJECT: 2008 Water Allocation

DATE: February 4, 2008

The Department of Water Resources (DWR) announced Friday that it will increase the 2008 SWP allocation from 25% to 35% of Contractor entitlement requests. Based on this, your 2008 allocation is increased from 25% to 35% of the entitlement described on Exhibit “A” of your Water Supply Contract.

DWR’s allocation is based on the 90% exceedence study modified to estimate the most restrictive actions from the federal court decision regarding delta smelt. DWR estimated that the allocation would be 50% without the federal court actions for delta smelt. DWR’s 50% exceedence studies (assumes average precipitation for the balance of the year) estimate the allocation could reach 60% with the most restrictive study and 75% with no delta smelt actions.

Last week DWR indicated the state has 770,000 acre-feet currently stored in San Luis Reservoir. The state’s share of San Luis is 1,062,000 acre-feet. DWR staff plans to update its projections this week regarding the potential fill of San Luis.

DWR should have updated allocation studies around the third week of February which will reflect the February 1^st snow pack. We will notify you as soon as we receive any new information.

If you have questions in this regard, please give me a call at (661) 633-9022.

Update08