1. Water Rights: In the Odessa Groundwater Management Area By Peter G. Scott Preston|Gates|Ellis LLP

2. Doctrine of Prior Appropriation “First in time is first in right” Measure of right is volume put to beneficial use without waste Water right may be relinquished Preston|Gates|Ellis LLP

3. Water Codes Appropriation doctrine is codified in all Western States Water belongs to the public States may authorize the beneficial use of water Perfected use of water is a real property right Preston|Gates|Ellis LLP

4. Forms of Water Right Claims (vested or patented) Application, Permit, Certificate “Family Farm” right Reservoir (storage) rights Decreed or Adjudicated Inchoate vs “Paper rights” Preston|Gates|Ellis LLP

5. Water Right: Parameters Timing: Seniority and Season Quantity: Rate (Q i ) and Duty (Q a ) Use: Must be Beneficial without Waste Location: Point of Diversion/ Withdrawal, Place of Use Preston|Gates|Ellis LLP

6. Transfer or Change Application required to change or amend an existing water right Requires consideration of existing rights and the public interest Calculation of Annual Consumptive Quantity (ACQ). Preston|Gates|Ellis LLP

7. Adjudication Judicial quantification and prioritization of water rights Requires notice, preparation of claim, and proof of use Preston|Gates|Ellis LLP

8. Washington - Water Resource Management Act, RCW 90.42 Creates trust water and water banks Trust water may be obtained by conservation projects, donation, purchase or lease Yakima water bank established to manage trust waters for supply needs subject to express limitations Preston|Gates|Ellis LLP

9. Odessa Ground Water Subarea Established and Managed by Ecology under WAC 173-128A and 173-130A Regulation triggered by 30 feet in 3 years or 300 feet less that 1967 Duty on new permits limited to 2.5 acre- feet Acreage expansion program – based on withdrawal data and 3 years of beneficial use

10. HB 2860 Columbia River Bill Creates the Columbia River Water Supply Inventory Creates the Columbia River Basin Water Storage and Supply Account Requires Specific Allocation of “New” Water Creates the Columbia Mainstream Water Resources Information System Creates Authority for Voluntary Regional Agreements Preston|Gates|Ellis LLP

11. Peter G. Scott 601 West Riverside Ave. Ste. 1400 Spokane, WA 99201 Tel: (509) 624-2100 Fax: (509) 444-7867 pscott@prestongates.com Preston|Gates|Ellis LLP