1. Assured and Adequate Water Supply Rule Modification August 23, 2007 Importation Priority Process Summary

2. Groundwater Transportation Prohibited Between Basins (Title 45, Chapter 2, Articles 8 and 8.1) Several Specific Exemptions Created –Existing uses –Providers serving populations in both basins by July 1, 1993 –Yuma basin –Little Colorado basin –Parker basin

3. Groundwater Transportation into an AMA Prohibited Several Specific Exemptions Created –McMullen Valley (45-552) –Big Chino subbasin (45-555) –Harquahala INA (45-554) –Butler Valley (45-553) Each has specific limitations and qualifications

4. Two Types of Importation Water Created #1- 1991 Allocation Date Priority –Up to 6 Million AF for land owners owning land by 1/1/88 in McMullen Valley –Up to 14,000 AF/Yr for the City of Prescott for CAP replacement and facilitating Indian settlement #2- Application Date Priority –Applicant must own or lease qualifying land –Volume determined by number of acres (except Butler Valley)

5. Importation Initiation 1991 Allocation Priority –Notification of location of withdrawal –ADWR approval of intended volume of withdrawal –Wells drilled after September 21, 1991 well impact review (5-year draw-down) –CAP use requirement (Big Chino exempted) Application Date Priority –ADWR approval of withdrawal location (certify eligible lands) –Approval of allowable volume (usually per/acre) –Wells drilled after September 21, 1991 well impact review (5-year draw-down) –CAP use requirement (Big Chino exempted)

6. Use of Importation Water Once importation notification received or importation application approved, importation may begin No long term impact analysis is conducted (10-year draw-down for wells drilled after Sept. 21, 1991 wells, Big Chino 555.E exempted)

7. Impacts to Assured & Adequacy Determinations (applied only in the area of hydrologic impact) 1991 Allocation Priority –Pending and subsequent applications account for importation demand –Issued PAD’s & Analysis may have supply reduced –Certificates and Water Reports with no lots sold may be modified –Assured and adequate designations may have supply reduced Application Date Priority –Pending and subsequent applications account for importation demand –Issued PAD’s & Analysis may have supply reduced –Certificates & Water Reports with no lots sold may be modified –Assured and adequate designations may have supply reduced

8. Area of Hydrologic Impact Importation Pumping Area Adequacy determination not impacted Adequacy determination impacted Assured water supply determination AMA AMA boundary

9. Use of Importation Water for Assured Water Supplies Proposed importation must be notified or approved by the Department –CAP use requirements (non-Big Chino) –New well impact analysis (Big Chino 555.E exempted) –Withdrawal from appropriate lands –Volumetric limits –100-year depth limits (Harquahala only)

10. Use of Importation Water For Assured Water Supplies Must meet all of the Assured Water Supply Requirements –Legal availability –Adequate quality –Consistent with goal of the AMA –Consistent with plan of the AMA

11. Use of Importation Water For Assured Water Supplies Must meet all of the Assured Water Supply Requirements –Financial capability, proper funding or development agreements in place to complete needed importation infrastructure –Continuous availability, must demonstrate the importation project completed in a timely manner, and reasonable expectation of completion (easements, access agreements etc.)

12. Use of Importation Water For Assured Water Supplies Cont. Must meet all of the Assured Water Supply Requirements –Physical availability, importer must demonstrate that the 100-year DTW does not exceed 1,000 feet (Pinal 1,200). Importer must take into account all existing uses including all recorded lots, designations, analysis, water reports, and other importation demands. –New uses may impact the assured supply