Policies and Procedures

ABERDEEN - SPRINGFIELD CANAL COMPANY POLICIES & PROCEDURES
________________________________________________________________________________

RULES
REGULATIONS
and
POLICIES


ABERDEEN-SPRINGFIELD CANAL COMPANY

144 S. MAIN
PO BOX 857
ABERDEEN, IDAHO 83210

397-4192


ABERDEEN-SPRINGFIELD CANAL
COMPANY WATER MANAGEMENT POLICY

March 30, 1998


This Water Management Policy manual is a compilation of federal law, state law and policy instituted by the Board of Directors of Aberdeen-Springfield Canal Company, taken from the minutes of Board meetings. The Board of Directors of the Aberdeen-Springfield Canal Company (ASCC) reserves the right to amend or change this Water Management Policy manual at any time.


I. APPORTIONMENT AND DELIVERY (ASCC BYLAWS)

A. Water will be apportioned to each shareholder by the Watermaster as directed by the Board of Directors, based on the amount of water available.

B. Water from ASCC is allotted on a basis of 100 miners inches (entitlement is 4 acre feet) of water per share. This is the most water (storage and natural flow combined) that shareholders may receive without incurring an excess inches charge.

C. One share of water is generally considered adequate for irrigation of one acre of ground. Approval by the Board is necessary to place more than one share per acre and will be based on the topography of the parcel, or other extenuating circumstances.

D. Rotation of water use may be necessary to provide irrigation water to the lands of shareholders.

E. Delivery is measured in Idaho Miner Inches in 24 hour increments. Water will be measured at approximately the same time every day and the amount will be charged against the water user's allotment.


II. COMPANY RESPONSIBILITY FOR WATER, FACILITIES AND WATER MANAGEMENT

A. The Company's responsibility is to convey the water to the point of delivery for each parcel under the System. This entails all concrete work, trenching, gates and weirs to accurately deliver and measure water to each established point of delivery.

B. The responsibility of the Company for water delivered to a wateruser ends at the point of delivery measuring device. The water then becomes the responsibility of the waterusers using turnouts.

C. The Company will make every effort possible to insure a continuous supply of water to its waterusers. However, since most of the water flows through many miles of open ditches and is subject to blowing sand, silt, weeds and loss by gopher damage, power failures, etc., it is impossible for the Company or its agents to guarantee continuous uninterrupted water delivery.

D. The irrigation season will begin on or about April 1st and continue through about October 15 each year, unless otherwise stated by the Board. (Min. 06/05/97)

E. Water will only be delivered to lands within the Company boundaries that have water shares appurtenant.

F. All turnouts (headgates) will be locked and operated only by Company personnel. Company personnel will make all deliveries, changes and shut-offs. Each delivery will be measured and checked once daily. Deliveries, changes and shut-offs will be made once daily during the irrigation season. No adjustments will be made on water deliveries after a scheduled delivery has been made except in case of emergency. When it is determined that there is an emergency and the water is turned off:

1. If the emergency originated with the wateruser, the wateruser will be charged for that day as he would be for the turn-off of any water use period. The only difference being that the water will be turned off immediately instead of waiting until the next day.

2. If the emergency was the fault of the Company, there will be no charge on the day that the water is not available for use in its entirety.

G. The Company reserves the right to withhold or stop deliveries to waterusers who waste excessive amounts of their water allotment. (Idaho Code)

H. The Company reserves the right to shut down or withhold deliveries in order to perform maintenance necessary for the safety or efficient operation of the system.

I. The office will provide water use information to keep waterusers informed of their usage and facilitate their water use management.


III. LANDOWNERS' RESPONSIBILITY

A. Water Orders: Water requests shall be made not less than one day in advance of the day of delivery. Call-in time will be by 3:00 PM, except on Sundays which will be by 11:30 AM, of the day prior to the desired delivery time. Ditchriders will be available for water orders by phone from 12 noon to 2:30 PM daily, except Sunday which will be 11:00 through 11:30 AM. Requests for shut-off shall be in the same fashion. Orders submitted by telephone shall be deemed binding.

B. Leasing Property: When leasing property to someone else, it is the responsibility of the landowner to notify ASCC about:

1. Who will be operating the land.

2. Who will be responsible for payment of the assessments, excess water, etc. However, unpaid assessments and excess charges shall constitute a lien on the property and are ultimately the responsibility of the landowner. (IDAHO CODE)

3. Who will be authorized to order water.

C. Selling Property: If you sell your land, it is your responsibility to:

1. Notify the Company of the change in ownership. All unpaid assessments
constitute liens on the land and the land transferred is subject to that lien.

2. We request the prior landowners or their agents to notify the new landowners of their obligation to the Company and encourage them to let the Company know of the change to facilitate change of name on water certificate and records. Notice of the assessments, etc., stay in the name of the prior
owners until the Company receives the old stock certificate and a copy of a
legal document, such as a Deed or Sales Contract, which shows transfer of
ownership. It would be to the advantage of the prior owners and the new
owners to deliver the needed documents into the Company office as soon as
possible after the change has been enacted. Your voluntary submission of
these documents at the time the change takes place will be a big help in
preventing problems and misunderstandings between the Company and the
new landowner.

D. Reclamation Reform Act (RRA): Landholders with 240 or more acres within a
Reclamation Project or Projects (either owned or leased, west-wide) must in most cases comply with the Reclamation Reform Act of 1982.

1. Each year the Bureau of Reclamation through the RRA and the rules and regulations for implementation of that law, require landholders who receive water from a Federal Reclamation project on owned or leased land anywhere in the Western United States, to report on their landholdings. As a wateruser, tenant or landlord of the Company, you will be required to comply with these regulations. Failure to do so may lead to fines and/or legal action for which you will be responsible. Failure to file your yearly form will also result in your water being shut off when storage water is delivered from Palisades Reservoir.

2. Your tenant must also have a form on file. It is your responsibility to notify your tenant of the necessity to file.

E. Permanent Transfer of Water: Water may be permanently transferred to other lands provided:
1. Assessments are current.
2. Board permission is granted.
3. This transfer will not cause extra expense to other shareholders of the Company.
4. This transfer does not provide more than 1 share per acre (unless special permission is granted by Board)
5. Transfer Deed is signed and filed with County Recorder.

F. Temporary Transfer of Water: Water may be temporarily (1 year at a time) transferred provided:
1. Assessments are current on both parcels.
2. This transfer will not cause the Company extra expense to deliver the water.
3. Owner of water notifies office in writing of his permission to transfer water.

G. Damage and Repairs
1. Any washout or other water damage that takes place after the water passes the measuring device is the water user's responsibility.
2. All damage sites will be inspected by a committee of Board members as soon as possible after damage has taken place (Minutes 5/4/94)
3. Damage claims which cannot be visually inspected by the Company will not be paid. (Minutes 5/4/90)
4. Repair of damage caused by interrupted water delivery will be the responsibility of the water user, not the Company.
5. All maintenance or repairs to ditches below the measuring devices are the responsibility of the landowners.



H. Water Delivery and Conservation Policy

Any new hook-ups or change from November 15, 1995 forward will be continuous flow. Any points of diversion through Aberdeen-Springfield Canal Company seepage recovery permits will be considered continuous flow. Water will be measured at each headgate, and maximum flow figured on a 24-hour basis. Canal Company manager will assist shareholders in devising a water conservation plan such as building ponds, improving irrigation systems, or other water conservation methods." (Min. 11/15/95)


IV. WATER ASSESSMENTS

A. Operation and Maintenance

1. The O & M Assessments are used to operate and maintain the Canal Company system.
2. This assessment is set in October prior to the water season.
3. The billing is sent out on or about November 20th, for the following year. Interest rates are determined by the State Legislature. Payment is due December 1st and if not paid when due, draws interest at the rate of 12% per annum from date due provided:

a. That if payment is made on or before January 31st, no interest shall be charged.
b. That if one-half of said assessment is paid on or before January 31st, and the remaining one-half is paid on or before April 1st, no interest shall be charged.
c. That if the first-half of the assessment is not paid on or before January 31st, interest at the rate of 12% per annum from December 1st shall be charged on the first-half of said assessment. However, if the first-half installment, together with interest at 12% per annum from December 1st and the remaining second-half of said assessment is paid on or before April 1st, no interest shall be charged on the second-half installment.
d. That if no payment is made on second-half of said assessment on or before April 1st, interest at 12% per annum from December 1st will be charged on second-half assessment.


V. EXCESS WATER CHARGES

A. When a wateruser uses more than the allotted 4 acre feet (100 miners inches) of water per share, there is an additional charge for the excess water used. The cost of excess water is set each year by the Board of Directors.

B. At the end of the water season, the Excess Water charges are computed. The charges are added to the next year's assessment notice. If allowed to become delinquent, interest is charged each month until paid in full. Irrigation water will not be delivered if excess water charges are not paid.

C. A water user may obtain water from another shareholder in the system on an annual basis in order to alleviate these excess charges, but this is must be done prior to October 30th of that year. This transfer must be in writing and signed by the owner of the water.

VI. DELINQUENCIES

A. Assessments and other charges which are allowed to remain delinquent will cause a lien to be filed against the appurtenant land. This lien is recorded with the appropriate County in the last week of November of the year they become delinquent. If the assessment is allowed to remain delinquent for two (2) years, legal process to collect past due amounts and/or foreclosure on property will proceed. (Idaho Code)

B. Assessments charged by ASCC are considered to be a preferred lien against the land. The lien is perpetual and responsibility transfers with ownership. (Idaho Code)

C. The Company will not accept payments on overdue assessments. (Min. 03/07/90)

D. Discounts will not be given on past due accounts. (Min. 12/09/96)

E. No water will be delivered until all Assessments and other charges owed by the landowner are paid in full. (Min. 03/07/90)

F. There will be no transfer of stock while unpaid assessments exist, this includes changing the name to that of a new owner of the ground. (Min. 06/01/25)


VII. OWNER OF RECORD/WATER STOCK

A. The name(s) found on the Deed to your property will be used on your assessment accounts unless a name change form, new Deed, or other legal document is received showing cause for it to be listed differently.

B. Water Stock Certificates will be issued based on proof of ownership as provided by county recorded ownership documents.

C. The number of votes that a shareholder is entitled to at stockholder meetings will be based directly on the number shares which are in his/her name or to which he/she is legally bound (partnership, corp., etc.)

D. A shareholder may allow another person to vote his shares by means of a written proxy submitted to the office. Proxies must be submitted to the office in the manner described in the Company Bylaws. (Idaho Code)


VIII. UNLAWFUL PRACTICES

A. It is unlawful for any person to maliciously or wantonly cut, breakdown, injure, destroy or remove any ditch, canal, trench, pipe, dam, reservoir, bridge, road or other property owned by the Company. Any person or persons who shall cause either accidental or malicious damage to any facility or property belonging to or being operated by the Company shall be held responsible and shall pay for any and all needed repairs or replacements of such facility or property. (Idaho Code)

B. It is unlawful to draw off or use any portion of the water flowing through or contained in any ditch, canal, trench, pipe, dam or reservoir owned or operated by the Company without proper authorization. (Idaho Code)

C. It is unlawful to dump sewage, animal matter, rubbish, garbage, or other refuse, including all containers, both empty or full, and specifically those that hold or did hold chemical or other material that will or could contaminate water, into the Company distribution system.

D. It is a misdemeanor if any person shall, without authority of the owner or managing agent, raise, lower or otherwise disturb any gate or other appurtenance thereof used for the control or measurement of water. ( Idaho Code, 18-4301)

E. The Water Master is given latitude to resolve problems involving water users who lock or unlock headgates. (Minutes 04/02/96)

F. It is a misdemeanor for any person or persons to cut, break, injure, destroy, enlarge, change or alter any headgate, which is the property of or appurtenant to the property of an irrigation company. (Idaho Code, 18-4306, 18-4307)

G. Any damage to the ditches or rights-of-way of the Company must be repaired or removed within five (5) days by the person responsible for the damage or he is guilty of a misdemeanor. This section includes livestock damage and fences of any kind that obstruct rights-of-way necessary to maintenance. Controlled pasturing of rights-of-way will be allowed and encouraged. (Idaho Code , 40-925)

H. In the event it comes to the attention of the Canal Company that any person is violating any of the above provisions of the Criminal Code of the State of Idaho, criminal prosecution may be commenced against that person. Such persons will also be subject to a civil action by the Company to enjoin them for their unlawful activity and to recover punitive damages from the wrongdoers.


IX. RIGHT-OF WAYS

A. The Company has exercised its privilege of right-of-way in the location and construction of the Company canals, laterals, stilling pools, pump and well locations, control works, etc. It has reserved in perpetuity for itself, sufficient right-of-ways to adequately and satisfactorily operate, maintain, and repair these works. (Carey Act/Idaho Code)

1. Right of ways are defined as 50 feet from the toe of the bank of the main canals and 25 feet from the toe of the bank on laterals, or more as legitimately needed for operation and maintenance of the system. (Idaho Code)

B. All landowners, water users, and the general public shall refrain from encroachment in any manner upon these Right-of-ways. These right-of-ways are not to be used as public thoroughfares. The general public does not have the right of free access or use of the laterals, canals or other service roads of the Company.

C. No person shall be allowed to water the canal & lateral banks or the roads of the Company.

D. Private individuals wanting to use Canal Company facility or maintenance roads for public access to and from a residence must sign a special agreement with approval of the Company.


X. OPERATION POLICY ON RIGHT-OF WAYS

A. The construction or placement of roads, pipelines, transmission lines, telephone lines, bridges, flumes, fences, pumps, or any other structures on project right-of-ways will be allowed on terms and conditions that are deemed to be adequate to protect the interest of the Company and the project for which the particular lands are being administered and to be compatible with the purposes for which the right-of-way was acquired. Construction may not be undertaken until after such time as the Company has issued license for the erection and maintenance of the structure and appropriate agreement forms have been signed by both parties.

B. Controlled pasturing of the project right-of-way may be allowed at owners' risk.

C. Facilities to apply chemicals, placed on Company right-of-ways requires a special permit with approval from the Company. Liability for chemicals placed into irrigation water either intentionally or accidentally remains with the landowner and his agent. These facilities must comply with all laws and regulations for this type of chemical application including back-flow protection device which preclude chemicals flowing back into the canal system.

D. Moving headgates or other control structures for the convenience of the farmer will be done only on an individual basis according to Company specifications, at the convenience of the Company. The Company will charge the costs of the move to the landowner.

E. The Company is not liable for damages to shareholders' property on the Company right of way. (Min. 03/07/96)

F. A wateruser may not install anything on (such as a rotating weed screen) or alter a headgate, without approval from the Board of Directors. A weed screen shall not interfere with Company water operation. If the Company needs to have it removed, the wateruser must do so within 24 hours of notification. If something is attached without approval, the Company employees will remove it from the headgate. (Min. 03/22/88)

G. Soil on Canal Company easements should not be removed by anyone unless they receive permission from the Board to do so. This permission can only be given in conjunction with any involved landowner(s). (Min. 01/05/90)


XI. SYSTEM ALTERATIONS

A. A landowner desiring to straighten or otherwise alter any canal or lateral owned by the Company must first obtain the written permission of the Board of Directors. Permission shall be contingent upon appropriate agreements signed by both parties and upon delivery remaining unaffected to other water users located on the lateral. The permission granted by the Company and acknowledgment of the above terms by the water user, must be in writing, must describe the property upon which the lateral or drain is located and must include minimum construction requirements and size requirements, and must be recorded with the County in which the property is located. (Idaho Code)

B. Relocation of any canal or lateral will require the payment of a minimum cash bond in the amount of $25,000.00, or more depending upon the scope of the project and determined by the Board of Directors. Such bond to be refunded upon completion and acceptance of the project by the Board of Directors. In the event the project is not completed in time for the irrigation season, the bond will be used by the Company to complete the project.

C. Minimum construction requirements for any relocation or alteration are as follows:

1. Completed projects shall have a minimum 15' bank width at the top on both sides of the canal or lateral, or more as determined by the Board of Directors depending upon the scope of the project.

2. Inside canal or lateral dimensions will be no smaller than the existing canal or lateral being relocated or altered.

3. Inside banks will have a minimum slope of 2:1 and outside banks will have a minimum slope of 2.5:1.

4. Banks must be seeded with an appropriate grass mixture (as specified by the Company).

D. Landowners will accept full liability for failure of banks due to construction for a period of three years following completion.

E. If the relocation or alteration includes piping, the landowner will accept full maintenance liability in perpetuity. Such maintenance may be accomplished by the Company and the landowner will be charged accordingly.

F. If permission has been requested by the landowner, and granted by the Board of Directors in the form of an agreement and signed by both parties, to receive water at a new point of diversion, the landowner will have to abandon the right to use the Company facilities at the original point of delivery. (Min. 06/05/12)

XII. EQUIPMENT RENTAL/PRIVATE PROJECTS

A. The Company may assist the landowner or wateruser with personal maintenance or repair projects. These projects will be undertaken on a first come basis and will be done only as Company time schedule allows. Rates for work done will be the established cost of equipment rental plus wages of Company personnel involved. The Company equipment will not be leased out to non-stockholders. (Min. 10/26/56)

B. The Manager has the authority to rent out the compressor, with a Company operator, to any wateruser who will rent it for use on the tract for small farm jobs. (Min. 03/06/56)

C. We are not insured as a licensed carrier and will not transport any equipment that is not owned by the Canal Company. (Min. 09/09/96)


XIII. MISCELLANEOUS INFORMATION

A. The Company will not participate in building surface drains. (Min. 03/07/67)

B. The drain cleaning policy will be that every drain cleaning project will be considered on a case by case basis. Persons wanting the drain cleaned will be responsible for the administration and collection of payments due. The Canal Company will take and receipt the money and on certain drains, the Company will share in the costs on a 50/50 basis.
(Min. 09/09/97)

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