Maximum Yearly Extraction

Central Basin

In the Central Basin, the Maximum Yearly Extraction for any Party is “140% of the sum of (i) the party's Allowed Pumping Allocation (APA) and (ii) the party's leased water.” (Judgment Section I.B.(2); see also Judgment Section I.B.(2).) For purposes of calculating the Maximum Yearly Extraction, a Party’s total extraction right “shall include that Party’s Allowed Pumping Allocation and any contractual right through lease or other means to utilize the adjudicated rights of another party.” (Id.) Based on this language, a Party’s maximum extraction in one year should be calculated by adding its APA to its leased rights and then multiplying the sum of that by 140%. Therefore, the formula would be as follows: Maximum Yearly Extraction = (APA + Leased Rights) x 1.4.

Therefore, if a Party has an APA of 1,000 AF and leases an additional 400 AF, their maximum yearly extraction would calculated as follows: (1,000 + 400) x 1.4 = 1,960 AF.

Conversely, if 400 AF were leased out, the equation would be (1,000 – 400) * 1.4 = 840; however maximum yearly extraction cannot exceed your total rights (1,000 – 400 = 600 AF in this case), so the maximum yearly extraction would be 600 AF.

West Basin

In the West Basin, the Maximum Yearly Extraction “includes a Party's Total Adjudicated Production Right (to the extent not transferred by agreement or otherwise), and any right to extract Stored Water or Carryover as provided in this Amended Judgment. (Judgment Section IX.1.) “Any Party who has Carryover and/or Stored Water in the aggregate amount equal to or exceeding twenty percent (20%) of the Party's Total Adjudicated Production Right shall be allowed to extract… up to one-hundred and twenty percent (120%) of the Party's Total Adjudicated Production Right. (Id.)

Based on this language, a Party to the West Basin judgment may only extract more than their Total Adjudicated Production Right if they have Carryover and/or Stored Water to extract. Any Party that has Carryover and/or Stored Water “equal to or exceeding” 20% of their Total Adjudicated Production Right may extract up to 120% of their Total Adjudicated Production Right. “Total Adjudicated Production Right” is defined as “the sum of a Party's Adjudicated Rights and any, contractual right through lease or other agreement to extract and use the Adjudicated Right of another Party.” (Judgment Section II.37.)

Therefore, a Party’s Maximum Yearly Extraction should be calculated by adding its Total Adjudicated Production Right (Adjudicated Production Right + Leased Rights) to its Carryover and/or Stored Water right, provided that such Carryover and/or Stored Water right cannot exceed 20% of its Total Adjudicated Production Right.

Therefore, the formula would be as follows: Maximum Yearly Extraction = (Adjudicated Production Right + Leased Rights) + Carryover/Stored Water Rights, provided that Maximum Yearly Extraction cannot exceed (Adjudicated Production Right + Leased Rights) x 120%.

Similar to the Central Basin, if a Party to the West Basin leases out any of its Adjudicated Production Right, that amount should be subtracted from its Adjudicated Production Right for purposes of calculating Maximum Yearly Extraction.