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<DIV><B><FONT face=Tahoma size=4><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 14pt; FONT-FAMILY: Tahoma">AG WATER
SUPPLY:<o:p></o:p></SPAN></FONT></B></DIV>
<DIV class=Section1>
<P class=MsoNormal><st1:place w:st="on"><B><FONT face=Tahoma size=4><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 14pt; FONT-FAMILY: Tahoma">Central
Valley</SPAN></FONT></B></st1:place><B><FONT face=Tahoma size=4><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 14pt; FONT-FAMILY: Tahoma"> farms to get 45
percent of irrigation water allocations<o:p></o:p></SPAN></FONT></B></P>
<P class=MsoNormal><st1:place w:st="on"><B><FONT face=Tahoma size=4><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 14pt; FONT-FAMILY: Tahoma">Central
Valley</SPAN></FONT></B></st1:place><B><FONT face=Tahoma size=4><SPAN
style="FONT-WEIGHT: bold; FONT-SIZE: 14pt; FONT-FAMILY: Tahoma"> Business Times
– 2/28/08</SPAN></FONT></B><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">Farmers who purchase
their irrigation water from the Central Valley Project can expect 45 percent of
their allocations, according to the Bureau of Reclamation.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">But the Bureau says
allocations for those north of the San Joaquin-Sacramento Delta may be
<STRONG><U>subject to further review for <st1:place w:st="on">Sacramento
River</st1:place> water temperatures to protect salmon.
<o:p></o:p></U></STRONG></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">The bureau is also
implementing interim court-ordered measures this year to protect the delta
smelt, and water supply for the allocations south of the delta could change.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">Farmers south of the
delta face an even more uncertain season for irrigation water, according to a
Sacramento-based private water law attorney. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><U><STRONG>Additional
court decisions about endangered species protections for salmon and a new fish
that may be added to the list could further reduce water flows.</STRONG>
<o:p></o:p></U></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">“The Delta smelt interim
decision regarding additional restrictions to protect Delta smelt is ongoing.
There also has recently been a state decision on the longfin smelt and so we may
get additional restrictions on the State [Water] Project,” says Becky Sheehan, a
private water law attorney in <st1:City w:st="on"><st1:place
w:st="on">Sacramento</st1:place></st1:City>. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">On Feb. 7, the
California Fish and Game Commission voted to designate the longfin smelt as a
"candidate species," the first step toward formal listing of the tiny fish as an
endangered or threatened species under the California Endangered Species Act.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">Ms. Sheehan adds that
there is a decision expected soon in yet another case, this one involving
salmon, which could further restrict use of the Delta’s fresh water.
<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">It all adds up to make
predictions of water deliveries this year and next very uncertain, says Ms.
Sheehan. <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">“This year is
particularly uncertain because of all of the decisions that have been made and
decisions that will be made. But it’s not just this year, it’s going probably be
the next couple years,” she says. #<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><A
href="http://www.centralvalleybusinesstimes.com/stories/001/?ID=7976">http://www.centralvalleybusinesstimes.com/stories/001/?ID=7976</A><o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'">####<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face="Times New Roman" size=4><SPAN
style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman'"><o:p> </o:p></SPAN></FONT></P></DIV></BODY></HTML>