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reservoir, that you have a lot of flexibility provided to you in a sale of that sort because of the storage <br />that's available. Take Lamar Power, for example. They have an 8 mgd life on their current plant. If they <br />needed 8 mgd of water to meet that peak demand, it's available for them. But on an annual average <br />basis, they use 3.36 mgd of water. They don't need 8 mgd times 24/7. And yet that's what's tied up in that <br />contract. And so I think that you'll find that there's a lot of flexibility in terms of being able to meet those <br />peak demands and still have access to that water on a long -term average basis, because you don't <br />necessarily have to deliver that water to Irving to meet that peak demand. Their system provides for <br />meeting peak demand but you need to deliver that water to them over an annual average basis, because <br />once it moves from Pat Mayse Lake into Cooper Lake, they've got it stored and they move it into the <br />metroplex and the rest of their system to meet their peak demand. It's an engineering question, not a <br />legal question, but clearly from a contracting standpoint, you could seek to identify a base amount of <br />water that you could supply Irving based on your pure surplus water. You could supplement that base <br />amount with the amount that is reasonably available to you between the contractual obligations and the <br />needs of those customers. And then you could always reserve the right to bring that water back as <br />needed. But I don't even any of that implicates the peak demand issue, because you have the <br />infrastructure capable of meeting those peak demands. <br />Either you have it or you could design for it. <br />Question: you'd also have to provide that when (inaudible), water would not be available to the City of <br />Irving? <br />JM: You certainly could do that. You may choose to do something like that. <br />Question: to eliminate the possibility of having to ration water because of the lake level? <br />JM: You could in essence design in a contract a ration scheme for them which included ultimately a <br />cutoff of delivery during certain circumstances, well in advance of any type of local rationing. So, again, <br />there's a lot of technical issues that would have to be reduced conceptionally to what you want to do, and <br />then abstract it into the contract, but clearly you could do those kind of things. <br />Question: Can you sell water to someone and keep them from selling it to someone else? <br />JM: If you're going to sell somebody your water, you can limit their use of that water however you see <br />fit. Most of the contracts now with industrial users, they can use it for industrial purposes, and that's it. <br />They can't go resell it to somebody else, or they can't build a different type plant and use it for that <br />purpose. You can choose to do that. You can choose if you want to, to put provisions in there that if he <br />resells the water, if he gets some premium on it you get some portion of that premium. These are clearly <br />negotiated transactions, and I can't tell you what a willing buyer and a willing seller would agree to, but <br />you can offer anything that you want to in regard to terms, conditions and limitations on their use of the <br />water. <br />OK, No. 12 -- the Paris contract with the Corps of Engineers. The contract you have with the Corps <br />identifies your ownership as 100 percent of the water between 415 msl and 451 msl. This is estimated to <br />contain 109,600 acre feet of storage after 100 years of sedimentation. Not as of the time of the contract, <br />but after 100 years of sedimentation. That number is derived after looking at 100 years of sedimentation. <br />So I would submit to you that a question to be raised about this, there's more capacity in this reservoir, <br />more yield in this reservoir, over the next 50 years until we get to 100 years after its creation. And so you <br />have both the sedimentation pool to look at, as well as the flood pool. <br />With regard to time frames and difficulties, I'll be real honest with you. I've not actually ever participated <br />in one of these reallocation studies directly myself, so I don't know what the timelines are. I know that the <br />Corps staff in Tulsa has met with your staff, and I know the Corps staff is very experienced with these <br />