”Shares” in this Cooperative are a little different than most irrigation companies. A
”Water Addendum” evidences the member shareholder`s interest as if it were a share
certificate. The quantity of water associated with the beneficial uses identified in the
Water Addendum governs the share amount, or in other words, represents the number of
”shares” or quantity of water the shareholder is entitled to.



Member Shareholders must provide their Water Addendum (which also contains their
proposed beneficial uses), their mailing address, and information necessary to identify
the location they intend to drill (preferably a map highlighting their lot number). 



The corporate structure and specifically the ”Water Addendum” resolution adopted by the
board in January, 2022 gives shareholders a ”right to use Cooperative water rights in an
amount proportionate to the beneficial uses appurtenant to each Shareholder lot.” Also,
”The amount of water each member is entitled to under their share of Common Stock is
proportional to the various beneficial uses appurtenant to the Shareholder Lot. The
Cooperative shall allocate each share of Common Stock water based on the following
metrics set by the Utah State Engineer: 1 equivalent domestic unit (”EDU”) = .45 AF; one
acre of irrigation (alfalfa standard) = 4 AF; one equivalent livestock unit (”ELU”) =
.028 AF or proportional equivalent (noted below); and water needed for ”other”
agricultural purposes or cooperative purposes on the Shareholder Lot, such as workshops
and other related outbuildings. The specific amount of water allocated to Member`s
Shareholder Lot is calculated and stated on the last page of this Addendum.”



Hence, the quantity of water allocated to a Member`s Shareholder Lot is as given on the
Water Addendum, and that document will be taken to be the evidence of stock ownership
that entitles the person to a proportionate share of water in a water company. 



The total quantity of water under perfected water rights owned by the Utah OSR Land
Cooperative at present is 2860.57 acre-feet for the irrigation of 713.63 acres,
livestock watering of 200 ELU, and one (1) EDU. If the Utah OSR Land Cooperative
acquires or disposes of water rights, the quantity may change; but it probably would not
affect the member shareholder`s Water Addendum or the quantity of water and uses
identified in the addendum.



Water right 16-921 is also owned by the Utah OSR Land Cooperative. It is not, however,
used as the basis for ”shareholder change applications” at this time because it is
already the basis for a change application (a46151a) pertaining to fourteen (14) lots
(Lots 4, 26, 31, 47, 53, 54, 55, 69, 70, 72, 106, 120, 122, and 211) which was filed and
processed prior to this ”share company” method of administering the rights and changes
for the Utah OSR Land Cooperative. The decision to exclude Water Right 16-921 and reduce
the total quantity of 2860.57 acre-feet by the amount approved under 16-921 (a46151a),
90.692 acre-feet, leaving 2769.878 acre-feet, was made upon deliberation with the
attorney that facilitated this structure, Emily Lewis, with special consideration being
given to the conditions of approval of that change application. Should the Cooperative
decide to withdraw Change Application a46151a and have the fourteen (14) shareholders of
those lots proceed under this other share statement and share change method, it would
necessitate that water right being added back in as a base right in this ”water company
page.”