Information about the water (A) shares
This is a reminder that as a shareholder with class A share(s) you must have both class A shares and system shares (B, C, D, or E) to use the water.
Without both types of shares you are not entitled to use water through the systems. Shareholders of only class A shares have the option of renting their shares to another shareholder with system shares. The rental must be documented in writing and the company must have a copy. Alternatively, you can submit an application to Smithfield irrigation company to have the share(s) included in the water banking system.
The water banking system is available for shareholders that have water shares they do not intend to use for the year and allows the company to rent that water to other users in need of additional water. Requests to bank shares or rent shares must be submitted after the first of each year, will be addressed on a first come first served basis, and must be committed for the entire water year to be accepted. If the banked water is rented the company will credit the shareholder for an amount equal to the years class A water assessment.
It is important that the company demonstrate all of the water under our water right is put to beneficial use from year to year. Failure to do so could place that portion of the water right at risk of forfeiture. In that event the company may cancel a proportionate share of the stock of shareholders responsible for causing such forfeiture.