Valley Water Management Company

“Form 990, Part VI, Line 6 - Explanation of Classes of Members or ShareholderMEMBERSHIP IS COMPRISED OF PERSONS OR ENTITIES ENGAGED ON OIL PRODUCING, STORING, DEHYDRATING, REFINING, TRANSPORTING OR TREATING OIL, GASOLINE, OR OTHER HYDROCARBON SUBSTANCES ON ANY LAND INCLUDED IN ANY DISTRICT OPERATED BY VALLEY WATER MANAGEMENT COMPANY.”

“Form 990, Part VI, Line 7a - How Members of Shareholders Elect Governing BodyGOVERNING BODY IS THE ELECTED BOARD OF DIRECTORS. DIRECTORS SERVE FOR ONE YEAR. ELECTION IS BY A BALLOT OF MEMBERS AT THE ANNUAL MEETING. MEMBERS ARE ENTITLED ONE VOTING RIGHT FOR EACH WELL UNIT OWNED OR OPERATED BY SUCH MEMBER AT THE TIME OF ANY PURPOSE FOR A MEMBER VOTE.”

“Form 990, Part VI, Line 7b - Decisions of Governing Body Approval by Members or ShareholdersMEMBERS ELECT THE DIRECTORS ANNUALLY.MEMBERS MUST APPROVE ANY CHANGES IN THE NUMBERS OF DIRECTORS.”

“Form 990, Part VI, Line 11b - Form 990 Review ProcessASSISTANT SECRETARY-TREASURER REVIEWS AND SIGNS TAX RETURN.”

“Form 990, Part VI, Line 12c - Explanation of Monitoring and Enforcement of ConflictsCOUNSEL FOR ORGANIZATION RECORD DISCLOSURE OF CONFLICTS AT ANNUAL ELECTION.”

“Form 990, Part VI, Line 15a - Compensation Review & Approval Process - CEO & Top ManagementOfficers and Directors serve without compensation, with the exception of the Manager/Assistant Secretary and the Finance Manager/Assistant Treasurer, whose salary is set by the Board of Directors.”

“Form 990, Part VI, Line 15b - Compensation Review & Approval Process - Officers & Key EmployeesSALARY COMMITTEE OF THE BOARD OF DIRECTORS REVIEWS SALARIES ANNUALLY. BOARD OF DIRECTORS SETS SALARIES AND BONUSES.”

“Form 990, Part VI, Line 19 - Other Organization Documents Publicly AvailableEACH MEMBER IS PROVIDED WITH A COPY OF THE ARTICLES OF INCORPORATION AND BY-LAWS UPON ADMISSION, AND WHENEVER A CHANGE OCURS. ANNUAL FINANCIAL STATEMENTS ARE MAILED TO EACH MEMBER. ALL GOVERNING DOCUMENTS, POLICIES, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THOSE PARTIES HAVING A LEGAL RIGHT TO OBTAIN SUCH DOCUMENTS.”

“Chemicals $370,256closure cost reimbursements $1,510,172communications $10,058desilting $11,568district property taxes $42,634districts safety meet and plans $55,957fees and permits $272,755field supplies and repairs $12,400ground and right of way leases $16,166injection fees $79,800miscellaneous $6,498monitoring $204,957office property tax $11,386pump repairs $66,910special projects $2,408,136weed control $75,717well cleanouts $16,988well misc $200,730well surveys $7,874 total other expenses $5,383,062”

“Form 990, Part I, Line 1 - Organization Mission or Significant ActivitiesForm 990, Part III, Line 1 - Organization MissionVALLEY WATER MANAGEMENT COMPANY IS A NON-PROFIT CORPORATION FORMED UNDER PROVISIONS OF TITLE XII OF PART IV OF DIVISION I OF THE CIVIL CODE OF THE STATE OF CALIFORNIA. ITS PURPOSE IS TO COLLECT AND MANAGE OIL FIELD PRODUCED WATER AS A RESULT OF THE PRODUCTION OF OIL FROM PROPERTIES IN THE VICINITY OF ITS FACILITIES, AND ASSIST ITS MEMBERS AND OTHERS IN COOPERATING AND CONTROLLING THEIR EFFORTS WITH ALL GOVERNMENT AUTHORITIES AND AGENCIES AUTHORIZED TO REGULATE AND CONTROL WATER DISCHARGES IN THE STATE OF CALIFORNIA.”