Dear HCIC Shareholder:

In order to most effectively use our water supplies during the early irrigation season, it is important that everyone understands how HCIC’s direct flow water rights work and how this water needs to be utilized. The purpose of this letter is to communicate key information to shareholders related to the effective use of HCIC’s direct flow water entitlement.

• HCIC holds the most senior rights to the direct flow in Huntington Creek – which gives us the right to use up to the first 352 cfs of water in Huntington Creek beginning March 1st and going through October 31st (irrigation season).

• For the purpose of this letter, “direct flow water” means the water naturally flowing down Huntington Creek that is not being stored in the upper reservoirs.

• In most years, direct flow water makes up the majority of the total water supply available to HCIC for irrigation season (more than water that is stored in the upper reservoirs)

• Each shareholder is entitled to their share of the direct flow water – when it is available in the creek.

• HCIC is very limited on its ability to store its direct flow water (other than minimal temporary storage in its regulating ponds).

o It is not possible to store direct flow water and use it at a later date.

o Direct flow water that is not used by HCIC shareholders at the time it is available in the creek will flow past HCIC’s diversions and cannot be recovered for later use.

 Unused direct flow water flows downstream to other water users – for other water uses.

 Simply put – direct flow water available today cannot be used tomorrow, next week or any other time later in the irrigation season.

Because of these basic key points, it is critical that in order to most effectively use HCIC’s direct flow water in the spring season, it needs to be used each day that it is available in the creek. There is some misconception from many shareholders that they can “hold” their direct flow water allocated to them for use whenever they choose. We hope there is enough flexibility in the overall system and management of water that not every shareholder needs to be using their share of direct flow water every single day. However, if most of the shareholders choose to not use any of their allocated water in the early spring, there may not be enough direct flow water available to meet everyone’s allocation later on in the irrigation season.

The board asks its shareholders to be mindful of the information in this letter and where possible, plan use of your water accordingly to try to help promote the most effective and efficient use of HCIC water supplies.

Respectfully

HCIC Board of Directors

JANUARY 15, 2026 @ 7 PM

FEBUARY 21, 2026 @ 7 PM (SATURDAY ANNUAL MEETING & REGULAR BOARD MEETING)

MARCH 19, 2026 @ 7:30 PM

APRIL 16, 2026 @ 7:30 PM

MAY 21, 2026 @ 7:30 PM

JUNE 18, 2026 @ 7:30 PM

JULY 16, 2026 @ 7:30 PM

AUGUST 20, 2026 @ 7:30 PM

SEPTEMBER 17, 2026 @ 7:30 PM

OCTOBER 15, 2026 @ 7:30 PM

NOVEMBER 19, 2026 @ 7 PM

DECEMBER 17, 2026 @ 7 PM