The Company annually assess any potential impairment of the
Company's water assets.  The Company's water assets are
long lived assets which will deliver water to customers for
periods in excess of 100 years.  The Company's impairment
analysis for its Rangeview water supply incorporates a
reasonable development horizon for the Company's 24,000
acre Service Area. The Service Area is capable of
supporting between 60,000 and 100,000 single family
equivalent homes and will take between 30 and 40 years to
fully develop.  The Service Area is located at the edge of
the Denver metropolitan area and portions of the property
have already developed.

Key assumptions used in the impairment analysis are as
follows: The Company is to receive revenues from two income
sources:  1) a one time access fee known as tap fees; and
2) an annual fee based on the amount of water delivered to
customers.  The Company's established fees are the average
of the three surrounding municipal water providers
currently $10,500 per tap and $2.25 per 1,000 gallons of
water delivered.  The Company's engineers have estimated
the cost to construct the infrastructure needed to deliver
water to customers within its Service Area, and operating
and maintenance costs of the water system.  Based upon
these key assumptions the Company's cash flow projections
 exceed the acquisition costs of the asset.

The Company's impairment analysis for its Paradise water
supply incorporates the development and sale of 70,000 acre
feet of its Colorado River water supply over a 30 year
period.  The Company has two principal markets for the
Paradise asset: one are users within the Denver
metropolitan area; and second are users in the downstream
states of Nevada and California.  Infrastructure currently
exists to transport Colorado River water to the Denver
metropolitan area.  The Company would seek to deliver it's
Paradise water to reservoirs which it owns as part of the
Rangeview water supply and deliver Paradise water through
its Rangeview water system.  The key assumption used in the
impairment analysis is the sale of water to users in the
Denver market, based on the same terms as those used for
the Rangeview asset, receiving revenues from tap fees, and
annual water usage fees from delivered water.

The Company estimates the cost to deliver the water to the
Denver metropolitan area through an exchange of water for
use of existing infrastructure may consume up to 50% of the
Paradise water supply, thus allowing for the delivery of
approximately 35,000 acre feet of Paradise water to the
Rangeview water system.  Based upon these key assumptions
the Company's cash flow projections exceed the acquisition
costs of the asset.

Alternatively, the downstream states' (i.e. Nevada and
California) use of the Paradise asset would use the
Colorado River as the delivery mechanism to deliver the
water.  Use of the Colorado River as the delivery mechanism
to our farthest deliverable point in southern California
could result in water losses (primarily due to evaporation)
of up to 50%. The key assumption used in the impairment
analysis is the sale of water to users in the downstream
states based on comparable wholesale water supply
agreements generating approximately $400 per acre foot per
year.  Based upon these assumptions for delivery of water
to users in the downstream states, the Company's cash flow
projections exceed the acquisition costs of the asset.