Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Investments In Water, Water Systems, Land And Improvements

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Note 3 - Investments In Water, Water Systems, Land And Improvements
 9 Months Ended
May 31, 2012
Cost-method Investments, Description [Text Block]
NOTE 3 – INVESTMENTS IN WATER, WATER SYSTEMS, LAND AND IMPROVEMENTS

The Company’s water rights and current water and wastewater service agreements are more fully described in Note 4 to the 2011 Annual Report.  There have been no significant changes to the Company’s water rights or water and wastewater service agreements during the three and nine months ended May 31, 2012.

The Company’s water, water systems, land and improvements consist of the following costs and accumulated depreciation and depletion at May 31, 2012 and August 31, 2011:

   
May 31, 2012
   
August 31, 2011
 
   
Costs
   
Accumulated Depreciation and Depletion
   
Costs
   
Accumulated Depreciation and Depletion
 
Arkansas River Valley assets
  $ 81,318,800     $ (1,273,000 )   $ 81,318,800     $ (1,144,100 )
Rangeview water supply
    14,321,500       (6,800 )     14,299,700       (6,600 )
Paradise water supply
    5,544,000       –       5,540,200       –  
Sky Ranch water rights and other costs
    3,915,200       (43,500 )     3,915,200       (21,800 )
Fairgrounds water and water system
    2,899,900       (512,500 )     2,899,900       (446,400 )
Rangeview water system
    167,700       (66,300 )     167,700       (62,400 )
Water supply – other
    77,300       (23,200 )     25,600       (13,700 )
Totals
    108,244,400       (1,925,300 )     108,167,100       (1,695,000 )
Net investments in water and water systems
  $ 106,319,100             $ 106,472,100          
                                 
Sky Ranch land and improvements
  $ 3,739,000       -     $ 3,743,300       –  
Total net investments in water, water systems, land and improvements
  $ 110,058,100             $ 110,215,400          

Capitalized terms in this section not defined herein are defined in Note 4 to the 2011 Annual Report.

Depletion and Depreciation.  The Company recorded $100 of depletion charges during each of the three month periods ended May 31, 2012 and 2011, respectively.  The Company recorded $300 of depletion charges during each of the nine month periods ended May 31, 2012 and 2011, respectively.  This related entirely to the Rangeview Water Supply. No depletion is taken against the Arkansas River water, Paradise Water Supply or Sky Ranch Water Supply because the water located at these locations are not yet being utilized for their intended purpose as of May 31, 2012.

The Company recorded $77,600 and $75,000 of depreciation expense during the three months ended May 31, 2012 and 2011, respectively.  The Company recorded $230,100 and $225,300 of depreciation expense during the nine months ended May 31, 2012 and 2011, respectively.